Seattle Washington Building Expert Directory

Prison Time and Restitution for Construction Fraud

February 14, 2013 — CDJ STAFF
Federal prosecutors have obtained prison sentences and fines for the two leaders of a construction kickback scheme. Others are awaiting sentencing. The Chicago Sun-Times reports that John Paderta the former president of Krahl Construction has been sentenced to five years in prison and must pay $10 million in restitution. His executive vice president, Doug Harner will be spending five years in prison and has been ordered to pay $9.6 million in restitution. Paderta and Harner overbilled two clients on renovation projects, giving kickbacks to employees at the client companies. Two employees of these client companies have pled guilty. A further five employees of the three companies have admitted that they were involved in the fraud. They are yet to be sentenced. Read the court decision
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Pallonji Mistry, Indian Billionaire Caught in Tata Feud, Dies at 93

August 15, 2022 — Bhuma Shrivastava - Bloomberg
Pallonji Mistry, the Indian-born billionaire whose engineering empire built luxury hotels, stadiums, palaces and factories across Asia and whose family’s epic showdown with the Tata Group sparked India’s biggest corporate feud, has passed away in Mumbai. He was 93. A company spokesperson confirmed the death of the Indian tycoon after social media posts on the news spread. Mistry and his family control the Shapoorji Pallonji Group, which started more than 150 years ago and today employs more than 50,000 people in over 50 countries, according to its website. Its landmark projects include the Reserve Bank of India and the Oberoi Hotel in Mumbai and the blue-and-gold Al Alam palace for the Sultan of Oman. Read the court decision
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Reprinted courtesy of Bhuma Shrivastava, Bloomberg

Virtual Jury Trials: The Next Wave of Remote Legal Practice

July 13, 2020 — David R. Zaslow & Mark Paladino - White and Williams
One of the most obvious and unavoidable results of the COVID-19 crisis has been the postponement of jury service and, by extension, all jury trials. Given the inherent difficulties of convening juries in a world of social distancing, it is likely that multiple jurisdictions will be unable to conduct live jury trials for at least the next several months. Recognizing the mounting delay and substantial docket backlog that is attendant to several months without jury trials, one court most recently permitted the litigants, upon consent, to try a new innovation – the nation’s first virtual jury trial conducted entirely on the Zoom platform. More than two dozen potential jurors in Collin County, Texas attended jury selection from home by smartphone, laptop, and tablet, a process that was streamed live on YouTube. The presiding judge occasionally provided prospective jurors technical advice on how to best use their devices. Once selected, the jurors virtually attended a one-day, “summary jury trial” of an insurance dispute in which they heard a condensed version of the case and delivered a non-binding verdict. The parties were then able to gauge how their cases would fare before a jury in a full-scale trial and, with that insight, agreed to proceed to a mediation in an attempt to reach a resolution. Court officials further touted the abbreviated, non-binding experience as an ideal test for the viability of remotely holding jury trials that would result in a final judgment. This real-world test, albeit in a non-binding exercise, may be an indication of things to come, as courts in Indiana and Arizona have already communicated an intention to conduct jury trials remotely once able. Reprinted courtesy of David R. Zaslow, White and Williams and Mark Paladino, White and Williams Mr. Zaslow may be contacted at zaslowd@whiteandwilliams.com Mr. Paladino may be contacted at paladinom@whiteandwilliams.com Read the court decision
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Turning Back the Clock: DOL Proposes Previous Davis-Bacon Prevailing Wage Definition

April 19, 2022 — David Chidlaw & Carina Novell - Sheppard Mullin Construction & Infrastructure Law Blog
On March 11, 2022, the Department of Labor (“DOL”) proposed reverting the definition of “prevailing wage” under the Davis-Bacon Act to a definition used over 40 years ago. According to the DOL, the proposal is meant to modernize the law and “reflect better the needs of workers in the construction industry and planned federal construction investments.”[1] Brief History Lesson The Davis-Bacon Act was enacted in 1931 and requires the payment of locally prevailing wages and fringe benefits on federal construction contracts. The law applies to workers on contracts in excess of $2,000 entered into by federal agencies and the District of Columbia for the construction, alteration, or repair of public buildings or public works.[2] From the 1930s to the early 1980s, the DOL used the following three-step process to define prevailing wage:

Any wage rate paid to a majority of workers.
If there was no wage rate paid to a majority of workers, then the wage rate paid to the greatest number of workers, provided it was paid to at least 30 percent of workers (i.e., the “30 percent rule”).
If the 30 percent rule was not met, the weighted average rate.

