Background Owner of Property Cannot Be Compelled to Arbitrate Construction Defects
November 07, 2012 —
CDJ STAFFIn Truppi v. Pasco Engineering, John Quattro sued Property Management Contractors, Inc. over construction defects in William Truppi’s home. All parties are named in the suit. The California Court of Appeals ruled that Property Management Contractors, Inc. (PMCI) could not compel Mr. Quattro to arbitration.
The background of the case involves two houses built in Encinitas, California by PCMI: one for Mr. Truppi at 560 Neptune, and one for Mr. Quattro at 566 Neptune. Both contracts contained an arbitration provision. Mr. Quattro signed the contract for his residence and Mr. Truppi signed the other. Mr. Quattro then sued PCMI and its principal, William Gregory. Mr. Quattro claimed to be the true contracting party for the 560 Neptune residence and a third party beneficiary of the contract Mr. Truppi signed, and stated that PCMI was aware of this.
PCMI in a demurrer stated that Quattro “had only a ‘prospective beneficial interest in the property upon its eventual sale or lease.’” Mr. Quattro amended his complaint to account for the issues raised by PCMI. The court rejected PCMI’s demurrer to the amended complaint.
Finally, PCMI and Gregory asserted that Quattro was “not the real party in interest” and could not sue. PCMI continues to assert that Quattro lacks standing, but their attorney sent Quattro an e-mail stating, “While my client disputes that you are a party, and that you lack standing to assert the claim, to the extent you do so I believe you are obligated to proceed by way of arbitration.”
The court did not cover the issue of Quattro’s standing in the case, only if he could be compelled to arbitration. The court affirmed the lower court’s finding that Quattro could not be compelled to arbitrate the construction defect claim as neither he nor Gregory signed the contract in an individual capacity. Further, the court noted that PCMI and Gregory “denied the existence of an agreement between themselves and Quattro on the 560 contract,” and cannot compel arbitration on a non-existent agreement. And while non-signatories can, in some situations be compelled to arbitrate, the court found that “these cases are inapplicable because here they seek to have the alleged third party beneficiary (Quattro) compelled by a nonsignatory (Gregory).” The arbitration clause in question “expressly limited its application to persons or entities that signed the 560 contract.”
As Mr. Quattro was not a signatory to that agreement, the court found that he could not be held to its arbitration provision.
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“Freelance Isn’t Free” New Regulations Adopted in New York City Requiring Written Contracts with Independent Contractors
June 15, 2017 —
Kevin J. O'Connor - Peckar & Abramson. P.C.Attacks on employers for alleged misclassification of workers—particularly independent contractors—are continuing unabated, and the risk of liability for employers operating in New York City just increased. New York City has just adopted sweeping regulations requiring written contracts with certain freelancers and independent contractors. Anyone doing business in that jurisdiction should take notice and take action to comply with the law.
New York City’s “Freelance Isn’t Free Act,” N.Y.C. Administrative Code §§ 20-927 et seq. (“FIFA”) went into effect on May 15, 2017. This new law substantially regulates the relationship between a business and an independent contractor or “freelancer” working in New York City.
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Kevin J. O'Connor, Peckar & Abramson. P.C.Mr. O'Connor may be contacted at
koconnor@pecklaw.com
Illinois Lawmakers Approve Carpenters Union's Legislation to Help Ensure Workers Are Paid What They're Owed
April 19, 2022 —
Mid-America Carpenters Regional CouncilCHICAGO — Workers around the state have new protections to help ensure they are paid what's owed to them under new legislation that passed the Illinois General Assembly last week.
HB5412 makes a primary contractor liable for the failure of a subcontractor to pay wages owed to its workers. The subcontractor would in turn be required to compensate the primary contractor for any wages, damages, interest, penalties or attorneys' fees as a result of the subcontractor's failure to pay wages.
"All of us in the Carpenters Union are thrilled to see the Legislature take action on this landmark legislation," said Gary Perinar, Executive Secretary-Treasurer of the Mid-America Carpenters Regional Council. "We have been leading the fight against worker exploitation in every state, and Illinois is showing that hardworking men and women are valued and protected here. When workers are getting ripped off and not paid what they are owed, that should outrage every single person on a job site. I thank Senate President Don Harmon, Speaker Emanuel "Chris" Welch, Leader Evans, and Senator Castro for their unwavering commitment throughout this process to support working families."
