Mediating is Eye Opening
September 17, 2015 —
Christopher G. Hill – Construction Law MusingsAs anyone that reads this construction law blog on any sort of regular basis knows, I am a big advocate for mediation in most cases (construction or otherwise). I took this truly to heard about four years ago when I decided to go through the training and mentorship to become a certified mediator here in Virginia. This training led to many opportunities to act as a mediator in the General District Courts here in Virginia and has recently given me the great privilege of helping parties that were not court referred resolve their disputes.
I’ve discussed this first category of mediations at other times here at Musings, but it is the second category that has opened my eyes lately. The non-court referred mediations are those where the parties actively seek out the assistance of a mediator because they, like me, know that more often than not the control and ability to come to some form of negotiated solution (not to mention short circuiting the litigation process in a way that saves money) is a better way to go than to go through the expensive (though as a construction attorney I acknowledge sometimes necessary) process of 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 Reverses Attorneys’ Fee Award to Performance Bond Sureties in Dispute with Contractor arising from Claim against Subcontractor Performance Bond
February 27, 2019 —
CDJ STAFFOn October 26, 2018, the United States Court of Appeals for the Eleventh Circuit (the “Eleventh Circuit”) issued a decision which reversed an award of prevailing party attorneys’ fees to performance bond sureties in their dispute with a contractor arising from the contractor’s claim against a subcontractor’s performance bond. Had the lower court’s decision been affirmed, the performance bond sureties would have been able to recover prevailing party attorneys’ fees against the contractor even though they were not parties to the underlying subcontract and the subcontract did not contain a prevailing party attorneys’ fee provision.
The underlying case is complicated and arose from the construction of Brickell CityCentre in Miami. Americaribe-Moriarty JV (the “Contractor”) asserted a claim against a performance bond procured by a defaulted subcontractor and issued by International Fidelity Insurance Company and Allegheny Casualty Company (collectively, the “Sureties”). The Sureties filed a declaratory judgment action against the Contractor in the United States District Court for the Southern District of Florida (the “District Court”), seeking a declaration that the Contractor failed to perfect its claim against the performance bond.
Reprinted courtesy of
Gary M. Stein, Peckar & Abramson and
K. Stefan Chin, Peckar & Abramson
Mr. Stein may be contacted at gstein@pecklaw.com
Mr. Chin may be contacted at kschin@pecklaw.com
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Bats, Water, Soil, and Bridges- an Engineer’s dream
December 31, 2014 —
Melissa Dewey Brumback – Construction Law in North CarolinaWant to know how bats may affect your engineering plans? Want to hear about cool new bridges? Read on.
Over the past month, I’ve had the pleasure of attending two events hosted by the North Carolina Chapter of the ACEC (American Council of Engineering Companies). The first of these was the Joint Transportation Conference, held in conjunction with the NC DOT. The second was the annual ACEC Engineering Excellence Awards. At both events, I learned interesting information that engineers should know. Today, I will discuss the Transportation Conference, including some new regulations and unusual design methods. I will save the highlights from the Excellence Awards for later this week.
1. It’s a cave, it’s a bat, it’s bats, man!
Did you know that your future bridge project may be affected by the Northern Long-Eared Bat? It’s true. Right now, the federal government is considering listing the bat on the Endangered Species List, due to the 98-99% mortality rate the bats are experiencing due to “white nose syndrome”. Over 1,700 projects in North Carolina could be impacted, including work on bridges, culverts, abandoned buildings, and guardrails–essentially, any activity involving tree clearing, structure demolition/removal, or structure maintenance. On November 26th, 2014, the US Fish and Wildlife Service extended the comment period to discuss the implications of listing the bat on the endangered species list. If the bat is listed, there is no grandfathering of projects. All projects will immediately be required to engage in protective activities. Stay tuned, but be aware that your transportation projects could be affected starting sometime next year.
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Melissa Dewey Brumback, Construction Law in North CarolinaMs. Brumback may be contacted at
mbrumback@rl-law.com
Lumber Drops to Nine-Month Low, Extending Retreat From Record
August 30, 2021 —
Marcy Nicholson - BloombergLumber futures slid to the lowest in more than nine months after sawmills ramped up production and demand from builders stabilized.
September futures in Chicago fell as much as 4.4% to $482.90 per thousand board feet, the lowest for a most-active contract since Oct. 30. Prices have dropped more than 70% from the record high reached just three months ago.
The tumble marks a stark turnaround for the common building material after strong U.S. construction demand during the pandemic spurred a surge in orders for lumber, causing prices to more than quadruple to their May peak and fueling inflation concerns. Sawmills have since increased output, and a shortage of other building supplies such as siding and windows has slowed the pace of construction, said Brian Leonard, an analyst with RCM Alternatives.
