Federal Arbitration Act Preempts Pennsylvania Payment Act
June 15, 2020 —
Wally Zimolong - Supplemental ConditionsI am back. It feels like an entirety since I last posted. But a hellacious trial schedule got me off the blogosphere for some time. Plus, there was nothing to write about.
But I am back with a bang thanks to a decision from the Eastern District of Pennsylvania concerning the interplay of a forum selection clause appearing in an arbitration clause in a construction contract and the Pennsylvania Contractor and Subcontractor Payment Act. In Bauguess Electrical Services, Inc. v. Hospitality Builders, Inc., the federal court (Judge Joyner) ruled that the federal arbitration act preempted the Payment Act’s prohibition on forum selection clauses and held that an arbitration must proceed in South Dakota even though the construction project were the work was performed was located in Pennsylvania.
The Payment Act applies to all commercial construction projects performed in Pennsylvania. As some you might know, Section 514 of the Payment Act, 73 P.S. 514, prohibits choice of law and forum selection clauses. It states “[m]aking a contract subject to the laws of another state or requiring that any litigation, arbitration or other dispute resolution process on the contract occur in another state, shall be unenforceable.” Therefore, if a construction contract is for a project located in Pennsylvania, Pennsylvania law must apply and all disputes must be adjudicated in Pennsylvania.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Research Project Underway to Prepare Water Utilities for Wildfire Events
January 23, 2023 —
Brown and CaldwellPORTLAND, Ore., January 17, 2023 — A multi-disciplinary team of utilities, academia, and consultants have convened to develop a study and publish guidance to improve water treatment resilience against the impacts of forest fires.
Critical to water security, forested watersheds provide 75 percent of the world’s accessible freshwater (Food and Agriculture Organization of United Nations 2021) and supply drinking water for more than two-thirds of North American consumers (EPA 2019). The frequency and severity of forest fires have been increasing globally with warming temperatures and shifting precipitation patterns due to climate change. Wildfires can cause costly, long-term water treatment issues that push water treatment processes beyond their design and operational response capabilities.
Such issues include filtration effectiveness, disinfection efficacy, the elevation of disinfection by-product formation, and increased bioavailable phosphorus leading to problematic cyanobacterial/algal blooms.
Led by a principal research team of Lynn Stephens (Brown and Caldwell), Dr. Mac Gifford and Yone Akagi (Portland Water Bureau), and Dr. Monica Emelko (University of Waterloo), Water Research Foundation (WRF) project #5168 is funded by the foundation’s Emerging Opportunities Program and the Portland Water Bureau (PWB).
About The Water Research Foundation
The Water Research Foundation (WRF) is the leading research organization advancing the science of all water to meet the evolving needs of its subscribers and the water sector. WRF is a nonprofit, educational organization that funds, manages, and publishes research on the technology, operation, and management of drinking water, wastewater, reuse, and stormwater systems—all in pursuit of ensuring water quality and improving water services to the public. For more information, visit www.waterrf.org
About Brown and Caldwell
Headquartered in Walnut Creek, Calif., Brown and Caldwell is a full-service environmental engineering and construction services firm with 52 offices and more than 1,700 professionals across North America and the Pacific. For over 75 years, our creative solutions have helped municipalities, private industry, and government agencies successfully overcome their most challenging water and environmental obstacles. As an employee-owned company, Brown and Caldwell is passionate about exceeding our clients’ expectations and making a difference for our employees, our communities, and our environment. For more information, visit www.brownandcaldwell.com
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Waive It Goodbye: Despite Evidence to the Contrary, Delaware Upholds an AIA Waiver of Subrogation Clause
April 19, 2022 —
Lian Skaf - The Subrogation StrategistSubrogation professionals have always been looking for ways to defeat onerous waiver of subrogation provisions in contracts signed by insureds. However, even when contracts are unsigned, if there is intent when the contract is made – usually long before a loss occurs – a waiver of subrogation can doom what otherwise may have been a strong case. The Superior Court of Delaware considered such a scenario to determine whether a waiver of subrogation provision applied to a multimillion-dollar subrogation case.
In State of Delaware Insurance Coverage Office and Factory Mutual Insurance Co., both as subrogee of the University of Delaware v. DiSabatino Construction Co., Schlosser & Associates Mechanical Contractors, Inc. and V.E. Guerrazzi, Inc., C.A. No. N19C-08-080, 2022 Del. Super. LEXIS 108 (March 17, 2022), the court granted the defendants’ motions for summary judgment, holding that the plaintiffs’ claims were barred by a waiver of subrogation provision in the underlying contract. Thus, the court held that the plaintiffs could not pursue the defendants in their suit to recover damages as a result of a fire. The court specifically denied the plaintiffs’ argument that since the contract was not signed and another “short form” version was later used the waiver of subrogation provision should not apply.
