Consider Short-Term Lease Workouts For Commercial Tenants
August 17, 2020 —
Steven Ostrow, C. Jason Kim & Patrick Haggerty - White and WilliamsThe COVID-19 pandemic is adversely affecting commercial real estate as it continues to wreak havoc in industries throughout the economy. For many years, the primary declining CRE sector has been brick and mortar retail stores. However, the retail sector is no longer suffering alone, as the COVID-19 outbreak is hurting most other CRE sectors: office, hospitality, multifamily, restaurant, personal services, entertainment and construction.
Federal, state and local governments have ordered business shutdowns and social and travel restrictions limiting most social and commercial activities. As a result, commercial tenants throughout the country are going out of business, temporarily closing, curtailing operations, laying off employees and suffering sharply declining revenues.
Short-Term Leasing Workouts of Tenant Defaults
Thousands of tenants are partially operating or temporarily closed and lack sufficient cash flow or access to additional working capital to pay some or all of their rent. How should a landlord address a distressed tenant's default and request for rent relief, taking into account the landlord's own responsibilities to pay maintenance costs, real estate taxes and debt service on the property?
Reprinted courtesy of White and Williams attorneys
Steven Ostrow,
C. Jason Kim and
Patrick Haggerty
Mr. Ostrow may be contacted at ostrows@whiteandwilliams.com
Mr. Kim may be contacted at kimcj@whiteandwilliams.com
Mr. Haggerty may be contacted at haggertyp@whiteandwilliams.com
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Affirmed: Nationwide Acted in Bad Faith by Failing to Settle Within Limits
July 19, 2017 —
Bethany Barrese – Saxe Doernberger & Vita, P.C.The Eleventh Circuit recently affirmed that Nationwide acted in bad faith by refusing to settle a claim against its insured for the policy limits, exposing the policyholder to an excess verdict.1
The case arose out of a 2005 automobile accident where Seung Park, who was insured by Nationwide, struck and killed another driver, Stacey Camacho. Shortly after the accident, Ms. Camacho’s estate issued a time-limited demand for the full limits of the policy Nationwide issued to Mr. Park, $100,000, to settle the case. After the deadline to respond to the demand expired, Nationwide rejected the demand and made a counteroffer. A settlement could not be reached and a wrongful death suit was filed against Mr. Park, resulting in a massive jury verdict of $5.83 million.
Following the jury verdict, Mr. Park assigned his rights against Nationwide to Ms. Camacho’s estate, which then filed claims for negligence and bad faith failure to settle against Nationwide. The case was tried to a jury, which found in favor of the estate.
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Bethany Barrese, Saxe Doernberger & Vita, P.C.Ms. Barrese may be contacted at
blb@sdvlaw.com
Venue for Suing Public Payment Bond
June 15, 2017 —
David Adelstein - Florida Construction Legal UpdatesPublic payment bonds (excluding FDOT payment bonds) are governed under Florida statute s. 255.05. As it pertains to venue—the location to sue a public payment bond–the statute provides in relevant portion:
(5) In addition to the provisions of chapter 47, any action authorized under this section may be brought in the county in which the public building or public work is being construction or repaired.
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(1)(e) Any provision in a payment bond…which restricts venue of any proceeding relating to such bond…is unenforceable.
Now, what happens if a subcontractor sues only a payment bond but its subcontract with the general contractor contains a mandatory venue provision? For example, what if the general contractor is located in Lee County and the subcontract contains a venue provision for Lee County, the project is located in Collier County, the subcontractor is located in Miami-Dade County, and the surety issues bonds in Miami-Dade County? Does venue have to be in Lee County per the mandatory venue provision?
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com
Did the Building Boom Lead to a Boom in Construction Defects?
May 10, 2013 —
CDJ STAFFThe height of the building boom is now almost a decade past but some are saying that the results of the rush to get housing built during the profitable market are still with us. The Wall Street Journal reports on the rise of construction defect lawsuits as these homes have aged, some not too gracefully. One couple thought they were hearing acorns falling on their roof. They were less happy to find that the source of the noises was their house slumping on one end, leading to cracks throughout the house. Their neighbors had similar problems and they are now part of a lawsuit against the builder. The expenses to repair the houses could total millions of dollars.
Some have suggested that during the building boom both building and inspection standards were more lax in order to keep up with the pace of building. Criterium Engineers, a building-inspection firm, estimates that 17% of new homes built in 2006 had at least two significant defect, while only 15% of those built in 2003 fit these criteria. Meanwhile others attribute the rise in construction defect lawsuits to home inspector and construction defect attorneys looking for new territories to exploit.
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So, You Have a Judgment Against a California Contractor or Subcontractor. What Next? How Can I Enforce Payment?
May 04, 2020 —
William L. Porter - Porter Law GroupThe Contractors’ State License Board (“CSLB”) represents the interests of the public in California construction matters. In the field of California construction, the CSLB is all powerful. The agency has the right to suspend the license of any contractor or subcontractor who does not pay on a construction related judgment against it. If you are successful in obtaining a court judgment against a contractor or a subcontractor in a construction-related case, you can utilize the services of the CSLB to suspend the contractors’ license of that contractor or subcontractor until the judgment has been paid. Once the license is suspended, the contractor or subcontractor has no legal right to work as a contractor or subcontractor and can even be arrested for doing so. Details on using the CSLB to suspend the license of a contractor or subcontractor who has a construction-related judgment against it can be accessed at this particular CSLB link:
CSLB – Judgment.
