For Smart Home Technology, the Contract Is Key
June 07, 2021 —
James W. McPhillips & Rachel Newell - Gravel2Gavel Construction & Real Estate Law BlogIn our
previous post we discussed the importance of conducting a thorough due diligence and procurement process with smart technology providers. Next up? The contract.
The price of a procured product is always important, but equally important are other contractual terms that reflect the commercial agreement. Ultimately, the contract should answer the fundamental question of “What are you buying?” The product itself is not the only feature being purchased. A customer is also buying certainty, service performance, risk mitigation, flexibility, security, compliance, and other similar “intangible” items of value.
The Price of Certainty
As part of the price, the purchaser of smart technology is also buying certainty. What do we mean by that?
Reprinted courtesy of
James W. McPhillips, Pillsbury and
Rachel Newell, Pillsbury
Mr. McPhillips may be contacted at james.mcphillips@pillsburylaw.com
Ms. Newell may be contacted at rachel.newell@pillsburylaw.com
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Sometimes a Reminder is in Order. . .
June 21, 2021 —
Christopher G. Hill - Construction Law MusingsRecently, I was talking with my friend Matt Hundley about a recent case he had in the Charlottesville, VA Circuit Court. It was a relatively straightforward (or so he and I would have thought) breach of contract matter involving a fixed price contract between his (and an associate of his Laura Hooe) client James River Stucco and the Montecello Overlook Owners’ Association. I believe that you will see the reason for the title of the post once you hear the facts and read the opinion.
In James River Stucco, Inc. v. Monticello Overlook Owners’ Ass’n, the Court considered Janes River Stucco’s Motion for Summary Judgment countering two arguments made by the Association. The first Association argument was that the word “employ” in the contract meant that James River Stucco was required to use its own forces (as opposed to subcontractors) to perform the work. The second argument was that James River overcharged for the work. This second argument was made without any allegation of fraud or that the work was not 100% performed.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Reinventing the Building Envelope – Interview with Gordon A Geddes
September 01, 2016 —
Aarni Heiskanen – AEC BusinessIn this interview with Gordon A Geddes, CEO of Lynx Systems, we talk about reinventing the building envelope. Gordon also gives great advice to innovators in the construction industry.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aarni@aepartners.fi
A Recap of the Supreme Court’s 2019 Summer Slate
September 16, 2019 —
Anthony B. Cavender - Gravel2GavelAs usual, the last month of the Supreme Court’s term generated significant rulings on all manner of cases, possibly presaging the new directions the Court will be taking in administrative and regulatory law. Here’s a brief roundup:
An Offshore Dispute, Resolve – Parker Drilling Management v. Newton
On June 10, 2019, the Court held, in a unanimous ruling, that, under federal law, California wage and hour laws do not apply to offshore operations conducted on the Outer Continental Shelf (OCS). Newton, the plaintiff, worked on drilling platforms off the coast of California, and alleged that he was not paid for his “standby time” which is contrary to California law if not federal law. He filed a class action in state court, which was removed to federal court, where it was dismissed on the basis of a 1969 decision of the U.S. Court of Appeals for the Fifth Circuit, which held that state law applies on the OCS only to the extent that it is necessary to use state law to fill a significant gap or void in federal law, and this is not the case here. On appeal to the Ninth Circuit, that court disagreed with the Fifth Circuit, and ruled that state law is applicable on the OCS whenever it applies to the matter at hand. The Supreme Court, in an opinion written by Justice Thomas, conceded that “this is a close question of statutory interpretation,” but in the end the Court agreed with the argument that if there was not a gap to fill, that ended the dispute over which law applies on the Outer continental Shelf. This ruling, recognizing the preeminent role that federal law plays on the OCS, may affect the resolution of other offshore disputes affecting other federal statutes.
Preemption Prevention – Virginia Uranium, Inc. v. Warren. et al.
