Louisiana Politicians Struggle on Construction Bills, Hospital Redevelopment
June 16, 2011 —
CDJ STAFFLouisiana politicians are still working on a compromise in the state’s construction budget, as reported in the Times-Picayune. Rob Marrianneax, the chair of the Senate Revenue and Fiscal Affairs Committee, removed a $45 million request from Governor Bobby Jindal and added $4 million for projects that Jindal vetoed last year.
Two senators have formed competing plans to fund redevelopment construction for New Orleans’s Methodist Hospital. Mitch Landrieu, the mayor of New Orleans, hoped for $30 million dollars in state bonds. Senator Cynthia Willard-Lewis proposed an amendment that would supply $1.6 million, while Senator J.P. Morrell has an amendment that would supply $4 million.
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Proposed Legislation for Losses from COVID-19 and Limitations on the Retroactive Impairment of Contracts
July 27, 2020 —
Shaia Araghi - Newmeyer DillionThe COVID-19 pandemic has caused most businesses to temporarily close and, as a result, sustain significant losses. Various states are contemplating the passage of legislation to require carriers to cover claims arising from COVID-19, but case law regarding the constitutionality of such legislation is conflicting. Depending on the facts surrounding retroactive legislation, states may be able to pass an enforceable law leading to coverage.
Pennsylvania’s Proposed Legislation for Business Interruption Losses
Pennsylvania is one of many states that has proposed legislation to override language in business interruption policies and require coverage from insurance carriers. Pennsylvania House Bill 2372 proposes that any insurance policy that covers loss or property damage, including loss of use and business interruption, must cover the policyholder’s losses from the COVID-19 pandemic.1 It applies to insureds with fewer than 100 employees.2 To enhance its chances to pass constitutional challenges, the House Bill also provides for potential relief and reimbursement through the state’s commissioner.3 Pennsylvania Senate Bill 1127 is broader than House Bill 2372 and most bills proposed in other states and would require indemnification for nearly all insureds.4 The Senate Bill makes important legislative findings and notes that insurance is a regulated industry.5 It essentially provides that an insurance policy insuring against a loss relating to property damage, including business interruption, shall be construed to cover loss or property damage due to COVID-19 or due to a civil authority order resulting from COVID-19.1 The proposed bill redefines “property damage” to include: (1) the presence of a person positively identified as having been infected with COVID-19; (2) the presence of at least one person positively identified as having been infected with COVID-19 in the same municipality where the property is located; or (3) the presence of COVID-19 having otherwise been detected in Pennsylvania.
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Shaia Araghi, Newmeyer DillionMs. Araghi may be contacted at
shaia.araghi@ndlf.com
When Is a Project Delay Material and Actionable?
January 11, 2022 —
Rick Erickson - Snell & Wilmer Real Estate Litigation BlogWelcome to 2022! This year, the construction industry will undoubtedly reflect on the last two years as unprecedented times plagued by construction project delays. The COVID-19 pandemic contributed to suspension of work and closure of construction projects worldwide in 2020. The end of 2021 brought additional delays caused by an inexplicable clog in the supply chain of construction materials. The combined impact of these events on project milestones and completion deadlines led our clients to ask, with unusual and particular urgency, who is liable for such delays and how do contracting parties lessen the consequences from such unexpected and uncontrollable delays.
Granted that project delays are nothing new or unusual. They were common enough before inflation caused shipping complications and pandemic decimated the construction labor force. All delays, whatever the source, variably cause loss to all players on a construction project. But not all delays matter when it comes to claims and remedies available to the contracting parties in dispute resolution, where the determinative focus is on material delays impacting the entire project and on delays the claimant can credibly prove.
Most, if not all, jurisdictions interpret actionable delays from the contract documents for the project. The contract is definitely where you should start before pursuing any delay remedies. Delay remedies may be a time extension only, or a time extension plus your additional general conditions. Some delay remedies may be barred by the contract’s express terms and may be enforced adversely by the courts when such contract terms are indisputable. See Quinn Constr. v. Skanska USA Bldg., Inc., 730 F. Supp. 2d 401, 411 (D.C. Pa. 2010) (enforcing the subcontractor’s contractual waiver of claims for delay and disruption damages). On the other hand, delay damages that are expressly allowed by the contract—like overtime necessitated by the delays—are usually actionable and recoverable. Id. However, not only the contract terms, but applicable law, may affect the outcome.
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Rick Erickson, Snell & WilmerMr. Erickson may be contacted at
rerickson@swlaw.com
Hunton Insurance Lawyer, Adriana Perez, Selected to the National Association of Women Lawyers’ 2023 Rising List
March 27, 2023 —
Hunton Insurance Recovery BlogCongratulations to
Adriana Perez on her selection to the
National Association of Women Lawyers’ (NAWL) 2023 Rising List. Adriana is a member of Hunton Andrews Kurth’s national Insurance Recovery practice and is based in the Firm’s Miami, Florida office.
Hunton Insurance Recovery Partner, Michael Levine, commented on the enormous success the team has had in recent years, with recognitions like Adriana’s being emblematic of the team’s high caliber practice and visibility. Team Head, Syed Ahmad, added that the recognition is a tribute to Adriana’s growth as a young lawyer and her trajectory to become an industry leader.
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Construction Law Alert: Unlicensed Contractors On Federal Projects Entitled To Payment Under The Miller Act
May 07, 2014 —
Steven M. Cvitanovic and Jessica M. Lassere Ryland - Haight Brown & Bonesteel, LLPAs a matter of first impression, the Ninth Circuit Court of Appeals in Technica LLC ex rel. U.S. v. Carolina Cas. Ins. Co., 12-56539, 2014 WL 1674108 (9th Cir. Apr. 29, 2014), allowed an unlicensed subcontractor to recover from a prime contractor for unpaid services relating to a federal construction project under a federal Miller Act claim. California law otherwise prevents unlicensed contractors from recovering for unpaid work on non-federal projects as a penal measure intended to encourage contractors to maintain a valid license at all times.
