Quick Note: Aim to Avoid a Stay to your Miller Act Payment Bond Claim
February 23, 2017 —
David Adelstein – Florida Construction Legal UpdatesStrategy is important. This is especially true if you are trying to avoid arbitration. In a recent federal district court case, a subcontractor sued the prime contractor and the Miller Act payment bond surety. The subcontractor, however, had an arbitration provision in its subcontract with the prime contractor. The prime contractor moved to compel arbitration pursuant to the subcontract and moved to stay the subcontractor’s Miller Act payment bond claim. The last thing, and I mean the last thing, the subcontractor wanted to do was to stay its claim against the Miller Act payment bond. However, the district court compelled the subcontractor’s claim against the prime contractor to arbitration and stayed the subcontractor’s Miller Act payment bond claim pending the outcome of the arbitration. See U.S. v. International Fidelity Ins. Co., 2017 WL 495614 (S.D.Al. 2017). This is not what the subcontractor wanted.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Extreme Flooding Overwhelms New York Roadways, Killing 1 Person
July 24, 2023 —
Associated Press - BloombergNEW YORK (AP) — Heavy rain spawned extreme flooding in New York’s Hudson Valley that killed at least one person, swamped roadways and forced road closures on Sunday night, as much of the rest of the Northeast U.S. braced Monday for potentially punishing rains.
As the storm moved east, the National Weather Service extended flash flood warnings into Connecticut, including the cities of Stamford and Greenwich, before creeping into Massachusetts. Forecasters said some areas could get as much as 5 inches (12 centimeters) of rain.
In New York's Hudson Valley, rescue teams found the body of a woman in her 30s who drowned after being swept away while trying to evacuate her home, Orange County Executive Steven Neuhaus told WABC-TV. Officials were waiting for the medical examiner's office to arrive, he said.
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Bloomberg
EPA Announces Decision to Retain Current Position on RCRA Regulation of Oil and Gas Production Wastes
June 03, 2019 —
Anthony B. Cavender - Gravel2GavelAfter much study, EPA has decided against changing its current RCRA Subtitle D rules affecting the state regulation of oil and gas exploration & production waste. Since 1988, EPA has determined that most such wastes should be regulated as only non-hazardous wastes subject to RCRA Subtitle D, and not the more onerous hazardous waste provisions of RCRA Subtitle C. (See the Regulatory Determination of Oil and Gas and Geothermal Exploration, Development and Production Wastes, 53 FR 25,446 (July 6,1988).)
As a result, under the Subtitle D rules, the primary regulators of such waste are state regulatory agencies, which follow the state plan non-hazardous waste guidelines developed by EPA. This regulatory disposition has proven to be fairly controversial, and it was recently challenged in a lawsuit filed in the U.S. District Court for the District of Columbia: Environmental Integrity Project, et al. v. McCarthy. To settle this lawsuit, EPA and the plaintiffs entered into a consent decree by which EPA was to make certain determinations about the future of the program after conducting an appropriate study. That study, Management of Exploration, Development and Production Wastes: Factors Informing a Decision on the Need for Regulatory Action, has been completed, and it concludes, after a fairly comprehensive review of these state regulatory programs, that “revisions to the federal regulations for the management of E&P wastes under Subtitle D of RCRA (40 CFR Part 257) are not necessary at this time.” In a statement released on April 23, 2019, EPA accepted these findings and promised that it would continue to work with states and other stakeholders to identify areas for improvement and to address emerging issues to ensure that exploration, development and production wastes “continue to be managed in a manner that is protective of human health and the environment.”
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Why Federal and State Agencies are Considering Converting from a “Gallons Consumed” to a “Road Usage” Tax – And What are the Risks to the Consumer?
August 26, 2015 —
Roger Hughes – California Construction Law Blog“‘We’re going to have to find another way to finance the upkeep of the roads,’ Gov. Jerry Brown said earlier this year in rolling out his 2015 budget. Governor Brown gave no specifics, but last fall he signed a law that set up a commission to study a ‘road usage charge’ with a call to ‘establish a pilot program by Jan. 1, 2017…'” – San Jose Mercury News, January 27, 2015
This Change, It’s a Coming (Maybe)
Many states and the federal government are seriously considering converting from a “gallons consumed” tax levy to a “miles driven” program for determining gasoline tax. There are several compelling reasons for such a change. First, our roads are falling apart while revenue from current highway taxes fall woefully short of our current and projected needs. In the meantime, the number of miles driven by all-electric cars that pay no gas tax, is increasing rapidly; and by hybrids that pay substantially reduced tax; and worse for the taxing authorities, by increasingly efficient gas-powered cars. All of this means rapidly dropping gas tax revenues. Seeing this trend, local, state and the federal governments are making a major push to convert from a consumption based tax to a “miles driven” tax. This a good thing for those of us that believe increased investment in our transportation infrastructure is of high national concern.