On receipt of notice of the construction-related judgment, the CSLB will either suspend the contractors’ license of any contractor or subcontractor who does not pay on the judgment or who does not appeal the judgment to the Court of Appeals or file bankruptcy within 90 days. There also exists an opportunity for the licensed debtor to file a bond with the CSLB. The bond will either have to be renewed annually or the judgment paid, whichever comes first.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Payne & Fears LLP Recognized by U.S. News & World Report and Best Lawyers in 2023 “Best Law Firms” Rankings
November 28, 2022 —
Payne & Fears LLPPayne & Fears LLP is pleased to announce that the firm has been recognized by U.S. News & World Report and Best Lawyers 2023 “Best Law Firms” list. Firms included in the 2023 edition of U.S. News – Best Lawyers “Best Law Firms” are recognized for professional excellence with consistently impressive ratings from clients and peers. This includes the top 5% of private practicing lawyers in the United States.
Payne & Fears LLP has been ranked in the following practice areas:
- Commercial Litigation
- Employment Law – Management
- Insurance Law
- Labor Law – Management
- Litigation – Labor & Employment
- Litigation – Real Estate
- Litigation – Intellectual Property
Additionally, on August 15, 2022, 11 of our attorneys were selected for inclusion in
The Best Lawyers in America® 2023. Collectively bringing decades of experience and dedication to their practice, Jeffrey K. Brown, Daniel F. Fears, Daniel M. Livingston, Thomas L. Vincent, Benjamin A. Nix, James L. Payne, Scott S. Thomas, and Kelby Van Patten received this respected achievement. Additionally, Leilani E. Jones, Sarah J. Odia, and Matthew C. Lewis were included in Best Lawyers: Ones to Watch 2023.
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Payne & Fears LLP
Privette: The “Affirmative Contribution” Exception, How Far Does It Go?
August 10, 2020 —
Courtney Arbucci, Peter A. Dubrawski & Austin F. Smith - Haight Brown & BonesteelIn Horne v. Ahern Rentals, Inc. (No. B299605, filed 6/10/2020 ord. publ. 6/10/2020), Plaintiffs filed a wrongful death action against Defendant Ahern Rentals, Inc. (“Ahern”) arising out of the fatal incident involving Ruben Dickerson (“decedent”), while employed by independent contractor 24-Hour Tire Service, Inc. Decedent was ultimately crushed on Ahern Rentals, Inc.’s property when a forklift that was improperly placed on uneven ground collapsed as decedent laid under the raised forklift as he performed tire maintenance.
Plaintiffs’ suit would normally be barred by the Privette line of decisions which arise out of the foundational principle that an independent contractor’s hirer presumptively delegates to the contractor its tort law duty to provide a safe workplace for the contractor’s employees. (Privette v. Superior Court (1993) 5 Cal.4th 689 (Privette).) The Privette rule is subject to a number of exceptions including the “peculiar risk” exception, the “nondelegable duty” exception and the “affirmative contribution” exception. (See Privette, supra.) Here, Plaintiffs’ claimed that their suit against Ahern arose out of the “affirmative contribution” exception to Privette as defined by Hooker v. Department of Transportation (2002) 27 Cal.4th 198, 202 (Hooker). Hooker allows suits otherwise barred by Privette to go forward if the hirer of the independent contractor “exercised control over safety conditions at the worksite in a way that affirmatively contributed to the employee’s injuries.”
Reprinted courtesy of Haight Brown & Bonesteel attorneys
Courtney Arbucci,
Peter A. Dubrawski and
Austin F. Smith
Ms. Arbucci may be contacted at carbucci@hbblaw.com
Mr. Dubrawski may be contacted at pdubrawski@hbblaw.com
Mr. Smith may be contacted at asmith@hbblaw.com
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Five Actions Construction and Energy Risk Managers Can Take to Avoid the Catastrophic Consequences of a Cyber Attack
June 27, 2022 —
Eve-Lynn Gisonni - Saxe Doernberger & VitaWith the ever-increasing usage of technology in the construction and energy industries, risks to business operations have also increased. Property developers and construction contractors rely on electronic data and communications more than ever to streamline projects, ensure efficient and timely supply chain delivery, and facilitate immediate communications between parties. However, with this dependence upon technology comes the heightened risk of cyber criminals frustrating construction operations and driving up costs.
Similarly, as the energy sector has grown more dependent upon online networks for deliverables, vulnerabilities have become more pronounced in trades dependent upon electrical grids. When an entire electricity network must be taken offline in defense of a cyber-attack, this impacts countless industries such as hospitals and health care operations, manufacturers and suppliers, and local and interstate traffic systems.
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Eve-Lynn Gisonni, Saxe Doernberger & VitaMr. Gisonni may be contacted at
EGisonni@sdvlaw.com