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Real Estate & Construction News Roundup (8/6/24) – Construction Tech Deals Surge, Senators Reintroduce Housing Bill, and Nonresidential Spending Drops

September 16, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, cybersecurity attacks target contractors, U.S. banks report weaker profits, additional commercial real estate is distressed, and more!

Spending dropped in almost half of nonresidential subcategories in June, with the decrease stemming from higher interest rates, tighter credit conditions and a softening economy. (Sebastian Obando, Construction Dive)
Despite the decline in investment dollars for construction technology, the number of deals surged by 18% year-over-year, indicating sustained interest and activity in the sector. (Sebastian Obando, Construction Dive)
As cybersecurity attacks on U.S.-based businesses ramp up, general contractors are not immune. (Jen A. Miller, Construction Dive)

Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

ASCE Statement on Hurricane Milton and Environmental Threats

October 15, 2024 — Feniosky Peña-Mora, P.E., President - American Society of Civil Engineers
WASHINGTON, DC. – On the heels of the tragic damage caused by Hurricane Helene throughout the Southeast, Floridians were struck by another major hurricane, Milton, less than two weeks later. Our hearts go out to those impacted again by this storm through property damage, lack of water access, power outages, or worse, loss of life, all before getting a chance to recover from Helene. Civil engineers are dedicated to protecting the public with projects that can lessen the impacts of these storms, and we are eager to help communities rebuild as quickly as possible following events like Milton and Helene. Although we do not yet know the full scope of destruction caused by Hurricane Milton, severe weather, including compound flooding events, are increasing regularly and pose a great risk to our safety and economic vitality. While so many eyes are fixated on hurricanes impacting the Southeast, wildfires are burning across several western states, including the Elk Fire in Wyoming, the largest wildfire the Bighorn National Forest has experienced in more than a century, now spanning over 75,000 acres as the region is experiencing unusually hot and dry weather and strong winds that are helping this fire to spread rapidly. The climate impacts we are accustomed to – wildfires in the West and hurricanes in the Southeast – are getting stronger, and now environmental challenges are occurring in areas we wouldn't suspect, such as Hurricane Helene striking mountain communities in Western North Carolina that have been labeled as "climate safe-havens," and Texas dealing with annual winter storms. ASCE is a leader in codes and standards development and has created an easy-to-understand toolkit for legislators and the public to learn the benefits of these up-to-date standards and determine when and how to adopt them, making our built environment more resilient to natural catastrophes. ASCE's flagship standard, ASCE/SEI 7-22, recently underwent the most significant update to its flooding chapter to ensure structures following this standard are prepared for 500-year flood events.

Rejection’s a Bear- Particularly in Construction

December 23, 2024 — Christopher G. Hill - Construction Law Musings
As I read through this week’s cases published in Virginia Lawyers Weekly, I came across a case posing an interesting question. The question is, “If your bid is rejected along with everyone else’s, can you complain?” The short answer set out by the Rockingham County, Virginia Circuit Court is “No.” In the case of General Excavation v. City of Harrisonburg the Court looked at the Virginia Public Procurement Act’s bid protest provisions in Va. Code 2.2-4360 and 2.2-4364(C) in the context of General Excavation’s protest of the City’s failure to award it (or anyone else for that matter) the contract on which it was the low bidder. The controlling section of the statute allows a challenge to the award or proposed award of a contract. In defending the action, the City of Harrisonburg argued that, because the Procurement Act waived some of the city’s sovereign immunity, it must be read strictly. The city further argued (somewhat ironically) that, because no award of the contract was given or even proposed, General Excavation could not bring suit because it would not be challenging the “proposed award or award” of a contract. Not surprisingly, the Rockingham County court held with the City and strictly construed the statute against General Excavation in finding that General Excavation did not have the standing necessary to bring suit under the statute. Read the full story...
Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Kahana Feld Named to the Orange County Register 2024 Top Workplaces List

January 14, 2025 — Linda Carter - Kahana Feld
ORANGE COUNTY – Dec. 31, 2024 – Kahana Feld is pleased to announce that the firm has been named a 2024 Top Workplace by the Orange County Register. This is the second year in a row that Kahana Feld has been named to the Orange County Top Workplaces list. The Top Workplaces list is based solely on employee feedback gathered through a third-party survey. The confidential survey uniquely measures the employee experience and its component themes, including employees feeling Respected & Supported, Enabled to Grow, and Empowered to Execute. “Inclusion on this list is a testament to Kahana Feld’s dedication to employee satisfaction,” said Firmwide Managing Partner Amir Kahana. “Having a positive and supportive culture has always been a top priority for us, and it will continue to be a driving force in our growth and success.” Read the full story...
Reprinted courtesy of Linda Carter, Kahana Feld
Ms. Carter may be contacted at lcarter@kahanafeld.com

