Challenging a Termination for Default
September 23, 2024 —
David Adelstein - Florida Construction Legal UpdatesNo contractor wants to be terminated for default. It is the harshest contractual recourse. It is a recourse that has implications, particularly in the public sector. However, a party needs to be in a position to support the basis of the termination for default, and the terminated party, in most instances, should not be in a position to imply accept the basis of the default. This applies regardless of the project.
In the federal context: “When a contractor challenges a default termination, the government bears the burden of establishing the validity of the termination.” Sergent’s Mechanical Systems, Inc. v. U.S., 2024 WL 4048175, *7 (Fed.Cl. 2024) (internal quotation and citation omitted). Once the government establishes the default, “the contractor bears the burden of establishing that the default was excused by fault of the government.” Id. at *8 (internal quotation and citation omitted).
Relevant considerations as to whether the contractor is in default include the contractor’s failure to meet contract specifications or the required schedule. Sergent’s Mechanical Systems, supra, at *8. “[T]here is ‘a requirement that the contractor give reasonable assurances of performance in response to a validly issued cure notice.” Id. (internal quotation and citation omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Traub Lieberman Partner Michael Logan and Associate Christian Romaguera Obtain Voluntary Dismissal in Favor of Construction Company Under the Vertical Immunity Doctrine
June 21, 2024 —
Christian Romaguera - Traub LiebermanIn a lawsuit filed in Orange County, Traub Lieberman Partner Michael Logan and Associate Christian Romaguera achieved a voluntary dismissal in favor of their Client, a construction company. The Plaintiff claimed that he was seriously and permanently injured, and demanded $1,000,000.00. The Plaintiff turned out to be an employee of our Client’s subcontractor, and the Plaintiff received worker’s compensation benefits from his employer, the subcontractor. Under Florida Statute § 440.11(1), “The liability of an employer . . . shall be exclusive and in place of all other liability, including vicarious liability, of such employer to any third-party tortfeasor and to the employee . . .” When a subcontractor provides workers’ compensation benefits to its injured employee, workers’ compensation immunity would not only apply to the subcontractor but to the general contractor as well. This is also known as “vertical immunity.” The Traub Lieberman team filed a detailed motion and memorandum of law to argue its case, and the Plaintiff voluntarily withdrew the claim against the Client just before that motion was set to be argued before the Judge.
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Christian Romaguera, Traub LiebermanMr. Romaguera may be contacted at
cromaguera@tlsslaw.com
Float-In of MassDOT Span Sails, But Delay Dispute Lingers
December 08, 2016 —
Johanna Knapschaefer – Engineering News-RecordThe Massachusetts Dept. of Transportation and a contracting team are in discussions regarding fabrication issues that caused a two-year delay in the completion of a key crossing between Quincy and Weymouth. The full completion of the $244-million Fore River Bridge replacement, originally slated for Jan. 5, 2017, is now projected for February 2019.
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Johanna Knapschaefer, Engineering News-RecordENR may be contacted at
enr.com@bnpmedia.com
2018 Spending Plan Boosts Funding for Affordable Housing
April 11, 2018 —
Emily Bias – Gravel2Gavel Construction & Real Estate Law BlogOn March 23, President Trump signed into law the Consolidated Appropriations Act, 2018, a $1.3 trillion spending package that includes a 12.5% increase in low-income housing tax credit allocations over the next four years, along with funding increases for several affordable housing programs. This is welcome news to affordable housing developers who have been facing funding gaps as a result of reductions in the corporate tax rate under the Tax Cuts and Jobs Act enacted in late 2017, which led to reduced pricing from equity investors.
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Emily Bias, Pillsbury Winthrop Shaw Pittman LLPMs. Bias may be contacted at
emily.bias@pillsburylaw.com
Tennessee Looks to Define Improvements to Real Property
January 27, 2020 —
Lian Skaf - The Subrogation StrategistFor subrogation practitioners dealing with an installation-based statute of repose, knowing what is an improvement to real property is the first battle in what can, but does not have to be, a long fight. Like many other states, Tennessee’s statute of repose bars claims based on improvements to real property. Tennessee’s statute of repose runs four years after substantial completion of the improvement. See Tennessee Code Ann. § 28-3-202. In the case of Maddox v. Olshan Found. Repair & Waterproofing Co. of Nashville, L.P., E A, 2019 Tenn.App. LEXIS 464, 2019 WL 4464816, the Court of Appeals of Tennessee examined whether or not the work done by the defendant, Olshan Foundation Repair & Waterproofing Co. of Nashville, L.P., E.A. (Olshan) — which addressed bowing walls, cracks in the foundation and walls and water intrusion — qualified as improvements to real property for the purposes of the statute of repose. The court held that the work by Olshan essentially amounted to repairs, and did not qualify as improvements to real property.
