Contractor Sued for Contract Fraud by Government
December 11, 2013 —
CDJ STAFFA Canton, Ohio construction company, TAB Construction, has been sued by the federal government over claims that the company lied about its location in order to receive contracts from the U.S. government. According to the suit, TAB received about $13 million for contracts with the U.S. Army Corps of Engineers. The firm had gained the contracts through a Small Business Administration program that allowed firms in certain areas to compete for contracts, however, the firm was not located in the appropriate area.
When the SBA found that TAB was not doing business out of an address that qualified for the SBA’s HUBZone program, the company claimed to be working from another address that qualified. Upon investigation, the SBA found this also was not true.
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Is Your Design Professional Construction Contract too Friendly? (Law Note)
July 09, 2014 —
Melissa Dewey Brumback – Construction Law North CarolinaMy husband often travels the back roads between Chapel Hill and Fuquay Varina to visit friends. En route (a circuitous route that goes past Sharon Harris Nuclear Power Plant, among other places), he passes by the “Friendly Grocery.”
[Sign]
No *Loitering*Littering*Alcoholic Beverages on Premises*Bike*Skateboard*
*10 minutes Parking Limit*Towing Enforced*
I’m not sure which is the “friendly” part of that sign. In fact, the sign seems to be the antithesis of friendly.
What does this have to do with your construction contracts? Sometimes, in an effort to please the client and/or secure the project, architects and engineers have the habit of being too friendly in their contract language. That is, you make promises or proposals that may promise too much of a good thing for the client. This can cause big problems. Bigger than being towed away from a rural grocery store in the middle of nowhere. You could be putting your insurance coverage at risk.
Have you ever promised to use “best efforts” in your design or plans? Promised to design to a specific LEED standard? Guaranteed 100% satisfaction? You might be putting your errors & omission coverage at issue. By warrantying or guaranteeing something, you are assuming a level of liability well beyond the standard of care required by law. By law, you only need to conform to the standard of care, and your insurance will only provide coverage up to that standard of care. In other words, if you make guarantees or promise “best efforts,” you are contracting to something that will *not* be insured. If something goes wrong, you will be without the benefit of your professional liability coverage.
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Melissa Dewey Brumback, Construction Law in North CarolinaMs. Brumback may be contacted at
mbrumback@rl-law.com
Mediating Contract Claims and Disputes at the ASBCA
December 20, 2021 —
Brian Waagner - Construction ExecutiveThe Contract Disputes Act establishes the formal process for resolving nearly all claims and disputes that arise under federal government contracts. It is the source of the requirement that contractors certify claims in excess of $100,000, the contracting officer’s final decision and the deadlines for bringing a dispute to the court of federal claims or an agency board of contract appeals.
It is also the source of the federal government’s authority to use mediation and other forms of alternative dispute resolution. Here are six key factors contractors should know about mediating contract claims and disputes at the Armed Services Board of Contract Appeals (ASBCA).
1. The Parties Control the Parameters of ADR Proceedings
Many commercial contracts and court rules require mediation of every dispute. There is no settlement meeting, mediation or any other type of mandatory ADR proceedings in cases brought to the ASBCA. The parties control the process, and they may adopt any approach to ADR that they believe will be effective. Mediation is nevertheless voluntary. Without the agreement of both parties, it won’t happen.
Reprinted courtesy of
Brian Waagner, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Traub Lieberman Chair Emeritus Awarded the 2022 Vince Donohue Award by the International Association of Claim Professionals
August 07, 2022 —
Richard K. Traub - Traub LiebermanTraub Lieberman is pleased to announce that firm Chair Emeritus Richard Traub has been awarded the 2022 Vince Donohue Award by the International Association of Claim Professionals (IACP).
The IACP provides a forum for senior Claim leaders from across the globe to build relationships with their peers, enhance their knowledge of strategic claim issues and trends, freely exchange views and ideas in order to improve the development, leadership and professionalism of its members and foster goodwill and better business among insurance organizations worldwide. Attorneys at Traub Lieberman have been longstanding members and Diamond Sponsors of the IACP.
