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DIRECTORY AND CAPABILITIES

Court of Appeals Finds Arbitration Provision Incorporated by Reference Unenforceable

September 20, 2021 — Garret Murai - California Construction Law Blog
Subcontractors have gotten accustomed to incorporation clauses in their contracts. While an incorporation clause can incorporate any document, most typically, it’s the prime contract between the general contractor and the project owner. Subcontractors will sometimes even accept these documents sight unseen which can be a recipe for disaster. But not in the next case. In Remedial Construction Services, LP v. AECOM, Inc., Case No. B303797 (June 15, 2021), the 2nd District Court of Appeal examined whether a subcontractor was bound to an arbitration provision contained in a prime contract that was incorporated by reference into the subcontractor’s contract. In this case, it was the prime contractor who was in for a surprise. The Remedial Construction Case In 2015, Shell Oil Products US, LLC entered into a prime contract with AECOM Technical Services, Inc. for the demolition, remediation and restoration of the Gaviota oil terminal in Goleta, California. AECOM in turn entered into a subcontract with Remedial Construction Services, LP to perform portions of the work. When AECOM refused to pay Remedial for delay costs asserted by Remedial, Remedial filed suit. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Enerpac Plays Critical Role in Industry-changing Discovery for Long Span Bridges at The University of Nebraska-Lincoln

April 19, 2022 — Enerpac
MENOMONEE FALLS, Wis. (April 18, 2022) – Three years ago when Marc Maguire, assistant professor of construction programs at the University of Nebraska-Lincoln, started investigating a new stranded wire product for bridge girder reinforcing he thought the best strands for bridge construction were the industry standard 7-wire strands. After running a multitude of analyses, Maguire and student researchers found that 19-wire 1-1/8 in. diameter strands outperform the typical 7-wire 1-1/6 in. diameter strands and allow bridges to reach unprecedented lengths. Further tests conducted by the Durham School of Architectural Engineering and Construction with the help of Enerpac hydraulic tools examined the bond strength, force transfer, and development length of the 19-wire strands. "Traditionally, 19-wire strands are not often used in the U.S. because they are not widely available and they are much larger than standard strands," said Maguire. "We wanted to show that there was an alternative option to the common 7-wire strand--one that can perform at the same level, if not better." About Enerpac Enerpac is a global market leader in high pressure hydraulic tools, controlled force products, portable machining, on-site services and solutions for precise positioning of heavy loads. As a leading innovator with a 110-year legacy, Enerpac has helped move and maintain some of the largest structures on earth. When safety and precision matters, elite professionals in industries such as aerospace, infrastructure, manufacturing, mining, oil & gas and power generation rely on Enerpac for quality tools, services and solutions. For more information, visit www.enerpac.com. Read the court decision
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Federal Court Denies Summary Judgment in Leaky Condo Conversion

August 04, 2011 — CDJ STAFF

In the US District Court for Illinois, Judge William Hibber has rejected the request for summary judgment sought by the developers of a condominium building in the case of Nautilus Ins. Co. v. 1735 W. Diversey, LLC (the insureds). The insureds renovated a building at 1735 W. Diversey, Chicago, converting it into condominiums. After the project was completed and all units sold, and a condominium association form, one of the owners found that unit suffered leaks during rainstorms. The condo board hired a firm, CRI, to investigate the cause of the leakage. CRI found “water infiltration through the exterior brick masonry walls, build-up of efflorescence on the interior surfaces of the masonry, and periodic spalling of portions of the brick masonry.”



The redevelopment firm had purchased coverage from Nautilus. “Shortly after the Board filed its first complaint, the Insureds tendered the mater to Nautilus and requested that it indemnify and defend them from the Board's underlying claims. Nautilus, however, rejected the Insureds’ tender and denied coverage under both insurance policies.” Nautilus stated that the water leakage did not constitute an occurrence under the policies. The court cited these policies in which an occurrence is defined as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions.” The Illinois courts have determined that construction defects are not accidents.



The court concluded that the insured did not bring forth claims within the coverage of the policies and denied the motion for summary judgment.



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Will COVID-19 Permanently Shift the Balance between Work from Home and the Workplace?

April 13, 2020 — Adam Weaver - Gravel2Gavel Construction & Real Estate Law Blog
On March 15, 2020, the Center for Disease Control and Prevention (CDC) issued formal guidance to combat the spread of the coronavirus by recommending against gatherings of 50 or more people for the next eight weeks (CDC guidance), which includes nearly every office building in America. Thus, began the most significant work from home experiment this country has ever seen. With the majority of the workforce working from home, many employees see this as an opportunity to finally prove that, “yes, that meeting could have been an email.” However, while workers will not be distracted by constant (and potentially unnecessary) meetings, a number of issues and questions arise with working from home. Most importantly, is this working from home experiment a temporary opportunity for businesses to test remote work ideas or is this the new normal? And how will this affect commercial real estate moving forward? Read the court decision
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Reprinted courtesy of Adam Weaver, Pillsbury
Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com

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OSHA Advisory Committee, Assemble!

