Mitigating the Consequences of Labor Unrest on Construction Projects
February 14, 2023 —
Cameron Lukas, Alan Winkler & Gregory Begg - ConsensusDocsUntil this past year, we have enjoyed an era of relative labor stability. It’s true, however, that labor unrest frequently coincides with inflationary pressure on prices, something that we are currently experiencing. The recent nationwide rail workers strike was averted only through the extraordinary intervention of the federal government. More recently, thousands of academic workers in the University of California system went on strike. Underscoring this development was a November 2022 New York Times article reporting that polls showed the highest level of support for organized labor since the 1960s. The same article also quoted a professor of labor relations warning that the current economy presents a high potential for strikes. This recalls the sixties and seventies when increased costs due to inflation led to a multitude of strikes.
The construction industry has been historically strike-prone with approximately 22% of all strikes during the 1960s involving construction projects, contrasted with the fact that construction workers themselves accounted for only roughly 5% of the nation’s nonagricultural labor force. Incredibly, in 1969 alone, a record number of nearly 1,000 construction strikes occurred nationwide with 20 million worker days lost, more than five times the lost working time of the rest of the economy.
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Reprinted courtesy of
Cameron Lukas, Peckar & Abramson, P.C,
Alan Winkler, Peckar & Abramson, P.C and
Gregory Begg, Peckar & Abramson, P.C
Mr. Lukas may be contacted at clukas@pecklaw.com
Mr. Winkler may be contacted at awinkler@pecklaw.com
Mr. Begg may be contacted at gbegg@pecklaw.com
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Housing Inventory Might be Distorted by Pocket Listings
July 23, 2014 —
Beverley BevenFlorez-CDJ STAFFNBC News reported that pocket listings, or unadvertised listings, may be hiding the true number of homes on the market. “A so-called pocket listing is when the real estate agent signs a listing agreement with a seller but does not advertise it widely or put it in a multiple listing service, where other agents and buyers can see it,” according to NBC News.
Lawrence Yun, chief economist for the Realtors, told NBC News that he believes the perceived shortage of inventory “is due to the prevalence of pocket listings in some markets."
Pocket listings aren’t illegal. There aren’t any “hard numbers” for these unadvertised listings, and so the number of actual listings is based on conjecture by realtors.
"The conditions are ripe for this kind of approach to take," Nela Richardson, chief economist at Redfin, a real estate brokerage, told NBC News. “When there is limited inventory, an agent is able to convince a seller, because there is so much demand for housing that maybe as many eyeballs don’t need to see your home as in a traditional market.”
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Not so Fast – Florida’s Legislature Overrules Gindel’s Pre-Suit Notice/Tolling Decision Related to the Construction Defect Statute of Repose
May 11, 2020 —
Rahul Gogineni - The Subrogation StrategistAs discussed in a prior blog post, in Gindel v. Centex Homes, 2018 Fla.App. LEXIS 13019, Florida’s Fourth District Court of Appeal held that when the plaintiffs provided a pre-suit notice in compliance with §558.004 of Florida’s construction defect Right-to-Cure statute, Fla. Stat. §§ 558.001 to 558.005, et. seq., they commenced a “civil action or proceeding,” i.e. an “action,” within the meaning of Florida’s construction defect Statute of Repose, Florida Statue § 95.11(3)(c). Thus, the court held that the plaintiffs commenced their action prior to the time Florida’s 10-year statute of repose period ended. In overturning the lower court’s dismissal of the action, the court found that because the Right-to-Cure statute, §558 of the Florida Statutes, sets out a series of mandatory steps that must be taken prior to bringing a judicial action, filing pre-suit notice of claim sufficiently constituted an “action” for purposes of Florida’s Statute of Repose.
For various reasons, the parties appealed the decision to the Supreme Court of Florida. In July of 2019, before the Florida Supreme Court could decide whether to hear the case, the Florida legislature passed legislation that effectively overruled the decision. To overrule the decision, the Florida Legislature modified § 558.004 of Florida’s Right-to-Cure statute to expressly state that a notice of claim served pursuant to the Right-to-Cure statute does not toll the 10-year statute of repose period for construction claims. See Fla. Stat.
§ 558.004(d).
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Rahul Gogineni, White and Williams LLPMr. Gogineni may be contacted at
goginenir@whiteandwilliams.com
SEC Climate Change Disclosure Letter Foreshadows Anticipated Regulatory Changes
November 08, 2021 —
Karen C. Bennett & Jane C. Luxton - Lewis BrisboisWashington, D.C. (October 13, 2021) - In late September 2021, the Division of Corporation Finance of the Securities and Exchange Commission (SEC) issued a Sample Letter providing guidance to companies on how their climate disclosures will be analyzed for compliance with material risk reporting obligations. The Sample Letter precedes the SEC’s issuance of mandatory climate-related disclosure rules anticipated by year-end and signals a greater focus on specific information used to support securities filings, a development that businesses should take seriously.
