Construction Spending Drops in March
May 10, 2013 —
CDJ STAFFReuters reports that construction spending dropped by 1.7 percent in March, bringing it to the lowest level since August, more than wiping out February’s increase of 1.5 percent. Economists had predicted a mild gain of 0.7 percent. Spending fell due to a 4.1 percent drop in public construction projects, bringing it to its lowest in six and a half years.
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A Court-Side Seat: NWP 12 and the Dakota Access Pipeline Easement Get Forced Vacations, while a Potential Violation of the Eighth Amendment Isn’t Going Anywhere
August 10, 2020 —
Anthony B. Cavender - Gravel2GavelHere’s a report on several new decisions made over the past few days.
U.S. SUPREME COURT
U.S. Army Corps of Engineers v. Northern Plains Resources Council
On July 8, 2020, the Court has issued a partial stay of the decision of the U.S. District Court for Montana, which had held that the nationwide use by the Corps of Engineers of its Nationwide Permit 12 to permit oil and gas pipelines must be vacated because the Corps, when it reissued these permits in 2012, failed to follow the requirements of the Endangered Species Act. The breadth of this ruling seems to have surprised and alarmed many past and perspective permittees of the Corps. The stay will not apply to the ongoing Ninth Circuit litigation.
FEDERAL COURTS OF APPEAL
Vega, et al. v. Semple (The U.S. Court of Appeals for the Second Circuit)
On June 29, 2020, the court refused to dismiss a putative class action by past and present inmates of Connecticut’s Garner Correctional Institution who alleged that state correctional officials exposed them to excessive amounts of radon gas in violation of the Eighth Amendment. These officials are alleged to have been “deliberately indifferent” to inmate safety. A 1993 Supreme Court decision, Helling v. McKiney, clearly established the law in this area, and the Garner facility opened in 1992. The defense clams of limited immunity as to federal law violations were rejected.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Five "Boilerplate" Terms to Negotiate in Your Next Subcontract
November 08, 2017 —
James R. Lynch - Ahlers & Cressman PLLCWhether you negotiate your own subcontracts or rely on your lawyer to do the heavy lifting at contract time, a savvy subcontractor should understand the basic purpose of common subcontract provisions, and be prepared to negotiate for fair and commercially reasonable terms. While most sophisticated subcontractors are skilled at negotiating the core terms of a subcontract—scope of work, price, and time—a few simple but less obvious tweaks to common subcontract terms and conditions can go a long way to protect a subcontractor from unfair results when a dispute arises.
From the desk of an experienced construction lawyer, below are the first three of the top five “boilerplate” provisions that subcontractors too often overlook during contract negotiations, along with tips on language to include and to avoid.
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James R. Lynch, Ahlers & Cressman PLLCMr. Lynch may be contacted at
jlynch@ac-lawyers.com
SB800 Not the Only Remedy for Construction Defects
October 01, 2013 —
CDJ STAFF“We anticipate an increase in residential construction defect litigation in response to this ruling,” David Frenznic, a construction defect lawyer at Wilke, Fleury, Hoffelt, Gould & Birney LLP told the Central Valley Business Times. Mr. Frenznic was responding to an August ruling by the California Court of Appeals that found that SB800 does not create the only remedy for homeowners with construction defects.
“Homeowners who suffer actual damage as a result of construction defects have a choice of remedies,” said Mr. Frenznick. SB800 established a shorter statute of limitations for construction defect claims, however, “the ruling makes clear that common law claims are still governed by the longer statues of limitations.”
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BOO! Running From Chainsaw Wielding Actor then Falling is an Inherent Risk of a Haunted Attraction
December 10, 2015 —
Laura C. Williams, R. Bryan Martin & Lawrence S. Zuckerman – Haight Brown & Bonesteel LLPIn Griffin v. The Haunted Hotel, Inc. (filed 10/23/15; certified for publication 11/20/15), the California Court of Appeal, Fourth Appellate District, affirmed summary judgment in favor of the defendant haunted attraction operator holding that the risk of a patron being frightened, then running away and falling is inherent in the fundamental nature of a haunted house attraction. The Court further determined there was no evidence the operator acted recklessly or unreasonably increased such risks beyond those inherent in the attraction.
