Real Estate & Construction News Roundup (7/2/24) – Increase in Commercial Property Vacancy Rates, Trouble for the Real Estate Market and Real Estate as a Long-Term Investment
July 31, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, the evolution of stadium construction, an increase in legal and legislative action affecting the multifamily sector, and growing concerns for owners of office space.
- The work-from-home trend will likely push up the commercial property vacancy rate in 2026 to a peak average of 24%, or 4 percentage points higher than the first quarter of this year. (Jim Tyson, CFO Dive)
- In recent years, stadium construction has evolved to focus more on cultivating the game day experience with some multibillion-dollar projects breaking ground, as existing venues get renovations. (Zachary Phillips, Construction Dive)
- A number of prominent issues affecting the multifamily industry, including rent control, fees and antitrust concerns, have been subject to increasing levels of legal and legislative action over the past year. (Mary Salmonsen, Multifamily Dive)
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Pillsbury's Construction & Real Estate Law Team
Surprising Dismissal of False Claims Act Case Based on Appointments Clause - What Does It Mean?
October 15, 2024 —
Steven H. Lee - Lewis Brisbois NewsroomAtlanta, Ga. (October 1, 2024) - In a surprising turn of events, the U.S. District Court for the Middle District of Florida recently dismissed a False Claims Act (FCA) lawsuit brought by relator Clarissa Zafirov against Florida Medical Associates, LLC, and other defendants. U.S. District Judge Kathryn Kimball Mizelle
ruled that the FCA’s qui tam provisions, which allow private individuals to bring lawsuits on behalf of the government, violate the Constitution’s Appointments Clause.
This decision follows another unexpected ruling by U.S. District Judge Aileen Cannon in the Southern District of Florida, where the court similarly dismissed an indictment against former President Donald Trump based on the same constitutional clause.
At the heart of these rulings is the argument that FCA relators - who decide whom to sue, which legal theories to pursue, and how to proceed - exercise significant executive authority. Because they are not appointed by the President, a department head, or a court, the judges concluded that these relators hold their positions unconstitutionally. As a result, Judge Mizelle dismissed the case entirely.
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Steven H. Lee, Lewis BrisboisMr. Lee may be contacted at
Steven.Lee@lewisbrisbois.com
Alleged Negligent Misrepresentation on Condition of Home is Not an Occurrence Causing Property Damage
December 17, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe court found that even if the insured's negligent misrepresentations constituted an accident, the disclosures did not cause physical damage to the property. Wood v. USAA Cas. Ins. Co., 2024 U.S. Dist. LEXIS 180624 (D. S.C. Sept. 12, 2024).
The insured, Clinton Wood, purchased a townhome in January 2014. After the purchase, Wood experienced leaks and significant water intrusion, as did other townhome owners in the same development. Wood and the other owners retained an engineer to evaluate the cause of the water damage. The engineer determined that the water intrusion was caused by defects in the design and construction of the residence. The engineer told Wood that the proposed repairs would not adequately address and resolve the water intrusion and leaks, and that the problems would continue even if repairs were made.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
How U.S. Design and Architecture Firms Can Profit from the Chinese Market and Avoid Pitfalls
December 23, 2024 —
Chengdong ("C.D.") Xing - The Dispute ResolverDespite recent challenges, including obvious political tensions, economic cooling in the PRC, and increased local competition, the Chinese market remains an attractive destination for U.S. design and architecture firms. For instance, PEI Architects has maintained its success in China through long-standing relationships with key clients and is currently involved in two major projects for the Bank of China: a 1.9 million-square-foot complex in Shanghai and a financial center in Haikou.[i] Similarly, NBBJ is playing a critical role in the development of Tencent’s Net City in Shenzhen, a 2-million-square-meter smart city project that aligns with China's goals of sustainable and tech-driven urbanization.[ii] These examples show that while the Chinese market presents challenges, it continues to offer significant opportunities, particularly in sectors where innovative and cutting-edge architectural solutions are in high demand. At the same time, U.S. firms should exercise care: proper advance planning and strategic alliances are crucial for profitable forays into the Chinese market.