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Roger Hughes, Wendel Rosen Black & Dean LLPMr. Hughes may be contacted at
rhughes@wendel.com
Are You a Construction Lienor?
November 15, 2017 —
David Adelstein - Florida Construction Legal UpdatesWhen it comes to construction lien rights, not everyone that touches the project is a proper lienor. Forget about timely serving a Notice to Owner or recording a claim of lien, if you are not a proper lienor, it does not matter if you properly perfected your lien rights. If you are not a proper lienor, you have NO lien rights under the law!
Florida Statue s. 713.01(18) defines a lienor as follows:
(18) “Lienor” means a person who is:
(a) A contractor;
(b) A subcontractor;
(c) A sub-subcontractor;
(d) A laborer;
(e) A materialman who contracts with the owner, a contractor, a subcontractor, or a sub-subcontractor; or
(f) A professional lienor under s. 713.03;
and who has a lien or prospective lien upon real property under this part, and includes his or her successor in interest. No other person may have a lien under this part.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com
Issuing Judgment After Confirmation of Appraisal Award Overturned
May 01, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe Florida Court of Appeal reversed and remanded the trial court's judgment in favor of the insured because after confirming the appraisal award, judgment was issued before the insurer could offer policy defenses. State Farm Florida Ins. Co. v. Hochreiter, 2023 Fla. App. LEXIS 743 (Fla. Ct. App. Feb. 3, 2023.
After a dispute arose over the scope and amount of damage suffered by the insureds' roof, they sued State Farm. State Farm responded to the complaint by demanding an appraisal, a stay of litigation, and an extension of time to respond to the complaint.
The trial court granted the demand and retained jurisdiction regarding post-appraisal matters once the appraisal was complete. The court further ordered State Farm to respond to the complaint within twenty days of the conclusion of the appraisal "if any issues remain." The order did not specify whether the issues that remained had to relate to the initial appraisal stage of the litigation or the subsequent stage during which the trial court had jurisdiction to adjudicate disputed issues related to coverage.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Four Companies Sued in Pool Electrocution Case
June 26, 2014 —
Beverley BevenFlorez-CDJ STAFFBack in April of this year, a seven-year old boy was electrocuted while swimming in his family’s pool in North Miami, Florida, according to CBS Miami. Now, the family is suing four companies in a wrongful death suit.
The complaint claims that the victim “was electrocuted due to a faulty pool light and electrical grounding and bonding on the pool’s lighting system.”
Pentair Water Pool and Spa, Inc., manufactured and designed the pool light. Florida Pool & Spa Center “provided periodic cleaning, maintenance and inspections of the pool,” while Gary B Electric and Construction Consultant is being sued for “improper bonding and grounding.” Also, Jorge Perez Enterprises Inspection Company is listed in the lawsuit since they conducted the inspection when the family purchased the home.
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Pinnacle Controls in Verano
February 21, 2013 —
CDJ STAFFThe California Court of Appeals has applied the California Supreme Court’s recent Pinnacle decision to a new case, Verano Condominium Association v. La Cima Development. As in Pinnacle, La Cima sought to compel arbitration of construction defect claims with a homeowners association. The trial court denied La Cima’s attempt to compel arbitration on the grounds that the arbitration agreement was made with the individual homeowners and not the homeowners association. Further, it was determined that the CC&Rs “were unenforceable due to unconscionability.”
La Cima appealed, and the appeals court affirmed in part and reversed in part. After Pinnacle, La Cima sought a review. The Supreme Court of California directed the appeals court to vacate their earlier decision and reconsider, based on Pinnacle.
The Fourth Circuit Court has concluded that this conflicted with the ruling in Pinnacle. There, as in Verano, homeowners signed agreements that disputes with the developer would be settled through binding arbitration. The appeals court had found for the community association, but on review, the California Supreme Court reversed this decision.
The California Court of Appeals had two issue to consider in this review: whether the arbitration provisions applied to the homeowners association, and whether these provisions were unconscionable. The court concluded that “in light of Pinnacle it is clear the arbitration provisions set forth in the Verano CC&Rs constitute a valid agreement to arbitrate.” On the second question, the Verano CC&Rs were described by the court as “materially indistinguishable” from those in the earlier case. As the state Supreme Court found that those were not unconscionable, clearly neither were these.
The case was remanded for further proceedings and La Cima is entitled to recover the costs of the appeal.
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