The Biggest Trials Coming to Courts Around the World in 2021
January 04, 2021 —
Anthony Lin - BloombergSeveral former world leaders, a Hong Kong media tycoon, the CEO of Theranos and Jeffrey Epstein’s confidante — all are scheduled to have their day in court next year.
With vaccinations heralding a return to normalcy, the next year should see courtrooms around the world coming back to life. Ghislaine Maxwell, China critic Jimmy Lai and Samsung heir Jay Y. Lee are among those facing high-profile criminal cases in 2021. Some proceedings, including the fraud trial of Theranos founder Elizabeth Holmes, are resuming after being postponed by the pandemic. Another delayed case, UBS’s appeal of its $4.9 billion French government tax penalty, is among the many that will be heard by higher-level and supreme courts.
There are also a number of cases against former world leaders, including France’s Nicolas Sarkozy, Malaysia’s Najib Razak and South Africa’s Jacob Zuma. One of the most tantalizing questions will be whether a certain former U.S. president could find himself facing trial as well.
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Anthony Lin, Bloomberg
BIOHM Seeks to Turn Plastic Waste into Insulation Material with Mushrooms
July 27, 2020 —
Aarni Heiskanen - AEC BusinessBIOHM is a research and development led UK start-up that aims to revolutionize the construction industry with its bio-based materials. Among their products are insulation panels made from mycelium, the root formations of fungi. Recently, the company discovered that certain fungal species can consume plastic as a food source. This invention could bring about new construction materials that originate from plastic waste.
“Evolving from eating leaf matter and the odd bit of tree bark, to eating plastic might seem like a huge jump, but for certain fungi, it can actually happen very quickly. The inhabitants of the microbial world are far more genetically flexible than humans, able to evolve and adapt to their environment within a generation, constantly modifying and improving upon their genome to maximize their productivity,” says Samantha G.R. Jenkins, Lead Biotechnology Engineer.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
The Future of Pandemic Coverage for Real Estate Owners and Developers
November 09, 2020 —
Ashley McWilliams - Saxe Doernberger & VitaShutdowns resulting from the COVID-19 pandemic have prompted an unprecedented number of business income and business interruption insurance claims. Many claims have resulted in litigation and require judicial intervention to determine whether private insurance carriers owe policyholders indemnification for pandemic related losses. Private insurance carriers that have denied the claims, in large part, argue that they did not underwrite coverage for the pandemic and assert that pandemic coverage is much too unpredictable to underwrite. Private carriers contend that a government-backed insurance program is necessary to mitigate the economic impact resulting from pandemic claims.
The COVID-19 pandemic has significantly impacted real estate owners and developers. Real estate owners and developers have sustained business income losses in the form of lost rents at commercial properties, service disruption, labor and/ or material shortages, to name a few. Questions about whether the virus caused “direct physical damage,” as well as whether specific “virus exclusions” on policies, have provided hurdles to coverage under existing schemes, click here.Those that have filed lawsuits against their insurers seeking coverage under current policy terms are having mixed results, at best. Click here to view SDV’s Litigation Tracker. A predictable source of indemnification for future pandemic-related losses would greatly relieve business disruption and, ultimately, the impact on the economy. However, the question remains, who will pay for such massive losses?
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Ashley McWilliams, Saxe Doernberger & VitaMs. McWilliams may be contacted at
AMcWilliams@sdvlaw.com
Wisconsin Court Enforces Breach of Contract Exclusion in E&O Policy
July 21, 2018 —
TLSS Insurance Law BlogIn its recent decision in Crum & Forster Specialty Ins. Co. v. GHD Inc.,2018 U.S. Dist. LEXIS 111827 (E.D. Wisc. July 5, 2018), the United States District Court for the Eastern District of Wisconsin had occasion to consider the application of a breach of contract exclusion in a professional liability policy.
Crum’s insured, DVO, was sued in connection with its contract to construct a biogas converter mechanism. The underlying suit alleged a sole cause of action; namely, breach of contract based on DVO’s failure to have fulfilled its obligations to design the mechanism to specification.
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Traub Lieberman Straus & Shrewsberry LLP
When Customers Don’t Pay: What Can a Construction Business Do
June 06, 2022 —
Patrick Hogan – Handle.comLate payments are not unusual in construction. From general contractors to subs and material suppliers, every construction project participant has dealt with delayed payments as part of business. However, there’s the issue of clients who refuse to pay. Not late--just no payment. For businesses big and small, a client who refuses to pay can make a significant impact financially and operationally. Many construction transactions are made on trust, and when a client doesn’t pay, some contractors and suppliers may make poor decisions. Yet, to get out of a project going sideways--with payment in hand or lessons learned--you need to be smart and proceed with your business interest in mind.
Why is the customer not paying?
This is where it begins. You must first identify the reasons why a customer refuses to pay. Were they unsatisfied with the quality of work? Do they feel that what was delivered was not aligned with what’s contractually obligated? Do they feel like the work was rushed or the materials used inferior? Was the job finished later than agreed? All these are possibilities that need to be investigated.
If the customer has not volunteered any of this information, it’s best to personally visit the project or set a meeting with the customer to discuss issues in person. If the problems the customer has raised are valid, plan how to resolve them right away. Suppose, after the discussion, you’ve determined that the customer demands things beyond what’s contractually obligated, and you cannot resolve them without incurring unreasonable time and costs. In that case, you might have a delinquent customer in your hands.
Let the customer know your decision. If you’ve decided to proceed and fix the issues they’ve raised, send the invoice for the unpaid work immediately upon commencing the remedial work. Of course, there is no guarantee that addressing their concerns will result in swift payment, so exercise your best judgment. If you think you’ve exhausted all the cordial means to get them to pay as the contract requires, you might need to consider your legal options.
