CFTC Establishes Climate-Risk Unit, Echoing Other Biden Administration Agency Themes
April 12, 2021 —
Karen C. Bennett & Jane C. Luxton - Lewis BrisboisOn March 17, the Commodity Futures Trading Commission (CFTC or Commission) joined other federal agencies led by Biden Administration appointees in ramping up consideration of climate-related risks in matters under the Commission’s jurisdiction. Stressing the need for a climate-resilient financial system, the CFTC’s new Climate-Risk Unit (CRU) will focus on “the role of derivatives in understanding, pricing, and addressing climate-related risk and transitioning to a low-carbon economy.”
Formation of the CRU will accelerate the CFTC’s “engagement in support of industry-led and market-driven processes in the climate – and the larger ESG – space critical to ensuring that new products and markets fairly facilitate hedging, price discovery, market transparency, and capital allocation.” As with similar programs launched by the Securities and Exchange Commission (see our previous alert from March 19), businesses affected by the CFTC’s new initiative should consider active engagement to ensure informed and appropriate approaches are included in any new regulations, policies, or frameworks governing climate-related issues.
Reprinted courtesy of
Karen C. Bennett, Lewis Brisbois and
Jane C. Luxton, Lewis Brisbois
Ms. Bennett may be contacted at Karen.Bennett@lewisbrisbois.com
Ms. Luxton may be contacted at Jane.Luxton@lewisbrisbois.com
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The Problem with One Year Warranties
June 10, 2015 —
Craig Martin – Construction Contractor AdvisorContractors often ask if they should include a one year warranty in their subcontracts. I tell them that they can, but it may be more effective to include a one-year correction period. If a contractor does include a warranty in the contract, it may actually extend the time in which a contractor may be sued. I recommend instead a Correction Period.
Typical Construction Warranties
Form construction contracts, like the AIA forms, often times contain warranty language. The AIA A201, General Conditions, contains a warranty section that covers materials, but it does not address how long the work is warranted:
“3.5 WARRANTY
The Contractor warrants to the Owner and Architect that materials and equipment furnished under the Contract will be of good quality and new unless the Contract Documents require or permit otherwise. The Contractor further warrants that the Work will conform to the requirements of the Contract Documents and will be free from defects, except for those inherent in the quality of the Work the Contract Documents require or permit.”
Instead, the AIA A201, section 13.7, limits the time by which claims must be brought to 10 years or the applicable statute of limitations.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Scientists found a way to make Cement Greener
October 01, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Futurity, scientists say by “paying attention to concrete’s atomic structure…they could make it better and more environmentally friendly.” Cement currently is “the third-largest source of carbon dioxide released to the atmosphere.”
Materials scientist Rouzbeh Shahsavari stated that “[t]he heart of concrete is C-S-H—that’s calcium, silicate, and hydrate (water). There are impurities, but C-S-H is the key binder that holds everything together, so that’s what we focused on.” The team spent a year in research and “looked at defects in about 150 mixtures of C-S-H to see how the molecules lined up and how their regimentation or randomness affected the product’s strength and ductility.”
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ASCE Statement on House Passage of the Water Resources Development Act of 2024
August 05, 2024 —
Marsia Geldert-Murphey, P.E., President of the American Society of Civil EngineersWASHINGTON — The American Society of Civil Engineers (ASCE) commends the House of Representatives for passing H.R. 8812, the bipartisan Water Resources Development Act (WRDA) for 2024. The House WRDA 2024 bill will help improve America's ports and inland waterways, enhance flood risk management and storm risk reduction programs, and prioritize ecosystem restoration. While we urge the Senate to swiftly vote on its version of WRDA, we are encouraged that our nation's critical water resources infrastructure remains a congressional priority.
The House version of WRDA includes several key provisions to enhance the safety of America's dams and levees, which each received a 'D' on the 2021 Report Card for America's Infrastructure, as well as provisions to modernize the nation's inland waterways system, which received a 'D+' in the 2021 Report Card. This includes one of ASCE's top legislative priorities for this year, the reauthorization of the National Dam Safety Program through 2028. But beyond the reauthorization, this bill reduces restrictions on the amount of funds states can receive in National Dam Safety Program State Assistance Grants; improves access to the High Hazard Potential Dam Rehabilitation Grant Program; and requires the incorporation of low-head dams into the National Inventory of Dams. Each of these provisions are critical to ensuring the long-term safety of our nation's dams and ASCE applauds the House for their inclusion. Furthermore, ASCE was pleased to see that the House legislation extends the National Levee Safety Program through 2033, which will help support the establishment of state levee safety programs, develop and publish national guidelines for levee safety, and enhance flood protection nationwide.