In October 2011, Plaintiff attended The Haunted Trail attraction, which featured actors in costumes jumping out holding prop weapons to scare patrons walking along a trail through Balboa Park. The Haunted Trail also employed a scare tactic known as the “Carrie” effect, in which the patrons walk through a fake exit and suddenly a chainsaw wielding actor appears and charges at the patrons for one final jolting scare.
It was during this final scene of The Haunted Trail’s “Carrie” effect that Griffin became frightened by an actor brandishing a chainsaw causing him to suddenly run away in fear. As he was fleeing, Griffin fell and injured his wrist.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
Laura C. Williams,
R. Bryan Martin and
Lawrence S. Zuckerman
Ms. Williams may be contacted at lwilliams@hbblaw.com
Mr. Martin may be contacted at bmartin@hbblaw.com
Mr. Zucker may be contacted at lzucker@hbblaw.com
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Accounting for Payments on Projects Became Even More Crucial This Year
September 21, 2020 —
Christopher G. Hill - Construction Law MusingsI discussed
several of the statutory changes affecting the construction industry here at Construction Law Musings in the run-up to July 1, 2020. One of those changes, an amendment to
Virginia Code Section 43-13, may add another arrow to the collection quiver of subcontractors and suppliers. As part of the previously-linked rundown, I highlighted one of the big additions in 2020, namely the amendment making those pesky clauses that let those up the payment chain from you hold money on “this or any other project” void as against public policy.
The other big addition to 43-13 is the change that adds a possible civil cause of action for downstream and unpaid subcontractors and suppliers in the event that funds paid to a general contractor or subcontractor are not first used to pay their downstream contractors and suppliers. Prior to July 1, 2020, this statute provided criminal penalties for such behavior but did not contain the possibility of a civil penalty. The operative language for the change is as follows:
The use by any such contractor or subcontractor or any officer, director, or employee of such contractor or subcontractor of any moneys paid under the contract before paying all amounts due or to become due for labor performed or material furnished for such building or structure for any other purpose than paying such amounts due on the project shall be prima facie evidence of intent to defraud. Any breach or violation of this section may give rise to a civil cause of action for a party in contract with the general contractor or subcontractor, as appropriate; however, this right does not affect a contractor’s or subcontractor’s right to withhold payment for failure to properly perform labor or furnish materials on the project.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Insurer’s Motion for Summary Judgment Based on Earth Movement Exclusion Denied
October 28, 2011 —
Tred R. Eyerly - Insurance Law HawaiiAfter carefully dissecting the earth movement exclusion, the court denied the insurer’s motion for summary judgment. High Street Lofts Condominium Assoc., Inc. v. Am. Family Mut. Ins. Co., 2011 U.S. Dist. LEXIS 109043 (D. Colo. Sept. 26, 2011).
The City of Boulder performed road repair work near High Street’s property, some of which involved the use of a vibrating compactor to compact and set the roadbed. High Street noticed damage to its building, such as cracks in walls, sloping of floors and separations of porches from the building itself. High Street contacted the City of Boulder, who forwarded the complaint to its contractor, Concrete Express, Inc.
High Street also filed a claim with its business insurer, American Family, who denied the claim. American Family relied on an opinion letter by High Street’s engineer. The letter indicated that the damage was the result of "soil consolidation/settlement," in response to the construction activities. Based on this letter American Family concluded the claim was excluded under the policy’s earth movement exclusion.
High Street sued American Family, who moved for summary judgment.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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A Good Examination of Fraud, Contract and Negligence Per Se
February 28, 2018 —
Christopher G. Hill – Construction Law Musings I have spoken on several occasions here at Construction Law Musings about the interplay (or lack thereof)
between fraud and contract as it relates to construction in Virginia. The general rule is that fraud and contract claims don’t mix and
a fraud claim in the face of a contractual one is likely to be dismissed. However,
there are exceptions to this rule as there are to just about every legal rule (we
construction lawyers would be out of a job without them).
A good examination of the interplay between fraud and contract was set out by the Eastern District of Virginia federal court in
Zuberi et al v. Hirezi et al. In that case the Zuberis purchased a home from the Hirezis and later filed suit alleging that the Hirezis concealed serious structural defects that made the house uninhabitable and unsellable. Among the many claims by the Zuberis were those fro fraud, fraudulent inducement, constructive fraud, negligence
per se, violation of the Virginia Consumer Protection Act, and civil conspiracy. In short, they were out for blood.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com