Construction Law

Folger Levin & Kahn LLP has extensive litigation and transactional experience in construction projects and for construction industry clients, including major disputes involving numerous parties and tens of millions of dollars. We have represented developers, owners, general contractors, subcontractors, engineers, architects, suppliers, sureties, construction lenders, and environmental planners and consultants in all types of projects, including office complexes, semiconductor manufacturing facilities, hospitals, hotels, housing developments, power plants, sewage treatment facilities, shopping centers, transportation systems, government facilities, and apartment and condominium projects.

Notable Cases

  • Hilton Hotels Corporation v. Kaweener. Thirteen years after its construction, a portion of the facade of the San Francisco Hilton Hotel detached from the face of the building and struck the ground. Estimated costs of repairing the entire curtainwall were over $5 million. Notwithstanding the passage of time, we were able to obtain favorable rulings for Hilton with respect to the statute of limitations and settle the case so that the repair was performed solely at the manufacturer’s cost.
  • Three Embarcadero Center West v. Dinwidde Construction and John Portman & Associates. We successfully represented the owners in obtaining recovery for structural steel design and construction defects in a major high-rise office building in San Francisco. In connection with this project, we worked extensively with experts to devise a method of repair that avoided significant delays and excessive costs.
  • John Carl Warnecke & Associates v. Hilton and Prudential. In this case, the architect at the San Francisco Hilton expansion walked off the $150 million project at a critical juncture, thereby threatening to shut down the project. We negotiated an agreement that enabled the project to continue on a basis favorable to our clients, Prudential and Hilton, and we were successful in defending against the architect’s claims for substantial increased compensation in subsequent litigation. We also successfully represented Hilton and Prudential in negotiations with the contractor and numerous subcontractors regarding the reimbursable costs of construction.
  • Lehr’s Restaurant v. Hilton and Prudential. A San Francisco restaurateur sued a joint venture of Prudential and Hilton for $30 million in compensatory damages plus punitive damages because the renovation of the San Francisco Hilton put the plaintiff’s restaurant out of business for three years. FLK won a jury verdict exonerating Hilton and Prudential on 17 of 18 claims and awarding the restaurateur less than $500,000. In a subsequent action, we successfully recovered the loss from the contractor’s insurance carrier.
  • Fluor Daniel v. National Westminister Bank. We represented Fluor Daniel, which was seeking recovery against the construction lender and owner in connection with the design and construction of an agricultural waste power plant. We were successful in defeating all claims of design and construction defects and in obtaining a multi-million-dollar recovery for our client.
  • Nationwide Insurance v. Lone Star Industries. We represented a national manufacturer of cement and concrete products in a case arising out of the collapse of an office building in Boston. Our client’s products were used in the construction of the building. We were able to establish that the collapse was the result of faulty specifications rather than substandard materials.
  • Highland Framers v. Kaufmann & Broad. We represented Kaufman & Broad (now KB Home) in connection with a $50 million lawsuit brought by a regional contractor and supplier of lumber. Our client achieved a judgment in its favor on all of the contractor’s claims and recovered over $1 million against the contractor’s surety.
  • KB Home South Bay v. Western Pacific Housing, Inc. We represented KB Home in connection with a dispute with Western Pacific Housing regarding the refund of a deposit for the purchase of a development project for hundreds of homes. We won summary judgment requiring Western Pacific Housing to refund KB Home’s deposit and to reimburse KB Home’s legal fees.
  • Bechtel Corporation v. Crum & Forster . We represented Bechtel in connection with insurance disputes concerning over 15,000 lawsuits against Bechtel for alleged bodily injuries stemming from exposure to asbestos on construction and engineering projects. The case settled favorably on the eve of trial.
  • FN Development Company Alpha v. Paragon Homes. Real estate developers alleged that our client Ford Motor Company had wrongfully terminated a series of joint ventures for the development of 13 residential projects involving the construction of over 11,000 single-family homes in Southern California. Our client countered that the developers were seeking to avoid payment of losses that they sustained following a recession in the Southern California real estate market. Following an eight-week trial, the court awarded our client damages of $64 million and denied recovery on the developers’ claims.
  • Represented developer who acquired a new multi family housing development in successfully pursuing subcontractors for a multi million dollar recovery to correct construction defects.
  • Represented contractor in recovering millions of dollars after constructing a commercial shopping center following an early, strategic mediation.

Transactional Practice

We have represented owners and contractors in numerous transactional construction matters, both commercial and residential, including the following:

  • Representing HCP, Inc./HCP Life Science Estates in the development of research and development, office, technology, warehouse and industrial buildings, including at least twenty substantial build-to-suit projects for biotech, medical device and information services tenants.
  • Representation of clients such as Goodwill Industries, San Francisco Jewish Community Center, and The Hamlin School in the negotiation of construction contracts for the development or substantial renovation of their facilities.
  • General counsel to Plath & Company, a high-end residential contractor.

Representative Clients: Bechtel Corporation; DPR Construction, Inc.; Kaufman & Broad (KB Home); Prudential Realty; Hilton Hotels Corporation; Lone Star Industries; Hall Properties; AEG; Babcock & Wilcox; First Nationwide Bank; M. A. Mortenson Company; Geomatrix Consultants; EIP Associates.

For more information, contact:
Douglas W. Sullivan, dsullivan@flk.com
Donald E. Kelley, Jr., dkelley@flk.com
Wesley D. Hurst, Managing Partner of the Los Angeles Office, whurst@flk.com

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