Brazil’s Former President Turns Himself In to Police
July 22, 2019 —
Mario Sergio Lima - BloombergBrazil’s former President Michel Temer handed himself in to police following a court ruling that’s unlikely to cause upheaval in domestic politics.
Temer turned himself in on Thursday afternoon, after federal court judges ordered his detention on charges of corruption, embezzlement, money laundering and conspiracy. The former head of state was initially arrested on March 21 but released four days later. Temer’s lawyers did not immediately respond to a request for comment. The 78-year old’s party, the MDB, issued a note condemning the “unreasonable” decision.
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Mario Sergio Lima, Bloomberg
Drafting the Bond Form, Particularly Performance Bond Form
July 14, 2016 —
David Adelstein – Florida Construction Legal UpdatesOftentimes, when it comes to payment and performance bonds (in particular), the bond forms are drafted by the obligee. For example, an owner (as the obligee) may draft the bond forms that it wants its general contractor’s surety to execute. And, a general contractor (as the obligee) may draft the bond forms that it wants its subcontractors’ sureties to execute. As an obligee, it is always beneficial to draft the bond form (particularly the performance bond) that you want the surety to execute. The bond is to benefit you—the obligee—so having a hand in creating conditions to trigger the application of the bond is important, specifically when it comes to triggering a performance bond upon the bond-principal’s default.
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David M. Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Last, but NOT Least: Why You Should Take a Closer Look at Your Next Indemnification Clause
March 09, 2020 —
Aimee Cook Oleson - Construction & Infrastructure Law BlogIndemnification clauses appear in nearly every agreement, but they are often overlooked as mere boilerplate provisions after the parties have painstakingly negotiated all of the other terms. It is not uncommon for parties to simply re-use the indemnity language from a prior agreement without considering whether it is a good fit for their current project. This can be a big mistake that may lead to ambiguities and uncertainties if a dispute arises down the road. A standard or canned indemnification clause might work to undo all of the effort that has gone into properly allocating risk. These clauses often contain language such as “notwithstanding anything to the contrary herein,” or the like, which can alter and override other provisions in the agreement.
Indemnification clauses are arguably the most important part of an agreement when an accident or dispute arises on a project. Therefore, they deserve an extra look before finalizing an agreement. Here are a few issues to keep in mind when reviewing your next indemnification clause:
- Have you included all necessary parties?
- Any party who could face potential liability should be included as an indemnified party. This often includes entities and persons related to the contracting parties, not just the parties themselves.
- A well drafted indemnity clause will ensure that all parties are liable for the result of their own work and negligence and that of any party that they have hired to work on a project. This includes employees, agents, subcontractors, or any other similar party.
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Aimee Cook Oleson, Sheppard MullinMs. Oleson may be contacted at
AOleson@sheppardmullin.com
Insurers' Motion to Determine Lack of Occurrence Fails
August 19, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court, interpreting Massachusetts law, found there were genuine issues of fact as to whether the insured's mixing of biodiesel with home heating fuel was an occurrence. United States Fire Ins. Co. v. Peterson's Oil Serv., Inc., 2024 U.S. Dist. LEXIS 106980 (D. Mass. June 17, 2024).
Homeowners sued Peterson's Oil Service, alleging that Peterson sold them fuel for home heating which contained more that 5% biodiesel. The homeowners further alleged that fuel containing more than 5% biodiesel did not meet industry standards and caued damage to their home heating equipment. Peterson allegedly did not fully disclose the presence of biodiesel in their fuel, despite knowing the risk posed by high-biodiesel blended fuel.
The insurers, United States Fire Insurance Company and The North River Insurance Company, defended Peterson under a reservation of rights. United States Fire issued priomary policies with limits of $1,000,000 per occurrence and $2,000,000 as a general aggregate limit. An endorsement titled "Limited Coverage - Failure to Supply" limited the amount covered for "property damage arising out of the failure of any insured to adequately supply gas, oil, water, electricty or steam" to $250,000. North River issued umbrella policies with additional coverage in the amount of $15,000,000 per occurrnce and in the aggregate if property damage was caused by an occurrence. The umbrella policies also contained a "Failure to Supply Exclusion" which excluded coverage for "property damage arising out of the failure of an insured to adequately supply gas, oil, water, electricty or steam."
