COLUMBUS OHIO BUILDING EXPERT
DIRECTORY AND CAPABILITIES

When Is an Arbitration Clause Unconscionable? Not Often

April 05, 2021 — Christopher G. Hill - Construction Law Musings
Here at Construction Law Musings, I have discussed the pros and cons of various forms of Alternative Dispute Resolution (ADR), including arbitration. I am a fan of most ADR, but less of one for arbitration than for mediation. However, where the arbitration can be done under a good set of cost-containing rules and with an arbitrator that is experienced in construction, arbitration can help with the resolution of construction claims. Of course, arbitration provisions in construction contracts are routinely upheld by the courts of Virginia with limited exceptions. One of these exceptions is where the arbitration clause is unconscionable and therefore unenforceable. A recent case out of the Western District of Virginia, Marroquin v. Dan Ryan Builders Mid-Atlantic LLC, shows how high a hurdle it is to get a court to invalidate an arbitration provision. In this case, the Marroquins purchased a new construction home from the Defendants. As is often the case in such purchase transactions, Defendant provided a limited warranty agreement (in this case provided by Quality Builders Warranty Corporation (“QBW”)) that along with the sales contract contained a mandatory arbitration provision. The parties executed the limited warranty and the sale proceeded with the Marroquins taking possession. Over the next year or so, the County inspector’s office issued several correction orders to Defendant, and the Marroquins, through counsel, identified numerous defects in construction, many of which they alleged to remain unremedied. Needless to say, they sued for breach of statutory warranty and for breach of the limited warranty. Defendant removed the case to Federal District Court and then moved to compel arbitration. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Everyone’s Working From Home Due to the Coronavirus – Is There Insurance Coverage for a Data Breach?

May 18, 2020 — Heather Whitehead & Jeff Dennis - Newmeyer Dillion
Most organizations are now requiring that their employees work from home (“WFH”) with the ongoing COVID-19 (commonly referred to as the Coronavirus) pandemic. These remote working arrangements provide new opportunities for hackers to infiltrate computer systems, and not surprisingly, attempted cyber attacks are on the rise. Given the rapid deployment of employees being forced to work from home, many employees are using their personal laptops, tablets and other devices to complete their work. The use of such personal devices increases the risk to network systems, including a potential breach or data loss. However, in the event of a breach or other incident, there may be limitations in your cyber liability insurance policy based upon the type of hardware being used. Businesses need to be proactive to protect themselves from attacks by practicing vigilant cyber safety, and also reviewing their insurance policies in detail for coverage considerations prior to the occurrence of any cyber incident. Reprinted courtesy of Heather H. Whitehead, Newmeyer Dillion and Jeffrey M. Dennis, Newmeyer Dillion Ms. Whitehead may be contacted at heather.whitehead@ndlf.com Mr. Dennis may be contacted at jeff.dennis@ndlf.com Read the court decision
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Construction on the Rise in Washington Town

June 16, 2011 — CDJ STAFF

The Kitsap Sun reports that Gig Harbor, a town in the area near Tacoma, Washington, has had a 60% increase in building permit applications as compared to 2010. May, 2011 had as many permits issued for single-family residences in Gig Harbor as were issued for all of 2010. Additionally, a Safeway shopping center on Point Fosdick is described by Dick Bower, Gig Harbor Building and Fire Safety Director, as “a huge project and it’s going to bring in quite a bit of revenue.” He called the increase in building “economic recovery at the grassroots level.”



Bower said that the building officials in other towns have also seen upswings in construction. He anticipates more activity in the future.



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Construction Defects Up Price and Raise Conflict over Water Treatment Expansion

August 27, 2013 — CDJ STAFF
The owner of a regional water treatment plant in California has filed a lawsuit against the where they operate. Construction defects lead to cost overruns at the Modesto Irrigation District’s water treatment plant. Now the question is whether MID or Modesto will be paying for the expenses. Both parties sued Black & Veatch and others, receiving $14.9 million. But the problems have lead to the cost of the water treatment plant expansion ballooning to $107.5 million, a big jump over the planned $62.9 million. Also, instead of being completed in 2009, the completion date has been pushed to 2015. Modesto originally agreed to pay for the expansion, which will increase plant’s ability to provide drinking water to 66 million gallons per day with the agreement that MID would provide the water at the cost of producing it. But now the cost to Modesto of those additional 36 million gallons a day is an additional $44.6 million. Read the court decision
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Hawaii Appellate Court Finds Duty to Defend Group Builders Case

