Can I Be Required to Mediate, Arbitrate or Litigate a California Construction Dispute in Some Other State?
September 19, 2022 —
William L. Porter - Porter Law GroupIt is not uncommon in the construction industry for an out-of-state general contractor to include a provision in a subcontract requiring a California subcontractor to resolve disputes outside the state of California, even though the work is to be performed within California. Fortunately, most California subcontractors are immune from this tactic. California law generally prohibits clauses requiring subcontractors to travel outside California to resolve construction disputes.
California Code of Civil Procedure Section 410.42, [CCP 410.42 Link] renders “void and unenforceable,” any provision in a contract that “purports to require any dispute to be litigated, arbitrated, or otherwise determined outside this state,” so long as the contract is “between the contractor and a subcontractor with principal offices in the state, for the construction of a public or private work of improvement in this state.” Similarly, this law voids any similar contractual term that might prevent the California subcontractor from commencing an action, obtaining a judgment, or resolving its dispute in the courts of California.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Court Rules on a Long List of Motions in Illinois National Insurance Co v Nordic PCL
May 10, 2012 —
CDJ STAFFThe case Illinois National Insurance Co. v Nordic PCL, et al. “involves a dispute about whether insurance benefits are available to a general contractor who built structures that allegedly have construction defects. Plaintiffs Illinois National Insurance Company (‘Illinois National’) and National Union Fire Insurance Company of Pittsburgh, PA (‘National Union’) (collectively, the ‘Insurers’), commenced this action for declaratory relief against Defendant Nordic PCL Construction, Inc., f/k/a Nordic Construction, Ltd. ("Nordic"), on August 23, 2011.”
The court was asked to rule on a long list of motions: “Counterclaim Defendants’ Request for Judicial Notice in Support of Their (1) Motion to Dismiss the Counterclaim and (2) Motion to Strike Portions of the Counterclaim, ECF No. 16 (‘Request for Judicial Notice’); Counterclaim Defendants’ Motion to Dismiss Counterclaim Filed October 24, 2011, ECF No. 14 (‘Motion to Dismiss Counterclaim’); Counterclaim Defendants’ Motion to Strike Portions of the Counterclaim Filed October 24, 2011, ECF No. 15 (‘Motion to Strike’); Third-Party Defendant Marsh USA, Inc.’s Motion to Dismiss or, in the Alternative, Stay Proceedings in Favor of Pending State Action, ECF No. 33 (‘Marsh’s Motion To Dismiss Or Stay’); Defendant and Third-Party Plaintiff Nordic PCL Construction, Inc., f/k/a Nordic Construction Ltd.’s Substantive Joinder to Third-Party Defendant Marsh USA Inc.’s Motion to Dismiss or, in the Alternative, Stay Proceedings in Favor of Pending State Action, ECF No. 36 (‘Nordic’s Joinder’); and Third-Party Defendant Marsh USA, Inc.’s Motion for Judgment on the Pleadings on Counts V and VI of Defendant/Third-Party Plaintiff Nordic PCL Construction, Inc.’s Third-Party Complaint, ECF No. 29 (‘Marsh’s Motion for Judgment on the Pleadings’).”
In result, the court reached the following decisions: “The court GRANTS IN RELEVANT PART the Insurers’ Request for Judicial Notice to the extent it covers matters relevant to these motions; GRANTS IN PART the Insurers’ Motion to Dismiss Counterclaim, but gives Nordic leave to amend the Counterclaim in certain respects; DENIES the Insurers’ Motion to Strike; DENIES Marsh’s Motion To Dismiss Or Stay and Nordic’s Joinder; and GRANTS Marsh’s Motion for Judgment on the Pleadings.”
The court provides a bit of background on the case: “This action arises out of alleged construction defects involving two projects on which Nordic acted as the general contractor. Nordic is a defendant in a pending state court action with respect to one of the projects and says it spent more than $400,000 on repairs with respect to the other project. Nordic tendered the defense of the pending state court action to the Insurers and sought reimbursement of the cost of repairs already performed. The Insurers responded by filing this action to determine their rights under the insurance policies issued to Nordic.”
Furthermore, the court presented a brief procedural history: “The Insurers commenced this declaratory action in this court on August 23, 2011. The Complaint asserts two claims, one seeking a declaration that the Insurers have no duty to provide a defense or indemnification regarding the Safeway Action, the other seeking such a declaration regarding the Moanalua Claims. Along with its Answer, Nordic filed a Counterclaim against the Insurers. The Counterclaim asserts breach of contract, breach of the covenant of good faith and fair dealing, misrepresentations and omissions of material fact, and bad faith, and seeks declaratory relief against the Insurers.”
