California Courts Call a “Time Out” During COVID-19 –New Emergency Court Rules on Civil Litigation
May 04, 2020 —
Tara C. Dudum - Newmeyer Dillion“We are at this point truly with no guidance in history, law, or precedent. To say that there is no playbook is a gross understatement of the situation.”
-Chief Justice and Chair of the California Judicial Council, Tani G. Cantil-Sakauye
Seeking to sustain essential court services while balancing weighty considerations, including litigants’ due process rights, access to justice, and stringent health and safety orders, the California Judicial Council has adopted Emergency Rules in response to the ongoing coronavirus pandemic (COVID-19).
While many of the Emergency Rules focus on criminal and juvenile dependency matters, this update highlights the Emergency Rules immediately impacting civil litigation in California state courts. The following Emergency Rules remain in effect until 90 days after the Governor lifts the state of emergency or the rule is amended or repealed by the Judicial Council:
Tolling of Statutes of Limitation in Civil Actions
Effective April 6, 2020, the statutes of limitation (the time period in which to bring a claim) for all civil causes of action is tolled until such time as the rule is no longer in effect. The impact of this rule is that it provides plaintiffs with more time to bring claims and extends the time period that defendants may face legal action for alleged violations of the law.
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Tara C. Dudum, Newmeyer DillionMs. Dudum may be contacted at
tara.dudum@ndlf.com
New OSHA Fall Rules to Start Early in Minnesota
June 14, 2011 —
CDJ STAFFMinnesota has elected to implement the new OSHA rules concerning fall prevention in residential construction on June 20, well before OSHA’s September 15 deadline. Brian Johnson, reporting in Finance and Commerce, quotes Pam Perri, the executive vice president of the Builders Association of Minnesota, “this is the worst time to implement a new rule.” Ms. Perri notes “In Minnesota, education time for the residential construction industry is between November and March 1, not in the middle of the construction season.”
Mike Swanson of Rottlund Homes estimated that the new regulations would add between $200 to $500 to the cost of a house and that he felt the current safety regulations were adequate. OSHA officials are quoted that there continues “to be a high number of fall-related deaths in construction.”
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Recovering For Inflation On Federal Contracts: Recent DOD Guidance On Economic Price Adjustment Clauses
October 24, 2022 —
Amanda L. Marutzky - ConsensusDocsSince October 2020, inflation in the United States has seen its fastest increase in more than 30 years. In the last year alone, inflation has remained as high as 8.6%. This hike has impacted everything from diesel to steel. In the construction industry, the higher prices of goods and services directly affect how contractors draft their construction contracts.
The Department of Defense (DoD) has taken note of this dramatic price increase and recently issued guidance to its commanding officers and the procurement community. On May 5, 2022, DoD issued a memorandum titled “Guidance on Inflation and Economic Price Adjustments.” The stated purpose of the memo is “to assist COs to understand whether it is appropriate to recognize cost increases due to inflation under existing contracts as well as offer considerations for the proper use of EPA when entering into new contracts.” DoD’s memo responds to contractor and contracting officer concerns about the sudden and unexpected cost increases in labor and materials.
Economic Price Adjustments, or EPAs, are adjustments to a stated contract price upon the occurrence of certain contingencies. FAR 16.203-1. They are of three general types – (1) adjustments based on established prices, (2) adjustments based on actual costs of labor or material, or (3) adjustments based on cost indexes of labor or material. Id. Because EPAs allow for adjustments in a contract price, EPA clauses allow a contractor to recover unanticipated increases in its project costs. For example, FAR 52.216-4, Economic Price Adjustment-Labor and Material, authorizes a contractor to recover for increases in the cost of material or labor. Such recovery is available when costs increase more than 3%, with a maximum recovery of 10% of the original contract price. See also FAR 52.216-2 through FAR 52.216-4. These EPA clauses provide contractors with relief and protection from issues such as dramatic inflation. EPA clauses, however, are not included in all contracts.
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Amanda L. Marutzky, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs)Ms. Marutzky may be contacted at
amarutzky@watttieder.com
Industrialized Construction News 7/2022
August 15, 2022 —
Aarni Heiskanen - AEC BusinessThe
AEC Business newsletter’s Industrialized Construction edition in July featured the following news stories:
The Pros and Cons of Offsite Construction – A French Research Study
The study is titled The current use of industrialized construction techniques in France: Benefits, limits and future expectations. The authors are Emna Attouri, Zoubeir Lafhaj, Laure Ducoulombierb and Bruno Linéatte.
