When is Mediation Appropriate for Your Construction Case?
May 07, 2015 —
Christopher G. Hill – Construction Law MusingsHere at Construction Law Musings, I have often discussed mediation as a good alternative to the expense and headaches of litigation. What I have discussed less often are the circumstances in which it is most appropriate to consider or even push for mediation.
The obvious and clearest time that mediation must be used is where the contract requires it. Many construction contracts, including those from the AIA (when the parties check the appropriate box) require mediation as a prerequisite to arbitration or litigation. As is almost always the case in Virginia, this clause will be enforced. In short, if your construction contract has such a clause, and despite my reservations about “mandatory mediation,” you need to at least go through the process before moving forward with your construction claim.
The more interesting case is where no such clause exists and the parties reach an impasse, sometimes prior to litigation and often after the filing of a construction complaint or demand for arbitration. What questions should you as a construction attorney be asking both to and about your construction clients before attempting mediation?
Read the court decisionRead the full story...Reprinted courtesy of
Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
New Hampshire Applies Crete/Sutton Doctrine to Bar Subrogation Against College Dormitory Residents
May 17, 2021 —
Kyle Rice - The Subrogation SpecialistPursuant to the Sutton Doctrine, first announced in Sutton v. Jondahl, 532 P.2d 478 (Okla. Ct. App. 1975), some jurisdictions consider a tenant a coinsured of its landlord absent an express agreement to the contrary. In Ro v. Factory Mut. Ins. Co., No. 2019-0620, 2021 N.H. LEXIS 34 (Mar. 10, 2021), the Supreme Court of New Hampshire held that the Sutton Doctrine, adopted by New Hampshire in Cambridge Mut. Fire Ins. Co. v. Crete, 846 A.2d 521 (N.H. 2004), extends to resident students in a college dormitory. Thus, absent specific language to the contrary, a student is an implied coinsured under the fire insurance policy issued for his or her dormitory.
In 2016, two students at Dartmouth College, Daniel Ro and Sebastian Lim, set up a charcoal grill on a platform outside of a fourth-floor window in the Morton Hall dormitory. The grill started a fire on the platform that ultimately spread to the roof of the dormitory. During fire suppression efforts, all four floors of the dormitory sustained significant water damage. Following the loss, the building’s insurer, Factory Mutual Insurance Company (Insurer), paid $4,544,313.55 to the Trustees of Dartmouth College for the damages.
Read the court decisionRead the full story...Reprinted courtesy of
Kyle Rice, White and WilliamsMr. Rice may be contacted at
ricek@whiteandwilliams.com
SB 721 – California Multi-Family Buildings New Require Inspections of “EEEs”
December 19, 2018 —
Brenda Radmacher - Gordon & Rees Construction Law BlogMany in the construction industry and multi-family development field have been closely following Senate Bill 721, or the “Balcony Bill,” regarding new requirements for building owners associated with decks and balconies. After almost a dozen amendments, the “Balcony Bill” finally passed in the state legislature with an overwhelming majority and was signed into law September 17th, 2018, by Governor Jerry Brown.
Balconies and decks, called “Exterior Elevated Elements” (“EEE”) in the statute, are common features in most multi-family buildings in California – where better to enjoy the California sun? However, many of the structures have proven to be problematic at best due to complex intersections of construction trades and design issues as well as limited understanding and effectuation of maintenance. Indeed, the “Balcony Bill” arose largely out of an outcry following the 2015 balcony collapse in Berkeley in 2015, which left six young people dead and another seven injured.
Read the court decisionRead the full story...Reprinted courtesy of
Brenda Radmacher, Gordon & Rees Scully MansukhaniMs. Radmacher may be contacted at
bradmacher@grsm.com
Challenging and Defending a California Public Works Stop Payment Notice: Affidavit vs. Counter-Affidavit Process
October 21, 2019 —
William L. Porter - Porter Law GroupOne of the most effective collection procedures available to subcontractors and suppliers to California Construction projects is the “stop payment notice” procedure found under California Civil Code sections 9350 – 9364. Under this procedure, the unpaid subcontractor or supplier may serve the stop payment notice on the public entity and the direct or “prime” contractor and cause the public entity to withhold from the direct contractor 125% of the funds identified in the stop payment notice. Thereafter, funds will not generally be released unless the parties reach a settlement agreement or the issue is decided through litigation, arbitration or mediation. There is however an alternative procedure available to direct contractors to expedite the determination of whether a stop payment notice is valid and to possibly obtain an early release of the funds withheld by the public entity. This “summary proceeding” process could result in release of funds to the direct contractor in less than 30 days. The summary proceeding can also be challenged by the unpaid subcontractor or supplier. All public works contractors, subcontractors and suppliers should be aware of the process. The process for direct contractors to release a stop payment notice and for subcontractors and suppliers to challenge the process works as follows:
After a California stop payment notice has been served and the public entity has withheld funds accordingly, the direct contractor may challenge the stop payment notice by serving an “affidavit” (basically a sworn statement showing why the stop notice is not valid) on the public entity, demanding that the public entity release all funds withheld. Upon receipt of such an affidavit, the public entity will serve the subcontractor or supplier who served the stop payment notice with a copy of the affidavit, along with a “demand for release of funds”. If the stop payment notice claimant does not respond with a “counter-affidavit” by the date stated on the notice sent by the public entity (“not less than 10 days nor more than 20 days after service on the claimant of a copy of the affidavit”), then the public entity will be within its rights to release the withheld funds to the direct contractor, and the stop payment notice claimant will relinquish its stop payment notice rights.
