Montana Federal Court Holds that an Interior Department’s Federal Advisory Committee Was Improperly Reestablished
December 09, 2019 —
Anthony B. Cavender - Gravel2GavelOn August 13, 2019, in a case that may have an impact on the leasing of federal lands for energy development in the future, the U.S. District Court for the Missoula, Montana Division, issued a ruling in the case of Western Organization of Resource Councils v. Bernhardt, which involves the application of the Federal Advisory Committee Act (FACA) to the Department of the Interior’s Royalty Policy Committee. This advisory committee, initially established in 1995 to provide advice to the Secretary on issues related to the leasing of federal and Indian lands for energy and mineral resources production, is subject to the provisions of FACA, codified at 5 U.S.C. app. Sections 1-16. The plaintiffs challenged the operations of this advisory committee, which was reestablished for two years beginning in 2017, because it allegedly “acts in secret and works to advance the goals of only one interest: the extractive industries that profit from the development of public gas, oil, and coal.” More specifically, the plaintiffs alleged that this advisory committee violated FACA because: (a) it was not properly established as provided in the implementing GSA rules (which are located at 41 CFR Section 102-3); (b) did not provide public notice of its meetings and publicly disseminate its materials; (c) ensure that its membership was fairly balanced; and (d) failed to exercise independent judgment without inappropriate influences from special interests.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Contractor Removed from Site for Lack of Insurance
October 28, 2011 —
CDJ STAFFThe MetroWest Daily News reports that a demolition firm was told to leave the construction site at Natick High School since their failure to have workers compensation insurance makes them unable to work on the project. The contractor, Atlantic Dismantling and Site Construction, Inc. may have been working illegally since September.
The equipment that Atlantic had rented for the job was repossessed in August. Brait Builders Corp, the general contractor for the site had rented equipment so Atlantic could continue their work.
Their lack of insurance was discovered when a worker had a minor job-related injury. The state had issued a stop-work order for the firm and they could not legally bid on public projects. The school system did not receive any notice of this, and the school’s facilities director said of the general contractor, “chances are Brait never heard of anything either.”
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SNC-Lavalin’s Former Head of Construction Pleads Guilty to Bribery, Money Laundering
October 01, 2014 —
Beverley BevenFlorez-CDJ STAFFRiadh Ben Aissa, a former SNC-Lavalin executive, “pleaded guilty to charges including bribery and money laundering in Switzerland, according to a court filing released on Wednesday,” reported the Wall Street Journal.
SNC-Lavalin “issued a separate statement acknowledging the court's acceptance of Mr. Ben Aissa's guilty pleas, adding it was recognized as ‘an injured party’ in the case and would recover an unspecified amount of money from him.”
Chief Executive Robert Card stated, “SNC-Lavalin's goal is nothing less than to set a new standard for clean business in the engineering and construction industry,” as quoted by the Wall Street Journal. “We've adopted a zero-tolerance policy for ethics violations of any kind. We have the right people in place and systems and procedures which are designed to protect the company and its stakeholders from future fraudulent actions."
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Illinois Court Assesses Factual Nature of Term “Reside” in Determining Duty to Defend
October 30, 2023 —
James M. Eastham - Traub LiebermanIn State Farm Fire & Cas. Co. v. Guevara, 2023 IL App (1st) 221425-U, P2, the Illinois First District Court of Appeals addressed an insurance carrier’s duty to defend under a homeowners insurance policy. The underlying suit stemmed from an alleged injury suffered at a residence located in Berwyn, Illinois and owned by named insured Luz Melina Guevara, a defendant in the suit. After Guevara tendered the suit, State Farm filed a complaint for declaratory judgment seeking a declaration that it had no duty to defend or indemnify Guevara because Guevara did not “reside” at the insured premises.
