The General Assembly Seems Ready to Provide Some Consistency in Mechanic’s Lien Waiver
March 14, 2018 —
Christopher G. Hill – Construction Law MusingsBack in 2015, the
Virginia General Assembly amended the mechanic’s lien statute (Va. Code 43-3) here in Virginia to preclude any contractual provision that diminishes a subcontractor or supplier’s “lien rights in a contract in advance of furnishing any labor, services, or materials.” However, this amendment was only applicable to subcontractors and suppliers. For political and other reasons, general contractors in Virginia were left out of this change. This omission by the legislature put Virginia general contractors in the position of potentially being forced by project owners to waive their mechanic’s lien rights without the ability to run that risk downstream to their subcontractors and suppliers.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
The Pandemic of Litigation Sure to Follow the Coronavirus
March 30, 2020 —
Aaron Lovaas - Newmeyer DillionAs the Coronavirus crisis persists, America’s richly diverse private business sector finds itself increasingly subject to unprecedented governmental orders and restrictions that were unheard of only a few weeks ago. While the various “shutdown,” “shelter in place,” and “non-essential business” orders all aim to protect the public health, there is no doubt that the wave of litigation to follow is already swelling.
Business interruption, civil authority, and cyber insurance coverages have already been widely discussed as issues certain to be litigated over the coming months and beyond. Additionally, breach of contract litigation is likely to spike as parties attempt to recoup their losses from canceled events, unfulfilled purchase commitments and other unmet obligations.
Moreover, regional and national businesses are now in the difficult position of managing their respective affairs to comply with a patchwork of executive orders that are inconsistent from state to state. And, as the pandemic wears on, many are questioning the authority under which some of these executive orders and emergency regulations are being issued in the first place. Indeed, constitutional challenges are almost certain to follow as the business community reframes the characterization of their losses into notions of unconstitutional takings of private property and governmental impairment of private contract rights.
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Aaron Lovaas, Newmeyer DillionMr. Lovaas may be contacted at
aaron.lovaas@ndlf.com
Disaster-Relief Bill Stalls in Senate
April 22, 2019 —
Tom Ichniowski - Engineering News-RecordA partisan squabble over funds to help Puerto Rico continue its long recovery and rebuilding from two hurricanes in 2017 has tied up a wide-ranging spending package on Capitol Hill. At stake in the fight are hundreds of millions of dollars for reconstruction and related work around the U.S.
Mr. Ichniowski may be contacted at kormanr@enr.com
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Tom Ichniowski, ENR
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Standard For Evaluating Delay – Directly from An Armed Services Board Of Contract Appeal’s Opinion
October 04, 2021 —
David Adelstein - Florida Construction Legal UpdatesSometimes, it is much better to hear it from the horse’s mouth. That is the case here. The Armed Services Board of Contract Appeal’s (ASBCA) opinion in Appeals of -GSC Construction, Inc., ASBCA No. 59402, 2020 WL 8148687 (ASBCA November 4, 2020) includes an informative discussion of a contractor’s burden when it encounters excusable delay and, of importance, the standard for evaluating delay. It’s a long discussion but one that parties in construction need to know, appreciate, and understand. EVERY WORD IN THIS DISCUSSION MATTERS.
Construction projects get delayed and with a delay comes money because time is money. Many claims are predicated on delay. These can be an owner assessing liquidated damages due to a delayed job or a contractor seeking its costs for delay. Either way, the standard for evaluating delay and the burdens imposed on a party cannot be understated and, certainly, cannot be overlooked. For this reason, here is the discussion on evaluating delay directly from the horse’s mouth in the Appeal of-GSC Construction, Inc.:
The critical path is the longest path in the schedule on which any delay or disruption would cause a day-for-day delay to the project itself; those activities must be performed as they are scheduled and timely in order for the project to finish on time. Wilner v. United States, 23 Cl. Ct. 241, 245 (1991). In Yates-Desbuild Joint Venture, CBCA No. 3350 et al., 17-1 BCA ¶ 36,870, our sister board compiled an excellent and very helpful synopsis of the standards for evaluating delay claims, which I adopt nearly verbatim among the discussion that follows.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Construction Defect or Just Punch List?