While these measures are not included in the Senate version of WRDA, we encourage lawmakers to ensure they are included in a final conference version of the bill.
We thank the House of Representatives for moving forward WRDA 2024 and strongly encourage the Senate to pass its version so that Congress can keep this vital water resources legislation on a biennial schedule and ensure our nation's dams, levees, ports, and inland waterways can support the American economy and protect public safety.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 160,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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Keeping Detailed Records: The Best Defense to Constructive Eviction
October 24, 2023 —
Ben T. Welch & Ken Brown - Snell & WilmerInevitably, commercial property owners and managers will be faced with a claim by a tenant of constructive eviction. This article is intended to describe what constructive eviction is and to suggest what owners and managers can do to prepare for, and ward off, such claims.
Constructive eviction occurs where a tenant’s “right of possession and enjoyment” of the leasehold is disrupted by the landlord in a manner that renders the premises “unsuitable for the purposes intended.”i Put another way, it is interference that is so “substantial nature and so injurious as to deprive the tenant of the beneficial enjoyment of a part or the whole of the demised premises.”ii Although easy to describe in theory, constructive eviction can be devilishly difficult to determine in the real world. In litigation, determining when interference crosses over the line to constructive eviction is intensely fact-sensitive and resists sweeping generalizations.iii
For instance, Utah courts have held that tenants have been constructively evicted when they have been subjected to continual harassment or insults by the landlord or the landlord’s agent,iv prevented or impaired in their access to the leased premises during operating hours,v or when a landlord fails to provide an operable elevator (or other essential commercial amenities) necessary for a tenant’s business operations.vi By contrast, claims of “discomfort” or “inconvenience” have been rejected as a basis for constructive eviction.vii The same goes for claims that a landlord wrongfully served a three-day notice to pay or quit.viii
Generally, constructive eviction is an affirmative defense made in response to a landlord’s lawsuit for nonpayment of rent.ix It is not, as is commonly supposed, a basis for a tenant’s premature abandonment of the premises. In other words, the defense is raised after the tenant has vacated as a result of being effectively “evicted.”x Further, the defense requires the tenant to actually abandon the premises and do so within a “reasonable time” after the alleged interference.xi A tenant cannot stay in possession and simply refuse to pay rent on the basis of constructive eviction.xii
The key consideration in preparing for, and responding to, a claim of constructive eviction is keeping good records. A tenant claiming constructive evicting likely must prove that the issue was raised in a timely manner and, despite multiple entreaties, was never resolved.xiii As such, it is critical that landlords acknowledge tenant complaints as well as document in writing their efforts to ameliorate those complaints. While a landlord does not carry the burden of proof for constructive eviction, detailed documentation can thwart a tenant’s claim that a landlord has been inattentive or unwilling to address the tenant’s concerns.
Detailed records are also useful in disputes where a tenant claims substantial interference. “The whole point of constructive eviction is that the landlord basically drove the tenant out through the landlord’s action or inaction.”xiv As such, a landlord that is unable to document the steps taken in response to complaints will be grossly disadvantaged whereas the tenant, which had control and knowledge of the premises, will have a much easier time describing how the alleged interference deprived them of enjoying the premises.
Even with meticulous records, however, owners and managers may still face claims of construction eviction. In such instances, counsel should be retained to properly advise on compiling, preserving, and employing the evidence necessary to refute the tenant’s claims.
i Gray v. Oxford Worldwide Grp., Inc., 139 P.3d 267, 269 (Utah Ct. App. 2006).
ii Gray, 139 P.3d at 270 (citing Neslen, 254 P.2d at 850) (internal formatting omitted).
iii See Gray, 139 P.3d at 269–70 (citing Thirteenth & Washington Sts. Corp. v. Neslen, 254 P.2d 847, 850 (Utah 1953)); Brugger v. Fonoti, 645 P.2d 647, 648 (Utah 1982).
iv See Gray, 139 P.3d at 270–71.
v Thirteenth & Washington Sts. Corp. v. Neslen, 254 P.2d 847 (Utah 1953).
vi See Richard Barton Enterprises, Inc. v. Tsern, 928 P.2d 368, 375, 378 (Utah 1996) (citing Union City Union Suit Co. v. Miller, 162 A.D.2d 101, 556 N.Y.S.2d 864 (1990)).
vii See Myrah v. Campbell, 163 P.3d 679, 682–84 (Utah Ct. App. 2007).
