Disappearing Data: Avoid Losing Electronic Information to Avoid Losing the Case
February 01, 2022 —
Daniel C. Wennogle & Jennifer Knight Lang - Construction ExecutiveIt happens: A contractor on a delayed project ends up in litigation over liquidated damages, but the key communications regarding delays and approvals were sent and received by the project manager on a mobile device using text messages and personal email accounts. Unfortunately, the project manager left the company a year ago on bad terms and has changed phones. The information that would serve to mitigate the contractor’s liability has disappeared. With better awareness and policies for capturing and managing electronic information, this is avoidable.
Proactive and effective management of electronically stored information on construction projects can not only reduce costs and discovery disputes should litigation arise but can also provide critical evidence in reducing liability exposure in such disputes. The Federal Rules of Civil Procedure (as well as most state rules, which often mirror federal rules), provide for sanctions if a party fails to preserve electronically stored information (ESI) that should have been preserved in anticipation of litigation but is lost due to the failure to take reasonable steps to preserve it.
Even in arbitration, where discovery and disclosure obligations are often more limited than in the court setting, preservation of ESI can help strengthen claims and defenses, avoiding accusations of spoliation that can derail a case. Arbitrators can also fashion appropriate sanctions for destruction of relevant evidence, not to mention the impact that apparent spoliation can have on a party’s credibility.
Reprinted courtesy of
Daniel C. Wennogle & Jennifer Knight Lang, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Ms. Lang may be contacted at jennifer.lang@moyewhite.com
Mr. Wennogle may be contacted at daniel.wennogle@moyewhite.com
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Unpredictable Opinion Regarding Construction Lien (Reinstatement??)
January 17, 2023 —
David Adelstein - Florida Construction Legal UpdatesHere comes the discussion of an appeal I was intimately involved in dealing with a construction lien. See Suntech Plumbing and Mechanical Corp. v. Bella Isla, LLC, 2022 WL 14672765 (Fla. 3d DCA 2022). Unfortunately, it was a losing result on my end but not a losing result to the issue at-hand. You should ask what in the world does this mean. I will tell you.
Here is the fact pattern. A subcontractor files a construction lien foreclosure lawsuit against an owner for unpaid contract balance. In the same lawsuit, the subcontractor sues the general contractor for breach of contract and unjust enrichment associated with an approximate three-year delay on a construction project. The project was scheduled to be completed in 2019. It was not. The project was pushed into COVID and into 2022. (The subcontractor did not sue the general contractor for amounts subject to the lien foreclosure claim.) The general contractor, assuming the defense of the owner, moved to stay the lawsuit pending the outcome of arbitration based on an arbitration provision in the subcontract. The subcontractor did not dispute the arbitration provision, but argued that arbitration provision should not extend to the owner that was (a) not bound by the subcontract, (b) would not be a party to the arbitration, and (c) the amounts pled against the general contractor did not include the amounts subject of the lien foreclosure lawsuit. At a minimum, the lawsuit should be stayed, not dismissed. Nevertheless, the trial court dismissed the entire lawsuit in an order that states that it is a final order with language that the lien may be “reinstated” after the outcome of the arbitration (that the owner is not a party to).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
The Cost of Overlooking Jury Fees
February 07, 2022 —
Nicholas B. Brummel, Arezoo Jamshidi & Lawrence S. Zucker II - Haight Brown & BonesteelOn January 21, 2022, the Court of Appeal, Second Appellate District, Division Two (Los Angeles), certified for publication a 2-1 decision that serves as an important reminder to California attorneys to post jury fees in a timely manner and to use appropriate channels and consult with appellate counsel in seeking appellate relief from contested rulings.
In TriCoast Builders, Inc. v. Nathaniel Fonnegra, (B303300, Jan. 21, 2022), a construction defect dispute, the trial court set a jury trial at defendant’s request. However, on the day trial was set, defendant waived jury trial. Plaintiff objected and made an oral request for jury trial. The trial court denied the request finding that plaintiff waived its right to a jury trial by failing to timely post jury fees. The matter proceeded to a bench trial, and the court ruled in favor of defendant. Plaintiff appealed, having failed to seek a writ of mandate, which the appellate court noted “is the proper remedy to secure a jury trial allegedly wrongfully withheld.”
Reprinted courtesy of
Nicholas B. Brummel, Haight Brown & Bonesteel,
Arezoo Jamshidi, Haight Brown & Bonesteel and
Lawrence S. Zucker II, Haight Brown & Bonesteel
Mr. Brummel may be contacted at nbrummel@hbblaw.com
Ms. Jamshidi may be contacted at ajamshidi@hbblaw.com
Mr. Zucker may be contacted at lzucker@hbblaw.com
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US Supreme Court Orders All Mountain Valley Gas Line Work to Proceed
August 14, 2023 —
Debra K. Rubin - Engineering News-RecordIn a ruling without explanation in response to an emergency appeal by the project developer, the U.S. Supreme Court on July 27 said work to complete the Mountain Valley gas pipeline can proceed. The decision follows an order earlier this month by the Richmond, Va., appeals court to halt restart of work on the much-litigated and delayed $6.6-billion, 303-mile natural gas pipeline in Virginia and West Virginia, after new lawsuits filed by opponent groups.
