Top 10 Take-Aways: the ABA Forum's 2024 Mid-Winter Meeting
February 26, 2024 —
Marissa L. Downs - The Dispute ResolverThe Forum on Construction Law convened last week at Caesars Palace in sunny Las Vegas for its 2024 Mid-Winter Meeting. Carrie Okizaki and David Suchar (along with John Cook, Karen Erger, and countless others) put together a truly outstanding program on power projects. Here are my top 10 take-aways from this unique and insightful event:
10. The demand for power projects is steadily increasing. The increasing demand for power construction projects is being driven chiefly by the need to replace aging infrastructure as well as the desire to develop cleaner and more sustainable generation facilities. The constant demand for more and more electricity is not that surprising but, according to Jeff Richardson (Energy Solutions) and Eric S. Gould (Modus Strategic Solutions), the pipeline market size for power-generation projects in 2028 is expected to reach $10.6 trillion, i.e., double what it was just in 2022.
9. "Net Zero" is the new normal. In December 2021, President Biden issued an executive order proclaiming that, by 2050, the federal government will be a Net-Zero contributor to the climate crisis. To achieve this goal, the greenhouse gasses ("GHGs") released by government operations must be less than (or equal to) the GHGs absorbed/removed from the environment. Other government bodies and private companies alike are adopting similar Net-Zero goals. Because not all of these promises are created equal, Moody’s Investors Services has a tool to help consumers compare and evaluate companies' carbon transition plans. According to panelists, Amanda Schermer MacVey (Venable), Brendan Hennessey (Pillsbury), and Laszlo von Lazar (Black & Veatch), these Net-Zero commitments are likely to result in more rigorous supplier codes of conduct and heightened carbon tracing efforts on construction projects.
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Marissa L. Downs, Laurie & Brennan, LLPMs. Downs may be contacted at
mdowns@lauriebrennan.com
Minneapolis Condo Shortage Blamed on Construction Defect Law
November 20, 2013 —
CDJ STAFFDemand for condos in the Minneapolis, Minnesota area is outstripping demand. Currently inventory of available condos represents less than four months’ worth of sales. But despite the demand, only three condominium buildings are under construction in the Minneapolis metropolitan area.
Some blame this on difficulty in finding financing, where some lenders are looking for projects to be sold before the builders get the money to build what they’ve just sold. Another problem is Minnesota construction defect law. “There are law firms in this town that have filed lawsuit after lawsuit on behalf of homeowners associations alleging construction defects,” said one builder, Kelly Doran, who now builds luxury apartment buildings. “”With that 10-year warranty, there’s no way I would build condos.”
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Appeal of an Attorney Disqualification Order Results in Partial Automatic Stay of Trial Court Proceedings
October 11, 2017 —
Howard M. Garfield & Renata L. Hoddinott - Haight Brown & Bonesteel LLPIn URS Corporation v. Atkinson/Walsh Joint Venture (No. G055271 filed September 26, 2017), Division Three of the Fourth Appellate District dealt with, for the first time, the question of whether an appeal of an attorney disqualification order results in an automatic stay of the trial proceedings and, if so, how far the automatic stay extends.
The underlying action involved a construction dispute between a contractor and subcontractor. During the pendency of that action, one party’s counsel filed a motion to disqualify another party’s counsel based on an alleged misuse of mediation-privilege protected documents. The trial court granted the disqualification motion and the disqualified counsel promptly filed a notice of appeal. The trial court then denied an application to stay proceedings pending the appeal, rejecting the assertion that the appeal automatically stayed the underlying proceedings.
Reprinted courtesy of
Howard M. Garfield, Haight Brown & Bonesteel LLP and
Renata L. Hoddinott, Haight Brown & Bonesteel LLP
Mr. Garfield may be contacted at hgarfield@hbblaw.com
Ms. Hoddinott may be contacted at rhoddinott@hbblaw.com
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Ill-fated Complaint Fails to State Claims Against Broker and FEMA
September 10, 2014 —
Tred R. Eyerly – Insurance Law HawaiiA complaint lodged against the insureds' broker and FEMA was dismissed for failure to state a claim. Lopez v. State Farm Gen. Ins. Co., 2014 U.S. Dist. LEXIS 109803 (E.D. La. Aug. 8, 2014).
The insureds held a Standard Flood Insurance Policy (SFIP) issued by FEMA, but sold by the broker. The insureds alleged that their property was totally destroyed by Hurricane Isaac. FEMA paid the insureds $234,513.02 for damage to their dwelling and $80,566.17 for its contents, for a total of $315,079.19. This was $34,920.81 below the policy limits. The insureds sued, claiming FEMA negligently miscalculated their damages, misvalued their property, and improperly adjusted their claim. The insureds also alleged that the broker failed to properly advise them regarding the nature of their coverage, the true value of their property, or to purchase the correct amount of insurance on their behalf.