viii Barton v. MTB Enterprises, 889 P.2d 476, 477 (Utah Ct. App. 1995); see also Brugger, 645 P.2d at 648 (stating that the tenant’s complaints revolved around standard problems commonly associated with building maintenance and did not rise to the level of substantial interference); viv Reid v. Mutual of Omaha Ins. Co., 776 P.2d 896, 898–900 (Utah 1989) (upholding trial court’s findings of fact concerning insufficiency of disruption so as to justify claim for constructive eviction).
ix See Kenyon v. Regan, 826 P.2d 140, 142 (Utah Ct. App. 1992).
x See Kenyon, 826 P.2d at 142.
xi See Kenyon, 826 P.2d at 142; see also Barton v. MTB Enterprises, Inc., 889 P.2d 476, 477 (Utah Ct. App. 1995); Brugger, 645 P.2d at 648.
xii See Kenyon, 826 P.2d at 142 (citing Fernandez v. Purdue, 518 P.2d 684, 686 (Utah 1974)).
xiii See Brugger, 645 P.2d at 648 (noting that while the tenant had raised legitimate issues concerning state of the premises, the landorld had taken steps to remedy the problems within a reasonable time) (citing 49 Am.Jur.2d, Landlord and Tenant, § 617).
xiv Barton, 889 P.2d at 477.
Reprinted courtesy of
Ben T. Welch, Snell & Wilmer and
Ken Brown, Snell & Wilmer
Mr. Welch may be contacted at bwelch@swlaw.com
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What’s in a Name? Trademarks and Construction
April 25, 2022 —
Carol Wilhelm and J.P. Vogel - Construction ExecutiveEvery company, no matter the industry, relies on its name and reputation to develop customers and generate revenue. Think about the brands that dominate American culture such as Nike, Wal-Mart, Amazon or McDonald’s, then imagine those businesses without the ability to adequately protect their names, slogans and logos. No doubt the vultures would circle and brand power would most likely become short lived or otherwise diluted to the point of non-existence. The construction industry is not exempt, and the industry leaders benefit from identifiable names and logos, built over years of reputation and brand building. While the tools necessary to protect your company’s brand exist at the state and federal level, many business owners or leaders are unfamiliar with the trademark process and unaware of the consequences of not utilizing those tools.
Trademark Registration
Trademarks are “concise and unequivocal identifiers” that provide potential customers with essential information about your business. With a single word, tagline, logo, color—essentially anything that can carry meaning—potential customers learn to associate particular product or service characteristics and expected quality level with a particular source. That is, your mark is the way that consumers connect your expertise and reputation to your business and nobody else’s. It serves a critical role in reducing consumer search costs and capturing your hard-earned business opportunities.
Reprinted courtesy of
Carol Wilhelm and J.P. Vogel, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Vogel may be contacted at jpvogel@grayreed.com
Ms. Wilhelm may be contacted at cwilhelm@grayreed.com
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Crane Dangles and So Do Insurance Questions
November 07, 2012 —
CDJ STAFFHurricane Sandy sent a construction crane dangling from the top of One57, a condo construction project in New York City. In response to the risk, the nearby Parker Meridian and other nearby buildings were evacuated until the crane could be stabilized. Businessweek reports that One57 involves “a tangle of companies,” including the developer, Extell Development and the contractor, Lend Lease Construction. Pinnacle Industries was responsible for providing and operating the crane.
The insurance claims are yet to be made, but they will likely include the costs of evacuating nearby buildings and to cover any damage to the building itself. David DeLaRue, a vice president in construction practice at Willis Group Holdings said there would be two questions: “Did our insured do anything to cause that loss? Does this policy cover it?”
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Brenda Radmacher to Speak at Construction Super Conference 2024
November 05, 2024 —
Brenda Radmacher - The Construction SeytBrenda Radmacher, partner in Seyfarth’s Construction group, will present and moderate panels at the 38thAnnual Construction Super Conference 2024 on December 9-11. The conference is recognized as the preeminent construction conference developed for mid to senior-level professionals working in legal and commercial construction markets.
Panel – Looking Around Corners: Emerging Trends and Proactive Solutions
Brenda will co-present a panel on innovative ways to engage experts in construction disputes, focusing on early expert involvement to aid in risk management, issue analysis, mitigation, and documentation for potential litigation.
Panel – Top 10 Issues to Address in Your ADR Process for a Better Solution in Construction Disputes
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Brenda Radmacher, SeyfarthMs. Radmacher may be contacted at
bradmacher@seyfarth.com
