Cambridge Massachusetts Building Expert Directory

Brazil Builder Bondholders Burned by Bribery Allegations

October 22, 2014 — Paula Sambo and Sabrina Valle – Bloomberg
Brazil’s biggest construction companies are leaving bondholders with losses in the wake of allegations they bribed Petroleo Brasileiro SA to win contracts. Queiroz Galvao SA’s $700 million of notes due 2019 have dropped 2.5 percent since Oct. 9, when the Department of Justice made available video in which former Petrobras head of refining Paulo Roberto Costa alleged that builders formed a cartel to overcharge for projects and divert money to politicians. OAS SA’s $875 million of 2019 notes have slumped 1.9 percent in that span, versus a 0.1 percent loss for emerging markets. Ms. Sambo may be contacted at psambo@bloomberg.net; Ms. Valle may be contacted at svalle@bloomberg.net Read the court decision
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Reprinted courtesy of Paula Sambo and Sabrina Valle, Bloomberg

Insurer Not Entitled to Summary Judgment on Construction Defect, Bad Faith Claims

October 07, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court denied the insurer's motion for summary judgment seeking to establish there was no coverage for construction defect claims and for bad faith. Country Mut. Ins. Co. v. AAA Constr. LLC, 2019 U.S. Dist. LEXIS 115935 (W.D. Okla. July 12, 2019). Jeffrey and Tammy Shaver entered two contracts with AAA Construction for the construction of a garage and of a barn on their property. After construction was completed, the Shavers sued AAA Construction for building the garage over two high-pressure gas pipelines and the utility easements associated with them. They alleged AAA Construction was negligent for constructing over a working utility line. AAA Construction's insurer, Country Mutual Insurance Company (CMIC) denied coverage because the alleged faulty workmanship of AAA Construction did not constitute an "occurrence" under the policy. CMIC sued AAA Construction for a declaratory judgment that it had no duty to defend or indemnify. CMIC moved for summary judgment. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

What Should Be in Every Construction Agreement

November 04, 2019 — Patrick Barthet - Construction Executive
A detailed and coherent construction agreement in place on every job minimizes confusion, makes clear everyone’s respective responsibilities and reduces disputes. There are six things that should be addressed in every construction agreement. DEFINE THE SCOPE Define what the scope of work is that will be provided. Will it be only materials; will it be materials and labor; or will it be just labor? Be very clear and specific in how the scope of work is spelled out. Many contracts state that the contractor is responsible for all work that’s shown on the plans and specifications, as well as that which is reasonably inferable. While subjective—even if not actually on the plans or specifications, someone may believe that something should be part of the contractor’s work. This could expand what has to be done beyond what was understood or priced. LIST ALL THE EXCLUSIONS Do the parties each have the same understanding as to what is covered in the contract? How often are contractors faced with customers thinking something was included as part of the work? The contractor may have believed that task, or that material, or that specially fabricated item was excluded. But was it? Did the contractor articulate what was and was not in the scope and price? Specifically listing what is excluded can obviate this problem. Articulate what is not in the price or scope and reduce the chance of one party believing that something is to be done when it isn't. Reprinted courtesy of Patrick Barthet, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Barthet may be contacted at pbarthet@barthet.com

New York Court Holds Insurer Can Rely on Exclusions After Incorrectly Denying Defense

March 26, 2014 — Tred R. Eyerly – Insurance Law Hawaii
Reversing its prior decision, the New York Court of Appeals held that the insurer could raise policy exclusions regarding its duty to indemnify after it incorrectly denied its duty to defend. K2 Invest. Group, LLC v. Am. Guar. & Liab. Co., 2014 N.Y. LEXIS 201 (N.Y. Ct. App. Feb. 18, 2014). The insured was sued for legal malpractice. His insurer, American Guarantee, refused to defend and a default judgment was entered. The insured assigned his rights against American Guarantee to the plaintiffs. When the underlying plaintiffs sued, American Guarantee said coverage was barred by two exclusions. In a previous decision, K2 Inv. Group, LLC v. Am Guar. & Liab. Ins. Co., 21 NY 3d 284, the court held that American Guarantee's breach of its duty to defend prevented it from relying on policy exclusions. This, however, contradicted another case issued by the court, Servidone Const. Corp. v. Security Ins. Co. of Hartford, 64 N.Y 2d 419 (1985). Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Look to West Africa for the Future of Green Architecture

