Risk Spotter Searches Internal Data Lakes For Loaded Words
October 11, 2017 —
Tom Sawyer - Engineering News-RecordA tech start-up recently announced that it has been granted seven U.S. patents for a system that applies a “deep learning” algorithm to examine corporate e-mail databases and flag those with message fields or attachments containing language that might increase risk for a company involved in a federal discrimination lawsuit.
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Tom Sawyer, ENRMr. Sawyer may be contacted at
sawyert@enr.com
'Perfect Storm' Caused Fractures at San Francisco Transit Hub
January 08, 2019 —
Nadine M. Post - Engineering News-RecordThe underlying causes of the trouble at San Francisco’s 4.5-block-long Salesforce Transit Center are coming into focus. A combination of low fracture toughness deep inside thick steel plates, cracks present as a consequence of normal steel fabrication and stress levels from loads, which are a function of design, apparently caused brittle fractures in the bottom flanges of the center's twin built-up plate girders that span 80 ft across Fremont Street.
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Nadine M. Post, ENRMs. Post may be contacted at
postn@enr.com
Claim for Punitive Damages Based on Insurers' Alleged Bad Faith Business Practices Fails
September 05, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe court granted the insurer's motion to dismiss the bad faith claim based upon allegations of a general business practice of acting recklessly toward an insured's rights under the policy. Sandpiper Isle Condo. Ass'n v. Empire Indem. Ins. Co., 2022 U.S. Dist. LEXIS 114279 (M.D. Fla. June 28, 2022).
Sandpiper suffered property damage from Hurricane Irma. Empire accepted the claim but there was disagreement on the value of the damage. An appraisal issued an award in favor of Sandpiper but Empire failed to pay the benefits for two years.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Court Provides Guidance on ‘Pay-When-Paid’ Provisions in Construction Subcontracts
July 13, 2020 —
Ted R. Gropman & Cindy J. Lee - ConsensusDocsOn April 17, the California Court of Appeal decided Crosno Construction, Inc. v. Travelers Casualty & Surety Company of America,1 effectively narrowing the scope of enforceable “pay-when-paid” provisions in construction subcontracts to the extent the subcontractor seeks recovery against a general contractor’s payment bond surety. Although the Crosno case involved a public works project, the rationale and holding should apply with equal force to private works projects. Basing the bulk of its decision on the Wm. R. Clarke Corp. v. Safeco Insurance Co.2 case, the court found that an open-ended “pay-when-paid” provision in a subcontract is not enforceable against a subcontractor that seeks to recover on a public works payment bond claim. This article discusses the Crosno decision and the implications for contractors on both sides of the contract moving forward.
Brief Case Summary
In Crosno, general contractor Clark Bros., Inc. contracted with the North Edwards Water District (the District) to build an arsenic removal water treatment plant. Clark hired steel storage tank subcontractor Crosno Construction, Inc. to build and coat two steel reservoir tanks. Clark and Crosno’s subcontract included a “pay-when-paid” provision, which stated that Clark would pay Crosno within a “reasonable time” of receiving payments from the owner, but “in no event less than the time Contractor and Subcontractor require to pursue to conclusion their legal remedies against Owner or other responsible party to obtain payment.” After Crosno completed its work, a dispute arose between Clark and the District, and the District withheld payment from Clark (including the monies earmarked for Clark’s subcontractors). Clark sued the District for payment, and Crosno filed its own action against Travelers Casualty and Surety Company of America, the surety on Clark’s statutory public works payment bond, for recovery of the unpaid subcontract balance. Travelers rejected Crosno’s bond claim as premature, invoking the “pay-when-paid” subcontract language and pointing to Clark’s pending payment action against the District. The issue on appeal was whether the “pay-when-paid” provision in the subcontract blocked Crosno from recovering under the payment bond from Travelers while Clark’s lawsuit against the District was still pending.
