Disappearing Data: Avoid Losing Electronic Information to Avoid Losing the Case
February 01, 2022 —
Daniel C. Wennogle & Jennifer Knight Lang - Construction ExecutiveIt happens: A contractor on a delayed project ends up in litigation over liquidated damages, but the key communications regarding delays and approvals were sent and received by the project manager on a mobile device using text messages and personal email accounts. Unfortunately, the project manager left the company a year ago on bad terms and has changed phones. The information that would serve to mitigate the contractor’s liability has disappeared. With better awareness and policies for capturing and managing electronic information, this is avoidable.
Proactive and effective management of electronically stored information on construction projects can not only reduce costs and discovery disputes should litigation arise but can also provide critical evidence in reducing liability exposure in such disputes. The Federal Rules of Civil Procedure (as well as most state rules, which often mirror federal rules), provide for sanctions if a party fails to preserve electronically stored information (ESI) that should have been preserved in anticipation of litigation but is lost due to the failure to take reasonable steps to preserve it.
Even in arbitration, where discovery and disclosure obligations are often more limited than in the court setting, preservation of ESI can help strengthen claims and defenses, avoiding accusations of spoliation that can derail a case. Arbitrators can also fashion appropriate sanctions for destruction of relevant evidence, not to mention the impact that apparent spoliation can have on a party’s credibility.
Reprinted courtesy of
Daniel C. Wennogle & Jennifer Knight Lang, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Ms. Lang may be contacted at jennifer.lang@moyewhite.com
Mr. Wennogle may be contacted at daniel.wennogle@moyewhite.com
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Judge Dismisses Suit to Block Construction of Obama Center
April 04, 2022 —
The Associated Press - BloombergChicago (AP) -- A federal judge has dismissed a lawsuit that sought to prevent the construction of the Obama Presidential Center in a park on Chicago's South Side.
In a ruling issued Tuesday, U.S. District Judge Robert Blakey rejected the contention by the group Protect Our Parks that the city's park district improperly gave control of the land in Jackson Park to former President Barack Obama's foundation in violation of the public trust.
The city, Blakey wrote, “did not abdicate control or ownership of the OPC site to the Obama Foundation.”
Citing the state law that governs museums, the judge wrote that the Obama Center will ”confer a public benefit because they ’serve valuable public purposes, including ... furthering human knowledge and understanding, educating and inspiring the public, and expanding recreational and cultural resources and opportunities.”
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Bloomberg
Is a Text a Writing?
June 10, 2024 —
Michael Yelle - Ahlers Cressman & Sleight PLLCIs a text message a writing? Project communication is constantly evolving, and text messages are an increasingly common way teams share pictures, video, and provide project updates. When texting is part of the communication flow on a project, contractors and owners might text approvals for extra work, notices of changed conditions, or other information that could be a basis for a change order.
In a text exchange about a compensable event, the notice, reply, and approval are all saved on the phone. But contracts often contain specific requirements for a contractor or subcontractor to request changes and authorization to proceed may be specifically required in writing.
For example, the Associated General Contractors of Washington – 2018 Standard Subcontract says the “Subcontractor shall make no claims for extras unless the same shall be agreed upon
in writing by Contractor prior to performance of any such extra work.” (emphasis added).
The AGC subcontract doesn’t define “writing,” so the subcontractor and contractor might wonder if a text message exchange about a potentially compensable event was an “agreement in writing.”
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Michael Yelle, Ahlers Cressman & Sleight PLLCMr. Yelle may be contacted at
michael.yelle@acslawyers.com
DA’s Office Checking Workers Comp Compliance
February 10, 2012 —
CDJ STAFFThe San Bernardino office of the California District Attorney is partnering with the California Contractor’s State License Board to check if subcontractors are holding the required workers compensation insurance. The High Desert Daily Press reports that the process of checking at sites has been going on for several months.
Investigators visit sites and ask supervisors to provide a list of subcontractors which the state then checks for compliance. One worker was quoted that insurance inspections were so rare that he had never seen one before, despite 20 years in construction.
On one day, investigators in two teams visited fourteen construction sites and reviewed the insurance status of twenty-two firms. Three were found out of compliance and stop work orders were issued.
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Record Home Sales in Sydney Add to Bubble Fear
March 05, 2015 —
Michael Heath – BloombergSydneysiders wanting to sell their homes have never had it easier.
The proportion of successful house auctions in Australia's largest city was above 80% at the weekend for the fourth week in a row. That is the longest stretch on record and highlights the potential consequences of a projected interest-rate cut.
Governor Glenn Stevens's effort to revive business investment with cheap finance is adding fuel to the country's biggest property market. Home sellers may get a further boost, with 18 of 29 economists forecasting a 25-basis-point cash rate reduction on Tuesday.
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Michael Heath, Bloomberg
The Prompt Payment Rollercoaster
February 23, 2016 —
Garret Murai – California Construction Law BlogThis past year we
wrote about a case involving California’s prompt payment laws and the current state of confusion with the prompt payment statutes which are
scattered throughout the state Code and which are inconsistent in the use of their terminology and, thus importantly, application.
In
United Riggers & Erectors, Inc. v. Coast Iron & Steel Co., California Court of Appeals for the Second District, Case No. B258860 (December 18, 2015), the Court of Appeals for the Second District addressed whether under one of the prompt payment statutes, Civil Code section 8814, a general contractor may withhold retention without being subject to prompt payment penalties if there is a dispute of any kind between the general contractor and the subcontractor, or only when the dispute relates to the retention itself.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
When Do Hard-Nosed Negotiations Become Coercion? Or, When Should You Feel Unlucky?
October 21, 2019 —
Stan Millan, Jones Walker, LLP - ConsensusDocsConflict in a negotiation is to be expected and is arguably healthy for the process. Owners and contractors are constantly engaged in negotiations; whether it be negotiating changes to the work, changes to the schedule, or changes to the contractual terms. But at what point does taking a strong position in a negotiation cross the line and become coercion or bad faith?
A recent decision from the Armed Services Board of Contract Appeals touched on this very issue. While this is a government contract case, the issues discussed in this case (namely negotiating a change) are routinely encountered in just about every construction project. This decision is instructive because it adds to a trending line of cases that limit an owner’s and contractor’s negotiation tactics.
On August 5, 2019, the board issued an opinion in the appeal of Sand Point Services, LLC vs. NASA, ASBCA Nos. 6189. In Sand Point Services, the contractor was hired by the owner to repair the Wallops Flight Facility’s aircraft parking apron. During its work, the contractor hit a differing site condition, namely unsuitable soils. The contractor sought additional time and money for this differing site condition. The owner ultimately responded with a show cause letter to the contractor claiming, among other breaches, that the contractor was significantly behind schedule. This was generally viewed by all parties as the start of default proceedings against the contractor.
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Stan Millan, Jones Walker, LLPMr. Millan may be contacted at
smillan@joneswalker.com
U.K. Construction Growth Unexpectedly Accelerated in January
February 05, 2015 —
Tom Beardsworth – Bloomberg(Bloomberg) -- U.K. construction growth unexpectedly accelerated last month as housing strengthened and civil engineering bounced back from a contraction.
Markit Economics said its Purchasing Managers’ Index rose to 59.1 from 57.6 in December. A reading above 50 indicates expansion. Economists forecast the gauge would fall to 57, according to the median estimate in a Bloomberg News survey.
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Tom Beardsworth, BloombergMr. Beardsworth may be contacted at
tbeardsworth@bloomberg.net