General Contractor’s Intentionally False Certifications Bar It From Any Recovery From Owner
November 03, 2016 —
Masaki James Yamada – Ahlers & Cressman PLLCIn a public works dispute in Massachusetts, a Massachusetts Court judge ruled that a general contractor could not recover any of its over $14 million claim against a public owner because it had violated its contract with the Owner by certifying that it had paid its subcontractors in full and on time when in fact it had not.[i] The case involves a contract dispute arising from a state and federally-funded project to design and construct a fiber optic network in western Massachusetts. The Owner was a state development agency established and organized to receive both state and federal funding to build a 1,200–mile fiber optic network known as MassBroadband123 in Western Massachusetts (the Project). Of that amount, $45.4 million was awarded pursuant to the American Recovery and Reinvestment Act of 2009 (ARRA). One of the stated goals of ARRA was (as its title suggests) to create jobs in the wake of the 2008 recession and to provide a direct financial boost to those impacted by the economic crisis. In the context of the instant case, that meant that, if there were to be subcontractors on the job providing labor and materials, they needed to be paid on a timely basis in keeping with the statutory purpose of stimulating the economy.
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Masaki James Yamada, Ahlers & Cressman PLLCMr. Yamada may be contacted at
myamada@ac-lawyers.com
The Construction Lawyer as Problem Solver
October 21, 2015 —
Christopher G. Hill – Construction Law MusingsAs a construction attorney here in Virginia I “wear many hats.” Counselor, mediator, adviser, risk manager, litigator, and others depending upon the situation. I take each and every one of these roles seriously and at times take on more than one depending on a client’s situation. One “role” that I try to keep in mind every day when I come to work is that of problem solver.
In response to the various attacks on an attorney’s role in the construction world, I have written that your friendly neighborhood construction lawyer can and should be part of the solution, and not part of the problem. A big part of this in my mind is the need to focus on the fact that any construction dispute is a problem to be solved, preferably earlier rather than later. By the time that a construction matter reaches my desk, the parties to that dispute have likely reached some sort of impasse in need of an efficient solution.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
The G2G Year in Review: 2020
January 18, 2021 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogAs we say goodbye to 2020, we wanted to share our top five most-read articles of 2020 from Gravel2Gavel. The most-read blog posts covered real estate and construction industry trends ranging from proptech trends like blockchain tokenization to COVID-specific rent carveouts and management disclosures to trends and market updates. Our posts provided deep industry insight and summarized hot topics that addressed the legal implications and disruptions that affected the market. Our 2020 roundup:
- Blockchain-Based Tokenization of Commercial Real Estate by Josh Morton and Matt Olhausen. Josh and Matt discuss the increasing interest in technology applications for real estate assets, or “Proptech,” and tokenization’s potential.
- Real Estate Trends: Looking Ahead to 2021 by Adam Weaver. Adam discussed the pandemic’s influence and future trends for the real estate market.
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Pillsbury's Construction & Real Estate Law Team
In South Carolina, Insurer's Denial of Liability Does Not Waive Attorney-Client Privilege for Bad Faith Claim
October 14, 2019 —
Ashley L. Cooper & Bethany L. Barrese - Saxe Doernberger & Vita, P.C.Determining the scope of discovery can be challenging, particularly when an insurance bad faith claim is involved. Courts often face the difficult decision of weighing the importance of preserving attorney-client privilege with the public policy rationale of protecting an insured against their insurer’s bad faith behavior. The Supreme Court of South Carolina recently recognized this dilemma by rejecting a hardline approach to bad faith discovery disputes and adopting a case-by-case analysis.
The case, In re Mt. Hawley Ins. Co.,1 arose out of a construction defect claim. ContraVest Construction Company (“ContraVest”) constructed a development in South Carolina and was later sued for alleged defective construction. ContraVest sought coverage for the lawsuit from its insurers, including Mount Hawley Insurance Company (“Mount Hawley”), which had provided excess commercial liability insurance to ContraVest during the relevant timeframe. Mount Hawley denied the claim, which prompted ContraVest to sue it for bad faith, breach of contract, and unjust enrichment.
Reprinted courtesy of
Ashley L. Cooper, Saxe Doernberger & Vita, P.C. and
Bethany L. Barrese, Saxe Doernberger & Vita, P.C.
