Seattle Washington Building Expert Directory

Dispute Resolution Provision in Subcontract that Says Owner, Architect or Engineer’s Decision Is Final

March 29, 2021 — David Adelstein - Florida Construction Legal Updates
In subcontracts, it is not uncommon to see a provision that says something to the effect: Should any dispute arise between the parties respecting the true construction or interpretation of the Plans, Specifications and/or the Contract Requirements, the decision of the Owner or the Owner’s designated representative as set forth in the General Contract shall be final. This is a provision in a subcontract dealing with dispute resolution, typically when there is a dispute as to whether the subcontractor is performing extra-contractual or base contract work regarding an “interpretation of the Plans, Specifications, and/or the Contract Requirements.” It is not uncommon for there to be a dispute as to whether certain work is within the subcontractor’s scope of work or outside the subcontractor’s scope of work and subject to a change order. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Supreme Court Holds Arbitrator can Fully Decide Threshold Arbitrability Issue

March 18, 2019 — David Adelstein - Florida Construction Legal Updates
The United States Supreme Court recently decided parties to a contract can agree, under the Federal Arbitration Act, an arbitrator, rather than a court, can fully resolve the initial arbitrability question. Henry Schein, Inc. v. Archer and White Sales, Inc., 2019 WL 122164 (2019). The arbitrability question is whether the dispute itself is subject to arbitration under an arbitration provision. Parties that do not want to arbitrate try to circumvent this process by filing a lawsuit and asking the court to determine the threshold arbitrability question. In Henry Schein, Inc., the contract at-issue provided: This Agreement shall be governed by the laws of the State of North Carolina. Any dispute arising under or related to this Agreement (except for actions seeking injunctive relief and disputes related to trademarks, trade secrets, or other intellectual property) shall be resolved by binding arbitration in accordance with the arbitration rules of the American Arbitration Association. The place of arbitration shall be in Charlotte, North Carolina. The plaintiff in this case asserted a claim for injunctive relief (among other claims) and argued that, therefore, the dispute is not subject to arbitration based on the exception in the provision. The initial, threshold issue became whether the dispute was subject to arbitration and, importantly, who decides this issue. The Court further looked at whether a trial court can resolve this issue under the “wholly groundless” exception, i.e.,the court can decide the issue if the argument for arbitration is wholly groundless. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

'There Was No Fighting This Fire,' California Survivor Says

September 14, 2020 — The Associated Press (Brian Melley & Terence Chea) - Bloomberg
Berry Creek, Calif. (AP) -- John Sykes built his life around his cabin in the dense woods of Northern California. He raised his two children there, expanded it and improved it over time and made it resilient to all kinds of disaster except fire. So when the winds started howling Tuesday and the skies became so dark from smoke that he had to turn on his lights at midday, he didn’t hesitate to leave it all behind in an instant before any evacuation order. With the disaster two years ago in nearby Paradise, in which 85 people perished in the deadliest and most destructive fire in modern state history, still fresh on his mind, Sykes got his wife and a friend into his car and left with only a change of clothes each. “All I could do is look in the rear view mirror and see orange sky and a mushroom cloud and that told me it was hot and to keep going,” Sykes said Friday. “It was a terrifying feeling.” Read the court decision
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Reprinted courtesy of Bloomberg

Hunton Insurance Practice, Partners Recognized by The Legal 500

July 16, 2023 — Hunton Insurance Recovery Blog
Hunton Andrews Kurth LLP’s insurance practice was recognized among the top policyholder insurance practices nationally, receiving a Band 2 national ranking in the 2023 United States Edition of The Legal 500 for Advice to Policyholders. The Legal 500 ranks the nation’s top law firms, practices, and lawyers, highlighting those that consistently provide “the most cutting edge and innovative advice to corporate counsel … based on feedback from 300,000 clients worldwide, submissions from law firms and interviews with leading private practice lawyers, and a team of researchers who have unrivalled experience in the legal market.” Bolstering the team’s national recognition, two of its partners received individual accolades. Lorie Masters was named in The Legal 500 Hall of Fame and Andi DeField was named a Next Generation Partner, while team head Syed Ahmad and partners Walter Andrews, Michael Levine and Geoffrey Fehling also were recognized. Read the court decision
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Reprinted courtesy of Hunton Andrews Kurth LLP

