A Recap of the Supreme Court’s 2019 Summer Slate
September 16, 2019 —
Anthony B. Cavender - Gravel2GavelAs usual, the last month of the Supreme Court’s term generated significant rulings on all manner of cases, possibly presaging the new directions the Court will be taking in administrative and regulatory law. Here’s a brief roundup:
An Offshore Dispute, Resolve – Parker Drilling Management v. Newton
On June 10, 2019, the Court held, in a unanimous ruling, that, under federal law, California wage and hour laws do not apply to offshore operations conducted on the Outer Continental Shelf (OCS). Newton, the plaintiff, worked on drilling platforms off the coast of California, and alleged that he was not paid for his “standby time” which is contrary to California law if not federal law. He filed a class action in state court, which was removed to federal court, where it was dismissed on the basis of a 1969 decision of the U.S. Court of Appeals for the Fifth Circuit, which held that state law applies on the OCS only to the extent that it is necessary to use state law to fill a significant gap or void in federal law, and this is not the case here. On appeal to the Ninth Circuit, that court disagreed with the Fifth Circuit, and ruled that state law is applicable on the OCS whenever it applies to the matter at hand. The Supreme Court, in an opinion written by Justice Thomas, conceded that “this is a close question of statutory interpretation,” but in the end the Court agreed with the argument that if there was not a gap to fill, that ended the dispute over which law applies on the Outer continental Shelf. This ruling, recognizing the preeminent role that federal law plays on the OCS, may affect the resolution of other offshore disputes affecting other federal statutes.
Preemption Prevention – Virginia Uranium, Inc. v. Warren. et al.
On June 17, 2019 the Court decided important cases involving federal preemption and First Amendment issues. In a 6-to-3 decision, the Court held that the Atomic Energy Act does not preempt a Virginia law that “flatly prohibits uranium mining in Virginia”—or more precisely—mining on non-federal land in Virginia. Virginia Uranium planned to mine raw uranium from a site near Coles, Virginia, but acknowledging that Virginia law forbade such an operation, challenged the state law on federal preemption grounds, arguing that the Atomic Energy Act, as implemented by the Nuclear Regulatory Commission, preempts the ability of the state to regulate this activity. However, the majority, in an opinion written by Justice Gorsuch, notes that the “best reading of the AEA does not require us to hold the state law before us preempted,” and that the1983 precedent that Virginia Uranium cites, Pacific Gas & Electric Company v. State Energy Resources Conservation and Development Commission, can easily be distinguished. Justice Gorsuch rejected arguments that the intent of the Virginia legislators in passing the state law should be consulted, that the Court’s ruling should normally be governed by the exact text of the statute at hand. However, both the concurring and dissenting opinions suggest that the what the legislators intended to do is important in a preemption context.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Two Architecturally Prized Buildings May be Demolished
January 17, 2014 —
Beverley BevenFlorez-CDJ STAFFThe historic Portland Public Services Building, designed by Michael Graves, may be demolished after a report showed that “the 32-year-old building needs more than $95 million worth of repairs,” Dezeen Magazine reported. The Portland, Oregon building “is credited with being one of the first major buildings of postmodernism.” According to The Oregonian, the Portland city commissioners have differing opinions as to how to proceed. Council member Amanda Fritz commented that she “doesn’t think the problems at The Portland Building are all that bad compared to other city facilities,” while council member Nick Fish stated, “There’s got to be a better option than putting another $100 million into a white elephant.”
Dezeen Magazine also reported that the former American Folk Art Museum in New York is scheduled to be demolished to make room to extend the Museum of Modern Art (MoMA). Glenn Lowry, the MoMA director, stated that the decision came after a six-month study: “The analysis that we undertook was lengthy and rigorous, and ultimately led us to the determination that creating a new building on the site of the former American Folk Art Museum is the only way to achieve a fully integrated campus.”
The decision is being criticized by “architects, conservationists, and critics” reported Dezeen Magazine. Architects Tod Williams and Billie Tsien designed the former American Folk Art Museum. Williams and Tsien stated, “Demolishing this human-scaled, uniquely crafted building is a loss to the city of New York in terms of respecting the size, diversity and texture of buildings in a midtown neighborhood that is at risk of becoming increasingly homogenized."
Read the full story at Dezeen Magazine re The Portland Building...
Read the full story at The Oregonian re The Portland Building...
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Can an App Renovate a Neighborhood?
August 10, 2021 —
Patrick Sisson - BloombergOn a sleepy stretch of West Jefferson Boulevard not far from downtown Los Angeles, cars typically speed past blocks of old warehouses and blank retail facades for destinations elsewhere. But slow down, hit the sidewalk and peek into and around a few buildings, and you’ll see the telltale signs of renovation: sandblasted walls, new windows, work crews and exposed wood beams.
In an expansive brick building that once housed a child-care center before reverting to a warehouse, an inside-out renovation for a future food hall has stripped the wooden ceiling down to gorgeous bow trusses, sunlight filtering through the gaps and lighting up a floor of dirt filled with tracks from heavy machinery.
This string of commercial development, 20 buildings in total, isn’t a typical project, nor does it rely on traditional sources of financing. A clue can be found on the white and orange signs above a handful of buildings between La Brea Avenue and Crenshaw Boulevard, beckoning potential tenants to call Fundrise for leasing opportunities for built-to-suit office/retail.