About the Mid-America Carpenters Regional Council
The Mid-America Carpenters Regional Council represents over 52,000 working men and women across 324 counties in Illinois, Missouri, Kansas and Eastern Iowa. The Mid-America Carpenters Regional Council provides the construction and maintenance industries with productive, competitive and certified professionals, encompassing a wide variety of crafts and skills.
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Change #7- Contractor’s Means & Methods (law note)
March 28, 2018 —
Melissa Dewey Brumback - Construction Law in North CarolinaFirst, a little history: as you know, means, methods, techniques, sequences, and procedures are all part of the Contractor’s responsibility on a construction site. However, when the AIA A201 was last revised, in 2007, there was a provision put in for that rare time when the Contract Documents gave specific instructions concerning a particular construction method. If the Contractor viewed such instructions as unsafe, he was to give notice to the Owner and Architect, and was not to proceed with that portion of the Work without further written instructions from the Architect. If the Architect directed him to proceed, the Contractor was absolved from any risks with following that instruction. Instead, the Owner assumed the responsibility for any loss or damage.
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Melissa Dewey Brumback, Construction Law in North Carolina
Two New Developments in Sanatoga, Pennsylvania
October 22, 2013 —
CDJ STAFFThe final touches are being put on two developments in Sanatoga, Pennsylvania. Southview, the larger of the two, comprises 35 single-family homes. Brookside comprises 16 single-family homes. During the next 18 months, the developers of the two communities will be responsible for the community improvements. If, after 18 months, these pass inspection, the township’s engineering firm will recommend that Sanatoga take responsibility for upkeep.
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Details of Sealed Whistleblower Charges Over Cuomo Bridge Bolts Burst Into Public View
March 22, 2021 —
Richard Korman - Engineering News-RecordTappan Zee Constructors, the consortium that built the big New York Hudson River crossing that opened in 2018, is embroiled in another lawsuit related to the bridge.
Reprinted courtesy of
Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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Certifying Claim Under Contract Disputes Act
June 08, 2020 —
David Adelstein - Florida Construction Legal UpdatesUnder the Contract Disputes Act (41 USC 7101 en seq.), when a contractor submits a claim to the government in excess of $100,000, the claim MUST contain a certification of good faith, as follows:
For claims of more than $100,000 made by a contractor, the contractor shall certify that–
(A) the claim is made in good faith;
(B) the supporting data are accurate and complete to the best of the contractor’s knowledge and belief;
(C) the amount requested accurately reflects the contract adjustment for which the contractor believes the Federal Government is liable; and
(D) the certifier is authorized to certify the claim on behalf of the contractor.
41 U.S.C. 7103(b)(1). See also 48 C.F.R. s. 33.207(c) as to the wording of the certification.
The contracting officer is not required to render a final decision on the claim within 60 days if, during this time period, he/she notifies the contractor of the reasons why the certification is defective. 41 U.S.C. 7103(b)(3). Importantly, the contracting officer’s failure to render a decision within 60 days is deemed an appealable denial.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Subrogation 101 (and Why Should I Care?)
July 16, 2023 —
Clark Thiel & Alexis N. Wansac - Gravel2Gavel Construction & Real Estate Law BlogWhat is subrogation? Why am I being asked to waive it? Should I care? To answer that last question, let’s take a quick run at the first two.
What Is Subrogation?
“Subrogation” refers to the act of one person or party standing in the place of another person or party. It is a legal right held by most insurance carriers to pursue a third party that caused an insurance loss in order to recover the amount the insurance carrier paid the insured to cover the loss. This occurs when (i) the insurance carrier makes a payment on behalf of its insured as the result of a covered accident or injury, and then (ii) the insurer then seeks repayment from the at-fault party.
Reprinted courtesy of
Clark Thiel, Pillsbury and
Alexis N. Wansac, Pillsbury
Mr. Thiel may be contacted at clark.thiel@pillsburylaw.com
Ms. Wansac may be contacted at alexis.wansac@pillsburylaw.com
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