Technica LLC (“Technica”) worked as a sub-subcontractor on a large federal fence replacement project (the “Project”). Over the course of a year, Technica supplied nearly a million dollars worth of labor, materials, and services for the Project. However, Technica received only $287,861.81 in partial payments for its work. Technica proceeded to file suit in district court against the prime contractor Candelaria Corporation (“Candelaria”) and its payment surety Carolina Casualty Insurance Company (“CCIC”) under the Miller Act to recover amounts owed to it on the subcontract against the payment bond.
Reprinted courtesy of
Steven M. Cvitanovic, Haight Brown & Bonesteel, LLP and
Jessica M. Lassere Ryland, Haight Brown & Bonesteel, LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Ms. Lassere Ryland may be contacted at jlassere@hbblaw.com
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Toll Brothers Named #1 Home Builder on Fortune Magazine's 2023 World's Most Admired Companies® List
February 06, 2023 —
Toll Brothers, Inc.FORT WASHINGTON, Pa., Feb. 01, 2023 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL) (www.TollBrothers.com), the nation's leading builder of luxury homes, has been named the #1 Most Admired Home Builder in the 2023 Fortune magazine survey of the World's Most Admired Companies, the eighth year the company has achieved this honor.
To determine the best-regarded companies, Fortune and its partner Korn Ferry conducted the 2023 survey with 645 of the world's highest-revenue companies across 52 industries and 27 countries. Executives, directors, and Wall Street analysts were asked to rate companies in their own industries on nine criteria, ranging from investment value, financial soundness and quality of management, to quality of products, innovation, social responsibility and people management.
"We are proud to once again be honored as the #1 Home Builder on the Fortune World's Most Admired Companies list," said Douglas C. Yearley, Jr., chairman and chief executive officer of Toll Brothers. "All of us at Toll Brothers are focused on upholding our reputation for quality, value, and service built over the past 56 years. I would like to thank every Toll Brothers employee for their commitment to excellence and to serving our customers. We appreciate this tremendous recognition within the home building industry and the larger business community."
ABOUT TOLL BROTHERS
Toll Brothers, Inc., a Fortune 500 Company, is the nation's leading builder of luxury homes. The Company was founded 56 years ago in 1967 and became a public company in 1986. Its common stock is listed on the New York Stock Exchange under the symbol "TOL." The Company serves first-time, move-up, empty-nester, active-adult, and second-home buyers, as well as urban and suburban renters. Toll Brothers builds in over 60 markets in 24 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington, as well as in the District of Columbia. The Company operates its own architectural, engineering, mortgage, title, land development, golf course development, smart home technology, and landscape subsidiaries. The Company also operates its own lumber distribution, house component assembly, and manufacturing operations.
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What You Need to Know About “Ipso Facto” Clauses and Their Impact on Termination of a Contractor or Subcontractor in a Bankruptcy
September 12, 2022 —
Martha B. Chovanes & Laurie A. Stanziale - ConsensusDocsWhile contractor bankruptcies have long been an issue in the construction industry, in the aftermath of COVID-19 and the resultant labor, material and supply-chain delays, contractor bankruptcies are of even greater concern. Many construction contracts attempt to protect the upstream party from a bankruptcy filing of its contractor or subcontractor by providing for an automatic right to terminate a contract, referred to as “ipso facto” clauses. However, such clauses are generally unenforceable as bankruptcy laws, specifically Section 365(e) of Title 11 of the United States Code, protect the party filing for bankruptcy (the “Debtor”) from unilateral termination of the contract by the non-Debtor party.
What is an “Ipso Facto” clause? An ipso facto clause is a provision in an agreement which permits its termination by one party due to the bankruptcy, insolvency or financial condition of the other party.
Reprinted courtesy of
Martha B. Chovanes, Fox Rothschild LLP (ConsensusDocs) and
Laurie A. Stanziale, Fox Rothschild LLP (ConsensusDocs)
Ms. Chovanes may be contacted at mchovanes@foxrothschild.com
Ms. Stanziale may be contacted at lstanziale@foxrothschild.com
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DoD Issues Guidance on Inflation Adjustments for Contractors
August 15, 2022 —
Jennifer Harris & Abby Salinas - ConsensusDocsThe Department of Defense (“DoD”) recently issued a memorandum to contracting officers (“COs”) guiding the use of economic price adjustment (“EPA”) clauses to address inflation-related cost increases. The memorandum, entitled Guidance on Inflation and Economic Price Adjustments, comes as the year-over-year inflation rate rose to 8.6% in May, and contractors with fixed-price contracts seek ways to recover their rising costs. EPA clauses allow the parties to mitigate cost risks that present themselves as a result of circumstances beyond the contractor’s control, e.g., inflation and supply chain price fluctuations. Generally, an EPA clause will dictate that the Government bear the cost risk up to a mutually agreed-upon ceiling. EPA clauses apply to the cost portion of a contract, but do not normally apply to the profit. DFARS PGI 216.203-4.
Memorandum: No CO Authority to Grant Contractual Relief Absent an EPA Clause
The memorandum states that absent an existing EPA clause, COs do not have the authority to provide contractual relief for unanticipated inflation under a firm-fixed-price contract.
Reprinted courtesy of
Jennifer Harris, Peckar & Abramson, P.C. (ConsensusDocs) and
Abby Salinas, Peckar & Abramson, P.C. (ConsensusDocs)
Ms. Harris may be contacted at jharris@pecklaw.com
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