Gilbert’s Plan for Downtown Detroit Has No Room for Jail
October 08, 2014 —
Chris Christoff – BloombergBillionaire Dan Gilbert envisions a vibrant and shiny downtown Detroit, where he owns a casino and about 60 buildings. His urban Eden doesn’t include a jail with 2,000 criminals.
Gilbert is resisting county officials’ plans to restart construction on a half-finished jail mired in cost overruns, criminal investigations and debt. The project, which the Wayne County Commission may revive tomorrow, would replace a complex on land that Gilbert, the 52-year-old founder and chairman of Detroit-based Quicken Loans Inc., offered to buy for $50 million to build a hotel, housing and stores.
The dispute over the jail, which has sat unfinished for 16 months, pits one of Detroit’s most prominent boosters against a county government over how to reinvigorate the city’s heart. Gilbert, whose company is the nation’s largest online retail mortgage lender, has invested $1.3 billion there, betting on the former auto-manufacturing capital’s resurgence after decades of decline that pushed it into a record $18 billion municipal bankruptcy.
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Chris Christoff, BloombergMr. Christoff may be contacted at
cchristoff@bloomberg.net
Court Sharpens The “Sword” And Strengthens The “Shield” Of Contractors’ License Law
July 24, 2023 —
Kyle S. Case - ConsensusDocsPerforming construction work without the necessary license can have significant repercussions on a contractor’s business. California in particular has become known for its imposition of “strict and harsh” penalties for a contractor’s failure to maintain proper licensure. In the realm of public works projects, any contract with an unlicensed contractor is deemed void. See Business & Professions Code Section 7028.15(e). On private projects, California’s Contractors’ License Law prohibits contractors from maintaining any action to recover payment for their work, and more severe, may require a contractor to disgorge all funds paid to it for performing unlicensed work. See Business & Professions Code Section 7031). These methods of deterrence are referred to as the “shield” and “sword” of the Contractors’ State License Law. Loranger v. Jones, 184 Cal. App. 4th 847, 854 (2010).
In any discussion surrounding licensure, it is important to review the language of the Business and Professions Code (“Bus. & Prof.”). Section 7031(a) states:
Except as provided in subdivision (e), no person engaged in the business or acting in the capacity of a contractor, may bring or maintain any action, or recover in law or equity in any action, in any court of this state for compensation for the performance of any act or contract where a license is required by this chapter without alleging that they were a duly licensed contractor at all times during the performance of that act or contract regardless of the merits of the cause of action brought by the person…
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Kyle S. Case, Watt, Tieder, Hoffar & Fitzgerald LLPMr. Case may be contacted at
kcase@watttieder.com
Quick Note: Attorney’s Fees on Attorney’s Fees
June 13, 2022 —
David Adelstein - Florida Construction Legal UpdatesIn a recent
case, the appellate court held that the attorney’s fees provision in the contract was NOT broad enough to entitle the prevailing party to recover attorney’s fees for litigating the amount of attorney’s fees. This is known as “fees on fees” which is when you can recover your prevailing party attorney’s fees when you are fighting over the quantum that should be awarded to you as the prevailing party.
The attorney’s fees provision at-issue stated:
“In any lawsuit to enforce the Lease or under applicable law, the party in whose favor a judgment or decree has been rendered may recover its reasonable court costs including attorney’s fees from the non-prevailing party.”
Language similar to this language can be found in many contracts as a prevailing party attorney’s fees provision.
However, this provision was NOT broad enough to recover “fees on fees.” As explained in
this article, if this is a consideration, you can negotiate or include this provision into your construction contract by expanding the scope of the prevailing party attorney’s fees provision to clarify that it entitles the prevailing party to recover attorney’s fees in litigating the amount of attorney’s fees.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Certified Question Asks Washington Supreme Court Whether Insurer is Bound by Contradictory Certificate of Insurance
January 21, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe Ninth Circuit certified a question to the Washington Supreme Court as follows:
Under Washington law, is an insurer bound by representations made by its authorized agent in a certificate of insurance with respect to a party's status as an additional insured under a policy issued by the insurer, when the certificate includes language disclaiming its authority and ability to expand coverage?
T-Mobile USA Inc. v. Selective Ins. Co lf Am., 2018 U.S. App. LEXIS 31863 (9th Cir. Nov. 9, 2018).
