Administrative and Environmental Law Cases Decided During the U.S. Supreme Court’s 2017-2018 Term
July 28, 2018 —
Anthony B. Cavender & Amy L. Pierce - Gravel2GavelUnlike other Terms, only a handful of cases addressed administrative and environmental law issues in the U.S. Supreme Court’s 2017-2018 Term. However, the next Term of the Court promises to be more active in these areas.
- On January 22, 2018, the Court issued a unanimous opinion in the Clean Water Act (CWA) case, Nat’l Assoc. of Mfrs. v. Dep’t of Defense, holding that the plain language of the CWA requires the appeal of the Environmental Protection Agency’s (EPA) redefinition of “waters of the United States” (WOTUS Rule) must be heard first in the federal district courts. Whereas all appeals of most EPA CWA effluent limitation rules must be heard in the federal Courts of Appeals, Congress chose not to do this with respect to this definitional rule.
The Court points out that reviews in the Courts of Appeals must take place within 120 days of the rule’s promulgation, but any review of a rule in the federal district court must take place within 6 years of the date the claim accrues.
Reprinted courtesy of
Anthony B. Cavender, Pillsbury Winthrop Shaw Pittman and
Amy L. Pierce, Pillsbury Winthrop Shaw Pittman
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com
Ms. Pierce may be contacted at amy.pierce@pillsburylaw.com
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Documenting Contract Changes in Construction
December 07, 2020 —
J.D. Holzheauser - Construction ExecutiveConstruction projects are almost inevitably subject to changes in the contract. A fundamental understanding of construction changes, how those changes are governed and what is necessary to ensure a complete change are of paramount importance to all parties involved in a construction project. This article is not a treatise on construction contract changes; rather, it provides advice on actions a contractor can take during construction that will help the contractor recover time or money when a contract’s schedule or scope of work needs to be changed.
Changes Defined
Changes to a construction project affect two broad spheres—timing and scope of work. Changes usually present themselves as either a change order or a change directive. Each may go by a different name depending on the contractual scheme in the project’s prime contract, but they essentially have the same characteristics.
The difference between a change order and a change directive is one of agreement. A change order (in the owner-prime contractor context) occurs when the contractor and the owner agree to a change in the timing or scope of work in the contract. Normally, the change order is a written agreement to change the contract and is executed by the contractor and owner.
Reprinted courtesy of
J.D. Holzheauser, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Holzheauser may be contacted at jdholzheauser@pecklaw.com
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Statute of Limitations Upheld in Construction Defect Case
September 30, 2011 —
CDJ STAFFThe Missouri Court of Appeals has ruled in Ball v. Friese Construction Co., finding that Mr. Ball’s claims were barred by the statute of limitations.
Mr. Ball hired Friese Construction Company to build a single-family home. The sale was completed on March 29, 2001. That December, Mr. Ball complained of cracks in the basement floor. SCI Engineering, n engineering firm, hired by Friese, determined that the home’s footing had settled and recommended that Mr. Ball hire a structural engineer to determine if the footings were properly designed and sized. In September 2002, the structural engineer, Strain Engineering, determined that the cracks were due to slab movement, caused in part by water beneath the slab, recommending measures to move water away from the foundation. In 2005, Mr. Ball sent Friese correspondence “detailing issues he was having with the home, including problems with the basement slab, chimney structure, drywall tape, and doors.” All of these were attributed to the foundation problems. In 2006, Friese stated that the slab movement was due to Ball’s failure to maintain the storm water drains.
In 2009, Ball received a report from GeoTest “stating the house was resting on highly plastic clay soils.” He sued Friese in May, 2010. Friese was granted a summary judgment dismissing the suit, as the Missouri has a five-year statute of limitations. Ball appealed on the grounds that the extent of the damage could not be determined until after the third expert report. The appeals court rejected this claim, noting that a reasonable person would have concluded that after the conclusion of SCI and Strain Engineering that “injury and substantial damages may have occurred.”
The court concluded that as there were not “continuing wrongs causing new and distinct damages,” he should have filed his lawsuit after the first two expert reports, not waiting seven years for a third expert to opine.