Reprinted courtesy of
Ted R. Gropman, Pepper Hamilton LLP and
Cindy J. Lee, Pepper Hamilton LLP
Mr. Gropman may be contacted at ted.gropman@troutman.com
Ms. Lee may be contacted at cindy.lee@troutman.com
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Congratulations to Haight Attorneys Selected for the 2024 Edition of Best Lawyers and Best Lawyers: Ones to Watch
September 11, 2023 —
Haight Brown & Bonesteel LLPBest Lawyers and Best Lawyers: Ones to Watch – 2024 Edition
Best Lawyers 2024 Edition
- Bruce Cleeland
- Peter Dubrawski
- Denis Moriarty
- Theodore Penny
Best Lawyers: Ones to Watch 2024 Edition
- Frances Brower
- Kyle DiNicola
- Kristian Moriarty
- Arezoo Jamshidi
- Josh Maltzer
- Philip McDermott
- Patrick McIntyre
- Annette Mijanovic
- Kathleen Moriarty
- Bethsaida Obra-White
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Haight Brown & Bonesteel LLP
Halliburton to Pay $1.1 Billion to Settle Spill Lawsuits
September 03, 2014 —
David Wethe, Margaret Cronin Fisk and Laurel Calkins – BloombergHalliburton Co. agreed to pay $1.1 billion to settle a majority of lawsuits brought over its role in the largest offshore oil spill in U.S. history.
The agreement is subject to court approval and includes legal fees, the Houston-based company said in a statement today. Halliburton was accused by spill victims and BP Plc of doing defective cementing work on the Macondo well before the April 2010 Gulf of Mexico oil spill. Halliburton blamed the incident on decisions by BP, which owned the well.
The settlement comes as the judge overseeing oil-spill cases weighs fault for the disaster. An agreement now averts the company’s risk of a more costly judgment for some spill victims and removes much of the uncertainty that has plagued Halliburton for the past four years as investors waited to see the payout tally. With its biggest piece of liability resolved, Halliburton can refocus its attention on developing new oilfield technology that will help it boost profits worldwide.
Reprinted courtesy of Bloomberg journalists
David Wethe,
Margaret Cronin Fisk and
Laurel Calkins
Mr. Wethe may be contacted at dwethe@bloomberg.net; Ms. Fisk may be contacted at mcfisk@bloomberg.net; and Ms. Calkins may be contacted at lcalkins@bloomberg.net
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Texas Central Wins Authority to Take Land for High-Speed Rail System
October 03, 2022 —
Barclay Nicholson & Erica Gibbons - Sheppard Mullin Construction & Infrastructure Law BlogMove over luxury bus lines and quick flights. Central Texans should be on the lookout for bulldozers and train stops. On June 24, 2022, the Supreme Court of Texas held that Texas Central Railroad & Infrastructure, Inc. and related entities (collectively “Texas Central”) have eminent domain authority to acquire property for a proposed high-speed rail system between Dallas and Houston.
[1] Specifically, the Court held that the corporation qualifies as an “interurban electric railway company” under the Texas Transportation Code. This ruling grants Texas Central the broad condemnation authority to procure land for the project.
Texas Central has Statutory Authority to Take Land
The plaintiff in the matter, a farm owner with property south of Dallas along the proposed path of the bullet train, challenged the companies power to condemn land. The landowner’s declaratory judgment action challenged Texas Central’s eminent-domain authority. Under Texas law, condemnation power must be conferred by the legislature, either expressly or by necessary implication.
[2]
Here, Texas Central was created for the purpose of constructing, acquiring, maintaining, or operating lines of electric railway between Texas municipalities. The Court found that Texas Central is engaged in activities to further that purpose. Therefore, the Court concluded, that although legislators did not contemplate high-speed railways at the time of drafting the Transportation Code, Texas Central nonetheless qualified as “interurban electric railway companies” under the statute.
Reprinted courtesy of
Barclay Nicholson, Sheppard Mullin and
Erica Gibbons, Sheppard Mullin
Mr. Nicholson may be contacted at bnicholson@sheppardmullin.com
Ms. Gibbons may be contacted at egibbons@sheppardmullin.com
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Can Baltimore Get a Great Bridge?
June 21, 2024 —
James S. Russell - BloombergWhen the Francis Scott Key Bridge collapsed
after being struck by a massive container ship early in the morning on March 26, six highway workers were killed, a segment of the Baltimore Beltway was severed, the Port of Baltimore was largely shut down for two months — and the city lost an important piece of its identity.
Before its destruction made it famous, the Key Bridge was not really a landmark like San Francisco’s Golden Gate Bridge or other charismatic spans that serve as symbols for their host cities. Built in 1977, it was a more utilitarian structure, with brawny trusswork that evoked the city’s industrial past, and an important job to do: It could carry the fuel-hauling tanker trucks that are prohibited from traveling through two nearby tunnels. Its visibility at the mouth of Baltimore’s harbor marked it as a prominent link between the modest communities that line the blue-collar waterfront and the glass apartment and office towers that now define the downtown skyline.
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James S. Russell, Bloomberg