How U.S. Design and Architecture Firms Can Profit from the Chinese Market and Avoid Pitfalls
December 23, 2024 —
Chengdong ("C.D.") Xing - The Dispute ResolverDespite recent challenges, including obvious political tensions, economic cooling in the PRC, and increased local competition, the Chinese market remains an attractive destination for U.S. design and architecture firms. For instance, PEI Architects has maintained its success in China through long-standing relationships with key clients and is currently involved in two major projects for the Bank of China: a 1.9 million-square-foot complex in Shanghai and a financial center in Haikou.[i] Similarly, NBBJ is playing a critical role in the development of Tencent’s Net City in Shenzhen, a 2-million-square-meter smart city project that aligns with China's goals of sustainable and tech-driven urbanization.[ii] These examples show that while the Chinese market presents challenges, it continues to offer significant opportunities, particularly in sectors where innovative and cutting-edge architectural solutions are in high demand. At the same time, U.S. firms should exercise care: proper advance planning and strategic alliances are crucial for profitable forays into the Chinese market.
JR Design Project: A Cautionary Tale
When operating in China, U.S. design firms often encounter regulatory challenges, particularly with respect to China’s strict qualification requirements for architectural design services. Failure to meet these requirements can result in serious legal issues, including the potential invalidation of design contracts, as demonstrated in a leading case decided by the Supreme People’s Court of PRC (the nation’s highest court).
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Chengdong ("C.D.") Xing, Rajah & Tann Singapore LLPMr. Xing may be contacted at
chengdong.xing@rajahtann.com
LAX Construction Defect Suit May Run into Statute of Limitations
December 30, 2013 —
CDJ STAFFCurrent arguments over the claims made by LAX that Runway 25L was built in a defective manner by Tutor-Saliba/O&G Industries are hinging over whether the airport knew the runway was defective less than four years after the construction was completed. The runway was built almost five years ago, and Tutor-Saliba is claiming that Los Angeles World Airports has delayed too long in making a construction defect complaint. Tutor-Saliba is not conceding that the runway is defective, only that if it were, the airport would have known it earlier.
Los Angeles World Airports, which operates LAX, is not commenting on the matter, but Robert Span, an aviation attorney at Steinbrecher & Span, told the Daily Breeze that while “there is a four year statute of limitations for dealing with construction defects, but that’s for what they called patent defects,” and that “there’s a 10-year statute of limitations for construction projects where the defect that is alleged is called latent — something that would not be readily apparent.”
Tim Pierce, a construction attorney at K&L Gates LLP described it as “a common defense,” though he said it is “raised in most cases and only works in some.”
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Background Owner of Property Cannot Be Compelled to Arbitrate Construction Defects
November 07, 2012 —
CDJ STAFFIn Truppi v. Pasco Engineering, John Quattro sued Property Management Contractors, Inc. over construction defects in William Truppi’s home. All parties are named in the suit. The California Court of Appeals ruled that Property Management Contractors, Inc. (PMCI) could not compel Mr. Quattro to arbitration.
The background of the case involves two houses built in Encinitas, California by PCMI: one for Mr. Truppi at 560 Neptune, and one for Mr. Quattro at 566 Neptune. Both contracts contained an arbitration provision. Mr. Quattro signed the contract for his residence and Mr. Truppi signed the other. Mr. Quattro then sued PCMI and its principal, William Gregory. Mr. Quattro claimed to be the true contracting party for the 560 Neptune residence and a third party beneficiary of the contract Mr. Truppi signed, and stated that PCMI was aware of this.
PCMI in a demurrer stated that Quattro “had only a ‘prospective beneficial interest in the property upon its eventual sale or lease.’” Mr. Quattro amended his complaint to account for the issues raised by PCMI. The court rejected PCMI’s demurrer to the amended complaint.
Finally, PCMI and Gregory asserted that Quattro was “not the real party in interest” and could not sue. PCMI continues to assert that Quattro lacks standing, but their attorney sent Quattro an e-mail stating, “While my client disputes that you are a party, and that you lack standing to assert the claim, to the extent you do so I believe you are obligated to proceed by way of arbitration.”
The court did not cover the issue of Quattro’s standing in the case, only if he could be compelled to arbitration. The court affirmed the lower court’s finding that Quattro could not be compelled to arbitrate the construction defect claim as neither he nor Gregory signed the contract in an individual capacity. Further, the court noted that PCMI and Gregory “denied the existence of an agreement between themselves and Quattro on the 560 contract,” and cannot compel arbitration on a non-existent agreement. And while non-signatories can, in some situations be compelled to arbitrate, the court found that “these cases are inapplicable because here they seek to have the alleged third party beneficiary (Quattro) compelled by a nonsignatory (Gregory).” The arbitration clause in question “expressly limited its application to persons or entities that signed the 560 contract.”
As Mr. Quattro was not a signatory to that agreement, the court found that he could not be held to its arbitration provision.
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What Makes Building Ventilation Good Enough to Withstand a Pandemic?