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Alleged Serious Defects at Hanford Nuclear Waste Treatment Plant
August 26, 2015 —
Beverley BevenFlorez-CDJ STAFFAccording to the Los Angeles Times, “A team of nuclear waste experts has found hundreds of serious defects at an Energy Department plant designed to turn millions of gallons of highly radioactive sludge into more stable solid glass at the former weapons facility in Hanford, Wash.” The report from 2014 was leaked, and stated that the “partially built facility is riddled with 362 ‘significant design vulnerabilities’ that could affect safety and future operations.” Thirty-seven experts led by two senior managers created the report.
The Los Angeles Times reported that the report findings “are significant because the plant is part of the Energy Department’s 2013 initiative to fix earlier problems that stalled construction of other parts of the treatment system at Hanford, the site of the nation’s worst radioactive contamination.”
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NAHB Reports on U.S. Jobs Created from Home Building
May 05, 2014 —
Beverley BevenFlorez-CDJ STAFFThe National Association of Home Builders’ Eye on Housing reported that for every “average single-family home” built in the U.S., almost three full-time jobs are created.
“A substantial share of this is employment for construction workers,” according to the NAHB article. “But also included is employment in firms that manufacture building products, transport and sell products, and provide professional services to home builders and buyers (e.g., architects and real estate agents).”
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Claimants’ Demand for Superfluous Wording In Release Does Not Excuse Insurer’s Failure to Accept Policy Limit Offer Within Time Specified
September 15, 2016 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Barickman v. Mercury Casualty Co. (No. B260833, filed 7/25/16, ord. pub. 8/15/16) a California appeals court affirmed a $3 million bad faith award against Mercury Casualty Co. based upon its failure to accept a policy limit demand within the time provided, finding that wording inserted by the claimants’ counsel into the release did not affect the insured’s rights such that the refusal to agree to the wording was unreasonable and in bad faith, exposing the insurer to liability for the insured’s stipulated judgment.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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New York Appellate Division: Second Department Contradicts First Department, Denying Insurer's Recoupment of Defense Costs for Uncovered Claims
March 01, 2021 —
Jasjeet K. Sahani - Saxe Doernberger & Vita, P.C.New York law has historically allowed insurers to recoup defense costs paid on behalf of an insured if there is ultimately no coverage for the underlying action, provided that the insurer reserved its rights to seek reimbursement. On December 30, 2020, the New York Appellate Division, Second Department declined to follow this longstanding principle in American Western Home Insurance Co. v. Gjonaj Realty & Mgt. Co.,1 by holding that the insurer was not entitled to recoup defense costs, even where it was determined that the claim was not covered under the insurance policy.
In American W. Home Ins. Co., the insureds were named as defendants in an underlying personal injury action. More than four years after the accident, and a $900,000 default judgment against the insureds, they tendered the lawsuit to their commercial general liability insurer, American Western Home Insurance Company (“American”). American denied coverage based on untimely notice, but after the default judgment was subsequently vacated, it agreed to defend the underlying action subject to a reservation of rights. The reservation of rights specifically reserved American’s right to deny coverage if the vacatur of the default judgment against the insureds was reversed. Further, American reserved its right to recover the costs of defending the underlying litigation.
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Jasjeet K. Sahani, Saxe Doernberger & Vita, P.C.Mr. Sahani may be contacted at
JSahani@sdvlaw.com
Mortgage Battle Flares as U.K. Homebuying Loses Allure
January 28, 2015 —
Neil Callanan and Richard Partington – BloombergU.K. banks, which spent six years repairing their balance sheets after the 2008 property crash, want to advance more credit to homebuyers. Borrowers aren’t as enthusiastic.
Cheap funding costs and low default rates have made homebuyers attractive to lenders in recent years, boosting returns for companies such as Nationwide Building Society and Lloyds Banking Group Plc. (LLOY) Now, with demand for property cooling, they’re having to fight harder for business. Interest rates on the most popular mortgages fell to record lows in December, according to the Bank of England.
Mr. Callanan may be contacted at ncallanan@bloomberg.net; Mr. Partington may be contacted at rpartington@bloomberg.net
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Neil Callanan and Richard Partington, Bloomberg