A legal option to recover payments: Filing a mechanics lien
State laws protect construction providers like contractors and material suppliers from non-payment through lien laws. Mechanics liens work by placing a hold on the property where the work or materials were provided as a security in case of non-payment. Mechanics liens can result in a sale of the property where the lien is attached, and the proceeds will be used to pay unpaid vendors.
When a client fails to pay after a good-faith pursuit to resolve the payment issue, filing a mechanics lien becomes the smartest next move. However, note that to file a mechanics lien, you must have fulfilled the requirements of lien laws specific to the state where the project is located. For many states, the main requirement is sending a preliminary or pre-lien notice to secure your right to file liens. It’s only good business practice to
file preliminary notices for every project you work on. It’s not an indication of distrust in the client’s ability to pay–and that is mentioned in the wording of many statutory statements included in preliminary notices. It’s just industry standard to file prelim notices.
Filing a mechanics lien includes a period where the client still has the opportunity to pay arrears before the lien is enforced. Suppose the client fails to pay in this period. You are now allowed to enforce the mechanics lien through a lawsuit. This is a complex process, but it presents itself as the last resort to recover payments. As long as all your documents are in check, you’ve filed the necessary notices in the time and manner required by law, and you’ve fulfilled your contractual obligations to the client, a ruling in your favor is the likely outcome.
Promoting timely payments
It’s in your best interest to promote timely payments from your customers. While construction contracts are primarily reliant on trust, there are many things you can do to encourage and facilitate timely payments from your clients. Here are some ideas:
- Use detailed contracts and progress billing
- Vet clients through background research, credit history, references, and public financial records
- Send regular on-time invoices
- Ensure your invoices are aligned with the formats used by your client’s payables department
- Provide multiple payment methods
- File the necessary preliminary notices throughout the project
In the case of construction payments, the adage prevention is better than cure applies. There are many reasons why payments get delayed or skipped, some malicious, some not. It’s in your best interest to ensure that you are doing everything from your end to promote timely payments and that you’re fully protected by rights granted to construction businesses by law.
About the Author:
Patrick Hogan is the CEO of
Handle.com, where they build software that helps contractors and material suppliers with lien management and payment compliance. The biggest names in construction use Handle on a daily basis to save time and money while improving efficiency.
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Kahana Feld Receives 2024 OCCDL Top Legal Organizations for DEI Award
September 30, 2024 —
Linda Carter - Kahana FeldIRVINE, CA – Sep. 12, 2024 – Kahana Feld is pleased to announce that the firm received the 2024 Top Legal Organizations for DEI Award from the Orange County Coalition for Diversity in the Law (OCCDL). The firm will be recognized at an awards gala at The Westin South Coast Plaza on October 3.
Each year, the OCCDL recognizes individuals and organizations who have advanced diversity, equity, and inclusion in the Orange County legal community, whether through their excellence in the law or their direct efforts to promote DEI. Kahana Feld was recognized for programs such as its DEI book club and its regular webinars on topics like implicit bias. The firm supports various DEI organizations and initiatives in the Orange County area, including the Orange County Asian American Bar Association, the Orange County Women Lawyers Association, and the Jewish Federation of Orange County.
The OCCDL is a collaborative effort of professionals from leading Orange County law firms and other community partners promoting the advancement of diverse attorneys in Orange County. The OCCDL partners with local schools and organizations to increase community involvement and provides education focused on diversity to students and attorneys.
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Linda Carter, Kahana FeldMs. Carter may be contacted at
lcarter@kahanafeld.com
Fannie-Freddie Elimination Model in Apartments: Mortgages
April 08, 2014 —
Sarah Mulholland – BloombergThe apartment-lending units of Fannie Mae (FNMA) and Freddie Mac were among their few money makers after the U.S. housing collapse. Now they should help transform the U.S. mortgage industry.
Lawmakers seeking to eliminate the two government lenders, which were seized by regulators during the 2008 credit crisis, see an antidote to the reckless lending that blew up the U.S. housing market in the structure of the firms’ multifamily operations, which share risks with lenders.
Senate Banking Committee Chairman Tim Johnson and Republican Mike Crapo are proposing legislation to create a new government-backed reinsurer of mortgage bonds that would require private investors to bear losses on the first 10 percent of capital. The model for the provision mirrors Fannie Mae and Freddie Mac (FMCC)’s multifamily lending operations, requiring lenders to shoulder some of the risk on loans they originate.
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Sarah Mulholland, BloombergMs. Mulholland may be contacted at
smulholland3@bloomberg.net
Project Labor Agreements Will Now Be Required for Large-Scale Federal Construction Projects
February 14, 2022 —
Lori Ann Lange, Aaron C. Schlesinger & Lauren Rayner Davis - Peckar & Abramson, P.C.On February 4, 2022, President Biden issued an Executive Order on Use of Project Labor Agreements for Federal Construction Projects (EO), which will require the use of project labor agreements (PLAs) on large-scale federal construction projects with a total estimated cost of $35 million or more unless a senior official within the agency grants an exception. Agencies also may require the use of PLAs on projects that are less than $35 million.
While the EO is effective immediately, it will only apply to solicitations issued on or after the effective date of final regulations issued by the FAR Council. The FAR Council has 120 days to propose regulations implementing the EO. Often there is a significant period of time between the publication of proposed regulations, evaluation of public comments, and publication of final regulations.
Reprinted courtesy of
Lori Ann Lange, Peckar & Abramson, P.C.,
Aaron C. Schlesinger, Peckar & Abramson, P.C. and
Lauren Rayner Davis, Peckar & Abramson, P.C.
Ms. Lange may be contacted at llange@pecklaw.com
Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com
Ms. Davis may be contacted at ldavis@pecklaw.com
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