Construction Industry on the Comeback, But It Won’t Be the Same

November 20, 2013 — CDJ STAFF
“The majority of contractors have readjusted and there’s cautious optimism, but there’s a new normal in construction,” Cam Dickinson, senior vice president of the construction group of Woodruff-Sawyer. But he cautioned that “it’s not going to come back like it was in the good old days.” Some places, like the Miami or New York City areas are doing well, although New York City has the perhaps unique advantage of its market. Brian Schofeld, Crystal & Co.’s senior managing director and construction practice leader noted that for one New York City project, “the penthouse went for the full value of the gut renovation and that left the other 17 floors as a profit.” Further signs of life are that “the residential private side is going gangbusters in the Bay Area and downtown San Francisco,” according to Bret Lawrence, vice president of construction for Woodruff-Sawyer, but he notes that “it’s nothing like it was.” Read the court decision
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Nevada Supreme Court Reverses Decision against Grader in Drainage Case

June 30, 2011 — CDJ STAFF

The Nevada Supreme Court has issued an opinion in the case of Rayburn Lawn & Landscape Designers v. Plaster Development Corporation, reversing the decision of the lower court and remanding the case for a new trial.

The case originated in a construction defect suit in which Plaster Development Corporation was sued by homeowners. Plaster filed a third-party complaint against its subcontractor, Reyburn. The testimony of Reyburn’s owner was considered to be admission of liability and so the court limited the scope of Reyburn’s closing argument and did not allow the jury to determine the extent of Reyburn’s liability. Reyburn appealed.

Plaster, in their case, cited California’s Crawford v. Weather Sheild MFG, Inc. The court held the application of these standards, but noted that the “an indemnitor’s duty to defend an indemnitee is limited to those claims directly attributed to the indemnitor’s scope of work and does not include defending against claims arising from the negligence of other subcontractors and the indemnittee’s own negligence.”

On the matter of law against Reyburn, the court concluded, “Given the conflicting evidence at trial as to whether Reyburn’s work was implicated in the defective retaining walls and sidewalls, and viewing the evidence and inferences in Reyburn’s favor, we conclude that a reasonable jury could have granted relief in favor of Reyburn.” The Nevada Supreme Court conduced that the district court should not have granted Plaster’s motion for judgement.

Further, the Nevada Supreme Court found that the district court should have apportioned the fees and costs to those claims directly attributed to Reyburn’s scope of work, “if any,” and should not have assigned all attorney costs and court fees to Reyburn.

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AB 3018: Amendments to the Skilled and Trained Workforce Requirements on California Public Projects

February 18, 2019 — Alex R. Bagdassarian & Nathan A. Cohen - Peckar & Abramson
What California Contractors Need To Know About AB 3018 California contractors used to face limited consequences for non-compliance with the state’s skilled and trained workforce requirements on public works projects. A sea-change to the statutory landscape went into effect on January 1, 2019 as a result of Assembly Bill No. 3018 (“AB 3018”).1 The Code re-defines what constitutes a skilled/trained workforce by eliminating existing exemptions, strengthens monthly reporting guidelines and agency oversight, and empowers the Labor Commissioner and public agencies with enforcement tools that include monetary penalties and debarment. Contractors who fail to institute a program to comply with AB 3018’s reporting requirements do so at their peril. What Does The 30% Requirement Mean? Previously, in order to comply with the skilled workforce requirements2, 30% of skilled journeypersons had to be graduates of an apprenticeship program, except for certain listed trades which were exempt from the apprenticeship percentage requirement3. AB 3018 eliminates this exception for the listed occupations and requires 30% of all trades to be comprised of apprenticeship program graduates. Reprinted courtesy of Alex R. Baghdassarian, Peckar & Abramson and Nathan A. Cohen, Peckar & Abramson Mr. Baghdassarian may be contacted at Abaghdassarian@pecklaw.com Mr. Cohen may be contacted at ncohen@pecklaw.com Read the court decision
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Mortgage Battle Flares as U.K. Homebuying Loses Allure

January 28, 2015 — Neil Callanan and Richard Partington – Bloomberg
U.K. banks, which spent six years repairing their balance sheets after the 2008 property crash, want to advance more credit to homebuyers. Borrowers aren’t as enthusiastic. Cheap funding costs and low default rates have made homebuyers attractive to lenders in recent years, boosting returns for companies such as Nationwide Building Society and Lloyds Banking Group Plc. (LLOY) Now, with demand for property cooling, they’re having to fight harder for business. Interest rates on the most popular mortgages fell to record lows in December, according to the Bank of England. Mr. Callanan may be contacted at ncallanan@bloomberg.net; Mr. Partington may be contacted at rpartington@bloomberg.net Read the court decision
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Reprinted courtesy of Neil Callanan and Richard Partington, Bloomberg

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