North Carolina Court Rules In Favor Of All Sums
July 13, 2020 —
Lorelie S. Masters & Patrick M. McDermott - Hunton Andrews KurthA North Carolina court recently ruled in favor of all sums allocation. Duke Energy Carolinas, LLC v. AG Insurance SA/NV, No. 17 CVS 5594 (N.C. Sup. Ct.). In that case, Duke Energy is seeking coverage for “liabilities linked to coal combustion residuals (‘CCRs’), i.e., coal ash, at fifteen Duke-owned power plants in North and South Carolina.” In a recent summary judgment decision, the court resolved a dispute between Duke and TIG Insurance Company, as successor to Ranger Insurance Company, about whether all sums allocation or pro rata allocation applied.
The court found that “the non-cumulation provisions make plain” that all sums allocation applied. It also noted that “a large majority of the courts in other jurisdictions that have considered this issue have recognized that non-cumulation provisions such as those here compel all sums rather than pro rata allocation.” The decisions to the contrary, according to the court, had ruled “done so on public policy grounds” and not based on “the application of the rules of contract interpretation.”
Reprinted courtesy of
Lorelie S. Masters, Hunton Andrews Kurth and
Patrick M. McDermott, Hunton Andrews Kurth
Ms. Masters may be contacted at lmasters@HuntonAK.com
Mr. McDermott may be contacted at pmcdermott@HuntonAK.com
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Render Unto Caesar: Considerations for Returning Withheld Sums
January 18, 2021 —
William E. Underwood Partner, Jones Walker LLP - ConsensusDocsWithholding sums during a dispute can be an effective and perfectly legitimate means to protect against the harms caused by another party’s breach. However, withholding too much money during a dispute can turn a position of strength into one of weakness.
“Why should I fund the other side’s litigation war chest?” and “Isn’t this just a display of weakness?” are common questions raised by contractors when this issue is discussed. Often, the contractor is well within its contractual or legal rights to withhold money from a breaching subcontractor (another topic for another day). But it may not always be in a contractor’s best interest to withhold every single penny available.
This article addresses some of the long-term implications for failing to return withheld sums, including the potential to recover attorneys’ fees, possible bad faith, accruing interest, and overall litigation costs. Admittedly, it can be hard to give money back in the middle of a dispute. But sometimes it can positively impact the overall outcome of the case.
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William E. Underwood, Jones Walker LLP (ConsensusDocs)Mr. Underwood may be contacted at
wunderwood@joneswalker.com
Select the Best Contract Model to Mitigate Risk and Achieve Energy Project Success
October 17, 2022 —
Gregory S. Seador - Construction ExecutivePower and energy projects are inherently complex and risky. Therefore, management and proper allocation of risk among project participants are essential to success.
Careful drafting of the engineering, procurement and construction (EPC) contract is a critical first step in managing risk. The standard contract format used for power and energy construction projects is the EPC contract. In its traditional form, the EPC contract makes the EPC contractor responsible for the entire project, including engineering (design of the power plant), procurement (purchase, installation and performance of all equipment) and construction (construction of the plant).
EPC contracts can, however, employ different contract models and pricing structures, each of which carries differing levels of risk for project participants. Selecting the appropriate contract model and pricing structure to meet the unique needs of the project is important.
Reprinted courtesy of
Gregory S. Seador, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Seader may be contacted at
seador@slslaw.com
Does a Broker Forfeit His or Her Commission for Technical Non-Compliance with Department of Real Estate Statutory Requirements?
September 14, 2020 —
Kevin J. Parker - Snell & Wilmer Real Estate Litigation BlogIn a recent Arizona Court of Appeals case, CK Revocable Trust v. My Home Group Real Estate LLC, 2020 WL 4306183 (7/28/2020), the Court of Appeals addressed the distinction between “substantive” and “technical” statutory requirements for real estate broker commission agreements.
The Court explained that failure to comply with a substantive requirement would preclude the broker from recovering a commission, but failure to comply with a technical requirement would not. As examples of such substantive requirements, the Court identified the statutory requirement that the broker be licensed at the time the claim for commission arose, and the statutory requirement that the listing agreement be signed by both the broker and the client.