On June 17, 2019 the Court decided important cases involving federal preemption and First Amendment issues. In a 6-to-3 decision, the Court held that the Atomic Energy Act does not preempt a Virginia law that “flatly prohibits uranium mining in Virginia”—or more precisely—mining on non-federal land in Virginia. Virginia Uranium planned to mine raw uranium from a site near Coles, Virginia, but acknowledging that Virginia law forbade such an operation, challenged the state law on federal preemption grounds, arguing that the Atomic Energy Act, as implemented by the Nuclear Regulatory Commission, preempts the ability of the state to regulate this activity. However, the majority, in an opinion written by Justice Gorsuch, notes that the “best reading of the AEA does not require us to hold the state law before us preempted,” and that the1983 precedent that Virginia Uranium cites, Pacific Gas & Electric Company v. State Energy Resources Conservation and Development Commission, can easily be distinguished. Justice Gorsuch rejected arguments that the intent of the Virginia legislators in passing the state law should be consulted, that the Court’s ruling should normally be governed by the exact text of the statute at hand. However, both the concurring and dissenting opinions suggest that the what the legislators intended to do is important in a preemption context.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Suit Against Broker for Securing Inadequate Coverage Dismissed on Statute of Limitations Grounds
April 11, 2018 —
Tred R. Eyerly - Insurance Law HawaiiThe insured's suit against his broker for securing a policy with insufficient policy limits was dismissed when filed more than two years after the alleged professional negligence occurred.
Pritchard v. Andy Houghton Ins. Agency, 2018 Cal. App. Unpub. LEXIS 1160 (Cal. Ct. App. Feb. 20, 2018).
Pritchard requested coverage for replacement of his property in the event of a total loss by fire. He obtained a policy from Houghton.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
$6 Million in Punitive Damages for Chinese Drywall
November 27, 2013 —
CDJ STAFFJeffrey and Elisa Robin earlier were awarded $1.1 million in compensatory damages in their lawsuit against Knauf Plasterboard, the Chinese company which manufactured allegedly tainted drywall used in the Robin’s Coconut Grove, Florida home. Now a jury has awarded the couple an additional $6 million punitive damages.
The Robins’ lawyer, Victor Diaz, said it was “the best accomplishment of my legal career.”
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Is Your Design Professional Construction Contract too Friendly? (Law Note)
July 09, 2014 —
Melissa Dewey Brumback – Construction Law North CarolinaMy husband often travels the back roads between Chapel Hill and Fuquay Varina to visit friends. En route (a circuitous route that goes past Sharon Harris Nuclear Power Plant, among other places), he passes by the “Friendly Grocery.”
[Sign]
No *Loitering*Littering*Alcoholic Beverages on Premises*Bike*Skateboard*
*10 minutes Parking Limit*Towing Enforced*
I’m not sure which is the “friendly” part of that sign. In fact, the sign seems to be the antithesis of friendly.
What does this have to do with your construction contracts? Sometimes, in an effort to please the client and/or secure the project, architects and engineers have the habit of being too friendly in their contract language. That is, you make promises or proposals that may promise too much of a good thing for the client. This can cause big problems. Bigger than being towed away from a rural grocery store in the middle of nowhere. You could be putting your insurance coverage at risk.
Have you ever promised to use “best efforts” in your design or plans? Promised to design to a specific LEED standard? Guaranteed 100% satisfaction? You might be putting your errors & omission coverage at issue. By warrantying or guaranteeing something, you are assuming a level of liability well beyond the standard of care required by law. By law, you only need to conform to the standard of care, and your insurance will only provide coverage up to that standard of care. In other words, if you make guarantees or promise “best efforts,” you are contracting to something that will *not* be insured. If something goes wrong, you will be without the benefit of your professional liability coverage.
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Melissa Dewey Brumback, Construction Law in North CarolinaMs. Brumback may be contacted at
mbrumback@rl-law.com
Corps, State Agencies Prep for Flood Risks From California Snowmelt Runoff
May 29, 2023 —
Michael Powell - Engineering News-RecordIn the wake of record-setting snowfalls in the Sierra Nevada Mountains over the past six months, California and federal officials are preparing to handle the flooding threat posed by imminent meltwater runoff. The efforts include releasing water from the state's key dams to allow for the expected capacity, preparing emergency responses for imperiled area's in the state's Central Valley and launching groundwater recharge projects.
Reprinted courtesy of
Michael Powell, Engineering News-Record
ENR may be contacted at enr@enr.com
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