Labor Development Impacting Developers, Contractors, and Landowners
June 25, 2019 —
John Bolesta & Keahn Morris - Sheppard Mullin Construction & Infrastructure Law BlogIt is unlawful for unions to secondarily picket construction sites or to coercively enmesh neutral parties in the disputes that a union may have with another employer. This area of the law is governed by the National Labor Relations Act (“NLRA”), the federal law that regulates union-management relations and the National Labor Relations Board (“NLRB”), the federal administrative agency that is tasked with enforcing the NLRA. But NLRB decisions issued during the Obama administration have allowed a union to secondarily demonstrate at job sites and to publicize their beefs over the use of non-union contractors there, provided the union does not actually “picket” the site. In those decisions, the NLRB narrowed its definition of unlawful “picketing,” thereby, limiting the scope of unlawful activity prohibited by law. Included in such permissible nonpicketing secondary activity is the use of stationary banners or signs and the use of inflatable effigies, typically blow-up rats or cats, designed to capture the public’s attention at an offending employer’s job site or facilities.
A recently released NLRB advice memo, however, signals the likely reversal of those earlier decisions and that contractors and owners may now be able to stop such harassing union job site tactics simply by filing a secondary boycott unfair labor practice change with the NLRB. The 18 page memo, dated December 20, 2018 (and released to the public on May 14, 2019), directs the NLRB’s Region 13 to issue a complaint against the Electrician’s Union in a dispute coming out of Chicago where the union erected a large, inflatable effigy, a cat clutching a construction worker by the neck, and posted a large stationary banner proclaiming its dispute to be with the job’s general contractor over the use of a non-union electrical sub at the job site’s entrance. Though not an official Board decision, the memo suggests the NLRB General Counsel’s (GC) belief that the earlier Obama era decisions may have been wrongly decided and should be reconsidered by the NLRB on the theories that the Union’s nonpicketing conduct was tantamount to unlawful secondary picketing, that it constituted “signal” picketing that unlawfully induced or encouraged the employees of others to cease working with the subs or that it constituted unlawful coercion.
Reprinted courtesy of
John Bolesta, Sheppard Mullin and
Keahn Morris, Sheppard Mullin
Mr. Bolesta may be contacted at jbolesta@sheppardmullin.com
Mr. Morris may be contacted at kmorris@sheppardmullin.com
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Newmeyer & Dillion Named as One of the 2018 Best Places to Work in Orange County for Seventh Consecutive Year
August 15, 2018 —
Newmeyer & DillionNEWPORT BEACH, Calif. – JULY 23, 2018 – Prominent business and real estate law firm Newmeyer & Dillion LLP is proud to be selected as one of the 2018 Best Places to Work in Orange County in the category of medium sized companies. This marks the seventh consecutive year Newmeyer & Dillion LLP has made the list, affirming that its profound commitment to professionalism and client service is shared among its workforce. The ranking was released in a special section of the Orange County Business Journal's July 23 issue.
Jeff Dennis, Newmeyer & Dillion's Managing Partner, commends the effort of each employee in achieving this result. "Together, we strive to maintain an innovative, collaborative and creative culture that cannot be matched anywhere else, and we are sincerely grateful for each of our employees' ongoing commitment to the firm's values."
The awards program was created in 2009 and is a project of the Orange County Business Journal and Best Companies Group. This county-wide survey and awards program was designed to identify, recognize and honor the best places of employment in Orange County, California, benefiting the county's economy, its workforce and businesses.
For more information on the survey process for the Best Places to Work in Orange County program, visit www.BestPlacestoWorkOC.com or contact Jackie Miller at 877-455-2159.
About Newmeyer & Dillion
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client's needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949.854.7000 or visit www.ndlf.com.
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Federal District Court Addresses Anti-concurrent Cause Language in Property Policy
February 04, 2025 —
James M. Eastham - Traub LiebermanIn Surchi1, LLC v. Travelers Indem. Co., 2024 U.S. Dist. LEXIS 227796 (N.D. Ill. Dec. 17, 2024), the United States District Court for the Northern District of Illinois addressed a carrier’s obligation to cover costs associated with remediating water-related damage to insured property. In July 2022, the insured property experienced water-related damage and resulting repair costs. A claim was submitted for coverage under a property policy issued by Travelers. Travelers denied the claim and the insured initiated an action against Travelers seeking coverage. During the litigation Travelers maintained its position that it was not obligated to cover the water-related damage, because (1) under the policy, Travelers is not obligated to cover damage caused by surface water, even if surface water contributed only in part to the damage, and (2) the pleadings irrefutably establish that surface water contributed, at least in part, to the property damage. The insured took the contrary view arguing that Travelers was obligated to cover water-related damage (1) because the damage was the result of a water or sewage backing up or overflowing from sewers, and (2) this obligation remains, even if surface water contributed in part to the damage.
The court began with a review of the relevant policy language. Under the policy, Travelers "will not pay for loss or damage caused directly or indirectly by ... surface water." At the same time, under a change endorsement to the policy, Travelers agreed to cover "direct physical loss of or damage to Covered Property at the described premises caused by or resulting from water or sewage that backs up or overflows from a sewer, drain, or sump." In light of this language, the parties dispute centered on whether Travelers is obligated to cover damages caused concurrently by surface water (an excluded peril) and by water or sewage that backs up or overflows from a sewer, drain, or sump (a covered peril).
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James M. Eastham, Traub LiebermanMr. Eastham may be contacted at
jeastham@tlsslaw.com
Tesla’s Solar Roof Pricing Is Cheap Enough to Catch Fire
May 10, 2017 —
Tom Randall - BloombergTesla Inc. has begun taking orders for its remarkable solar roof tiles to be delivered by summer at a price point that could be transformative for the U.S. solar market.