December 11, 2013 —
CDJ STAFFA couple in Dickinson, North Dakota have put big, green “buyer beware” signs on their home. They’re not planning on selling, but just trying to warn prospective neighbors of the problems they’ve had since moving into their new home. Andrea Thermes said her problems included leaking windows and uneven floors. “I absolutely love my house,” she said. “If we didn’t have the issues, I would be the happiest girl in the world.”
One problem was a leaking picture window in her living room. The builder replaced it, but the first window that arrived was the wrong size. The new home is still under a warranty and the builder has been fixing issues as they arise. “They are upset with some of the problems they have had,” said William Henry, president of B-Dev, the builder of the home. Since Ms. Thermes’s window wasn’t repaired in time for Thanksgiving, Mr. Henry sent wine and beer to her home. “Not that that makes up for not having their window, but we’re trying to make this work and trying to appease them,” he said.
But Mr. Henry said that some of the problems “are not really material defects,” characterizing them as “punch-list and warranty items.”
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Despite Health Concerns, Judge Reaffirms Sentence for Disbarred Las Vegas Attorney
October 02, 2015 —
Beverley BevenFlorez-CDJ STAFFThe Las Vegas Review-Journal reported that the “life-threatening health and custody status of disbarred Las Vegas attorney Barry Levinson remained uncertain Thursday after a judge refused to reconsider his harsh prison sentence.” Levinson had been convicted of defrauding homeowners associations.
Brent Bryson, Levinson’s attorney, claims that the stress of custody issues has caused health problems for his client, reported the Las Vegas Review-Journal. Bryan stated that “Levinson had heart failure while in federal custody and needs either a special heart valve operation in Southern California or a heart transplant to survive.”
District Judge Michael Villani suggested that Bryson should file a civil suit for the matter.
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Blog: Congress Strikes a Blow to President Obama’s “Fair Pay and Safe Workplaces” Executive Order 13673
March 22, 2017 —
John P. Ahlers - Ahlers & Cressman PLLCOn October 25, 2016, the Federal Acquisition Regulatory Council (FAR Council) and the U.S. Department of Labor implemented former President Obama’s Executive Order 13673: “Fair Pay and Safe Workplaces” rules. The rules became effective on October 25, 2016 and fundamentally altered the way federal contractors and subcontractors will need to handle and resolve employment and labor claims, as well as compliance issues involving their entire workforce. The final rules can also result in otherwise-capable companies being “blacklisted” and effectively barred from federal contracts and subcontracts based on labor and employment law violations related or unrelated to prior or current federal contract performance. The centerpiece of the new regulatory scheme was the new disclosure and responsibility requirements. Contractors and subcontractors needed to disclose all “labor law decisions” that they had during the three years (prior to bid submission) as part of the process of applying for a new federal contract or subcontract. If a contractor or subcontractor has too many “labor law decisions” to report or the few it has are too severe, pervasive, repeated, or willful in the eyes of the government “experts,” the company could be deemed “non-responsible” and denied a contract.
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John P. Ahlers, Ahlers & Cressman PLLCMr. Ahlers may be contacted at
jahlers@ac-lawyers.com
Litigation Privilege Saves the Day for Mechanic’s Liens
November 23, 2020 —
Stephen M. Tye & Lawrence S. Zucker II - Haight Brown & BonesteelIn RGC Gaslamp v. Ehmcke Sheet Metal Co., the Fourth Appellate District held that a trial court properly granted an anti-SLAPP motion because the recording of a mechanic’s lien is protected by the litigation privilege.
In RGC Gaslamp, subcontractor Ehmcke Sheet Metal Company (“Ehmcke”) recorded a mechanic’s lien to recoup payment due for sheet metal fabrication and installation done at a luxury hotel project in downtown San Diego. Project owner RGC Gaslamp, LLC (“RGC”) recorded a release bond for the lien. Thereafter, Ehmcke recorded three successive mechanic’s liens identical to the first, prompting RGC to sue it for quiet title, slander of title, and declaratory and injunctive relief. After retaining California counsel, Ehmcke then released its liens and advised it did not intend to record any more. Ehmcke then filed a special motion to strike under the anti-SLAPP statute (Code Civ. Proc. § 425.16.) which was granted.
Reprinted courtesy of
Stephen M. Tye, Haight Brown & Bonesteel LLP and
Lawrence S. Zucker II, Haight Brown & Bonesteel LLP
Mr. Tye may be contacted at stye@hbblaw.com
Mr. Zucker may be contacted at lzucker@hbblaw.com
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