San Francisco Office Secures Defense Verdict in Legal Malpractice Action

November 25, 2024 — Lewis Brisbois Newsroom
San Francisco, Calif. (October 31, 2024) - After a ten-day jury trial in San Francisco Superior Court, Partner Alex Graft recently secured a defense verdict in a legal malpractice action arising out of underlying litigation with the claimants’ homeowners association. The claimants alleged his client attorneys negligently advised them that the terms of the settlement agreement would result in the creation of a so-called independent board of directors for the homeowners association. It did not come to fruition. After the attorneys withdrew, they sued for their outstanding fees, which elicited a cross-complaint alleging malpractice, breach of fiduciary duty, breach of contract and negligent misrepresentation. Read the full story...
Reprinted courtesy of Lewis Brisbois

Best Lawyers Honors Hundreds of Lewis Brisbois Attorneys, Names Four Partners ‘Lawyers of the Year’

September 16, 2024 — Lewis Brisbois Newsroom
(August 15, 2024) - Best Lawyers has selected 171 Lewis Brisbois attorneys across 47 offices for its 31st edition of The Best Lawyers in America. It has also recognized four Lewis Brisbois partners on its "Lawyers of the Year" list: San Diego Partner Gary K. Brucker Jr. (Litigation - Real Estate); Weirton Managing Partner Michelle L. Gorman (Mass Tort Litigation/Class Actions - Defendants); Roanoke Partner Paul C. Kuhnel (Medical Malpractice Law - Defendants); and Los Angeles Co-Administrative Partner Steven R. Lewis (Product Liability Litigation - Defendants). Please join us in congratulating the following attorneys on their Best Lawyers recognition! You can see the full list of attorneys named to Best Lawyers' Ones to Watch in America here. Read the full story...
Reprinted courtesy of Lewis Brisbois

Federal Court Holds that Demolition Exclusion Does Not Apply and Carrier Has Duty to Defend Additional Insureds

September 02, 2024 — Craig Rokuson - Traub Lieberman
In the recent case of Travelers Indem. Co. v. Trisura Specialty Ins. Co., 2024 U.S. Dist. LEXIS 101953 (S.D.N.Y. June 7, 2024), the court had occasion to consider the classic additional insured fact pattern of a construction accident. Travelers insured the general contractor and provided a defense to the general contractor as well as its wholly owned subsidiary. Trisura insured the subcontractor, who employed the injured worker. Travelers brought suit, alleging that Trisura is obligated to defend and indemnify the general contractor, its subsidiary, the owner of the building (The City of New York), and the tenant. Trisura denied any obligation to provide coverage due to the application of the “Demolition Exclusion” to the Trisura policy, which provides, in part, that there is no coverage for injury or damage arising out of the demolition of any building or structure which has original ground height in excess of three stories. The accident occurred during the interior demolition of the fifth floor of the building. The court held that the Demolition Exclusion applies only when there is a complete tearing down, razing, or destruction of an entire building. As the accident occurred during interior demolition, the exclusion did not apply. Read the full story...
Reprinted courtesy of Craig Rokuson, Traub Lieberman
Mr. Rokuson may be contacted at crokuson@tlsslaw.com

Wildfire Risk Harms California Home Values, San Francisco Fed Study Finds

August 26, 2024 — Laura Curtis - Bloomberg
California’s wildfires are weighing on home prices more than in the past, and insurance availability does little to help in areas considered to be at higher risk, according to a Federal Reserve Bank of San Francisco study. “Our results suggest that property values have been more adversely impacted in recent years by being close to past wildfires than was the case previously,” economists Leila Bengali, Fernanda Nechio and Stephanie Stewart wrote in a paper published Monday on the Fed bank’s website. While the effect of the proximity may be relatively small now, the economists warned “this pattern may become stronger in years to come if residential construction continues to expand into areas with higher fire risk and if trends in wildfire severity continue,” the study cautioned. Read the full story...
Reprinted courtesy of Laura Curtis, Bloomberg

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