Read the court decisionRead the full story...Reprinted courtesy of
William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
A Tuesday With Lisa Colon
July 02, 2024 —
Lisa Colon - The Dispute ResolverAs a seasoned construction lawyer, I've always prided myself on being independent and tough. However, my toughness was tested when my life took an unexpected turn. In 2013, I was diagnosed with a genetic cardiomyopathy, a condition which made it harder for my heart to pump blood. That diagnosis in itself was devasting since I had to change many things about the way I lived, including having to abandon running, my favorite hobby. After living 10 years in this new normal, in May 2023, I was told my right ventricle was no longer working and there were no further therapies available. I needed a heart transplant. The journey was long, arduous, and filled with both physical and emotional challenges. This life-altering experience not only gave me a new lease on life but also profoundly changed my perspective on practicing law. In this post, I will share three key lessons I learned from my heart transplant journey that have significantly impacted how I approach my legal practice.
Lesson 1: The Importance of Patience and Persistence
The journey to receiving a heart transplant is often fraught with uncertainty and long waiting periods. My new heart came quickly. I waited 22 days on the transplant list, but for me, the wait seemed interminable, filled with numerous hospital visits, medical tests, and moments of despair. Then came the recovery. The early days were filled with weekly biopsies, unimaginable nerve pain, and days of wondering if things would ever get better. During this time, I learned the true meaning of patience. Each day was a test of my resolve, and giving up was never an option. I had to persist through the toughest days, believing that a positive outcome was possible.
Read the court decisionRead the full story...Reprinted courtesy of
Lisa Colon, Saul EwingMs. Colon may be contacted at
lisa.colon@saul.com
Construction Problem Halts Wind Power Park
November 13, 2013 —
CDJ STAFFEngineers have yet to determine why a blade on a wind turbine broke at a wind power plant in Michigan, but as part of their investigation they are halting work on the final 10 turbines. The already completed 60 turbines have been taken out of operation. As a result, the Echo Wind Park is no longer generating power.
Scott Simons, a spokesperson for the project, said “we’re not going to put anyone or anything at risk until we get to the bottom of this.” However, Dennis Buda, the project manager, attributed the broken blade to a manufacturing defect. Construction was planned to end in November.
Read the court decisionRead the full story...Reprinted courtesy of
Effectively Managing Project Closeout: It Ends Where It Begins
August 06, 2019 —
William E. Underwood - ConsensusDocsProject closeout is sometimes one of the last things on a contractor’s mind at the beginning of a project, but project closeout can have a huge impact on a contractor’s overall profitability and success. Effectively managing the closeout process is critical, and it all begins with the negotiation and execution of the project contract. This contract can, and should, provide a complete roadmap for project closeout, as addressing these issues on the front end can set up the parties for successful project completion. It is then equally important to re-review the terms of the contract as project closeout approaches to ensure that everyone, including the owner, adheres to all contractual requirements.
This article examines several pertinent issues related to project closeout that should be addressed during the contracting stage, including defining substantial and final completion, inspection and acceptance, punch lists, and warranties.
Defining Substantial and Final Completion
Having clear definitions for both substantial and final completion in your construction contract is an important and necessary early step in achieving successful project closeout.
Read the court decisionRead the full story...Reprinted courtesy of
William E. Underwood, Jones Walker LLPMr. Underwood may be contacted at
wunderwood@joneswalker.com
A Court-Side Seat: SCOTUS Clarifies Alien Tort Statute and WOTUS Is Revisited
July 11, 2021 —
Anthony B. Cavender - Gravel2GavelWhat follows is a brief account of some of the notable U.S. environmental and administrative law cases recently decided.
THE U.S. SUPREME COURT
Nestle USA, Inc. et al. v. Doe, et al.
The Supreme Court has decided another important case interpreting the Alien Tort Statute. Released on June 17, 2021, this decision reverses the Ninth Circuit which had ruled that the respondents—six individuals who alleged they were child slaves employed on Ivory Coast cocoa farms, could sue the American-based companies for aiding and abetting child slave labor. Without dissent, the Court rejected this reading of the ATS and affirmed its own recent rulings on the scope of the ATS.
Read the court decisionRead the full story...Reprinted courtesy of
Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com