The Anatomy of a Construction Dispute- The Claim
January 12, 2015 —
Christopher G. Hill – Construction Law MusingsA new year brings with it promise and challenges. The promise is a relatively clean slate and the thought that 2015 will be a great year for construction professionals and those that assist them. The challenges come from the almost inevitable issues that can arise on a construction site with its many moving parts and enough potential pitfalls to make even the most optimistic construction attorney, contractor, subcontractor or supplier think that Murphy was an optimist.
In order to assist with the potential challenges, this post will be the first in a series of “musings” on the best way to handle a payment dispute arising from a construction contract. This week’s post will discuss what the first steps should be once a payment dispute or claim arises. We’ll assume that you, as a construction contractor, have taken early advantage of the services of a construction lawyer and have carefully reviewed your contract for issues before signing that contract.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Avoid a Derailed Settlement in Construction
March 28, 2022 —
Patrick Barthet - Construction ExecutiveMore and more construction cases are settling because lawyers know juries can prove to be unpredictable. The litigation process, as well as any actual trial, can be stressful, expensive and quite lengthy. Settlements are, for the most part, private while suits are public. Current reports find more than 90% of civil cases filed in state circuit courts are disposed of before trial. When that doesn't happen, things could go very poorly, as the case below illustrates.
The Case
Adam was seriously injured in a collision with a dump truck owned by Bang and driven by Tomas. While suit by Adam against Bang and Tomas was pending, Adam suggested they settle by having Bang pay him. Upon receipt of the offer, Bang's lawyer reached out confirming that his client was okay with the settlement amount but wished to add that the settlement also include the satisfaction of a lien filed by Adam's workers' compensation carrier. Adam's attorney refused that additional request, but that didn't stop Bang's lawyer. Based on the fact that Adam had agreed to the settlement amount, the lawyer filed a boiler plate notice of acceptance of settlement and had Bang issue a settlement check payable to Adam in the amount Adam had requested. Adam remained unwilling to compromise. He continued to resist the modified terms, which added satisfaction of the worker’s compensation lien. Bang then filed a motion to enforce settlement, arguing that since there was agreement on the settlement amount, Adam was required to do the deal.
Reprinted courtesy of
Patrick Barthet, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Barthet may be contacted at
pbarthet@barthet.com
Forget the Apple Watch. Apple’s Next Biggest Thing Isn’t for Sale
May 20, 2015 —
Garret Murai – California Construction Law BlogApple released its much anticipated Apple Watch this past month.
The Apple Watch is significant for Apple, not only because its profit and loss statement has a lot riding on it, but because it’s the company’s first foray into consumer “wearables.”
This isn’t the first time the Cupertino company has ventured into new areas, through. Since its first consumer product, the Apple I, was released in 1976, Apple has gone from personal computers – and its iterations, including, desktops, laptops and tablets – to music players, cell phones and now watches.
Today, Apple is less a computer company than a consumer electronics company, and even that doesn’t quite seem to go far enough, as it has become a lifestyle brand for many. Comparisons can be drawn to Sony during the mid-1980s when everyone aspired to a home filled with Sony televisions, Sony receivers and Sony Walkmans.
Part of Apple’s success is that it sells a lifestyle that transcends its products, in which a glossy, sophisticated minimalism and simplicity, are among its most recognizable characteristics. It goes beyond their products, and is embodied in their advertising, their online and retail stores, and their packaging. And while the Apple Watch may be Apple’s latest “big” thing, I think something even bigger is underfoot at Apple, and it’s something you can’t buy.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
SIGAR Report Finds +$15 Billion in “Waste, Fraud and Abuse” in Afghanistan
August 20, 2018 —
Pillsbury's Construction & Real Estate Law Team - Gravel2GavelToday, our colleagues Alex Ginsberg, Glenn Sweatt and Kevin Massoudi published their Client Alert on a recently issued Special Inspector General for Afghanistan Reconstruction (SIGAR) Report that finds over $15 billion in waste, fraud and abuse. In New SIGAR Report Identifies “Waste, Fraud and Abuse” in Afghanistan, our colleagues identify key takeaways from the Report include:
- The Report reviewed public spending for Afghanistan reconstruction efforts and identified at least $15.5 billion in waste, fraud and abuse.
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Pillsbury's Construction & Real Estate Law Team
Your Work Exclusion Applies to Damage to Tradesman's Property, Not Damage to Other Property
March 30, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe New Mexico Court of Appeals presented a cogent analysis of claims for construction defects and the application of the "your work" exclusion under a CGL policy in Pulte Homes of New Mexico, Inc. v. Indiana Lumbermens Ins. Co., 2015 N.M. App. LEXIS 134 (N. M. Ct. App. Dec. 17, 2015).
Pulte built 107 homes. Pulte contracted with 'Western Building Supply (WBS) to provide windows and sliding glass doors for the homes. Pulte was named as an additional insured under WBS's policy with Lumbermens (ILM).