In Maddox, the plaintiff, Rachel Maddox (Maddox), noticed cracking in her home in 2005 and hired Olshan to assess the issue and conduct necessary repairs. Olshan made several recommendations and the parties agreed on Olshan’s proposal for the price of $27,000. From their initial work in 2005 until late 2011, Olshan visited the property several times to address ongoing structural issues with the home. Eventually, eight months after Olshan told Maddox they could not fix the house and failed to return her phone calls, Maddox filed suit, alleging fraud against the company.
After a three-day bench trial, the trial court found in favor of the plaintiff for $187,000, plus $15,0000 in punitive damages. Among other holdings, the court rejected Olshan’s statute of repose defense. Olshan appealed, raising the statute of repose issue again.
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Lian Skaf, White and Williams LLPMr. Skaf may be contacted at
skafl@whiteandwilliams.com
Florida Condo Collapse Shows Town’s Rich, Middle-Class Divide
August 04, 2021 —
The Associated Press (Terry Spencer & Freida Frisaro) - BloombergThe condo tower collapse in Surfside could exacerbate the division that already exists between the tiny Florida town’s new luxury buildings built for the global elite and those constructed decades ago for the middle class. It is already creating headaches for some small businesses.
The town has seen the construction of numerous new condos in recent years, where large oceanfront units exceeding 3,000 square feet (280 square meters) with modern amenities can fetch $10 million and up. Meanwhile, small units of 800 square feet (75 square meters) in neighboring condo buildings constructed decades ago can be had for $400,000.
Ana Bozovic, a South Florida real estate broker, said the June 24 collapse of the 40-year-old, middle-class Champlain Towers South will exacerbate this division. At least 46 people were killed and more than 90 remain missing.
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Bloomberg
Rejection’s a Bear- Particularly in Construction
December 23, 2024 —
Christopher G. Hill - Construction Law MusingsAs I read through this week’s cases published in Virginia Lawyers Weekly, I came across a case posing an interesting question. The question is, “If your bid is rejected along with everyone else’s, can you complain?” The short answer set out by the Rockingham County, Virginia Circuit Court is “No.” In the case of General Excavation v. City of Harrisonburg the Court looked at the Virginia Public Procurement Act’s bid protest provisions in Va. Code 2.2-4360 and 2.2-4364(C) in the context of General Excavation’s protest of the City’s failure to award it (or anyone else for that matter) the contract on which it was the low bidder. The controlling section of the statute allows a challenge to the award or proposed award of a contract.
In defending the action, the City of Harrisonburg argued that, because the Procurement Act waived some of the city’s sovereign immunity, it must be read strictly. The city further argued (somewhat ironically) that, because no award of the contract was given or even proposed, General Excavation could not bring suit because it would not be challenging the “proposed award or award” of a contract. Not surprisingly, the Rockingham County court held with the City and strictly construed the statute against General Excavation in finding that General Excavation did not have the standing necessary to bring suit under the statute.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
EEOC Focuses on Eliminating Harassment, Recruitment and Hiring Barriers in the Construction Industry
September 09, 2024 —
Aaron C. Schlesinger & Stephen E. Irving - Peckar & Abramson, P.C.The
Equal Employment Opportunity Commission (EEOC), whose mission is to enforce the nation’s anti-discrimination laws, released new guidelines on June 18, 2024, entitled
Promising Practices for Preventing Harassment in the Construction Industry. The guidelines are in support of its Strategic Enforcement Plan for the fiscal years 2024-2028 for combatting systemic harassment and eliminating barriers in recruitment and hiring in the construction industry. With these guidelines, the EEOC has identified harassment as an ongoing issue in the construction industry, and that immediate attention and resolution is required.
The EEOC specifically recommends that the following five core principles that it has found effective in preventing and addressing harassment be implemented by construction industry employers:
- Committed and engaged leadership;
- Consistent and demonstrated accountability;
- Strong and comprehensive harassment policies;
- Trusted and accessible complaint procedures; and
- Regular, interactive training tailored to the audience and the organization.
Reprinted courtesy of
Aaron C. Schlesinger, Peckar & Abramson, P.C. and
Stephen E. Irving, Peckar & Abramson, P.C.
Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com
Mr. Irving may be contacted at sirving@pecklaw.com
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