LAX Runway Lawsuit a Year Too Late?
January 17, 2014 —
Beverley BevenFlorez-CDJ STAFFThe City of Los Angeles filed a lawsuit against Tutor-Saliba Corp. and O&G Industries Inc., which had created a joint venture to rebuild Runway 25L at Los Angeles International Airport (LAX), according to Brian Sumers writing for the Daily Breeze. However, lawyers for the construction companies are alleging that the lawsuit was filed a year too late: “…the complaint’s first four causes of action against Joint Venture are indisputably barred under California Law,” lawyers from Castle & Associates claimed.
This news came soon after a plane blew a tire on the same runway involved in the lawsuit, as reported by the Los Angeles Times. The blown out tire may not be related to the alleged construction defects: “The runway is usable,” Nancy Castles, spokeswoman for Los Angeles World airports told the Los Angeles Times. Castles explained that “the lawsuit is about ‘deterioration’ and that at some point the runway will need to be rebuilt, but that time is not now.”
Read the full story at the Daily Breeze...
Read the full story at the Los Angeles Times...
Read the court decisionRead the full story...Reprinted courtesy of
Graham & Who May Trigger The Need To Protest
December 23, 2023 —
Hugo Fraga - Ahlers Cressman & Sleight PLLCOn May 30, 2023, the Washington Court of Appeals, Division I, issued a decision that appears to expand a contractor’s obligation with respect to WSDOT notice and claim procedures. In
Graham Contracting, Ltd. v. City of Federal Way, No. 83494-1-I, 2023 WL 3721171 (Wash. Ct. App. May 30, 2023) (Unpublished), the Court held that under the 2016 WSDOT Standard Specifications for Road, Bridge, and Municipal Construction (“Standard Specifications”), a Contractor must protest the actions of not only the “Engineer” but also the actions of any person or organization acting on behalf of the Owner.
This case arises out of a public construction contract in which Graham Contracting Ltd (“Graham”) built a multi-million dollar roadway improvement for the City of Federal Way along a stretch of Pacific Highway. The appeal was from the trial court’s granting of the City’s motion for summary judgment to dismiss claims by Graham for extra time and money due to delays and impacts to Graham’s construction of the Project.
Read the court decisionRead the full story...Reprinted courtesy of
Hugo Fraga, Ahlers Cressman & Sleight PLLCMr. Fraga may be contacted at
hugo.fraga@acslawyers.com
New Strategy for Deterring Intracorporate Litigation?: Delaware Supreme Court Supports Fee-Shifting Bylaws
May 13, 2014 —
Marc Casarino and Lori Smith – White and Williams LLPA fee-shifting bylaw of a Delaware non-stock corporation is not facially invalid according to the Delaware Supreme Court’s May 8, 2014 opinion in ATP Tour, Inc. v. Deutscher Tennis Bund.
In this case, ATP Tour, Inc., a non-stock membership corporation (“ATP”) governed by a seven member board, had adopted a bylaw provision which provided that current and former members of ATP would be responsible for the litigation costs arising out of any litigation initiated by any such member against ATP or any of the other members in which the initiating party did not obtain a judgment on the merits that substantially achieved in substance and amount the full remedy sought. The bylaw provision had been adopted, in accordance with ATP’s charter, by the Board unilaterally without any consent from the members. The members had agreed at the time they joined ATP to be bound by the bylaws, as amended from time to time. Two members of ATP initiated a suit against ATP relating to certain actions taken with respect the ATP’s tournament schedule and format alleging both federal antitrust claims and Delaware fiduciary duty claims but did not prevail on any of their claims. ATP then moved to recover its legal fees relating to such actions.
Reprinted courtesy of
Marc Casarino, White and Williams LLP and
Lori Smith, White and Williams LLP
Mr. Casarino may be contacted at casarinom@whiteandwilliams.com; Ms. Smith may be contacted at smithl@whiteandwilliams.com
Read the court decisionRead the full story...Reprinted courtesy of
Five-Year Statute of Limitations on Performance-Type Surety Bonds
December 01, 2017 —
David Adelstein - Florida Construction Legal UpdatesThe statute of limitations on a claim against a performance-type bond is 5 years from the breach of the bond, i.e., the bond-principal’s default (based on the same statute of limitations that governs written contracts / obligations). See Fla. Stat. s. 95.11(2)(b). This 5-year statute of limitations is NOT extended and does NOT commence when the surety denies the claim. It commences upon the default of the bond-principal, which would be the act constituting the breach of the bond. This does not mean that the statute of limitations starts when a latent defect is discovered. This is not the case. In dealing with a completed project, the five-year statute of limitations would run when the obligee (beneficiary of the bond) accepted the work. See Federal Insurance Co. v. Southwest Florida Retirement Center, Inc., 707 So.2d 1119, 1121-22 (Fla. 1998).
