COVID-19 Likely No Longer Covered Under Force Majeure
February 01, 2023 —
Rachel E. Pelovitz - Construction ExecutiveA recent decision by the U.S. Government Accountability Office (GAO) has shaken up construction contracts. While companies could claim “force majeure” to exempt themselves from contractual obligations during much of the pandemic, this decision challenges ongoing validity of those claims.
The decision was based on the Army Corps of Engineers deeming a bid from Boulder, Colorado–based American Mine Services (AMS) as nonresponsive because it included a COVID-19 force majeure clause. In reviewing the Corps’ decision, GAO—referencing the Federal Acquisition Regulation—found that “epidemics” and “quarantine restrictions” were already included in the contract between the Corps and AMS. Although AMS claimed that “COVID-19 is considered a force majeure event along with any other similar disease, epidemic or pandemic event,” the GAO concluded that this interpretation limited the rights of the government too much.
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Rachel E. Pelovitz, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Ms. Pelovitz may be contacted at
pelovitz@abc.org
The ‘Sole Option’ Arbitration Provision in Construction Contracts
July 16, 2014 —
Beverley BevenFlorez-CDJ STAFFOn his Best Practices Construction Law blog, Matthew Devries discussed how the “at its sole option…has the right to demand arbitration” can “be a good provision if you are the party who has that option.”
For instance, Devries cites the case Archer Western Contractors, LLC v Holder Construction Company, where “the Georgia Court of Appeals recently affirmed the trial court’s decision to grant a contractor’s motion to compel arbitration with a ‘sole option’ provision.”
Devries stated that “it is important to review carefully the disputes clause in your construction contract to fully understand who has the right to demand arbitration and what rules will apply.”
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Jobsite Safety, Workforce Shortage Drive Innovation in Machine Automation
August 07, 2018 —
Scott Crozier - Construction ExecutiveFrom driverless cars and drones, to robots working in operating rooms, manufacturing plants and fast food restaurants, machine automation is making headlines – and will continue to do so for the foreseeable future. And when it comes to machine automation, the construction industry is poised to be a hotbed of innovation. Equipment manufacturers and technology providers in the construction industry have the benefit of using the lessons learned from the manufacturing and automotive industries to meet the needs of contractors, project owners and machine operators through more efficient, highly automated equipment.
According to the Society of Automotive Engineers (SAE), there are six stages of automation, ranging from zero autonomy to full automation, where a vehicle is capable of performing all driving functions under all conditions. The construction industry is somewhere in the middle of these six stages, with some automation functionality available on some equipment today, but still requiring an operator to remain engaged with the driving task and the environment.
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Scott Crozier, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Nevada Senate Bill 435 is Now in Effect
February 24, 2020 —
Bremer Whyte Brown & O'Meara LLPATTENTION: Nevada liability departments and auto insurance carriers! Nevada Senate Bill No. 435 was recently signed into law and there are two key points to be aware of: Disclosure of Policy Limits Demand and Voiding Releases. These both deal with pre-litigation situations.
1) Nevada law now requires a motor vehicle insurer to disclose the limits of the policy if the claimant provides a HIPAA authorization which allows the carrier to “receive all medical reports, records and bills related to the claim from the providers of health care.” This is a change from the previous Nevada statute which required the disclosure of policy limits only after litigation was commenced.
However, it appears from the language of the statute that there are limits to this new mandate. Section 4 of the new law is written in such a way to allow the argument that the new law applies only to accidents that occurred after 10/1/19, and that the insurance company has to request the HIPAA waiver from the claimant in order for the disclosure requirement to apply.
The plaintiff’s bar is already attempting to address this language in the legislature. As written, subsection (4) is governed by subsection (1) which states that the insurance company “may require the claimant … to provide … a written authorization.” The following subparts all appear to be triggered only by the act of the insurance company requesting a HIPAA waiver. The plaintiff’s bar is pushing for clarifying language that would make it clear that once the claimant sent a HIPAA waiver, irrespective of whether the document was requested by the insurance company or not, the insurance company is required to disclose policy limits. This is not how the law reads on its face, and the change would make a significant difference from a practical perspective.
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Wildfire Threats Make Utilities Uninsurable in US West
August 12, 2024 —
Mark Chediak - BloombergTrinity Public Utilities District’s power lines snake through the lower reaches of the Cascade Range, a rugged, remote and densely forested terrain in Northern California that has some of the highest wildfire risk in the country. But for several years, the company has been without insurance to protect it from such a threat.
