Construction Litigation Roundup: “Tender Is the Fight”
August 21, 2023 —
Daniel Lund III - LexologyA performance bond surety for a defaulted general contractor principal found itself with a recalcitrant owner which refused to accept the tender of a replacement general contractor to complete a $3,000,000 construction project in Monmouth County, New Jersey.
Even before the original GC was off the job, the surety – having been notified of the contractor’s difficulties in performing the work – stepped in promptly, providing assistance in the form of an additional contractor. At the surety’s behest, that additional contractor remained on the project (focused principally at the time on roof repairs) after the initial GC was placed in default and terminated.
Eventually, the surety, by draft tender agreement issued to the owner, offered that the additional contractor serve as the completion contractor for the entire project (not simply the roof repairs), a proposal rejected by the owner – which had never cared for the additional contractor. Instead, the owner proposed its own completion contractor and, in connection with that offer, demanded a sum of money ($1.6 million) from the surety – a proposal the surety rejected: “[Owner] cannot choose whatever contractor it wants to complete the work and then charge the costs to [the surety]."
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Mega-Consulate Ties U.S. to Convicted Billionaire in Nigeria
May 30, 2022 —
Neil Munshi & William Clowes - BloombergOn March 31, billionaire Gilbert Chagoury stood atop the plot of land he’d dredged from the sea around Lagos, beaming in the sweltering heat alongside U.S. Consul-General to Nigeria Claire Pierangelo, as they broke ground for America’s largest consulate in the world.
As a cool spring rain fell on Washington that day, Republican Congressman Jeff Fortenberry, of Nebraska, resigned from the House of Representatives after a conviction announced a week earlier. His crime: lying to the Federal Bureau of Investigation about illegal campaign contributions he’d received from Chagoury.
The pageantry in Lagos obscured the uncomfortable fact that by placing its $537 million consulate on Chagoury’s Eko Atlantic development, the U.S. government was becoming the anchor tenant for a project run by a man who was once convicted of laundering money for a Nigerian dictator and who’s admitted to making illegal campaign contributions in the U.S. Ethics groups and Nigeria experts aren’t pleased with the choice.
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Neil Munshi, Bloomberg and
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Tacoma Construction Site Uncovers Gravestones
August 11, 2011 —
CDJ STAFFThe Seattle Times reports that a transit construction project has uncovered about twenty-five gravestones. The area was historically sensitive, as it is in territory once occupied by the Puyallup Tribe. At current report, no human remains have been found and the article cites the project?s archeological consultant as describing the gravestones as “not historically significant.”
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Hennigh Law Corporation Wins Award Against Viracon, Inc In Defective Gray PIB Case
July 11, 2022 —
Scott Hennigh - Hennigh Law CorporationLOS ANGELES, July 08, 2022 (GLOBE NEWSWIRE) -- Hennigh Law Corporation has announced that, after an over four-year battle in and out of court, a three arbitrator panel issued a 93-page interim award in finding Viracon, Inc., liable for $13,682,840 in direct damages for defrauding the owner of the premier office building in Burbank, California, The Pointe. The matter now enters the second phase, where the arbitration panel will rule on the amount of punitive damages to assess, as well as attorney fees and interest.
Scott Hennigh, trial attorney, states, "The California construction industry is very robust with high standards. The arbitration panel appears to have recognized that California law does not tolerate large out-of-state companies misleading customers. They appear poised to send a message to Viracon about its lack of corporate responsibility."
The premier Class-A office building in Burbank, California, The Pointe, serves high-end tenants in entertainment industries such as Warner Brothers. Constructed in 2009, the 13 exterior curtain wall of the 13-story building is encased in seamless glass panels.
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Scott Hennigh, Hennigh Law CorporationMr. Hennigh may be contacted at
Scott.hennigh@hennighlaw.com
Five Steps Employers Should Take In the Second Year Of the COVID-19 Pandemic
March 29, 2021 —
Laura H. Corvo - White and Williams LLPFor the past year, employers faced unprecedented difficulties as they navigated the twists, turns and ever-present challenges the COVID-19 pandemic dished out. A year later, new challenges face employers. The promise of vaccines, the fear of new variants, and the realization that “normal” will never look quite the same, leave many employers to wonder: “what next?”. As employers prepare to enter the second year of the COVID-19 pandemic, here are five things they should plan to do.
1. Update Workplace Safety Measures
At the onset of the pandemic, employers struggled to understand the safety obligations involved in preventing the spread of COVID in the workplace. As we approach the second year of the pandemic, clearer legal standards and better science exist requiring employers to update the steps they are taking to keep their workplaces safe.