This 5-year statute of limitations on performance-type surety bonds has recently been explained by the Second District in Lexicon Ins. Co. v. City of Cape Coral, Florida, 42 Fla. L. Weekly D2521a (Fla. 2d DCA 2017), a case where a developer planned on developing a single-family subdivision.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
A Court-Side Seat – Case Law Update (February 2022)
March 06, 2022 —
Anthony B. Cavender - Gravel2GavelIt is already early in 2022, but several important environmental cases have already been decided by the federal district and federal appellate courts.
THE COURTS OF APPEAL
The U.S. Court of Appeals for the Fourth Circuit
West Virginia State University Board of Governors v. The Dow Chemical Company, et al.
On January 10, 2022, the court decided this case, in which Dow and the other defendants attempted to remove a state groundwater contamination lawsuit to federal court, citing the federal officer removal statute and the presence of a significant federal question. Both the federal district court and the appellate court rejected these arguments and remanded the lawsuit to the state court. For many years, Dow and other parties had been engaged in a RCRA hazardous waste cleanup at an industrial site located in Institute, West Virginia. RCRA permits and corrective action authorizations were issued or supervised by EPA. The plaintiffs complained that the groundwater cleanup, insofar as it affected their property, was deficient, which compelled them to supplement the ongoing federal cleanup with a lawsuit based on West Virginia causes of action and unique to their property. After a careful review of the record, the Fourth Circuit held that the defendants were not acting under the “subjection, guidance or control” of the EPA, and therefore the federal officer removal statute did not apply. Moreover, there was no federal question to resolve as the separate state lawsuit did not challenge a CERCLA cleanup nor did it arise from the RCRA remedial measures that had been taken.
Read the court decisionRead the full story...Reprinted courtesy of
Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Unpredictable Opinion Regarding Construction Lien (Reinstatement??)
January 17, 2023 —
David Adelstein - Florida Construction Legal UpdatesHere comes the discussion of an appeal I was intimately involved in dealing with a construction lien. See Suntech Plumbing and Mechanical Corp. v. Bella Isla, LLC, 2022 WL 14672765 (Fla. 3d DCA 2022). Unfortunately, it was a losing result on my end but not a losing result to the issue at-hand. You should ask what in the world does this mean. I will tell you.
Here is the fact pattern. A subcontractor files a construction lien foreclosure lawsuit against an owner for unpaid contract balance. In the same lawsuit, the subcontractor sues the general contractor for breach of contract and unjust enrichment associated with an approximate three-year delay on a construction project. The project was scheduled to be completed in 2019. It was not. The project was pushed into COVID and into 2022. (The subcontractor did not sue the general contractor for amounts subject to the lien foreclosure claim.) The general contractor, assuming the defense of the owner, moved to stay the lawsuit pending the outcome of arbitration based on an arbitration provision in the subcontract. The subcontractor did not dispute the arbitration provision, but argued that arbitration provision should not extend to the owner that was (a) not bound by the subcontract, (b) would not be a party to the arbitration, and (c) the amounts pled against the general contractor did not include the amounts subject of the lien foreclosure lawsuit. At a minimum, the lawsuit should be stayed, not dismissed. Nevertheless, the trial court dismissed the entire lawsuit in an order that states that it is a final order with language that the lien may be “reinstated” after the outcome of the arbitration (that the owner is not a party to).
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
The Future of Construction Tech Is Decision Tech
August 06, 2019 —
Bassem Hamdy - Construction ExecutiveIt doesn’t take much to be catastrophically wrong in construction; some bad information, a touch of misleading intel, a few biased opinions mixed with human error and perhaps a little bad luck to top it off. A poor decision early in a project plants itself like a weed—it grows benignly at first, and becomes gravely pervasive at the end.
Being wrong in construction is dangerous. Error leads to leaning towers and broken buildings. Poorly-built structures can hinder economic growth and deprive communities of good infrastructure. For the enterprise, bad decisions can lead to massive financial loss and—worse—human loss on a jobsite.
Despite knowing all the dangers, it seems that flawed data, misleading intel and human error have become traits the industry can’t shake. To be clear, construction is one of—if not the most—complex industry in today’s economy. Companies walk a tight rope between a 2% margin on one side and ruinous loss on the other. Under such conditions, it’s easy to see why sustained good judgement is difficult.
Reprinted courtesy of
Bassem Hamdy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
There's No Place Like Home
March 02, 2020 —
Brian Brenner - Engineering News-RecordTwo things that generally do not go well together, bridges and tornadoes, collided with unfortunate results on July 21, 2003. On that date, a tornado struck the Kinzua viaduct in northwestern Pennsylvania. The old bridge structure already had deteriorated foundation supports, which were then under repair. The tornado lifted parts of the bridge off its foundation, and more than half of the structure collapsed.
Brian Brenner, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of