May 16, 2022 — Kriston Capps - Bloomberg
In 2014, a crowd of demonstrators stormed Burkina Faso’s National Assembly building, setting it ablaze and ending the nearly 30-year rule of President Blaise Compaoré. A year later, Burkenabè architect Diébédo Francis Kéré was asked to imagine a new parliamentary building — one that would reflect a more democratic future for the West African nation. Kéré conceived a six-story stepped pyramid that slopes up gently from the ground, inviting citizens to gather, climb and take in views of the capital city, Ouagadougou. The ruins of the former parliament building next door would be transformed into a rainwater-collecting memorial park. The project remains a ways off: Burkina Faso continues to struggle with political unrest, including a coup d’état in January 2022. But Kéré’s fast-growing prominence may improve the odds that his vision will eventually materialize. In March, he became the first African architect to win the Pritzker Architecture Prize, the design field’s top honor. Read the court decision
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Reprinted courtesy of Kriston Capps, Bloomberg

Florida Decides Against Adopting Daubert

January 28, 2019 — Rahul Gogineni - The Subrogation Strategist
In Delisle v. Crane Co., 2018 Fla. LEXIS 1883, 43 Fla. L. Weekly S 459, the Supreme Court of Florida reaffirmed that the appropriate test for admissibility of an expert opinion about new or novel scientific evidence is the “Frye” test, not the “Daubert” test. As result of developing mesothelioma, Richard Delisle sued sixteen defendants, including Crane Company (Crane) and R.J. Reynolds, claiming that each exposed him to asbestos, which is a leading cause of mesothelioma. At trial, Crane and R.J. Reynolds sought to preclude the expert opinions of Mr. Delisle’s causation experts. The trial denied the motions and the jury awarded Mr. Delisle $8 million. Read the court decision
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Reprinted courtesy of Rahul Gogineni, White and Williams
Mr. Gogineni may be contacted at goginenir@whiteandwilliams.com

Heathrow Tempts Runway Opponents With $1,200 Christmas Sweetener

December 15, 2016 — Christopher Jasper – Bloomberg
Heathrow Airport Ltd. will offer hundreds of homeowners a 1,000-pound ($1,200) festive sweetener to participate in environmental studies vital to expediting planning for its controversial 16 billion-pound third runway. The owners of houses and farmland on which the new landing strip is due to be built will qualify for the payment in return for agreeing to a handful of visits over about two years, Heathrow Chief Executive Officer John Holland-Kaye said in an interview. The surveys are required to establish the site’s wildlife value. Read the court decision
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Reprinted courtesy of Christopher Jasper, Bloomberg

Critical Materials for the Energy Transition: Of “Rare Earths” and Even Rarer Minerals

September 12, 2022 — Robert A. James, Ashleigh Myers, Shellka Arora-Cox & Amanda G. Halter - Gravel2Gavel Construction & Real Estate Law Blog
As the world pursues ambitious net-zero carbon emission goals, demand is soaring for the critical materials required for the technologies leading the energy transition. Lithium may be the most well-known of these inputs due to its usage in batteries for vehicles and consumer electronics, but roughly 50 other minerals are central to energy transition technologies. During the coming years, producers, manufacturers and end-users will be increasingly exposed to the roles played by “rare earth” elements (roughly, atomic numbers 57 to 71), platinum group metals, and other materials. The reasons for this heightened interest are simple—even if the underlying environmental, political and technological forces at play are complex:

Lower-carbon technologies use different materials than carbon-intensive technologies. The mineral requirements of power and mobility systems driven by renewable, nuclear, hydrogen and fusion energy are profoundly different from those forming the backbone of fossil fuel systems. Minerals such as lithium, nickel, copper, cobalt, and rare earth elements are vital for electric vehicles (EVs), batteries, fuel cells, electricity grids, wind turbines, smart devices, and many other essential and proliferating civilian and military technologies. For example, an offshore wind plant needs 13 times more mineral resources than a gas power plant of a similar size.

Reprinted courtesy of Robert A. James, Pillsbury, Ashleigh Myers, Pillsbury, Shellka Arora-Cox, Pillsbury and Amanda G. Halter, Pillsbury Mr. James may be contacted at rob.james@pillsburylaw.com Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com Ms. Arora-Cox may be contacted at shellka.aroracox@pillsburylaw.com Ms. Halter may be contacted at amanda.halter@pillsburylaw.com Read the court decision
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