Seattle Washington Building Expert Directory

The Utility of Arbitration Agreements in the Construction Industry

December 30, 2019 — Brian L. Gardner & Jason R. Finkelstein - Construction Executive
In today’s ever-evolving world of employment law, it is far from an easy task for construction industry employers to operate their business while successfully navigating all of the potential legal potholes that continue to abound and multiply seemingly with every passing day. This is particularly true in the face of the onslaught of claims lodged by current and former employees in recent years for alleged unpaid wages. While there may not be a “sure bet” way of avoiding such claims, one tool that employers should strongly consider in their arsenal are arbitration and class action waiver agreements. To that end, last year, the United States Supreme Court rendered its ground-breaking decision in Epic Systems Corp. v. Lewis, 584 U.S. ___ (2018). In Epic Systems, the Supreme Court held that arbitration agreements containing class and collective action waivers of wage and hour disputes are enforceable. At the time of the decision, a split of authority existed among courts across the country as to whether such agreements were viable. On the one hand, several courts contended that class waivers unfairly violated employees’ rights to collectively bargain under the National Labor Relations Act. On the other hand, many other courts were finding that such agreements were fully enforceable and supported by the policies promoted under the Federal Arbitration Act. The Epic Systems Court sided with this latter viewpoint, concluding that the FAA’s clear policy promoting arbitration as a dispute resolution mechanism and private parties’ rights to freely negotiate contracts outweighed any potential arguments against such agreements under the NLRA. With wage and hour lawsuits being filed against construction industry employers practically daily, the Epic Systems decision is critically important. Construction employers can now freely enter into arbitration and class waiver agreements with their laborers and thereby potentially limit the cost, expense and exposure of fighting such actions in a public forum on a collective or class-wide basis. To be clear, such agreements will not eliminate employees from bringing such wage and hour claims entirely, nor should the use of those agreements signal to employers that they need not make every good-faith effort to comply with their obligations under the Federal Labor Standards Act and/or any applicable state wage and hour laws. But the reality is that arbitration and class waiver agreements can work to avoid tens or hundreds or even thousands of employees from banding together in some of the massive wage and hour lawsuits being filed across the country. Instead, employers can require that those legal battles be conducted by a single plaintiff in a more controlled environment before an arbitrator (or panel of arbitrators). Reprinted courtesy of Brian L. Gardner & Jason R. Finkelstein, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Mr. Gardner may be contacted at bgardner@coleschotz.com Mr. Finkelstein may be contacted at jfinkelstein@coleschotz.com Read the court decision
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An Interesting Look at Mechanic’s Lien Priority and Necessary Parties

May 13, 2019 — Christopher G. Hill - Construction Law Musings
As regular readers of Construction Law Musings are well aware, I like to discuss mechanic’s liens. Whether it is their picky nature, the way court’s treat them or the soon to take effect changes in the form, mechanic’s liens are a topic near and dear to my heart as a construction attorney. This past month the Fairfax Circuit Court took on the intersection of mechanic’s lien priority under Virginia Code section 43-21 (the lien priority statute) and what constitute necessary parties that must be named in any enforcement suit. In Marines Plumbing, LLC v. Durbin, et al., the Court discussed an all too typical scenario. Marines Plumbing performed repair work on the defendants’ property and the defendants did not pay for the work. Marines Plumbing recorded a memorandum of lien and subsequently sued to enforce that lien. In filing its suit, Marines Plumbing failed to name the trustees and lender on a deed of trust securing the loan on the property. Needless to say, the Defendants moved to dismiss the action for failure to name necessary parties (lender and trustees). Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Claim for Vandalism Loss Survives Motion to Dismiss

October 02, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The court ruled that the insured's claim for vandalism of his house by a renter and for bad faith survived the insurer's motion to dismiss. Wehrenberg v. Metro. Prop. & Cas. Ins. Co., 2015 U.S. Dist. LEXIS 103758 (W.D. Pa. Aug. 7, 2015). The insured's home was insured by a homeowner's policy issued by Metropolitan. The insured rented his home to Alphonso Hyman in October 2011. In lieu of rent, Hyman was to pay the mortgage company the equivalent of his rent each month. In early 2012, Hyman stopped making the monthly rent/mortgage payments. The insured went to the home and found the locks had been changed. Looking in the windows, he saw the interior had been gutted. When the insured reached Hyman, Hyman said he was a contractor and was fixing the structural problems and would put the house back together. He also promised to make up late payments to the mortgage company. The insured did not report what he found to Metropolitan. 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

Industry Practices Questioned After Girder Fractures at Salesforce Transit Center

April 10, 2019 — Nadine M. Post - Engineering News-Record
Attendees of a recent presentation on the earthquake-resistant structure of San Francisco’s Salesforce Transit Center—intended to provide a safe haven when the Big One hits—lauded the engineering of the 4.5-block-long hollow tube that supports the 1.2-million-sq-ft “groundscraper.” But there also was much talk of the project’s black eye, as a consequence of brittle fractures of the bottom flanges of two bridge-like built-up plate girders that span 87 ft over Fremont Street. Read the court decision
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Reprinted courtesy of Nadine M. Post, ENR
Ms. Post may be contacted at postn@enr.com

