CDJ’s #5 Topic of the Year: Beacon Residential Community Association v. Skidmore, Owings & Merrill, et al.
December 31, 2014 —
Beverley BevenFlorez-CDJ STAFFSteven M. Cvitanovic and Whitney L. Stefko of Haight Brown & Bonesteel analyzed the Beacon decision, and discussed how it affects developers and general contractors: “On July 3, 2014, the California Supreme Court (the “Court”) came out with its decision in Beacon Residential Community Association v. Skidmore, Owings & Merrill, et al. The Beacon decision settled a long-standing dispute in California about whether design professionals such as architects and engineers owe a duty to non-client third parties. In finding that the plaintiffs in Beacon could state a claim against the architects of the Beacon project, the Court also sowed the seeds of change in the way contracts are structured between developers, architects, engineers, and even general contractors.”
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You Cannot Always Contract Your Way Out of a Problem (The Case for Dispute Resolution in Mega and Large Complex Construction Projects)
September 16, 2024 —
Lisa D. Love - The Dispute ResolverMost experienced commercial transaction and construction attorneys strive to negotiate a concisely written and well-drafted contract that addresses all scenarios and issues that creative and highly contemplative professionals can conjure. Although contracts are extremely important in construction projects, “you can’t generally contract your way out of a problem,” states Michael Loulakis, a founder of Capital Project Strategies, LLC and a nationally recognized expert on project delivery systems in complex public sector design-build projects and public-private partnership programs. Loulakis adds, “the contract certainly matters. But particularly when the losses are big, litigators prosecuting the contractors often find effective ways to argue that facts and circumstances trump the contract.” However, “the difference between the best construction projects and the worst construction projects is not the written words of the contracts but how the parties have committed to engage collaboratively and with trust to complete the project,” notes Robynn Thaxton, an attorney and consultant with Thaxton Parkinson PLLC and Progressive Design-Build Consulting, LLC and one of the leading experts in construction law and alternative procurement on a national basis.[i]
In large, complex construction projects, the need for parties to collaboratively resolve disputes is highlighted by the judicial acceptance of the “Doctrine of the Contextual Contract”[ii] to interpret construction contracts. “As construction’s increasing technological and managerial complexity came to be recognized, some common law courts began turning away from strict interpretation of language within the four corners of a contract and moving toward recognizing in the enforcement of contracts the construction industry’s own experience, customs, practices and implied conditions and duties and the factual context underlying the contract. Courts [began the journey] along the road from ‘text’ to ‘context.’”[iii] Thus, the precise wording of the contract has become less important and industry practices and other conditions provide insight for resolving disputes. Consequently, despite the specific language of any construction contract and the clear allocation of responsibilities and risks, early dispute evaluation and resolution are critical to a successful project.
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Lisa D. Love, JAMS
NYC’s Next Hot Neighborhoods Targeted With Property Funds
August 20, 2014 —
Jonathan LaMantia – BloombergNew York’s real estate world is filled with tales of ordinary people who bought property decades ago and saw values skyrocket to the millions. Seth Weissman is seeking investors to get in early on the next hot neighborhoods.
The veteran of Goldman Sachs Group Inc. (GS) and hedge fund Perry Capital LLC started CityShares, which enables participants to reap rewards from increasing apartment demand in gentrifying areas. Investors who pledge at least $100,000 to one of the program’s neighborhood-focused funds become partial owners of a group of buildings and share in the rental income. The first pool is more than halfway toward its target of $5 million, which will be used to buy properties in Brooklyn’s Bedford-Stuyvesant.
Harlem in upper Manhattan is next, with a goal of as much as $20 million. Additional funds are planned for Bushwick, Crown Heights and Sunset Park, all in Brooklyn. Renters are pushing into those more-distant areas after getting squeezed out of the borough’s waterfront communities, where leasing costs rival Manhattan’s. CityShares is the first program of its kind and offers a way to invest in burgeoning markets that are poised to grow as New York’s workforce expands, Weissman said.
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Jonathan LaMantia, BloombergMr. Lamantia may be contacted at
jlamantia1@bloomberg.net
Another Way a Mechanic’s Lien Protects You
September 14, 2020 —
Christopher G. Hill - Construction Law MusingsHere at Construction Law Musings, we have discussed mechanic’s lien law in Virginia on multiple occasions. We have discussed everything from the very picky nature of the perfection and enforcement of these liens to the changes that the Virginia General Assembly periodically makes to these requirements and how to defend against such liens.