Tesla will begin with production of two of the four styles of solar tile unveiled in October: a smooth glass and a textured glass version. The Tuscan and French slate tiles will be available by the end of this year. Roofing a 2,000 square-foot home in New York state—with 40 percent coverage of active solar tiles and battery backup for night-time use—would cost about $50,000 after federal tax credits and generate $64,000 in energy over 30 years, according to Tesla.
The warranty is for the lifetime of your house.
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Tom Randall, Bloomberg
Construction Litigation Roundup: “Give a Little Extra …”
July 31, 2024 —
Daniel Lund III - LexologySurplus lines insurers in Louisiana are considered by the state to be “an alternative type of property and casualty insurance coverage for consumers who cannot get coverage on the standard market … for specialty risk or high-risk situations….”
As a quid pro quo for undertaking the exceptional risk, a surplus lines insurer argued to the United States Fifth Circuit Court of Appeals that an arbitration clause within its surplus line policy should be enforceable, notwithstanding a Louisiana statute applying to the insurance industry and prohibiting terms in insurance policies “delivered or issued for delivery” in Louisiana which have the effect of “[d]epriving the courts of this state of the jurisdiction or venue of action against the insurer.” La. R.S. 22:868.
Historically in Louisiana, arbitration clauses have been understood to divest courts of jurisdiction, and, consequently, §22:868 has been held to memorialize an “anti-arbitration policy,” although the statute does not specifically mention arbitration.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Top Developments March 2024
April 22, 2024 —
Complex Insurance Coverage ReporterCLAIMS-MADE COVERAGE
Zurich Am. Ins. Co. v. Syngenta Crop Prot. LLC, 2024 Del. LEXIS 68 (Del. Feb. 26, 2024)
Delaware Supreme Court concludes that a letter from a lawyer informing an insured of possible lawsuits without identifying potential plaintiffs or demanding payment is not a “claim for damages” within the meaning of claims-made CGL and umbrella liability policies. Citing case law from Delaware and other jurisdictions, it reasoned that, in the ordinary sense, a “claim for damages” (which the policies did not define) is “a demand or request for monetary relief by or on behalf of an identifiable claimant.” According to the court, the letter in question did not meet this definition because it did not identify any claimants “except in the vaguest terms” or request monetary relief on any claimant’s behalf, but rather communicated only a threat of future litigation. As a result, the letter was not a claim made before the policy periods at issue.
POLLUTION EXCLUSION
Wesco Ins. Co. v. Brad Ingram Constr., 2024 U.S. App. LEXIS 1488 (9th Cir. Jan. 23, 2024)
A divided Ninth Circuit panel, applying California law, holds that a pollution exclusion* in a CGL policy does not preclude a duty to defend an underlying suit alleging physical injury from exposure to “clouds of toxic dust” deposited in the environment by a wildfire and released during clean up efforts. Citing MacKinnon v. Truck Ins. Exch., 73 P.3d 1205 (Cal. 2003), the majority explained that determining whether a “pollution event” (i.e., “environmental pollution”) resulting in excluded injury has occurred involves consideration of “the character of the injurious substance” and whether the exposure resulted from a “mechanism specified in the policy.” It concluded that a potential for coverage (and, therefore, a defense obligation) existed because, although wildfire debris may be considered a “pollutant” in certain circumstances, the mechanism alleged in the underlying complaint – “expos[ure] . . . to clouds of toxic dust during the loading and unloading of [the underlying plaintiff’s] truck” – did not clearly constitute an “event commonly thought of as pollution.”
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White and Williams LLP
Public Law Center Honors Snell & Wilmer Partner Sean M. Sherlock As Volunteers For Justice Attorney Of The Year
June 10, 2019 —
Sean M. Sherlock – Snell & Wilmer Real Estate Litigation BlogSnell & Wilmer is pleased to announce the Public Law Center (PLC) has named Orange County partner Sean M. Sherlock as the 2019 Volunteers for Justice Attorney of the Year.
Sherlock donates his time and knowledge to his community through his pro bono work with PLC. From 2015 to earlier this year he headed a team of attorneys who represented an elderly PLC client in danger of losing her mobile home. The client is the primary caregiver for her disabled grandson who survives solely on a fixed income of disability and Social Security, causing her to fall behind on her space rent for her mobile home. In addition to pro bono work, Sherlock is an avid community volunteer, spending his time supporting organizations that have included Big Brothers/Big Sisters, Orange County Coastkeeper, AYSO and the Boy Scouts of America.
“One of the most rewarding aspects of being an attorney is being able to obtain justice for the vulnerable and defenseless in our society who would otherwise be unable to navigate our legal system,” said Sherlock. “My relationship with the PLC has given me many opportunities to do some very gratifying work, and it is a real pleasure working with and learning from the excellent staff attorneys at PLC.”
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Sean M. Sherlock, Snell & Wilmer Mr. Sherlock may be contacted at
ssherlock@swlaw.com
Sochi Construction Unlikely to be Completed by End of Olympic Games
February 11, 2014 —
Beverley BevenFlorez-CDJ STAFFAs journalists and visitors descended upon Sochi, Russia for this winter’s Olympic Games, they reported “used linen, improper toilets, poor wiring, unclean water and loose fixtures” using the Twitter hash tag @SochiProblems, according to The International Business Times. Furthermore, it is doubtful that the construction work “in and around Sochi” will be completed by February 23rd—the official end of the games.
The International Business Times article features photographs of various unfinished construction sites including an apartment building, hotels, a sports store, and other buildings. The Olympic opening ceremony took place on February 7th.
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