Contractors Struggle with Cash & Difficult Payment Terms, Could Benefit From Legal Advice, According to New Survey
December 30, 2019 —
Christopher G. Hill - Construction Law MusingsGuest Post Friday is back with a post from my pal Scott Wolfe. Scott is the founder and CEO of Levelset, which is used by thousands of contractors to make payments fast and easy. Scott, previously a construction attorney himself, founded Levelset to even the $1 trillion construction playing field, and is on a mission to make payments less stressful for contractors and suppliers across the globe.
Getting paid in construction is slow, hard, and stressful, according to a survey conducted by Levelset & TSheets by Quickbooks that polled over 500 construction professionals. Half of the contractors surveyed complained that they did not get paid on time, which caused serious cash flow issues that negatively impacted their customer relationships and frequently forced them to dip into personal savings and lines of credit to keep their business afloat.
View the 2019 Construction Payment Report here.
Unfortunately, since the construction industry’s slow payment problems are well-documented, this sad reality isn’t too surprising. The findings, though, do demonstrate a massive cash crunch for the 1.5 million+ contractors in the United States, and underscores the importance of having legal help and counsel from a construction lawyer before, during, and after jobs.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
The (Jurisdictional) Rebranding of The CDA’s Sum Certain Requirement
April 15, 2024 —
Jordan A. Hutcheson and Stephanie Rolfsness - Watt TiederThe Contract Disputes Act (the “CDA”), 41 U.S.C.A. §§ 7101 et seq., which has provided the statutory framework for resolution of most contract disputes between the federal government and its contractors since 1978, has recently been the subject of changes in judicial interpretation, despite no corresponding statutory changes. The CDA’s implementing provisions in the Federal Acquisition Regulations (FAR), require that contractors submit a claim to the government in the form of written demand to a contracting officer requesting a final decision and seeking the payment of money in a sum certain prior to pursuing resolution via board or court. However, with respect to the sum certain requirement, the United States Court of Appeals for the Federal Circuit issued an opinion in late 2023 determining that this requirement “should not be given the jurisdictional brand” as it has categorically received in the past. Rather, the court concluded that the sum certain requirement is merely an element of a claim for relief under the CDA that a contractor must satisfy to recover. This rebranding does not debase the sum certain requirement, but it does indicate a renewed focus on what constitutes “jurisdictional” in government contracts litigation.
Reprinted courtesy of
Jordan A. Hutcheson, Watt Tieder and
Stephanie Rolfsness, Watt Tieder
Ms. Hutcheson may be contacted at jhutcheson@watttieder.com
Ms. Rolfsness may be contacted at srolfsness@watttieder.com
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Dump Site Provider Has Valid Little Miller Act Claim
October 19, 2020 —
Christopher G. Hill - Construction Law MusingsYou may have thought that a Virginia “Little Miller Act” bond claim, like a mechanic’s lien, could only be brought by those that provide materials and labor incorporated into the construction project. If you did, you aren’t alone.
In fact, Safeco Insurance Co. of America, a surety, made exactly the above argument in Yard Works LLC v. GroundDown Constructors LLC. In that case, a debris hauling company failed to pay Yard Works, the company that provided the dumping site for the debris. Yard Works sued pursuant to the Little Miller Act to get paid. In response, the surety sought to have the claim against the payment bond dismissed and argued that because Yard Works did not actually improve the property or provide improvements and that Yard Works only passively provided a dump site, Yard Works could not claim under the payment bond.
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The Law Office of Christopher G. HillMr. Eyerly may be contacted at
te@hawaiilawyer.com
John Boyden, Alison Kertis Named “Top Rank Attorneys” by Nevada Business Magazine
July 25, 2022 —
John Boyden & Alison Kertis - Lewis BrisboisReno, Nev. (June 16, 2022) – Reno Partner John Boyden and Associate Alison Kertis were recently named to Nevada Business Magazine's 2022 list of "Top Rank Attorneys." Formerly known as "Legal Elite," this annual list represents the top talent in the legal industry across the State of Nevada.
According to Nevada Business Magazine, thousands of attorneys are nominated for the list and then scored based on the number and type of votes they receive, with votes from outside an attorney's firm receiving more weight. Finally, before being added to the list, the attorneys, and the votes they receive, go through several levels of verification and scrutiny, with each ballot individually reviewed for eligibility and every voting attorney verified with the State Bar of Nevada. The magazine has published this list for the past 15 years.
Reprinted courtesy of
John Boyden, Lewis Brisbois and
Alison Kertis, Lewis Brisbois
Mr. Boyden may be contacted at John.Boyden@lewisbrisbois.com
Ms. Kertis may be contacted at Alison.Kertis@lewisbrisbois.com
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Be Careful with “Green” Construction
March 18, 2019 —
Christopher G. Hill - Construction Law MusingsAs readers of Construction Law Musings can attest, I am an enthusiastic (if at times skeptical) supporter of sustainable (or “green”) building. I am solidly behind the environmental and other benefits of this type of construction. However, I have likened myself to that loveable donkey Eeyore on more than one occasion when discussing the headlong charge to a sustainable future. While I see the great benefits of a privately built and privately driven marketplace for sustainable (I prefer this term to “green” because I find it less ambiguous) building stock and retrofits of existing construction, I have felt for a while that the glory of the goal has blinded us somewhat to the risks and the need to consider these risks as we move forward.