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Laura H. Corvo, White and Williams LLPMs. Corvo may be contacted at
corvol@whiteandwilliams.com
Power & Energy - Emerging Insurance Coverage Cases of Interest
November 30, 2020 —
David G. Jordan & Tiffany Casanova - Saxe Doernberger & Vita, P.C.The Power & Energy sector faces a multitude of risks that impact output and profitability, requiring sound risk management and robust insurance programs. As of recent, like most industries, there have been significant challenges facing the industry in light of COVID-19. These issues, including decreased product demand as well as supply- side issues, have been well documented. However, other issues continue to impact Power & Energy providers, with significant insurance coverage implications that are worthy of note. Below is a summary of three open cases of interest, where declaratory relief has been sought by energy providers’ insurance carriers, seeking an avoidance of coverage.
1. Fracking Dispute and “Intentional Acts”
In the Texas case of The James River Insurance Co. v. Clearpoint Chemicals LLC et al., No. 4:20-cv-0076 (N.D.Tex), James River Insurance Company (“James River”) is asking a federal district court to declare that it does not owe defense or indemnity to its insured for acts it defines as both intentional and/or malicious acts.
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David G. Jordan, Saxe Doernberger & Vita, P.C. and
Tiffany Casanova, Saxe Doernberger & Vita, P.C.
Mr. Jordan may be contacted at DJordan@sdvlaw.com
Ms. Casanova may be contacted at TCasanova@sdvlaw.com
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Housing Starts in U.S. Little Changed From Stronger January
March 19, 2014 —
Jeanna Smialek – BloombergHousing starts in the U.S. were little changed in February after declining less than previously estimated a month earlier, indicating the home-building industry is stabilizing after bad winter weather curbed construction.
The 0.2 percent decrease to 907,000 homes at an annualized rate last month followed a revised 909,000 pace in January, figures from the Commerce Department in Washington showed today. The median estimate in a Bloomberg survey called for a 910,000 rate after a previously reported 880,000 in January.
Warmer temperatures, a pickup in demand during the spring selling season and limited housing supply may help fuel further gains in new residential construction. The outlook for the industry later this year depends on whether hiring picks up enough to overcome higher mortgage rates and home prices.
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Jeanna Smialek, BloombergMs. Smialek may be contacted at
jsmialek1@bloomberg.net
Jury Trials and Mediation in Philadelphia County: Virtually in Person
July 27, 2020 —
Andrew F. Susko, Robert G. Devine & Daniel J. Ferhat - White and Williams LLPWhen will the trial court in Philadelphia County be open for jury trials in civil actions? While a precise prediction, given the current state of our trial courts in the middle of the COVID-19 pandemic, is difficult to make, what is known is that the use of virtual technology is likely permanently changing the landscape of civil litigation, including depositions, mediation, and other forms of alternative dispute resolution. Even civil jury trials, at least in the near term and during the pandemic, are being conducted virtually, either by private agreement, or through the courts, as is occurring in Texas and most recently in Florida with its pilot virtual trial program in five of its trial courts. While it is necessary at present for the parties to consent to a virtual trial, courts may ultimately compel the parties’ participation. Regardless, litigants and their counsel are well advised to understand the complexities and manner of a virtual trial.
Seasoned trial attorneys have long experienced and are comfortable with virtual depositions bringing distant counsel, parties and witnesses together through technology to present testimony. The use of virtual technology as a means for court arguments and hearings, mediation, and alternative dispute resolution, while novel and emerging as the new normal, is territory where a comfort level can be achieved. And while distinctions most assuredly exist, recent experience has demonstrated that court arguments, mediations and depositions can be conducted effectively remotely and virtually. Legal issues certainly do remain in the context of the deposition of parties to a civil action regarding whether a lawyer’s physical presence in the same room with a party-witness can be demanded, and whether courts would compel a virtual deposition during the COVID-19 pandemic where such physical presence of a party and their attorney could not be achieved. Undoubtedly these issues will be resolved, likely sooner than later, given the scope of the pandemic in certain areas.
Reprinted courtesy of White and Williams LLP attorneys
Andrew F. Susko,
Robert G. Devine and
Daniel J. Ferhat
Mr. Susko may be contacted at suskoa@whiteandwilliams.com
Mr. Devine may be contacted at deviner@whiteandwilliams.com
Mr. Ferhat may be contacted at ferhatd@whiteandwilliams.com
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