Reprinted courtesy of
Debra K. Rubin, Engineering News-Record
Ms. Rubin may be contacted at rubind@enr.com
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Construction Executives Expect Improvements in the Year Ahead
November 12, 2019 —
Joe Galvin - Construction ExecutiveVistage’s recent survey captured responses from 1,463 CEOs of small and mid-sized businesses in a variety of industries across the United States. Included in this national data is 224 responses from CEOs in the construction industry, a reliable base for comparing the sentiment of CEOs in construction to the national base.
Each quarter, the survey captures:
- CEO sentiment on the current and future state of the national economy;
- Expectations for revenue and profitability; and
- Expansion plans, specifically hiring and investments.
CONSTRUCTION CEOS ARE OPTIMISTIC ABOUT THE FUTURE
When asked about revenue expectations, 65% of CEOs in construction reported projections for increased revenues in the coming year, which is on par with the national results. Additionally, 61% expect their profitability to improve over the next 12 months, notably higher than the national figure of 54%.
Reprinted courtesy of
Joe Galvin, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Supreme Court Declines to Address CDC Eviction Moratorium
August 04, 2021 —
Zachary Kessler, Amanda G. Halter & Adam Weaver - Gravel2Gavel Construction & Real Estate Law BlogIn a closely watched 5-4 decision, the U.S. Supreme Court sided against the challengers to the eviction moratorium issued by the Centers for Disease Control and Prevention (CDC), keeping a stay in place that leaves the eviction ban in effect through July 31. The CDC has indicated it will not renew the eviction moratorium when it expires at the end of the month.
The CDC’s eviction moratorium was first adopted at the expiration of the CARES Act’s limited eviction protection for federally funded rental properties. The more broadly applicable order, extended under both the Trump and Biden administrations, prohibited landlords from evicting tenants unable to pay due to the financial impacts of the COVID-19 pandemic, when the tenant confirmed in writing that they had done their best to make any partial payment, were at risk of becoming homeless or having to move into unsafe group housing, and earn below a set income limit. The CDC extended the order most recently on June 24. In announcing that one-month extension, CDC director Dr. Rochelle Walensky indicated that it would be the order’s final extension.
Reprinted courtesy of
Zachary Kessler, Pillsbury,
Amanda G. Halter, Pillsbury and
Adam Weaver, Pillsbury
Mr. Kessler may be contacted at zachary.kessler@pillsburylaw.com
Ms. Halter may be contacted at amanda.halter@pillsburylaw.com
Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com
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Colorado House Bill 17-1279 – A Misguided Attempt at Construction Defect Reform
March 29, 2017 —
David McClain - Colorado Construction LitigationOn March 17th, House Bill 17-1279, concerning the requirement that a unit owners’ association obtain approval through a vote of unit owners before filing a construction defect action, was introduced and assigned to the House State, Veterans, and Military Affairs Committee. The bill is currently scheduled for its first committee hearing on March 29th, at 1:30 in the afternoon. While, on its face, this appears to be a step in the right direction towards instituting “informed consent” before an HOA can file a construction defect action, the bill actually restricts the ability of developer to include more stringent requirements in the declaration of covenants, conditions, and restrictions for an association, thereby lowing the threshold of “consent” required to institute an action.
House Bill 17-1279 would amend C.R.S. § 38-33.3-303.5 to require an association’s executive board to mail or deliver written notice of the anticipated commencement of a construction defect action to each unit owner and to call a meeting of the unit owners to consider whether to bring such an action. Any construction professional against which a claim may attend the unit owners’ meeting and have an opportunity to address the unit owners and may include an offer to remedy any defect in accordance with C.R.S. § 13-20-803.5(3). The conclusion of the meeting would initiate a 120-day voting period, during which period the running of any applicable statutes of limitation or repose would be tolled. Pursuant to this bill, an executive board may only institute a construction defect action only if authorized by a simple majority of the unit owners, not including: 1) any unit owned by any construction professional, or affiliate of a construction professional, involved in the design, construction, or repair of any portion of the project; 2) any unit owned by a banking institution; 3) any unit owned in which no defects are alleged to exist, and/or 4) any unit owned by an individual deemed “nonresponsive.”
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David M. McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
Condo Collapse Spurs Hometown House Member to Demand U.S. Rules
July 19, 2021 —
Parker Purifoy - BloombergA Florida congresswoman called for stricter federal building-safety standards on Thursday to prevent a repeat of the condominium collapse that killed at least 60 people and left dozens more missing in her state.
Representative Debbie Wasserman Schultz, a Democrat whose congressional district includes the condo development in Surfside, said more buildings could collapse or break down as they age and the federal government needed to have a “minimum floor” of safety requirements.
“We do have standards that are tangentially related at the federal level and so I do think it’s important to look into what standards should be adopted at the national level, at a minimum, because this is a tragedy of epic proportions,” she said on Bloomberg Television’s “Balance of Power” with David Westin. “We can’t allow this to ever happen again.”
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Parker Purifoy, Bloomberg