Another example reared it’s ugly head recently and was pointed out by my pal Doug Reiser (@douglasreiser) at his Builders Counsel Blog (a great read by the way). Doug describes a project that I mentioned previously here at Musings and that is well described in his blog and in a recent newsletter from Stuart Kaplow (@stuartkaplow), namely, the Chesapeake Bay Foundation’s Philip Merrill Environmental Center project. I commend Doug’s post for a great description of the issues, but suffice it to say that the Chesapeake Bay Foundation sued Weyerhauser over some issues with a sustainable wood product that failed. While the case was dismissed on statute of limitations grounds, the case illustrates issues that arise in the “new” sustainable building world.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
COVID-19 Business Interruption Lawsuits Begin: Iconic Oceana Grill in New Orleans Files Insurance Coverage Lawsuit
April 20, 2020 —
Jeffrey J. Vita & William S. Bennett - Saxe Doernberger & Vita, P.C.On Monday, the iconic New Orleans restaurant, Oceana Grill, filed the first Coronavirus-related business interruption insurance coverage lawsuit in a US jurisdiction. The declaratory judgment action styled Cajun Conti, LLC, et. al. d/b/a Oceana Grill v. Certain Underwriters at Lloyd’s, London was filed in Louisiana state court for the Parish of Orleans. As a direct result of the government-mandated closures and restrictions on public gatherings implemented by the City of New Orleans and State of Louisiana, Oceana Grill’s petition anticipates a significant loss of business income.
Based on allegations in the petition, there are several aspects of Oceana Grill’s policy that make this a good test case for business interruption coverage stemming from the Coronavirus. Although the specific policy language is not quoted in the petition, coverage provisions are categorically identified throughout.
As a preliminary matter, the policy at issue appears to be written on an “all risks” basis, meaning the insuring agreement of the policy would likely be triggered generally by all risks of “physical loss or damage” unless specifically excluded. This basis for coverage, which is common in property policies, is advantageous to policyholders, as it limits the insured’s burden of proof to establishing that there was physical loss or damage while leaving the burden of applying any more specific exclusion to the insurance company.
Reprinted courtesy of
Jeffrey J. Vita, Saxe Doernberger & Vita, P.C. and
William S. Bennett, Saxe Doernberger & Vita, P.C.
Mr. Vita may be contacted at jjv@sdvlaw.com
Mr. Bennett may be contacted at wsb@sdvlaw.com
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The Big Three: The 9th Circuit Joins The 6th Circuit and 7th Circuit in Holding That Sanctions For Bad-Faith Litigation Tactics Can Only Be Awarded Against Individual Lawyers and Not Law Firms
September 03, 2015 —
Christopher B. Lloyd & Stephen J. Squillario – Haight Brown & Bonesteel LLPIn Law v. Wells Fargo Bank, N.A. (2015 S.O.S. 13–56099 – filed August 27, 2015), the Ninth Circuit joined the shortlist of Circuit Courts to hold that sanctions for bad-faith litigation tactics under 28 U.S.C. section 1927 can only be sought against individual attorneys and not law firms. Section 1927 authorizes sanctions against “[a]ny attorney or other person admitted to conduct cases in any court of the United States … who so multiplies the proceedings in any case unreasonably and vexatiously….”
On behalf of the client, an attorney with Kaass Law filed a complaint against ten different defendants, including Wells Fargo Bank, which moved to dismiss under F.R.C.P. Rule 12(b)(6). Rather than responding to the motion to dismiss, plaintiff filed a motion to amend the initial complaint; Wells Fargo Bank filed a notice of non-opposition.
Reprinted courtesy of
Christopher B. Lloyd, Haight Brown & Bonesteel LLP and
Stephen J. Squillario, Haight Brown & Bonesteel LLP
Mr.Lloyd may be contacted at clloyd@hbblaw.com
Mr. Squillario may be contacted at ssquillario@hbblaw.com
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Pennsylvania Federal Court Addresses Recurring Asbestos Coverage Issues
March 04, 2019 —
Craig O’Neill & Laura Rossi - Complex Insurance Coverage ReporterIn a pair of recent asbestos coverage decisions, a Pennsylvania federal court issued rulings addressing expedited funding orders, number of “occurrences,” and the applicability of aggregate limits under the Fourth Circuit’s Wallace & Gale approach.
Zurn Industries, LLC v. Allstate Insurance Company, 2018 U.S. Dist. LEXIS 197481 (W.D. Pa. Nov. 20, 2018)
Policyholder Zurn, a manufacturer and distributor of boilers, was named as a defendant in thousands of underlying asbestos-related bodily injury suits. After its primary insurers claimed exhaustion, Zurn moved on an expedited basis to require two of its excess insurers to each assume fifty percent of its defense and indemnity costs until they reached a permanent cost-sharing agreement. In denying Zurn’s expedited request for interim funding, the court held that the record was insufficient “in the opening stages of litigation, before discovery has occurred” to determine whether the underlying coverage had been properly exhausted but left the door open for Zurn to refile its motion on a more developed record.
Reprinted courtesy of
Craig O’Neill, White and Williams LLP and
Laura Rossi, White and Williams LLP
Mr. Levine may be contacted at oneillc@whiteandwilliams.com
Ms. Rossi may be contacted at rossil@whiteandwilliams.com
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