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Suffolk Pauses $1.5B Boston Tower Project for Safety Audit After Fire

April 22, 2024 — James Leggate - Engineering News-Record
The team building the $1.5-billion, 51-story South Station Tower in Boston voluntarily shut down the jobsite April 9 for a safety stand down and audit after a small fire broke out, according to contractor Suffolk Construction. No one was injured. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story...

Aarow Equipment v. Travelers- An Update

January 16, 2024 — Christopher G. Hill - Construction Law Musings
Previously here at Musings, I discussed the application of pay if paid clauses and the Miller Act. The case that prompted the discussion was the Aarow Equipment & Services, Inc. v. Travelers Casualty and Surety Co. case in which the Eastern District of Virginia Federal Court determined that a “pay if paid” clause coupled with a proper termination could defeat a Miller Act bond claim. However, as I found out a couple of weeks ago at the VSB’s Construction Law and Public Contracts section meeting, the 4th Circuit Court of Appeals reversed and remanded this case in an unpublished opinion (Aarow Equipment & Services, Inc. v. Travelers Casualty and Surety Co.) In it’s opinion, the 4th Circuit looked at some of the more “interesting” aspects of this case. One of these circumstances was that Syska (the general contractor) directed Aarow to construct sedimentary ponds and other water management measures around the project (the “pond work”), which both agreed was outside of the scope of the work defined in their subcontract. Syska asked that the government agree to a modification of the prime contract and asked Aarow to wait to submit its invoice for the pond work until after the government issued a modification to the prime contract and Syska issued a change order to the subcontract. Read the full story...
Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Best Practices: Commercial Lockouts in Arizona

April 15, 2024 — Patrick Tighe - Snell & Wilmer Real Estate Litigation Blog
If a tenant defaults under a commercial lease, Arizona law permits the landlord to re-take possession of the premises by locking out the defaulting tenant. However, if the landlord’s lockout is wrongful, the landlord may be liable for the damages the tenant sustains because of the wrongful lockout. To minimize such liability, here are some general best practices to follow when locking out a defaulting tenant:

Do Not Breach the Peace. It is vital when performing a lockout to not breach the peace. What constitutes a “breach of the peace” depends on the particular circumstances at hand. For example, if a tenant arrives during the lockout and becomes angry or threatens violence, the landlord should stop performing the lockout and return at a later time. As a general rule of thumb, it is best to perform lockouts in the early morning hours or in the late evening hours when the landlord is less likely to encounter the tenant.
Provide A Notice of Default. Many commercial leases require the landlord to provide a notice of default before the landlord can lock out a defaulting tenant. Check, double check, and triple check that the landlord followed the lease’s notice of default provisions correctly, including that the landlord sent the notices to all required parties in accordance with the time requirements set forth in the lease.

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Reprinted courtesy of Patrick Tighe, Snell & Wilmer
Mr. Tighe may be contacted at ptighe@swlaw.com

Insurer’s Broad Duty to Defend in Oregon, and the Recent Ruling in State of Oregon v. Pacific Indemnity Company

January 02, 2024 — Keith Sparks - Ahlers Cressman & Sleight PLLC
Oregon law mandates a broad duty to defend, requiring insurers to provide legal representation to their policyholders whenever there is a potential for coverage under the policy. The significance of this broad interpretation means that an insurer has a duty to defend an insured even in situations where the alleged facts only imply a covered claim, and even in situations where the underlying claim is ultimately not covered by the policy. The insurer’s duty to defend is triggered if the allegations of the complaint, reasonably interpreted, could result in the insured being held liable for damages covered by the policy. This is referred to as the “four-corners” rule; it is also sometimes referred to as the eight-corners rule (for the four corners of the complaint plus the four corners of the policy). Oregon’s adoption of a broad interpretation of the duty to defend affirmatively places the onus on insurers to err on the side of coverage. This broad duty to defend is based on the principle that an insured should not have to bear the expense of defending a lawsuit that the insurer may ultimately have to pay for. The duty to defend is also important because it helps ensure that insureds have access to legal representation when faced with a lawsuit. Read the full story...
Reprinted courtesy of Keith Sparks, Ahlers Cressman & Sleight PLLC
Mr. Sparks may be contacted at keith.sparks@acslawyers.com

National Engineering and Public Works Roadshow Highlights Low Battery Seawall Restoration Project in Charleston