Reprinted courtesy of David Chidlaw, Sheppard Mullin and Carina Novell, Sheppard Mullin Mr. Chidlaw may be contacted at dchidlaw@sheppardmullin.com Ms. Novell may be contacted at cnovell@sheppardmullin.com Read the court decision
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Arbitration Provisions Are Challenging To Circumvent

May 13, 2019 — David Adelstein - Florida Construction Legal Updates
Arbitration provisions are enforceable and they are becoming more challenging to circumvent, especially if one of the parties to the arbitration agreement wants to arbitrate a dispute versus litigate a dispute. Remember this when agreeing to an arbitration provision as the forum for dispute resolution in your contract. There is not a one-size-fits-all model when it comes to arbitration provisions and how they are drafted. But, there is a very strong public policy in favor of honoring a contractual arbitration provision because this is what the parties agreed to as the forum to resolve their disputes. By way of example, in Austin Commercial, L.P. v. L.M.C.C. Specialty Contractors, Inc., 44 Fla.L.Weekly D925a (Fla. 2d DCA 2019), a subcontractor and prime contactor entered into a consultant agreement that contained the following arbitration provision:

Any controversy or claim arising out of or relating to this Agreement or the breach thereof shall be subject to the dispute resolution procedures, if any, set out in the Prime Contract between [Prime Contractor] and the [Owner]. Should the Prime Contract contain no specific requirement for the resolution of disputes or should the [Owner] not be involved in the dispute, any such controversy or claim shall be resolved by arbitration pursuant to the Construction Industry Rules of the American Arbitration Association then prevailing, and judgment upon the award by the Arbitrator(s) shall be entered in any Court having jurisdiction thereof.

The prime contract between the owner and prime contractor did not require arbitration. 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

Soldiers Turn Brickies as U.K. Homebuilders Seek Workers

May 20, 2015 — Neil Callanan – Bloomberg
After 21 years in the British Army that included tours of duty in Afghanistan and Iraq, Ross Wilson was offered a buyout. Britain’s shortage of construction workers allowed him to trade desert sand for muddy building sites in the north of England. Wilson, 38, is working as an apprentice bricklayer for homebuilder Persimmon Plc, which will train more than 300 former soldiers this year because of the country’s shortage of skilled workers. The government formed after next month’s national election will have to urgently address the lack of new homes, according to the Royal Institution of Chartered Surveyors. Persimmon’s Combat to Construction program is the latest effort by the industry to increase output as the shortage sends asking prices to record highs. Read the court decision
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Reprinted courtesy of Neil Callanan, Bloomberg

Florida Supreme Court Decision Limits Special Damages Presented to Juries

July 18, 2022 — John A. Rine & Shannon Murphy - Lewis Brisbois
Tampa, Fla. (June 16, 2022) - Verdicts in personal injury cases are greatly impacted by the amount of medical expenses a plaintiff can present to juries. In Florida, collateral sources of compensation, such as insurance payments, are generally not disclosed to juries. However, caselaw also typically does not allow plaintiffs to recover the gross amount of medical bills, but instead the amount after insurance adjustments. For decades, Florida courts have considered whether the bills are reduced by the adjustments before or after verdict. The recent Florida Supreme Court decision in Dial v. Calusa Palms Master Association, Inc., No. SC21-43 (Fla. Apr. 28, 2022), has standardized the way past medical expenses are presented to juries where the plaintiff was treated under Medicare. As is commonly understood, the original amount billed by medical providers is far different than the amount actually paid. Most treatment is subject to some private or government insurance and those insurers typically have negotiated rates for treatment. Thus, the bills are reduced subject to insurance contractual adjustments and the resulting net bills are far lower. For decades, defense attorneys have argued that juries should hear only the lower net amount. Read the court decision
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Reprinted courtesy of John Rine, Lewis Brisbois
Mr. Rine may be contacted at John.Rine@lewisbrisbois.com

West Coast Casualty’s Quarter Century of Service

May 03, 2018 — Beverley BevenFlorez-CDJ STAFF
West Coast Casualty's Construction Defect Seminar has been promoting charitable work for the past twenty-five years. Each year, they promote different charities, and provide multiple ways for individuals and companies to contribute. Whether it’s Buy a Banner, Tennis Shoe Thursday, or Flip Flop Friday, industry members are given opportunities to support worthwhile causes. This year, West Coast Casualty is supporting Hawaii’s Children’s Cancer Foundation , St. Jude Children’s Research Hospital, and Shriners Hospital for Children. WCC also supports charitable organizations through every award that they present each year. Donations are made in the winner’s name: For Jerrold S. Oliver Award of Excellence awardees, Habitat for Humanity as well as a local California and Nevada charity; For Legend of an Era Award, the designated charity of West Coast Casualty’s Construction Defect Seminar; and for The Larry Syhre Commitment to Service Award, a donation to The Larry Syhre Foundation. Read the court decision
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