Bar Against Forum Selection Clauses in Construction Contracts Extended to Design Professionals
October 28, 2015 —
Garret Murai – California Construction Law BlogIt’s a tactic as old as war itself.
You can often gain a strategic advantage by selecting the location of battle.
The same is true in litigation.
But as the next case illustrates, when it comes to disputes between contractors (and design professionals), it isn’t always the combatants who dictate where the battle will be fought.
Vita Planning and Landscape Architecture, Inc. v. HKS Architects, Inc.
In Vita Planning and Landscape Architecture, Inc. v. HKS Architects, Inc., Case No. A141010, California Court of Appeals for the First District (September 25, 2015), Texas architecture firm HKS Architects, Inc. (“HKS”) was hired to provide architectural services. HKS’ design service agreement included a Texas forum selection clause which provided:
As a condition precedent to the institution of any action [or] lawsuit all disputes shall be submitted to mediation” and “[a]ll claim , disputes, and other matters in question between the parties arising out of or related to the Agreement . . . be resolved by the . . . courts in . . . Texas.”
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com
The Choice Is Yours – Or Is It? Anti-Choice-of-Laws Statutes Applicable to Construction Contracts
October 03, 2022 — Tiffany Raush & Tanya McGill - ConsensusDocs
During contract negotiations and review, the parties make choices about what risks they are willing to accept and at what cost. But one often overlooked choice—the choice of law applicable to the contract—can undermine carefully negotiated construction contracts and expose contractors to risks they never intended to accept.
Choice-of-law provisions are standard provisions in most contracts. These provisions allow the parties to the contract to decide which state’s laws will apply to their contract. Often, choice-of-law in the construction contract is the law of the state where the project is located and there will be no issue. But, if the project is located in an unfamiliar, the owner or prime contractor may prefer the laws of the state where the owner or prime contractor is primarily located over the laws of the state where the project is located.
Generally, most states will enforce the parties’ choice of law in a contract. But that may not be the case for construction contracts. States like Texas, California, New York, Florida, Louisiana, and others may prohibit parties from agreeing to the application of another state’s law for construction projects in their states.
Reprinted courtesy of Tiffany Raush, Jones Walker LLP (ConsensusDocs) and Tanya McGill, University of Mississippi School of Law Student, 2023 Graduate (ConsensusDocs)
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Traub Lieberman Attorneys Lisa M. Rolle and Vito John Marzano Secure Dismissal of Indemnification and Breach of Contract Claims Asserted against Subcontractor
November 24, 2019 — Lisa M. Rolle & Vito John Marzano - Traub Lieberman Perspectives
On August 7, 2019, TLSS Partner Lisa M. Rolle and associate Vito John Marzano obtained a dismissal of all claims on behalf of their client, the subfloor subcontractor at the worksite, in a severed action filed in the Supreme Court of the State of New York, County of Kings.
In April 2014, plaintiff commenced suit against several defendants, including the general contractor, after he sustained an injury when he fell through temporary plywood while installing a staircase at a worksite in Brooklyn. In May 2018, plaintiff filed a note of issue and certified the matter as ready for trial. Immediately thereafter, the general contractor initiated a second third-party action against the subcontractor seeking common-law and contractual indemnification and breach of contract. The Court subsequently granted Traub Lieberman’s motion to sever the second third-party action and instructed the general contractor to file a new action.
After the general contractor recommenced suit, Traub Lieberman, on behalf of its client, the subcontractor, immediately moved to dismiss for failure to state a cause of action. In relevant part, Traub Lieberman pointed to the deposition testimony of the general contractor’s principal to establish that the subcontractor had finished its work on the permanent subfloor no less ten months to over a year prior to plaintiff’s accident, and that the subfloor required no alteration, repair or maintenance prior to or as a result of plaintiff’s accident. Further, the general contractor’s testimony pointed to work performed by another subcontractor that directly resulted in plaintiff’s injuries. It was also brought to the Court’s attention that plaintiff had testified that he fell through a temporary plywood floor, and that the subcontractor had only installed a permanent subfloor.
Reprinted courtesy of Lisa Rolle, Traub Lieberman and Vito John Marzano, Traub Lieberman
Ms. Rolle may be contacted at lrolle@tlsslaw.com
Mr. Marzano may be contacted at vmarzano@tlsslaw.com
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Latest Updates On The Coronavirus Pandemic
March 30, 2020 — ENR Editors - Engineering News-Record
Coronavirus has struck a heavy blow against the world economy as it forces countries into lockdown with "closed for business" signs, hollows out the tourism, travel and hospitality sectors, turns out the lights on business gatherings and events, sends employees home to work and drives the stock market into a dizzying tumble.
