When Is Mandatory Arbitration Not Mandatory?
August 19, 2015 —
Christopher G. Hill – Construction Law MusingsI have discussed my views on mandatory mediation in construction contracts at other places here at Musings and also discussed how the contract is king here in Virginia. A recent Charlottesville, Virginia Circuit Court case combined these two concepts to allow a subcontractor to proceed straight to litigation despite various ADR provisions in the contract between it and the general contractor.
In ProBuild v. DPR & Continental Casualty, the Court looked at a series of ADR steps that were to be followed in the contract between the parties in order to allow DPR, the general contractor to require arbitration as opposed to litigation. The Court considered the surety’s motion to stay the litigation against it pending arbitration between ProBuild and DPR.
In ProBuild, the Court looked at a contractual provision that provided certain steps to be followed in the event of a dispute, starting with a notice of dispute, followed by negotiation, followed by mediation should the disputing party request it, and in the event that mediation was tried and failed, the disputing party or general contractor could require arbitration. The Court determined that ProBuild, the subcontractor, was the disputing party under the contract, had pursued unsuccessful formal negotiations and that neither ProBuild nor DPR requested mediation. The Court then held that because unsuccessful mediation was a prerequisite to required arbitration and because mediation was never pursued, the mandatory arbitration clause did not apply.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Did New York Zero Tolerance Campaign Improve Jobsite Safety?
December 13, 2021 —
Neil Flynn - Construction ExecutiveConstruction work is one of the most dangerous jobs in America, accounting for 19% of all workplace deaths in 2019. In New York City, that number is almost 50% higher, with construction accidents accounting for a quarter of all workplace deaths. One of the most positive developments in this area, despite the presence of COVID-19, has been the recent implementation of the “Zero Tolerance” campaign by the New York City’s Department of Buildings.
The goal of the DOB’s latest construction safety campaign was to reduce the number of building site injuries and fatalities by implementing a zero-tolerance standard. While it is too premature to measure the program’s efficiency, a
preliminary analysis of the first three months’ results appear to be nothing short of impressive.
Reprinted courtesy of
Neil Flynn, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Flynn may be contacted at
nf@plattalaw.com
Include Contract Clauses for Protection Against Ever-Evolving Construction Challenges
May 30, 2022 —
Michael Henry & Kevin J. Riexinger - Construction ExecutiveThe first quarter of 2022 provided a valuable glimpse into some of the major issues the construction industry can expect to continue impacting jobsites for the rest of the year.
Early in the pandemic, construction was not immune from the shut-downs that swept across market sectors. Workers were staying home to shield themselves and their families from the COVID-19 virus (and variants). This caused delays with construction projects and failures to meet negotiated benchmarks or deadlines. Contractors were left to wonder whether they remained obligated to perform under their contracts, or whether COVID-19 allowed them to invoke force majeure clauses. Over the past two years, there has been much debate about whether force majeure clauses encompass COVID-19 risks.
Traditionally, force majeure is only invoked for significant weather events or natural disasters. Unsurprisingly, outcomes of legal actions regarding COVID-19 and force majeure varied by state and by contract. It didn’t take long for contractors to seek a more predictable and certain solution.
Reprinted courtesy of
Michael Henry & Kevin J. Riexinger, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Riexinger may be contacted at kriexinger@gllawgroup.com
Mr. Henry may be contacted at MbHenry@tcco.com
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Washington Supreme Court Interprets Ensuing Loss Exception in All-Risk Property Insurance Policy
May 20, 2024 —
David G. Jordan & William E. Phillips IV - Saxe Doernberger & Vita, P.C.The "ensuing loss" clause is a provision that restores coverage for property insurance claims that are subject to certain policy exclusions, such as “faulty workmanship” and “faulty design.” It applies in cases where there is damage from a covered cause of loss that ensues, or results from, the excluded cause of loss. Courts across jurisdictions have grappled with interpreting the breadth of this clause, leading to varying conclusions regarding its scope and applicability. One of the primary challenges in interpreting “ensuing loss” lies in determining the ultimate cause of damage. Courts must ascertain whether the ensuing loss is sufficiently distinct from the excluded event to warrant coverage under the policy. This analysis often hinges on whether the cause of loss is thought to constitute a separate and independent occurrence or is merely a continuation or exacerbation of the excluded event.
Reprinted courtesy of
David G. Jordan, Saxe Doernberger & Vita, P.C. and
William E. Phillips IV, Saxe Doernberger & Vita, P.C.
