Delays Caused When Government (Owner) Pushes Contractor’s Work Into Rainy / Adverse Weather Season
January 13, 2020 —
David Adelstein - Florida Construction Legal UpdatesThere are a number of horizontal construction projects where a contractor’s sequence of work and schedule is predicated on avoiding the rainy season (or certain force majeure events). The reason is that the rainy season will result in delays due to the inability to work (and work efficiently) during the adverse weather (including flooding caused by the weather). If the work is pushed into the rainy season, is such delay compensable if the government (or owner) delayed the project that pushed work out into the rainy season? It very well can be.
For example, in Meridian Engineering Co. v. U.S., 2019 WL 4594233 (Fed. Cl. 2019), a contractor was hired by the Army Corps of Engineers to construct a flood control project for a channel in Arizona. Due to delays, including those caused by the government, the project was pushed into the monsoon season, which caused additional delays largely due to flooding caused by the heavy rain. One issue was whether such delays were compensable to the contractor – the government raised the argument that the contractor assumed the risk of potential flooding from the rainy season. The Court found this argument unconvincing:
[The contractor’s] initial construction schedule planned for a completion of the channel invert work, a necessary step in protecting the site from flooding, to be completed by late June 2008…[M]any issues arose in the project’s early stages that led to cumulative substantial delay, including those caused by the government’s failure….The government cannot now claim that [the contractor] assumed the risk of flooding from monsoon season when the government was largely responsible for [the contractor’s] inability to complete the project prior to the beginning of the monsoon season. Simply put, the government cannot escape liability for flood damages when the government is responsible for causing the contractor to be working during the flood-prone season.
Meridian Engineering, 2019 WL at *7 (internal citations omitted)
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Judicial Economy Disfavors Enforcement of Mandatory Forum Selection Clause
December 16, 2023 —
David Adelstein - Florida Construction Legal UpdatesMandatory forum (venue) selection provisions are generally construed in favor of enforceability. Parties agreed to the forum for disputes so why not enforce them, right? A recent federal district court case out of the Eastern District of Louisiana exemplifies an exception grounded in judicial economy which disfavors the enforceability of mandatory forum selection provisions. Keep in mind that this judicial economy exception is fairly limited but the fact pattern below demonstrates why enforcing the mandatory forum selection provision was disfavored due to judicial economy.
In U.S. f/u/b/o Exposed Roof Design, LLC v. Tandem Roofing, 2023 WL 7688584 (E.D.La. 2023), a sub-subcontractor filed a Miller Act payment bond lawsuit against the prime contractor and the prime contractor’s Miller Act payment bond sureties. The sub-subcontractor also sued the subcontractor that hired it. However, the sub-subcontractor’s subcontract with the subcontractor included a mandatory forum selection provision in a different form. The subcontractor moved to sever and transfer the sub-subcontractor’s claims against it to the forum agreed upon in the subcontract. The trial court denied the severance and the transfer. Below are the reasons.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
No Coverage for Installation of Defective Steel Framing
June 26, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe California Court of Appeal affirmed the trial court's holding that the insurer had no duty to defend claims arising out of the insureds' installation of defective steel framing in an apartment building. Regional Steel Corp. v. Liberty Surplus Ins. Corp., No. B245961(Cal. Ct. App. May 16, 2014) [decision here].
Regional Steel was a subcontractor for providing reinforced steel to the columns, walls, and floors of an apartment building under construction. Regional used 90 degree and 135 degree seismic hooks as approved by the general contractor, JSM Construction, Inc. The City building inspector issued a correction notice, however, requiring the exclusive use of the 135 degree hooks. Levels one through three had defective tie hooks and required repair. JSM refused to pay Regional's invoices and withheld $545,000. JSM had to make repairs that required opening up numerous locations in the concrete walls, welding reinforcements to the steel placed by Regional, and otherwise strengthening the inadequate installation.
Regional sued JSM for the withheld payment. JSM cross-claimed, asserting breach of contract and breach of express and implied warranties.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Newmeyer Dillion Attorneys Named to 2022 Southern California Rising Stars List
June 13, 2022 —
Newmeyer DillionNEWPORT BEACH, Calif. – June 8, 2022 – Prominent business and real estate law firm Newmeyer Dillion is pleased to announce that partner
Jason Moberly Caruso and associate
Jessica Garland Daley have been selected to the 2022 Southern California Rising Stars list by Super Lawyers. Each year, no more than 2.5 percent of the lawyers in the state are selected to receive this honor. The attorneys will be recognized in the June 2022 issues of Super Lawyers Magazine, Los Angeles Magazine and Orange Coast Magazine.