Louisiana Court Holds That Application of Pollution Exclusion Would Lead to Absurd Results

October 21, 2019 — Sergio F. Oehninger & Daniel Hentschel - Hunton Insurance Recovery Blog
A Louisiana court recently denied an excess insurer’s bid for summary judgment, finding that the insurer’s interpretation of a pollution exclusion would lead to “absurd results.” Central Crude, Inc., a crude oil transporter company, experienced an oil pipeline leak, allegedly causing damage to property belonging to Columbia Gas Transmission Company. Columbia Gas sued Central Crude seeking compensatory damages and injunctive relief to compel remediation of the site. Central Crude sought coverage under a CGL primary insurance policy issued by Liberty Mutual. The insurer initially agreed to cover Central Crude’s “reasonable and necessary costs” relating to the incident, but later refused to defend or indemnify Central Crude for any costs incurred from the incident. As a result, Central Crude brought suit against Liberty Mutual and its excess insurer, Great American, to enforce coverage. Great American moved for summary judgment arguing coverage was excluded by the excess policy’s pollution exclusion, which precludes coverage for injury “arising out of a discharge of pollutants.” Central Crude responded arguing that the exclusion’s applicability was invalidated or at least rendered ambiguous by the Following Form Endorsements, which reflect an intent to mirror the coverage afforded under the primary Liberty Mutual policy, and because coverage appears to be specifically authorized through the Premises Operations Liability Endorsement. Reprinted courtesy of Sergio F. Oehninger, Hunton Andrews Kurth and Daniel Hentschel, Hunton Andrews Kurth Mr. Oehninger may be contacted at soehninger@HuntonAK.com Mr. Hentschel may be contacted at dhentschel@HuntonAK.com Read the court decision
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Jersey Shore Town Trying Not to Lose the Man vs. Nature Fight on its Eroded Beaches

February 26, 2024 — Associated Press - Bloomberg
NORTH WILDWOOD, N.J. (AP) — A New Jersey shore town locked in a legal battle with the state over tens of millions of dollars it has spent trying -- mostly in vain -- to hold back the ocean now is more vulnerable than ever. A recent winter storm destroyed part of the sand dunes in North Wildwood, leaving tiny piles about the size of a child’s sand castle to protect a popular resort town with $2.5 billion worth of private property, and at least that much in government buildings and infrastructure. New Jersey has fined the town $12 million for unauthorized beach repairs that it says could worsen erosion, while the city is suing to recoup the $30 million it has spent trucking sand to the site for over a decade. Read the court decision
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Reprinted courtesy of Bloomberg

A Court-Side Seat: Waters, Walls and Pipelines

August 03, 2020 — Anthony B. Cavender - Gravel2Gavel
Several interesting decisions have recently been made by federal and state courts. FEDERAL APPELLATE COURTS The U.S. Seventh Circuit Court of Appeals – ARCO Shifts from State to Federal and No Vigor for VIM On June 18, 2020, the court decided the case of Baker, et al. v. ARCO, holding that the revised federal removal statutes authorize the removal to federal court of a state-filed complaint against several defendants by the former residents of an Indiana housing complex who contended that the defendants were responsible for the industrial pollution attributed to the operations of a now-closed industrial plant. The housing complex was constructed at the site of the former U.S. Smelter and Lead Refinery. During the Second World War, the plant produced products for the use of the government war effort, thus triggering the applicability of the federal removal statutes. On June 25, 2020, the court decided the case of Greene, et al. v. Westfield Insurance Company. As the court notes, this is a matter that “began as a case about environmental pollution and evolved into a joint garnishment action.” An Indiana wood recycling facility, VIM Recycling, was the subject of many complaints by nearby residents that its operations and waste disposal activities exposed then to dust and odors in violation of federal law and triggered state tort law claims. VIM was sued in state court, but neglected to notify its insurer, as required by its insurance policy with Westfield Insurance. One thing led to another, and a default judgment in the amount of $ 50 million was entered against VIM. Since VIM at that point had no assets, the plaintiffs and later VIM sought recovery from Westfield. When this dispute landed in federal court, the court, after reviewing the policy, concluded that there was a provision excluding coverage when the insured knew it had these liabilities when it purchased the insurance. As a result, the lower court dismissed the lawsuit, and this decision has been affirmed by the Seventh Circuit. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

Pensacola Bridge Repair Plan Grows as Inspectors Uncover More Damage

September 28, 2020 — Jim Parsons - Engineering News-Record
With a still-growing list of repairs needed to restore the barge-damaged Pensacola Bay Bridge, the Florida Dept. of Transportation has yet to determine a timeline for completing repairs. But assessments by the agency’s inspectors indicate that impacts from several Skanska-owned construction barges that unmoored during Hurricane Sally not only resulted in five irreparable spans, as previously reported, but at least two more that will require partial replacement. Jim Parsons, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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