Parties use insurance to transfer risks inherent in their business activities. As to potential insurance coverage for business interruption caused by COVID-19, the general outlook is unfavorable as most policies will exclude personal injury or property damage caused by a communicable disease.
Legal Resources & News
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Phase I Environmental Site Assessments in Commercial Real Estate
A Phase I Environmental Site Assessment, commonly referred to as an “ESA” or “Phase I,” researches current and historical uses of real estate as part of a commercial real estate transaction. A Phase I assesses whether previous real estate uses have impacted the soil or groundwater beneath real...
Construction Defect Coverage: the Michigan Supreme Court revisits the question of whether coverage exists for construction defects under standard commercial general liability policies
An important case for contractors and subcontractors has surfaced at the Michigan Supreme Court. Skanska USA Building, Inc. v. M.A.P. Mechanical Contractors, Inc. raises the question: is property damage coverage under a standard commercial general liability policy when the damage results from a...
Indemnity Obligations: the “In-Law” That Won’t Move Out
Contractors and subcontractors should be aware of their lingering liability under contractual indemnity provisions that might currently be overlooked. These obligations and the potential for liability can outlast other types of contract claims because they might not accrue until long after the project is done.
Consequential Damages Reign Supreme, But Cannot be Included in a Construction Lien
In the recent case of TSP Services v National-Standard, LLC (Court of Appeals, Sept. 2019), the Michigan appellate court affirmed an arbitrator’s award of consequential damages to a contractor for lost profits, but rejected the arbitrator’s ruling that such damages could be included in a...
Indiana’s Anti-Indemnity Statute Impact Architects, Engineers, and Design Builders
Learn about the impact of Indiana’s Anti-Indemnity Statue on Architects, Engineers, and Design Builders.
Up in Smoke: Michigan’s Marijuana Law and its Applicability to the Construction Industry
Regardless of your personal views on Marijuana use, it is here to stay. For the construction industry, it is important to understand the implications. To summarize the 2019 Michigan Regulation and Taxation of Marihuana Act, it is now legal in the State of Michigan (as opposed to under Federal...
Captive Insurance Update: Limitation on Premium Revenue Increases
On January 1, 2019, the limitation on premium revenue under IRC 831(b) increased from $2.2 million to approximately $2.3 million. This occurred by operation of 26 U.S.C. 831(E), which provides that the $2.2 million limit shall be increased annually by a cost-of-living adjustment rounded up to the next lowest multiple of $50,000.
Commercial Real Estate Purchase Agreement Do’s and Don’ts
Whether you are purchasing commercial property as an investment or to address the needs of your business, there are at least 5 “do’s” and 5 “don’ts” you are going to want to consider when negotiating the Purchase Agreement. The Purchase Agreement in many cases can follow a letter of intent, but letters of intent are most times non-binding. Careful attention must be paid to the terms and conditions of the Purchase Agreement as the details can greatly impact your risks and liability in the transaction.
Do #1: Make sure the property is properly described.
While this sounds obvious, many times errors are made by using tax property descriptions or old legal descriptions that don’t actually reflect the property being sold. This can lead to boundary disputes, zoning problems or worse when you go to sell the property.
Do #2: Allow for enough time for due diligence.
In today’s world of national and international investors and 1031 exchanges the timelines for “clean” deals can be extremely short. Twenty-one days may not be a sufficient amount of time to review the title work, obtain a Phase I environmental assessment, physically inspect the site, review any applicable tenant lease and understand the local zoning ordinances.
AIA-2017—The Oxford Comma Reigns!
Every 10 years, the American Institute of Architects (AIA) releases updated editions of its flagship design and construction agreements, the most recent of which AIA published in 2017. The 2017 revisions were unexceptional. For the most part, commonly negotiated provisions such as indemnity and...