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Patrick Sisson, Bloomberg
Managing Infrastructure Projects with Infrakit – Interview with Teemu Kivimäki
June 09, 2016 —
Aarni Heiskanen – AEC BusinessFinland has been in the vanguard in adopting building information modeling (BIM) for infrastructure construction. In this interview I discuss with Teemu Kivimäki, CEO of DCS Finland, how Infrakit helps in projects that use BIM.
Can you say a few words about the background of your company and how Infrakit came about?
The background of DCS Finland (short for Digital Construction Solutions Finland) is in research done in University of Oulu where I worked as a research scientist on construction automation from 2007 to 2010. We were doing research with big infrastructure construction companies, exploring ways to improve worksite management and data flow.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aarni@aepartners.fi
Contractor Sentenced to Seven Years for Embezzling $3 Million
July 20, 2020 —
Garret Murai - California Construction Law BlogMichael Medeiros was not a good guy. Ok, on a scale of 1 to 10, maybe not a 9 or 10 (when you’re including guys like Charles Manson), but a solid 6 or 7 at least.
The next case, People v. Medeiros, Case No. A155648, 1st District Court of Appeals (March 26, 2020), is less important for its legal holding than as a reminder that while most legal disputes on construction projects end up with one party owing the other party money, sometimes, when a party’s conduct has been really bad, it can end in a loss of liberty (i.e., jail time) as well.
People v. Medeiros
Medeiros was a painting contractor operating under the name Professional Painting Company, Inc. In the early 1990s, Medeiros met Susan Lambert, who served as the property manager for a homeowners’ association, Woodlake Association, in Hayward, California.
Lambert was an alcoholic. Following a series of surgeries in 2005 and 2007 she became addicted to opiates as well. She also had a gambling problem. As a result, Lambert regularly found herself in financial difficulty.
And this is where Lambert and Medeiros found that they shared common ground. At some point, Medeiros confided to Lambert that he was having cash flow and tax problems.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
South Carolina School District Investigated by IRS and FBI
March 12, 2014 —
Beverley BevenFlorez-CDJ STAFFThe IRS and FBI are investigating operations of the Jasper County School District in South Carolina. According to The Post and Courier, “Assistant U.S. Attorney James May sent a letter to district officials asking them to keep financial documents, the minutes of school board meetings, employment files for top officials and all letters and emails between district employees.”
Some of the problems the school district has dealt with are “legal challenges.” One of the disputes, involved a “multi-million dollar” construction defect claim for “facilities built in 2007.” The Post and Courier reported that this made up twenty percent of the more than half a million dollars paid in legal fees by the district.
South Carolina “lawmakers are considering the Parent Empowerment Act, a bill that would allow the state's Education Department to take over districts that are mismanaged or need improvement if a majority of parents call for it,” according to The Post and Courier.
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“I Didn’t Sign That!” – Applicability of Waivers of Subrogation to Non-Signatory Third Parties
September 30, 2019 —
Rahul Gogineni - The Subrogation StrategistIn Gables Construction v. Red Coats, 2019 Md. App. LEXIS 419, Maryland’s Court of Special Appeals considered whether a contractual waiver of subrogation in the prime contract for a construction project barred a third party – a fire watch vendor hired to guard the worksite – from pursuing a contribution claim against the general contractor. The court concluded that the general contractor could not rely on the waiver of subrogation clause to defeat the contribution claim of the vendor, who was not a party to the prime contract. As noted by the court, holding that a waiver of subrogation clause bars the contribution claims of an entity that was not a party to the contract would violate the intent of the Maryland Uniform Contribution Among Tortfeasors Act (UCATA).
When dealing with claims involving construction projects, there may exist multiple contracts between various parties that contain waivers of subrogation. The enforceability of such waivers can be limited by several factors, including the jurisdiction of the loss, the language of the waiver and the parties to the contract.
In Gables Construction, Upper Rock, Inc. (Upper Rock), the owner, contracted with a general contractor, Gables Construction (GCI) (hereinafter referred to as the “prime contract”), to construct an apartment complex. After someone stole a bobcat tractor from the jobsite, Gables Residential Services Incorporated (GRSI), GCI’s parent company, signed a vendor services agreement (VSA) with Red Coats to provide a fire watch and other security services for the project.
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Rahul Gogineni, White and Williams LLPMr. Gogineni may be contacted at
goginenir@whiteandwilliams.com
Do Hurricane-Prone Coastal States Need to Update their Building Codes?
April 15, 2015 —
Beverley BevenFlorez-CDJ STAFFProperty Casualty 360 reported that “a number of coastal states took no action to improve their building code systems since 2012, and a few have weaker systems in place, according to the Insurance Institute for Business & Home Safety (IBHS).”
The IBHS released their “Rating the States” report that published the results of their study of “the 18 most hurricane-prone states located along the Gulf of Mexico and the Atlantic Coast on their building regulations.” States can receive up to 100 points, with a higher score reflecting better state building requirements.
Delaware scored lowest with a mere 17 points—the same score it received in 2012. Virginia, the highest scored state, earned 95 points.
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