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Rise of the machines? For Construction, Not Yet
Matthew Thibault’s article examines the opportunities and challenges of construction robotics. Robots can improve safety and productivity, but the ROI is still unclear to many contractors.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Structural Problems May Cause Year-Long Delay Opening New Orleans School
January 29, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to the Uptown Messenger, structural issues found at Audubon Charter School’s Broadway campus in New Orleans, Louisiana, will require “selective demolition” and “could delay students’ return by as much as a full year.”
Late September of last year, “officials discovered that some of the steel supports around the stair towers were not level—some of the steel beams lean out several inches, so that the floors are not parallel.” Discovering the problem will require some demolition, according to Chris Young of Blitch Knevel architects as quoted in the Uptown Messenger: “…we’re going to have to tear down a lot of this construction to expose that steel frame to make sure that every steel beam is straight and true and not deformed.”
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Supreme Court Holds Arbitrator can Fully Decide Threshold Arbitrability Issue
March 18, 2019 —
David Adelstein - Florida Construction Legal UpdatesThe United States Supreme Court recently decided parties to a contract can agree, under the Federal Arbitration Act, an arbitrator, rather than a court, can fully resolve the initial arbitrability question. Henry Schein, Inc. v. Archer and White Sales, Inc., 2019 WL 122164 (2019). The arbitrability question is whether the dispute itself is subject to arbitration under an arbitration provision. Parties that do not want to arbitrate try to circumvent this process by filing a lawsuit and asking the court to determine the threshold arbitrability question.
In Henry Schein, Inc., the contract at-issue provided:
This Agreement shall be governed by the laws of the State of North Carolina. Any dispute arising under or related to this Agreement (except for actions seeking injunctive relief and disputes related to trademarks, trade secrets, or other intellectual property) shall be resolved by binding arbitration in accordance with the arbitration rules of the American Arbitration Association. The place of arbitration shall be in Charlotte, North Carolina.
The plaintiff in this case asserted a claim for injunctive relief (among other claims) and argued that, therefore, the dispute is not subject to arbitration based on the exception in the provision. The initial, threshold issue became whether the dispute was subject to arbitration and, importantly, who decides this issue. The Court further looked at whether a trial court can resolve this issue under the “wholly groundless” exception, i.e.,the court can decide the issue if the argument for arbitration is wholly groundless.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
New York Developer gets Reprieve in Leasehold Battle
March 19, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to The Real Deal, a “Manhattan Supreme Court judge granted an injunction in favor of Tribeca Mews developer Thurcon Properties, which is fighting to keep the leasehold on several adjacent parcels in connection with a certificate of occupancy.”
In 2013, Thurcon Properties was sued by the condo board, who claimed “the certificate of occupancy was pushed back at the building due to a number of construction defects.” The Real Deal further reported that the condo board “claimed the developers sold about 10 units to an outside buyer, and took some of the proceeds for themselves.”
Recently, a judge “ordered Feldman Heritage, owner of the ground lease at 125 Church and several adjacent sites, to appear in court on April 30,” because he wants the lease owner “to show why Thurcon should not be given the chance to cure the alleged lease default.”
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No Coverage for Defects in Subcontrator's Own Work
February 11, 2019 —
Tred R. Eyerly - Insurance Law HawaiiDamage to the concrete floor installed by the insured subcontractor was not property damage and thus not covered under the insured's CGL policy. Kalman Floor Co. v. Old Republic Gen. Ins. Corp., 2019 U.S. Dist. LEXIS 3319 (D. Colo Jan. 8, 2019).
In 2007, Kalman Floor Co. was subcontracted to construct over 158,000 square feet of concrete flooring for a cold storage facility. The concrete floor was completed in late 2008. In late 2009, the contractor notified Kalman that pockmarks, or "pop-outs," were visible on the concrete flooring. The only damage to tangible property in the facility caused by the pop-outs was the concrete flooring itself.
On January 31, 2009, Old Republic issued a general liability policy to Kalman for one year. The policy excluded for damage to "your work," defined as "work or operations performed by you or on your behalf." Old Republic denied coverage for damage to the concrete floor. Kalman sued, seeking a declaration that the exclusions did not bar coverage.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com