The Sample Letter builds on climate change guidance the SEC issued in 2010 and identifies nine categories of disclosures the SEC suggests may be material risks that must be disclosed. These include:
- Consistency between a company’s corporate social responsibility report and its SEC filings;
- Risks associated with climate-related legislation, regulation, or policy, and resulting compliance costs;
- Litigation risks related to climate change; and
- Risks linked to an array of operational and market factors, including capital expenditures, continuity of business operations, supply chain stability, changing demand, reputation, availability of credit and insurance, and other climate-change related potential impacts on the financial condition of the company.
Reprinted courtesy of
Karen C. Bennett, Lewis Brisbois and
Jane C. Luxton, Lewis Brisbois
Ms. Bennett may be contacted at Karen.Bennett@lewisbrisbois.com
Ms. Luxton may be contacted at Jane.Luxton@lewisbrisbois.com
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High Attendance Predicted for West Coast Casualty Seminar
March 19, 2014 —
Beverley BevenFlorez-CDJ STAFFWith the diverse speakers and topics planned for this year’s West Coast Casualty Seminar in Anaheim, California on May 15th and 16th, attendance should be high. In 2013, there were approximately 1600 attendees coming from across the country as well as the United Kingdom. The event planners recently added additional blocks of rooms, as the Disneyland Hotel has sold out 90% of the previously allotted room blocks. The planners urge attendees to book their rooms soon.
Seminar and panel topics have been announced. Thomas J. Halliwell, Esq. and Barry Vaughan, Esq. will be starting the seminar off with a discussion of “Recent California, Arizona and Nevada Court Decisions that Impact Construction Litigation and Defect Claims.” May 16th will feature a number of interesting break-out sessions including “Working Smarter with Technology” with speakers Brian Kahn, Esq., Paul R. Kiesel, Esq., Hon. Peter Lichtman (ret), Hon. Nancy Wieben Stock (ret), Peter S. Curry and Don MacGregor (Bert L. Howe & Associates, Inc.).
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MBIA Seeks Data in $1 Billion Credit Suisse Mortgage Suit
June 26, 2014 —
Chris Dolmetsch and Jody Shenn – BloombergMBIA Inc. (MBI) asked a judge to order Credit Suisse Group AG (CSGN) to turn over internal records that the bond insurer says bolster its contention the bank lied about how it processed loans packaged into mortgage-backed securities.
MBIA said in a court filing today that Credit Suisse has withheld evidence about how the bank’s actual practices diverged from its representations -- including documents identified as exhibits in other lawsuits based on the same allegations.
The bond insurer asked Justice Shirley Werner Kornreich in New York State Supreme Court in Manhattan to force the bank to search documents and e-mails on its policies and practices including those related to loan underwriting and origination, due diligence and post-acquisition quality-control review.
Mr. Dolmetsch may be contacted at cdolmetsch@bloomberg.net; Ms. Shenn may be contacted at jshenn@bloomberg.net
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Chris Dolmetsch and Jody Shenn, Bloomberg
Is Privity of Contract with the Owner a Requirement of a Valid Mechanic’s Lien? Not for GC’s
July 05, 2021 —
Christopher G. Hill - Construction Law MusingsAs any reader of this construction law blog knows, mechanic’s liens make up much of the discussion here at Construction Law Musings. A recent case out of Fairfax County, Virginia examined the question of whether contractual privity between the general contractor and owner of the property at issue is necessary. As a reminder, in most situations, for a contract claim to be made, the claimant has to have a direct contract (privity) with the entity it sues. Further, for a subcontractor to have a valid mechanic’s lien it would have to have privity with the general contractor or with the Owner.
The Fairfax case, The Barber of Seville, Inc. v. Bironco, Inc., examined the question of whether contractual privity is necessary between the general contractor and the Owner. In Bironco, the claimant, Bironco, performed certain improvements for a barbershop pursuant to a contract executed by the two owners of the Plaintiff. We wouldn’t have the case here at Musings if Bironco had been paid in full. Bironco then recorded a lien against the leasehold interest of The Barber of Seville, Inc., the entity holding the lease. The Plaintiff filed an action seeking to have the lien declared invalid because Brionco had privity of contract with the individuals that executed the contract, but not directly with the corporate entity.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Brenda Radmacher to Speak at Construction Super Conference 2024
November 05, 2024 —
Brenda Radmacher - The Construction SeytBrenda Radmacher, partner in Seyfarth’s Construction group, will present and moderate panels at the 38thAnnual Construction Super Conference 2024 on December 9-11. The conference is recognized as the preeminent construction conference developed for mid to senior-level professionals working in legal and commercial construction markets.
Panel – Looking Around Corners: Emerging Trends and Proactive Solutions
Brenda will co-present a panel on innovative ways to engage experts in construction disputes, focusing on early expert involvement to aid in risk management, issue analysis, mitigation, and documentation for potential litigation.
Panel – Top 10 Issues to Address in Your ADR Process for a Better Solution in Construction Disputes
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Brenda Radmacher, SeyfarthMs. Radmacher may be contacted at
bradmacher@seyfarth.com