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Lian Skaf, White and Williams LLPMr. Skaf may be contacted at
skafl@whiteandwilliams.com
SunCal Buys Oak Knoll Development for the Second Time
May 19, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to the San Francisco Business Times, “Irvine-based SunCal has now bought the same site twice: once in 2005 for $100.5 million and again last week from the Lehman Brothers estate.” Suncal’s original plan to develop the 167-acre Oakland Hills, California project “fell apart after Lehman declared bankruptcy in 2008.”
The San Francisco Business Times reported that the “former naval hospital site” has “the potential for more than 900 homes.” The former design included “960 homes, 82,000 square feet of commercial and retail space, and 50 acres of parks and open space.”
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Real Estate & Construction News Roundup (08/08/23) – Buy and Sell With AI, Urban Real Estate Demand and Increasing Energy Costs
September 18, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, we look at AI’s ability to buy and sell real estate, good news from the Labor Department for federally contracted construction workers, the continued promise of proptech, and more!
- With economic hardships for urban commercial real estate, the suburbs may be where the next opportunities lie. (Larry Goodman, Forbes)
- Being able to better meet tenant needs and alleviating the redundant, time-consuming tasks continue to drive interest in, and use of, proptech in the real estate sector. (Kerri Davis, Forbes)
- Imagine using AI to determine which real estate properties to buy and sell. A former real-estate analyst has built a tool for this exact task. (Kelsey Neubauer, Business Insider)
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Pillsbury's Construction & Real Estate Law Team
Beginning of the 2020 Colorado Legislative Session: Here We Go Again
February 10, 2020 —
David M. McLain – Colorado Construction LitigationThe 2020 Colorado legislative session started on Wednesday, January 8th. It seems like there will be plenty of issues this year to which home builders will want to pay close attention. On January 13th, Senators Fenberg, Foote, and Jackson sponsored SB 20-093, known as the “Consumer and Employee Dispute Resolution Fairness Act.”
For certain consumer and employment arbitrations, the act:
- Prohibits the waiver of standards for and challenges for evident partiality prior to a claim being filed and requires any waiver of such provisions after the claim is filed to be in writing;
- Provides that the right of a party to challenge an arbitrator based on evident partiality is waived if not raised within a reasonable time of learning of the information leading to the challenge but that such right is not waived if caused by the opposing party;
- Establishes ethical standards for arbitrators; and
- Requires specified public disclosures by arbitration services providers but includes protections for certain confidential information.
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
America’s Factories Weren’t Built to Endure This Many Hurricanes
November 05, 2024 —
Brooke Sutherland - BloombergAmerica’s factories aren’t built for the current cascade of extreme weather events.
Dozens of
industrial sites were in the zone of impact as Hurricane Milton slammed into Florida’s West Coast this week, including several concrete plants, speed boat manufacturing operations and facilities owned by
Honeywell International Inc., Johnson Controls International Plc,
General Electric Co. and Illinois Tool Works Inc., among others. Meanwhile, a Baxter International Inc. facility in Marion, North Carolina, that makes 60% of the intravenous fluids used in hospitals around the country was
shuttered because of damage from Hurricane Helene just two weeks ago. Mines responsible for producing more than 80% of the world’s supply of commercial high-purity quartz in nearby Spruce Pine
were also affected by severe flooding, raising the risk of disruptions to semiconductor production, which relies on the material.
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Brooke Sutherland, Bloomberg
Contract Disruptions: Navigating Supply Constraints and Labor Shortages
January 24, 2022 —
Greg Ross & Tim Lynch - Construction ExecutiveThe biggest worries in today’s economy—supply chain disruptions, labor shortages and the worst inflation in decades—are creating big headaches in the construction industry. What’s worse, large projects underway are often based on contracts hammered out pre-pandemic, before the uncertainties and disruptions that spread around the globe with COVID-19. Construction firms find themselves executing on contracts signed when the potential for delayed timelines and rising costs seemed more remote.
A recent report from the U.S. Chamber of Commerce finds almost all contractors (93%) say they are experiencing a shortage of an important product such as steel, lumber or copper. A rising number of companies on commercial projects (54%) also cite difficulty finding skilled workers. Grant Thornton clients, among them some of the country’s biggest construction companies, report that sourcing materials and hiring workers is a bigger challenge today—and more expensive—than at any other time in recent decades.
Reprinted courtesy of
Greg Ross and Tim Lynch, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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