Ms. Cooper may be contacted at alc@sdvlaw.com
Ms. Barrese may be contacted at blb@sdvlaw.com
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Federal District Court Declines Invitation to Set Scope of Appraisal
January 18, 2021 —
James M. Eastham - Traub LiebermanIn Mt. Hawley Ins. Co. v. Harrods Eastbelt, Ltd., No. CV H-20-2405, 2020 WL 7632250 (S.D. Tex. Dec. 22, 2020), the United States District Court for the Southern District of Texas addressed a request to set the scope of an appraisal by requiring the appraisers to use a specific format for the appraisal. At issue was a claim for damages to three insured buildings allegedly damaged during Tropical Storm Imelda. The insurer had denied coverage based on the asserted lack of wind-created openings as required for coverage under the policy. Rather, the insurer took the position that the interior leaks were caused by a number of excluded causes including long-term weathering, wear and tear, age-related deterioration, ponding, and long-term leaks.
In response to the denial of coverage, the insured invoked the appraisal provision of the policy which provided, among other things, that the “appraisers will state separately the value of the property and amount of loss.” Despite the language of the appraisal provision, the Insurer sought an order requiring the appraisers to state the amount of loss separately for each portion of the property in dispute and for each major building component including separate amounts of loss for roofs, exterior walls, windows, and interior water damage.
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James M. Eastham, Traub LiebermanMr. Eastham may be contacted at
jeastham@tlsslaw.com
Lack of Flood Insurance for New York’s Poorest Residents
September 10, 2014 —
Beverley BevenFlorez-CDJ STAFFProperty Casualty 360 reported that for residents of the flood-prone area of Queens, New York, even “the slightest downpour could mean evacuating their homes for a night or even weeks at a time.” The problem is that “[m]uch of Southeast Queens, an area that includes the neighborhoods of Jamaica, St. Albans and Hollis, and parts of the Rockaways, sits on a massive aquifer that swells with groundwater and spills over into streets and eventually into basements and homes after heavy rains.” However, according to Property Casualty 360, Southeast Queens residents “have been battling insurance agencies for over a decade.”
“I would say more than 90% of the homeowners I speak to out here, they’re looking for insurance and they’re not getting it,” Councilman Donovan Richards, who represents Roseland and Far Rockaway, told Property Casualty 360. “Insurance companies obviously don’t want to take the risk.”
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Recent Bribery and Anti-Corruption Enforcement Trends in Global Construction Industry
August 26, 2019 —
Ralph A. Finizio & Anthony Finizio - ConsensusDocsBribery and corruption have long plagued the construction industry, particularly in the developing world and emerging markets. Large contracts often trickle down through layers of subcontractors, presenting opportunities for corruption at each level. The risk is enhanced in certain foreign jurisdictions, where large corporations may be wholly or partially state-owned enterprises and public officials may expect payment in exchange for state-issued licenses or government contracts.
Recent enforcement trends indicate that both the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) are increasingly targeting the construction industry for anti-bribery and corruption actions under the Foreign Corrupt Practices Act (FCPA). Several former DOJ officials also recently commented that the construction industry has become a focus of anti-corruption enforcement efforts.
The FCPA is a formidable tool for regulators, making it unlawful to influence a foreign government official with any type of payment or personal reward. While certain safe harbors apply — including de minimis payments made to expedite routine governmental action or the payment being lawful in the foreign jurisdiction — these exceptions are construed narrowly and can be difficult to apply in practice.
Reprinted courtesy of
Ralph A. Finizio, Pepper Hamilton LLP and
Anthony Finizio, Pepper Hamilton LLP
Mr. Finizio may be contacted at finizior@pepperlaw.com
Mr. Finizio may be contacted at finizioa@pepperlaw.com
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PSA: New COVID Vaccine ETS Issued by OSHA
November 08, 2021 —
Christopher G. Hill - Construction Law MusingsBack in September, Joe Biden announced that his administration would mandate vaccinations for employers with over 100 employees. Today, the Occupational Safety and Health Administration (OSHA) issued
the emergency temporary standard implementing that mandate.
While I have not had a chance to thoroughly review the standard and how it will impact the clients of my firm or those in the Virginia construction industry, OSHA provided
a fact sheet outlining the basics that I recommend you review as soon as possible.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com