February 06, 2023 — Rachel E. Pelovitz - Construction Executive
The Occupational Safety and Health Administration (OSHA) has sourced new members for its Advisory Committee on Construction Safety and Health, which was established by the Construction Safety Act to provide “advice and assistance in construction standards and policy matters” to the assistant secretary of labor for occupational safety and health. The committee consists of 15 members, one appointed by the secretary of labor, to represent the interests of employers, employees, state safety and health agencies, in addition to the public. Reprinted courtesy of Rachel E. Pelovitz, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Ms. Pelovitz may be contacted at pelovitz@abc.org Read the full story... Read the court decision
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General Liability Alert: ADA Requirements Pertaining to Wall Space Adjacent to Interior Doors Clarified

February 26, 2015 — Lawrence S. Zucker II and Kristian B. Moriarty – Haight Brown & Bonesteel LLP
In Kohler v. Bed Bath & Beyond (No. 12-56727, filed February 19, 2015) the United States Court of Appeals for the Ninth Circuit affirmed a grant of summary judgment in favor of a department store related to the necessary moving clearance for an interior restroom door pursuant to the Americans With Disabilities Act ("ADA"). Plaintiff, Chris Kohler, is paraplegic and requires the use of a wheelchair to move in public. On two separate days in May 2011, Kohler used the restroom inside the Bed Bath & Beyond store in Riverside, California. Of relevance to the appeal, Kohler contends there was less than ten inches of strike-side wall space on the pull side of Bed Bath & Beyond’s restroom door which allegedly made it difficult for Mr. Kohler to pull open the restroom door by pushing off the strike-side wall with one hand while pulling the door handle with the other. He also contends there was less than three inches of strike-side wall or floor space on the push side of the door, making it difficult for Kohler to open the door from the push side. The door at issue did not have a latch which would stop the door from freely swinging on a hinge. Reprinted courtesy of Lawrence S. Zucker II, Haight Brown & Bonesteel LLP and Kristian B. Moriarty, Haight Brown & Bonesteel LLP Mr. Zucker may be contacted at lzucker@hbblaw.com Mr. Moriarty may be contacted at kmoriarty@hbblaw.com Read the court decision
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Unpredictable Opinion Regarding Construction Lien (Reinstatement??)

January 17, 2023 — David Adelstein - Florida Construction Legal Updates
Here comes the discussion of an appeal I was intimately involved in dealing with a construction lien. See Suntech Plumbing and Mechanical Corp. v. Bella Isla, LLC, 2022 WL 14672765 (Fla. 3d DCA 2022). Unfortunately, it was a losing result on my end but not a losing result to the issue at-hand. You should ask what in the world does this mean. I will tell you. Here is the fact pattern. A subcontractor files a construction lien foreclosure lawsuit against an owner for unpaid contract balance. In the same lawsuit, the subcontractor sues the general contractor for breach of contract and unjust enrichment associated with an approximate three-year delay on a construction project. The project was scheduled to be completed in 2019. It was not. The project was pushed into COVID and into 2022. (The subcontractor did not sue the general contractor for amounts subject to the lien foreclosure claim.) The general contractor, assuming the defense of the owner, moved to stay the lawsuit pending the outcome of arbitration based on an arbitration provision in the subcontract. The subcontractor did not dispute the arbitration provision, but argued that arbitration provision should not extend to the owner that was (a) not bound by the subcontract, (b) would not be a party to the arbitration, and (c) the amounts pled against the general contractor did not include the amounts subject of the lien foreclosure lawsuit. At a minimum, the lawsuit should be stayed, not dismissed. Nevertheless, the trial court dismissed the entire lawsuit in an order that states that it is a final order with language that the lien may be “reinstated” after the outcome of the arbitration (that the owner is not a party to). Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Lewis Brisbois’ Houston Office Selected as a 2020 Top Workplace by the Houston Chronicle

December 21, 2020 — David Oubre - Lewis Brisbois
Lewis Brisbois’ Houston office was recently selected for inclusion in the Houston Chronicle’s 2020 Top Workplaces section. To determine the recipients of this honor, the publication surveyed more than 37,000 Houston-area employees regarding their organization’s leadership, cooperation, communication, work-life balance, pay, and benefits. Based upon the employees’ feedback, the publication selected its Top Workplaces winners and announced them during a virtual awards ceremony in November. Houston Office Administrator Kristi Kraeger expressed excitement concerning this honor, explaining, “In the two years I have been with Lewis Brisbois, we have more than doubled in size. We have created a friendly, professional, team-oriented environment, and we strive to provide growth and opportunity to our employees.” Read the court decision
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Reprinted courtesy of David Oubre, Lewis Brisbois
Mr. Oubre may be contacted at David.Oubre@lewisbrisbois.com

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