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Nebraska’s Prompt Pay Act for 2015
January 21, 2015 —
Craig Martin – Construction Contractor AdvisorContinuing with our theme of Ready for 2015, this blog serves as a reminder of your rights and obligations under Nebraska’s Prompt Pay Act, Neb. Rev. Stat. §§ 45-1201-1211.
As you may recall, Nebraska’s legislature amended the Prompt Pay Act in 2014. The most significant changes are highlighted below.
Attorney’s Fees May be Recovered. The most significant change in the Prompt Pay Act allows contractors to recover damages if they pursue a claim under the Act. And, this is not reciprocal in that the defendant may not recover fees.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Apartment Construction Ominously Nears 25-Year High
August 27, 2014 —
Karen Weise – BloombergIf you live in a major U.S. city and look out over the skyline, chances are good you’ll see construction cranes. Lots of them. Only twice in the past 25 years have new apartment buildings been going up as fast as they are right now. That’s not necessarily a good omen. The first time, in February 2000, was right before the dot-com bubble burst. The second time, January 2006, came right before the housing bubble burst. Now we learn that builders broke ground on 423,000 new multifamily units in July, right before … who knows what?
Monthly building data released earlier this week by the Census Bureau and the Department of Housing and Urban Development showed that new home construction overall posted strong gains in July, with the highest number of new home starts in eight months. The comeback largely manifested in an uptick in apartment buildings with five or more units, which saw an almost 50 percent increase in new starts in July over a year earlier. By comparison, starts on single-family homes were up only about 10 percent over the same period.
That’s part of the reason that the Northeast, with its large, dense cities, saw the biggest monthly increase, up 44 percent from June. That matches the analysis by Trulia (TRLA) Chief Economist Jed Kolko, who found that among metro areas, Boston and New York are building more than in the past.
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Karen Weise, BloombergMs. Weise may be contacted at
kweise@bloomberg.net
Angelo Mozilo Speaks: No Regrets at Countrywide
September 03, 2014 —
Max Abelson – BloombergSix years after he lost control of the largest mortgage lender in the U.S., and days after news that the U.S. Attorney’s Office in Los Angeles plans to sue him, the Countrywide Financial Corp. founder is baffled by a new effort to punish him, proud of past triumphs and incensed by criticism.
“You’ll have to ask those people, ‘What do you have against Mozilo, what did he do?’” he said in a 30-minute call with Bloomberg News before Labor Day, one of his few interviews since the firm’s downfall. “Countrywide didn’t change. I didn’t change. The world changed.”
Interviews with Mozilo, 75, and three friends show what retirement looks like for a chief executive officer linked to the worst financial crisis since the Great Depression. Remaining out of public view like Lehman Brothers Holdings Inc.’s Richard Fuld or Jimmy Cayne of Bear Stearns Cos., Mozilo has submitted plans for Old West-style offices in California, taught students in Italy about finance, invested in a building in the Arizona desert that houses a Taco Bell and written about his life so that his grandchildren will “know the truth.”
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Max Abelson, BloombergMr. Abelson may be contacted at
mabelson@bloomberg.net
Fire Consultants Cannot Base Opinions on Speculation
May 20, 2019 —
Christopher Konzelmann - The Subrogation StrategistLarsen v. 401 Main St. Inc., 302 Neb. 454 (2019), involved a fire originating in the basement of the Quart House Pub (Pub) in Plattsmouth, Nebraska that spread to and damaged Plattsmouth Chiropractic Center, Inc., a neighboring business. Fire investigators could not enter the building because the structure was unsafe and demolished. The chiropractic center nevertheless sued the Pub alleging that its failure to maintain and replace basement mechanical equipment caused ignition.
To prove its claim, the plaintiff retained a mechanical engineer who reviewed documents and concluded that the fire “originated from a failure of one of the items of mechanical equipment located in the area of the [basement] boiler.” Importantly, however, the consultant could not determine the root cause of the fire, could not eliminate the possibility that the fire originated in a compressor, and could not rule out the building’s electrical service as the ignition source because it was outside his area of expertise. The consultant nevertheless found that the fire most likely would not have occurred if the Pub had regularly serviced and replaced the equipment when needed.
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Christopher Konzelmann, White and Williams LLPMr. Konzelmann may be contacted at
konzelmannc@whiteandwilliams.com