Blue Gold: Critical Water for Critical Energy Materials
October 24, 2022 —
Robert A. James & Ashleigh Myers - Gravel2Gavel Construction & Real Estate Law BlogAs demand increases for low-carbon technologies to power the energy transition, the acquisition of critical materials—so-called given their integral role in the transition of energy activities—is becoming increasingly important. As described in our previous post, such critical materials include rare earth elements (REE), lithium, nickel and platinum group metals. In short, the transition endeavors to reduce use of one non-renewable resource—fossil fuel—by significantly ramping up our use of other non-renewable resources. While critical material discussions have largely centered on the availability and economic extractability of the minerals themselves, Pillsbury is also counseling on the other resources needed to bring the materials to market at the scales required for our decarbonization goals.
Chief among these resources is water. The extraction, processing and manufacture of critical materials into low-carbon technologies all require significant volumes of water. For example, up to 5,000 gallons of water are needed to produce one ton of lithium. Critical materials are often found in arid climates that are already experiencing water stress (such as the “lithium triangle” of Argentina, Bolivia and Chile, and copper in Chile), or in areas experiencing conflict and challenges to water development (such as cobalt production in the Democratic Republic of the Congo). In the U.S., development potential resides largely in the water-constrained western and southwestern states, such as Arizona (copper), California (REE), New Mexico (copper, REE), Texas (REE), Utah (magnesium, lithium, platinum, palladium, vanadium, copper), and Wyoming (REE, platinum, titanium, vanadium).
Reprinted courtesy of
Robert A. James, Pillsbury and
Ashleigh Myers, Pillsbury
Mr. James may be contacted at rob.james@pillsburylaw.com
Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com
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The Anatomy of a Construction Dispute- The Claim
January 12, 2015 —
Christopher G. Hill – Construction Law MusingsA new year brings with it promise and challenges. The promise is a relatively clean slate and the thought that 2015 will be a great year for construction professionals and those that assist them. The challenges come from the almost inevitable issues that can arise on a construction site with its many moving parts and enough potential pitfalls to make even the most optimistic construction attorney, contractor, subcontractor or supplier think that Murphy was an optimist.
In order to assist with the potential challenges, this post will be the first in a series of “musings” on the best way to handle a payment dispute arising from a construction contract. This week’s post will discuss what the first steps should be once a payment dispute or claim arises. We’ll assume that you, as a construction contractor, have taken early advantage of the services of a construction lawyer and have carefully reviewed your contract for issues before signing that contract.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Florida Former Public Works Director Fined for Ethics Violation
April 09, 2014 —
Beverley BevenFlorez-CDJ STAFFHiram Siaba, formerly Miami Lake, Florida’s public works director, has been fined for allegedly violating “an ethics ordinance that prevents public employees from doing business with former employers for a two-year period,” according to the Miami Herald. A few months prior to taking the job with the city, Siaba had worked part-time for Ballarena Construction. Siaba awarded Ballarena Construction “more than 10 projects that fell below the $25,000 threshold for awarding contracts without going to the Town Council for approval.”
Ballarena had also been awarded a million-dollar youth center project, which “came to a halt last year” when town officials alleged that structural defects were discovered during an inspection. Miami Lakes is currently negotiating with Ballarena’s surety company to attempt to finish the project.
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Oregon Courthouse Reopening after Four Years Repairing Defects
April 01, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Courthouse Square in Marion County, Oregon is due to reopen after four years and nearly $23 million of repair costs to fix structural defects, according to the Statesman Journal. The square includes a courthouse building and bus mall, and is jointly owned by the county and transit district.
Two years after the Courthouse Square had been built, cracks were observed “in the building’s walls” and “paving stones on the bus mall shifted and settled.” A construction defect suit was filed in 2006.
However, the situation worsened in July of 2010 when “engineers determined that the entire complex was dangerous,” according to the Statesman Journal. “Building safety officials gave Courthouse Square’s occupants 60 days to move out, forcing county and transit district operations into temporary leased space.”
Now that the structural repairs have been completed, Dave Clark, project manager with Structural Preservation Systems LLC (the company awarded the repair contract), stated that the building’s structure is now stronger than most buildings. “If there’s an earthquake, come to this building,” Clark said.
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General Indemnity Agreement Can Come Back to Bite You
October 21, 2019 —
Christopher G. Hill - Construction Law MusingsI talk about payment bonds often here at Construction Law Musings. I talk a bit less about performance bonds and even less about the General Indemnity Agreements (GIA) that are signed by companies and their principals as part of the agreement between a construction company and its bonding company for the provision of these bonds. However, this does not mean that these GIA’s are not important. In fact, these are the agreements that allow a bonding provider to recoup any money paid out pursuant to either a payment or performance bond.
A 2018 case illustrates their importance. In Allegheny Cas. Co. v. River City Roofing, LLC, the Court considered a claim by Allegheny seeking both specific performance of the collateral agreement and reimbursement of certain expenses and investigative costs expended by Allegheny pursuant to its performance bond. Allegheny sought to be reimbursed for certain payments for siding work, investigative costs, and costs spent enforcing the GIA. Allegheny further sought to force the defendants to post sufficient collateral. To do so, Allegheny sued in the Eastern District of Virginia and then moved for summary judgment stating that the GAI uneuivocally required such a result due to the good faith payment for the siding work and the plain language of the GIA.