The procedural history continues: “Nordic also filed a Third-Party Complaint against Marsh, the broker that had procured the Policies from the Insurers for Nordic. Nordic alleges that it reasonably believed that the Policies would provide completed operations insurance coverage for the types of construction defects alleged in the Safeway Action and Moanalua Claims. The Third-Party Complaint asserts breach of contract, negligence, promissory estoppel, breach of fiduciary duties, implied indemnity, and contribution and equitable subrogation.”
In conclusion, “The court GRANTS IN RELEVANT PART the Insurers’ Request for Judicial Notice. With regard to the Insurers’ Motion to Dismiss Counterclaim, the court GRANTS the motion as to Count I (breach of contract), Count II (duty of good faith and fair dealing), Count III (fraudulent and negligent misrepresentation), the portion of Count IV (bad faith) premised on fraud, and Count IV (declaratory relief). The court DENIES the motion as to Count IV (bad faith) that is not premised on fraud. Except with respect to the "occurrence" issue, which the court disposes of here on the merits, and Count V, which concerns only a form of relief, Nordic is given leave to amend its Counterclaim within three weeks of the date of this order. The court DENIES the Insurers’ Motion to Strike, DENIES Marsh’s Motion to Dismiss or Stay and Nordic’s Joinder, and GRANTS Marsh’s Motion for Judgment on the Pleadings with respect to Counts V and VI of the Third-Party Complaint.”
Read the court’s decision…
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WSHB Expands to Philadelphia
July 28, 2016 —
Beverley BevenFlorez-CDJ STAFFWood Smith Henning & Berman LLP (WSHB) announced “the opening of its newest regional office at One Liberty Place, 1650 Market Street, 36th Floor, Philadelphia, Pennsylvania 19103,” according to a press release. Elizabeth Chalik will be the managing partner at the new location. Chalik is “a highly regarded litigator with close to 15 years of trial experience” and her practice has focused on products liability, casualty, toxic tort and transportation litigation. Furthermore, Chalik is admitted to practice law in both New Jersey and Pennsylvania.
“It is fitting that as we celebrate WSHB’s 19th year, we are opening our 19th office,” said Daniel Berman, Firm Chairman and Co-founder. “With this expansion, we continue our pattern of strategic long term growth. That, coupled with Liz’s proven track record and many years in Philadelphia, further expands our ability to better serve our clients in the Northeast.”
Chalik has been recognized on the Super Lawyers List of Rising Stars for three years running.
“I am thrilled to be joining Wood Smith Henning & Berman. WSHB’s long-standing reputation and dedication to their clients drew me to them and I knew that this would be the right place for me,” said Chalik. “I could not be more excited about the opportunity to manage WSHB’s new Philadelphia office!”
WSHB also has offices located in Connecticut, Denver, Fresno, Glendale, Las Vegas, Los Angeles, Miami, New Jersey, New York, Northern California, Orange County, Phoenix, Portland, Rancho Cucamonga, Riverside, San Diego, Seattle and Tampa.
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Green Construction Trends Contractors Can Expect in 2019
May 01, 2019 —
Emily Folk - Construction ExecutiveThe construction industry has come a long way since it was started building homes out of logs and sticks. Modern homes and buildings are marvels of engineering filled with wood, concrete and steel—much of which could be recycled if the building were ever torn down. Green construction is a growing field that will continue to expand in the coming year. What green construction trends can we expect to see in the coming year?
Augmented and Virtual Reality
Augmented reality (AR) is growing more popular every year for games and entertainment, but it also has some applications in green construction. AR and virtual reality (VR) programs, either through a headset or on a smartphone, can be used to improve collaboration between companies, allowing each company to see a virtual overlay of their stage of the project.
For green and eco-friendly construction, it can be used to show how a finished product will look on undeveloped land, making it easier to judge the ecological impact of the project. The use of AR and VR in green construction is still in its infancy, though we will likely start to see more of it in 2019.
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Emily Folk, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Development in CBF Green Building Case in Maryland
August 19, 2015 —
Christopher G. Hill – Construction Law MusingsRemember that case I discussed a while back relating to the Chesapeake Bay Foundation (CBF) building in Annapolis, Maryland? Remember how it was a lawsuit over parallams and failure of those parallams? Do you even remember what a parallam is?