In 2010, T-Mobile entered into a Field Services Agreement (FSA) with Innovative Engineering, Inc. under which Innovative would provide services in connection with the construction of rooftop cellular antennae towers in New York City. The FSA required Innovative to maintain general liability insurance naming T-Mobile as an additional insured, and required that Innovative provide T-Mobile with certificates of insurance documenting the coverage. Innovative obtained coverage from Selective Insurance Company of America.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
U.S. Supreme Court Allows Climate Change Lawsuits to Proceed in State Court
May 01, 2023 —
George Leahy - Lewis BrisboisWashington, D.C. (April 25, 2023) - On Monday, April 24, the U.S. Supreme Court refused to hear appeals by several major energy companies that sought to remove lawsuits filed by state and local governments from state court into federal court. The Court’s
certiorari denials reject companies’ appeals in five separate cases, which involved claims brought by municipalities in Colorado, Maryland, California, Hawaii, and Rhode Island. Each municipality claims that it has been harmed by the effects of climate change, allegedly attributed to the companies’ carbon emissions.
The Court’s denials effectively allow the lawsuits to continue in state court, often seen as favorable for plaintiffs due to a greater potential for jury trials and associated damages awards than might be available in federal court. Following a
2021 Supreme Court ruling in a related case that granted the companies an additional chance to argue that their cases should be heard in federal court, the lower federal appeals courts in each of the five cases concluded that the companies had not established sufficient grounds to establish proper venue and jurisdiction in federal court. The Supreme Court’s April 24 denial leaves those decisions unaltered, allowing the lawsuits to continue in state court for further consideration.
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George Leahy, Lewis Brisbois
Why’d You Have To Say That?
October 09, 2023 —
Daniel Lund III - LexologyA surety seeking collateral from indemnitors filed suit in federal court in Louisiana pursuant to a forum selection clause in the indemnity agreement between the parties.
The indemnitors were being called upon to provide collateral as a result of defaults on two Louisiana Department of Transportation projects. Seeking to move the dispute to Louisiana state court from federal court, the indemnitors filed a forum non conveniens motion.
Among the arguments of the indemnitors removing the case out of federal court was the doctrine of “direct-benefits” estoppel – a policy which “‘holds a non-signatory to a clause in a contract if it “knowingly exploits the agreement” containing the clause.’ In re Lloyd's Reg. N. Am., Inc., 780 F.3d 283, 291 (5th Cir. 2015) (quoting Bridas S.A.P.I.C. v. Gov't of Turkmenistan, 345 F.3d 347, 361-62 (5th Cir. 2003)).”
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Haight’s John Arbucci and Kristian Moriarty Selected for Super Lawyers’ 2020 Southern California Rising Stars
July 20, 2020 —
T. Giovanni “John” Arbucci & Kristian B. Moriarty - Haight Brown & BonesteelCongratulations to attorneys T. Giovanni “John” Arbucci and Kristian Moriarty who were selected to the Super Lawyers 2020 Southern California Rising Stars list. Each year, no more than 2.5% of the lawyers in the state are selected by the research team at Super Lawyers to receive this honor.
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T. Giovanni “John” Arbucci, Haight Brown & Bonesteel and
Kristian B. Moriarty, Haight Brown & Bonesteel
Mr. Arbucci may be contacted at jarbucci@hbblaw.com
Mr. Moriarty may be contacted at kmoriarty@hbblaw.com
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New Jersey Supreme Court Ruled Condo Association Can’t Reset Clock on Construction Defect Claim
September 20, 2017 —
David Suggs – Bert L. Howe & Associates, Inc.The New Jersey Law Journal reported that New Jersey Supreme Court “justices reversed an Appellate Division ruling that found three suits filed against contractors by the Palisades at Fort Lee Condominium Association on various dates in March and April 2009 and September 2010 were within the six-year limit because the association received notice of construction defects in the building in an engineer's report issued in June 2007.”
The justices stated that the statute of limitations is not reset when property changes hands: "An owner of a building cannot convey greater property rights to a purchaser than the owner possessed. If the building's owner knew or reasonably should have known of construction defects at the time of the sale of the property, the purchaser takes title subject to the original owner's right—and any limitation on that right—to file a claim against the architect and contractors."
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