April 29, 2024 — Engineering and Public Works Roadshow
CHARLESTON, SC — On Thursday, the nationwide Engineering and Public Works Roadshow stopped at the Low Battery Seawall Restoration Project in Charleston. The event highlighted the role engineers and public works professionals play in infrastructure projects like the local seawall improvements that increase coastal resiliency along the historic urban shoreline. The event, which took place along the newly constructed battery wall section between King Street and Battery Place along Murray Boulevard, marked the latest stop of the Engineering and Public Works Roadshow – a joint effort by the American Council of Engineering Companies, the American Public Works Association, and the American Society of Civil Engineers to bring public attention to the essential role engineers and public works professionals play in making our modern world possible. The battery project underscores the importance of innovative engineering solutions in addressing the challenges of climate change and rising sea levels. Thursday's event was also a chance to spotlight the engineering, construction, and public officials involved in the project, whose work often goes unrecognized. About the Engineering and Public Works Roadshow: The Engineering and Public Works Roadshow is a series of nationwide events highlighting critical infrastructure projects and the skilled professionals who make them possible. It is an opportunity to learn about the importance of infrastructure investment, showcase the work of engineers and public works professionals, and celebrate these projects' positive impact on our communities. Learn more at www.infrastructureroadshow.org.

Liability Coverage For Construction Claims May Turn On Narrow Factual Distinctions

March 25, 2024 — Scott S. Thomas - Payne & Fears
In a recent trial court decision, a Montana federal court reminds us how fragile insurance coverage can be for construction-related insurance claims. Specifically, this case illustrates how seemingly small factual nuances can make or break coverage. The case turned on the application of policy provisions familiar to all who deal with these kinds of cases. (See Nautilus Ins. Co. v. Farrens, No. CV 22-193-M-DWM, 2024 WL 885109 (D. Mont. Mar. 1, 2024)) First, the court rebuffed the insurer’s argument that damage resulting from defective workmanship (in this case, the flawed design and installation of an elaborate floating-floor pool system) is not “caused by an occurrence.” The court correctly applied the test followed by most states: if either act causing injury is unintentional or the resulting injury is unexpected or unintended, the “occurrence” requirement is met. Fortunately, the court distinguished sloppy language from earlier Montana federal court decisions suggesting otherwise. Read the full story...
Reprinted courtesy of Scott S. Thomas, Payne & Fears
Mr. Thomas may be contacted at sst@paynefears.com

Real Estate & Construction News Roundup (1/16/24) – Algorithms Affect the Rental Market, Robots Aim to Lower Construction Costs, and Gen Z Struggle to Find Their Own Space

February 12, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, New York’s Prompt Payment Act comes into question, vacancy rates rise in commercial office space, the Biden administration applies project labor agreements on certain federal construction projects, and more!

The Biden administration announced the implementing on an executive order that will require project labor agreements on federal construction projects costing $35 million or more, likely resulting in PLAs being required on a majority of large federal jobs. (Zachary Phillips, Construction Dive)
Boeing plans to increase quality inspections of its 737 Max 9 aircraft, following a series of manufacturing flaws that have led some airlines to hold off aircraft purchases or go with its European rival, Airbus. (Ken Sweet, AP)
31% of Generation Z (generally defined as those born between 1996 and 2012) adults live at home with parents because they can’t afford to buy or rent their own space. (Jessica Dickler, CNBC)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Corporate Transparency Act’s Impact on Real Estate: Reporting Companies, Exemptions and Beneficial Ownership Reporting (webinar)

December 04, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
On October 23, 2023, colleague Andrew Weiner and Kevin Gaunt, counsel at Hunton Andrews Kurth, examined the Corporate Transparency Act (CTA), effective Jan. 1, 2024, and its impact on real estate entities and transactions, including who is considered a reporting company subject to new beneficial ownership information (BOI) reporting requirements and whether an exemption applies. The panel also discussed certain state laws that impose similar reporting requirements as the CTA and described best practices for real estate counsel to assist their clients with preparing for the CTA’s implementation and ongoing compliance. The panel also reviewed other important considerations, including:

Which real estate entities will likely be most affected by the CTA’s implementation and why?
What exemptions may apply?
How will the CTA’s reporting requirements affect real estate transactions for lenders and investors/buyers?

Read the full story...

Pillsbury's Construction & Real Estate Law Team

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