The policy defined the "insured location" as the "residence premises," and residence premises was defined as "the one, two, three or four-family dwelling, other structures, and grounds or that part of any other building; where you reside and which is shown in the Declarations." In response to the underlying lawsuit, Guevara had filed an answer and affirmative defenses in which Guevara denied the allegation that "At all relevant times, [Guevara] resided in Berwyn, Cook County, Illinois." Guevara admitted that she owned the Berwyn property but denied that she "resided in, maintained and controlled the property". The declaratory judgment complaint alleged (among other things) that, based on admissions by Guevara in her answer, the Berwyn residence was not an "insured location" under the State Farm policy. State Farm moved for summary judgment at the trial court level on this ground and summary judgment was granted in State Farm’s favor. An appeal ensued wherein the parties disagreed as to whether there is a genuine issue of material fact that, under the language of the policy, State Farm had no duty to defend because the Berwyn property was not an "insured location" because she did not "reside" there.
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James M. Eastham, Traub LiebermanMr. Eastham may be contacted at
jeastham@tlsslaw.com
You Say Tomato, I Say Tomahto. But When it Comes to the CalOSHA Appeals Board, They Can Say it Any Way They Please
January 08, 2024 —
Garret Murai - California Construction Law BlogWe lawyers do a fair amount of reading. Documents. Court decisions. Passive aggressive correspondence from opposing counsel. As well as statutes, regulations and administrative guidance. And you might be surprised how often words can be ascribed very different meanings depending on who is reading it. Such, I suppose, is the nature of language. When it comes to public agency interpretations of its own regulations, however, you would be well to heed that authors are often the best interpreters of their own works, or at least that’s how the courts tend to view it, as in the next case L & S Framing Inc. v. California Occupational Safety and Health Appeals Board, Case No. C096386 (July 24, 2023).
The L & S Framing Case
Martin Mariano, an employee of L & S Framing, Inc., suffered a brain injury when he fell from the “second floor” while working on a single family house. What, exactly, this “second floor” was, was a point of a contention in the legal case that followed.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Attorneys Fees Under California’s Prompt Payment Statutes. Contractor’s “Win” Fails the Sniff Test
October 02, 2015 —
Roger Hughes – California Construction Law BlogThis past month, the California Court of Appeals for the Third District, in James L. Harris Painting & Decorating, Inc. v. West Bay Builders, Inc., Case No. C072169 (August 27, 2015), handed down a decision in a construction contract battle that has raged since 2007. And, once again, the winner is . . . in the words of Justice Andrea Lynn Hoch who authored the opinion . . . . “no prevailing party in [the] case” and hence “no prevailing party attorney’s fees [ ] awarded.”
Background
In Harris, subcontractor James L. Harris Painting & Decorating, Inc. (“Harris”) sued general contractor West Bay Builders, Inc. (“West Bay”) for extra work performed on a school construction project in Stockton, California. Among its claims, Harris asserted that West Bay was liable under California’s prompt payment statutes for failure to timely pay Harris.
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Roger Hughes, Wendel Rosen Black & Dean LLPMr. Hughes may be contacted at
rhughes@wendel.com
Roadway Contractor Owed Duty of Care to Driver Injured Outside of Construction Zone
January 04, 2021 —
Garret Murai - California Construction Law BlogFor the roadway contractor it appeared to be an open and shut case:
Plaintiff car driver was stopped at a standard one-way “reversing lane closure” traffic control in which traffic going in one direction would be stopped while traffic going in the other direction was allowed to proceed, and then the procedure would be reversed.
Plaintiff, while stopped at the traffic control, was rear-ended by another vehicle driven by George Smithson. Smithson testified that he “must have looked off to the side” at some point prior to the collision because he did not see plaintiff’s vehicle before hitting it. He also testified that the primary reason the accident happened was that he was not paying attention and that he knew of no other cause of the accident.
For the roadway contractor you couldn’t ask for a better admission. And it ended in the trial court just the way you thought it would, with a win for the roadway contractor. That is, until it was appealed.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Statutory Bad Faith and an Insured’s 60 Day Notice to Cure
April 11, 2018 —
David Adelstein - Florida Construction Legal UpdatesA recent case came out in favor of an insured and against a first-party property insurer in the triggering of a statutory bad faith action. Florida’s Fifth District Court of Appeal in Demase v. State Farm Florida Insurance Company, 43 Fla. L. Weekly D679a (Fla. 5th DCA 2018)
held that if an insurer pays a claim after the 60-day notice to cure period provided by Florida Statute s. 624.155(3), this “constitutes a determination of an insurer’s liability for coverage and extent of damages under section 624.155(1)(b) even when there is no underlying action.”
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com