ENR Editors
ENR may be contacted at ENR.com@bnpmedia.com
Read the full story for ENR's ongoing reporting, analysis and commentary on construction sector developments
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Privacy In Pandemic: Senators Announce Covid-19 Data Privacy Bill
May 11, 2020 — Kyle Janecek & Jeffrey Dennis – Newmeyer Dillion
"Data! Data! Data!. . . I can't make bricks without clay." This classic statement from Sherlock Holmes in The Adventure of the Copper Beeches takes on a new meaning in the COVID-19 pandemic. With the plans to begin contact tracing the spread of the COVID-19 pandemic slowly moving towards the forefront, a valid and important issue presents itself: how do we treat and protect the data we so desperately need to trace, track, and address the pandemic? U.S. Senators Wicker, Thune, Moran, and Blackburn introduced a possible solution to this problem with the COVID-19 Consumer Data Protection Act, as announced on April 30, 2020. So what does the Act entail? What information is protected? What action would businesses need to take towards individuals, such as consumers or even employees, in order to comply with this new legislation?
WHAT IS THE COVID-19 CONSUMER DATA PROTECTION ACT?
The Act is meant to address the concern regarding data collection and privacy due to large companies, like Google and Apple, adjusting the software within their devices to facilitate digital contact tracing. The Act can be broken up into three parts - the treatment of information; the privacy notice requirements; and the transparency requirements.
First, the Act prohibits the collection, processing, or transfer of certain categories of data without notice and the affirmative express consent of the individual, in order to:
- Track the spread of COVID-19,
- Trace the spread of COVID-19 through contact tracing, or
- Determine compliance with social distancing guidelines without the requisite notice to individuals and their express consent.
To accomplish this, the Act also restricts entities in their ability to collect excessive information, stating that an entity cannot collect information beyond what is reasonably necessary to conduct any of the three COVID-19 related purposes listed in the statute. The entity must also provide reasonable administrative, technical, and physical data security policies and practices to protect the information collected. Furthermore, in the event that the entity stops using the information for any of the three COVID-19 purposes, it must delete or de-identify the information it has collected.
Next, the Act describes the requirements for notice to individuals. In order to legally collect, process or transfer the information, the entity needs to provide the consumer with prior notice of the purpose, processing, and transfer of the data through their privacy policy within 14 days of the enactment of the law. This policy would have to:
- Disclose the consumer's rights in a clear and conspicuous manner prior to or at the point of collection,
- Be available in a clear and conspicuous manner to the public,
- Include whether the entity will transfer any of the information it collects in order to track or trace COVID-19 or determine compliance with social distancing,
- Describe its data retention policy, and
- Generally describe its data security measures.
Notably, many of these are already requirements common to many privacy policies, including the disclosure regarding the transfer of an individual's information.
In addition, an individual must give their affirmative express consent to such collection, processing and transfer. In other words, an individual must "opt-in" to having their information collected. This would be done through a checked box or electronic signature, as the law prohibits entities from inferring consent through a failure by the individual to take an action stopping the collection. Furthermore, the individual would also need the ability to expressly withdraw their consent, with the entity then having to cease collection, processing, or transfer of the information within 14 days of the revocation. In essence, due to the restriction on transferal, this may result in businesses opting to delete or de-identify data upon a revocation.
Finally, the entity would have to abide by certain reporting and transparency requirements, namely a monthly public report stating how many individuals had information collected, processed or transferred, and describing the categories of the data collected, processed or transferred by the entity and why. This is akin to the California Consumer Privacy Act's treatment of categories of information, though it would require this information to be released on an ongoing, monthly basis.
WHAT DATA IS COVERED?
Notably, the Act only affects a very limited scope of data. The Act covers geolocation data (exact real-time locations), proximity data (approximated location data), and Personal Health Information (any genetic/diagnosis information that can identify someone). This could cover information like Bluetooth communication or real-time tracking based on a cell phone's geolocation features. Notably, Personal Health Information does not include any information that may be covered under HIPAA or the broader categorization of "Biometric" data (i.e. retinal scans, finger prints, etc). Furthermore, and more generally, "publicly available information" is excluded, which includes information from telephone books or online directories, the news media, "video, internet, or audio content" as well as "websites available to the general public on an unrestricted basis." The latter of which potentially would push any and all information made available through social media (i.e. Facebook or Twitter) into the definition of "publicly available information."
HOW IS IT ENFORCED?
Generally, the law would be enforced by the FTC, under the provisions regarding unfair or deceptive acts or practices, similar to other enforcement actions arising out of privacy policies. Notwithstanding, state attorney generals may also bring actions to enforce compliance and obtain damages, civil penalties, restitution, or other compensation on behalf of the residents of the state.
