Drafting a Contractual Arbitration Provision
February 11, 2019 —
David Adelstein - Florida Construction Legal UpdatesA recent Florida case discussing a contractual arbitration provision in a homebuilder’s contract discussed the difference between a narrow arbitration provision and a broad arbitration provision. See Vancore Construction, Inc. v. Osborn, 43 Fla.L.Weekly D2769b (Fla. 5th DCA 2018). Understanding the distinction between the two types of arbitration provisions is important, particularly if you are drafting and/or negotiating a contractual arbitration provision.
A narrow contractual arbitration provision includes the verbiage “arises out of” the contract such that disputes arising out of the contract are subject to arbitration. Arbitration is required for those claims the have a direct relationship with the contract.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Application of Frye Test to Determine Admissibility of Expert
April 03, 2019 —
David Adelstein - Florida Construction Legal UpdatesFlorida went back to the Frye test/standard, instead of the Daubert test utilized in federal court, to determine the admissibility of expert testimony. The Frye test is more favorable to plaintiffs because it applies when an expert renders an opinion based on new or novel scientific principles. See D.R. Horton, Inc. v. Heron’s Landing Condominium Ass’n of Jacksonville, Inc., 44 Fla.L.Weekly D109b (Fla. 1st DCA 2018) (“The supreme court has described the Frye test as one in which the results of mechanical or scientific testing are not admissible unless the testing has developed or improved to the point where the experts in the field widely share the view that the results are scientifically reliable as accurate. Stated differently, under Frye, the proponent of the evidence has the burden of establishing by a preponderance of the evidence with the general acceptance of the underlying scientific principles and methodology. However, as stated, the Frye standard only applies when an expert attempts to render an opinion that is based upon new or novel scientific principles.”).
In D.R. Horton, Inc., a condominium association sued the developer and general contractor (same entity) for construction defects that included claims in negligence, violation of building code, and breach of statutory warranties. The developer/general contractor moved in limine / to strike the association’s experts under, at the time, a Daubert analysis, but which became a Frye analysis during the pendency of the appeal. The expert opined as to construction defects and damage and the appropriate repairs – really, no different than any construction defect dispute, from what it appeared. The trial court denied the motion and during trial the experts testified and a sizable damages judgment was entered against the developer/contractor prompting the appeal. One issue on appeal was the admissibility of the expert’s opinion. The appellate court noted that a Frye analysis is not necessary because the experts used a scientifically reliable and peer-reviewed methodology.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Anatomy of a Construction Dispute- A Wrap Up
November 15, 2022 —
Christopher G. Hill - Construction Law MusingsOver the past four weeks, I’ve “mused” on the “stages” of a construction dispute. What started as a kernel of thought in my mind turned into what has seemed to be a popular set of four posts that I hope were both informative and interesting. Because of the great feedback I’ve gotten, I thought that I’d consolidate the posts into one so that my readers (thank you, by the way) will have them all in one place. Here they are:
The Anatomy of a Construction Dispute- The Claim– This post discussed the steps for setting out a claim under your construction contract and the steps to lay the groundwork should you need to move forward with a more formal means of collection.
The Anatomy of a Construction Dispute Stage 2- Increase the Heat– This post discussed various methods to increase the heat on the party with whom you have a claim prior to litigation or arbitration.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Luxury-Apartment Boom Favors D.C.’s Millennial Renters
August 27, 2014 —
Heather Perlberg – BloombergMandy Johnson was priced out of Virginia Square Towers, a luxury-apartment building rising across the Potomac River from Washington, D.C., where about $3,000 a month would bring perks such as a swimming pool, yoga studio and a game room with virtual golf and zombie dodge ball.
Less than 24 hours after declining to sign the contract in June, she got an e-mail from a leasing manager offering two months’ free rent. That brought the monthly payment down for Johnson and her roommate by about $450 over the term of the lease and put the place within reach.
“The building is still under construction, so we have to deal with that part, but we are also able to have this brand new apartment for the same price as one in older buildings, so we went for the shiny object,” said Johnson, 28, who works at a nonprofit that gives scholarships to military families.
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Heather Perlberg, BloombergMs. Perlberg may be contacted at
hperlberg@bloomberg.net
Louisiana District Court Declines to Apply Total Pollution Exclusion
December 15, 2016 —
William S. Bennett – Saxe Doernberger & Vita, P.C.The United States District Court for the Eastern District of Louisiana recently decided that a broad total pollution exclusion in a marine general liability policy did not bar coverage.
The insurer could not unambiguously establish, based on the facts of the underlying case, that waste from a shipyard’s sandblasting activities met the requirements of the exclusion.