JR Design Project: A Cautionary Tale
When operating in China, U.S. design firms often encounter regulatory challenges, particularly with respect to China’s strict qualification requirements for architectural design services. Failure to meet these requirements can result in serious legal issues, including the potential invalidation of design contracts, as demonstrated in a leading case decided by the Supreme People’s Court of PRC (the nation’s highest court).
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Chengdong ("C.D.") Xing, Rajah & Tann Singapore LLPMr. Xing may be contacted at
chengdong.xing@rajahtann.com
Traub Lieberman Attorneys Recognized in the 2025 Edition of The Best Lawyers in America®
September 09, 2024 —
Traub LiebermanTraub Lieberman is pleased to announce that five Partners have been selected by their peers for inclusion in the 2025 edition of The Best Lawyers in America®. In addition, seven attorneys have been included in the 2025 Best Lawyers®: Ones to Watch list. These recognitions include attorneys from the firm’s Hawthorne, NY; Chicago, IL; Palm Beach Gardens, FL; and St. Petersburg, FL offices.
2025 Best Lawyers®
Hawthorne, NY
- Lisa L. Shrewsberry – Commercial Litigation
Chicago, IL
- Brian C. Bassett – Insurance Law
Palm Beach Gardens, FL
- Rina Clemens – Personal Injury Litigation – Defendants, Product Liability Litigation – Defendants
St. Petersburg, FL
- Lauren S. Curtis – Insurance Law
- Scot E. Samis – Appellate Practice
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Traub Lieberman
Immigrants' Legal Status Eyed Over Roles in New York Fake Injury Lawsuits
January 07, 2025 —
Richard Korman - Engineering News-RecordEdison Fernando Pesantez Ramon says that early on the morning of Sept. 29, 2021, while working on a building renovation project on 96th Street in Manhattan, he tripped and fell badly on a staircase.
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Richard Korman, ENRMr. Korman may be contacted at
kormanr@enr.com
Employees in Construction Industry Entitled to Compensation for Time Spent Complying with Employer-Mandated Security Protocols
August 19, 2024 —
Garret Murai - California Construction Law BlogWage and hour laws dictating how employers must compensate their employees for time worked can, given the innumerable ways that employees perform their jobs, raise a number of questions. The next case, Huerta v. CSI Electrical Contractors, 15 Cal.5th 908 (2024) – which I won’t spend a lot of time discussing since I think it applies in somewhat limited situations – addresses whether employees are entitled to be paid while waiting to enter and exit worksites and for meal periods when they are not allowed to exit a worksite.
The Huerta Case
The 9th Circuit Court of Appeals requested that the California Supreme Court address three questions related to whether employees should be compensated under California wage and hour laws for time spent waiting to enter and exit worksites and for meal periods when they are not allowed to exit a worksite:
- Whether employees should be paid for time spent waiting in a personal vehicle to be scanned in and out of a worksite;
- Whether employees should be paid for time spent traveling in a personal vehicle from a security gate to employee parking lots; and
- Whether employees should be paid during meal periods if they are not permitted to leave a worksite.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
New ConsensusDocs 242 Design Professional Change Order Form Helps Facilitate Compensation for Changes in Design Services
November 05, 2024 —
Brian Perlberg - ConsensusDocsConsensusDocs is publishing a new ConsensusDocs 242 Change in Services and Compensation, a change order for design services by a design professional. In the design and construction industry, one thing is certain – change. The work scope included in basic design services an architect or engineer provides occurs somewhat regularly. Previously, ConsensusDocs did not have a standard contract document for changing design professionals’ prices. As a result of user feedback, the ConsensusDocs Contract Content Advisory Council (CCAC) drafted this new architect/engineer change order. The CCAC unanimously approved the new contract document and publication is set for October 14, 2024. The document will be available for most ConsensusDocs subscribers. The full, owner, design-professional, and short-form subscription packages will include the document. A subscription package can be purchased through ConsensusDocs here.
The design professional change order helps owners of construction projects keep track of additional services their design professionals perform. The design professional must provide itemized labor breakdowns for each invoice. The new ConsensusDocs 242 has options for compensation to be actual hours at the billing rate or a lump sum. The new contract document form also has a table for the remaining project deliverables and their respective due dates.
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Brian Perlberg, ConsensusDocs CoalitionMr. Perlberg may be contacted at
bperlberg@ConsensusDocs.org