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Richard K. Traub, Traub LiebermanMr. Traub may be contacted at
rtraub@tlsslaw.com
Understanding California’s Pure Comparative Negligence Law
November 13, 2023 —
Yaron Shaham - Kahana FeldIn order for a plaintiff to prove a defendant is negligent, the plaintiff must prove the defendant (1) owed a duty to plaintiff, (2) breached that duty, (3) the breach was the actual and proximate cause of plaintiff’s injury, and (4) the resulting monetary damage. However, for both plaintiffs and defendants it is not an all or nothing game in California. This is because California is a pure Comparative Negligence state.
California’s Comparative Negligence law provides that even if a plaintiff is deemed 99% at fault, the plaintiff can still recover 1% in damages from a defendant. Thus, even if a plaintiff is deemed to be more than 50% (or even 99%) at fault for the incident, the plaintiff could still recover some monetary amount, or the defendant will still have to pay plaintiff, depending on how you see it. In most instances, a jury decides what percentage of fault to assign to each party.
Just as a plaintiff must prove he/she/its negligence case against a defendant, if the defendant claims plaintiff was partially responsible for the incident, the defendant must prove plaintiff was also negligent and said negligence contributed to plaintiff’s injuries. The total amount of monetary responsibility distributed among all defendants and plaintiffs must equal 100%. As crazy as it may sound, a plaintiff found to be 99.9% at fault, is still entitled to recover 0.01% from a defendant in California.
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Yaron Shaham, Kahana FeldMr. Shaham may be contacted at
yshaham@kahanafeld.com
Massachusetts Court Holds Statute of Repose Bars Certain Asbestos-Related Construction Claims
April 17, 2019 —
Timothy J. Keough & Rochelle Gumapac - White and Williams LLPIn Stearns v. Metropolitan Life Insurance Company, the Massachusetts Supreme Judicial Court (SJC) addressed whether the six-year statute of repose for improvements to real property applies to long-tail tort claims, such as those caused by exposure to asbestos. Reasoning that the language of § 2B is clear, unambiguous and unequivocal, the SJC held that Mass. Gen. Laws. c. 260 § 2B does in fact bar all tort claims arising out of a deficiency or neglect in the design, planning, construction or general administration of an improvement to real property filed after the expiration of the six-year repose period. Additionally, the court affirmed that the time limitations imposed by the statute of repose may not be tolled for any reason six years after either the opening of the improvement for use or the owner taking possession of the improvement for occupation upon substantial completion, whichever may occur first.
Reprinted courtesy of
Timothy J. Keough, White and Williams LLP and
Rochelle Gumapac, White and Williams LLP
Mr. Keough may be contacted at keought@whiteandwilliams.com
Ms. Gumapac may be contacted at gumapacr@whiteandwilliams.com
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Unfortunate Event Test Leads to Three Occurrences
December 02, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe Second Circuit affirmed the finding of three occurrences in a highway accident after applying the unfortunate event test. Nat'l Liability & Fire Ins. Co. v. Itzkowitz, 2015 U.S. App. LEXIS 16387 (2nd Cir. Sept. 15, 2015).
A dump box attached to a dump truck struck and damaged an overpass. The dump box then separated from the truck and landed in the right lane of the highway. Some thirty seconds to five minutes later, the Itzkowitz vehicle struck the detached dump box. Then, at some point between a few seconds and twenty minutes later, the Hershkowitz (second) vehicle struck the dump box.
The insurer for the dump truck owner, National, argued there was one accident, or at most two separate accidents, under the policy. The district court found there were three occurrences and National appealed.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
BLOK, a Wired UK Hottest 100 Housing Market Startup, Gets Funding from a Renowned Group of Investors
October 11, 2017 —
Aarni Heiskanen - AEC BusinessBlok, listed as one of the Hottest 100 European Startups by Wired UK, has secured several renowned investors to promote the company’s product development and marketing in its second round of financing.
The Helsinki-based startup company aims to revolutionize the housing market through automation and artificial intelligence. Blok believes that the future of the housing market will be on the Internet, where intelligent technology is opening up new opportunities for disrupting traditional business models.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aarni@aepartners.fi