The court found that the insurer could not meet Louisiana’s three-part test to determine whether the policy’s total pollution exclusion applied. The Doerr test requires an insurer to refer to the allegations in the underlying complaint to prove 1) the insured is a “polluter”, 2) the injury-causing substance is a “pollutant,” and 3) there was a “discharge, dispersal, seepage, migration, release or escape” of the pollutant.
Total pollution exclusions are extremely prohibitive for policyholders because they eliminate coverage for virtually all pollution incidents, but this decision reinforces that policyholders may still have a path to coverage.
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William S. Bennett, Saxe Doernberger & Vita, P.C.Mr. Bennett may be contacted at
wsb@sdvlaw.com
Fraud and Construction Contracts- Like Oil and Water?
December 31, 2014 —
Christopher G. Hill – Construction Law MusingsWe have discussed the interaction of fraud and breach of contract actions on occasion here at Construction Law Musings. In most cases the two do not mix. Between the economic loss rule and the general desire of Virginia courts to keep contract actions and tort actions separate, most of the time it is impossible to make a fraud action relating to a contract stick in a construction context.
The Virginia Supreme Court recently confirmed this fraud/contract distinction. As discussed in the Virginia Real Estate Land Use & Construction Law blog (Thanks Heidi!), Station No. 2, LLC v. Lynch, et. al. strongly re-states the Virginia courts’ strong reluctance to allow a breach of contract turn into a claim for fraud. Without re-iterating the great discussion of the facts of the case found in the post by Heidi Meizner, suffice it to say that certain contractual promises between and among the parties were not fulfilled much to Station 2, LLC’s detriment.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Wildfire Insurance Coverage Series, Part 3: Standard Form Policy Exclusions
July 11, 2022 —
Scott P. DeVries & Yosef Itkin - Hunton Insurance Recovery BlogEven when claims are within the scope of coverage, insurers often rely on exclusions in an attempt to avoid coverage for wildfire claims. In this post in the Blog’s Wildfire Insurance Coverage Series, we discuss the interplay between coverage grants and exclusions, and the “anti-concurrent cause” provision.
Insurers may cite exclusions in an attempt to reduce or avoid liability. The insurance industry has long relied on the Insurance Services Office (ISO) to draft standard form policy language and secure approval as required by state regulatory agencies. ISO Form HO 00 03 10 00 (Section I—Exclusions, Part B) provides the following form exclusionary language:
We do not insure for loss to property described in Coverages A and B caused by any of the following. However, any ensuing loss to property described in Coverages A and B not precluded by any other provision in this policy is covered.
Reprinted courtesy of
Scott P. DeVries, Hunton Andrews Kurth and
Yosef Itkin, Hunton Andrews Kurth
Mr. DeVries may be contacted at sdevries@HuntonAK.com
Mr. Itkin may be contacted at yitkin@HuntonAK.com
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Public Contract Code 9204 – A New Mandatory Claims Process for Contractors and Subcontractors – and a Possible Trap for the Unwary
March 22, 2017 —
Alex R. Baghdassarian & Joseph S. Sestay – Peckar & Abramson, P.C.New California legislation affecting public works contractors was adopted pursuant to Assembly Bill 626, sponsored by the Union Trade Contractors Association of California and endorsed by various trade and contractor associations including the AGC. AB 626, which was intended to assist contractors in presenting claims against public agencies, affords new opportunities, and some potential pitfalls, to contractors and subcontractors submitting claims to public owners.
The legislation, codified at California Public Contract Code (PCC) section 9204, is effective for public works contracts entered into after January 1, 2017. All public entities (including the CSUS and the UC system), other than certain Departments of the State (CalTrans, High-Speed Rail Authority, Water Resources, Parks and Recreation, Corrections and Rehabilitation, General Services and the Military) are bound by the provisions of PCC Section 9204. PCC 9204 establishes a mandatory pre-litigation process for all claims by contractors on a public works project. It is an attempt to address the reluctance of public owners to promptly and fairly negotiate change orders on projects, putting some teeth to the mandate of existing law under PCC Section 7104, which precludes public owners from shifting to the contractor the risk of addressing differing subsurface and/or concealed hazardous site conditions.
Reprinted courtesy of
Alex R. Baghdassarian, Peckar & Abramson, P.C. and
Joseph S. Sestay, Peckar & Abramson, P.C.
Mr. Baghdassarian may be contacted at abaghdassarian@pecklaw.com
Mr. Sestay may be contacted at jsestay@pecklaw.com
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