Mr. Jordan may be contacted at DJordan@sdvlaw.com
Mr. Phillips may be contacted at WPhillips@sdvlaw.com
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Three Key Takeaways from Recent Hotel Website ADA Litigation
April 26, 2021 —
Shane Singh & Grace Mehta - Lewis BrisboisDespite the COVID-19 pandemic and its chill on the hospitality industry, ADA-related digital lawsuits increased by approximately 23% in 2020. Many of these lawsuits are filed against hotels. The complaints allege that a hotel’s online reservation system failed to provide enough detail for individuals with disabilities to decide if the hotel meets their accessibility needs.
These plaintiffs will often claim that it is insufficient to describe an aspect of a hotel or room as “accessible” because the term is an opinion or conclusion. Plaintiffs argue that a hotel’s reservation system must report specific information, such as the dimensions of space under accessible desks and sinks, the slopes of surfaces, doorway clearance, and numerous other technical requirements under the ADA.
Many hotels are fighting back, arguing that the detail provided is sufficient and in compliance with the ADA. So far this year, in February 2021, two judges in the U.S. District Court for the Central District of California, Judge Percy Anderson and Judge Cormac Carney, agreed with the defendants, dismissing three cases with prejudice.
Reprinted courtesy of
Shane Singh, Lewis Brisbois and
Grace Mehta, Lewis Brisbois
Mr. Singh may be contacted at Shane.Singh@lewisbrisbois.com
Ms. Mehta may be contacted at Grace.Mehta@lewisbrisbois.com
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California Supreme Court Allows Claim Under Unfair Competition Statute To Proceed
October 16, 2013 —
Tred Eyerly — Insurance Law HawaiiThe California Supreme Court determined that insurance practices violating the state's Unfair Insurance Practices Act (UIPA) could support a claim under the state's unfair competition law (UCL). Zhang v. Superior Court, 57 Cal. 4th 353 (2013).
Zhang purchased a CGL policy from California Capital Insurance Company. She sued California Capital in a dispute over coverage for fire damage to her commercial property. The complaint included causes of action for breach of contract, breach of the implied covenant of good faith and fair dealing, and violation of the UCL. In her UCL claim, Zhang alleged that California Capital had "engaged in unfair, deceptive, untrue, and/or misleading advertising" by promising to provide timely coverage in the event of a compensable loss, when it had no intention of paying the true value of the insureds' covered claims.
Zhang specifically alleged unreasonable delays causing deterioration of her property; withholding of policy benefits; refusal to consider cost estimates; misinforming her as to the right to an appraisal; and falsely telling her mortgage holder that she did not intend to repair the property, resulting in foreclosure proceedings.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
My Top 5 Innovations for Greater Efficiency, Sustainability & Quality
October 25, 2020 —
Cristina Savian - AEC BusinessAs a construction professional and British citizen, I genuinely could not have been any prouder and humbled to have opened UK Construction Week Virtual last week.
2020 is the year of disruptions, and we are all looking for this “New Normal”, and while this newfound regularity may have opened new opportunities, as we are now broadcasting to a much wider audience than previous in-person events, and indeed we have to thank technology for that. For us construction professionals, this pandemic has put our industry further under pressure, however, it has also taught us something extremely important. The pandemic has shown the world how vital the construction industry is. The world cannot function without it. This new extraordinary experience has given us the prospect to turn our industry around and transform it into one of the most productive industries in our society.
How are we going to do it? I think you can guess what I am about to say, of course by leveraging technology! The panel discussion with leading construction experts across the UK with representatives from Skanska UK, Bryden Wood, and Innovate UK, focused on our top 5 innovations for greater efficiency, sustainability and quality in construction. Here are my top 5.
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Cristina Savian, AEC Business
North Carolina Weakened Its Building Codes in 2013
October 09, 2018 —
Ari Natter - BloombergFive years ago, encouraged by home builders and an anti-regulatory zeal, lawmakers in North Carolina joined other states in weakening building code requirements.
It’s a decision they may regret as Hurricane Florence takes aim at the Carolinas.
The Legislature in 2013 increased the amount of time between updates to its building code from three years to six. That means that updates that set new standards for elevating the floors in flood-prone homes aren’t in effect, according to the Federal Alliance for Safe Homes Inc., a non-profit disaster safety organization.
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Ari Natter, Bloomberg