Jason Moberly Caruso is a partner in the Newport Beach office. Jason's practice focuses on land use, "contaminated sites" environmental legal work, complex litigation, and appellate matters. This is the fifth consecutive year Jason has been honored.
Jessica Garland Daley is an associate in the Newport Beach office. Jessica's practice focuses on litigation in the areas of employment law and construction law. This is the first year Jessica has been selected.
About Newmeyer Dillion
For over 35 years, Newmeyer Dillion has delivered creative and outstanding legal solutions and trial results that achieve client objectives in diverse industries. With over 60 attorneys working as a cohesive team to represent clients in all aspects of business, employment, real estate, environmental/land use, privacy & data security and insurance law, Newmeyer Dillion delivers holistic and integrated legal services tailored to propel each client's operations, growth, and profits. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California and Nevada, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949.854.7000 or visit www.newmeyerdillion.com.
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Landlords Beware: Subordination Agreements
May 03, 2017 —
Kevin J. Parker - Snell & Wilmer Real Estate Litigation BlogIn the recent Arizona Court of Appeals case Earle Investments, LLC v. Southern Desert Medical Center Partners, 762 Ariz. Adv. Rep. 12 (2017), the Court of Appeals addressed the question of the scope of a subordination agreement signed by the property owner (Lessor/Landlord) at the request of the Lessee/Tenant and Lessee/Tenant’s Lender. In general, by subordination, Party No. 1 with a higher/better lien priority agrees to allow Party No. 2 (usually a lender providing construction funds for the overall betterment of the property) to get a lien position in front of Party No. 1. Party No. 1 presumably believes the switch of lien position in return for someone else paying for the property improvements will benefit Party No. 1 in the long run by resulting in an increase in the value of Party No. 1’s position.
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Kevin J. Parker, Snell & WilmerMr. Parker may be contacted at
kparker@swlaw.com
Recent Amendments and Caselaw Affecting the Construction Industry in Texas
April 19, 2022 —
Frederick H. Wen - Gordon Rees Scully Mansukhani, LLPHere are some recent Texas legislative amendments and Texas Supreme Court cases from the past year concerning the construction industry in Texas.
1) Recent Legislative Amendments Concerning the Construction Industry:
a) The Texas Legislature throws a “Spear” in the Lonergan Doctrine to reduce general/subcontractor liability for owner-provided plans and specs:
Forty-nine out of the fifty states follow the Spearin Doctrine under which owners warrant the accuracy and sufficiency of owner-provided plans and specs in construction contracts. On the other hand, for over a century, Texas has followed the Lonergan Doctrine under which, absent contractual language to the contrary, a general contractor/subcontractor, instead of the owner, bears the risk of deficiencies in owner-provided design documents, once they started construction. Texas Senate Bill 219, which went into effect on September 1, 2021, finally changed that and brought Texas in line with the rest of the country, with a few exceptions.
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Frederick H. Wen, Gordon Rees Scully Mansukhani, LLPMr. Wen may be contacted at
fhwen@grsm.com
Kaylin Jolivette Named LADC's Construction and Commercial Practice Chair
October 09, 2023 —
Kaylin Jolivette - Lewis BrisboisLafayette, La. (August 15, 2023) – Lafayette Associate Kaylin E. Jolivette was recently named Practice Chair of the Louisiana Association of Defense Counsel (LADC) Construction and Commercial practice.
LADC is comprised of over 1,400 attorneys in Louisiana who are engaged in the defense of civil litigation. The organization creates CLE programs tailored to individual practices throughout the year to provide members with the knowledge and skills to be among the top litigators in the region.
Ms. Jolivette is a member of the General Liability Practice. Her past experience includes practice in an array of civil litigation matters as both plaintiff and defense counsel from the pre-trial litigation phases, to trial and appeals, in various areas including products liability, privacy law, health care law, energy litigation, contractual disputes, personal injury, alternate dispute resolution, and construction litigation.
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Kaylin Jolivette, Lewis BrisboisMs. Jolivette may be contacted at
Kaylin.Jolivette@lewisbrisbois.com
President Trump’s “Buy American, Hire American” Executive Order and the Construction Industry
June 05, 2017 —
Garret Murai - California Construction Law BlogOn April 18, 2017, President Trump signed Executive Order No. 13788 implementing his “Buy American, Hire American” campaign promise.
Federal construction contractors familiar with “Buy American” clauses in federal contracts under the Federal Acquisition Regulations (FAR)–which require materials to be manufactured in the United States (or, depending on the clause, not manufactured in certain countries) unless a waiver is obtained–have waited anxiously to see what Trump’s “Buy American, Hire American” promise would mean for them.
Well . . . as it turns out, not much, at least not yet.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com