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Kevin J. Parker, Snell & WilmerMr. Parker may be contacted at
kparker@swlaw.com
Hurricane Handbook: A Policyholder's Guide to Handling Claims during Hurricane Season
October 11, 2021 —
Tracy Alan Saxe, Kelly A. Johnson, Samantha M. Oliveira & R. G. Nelson - Saxe Doernberger & VitaSDV's Natural Disaster Recovery Group presents the Hurricane Handbook: A Policyholder's Guide to Handling Claims during Hurricane Season. This handbook intends to be a practical guide on policyholder issues, both homeowners and business owners alike, when preparing for hurricane season and handling claims after a loss due to a hurricane. The handbook is a living document that will evolve over time, as our Natural Disaster Recovery Group members continue to contribute new and expansive content on the complex issues arising in this area. Remember to check back for additional information and updated content regarding the Hurricane Season Policyholder’s Handbook.
I. Are You Adequately Insured for a Hurricane?
Understanding the various types of coverage policyholders can purchase is vital to weathering the financial storm following a natural disaster.
Reprinted courtesy of
Tracy Alan Saxe, Saxe Doernberger & Vita,
Kelly A. Johnson, Saxe Doernberger & Vita,
Samantha M. Oliveira, Saxe Doernberger & Vita and
R. G. Nelson, Saxe Doernberger & Vita
Mr. Saxe may be contacted at TSaxe@sdvlaw.com
Ms. Johnson may be contacted at KJohnson@sdvlaw.com
Ms. Oliveira may be contacted at SOliveira@sdvlaw.com
Ms. Nelson may be contacted at RNelson@sdvlaw.com
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Construction Goes Green in Orange County
December 04, 2013 —
CDJ STAFFConstruction has completed on ParkLanding, which is the first residential project in Orange County with a green roof. Developed in partnership with the City of Buena Park Redevelopment Agency, the project replaces an abandoned 2-acre site with affordable apartments. The design was done by Newport Beach-based Newman Garrison + Partners.
During the design process, attention was paid to sustainable element, including better performing insulation, and more efficient HVAC, electrical, and plumbing systems. The development was designed with the intention of achieving a LEED Gold rating.
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DOD Contractors Receive Reprieve on Implementation of Chinese Telecommunications Ban
September 14, 2020 —
Lori Ann Lange & Sabah Petrov - Peckar & AbramsonIn our previous
alert, we discussed the expansion on the Section 889(a)(1)(B) ban on certain Chinese telecommunications equipment and services to contractors and subcontractors who use the equipment and services in their internal operations. Effective August 13, 2020, federal agencies were prohibited from procuring, obtaining, extending, or renewing a contract with a contractor that uses equipment, systems, or services that use covered telecommunications equipment or services as a substantial or essential component or as critical technology, unless an exception applies or a waiver is granted. Since then we have received feedback from contractors, complaining about the difficulties in determining whether their internal operations use covered telecommunications equipment and services and the need for additional time to become compliant or even obtain enough information to submit a waiver request.
Now it seems that Department of Defense (DoD) contractors and subcontractors may be getting a temporary reprieve. The DoD Under Secretary for Acquisition and Sustainment requested a waiver that would allow DoD to continue to execute procurement actions providing supplies, equipment, services, food, clothing, transportation, care, and support necessary to execute the DoD mission. The Director of National Intelligence granted the temporary waiver until September 30, 2020 pending a further review of waiver request. Depending upon the outcome of this additional review, the temporary waiver may be continued beyond September 30, 2020 if it is in the national security interests of the United States.
Reprinted courtesy of
Lori Ann Lange, Peckar & Abramson and
Sabah Petrov, Peckar & Abramson
Ms. Lange may be contacted at llange@pecklaw.com
Ms. Petrov may be contacted at spetrov@pecklaw.com
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The Right to Repair Act Isn’t Out for the Count, Yet. Homebuilders Fight Back
October 02, 2015 —
Garret Murai – California Construction Law Blog“[I]t ain’t how hard you hit; it’s about how hard you can get hit, and keep moving forward. How much you can take, and keep moving forward. That’s how winning is done. . . .” – Sylvester Stalone as Rocky Balboa in Rocky Balboa.
Ding, ding.
The Little Case That Roared
Two years ago we wrote about a case that caused an uproar in the homebuilding industry – Liberty Mutual Insurance Company v. Brookfield Crystal Cove LLC, 219 Cal.App.4th 98 (2013) – in which the California Court of Appeals for the Fourth District held for the first time that the Right to Repair Act does not provide the exclusive remedy for construction defect claims involving “actual,” as opposed to “economic,” damages in new residential housing.
It was a blow to the homebuilding industry who back in 2002, following a wave of construction defect lawsuits involving new residential housing, lobbied the State Legislature for the Right to Repair Act which gave homebuilders an opportunity to repair defects before being sued in court.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com