January 11, 2021 —
Linda Poon - BloombergIn October, students at the University of Illinois, Urbana-Champaign, held an intimate jazz concert at a bar downtown, with an audience of about 20 peers and faculty members — all of whom held digital passes indicating they’d recently tested negative for Covid-19. Two jazz ensembles performed, sometimes with masks and coverings for their instruments, and other times without.
Behind the scenes, mechanical engineering professor Ty Newell tinkered with the airflow, turning the exhaust and recirculation fans on and off at different points during the night. His students monitored for changes in the air quality, using a special instrument to measure the concentrations of carbon dioxide and fine particulate matter, both key to determining if a building is well ventilated.
The experiment sought to highlight the significance of proper ventilation, something that Newell said hadn’t been paid enough attention, until now. As evidence suggesting Covid-19 can spread through aerosol transmission continues to mount, health experts are focused less on sanitizing surfaces and more on improving indoor air quality. In December, the U.S. Centers for Disease Control and Prevention finally put out its ventilation recommendations to combat Covid-19, based on standards set by ASHRAE, or the American Society of Heating, Refrigerating and Air-Conditioning Engineers.
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Linda Poon, Bloomberg
Yet Another Reminder that Tort and Contract Don’t Mix
January 25, 2021 —
Christopher G. Hill - Construction Law MusingsI have stated on numerous occasions here at Musings that in Virginia, contract claims and tort claims (read fraud) don’t mix. A recent case from the Federal District Court for the Eastern District of Virginia presents another example of this principle. In Itility LLC v. The Staffing Resource Group, Judge Ellis of the Alexandria Division, considered ITility’s claims of fraud and breach of contract against SRG and one of its officers based upon SRG’s alleged violation of its duties under a teaming agreement. The claim by ITility was that TSRG provided false and misleading resumes and thus damaged ITility. SRG filed a Motion to Dismiss and the Court was therefore required to resolve the following issues: (1) whether plaintiff’s fraud claim is barred by Virginia’s “source of duty” rule; (2) whether plaintiff’s claim for tortious interference with a business expectancy is barred by SRG’s participation in the business expectancy, and (3) whether the teaming agreement between the parties bars plaintiff’s claims for consequential and punitive damages.
Reprinted courtesy of
The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com
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Melissa Pang Elected Vice President of APABA-PA Board of Directors
December 21, 2016 —
White and Williams LLPMelissa Pang has been elected Vice President of the Asian Pacific American Bar Association of Pennsylvania's (APABA-PA) Board of Directors. She will serve a one-year term in the position, beginning January 1, 2017. As part of her responsibilities, Melissa will co-chair the National Asian Pacific American Bar Association Northeast Regional Conference, which will be hosted by the APABA-PA in Philadelphia.
Melissa has been a member of the APABA-PA since 2010 and has served on the board since 2015. Her involvement includes participation on the Law Student Outreach Committee as well as the Annual Banquet Committee. In 2016, she chaired the organization's Lunar Banquet.
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Melissa Pang, White and Williams LLPMs. Pang may be contacted at
pangm@whiteandwilliams.com
What Happens When a Secured Creditor Files a Late Claim in an Equity Receivership?
September 28, 2017 —
Ben Reeves - Snell & Wilmer Real Estate Litigation BlogPitting a receivership court’s inherent equitable powers against pre-existing property rights can lead to some pretty interesting questions. In SEC v. Wells Fargo Bank, N.A., 848 F.3d 1339, 1343-44 (11th Cir. 2017), the Eleventh Circuit recently examined whether a district court’s inherent authority to establish a claims submission process allowed the court to extinguish a security interest in real property based solely upon an untimely proof of claim. Much to the relief of secured creditors, the Eleventh Circuit held that the district court erred, as a matter of law, by extinguishing the creditor’s pre-existing property rights under those circumstances.
Introduction
Equity vests a district court with “‘broad powers and wide discretion to determine relief in an equity receivership.’” Wells Fargo, 848 F.3d at 1343-44 (quoting SEC v. Elliot, 953 F.2d 1560, 1566 (11th Cir. 1992)). These powers include: (i) establishing procedures for the submission of claims to a receiver, and (ii) setting a claims bar date. Id. at 1344 (citing SEC v. Tipco, Inc., 554 F.2d 710, 711 (5th Cir. 1977)).
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Ben Reeves, Snell & WilmerMr. Reeves may be contacted at
breeves@swlaw.com
County Elects Not to Sue Over Construction Defect Claims
June 18, 2014 —
Beverley BevenFlorez-CDJ STAFFEven though repairs are expected to cost four million, the New Hanover County Board of Commissioners announced that they will not be pursuing litigation against Clancy and Theys Construction Company for their alleged construction defects of their work on the W. Allen Cobb Judicial Annex in North Carolina, according to Star News Online.
“The board stated that taxpayer money would be better spent on the repairs than on a lengthy court case,” reported Star News Online. “But as a result of the faulty work, the board removed the company from its list of prequalified bidders and stated that it would not be eligible to work on other county construction projects.”
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