WHAT SHOULD MY COMPANY DO?
If your entity plans on collecting information for tracking COVID-19, measuring social distancing compliance, or contact tracing, it is advisable to include language in your privacy policy now. This could be as simple as adding an additional provision within your privacy policy stating that the entity will retain information to conduct one of the three COVID-19 purposes as laid out in the statute. In addition, this also means that should the entity collect and use employee information for contact tracing, tracking the spread of COVID-19 or ensuring compliance with social distancing measures, it will need to disclose some of the specifics of that process to the employees and have them opt-in for the process. Finally, for contact tracing purposes, any individual that shares their diagnosis will have to opt-in for the entity to legally collect, process, and transfer that information to others.
While the time to reach compliance is unknown, it is more important than ever to form a compliance plan for privacy legislation if you do not already have a plan in place. If you decide to prepare with us, our firm has created a 90 day California Consumer Privacy Act compliance program (which can be expedited) where our team will collaborate with you to determine a scalable, practical, and reasonable way for you to meet your needs, and we will provide a free initial consultation. For further inquiries or questions related to COVID-19, you can consult with a Task Force attorney by emailing NDCovid19Response@ndlf.com or contacting our office directly at 949-854-7000.
Kyle Janecek is an associate in the firm's Privacy & Data Security practice, and supports the team in advising clients on cyber related matters, including policies and procedures that can protect their day-to-day operations. For more information on how Kyle can help, contact him at kyle.janecek@ndlf.com.
Jeff Dennis (CIPP/US) is the Head of the firm's Privacy & Data Security practice. Jeff works with the firm's clients on cyber-related issues, including contractual and insurance opportunities to lessen their risk. For more information on how Jeff can help, contact him at jeff.dennis@ndlf.com.
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Construction Problem Halts Wind Power Park
November 13, 2013 — CDJ STAFF
Engineers have yet to determine why a blade on a wind turbine broke at a wind power plant in Michigan, but as part of their investigation they are halting work on the final 10 turbines. The already completed 60 turbines have been taken out of operation. As a result, the Echo Wind Park is no longer generating power.
Scott Simons, a spokesperson for the project, said “we’re not going to put anyone or anything at risk until we get to the bottom of this.” However, Dennis Buda, the project manager, attributed the broken blade to a manufacturing defect. Construction was planned to end in November.
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New Highway for Olympics Cuts off Village near Sochi, Russia
February 07, 2014 — Beverley BevenFlorez-CDJ STAFF
A new highway costing $635 million was built in Sochi, Russia to support this month’s Winter Olympic Games—but the “shining” highway has cut off residents of the Village of Akhtyr, according to The Spokesman-Review. The online publication reports that while the Olympics will showcase the “luxury malls, sleek stadiums and high-speed train links, thousands of ordinary people in the Sochi area put up with squalor and environmental waste: villagers living next to an illegal dump filled with Olympic construction waste, families whose homes are sinking into the earth, city dwellers suffering chronic power cuts despite promises to improve electricity.”
One of the Sochi residents told KPAX News that what was once a “15-minute walk to get the bus to work has become a two-hour, cross-country trek. Military guards block their way to the rickety footbridge they used to use.” Furthermore, KPAX News claimed, “Heavy construction and traffic have chewed up the road through town and turned it into a dust bowl.”
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Forget Palm Springs—Santa Fe Is the New Mecca for Modern Architecture
November 19, 2021 — James Tarmy - Bloomberg
The writer Helen Thompson had been a lifelong visitor to Santa Fe, but when she arrived at Georgia O’Keeffe’s home at Ghost Ranch 30 years ago, “I was shocked,” Thompson says. “Everything there was modern: Her furniture was modern; her light fixtures were modern; her art, of course, was modern. And in this rustic setting, the landscape is so powerful, it was all so elemental. That shock stayed with me.”
It was an experience, Thompson says, that led her to the conclusion that Santa Fe, long understood as a city filled with vernacular, decorative architecture, was ripe for a rethinking. “I kept wondering, why does something like that look so right here?” she says. “The landscape is so distinctive, and so not-modern, and yet these very precise pieces of furniture looked so right.”
Now, with her new book Santa Fe Modern: Contemporary Design in the High Desert (Monacelli, $50), Thompson has cracked the code. “Modern ideas are site-specific, and tied into what’s right for the landscape and the environment,” she says. Naturally, she continues, this conceptual framework works well in a place like New Mexico, where the dramatic horizon meets an even more dramatic sky. Read the court decision
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