May 10, 2013 — Tred Eyerly
On May 19, 2010, the Hawaii Intermediate Court of Appeals determined construction defect claims did not constitute an occurrence under a CGL policy.Group Builders, Inc. v. Admiral Ins. Co., 123 Haw. 142, 231 P.3d 67 (Haw. Ct. App. 2010) ("Group Builders I"). The appeal in Group Builders I, however, only addressed the duty to indemnify. The ICA has now issued a second decision (unpublished), holding that there is was duty to defend Group Builders on the construction defect claims under Hawaii law, based upon the policy language and the allegations in the underlying complaint. Group Builders, Inc. v. Admiral Ins. Co., 2013 Haw.App. LEXIS 207 (Haw. Ct. App. April 15, 2013). The underlying suit involved allegations by Hilton Hotels Corp. that Group Builders, a subcontractor working on an addition to the hotel, was responsible for mold found after completion of the project. Hilton alleged that the "design, construction, installation, and/or selection of the . . . building exterior wall finish . . . did not provide an adequate air and/or moisture barriers." The counts alleged against Group Builders included breach of contract and negligence. Read the court decision
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Reprinted courtesy of Tred Eyerly
Mr. Eyerly can be contacted at te@hawaiilawyer.com

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Irene May Benefit Construction Industry

September 01, 2011 — CDJ STAFF

Noting that while it wasn’t the $15 billion disaster some predicted, Hurricane Irene still caused quite a bit of damage on its path up the Eastern Seaboard. Martha White, reporting for MSNBC cites Kinetc Analysis Corp. with an estimate of $7 billion in damage. Carl Van Horn, a professor of public policy at Rutgers University expected an initial decline in construction jobs, due to projects delayed due to the storm’s arrival, but he said, “a few weeks later, employment picks up as people rebuild.”

Kinetic says that one unknown is how much of the damage is insured. They expect only $3 billion of damage will be covered by insurance. This would likely put a drag on consumer spending, as homeowners would have to dig into their own pockets to pay for repairs, according to Karl Smith, associate professor of economics and government at the University of North Carolina at Chapel Hill.

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Insurance Attorney Gary Barrera Joins Wendel Rosen’s Construction Practice Group

July 26, 2017 — Garret Murai - California Construction Law Blog
Wendel Rosen’s Construction Practice Group welcomes a new member to our band of merry men (and women), Gary Barrera. Gary, an insurance attorney, has extensive experience with construction defect, property damage, professional liability and environmental claims. He has represented real estate developers and contractors in all aspects of construction defect litigation and has resolved insurance coverage disputes arising out of construction claims on behalf of policyholders. Prior to attending law school, Gary worked as a claims representative and examiner for several insurance carriers and third-party administrators. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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A Court-Side Seat: Citizen Suits, “Facility” Management and Some Nuance for Your Hazard Ranking

September 28, 2020 — Anthony B. Cavender - Gravel2Gavel
Some very interesting and fairly complex environmental law rulings have been released in the past few days. U.S. Supreme Court—Trump, et al. v. Sierra Club, et al. On July 31, 2020, in a 5-to-4 decision, the Supreme Court denied a motion to lift the stay entered by the Court a few days earlier. The earlier action stayed a preliminary injunction issued by the U.S. District Court for the Northern District of California, which had enjoined the construction of a wall along the Southern Border of the United States which was to be constructed with redirected Department of Defense funds. The merits will be addressed by the lower court and perhaps the U.S. Court of Appeals for the Ninth Circuit. U.S. Court of Appeals for the District of Columbia Circuit—Meritor, Inc. v. EPA In a case involving EPA’s administration of the Superfund National Priority List (NPL) of priority Superfund sites requiring expedited cleanup, the court held that EPA had acted in accordance with the law and its implementing rules, and denied relief. Meritor was spun off from Rockwell Corporation, and is responsible for Rockwell’s environmental liabilities, including sites Meritor never operated. In 2016, EPA added the Rockwell International Wheel & Trim facility in Grenada, Miss., to the NPL list. Meritor alleged that this listing was arbitrary and capricious, pointing to EPA’s failure to adequately consider the impact of a mitigation measure added to the facility to address vapor intrusion, a factor EPA must consider in its application of the agency’s hazard ranking system. However, the court was not impressed by these arguments, and denied relief. The court’s discussion of the nuances of the hazard ranking system is very instructive Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

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