While the steps taken and content of a Virginia mechanic’s lien will be strictly construed by the Virginia courts, when perfected properly, a mechanic’s lien can and will put you as a construction company seeking payment in a better position than if no lien were recorded. The direct benefit is that you now hold a lien on the property on which you performed work that takes a priority (read will be paid before) any mortgage or other lien on that structure. In other words, if you, the bank, or the owner seeks to sell the property through foreclosure or otherwise, mechanic’s lien holders generally get paid first. While there are exceptions to be explored with an experienced Virginia construction attorney, this is the general rule and the power of a mechanic’s lien.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
California Governor Signs SB 496 Amending California’s Anti-Indemnity Statute
June 05, 2017 —
William S. Bennett - Saxe Doernberger & Vita, P.C.The bill amends Cal. Civ. Code § 2782.8 as it applies to indemnity agreements with design professionals. The pre-existing § 2782.8 prohibited public agencies from requiring indemnity from design professionals for anything other than claims arising out of, pertaining to, or relating to the negligence, recklessness, or willful misconduct of the design professional.
Under the newly passed bill, the indemnity restrictions imposed on public agencies when contracting with design professionals will now apply to all parties contracting with design professionals for professional services (effective Jan. 1, 2018). These restrictions also apply to a party contractually imposing a defense obligation on the design professional.
The revised statute specifically identifies architects, landscape architects, professional engineers, and professional land surveyors as included within the meaning of “design professional,” however it is unclear whether that is the extent of the phrase’s meaning.
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William S. Bennett, Saxe Doernberger & Vita, P.C.Mr. Bennett may be contacted at
wsb@sdvlaw.com
State Audit Questions College Construction Spending in LA
August 17, 2011 —
CDJ STAFFA state audit of the Los Angeles Community College District found many problems with their construction spending. Their report, as described in the Los Angeles Times, found construction money spent for other purposes, such as promotional photography and public relation tours, $28.3 million spent on projects that were later cancelled, and oversight committees that provided no oversight.
Earlier this year, the LA Times ran a series of articles detailing problems with the Los Angles Community College District’s construction program. The LA Times reported that the State Controller’s audit reached many of the same conclusions.
The Community College District disputed the findings.
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$17B Agreement Streamlines Disney World Development Plans
July 22, 2024 —
Derek Lacey - Engineering News-RecordWalt Disney Parks and Resorts received the green light on $17 billion in development plans in and around Walt Disney World in Orange County, Fla,, garnering approval June 12 from the board of the Central Florida Tourism Oversight District (CFTOD) for its sprawling capital plan.
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Derek Lacey, Engineering News-Record
Mr. Lacey may be contacted at laceyd@enr.com
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Chambers USA 2019 Ranks White and Williams as a Leading Law Firm
June 03, 2019 —
David Marion, Patricia Santelle & Maulin Vidwans - White and Williams LLPChambers USA once again recognized White and Williams as a leading law firm in Pennsylvania for achievements and client service in the area of insurance law. In addition, three lawyers received individual honors - one for her work in insurance, one for his work in commercial litigation and another for his work in banking and finance.
White and Williams is acknowledged for its renowned practice offering expert representation to insurers and reinsurers across an impressive range of areas including coverage, bad faith litigation and excess liability. The firm is recognized for its notable strength in transactional and regulatory matters complemented by its adroit handling of complex alternative dispute resolutions. Chambers also acknowledged the firm's broad trial capabilities, including handling data privacy, professional liability and toxic tort coverage claims, and experience in substantial claims arising from bodily injury and wrongful death suits.
White and Williams' individual lawyer honorees include Managing Partner Patti Santelle, who is named an Eminent Practitioner in the area of insurance. Patti's considerable experience advising insurers on a broad range of coverage matters, including asbestos, environmental and toxic tort cases, coupled with her proficiency in coverage actions at the state and federal level earn her a well-regarded reputation as an "excellent lawyer."
Reprinted courtesy of White and Williams LLP attorneys
David Marion,
Patricia Santelle and
Maulin Vidwans
Mr. Marion may be contacted at mariond@whiteandwilliams.com
Ms. Santelle may be contacted at santellep@whiteandwilliams.com
Mr. Vidwans may be contacted at vidwansm@whiteandwilliams.com
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