The negligent procurement claim against the broker failed because the insureds did not allege any specific facts tending to establish that the broker failed to use reasonable diligence in procuring their insurance. Likewise, the negligent misrepresentation claim against the broker was dismissed. Insurance agents had a duty to supply their customers with correct information, and they could be liable for negligent misrepresentation if they provided incorrect information and an insured was damaged. Here, the insureds did not allege a breach of the duty to supply correct information.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
DC Circuit Approves, with Some Misgivings, FERC’s Approval of the Atlantic Sunrise Natural Gas Pipeline Extension
December 02, 2019 —
Anthony B. Cavender - Gravel2GavelThe U.S. Court of Appeals for the DC Circuit decided the case of Allegheny Defense Project, et al. v. Federal Energy Regulatory Commission on August 2, 2019. In a Per Curiam opinion, the court denied petitions challenging the Commission’s orders permitting the Transcontinental Gas Pipe Line Company’s expansion of an existing natural gas pipeline which extends from northern Pennsylvania across the Carolinas into Alabama. The expansion is called the “Atlantic Sunrise Project.” In February 2017, FERC approved the expansion, and denied various petitions, filed by environmental organizations and affected landowners, who then challenged the decision in the DC Circuit. However, the court concluded, on the basis of the administrative record, that these challenges “cannot surmount the deferential standards of agency review and binding DC Circuit precedent.” Under the law, the Commission must consider whether the projected pipeline project meets a market need, and whether the public benefits outweigh the harms. If both criteria are satisfied, FERC will, as in this instance, issue a certificate authorizing the pipeline’s construction, and that certificate also empowers the certificate holder to exercise eminent domain authority under to the Natural Gas Act when necessary. It was the latter consequence of the FERC’s determinations that caused several Pennsylvania landowners to file their objections with the Commission and seek to stay construction.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Accessibility Considerations – What Your Company Should Be Aware of in 2021
May 03, 2021 —
Heather H. Whitehead - Newmeyer DillionAccessibility claims increased significantly in 2020, with this specific type of ADA-related case increasing by 23% from 2019 to 2020.1 This includes cases filed in federal court and those filed in California state court under the Unruh Act - with a direct reference to violation of the ADA.2
In California alone, a total of 989 cases were filed in 2020, representing almost 30% of all accessibility cases filed in the United States.3 These claims go beyond the traditional complaints related to a website maintained by an organization. While desktop websites dominate the overall number of lawsuit claims nationally, mobile apps continue to get significant attention along with a new trend in video content related claims. These video claims demand that all video have closed captions and audio descriptions.4
The ongoing COVID-19 pandemic has created a surge in the reliance on websites and other platforms to accommodate working from home, online learning, as well as ordering groceries, food or other items online in an effort to stay home and safe. However, along with this substantial increase in demand, many users who rely on accessibility features have found many websites and related mobile applications to be inaccessible for their needs.
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Heather H. Whitehead, Newmeyer DillionMs. Whitehead may be contacted at
heather.whitehead@ndlf.com
More In-Depth Details on the Davis-Bacon Act Overhaul
November 06, 2023 —
Seth C. Wiseman & Angela M. Richie - Construction ExecutiveThe U.S. Department of Labor’s finalization of a
rule updating the Davis-Bacon Act, the federal law that governs how prevailing wages for federal construction projects can be determined, will have a significant impact on contractors and workers alike in the construction industry. The new rule, in effect, adopts the 30% rule, meaning that the prevailing wages must be equal to the wage paid to at least 30% of workers of a particular classification in a particular area. The new rule also implements a new anti-retaliation provision, specifically protecting construction workers who raise concerns about payment practices from adverse employment actions. The timing of this new rule is particularly significant for contractors, as it will likely raise the cost of labor for contractors at a time when the Infrastructure Investment and Jobs Act and the CHIPS Act are providing additional funding for federal projects across the country. Thus, it is important for all parties in the construction industry to understand the updated rule in order to evaluate the short-term impacts on their respective projects and long-term impact on their respective businesses.
Reprinted courtesy of
Seth C. Wiseman & Angela M. Richie, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Wiseman may be contacted at swiseman@grsm.com
Ms. Richie may be contacted at arichie@grsm.com
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Insurer's Motion for Judgment on the Pleadings for Construction Defect Claim Rejected
January 22, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe magistrate judge recommended that the insurer's motion for judgment on the pleadings be denied in a case involving coverage for the insured subcontractor's alleged faulty workmanship. Evanston Ins. Co. v. Sonny Glasbrenner, Inc., 2023 U.S. Dist. LEXIS 190019 (M.D. Fla. Oct. 20, 2023).
Cone & Graham (C&G), the general contractor, subcontracted with Sonny Glasbrenner, Inc. (SGI) to work on the project. The project involved the rehabilitation of a bridge due to deterioration of the existing concrete bridge deck by adding additional cross bracing to further stiffen the steel girders and using special lightweight concrete. C&G contracted SGH to demolish the existing concrete bridge deck. SGI completed the work.
Thereafter, C&G made a demand to SGI for alleged damaged caused by SGI's work. C&G alleged that SGI was negligent in performing the demolition work, causing substantial damage to the existing bridge girders. C&G sued SGI.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com