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Marcy Nicholson, Bloomberg
Too Costly to Be Fair: Texas Appellate Court Finds the Arbitration Clause in a Residential Construction Contract Unenforceable
November 21, 2022 —
Gus Sara - The Subrogation StrategistIn Cont’l Homes of Tex., L.P. v. Perez, No. 04-21-00396-CV, 2022 Tex. App. LEXIS 7691, the Court of Appeals of Texas (Appellate Court) considered whether the lower court erred in refusing to enforce an arbitration clause in a construction contract between the parties. The Appellate Court considered the costs of the arbitration forum required by the contract in the context of the plaintiffs’ monthly household income. The court also compared the arbitration cost to the estimated cost of litigating the dispute. The court held that the arbitration clause was substantively unconscionable on the grounds that the arbitration costs were not affordable for the plaintiffs and not an “adequate and accessible substitute to litigation.” The Appellate Court affirmed the lower court’s decision denying the defendant’s motion to compel arbitration.
The plaintiffs, Giancarlo and Krystle Perez (collectively, the Perezes), hired the defendant, Continental Homes of Texas, LP d/b/a Express Home (Express Homes), to build a new home in San Antonio. Express Homes provided its standard contract, which included a binding arbitration clause. The clause stated that every potential dispute between the parties occurring before and after the closing of the purchase of the home was subject to binding arbitration, to be administered and conducted by the American Arbitration Association (AAA). The clause also stated that the costs of the arbitration were to be split by the parties.
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Gus Sara, White and Williams LLPMr. Sara may be contacted at
sarag@whiteandwilliams.com
Peckar & Abramson Once Again Recognized Among Construction Executive’s “Top 50 Construction Law Firms™”
July 02, 2024 —
Peckar & Abramson, P.C.Peckar & Abramson, P.C. (P&A) is pleased to announce that it has once again been ranked among the top of Construction Executive’s (CE) “The Top 50 Construction Law Firms™.” P&A has been recognized in this manner since 2019, the inaugural year of the publication’s rankings.
According to CE, its 2024 ranking was the result of a rigorous and comprehensive survey that invited numerous U.S. law firms with a construction practice to participate. The data collected focused on unique metrics such as the firm’s construction practice, number of attorneys and clients, and year of establishment. CE’s algorithm meticulously weighed these factors, among others, to determine the ranking, ensuring the credibility and accuracy of the recognition.
Firm Chair
Steven M. Charney commented, “We are honored to be recognized as one of Construction Executive’s “Top 50 Construction Law Firms.” This recognition serves as a resounding testament to our commitment to the construction industry and our team’s hard work and dedication. We remain committed to providing exceptional legal services to our clients and striving for excellence in all we do.”
The complete rankings and profile are available
here.
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Peckar & Abramson, P.C.
Construction Litigation Roundup: “How Bad Is It?”
September 25, 2023 —
Daniel Lund III - LexologyHow bad is it?
“Not that bad,” said an Illinois federal court to a surety which was complaining that its subcontract performance bond terms had not been satisfied by the obligees on the bonds (the general contractor and the building owner).
In response to $3.6 million demand by the obligees on the performance bond, the surety filed an action in federal court in Illinois seeking to have the court declare that the surety had no further obligation on its performance bond. The surety urged that the obligees had not fulfilled the prerequisite requirements in the bond to make a claim on the bond (which, although the court never identified the bond form, was a bond form that closely resembled the AIA A312-2010 performance bond).
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Toolbox Talk Series Recap - The Mediator's Proposal
January 21, 2025 —
Douglas J. Mackin - The Dispute ResolverIn our final edition of the year of Division 1's Toolbox Talk Series on December 19, 2024,
Matthew Argue and
Gene Witkin discussed the use of the Mediator’s Proposal to bridge any final gaps to settlement between parties to a mediation. For those unfamiliar, a Mediator’s Proposal is a settlement proposal that the mediator makes to all parties to the dispute simultaneously. Each party then advises the mediators in confidence whether they accept or reject the proposal. The Mediator will communicate to all the parties that the Mediator’s Proposal is accepted only if all parties accept.
Argue and Witkin emphasized that the Mediator’s Proposal is not a shortcut and should not be used simply to split the difference. Instead, it is a tool available to the mediator to push the parties to resolution after they have had robust negotiations, understand the strengths and weaknesses of the positions of each side, and have made progress towards at least getting within range of one another. A successful Mediator’s Proposal depends on the mediator (and the parties) having sufficient information to make a credible recommendation and creating an environment where all parties will consider the Mediator’s Proposal in good faith.
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Douglas J. Mackin, Cozen O’ConnorMr. Mackin may be contacted at
dmackin@cozen.com