Well, that case was initially dismissed upon the Defendant’s Motion for Summary Judgment because the trial court determined that CBF did not file its lawsuit within the proper time frame after notice of the potential failure of the building materials. Of course, CBF appealed to the Fourth Circuit Court of Appeals under the caption The Chesapeake Bay Foundation, Inc., et. al. v. Weyerhaeuser Company (4th Circuit).
After a great review of the facts of the case, the engineering inspections and reports at issue and the trial court’s ruling, the Fourth Circuit vacated the dismissal and remanded the case for further proceedings. The Court of Appeals reasoned that the district court jumped the gun in dismissing the lawsuit so early in the process because:
a genuine dispute exists as to whether knowledge of the water infiltration problem would have put a reasonable person on notice that the Parallams were susceptible to premature deterioration and that their PolyClear 2000 treatment would not preserve them.
In short, the court ruled that the engineering reports relating to moisture issues would have put CBF on notice of the particular issue of deterioration that was at issue in the litigation.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Eleventh Circuit Affirms Jury Verdict on Covered Property Loss
September 06, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe Eleventh Circuit affirmed the district court's denial of a motion for a new trial after the jury determined the insurer owed policy benefits for hurricane damage to the insured's property. AM Grand Court Lakes LLC v. Rockhill Ins. Co., 2023 U.S. App. 13902 (11th Cir. June 5, 2023).
AM Grand owned a group of buildings that were operated as an assisted living facility. The facility comprised five buildings, each of which was five stories tall. Hurricane Irma caused damage to the property. AM Grand hired a public aduster, Five Star Claims Adjustoing, to assist with its claim. Five Star concluded that the roofs of all five buildings had been damaged in the hurricane and needed to be replaced. The estimated cost was approximately $1,200,000 to replace all the roofs.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Traub may be contacted at
rtraub@tlsslaw.com
New Certification Requirements for Veteran-Owned Small Business Concerns and Service-Disabled Veteran-owned Small Business Concerns Seeking Public Procurement Contracts
March 27, 2023 —
Jennifer Harris, Timothy D. Matheny & Abby Bello Salinas - ConsensusDocsEffective January 1, 2023, Veteran-Owned Small Business Concerns (VOSBs) and Service-Disabled Veteran-Owned Small Business Concerns (SDVOSBs) will be required to obtain Small Business Administration (SBA) certification to participate in any federal government agency VOSB or SDVOSB sole source or set-aside prime contracts. This change originated from a Final Rule (87 FR 73400) published by the SBA on November 29, 2022. As a result of this Final Rule, not only will VOSBs and SDVOSBs be required to re-visit, and in some cases re-apply for various certifications, but these new regulations will also impact joint ventures that rely on their member’s VOSB or SDVOSB status to bid public work.
New Regulation
Previously, a VOSB and SDVOSB could self-certify to perform set-aside and sole source projects on non-U.S. Department of Veteran Affairs (VA) procurements—a VOSB and SDVOSB only needed to be certified by the VA Center for Verification and Evaluation (CVE) when bidding on VA procurements contingent on its status.
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Jennifer Harris, Peckar & Abramson, P.C.,
Timothy D. Matheny, Peckar & Abramson, P.C. and Abby Bello Salinas, Law Clerk, Peckar & Abramson, P.C.
Ms. Harris may be contacted at jharris@pecklaw.com
Mr. Matheny may be contacted at tmatheny@pecklaw.com
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How the Science of Infection Can Make Cities Stronger
November 13, 2023 —
Carlo Ratti & Michael Baick - BloombergEarlier this year, a group of European researchers published a study with a scorching conclusion: As climate change makes heat waves more prevalent across the continent, the city most vulnerable to excess heat deaths is not a warm southern metropolis, but the relatively cool city of Paris.
Why? In part, the reason is that historically hotter cities have developed adaptations for dealing with extreme heat, from the shady architecture of Palermo to the siestas of Madrid. That leaves Paris at the bottom of a deadly learning curve.
This is just one urgent example of why cities need to talk. The world has an incredible stockpile of effective urban policies, but the best ideas are not being adopted quickly or widely enough. Covid-19 taught us all how to slow the spread of viruses: wear masks, avoid large gatherings and take vaccines. To speed the spread of good ideas, we need to take the opposite tack by making urban solutions go viral.
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Carlo Ratti, Bloomberg and
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