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Atlanta Office Wins Defense Verdict For Property Manager On Claims By Vendor, Cross-Claims By Property Owner

January 08, 2024 — Lewis Brisbois Newsroom
Atlanta, Ga. (December 18, 2023) – Atlanta Partner Adi Allushi and Associate Cecilia Walker recently secured a defense verdict for a national property management corporation on claims brought by a vendor and cross-claims lodged by the property owner. Lewis Brisbois’ client is a national corporation, over a century old, that managed over 140 properties with 40,000 units. In 2019, the client entered the Georgia market managing three apartment complexes owned by a hedge fund in New York. The owner terminated without cause the client within six months, and several vendors – including the plaintiff, who was a remedial services provider – were not paid during the last few months and the transition period. The plaintiff sued the owner for the unpaid services, as well as an incorrect entity it believed to be the client. The owner cross-claimed against the client for fraudulent misrepresentations. Based on the misnomer statute, the court granted default judgment against the client. Read the full story...
Reprinted courtesy of Lewis Brisbois

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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:

1. Which real estate entities will likely be most affected by the CTA’s implementation and why?
2. What exemptions may apply?
3. How will the CTA’s reporting requirements affect real estate transactions for lenders and investors/buyers?
Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team


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Competitive Bidding Statute: When it Applies and When it Does Not

April 15, 2024 — Mason Fletcher - Ahlers Cressman & Sleight PLLC
The University of Washington (UW), a public university, aimed to secure a real estate developer for a new building on its campus. The proposal involved an 80-year ground lease (the “Lease”), and developers submitted bids. The selected developer would demolish an existing building, construct a new one, own it during the Lease at its own cost, and UW would lease back a portion, with ownership reverting to UW at the Lease’s end. Alexandria Real Equities, Inc. (ARE) was a finalist but ultimately was not selected, and the Lease was awarded to Wexford Science and Technology, LLC (Wexford). As a result, ARE filed suit against UW asserting three claims: 1) UW lacked authority to execute the Lease, 2) UW didn’t follow required competitive bidding procedures, and 3) UW’s developer selection process was arbitrary and capricious. None of these claims were successful and ARE appealed. Division II of the Washington Court of Appeals affirmed in Alexandria Real Estate Equities Inc. v. Univ. of Wash., __ Wn. App. __, 539 P.3d 54 (2023), a published decision. The Court concluded, based on the facts in that case, that because construction was not publicly funded, UW did not have to follow competitive bidding requirements that were laid out in a statute relevant to state universities. Still, the Court applied the “bright-line cutoff point” that prohibits disappointed bidders from challenging an award once a contract has been executed. See Dick Enterprises, Inc. v. Metro. King County, 83 Wn. App. 566, 572, 922 P.2d 184 (1996). Read the full story...
Reprinted courtesy of Mason Fletcher, Ahlers Cressman & Sleight PLLC
Mr. Fletcher may be contacted at mason.fletcher@acslawyers.com

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The Other Side of the North Dakota Oil Boom: Evictions

May 13, 2024 — Sarah Holder - Bloomberg
Williams County, North Dakota, is one of the biggest beneficiaries of the state’s fracking boom. In the past decade, millions of barrels of oil have been pumped from its land, and the population of its largest city, Williston, has doubled. But as the oil flowed and workers poured in to staff the rigs, housing options quickly ran dry. The region’s uneven expansion has led to an eviction crisis for the county’s 39,000 residents, according to a recent paper from a group of sociologists affiliated with Princeton University’s Eviction Lab. Williams County saw its eviction rate go from “nearly non-existent” in 2010 to over 7% a decade later, the study found. By 2019, at the height of its oil boom — when the state accounted for 11% of the country’s oil production — its eviction filing rate was comparable to that of large, renter-heavy cities like New York City or Philadelphia, according to Eviction Lab. Though oil production peaked in 2019, the problem hasn’t abated: From January through November 2023, more than 550 evictions were recorded by the Williams County Sheriff’s office, up around 30% from the previous full year. Read the full story...
Reprinted courtesy of Sarah Holder, Bloomberg


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Risky Business: Contractual Versus Equitable Rights of Subrogation

December 16, 2023 — Kyle Rice - The Subrogation Strategist
In Zurich Am. Ins. Co. v. Infrastructure Eng’g. Inc., 2023 Ill. App. LEXIS 383, the insurer, Zurich American Insurance Company (Insurer) proceeded as subrogee of Community College District No. 508 d/b/a City Colleges of Chicago and CMO, a Joint Venture. The Appellate Court of Illinois, First District (Appellate Court) addressed whether Insurer – who issued a builder’s risk policy to insure a building during construction – could subrogate on behalf of the building owner, City Colleges of Chicago (City Colleges), who was part of the joint venture and an additional named insured, but who had not been directly paid for the underlying loss. The Appellate Court determined that the policy language established that the carrier was contractually permitted to subrogate on behalf of all additional named insureds on the policy, including the building owner. Read the full story...
Reprinted courtesy of Kyle Rice, White and Williams
Mr. Rice may be contacted at ricek@whiteandwilliams.com

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NY Project Produces America's First Utility Scale Wind Power

December 23, 2023 — Debra K. Rubin - Engineering News-Record
Despite financial gyrations in the U.S. offshore wind energy market that have caused project delays and cancellations over the past two years, America now has joined other world nations in having energy generated for the first time from a utility-scale facility. Reprinted courtesy of Debra K. Rubin, Engineering News-Record Ms. Rubin may be contacted at rubind@enr.com Read the full story...

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Watchdog Opens Cartel Probe Into Eight British Homebuilders

April 02, 2024 — Damian Shepherd & Katharine Gemmell - Bloomberg
Britain’s top antitrust enforcer has opened an investigation into eight housebuilders to probe potential information sharing, sharpening scrutiny of a sector that’s failing to deliver enough affordable housing to meet demand. The Competition and Markets Authority has opened a cartel investigation into eight developers including Barratt Developments Plc, the Berkeley Group, Persimmon Plc and Vistry Group Plc. The investigation centers on concerns the companies may have exchanged competitively sensitive information, which could be influencing the build-out of sites and the prices of new homes. An initial review will take place until December. CMA Chief Executive Officer Sarah Cardell told Bloomberg Television the watchdog had seen potential evidence of companies exchanging information relating to pricing, sales rates, and incentives offered to new homebuyers. The watchdog has the power to fine firms a maximum penalty of as much as 10% of annual revenue and disqualify directors following cartel investigations. Reprinted courtesy of Damian Shepherd, Bloomberg and Katharine Gemmell, Bloomberg Read the full story...


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Construction Litigation Roundup: “A Fastball Right to the Bean!”

May 06, 2024 — Daniel Lund III - Lexology
The Metropolitan Municipality of Lima, Peru, filed suit in federal court in Washington DC to vacate two separate arbitration awards rendered against the city in international arbitration proceedings subject to the Federal Arbitration Act. The city had contracted to build, improve, and maintain various highways in and around the city. To pay for this infrastructure, Lima agreed that the contractor would “receive revenues from existing and new toll booths.” Apparently, the City of Lima forgot how much citizens of the area loathed tolls, and, according to the court, the local public officials “quickly truckled” (how apropos for a road project!) to the pressure. As a result, revenues promised to the contractor were not forthcoming, and the city did nothing about it. The contractor initiated arbitration, and the city countered by arguing that the contractor had bribed its way into the contract. The city lost and was held in breach. Read the full story...
Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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