In 2007, a large group of homeowners sued Pulte, alleging numerous construction defects in their homes. Among the defects were windows that leaked and sliding glass doors that stuck and did not close completely. Many of the homeowners arbitrated their claims against Pulte. In May 2009, Pulte tendered its first demand for a defense to ILM. The arbitration award against Pulte found that windows and doors did not operate properly and had been replaced by Pulte.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
General Contractor Supporting a Subcontractor’s Change Order Only for Owner to Reject the Change
December 09, 2019 —
David Adelstein - Florida Construction Legal UpdatesThe opinion in Westchester Fire Ins. Co, LLC v. Kesoki Painting, LLC, 260 So.3d 546 (Fla. 3d DCA 2018) leads to a worthy discussion because it involves a common scope of work occurrence on construction projects involving a general contractor and subcontractor. The contractor submits a subcontractor’s change order request to the owner and the owner rejects the change order. What happens next is a scope of work payment dispute between the general contractor and subcontractor. Yep, a common occurrence.
In this case, a general contractor hired a subcontractor to perform waterproofing and painting. A scope of work issue arose because the specifications did not address how the window gaskets should be cut and then sealed. The owner wanted the window gaskets cut at a 45-degree angle and the subcontractor claimed this resulted in increased extra work. The general contractor agreed and submitted a change order to the owner to cover these costs. The owner rejected the change order claiming it was part of the general contractor’s scope of work even though the cutting of window gaskets at a 45-degree angle was not detailed in the specifications.
After the subcontractor filed a suit against the general contractor’s payment bond surety, the project architect further rejected the change order because gasket cutting was part of the specification requirements. (Duh! What else was the architect going to say? It was not going to concede there was an omission that resulted in a change order to the owner, right?)
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
COVID-19 Response: Recent Executive Orders Present Opportunities for Businesses Seeking Regulatory and Enforcement Relief and Expedited Project Development
June 15, 2020 —
Karen C. Bennett, Jane C. Luxton & Amanda L. Tharpe - Lewis BrisboisWashington, D.C. (June 8, 2020) - Two recent Executive Orders (EO) aimed at promoting economic recovery from the COVID-19 crisis offer regulatory and enforcement relief and encourage agencies to expedite infrastructure project approvals. The May 19, 2020 EO 13924, “Regulatory Relief to Support Economic Recovery,” directs agencies to determine whether previous regulatory reforms would promote economic recovery if made permanent and encourages compliance assistance through exercising enforcement discretion, including declining enforcement. And the June 4, 2020 EO 13927, “Accelerating the Nation’s Economic Recovery from the COVID-19 Emergency by Expediting Infrastructure Investments and Other Activities,” aims to speed up the permitting process for infrastructure projects to strengthen the national economy. As businesses look to move forward and recover from the COVID-19 pandemic, they should closely review these EOs for opportunities to take advantage of streamlined treatment and faster project approvals.
EO 13294 supplements the Administration’s efforts to address the economic crisis brought on by the COVID-19 pandemic by encouraging federal agencies to rescind, modify, waive, or provide exemptions from federal regulations that may inhibit economic recovery and to provide guidance to businesses, particularly small businesses, on what is required of them under federal law for reopening. Specifically, the EO directs agency heads to identify regulatory standards that may inhibit economic recovery and consider rescinding or waiving those regulations, exempting regulated entities from compliance, exercising enforcement discretion, or extending regulatory compliance and enforcement deadlines. It also allows for compliance assistance through accelerated regulatory procedures to receive a pre-enforcement ruling and directs agencies to assess previous regulatory reforms to determine whether making them permanent would promote economic recovery. Since taking office, the Trump Administration has made regulatory reform a cornerstone of its agenda. This Executive Order is a continuation of the aggressive steps taken by the Administration to reduce the regulatory burden faced by American businesses that many argue increases operating costs, inhibits job creation, and stifles economic growth.
Reprinted courtesy of Lewis Brisbois attorneys
Karen C. Bennett,
Jane C. Luxton and
Amanda L. Tharpe
Ms. Bennett may be contacted at Karen.Bennett@lewisbrisbois.com
Ms. Luxton may be contacted at Jane.Luxton@lewisbrisbois.com
Ms. Tharpe may be contacted at Amanda.Tharpe@lewisbrisbois.com
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Condo Owners Allege Construction Defects at Trump Towers
April 28, 2016 —
Beverley BevenFlorez-CDJ STAFFThe Daily Business Review reported that three lawsuits have been filed against the developers of Trump Towers in Sunny Isles Beach, Florida alleging cracked pool decks, sloping roofs, water intrusion, among other construction defects.
While Gary Mars, the attorney for the associations, did not have an estimate of repair costs, an engineer hired by the unit owners listed over 300 defects in two of the towers, according to the Daily Business Review.
Attorney Peri Rose Huston-Miller of Derrevere Hawkes Black & Cozad, counsel for Steven Feller (a defendant), stated their client is "aware of the complaints that have been filed and is confident the parties will work together toward a resolution of the issues alleged.”
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