In response, the Defendants, River City Roofing and its principals that had personally guaranteed the indemnity, argued that the GIA did not apply to the siding work because only the roofing contract was subject to the performance bond and that any bond claims for which collateral was demanded were inchoate and therefore not proper for specific performance.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Safety Guidance for the Prevention of the Coronavirus on Construction Sites
May 25, 2020 —
Heather Whitehead - Newmeyer DillionAlthough construction projects are generally allowed to proceed under most COVID-19 stay at home orders, owners and contractors need to know how to proceed safely on their construction sites. Not only do workers and others on site need to be protected, but implementation of these protocols is also critical to avoid potential liabilities. Last week, the California Department of Industrial Relations – Division of Occupational Safety & Health (CAL/OSHA) released guidance regarding safety and health procedures to prevent the spread of COVID-19 at construction sites. A link to the CAL/OSHA Safety and Health Guidance is provided here.
While the guidance states that it is not imposing any new legal obligations, it is imperative for businesses to not only be aware of these safety practices, but to incorporate these practices as appropriate on each construction site to protect its employees as well as subcontractors, suppliers and others who may be present on site. Otherwise, owners and contractors face potential exposure to regulatory action, including potential penalties and other liabilities, if they fail to properly incorporate these guidelines into the Injury and Illness Prevention Program (IIPP) at each construction site. Now is the time to update your current Injury and Illness Prevention Program (IIPP) to include recommended protocols for preventing the spread of the Coronavirus.
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Heather Whitehead, Newmeyer DillionMs. Whitehead may be contacted at
heather.whitehead@ndlf.com
Insurance Companies Score Win at Supreme Court
December 26, 2022 —
Mason Fletcher & Ryan Sternoff - Ahlers Cressman & Sleight PLLCIn 2011, the Washington State Department of Transportation (“WSDOT”) contracted with Seattle Tunnel Partners, a joint venture of Dragados USA and Tutor Perini (“STP”) to construct a tunnel (“SR 99 Tunnel”) to replace the dilapidated Alaska Way Viaduct. STP obtained a builder’s “all-risk” insurance policy (“Policy”) from Great Lakes Reinsurance (UK) PLC and several other insurers (collectively, the “Insurers”) which insured against damage to both the project and the tunnel boring machine popularly known as Big Bertha (“Bertha”).
Bertha began excavating in July 2013 but broke down a few months later when the machine stopped working. Work did not resume on the project until December 2015. WSDOT and STP tendered insurance claims for the losses associated with the delays and breakdown of Bertha but the Insurers denied coverage. Thereafter, WSDOT and STP sued.
The Insurers moved the trial court for partial summary judgment to resolve some, but not all, of the coverage disputes. In a unanimous decision, the Washington State Supreme Court affirmed the trial court and Court of Appeals, and held that insurance companies do not have to reimburse WSDOT and STP for costs accrued during a two-year Project delay, under certain provisions of the insurance policies.
Reprinted courtesy of Mason Fletcher, Ahlers Cressman & Sleight PLLC and
Ryan Sternoff, Ahlers Cressman & Sleight PLLC
Mr. Sternoff may be contacted at ryan.sternoff@acslawyers.com
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CA Supreme Court Expands Scope of Lawyers’ Statute of Limitations to Non-Legal Malpractice Claims – Confusion Predicted for Law and Motion Judges
August 26, 2015 —
David W. Evans & Stephen J. Squillario – Haight Brown & Bonesteel LLPIn Lee v. Hanley (S220775 – Filed 8/20/2015), the California Supreme Court clarified the meaning of Code of Civil Procedure section 340.6 by holding that its limitations period applies to claims against attorneys “whose merits necessarily depend on proof that an attorney violated a professional obligation in the course of providing professional services.” Although it resolved a district split by finding that the statute governs for non-legal malpractice claims against attorneys including those of non-clients, by having the statute’s applicability “turn on the conduct alleged and ultimately proven, not on the way the complaint was styled,” this 5-2 decision also increased the specter of creative pleading and lengthy litigation.
In Lee, the client had advanced $120,000 to cover attorney’s fees, costs and expert witness fees for the underlying litigation. After the case settled, the attorney advised the client that she had a credit balance of approximately $46,000. In response to her demand for a refund, the attorney then advised the client that she did not have a credit balance. More than one year later, the client filed suit to recover the $46,000, plus interest. The trial court sustained the attorney’s demurrer based on the one-year statute of limitations in section 340.6. The appellate court, however, reversed, reasoning that the client’s claim could be construed as one for conversion, in which case section 340.6 would not apply.
Reprinted courtesy of
David W. Evans, Haight Brown & Bonesteel LLP and
Stephen J. Squillario, Haight Brown & Bonesteel LLP
Mr. Evans may be contacted at devans@hbblaw.com
Mr. Squillario may be contacted at ssquillario@hbblaw.com
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