Trinity’s equipment was blamed for causing a 2017 wildfire that destroyed 72 homes and three years later its insurer, a California public agency called the Special District Risk Management Authority, told the utility that it would no longer cover it for fires started by its electrical lines. Trinity could find no other takers.
The utility’s exposure comes as wildfires are already flaring up across the US West in what could be a dangerous and prolonged fire season.
“If a fire were to start now that involved one of our power lines, it would likely bankrupt the utility,” said Paul Hauser, general manager of the local government-owned utility that serves about 13,000 rural customers in Trinity County, 200 miles (322 kilometers) north of Sacramento. That’s because without insurance, a lawsuit could put the utility on the hook to pay for damages to private homes and businesses, which could easily top the utility’s annual revenue of about $16 million.
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Tennessee Court: Window Openings Too Small, Judgment Too Large
November 18, 2011 —
CDJ STAFFThe Tennessee Court of Appeals has issued a ruling in the case of Dayton v. Ackerman, upholding the decision of the lower court, even as they found that the award was incorrectly computed. The Daytons purchased a house that had been designed and built by the Ackermans, who operated a construction business. The court noted that the warranty with the house promised that “for a period of 60 days, the following items will be free of defects in materials or workmanship: doors (including hardware); windows; electric switches; receptacles; and fixtures; caulking around exterior openings; pluming fixtures; and cabinet work.”
Soon, the Daytons began to experience problems with the house. Many were addressed by the Ackermans, but the Daytons continued to have problems with the windows. Neither side could specify a firm date when the Ackermans were contacted by the Daytons about the window problems. The Ackermans maintained that more than two years passed before the Daytons complained about the windows. The lower court found the Daytons more credible in this.
Initially, the Daytons included the window manufacturer in their suit, but after preliminary investigations, the Daytons dropped Martin Doors from their suit. Martin Doors concluded that the windows were improperly installed, many of them “jammed into openings that were too small for them.”
After the Daytons dismissed Martin Doors, the Ackermans sought to file a third party complaint against them. This was denied by the court, as too much time had elapsed. The Ackermans also noted that not all of the window installations were defective, however, the courts found that the Daytons ought not to have mismatched windows.
Unfortunately for the Daytons, the window repair was done incorrectly and the windows were now too small for the openings. The firm that did the repair discounted the windows and Daytons concealed the problem with plantation shutters, totalling $400 less than the original lowest estimate. However, the appeals court noted that it was here that the trial court made their computation error. Correcting this, the appeals court assessed the Ackermans $12,016.20 instead of $13,016.20.
Finally, the Ackerman’s expert was excluded as he had changed his testimony between deposition and trial. The trial reviewed the expert’s testimony and had it been admissible, it would not have changed the ruling.
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Wilke Fleury Attorneys Featured in “The Best Lawyers in America” & “Best Lawyers: Ones to Watch” 2025 Editions
August 19, 2024 —
Wilke Fleury LLP2025 Best Lawyers & Ones to Watch
George Guthrie, Best Lawyer
Adriana Cervantes, One to Watch
Steven Williamson, Best Lawyer
Jason Eldred, One to Watch
Daniel Foster, Best Lawyer
David Frenznick, Best Lawyer
Kathryne Baldwin, One to Watch
Daniel Egan, Best Lawyer
Wilke Fleury is extremely proud to have five attorneys recognized in The Best Lawyers in America and three attorneys recognized in the Best Lawyers: Ones to Watch in America! Best Lawyers has been regarded by lawyers and the public for more than 40 years as the most credible measure of legal integrity and distinction in the United States. Congratulations to this talented group!
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Architecture, Robotics, and the Importance of Human Interaction – An Interview with Prof. Kathrin Dörfler
September 21, 2020 —
Aarni Heiskanen - AEC BusinessWe sat down with Professor Kathrin Dörfler of the Technical University of Munich (TUM) in advance of WDBE 2020. We discussed the importance of innovation and how her research focuses on the need for practical and productive solutions when it comes to on-site support.
Digital and technical innovation plays an essential role in optimizing the modern built environment. Now leading the Augmented Fabrication Lab (AFAB) in TUM, Professor Kathrin Dörfler quickly saw the need for practical solutions early in her career.
The Importance of ‘Need’
“I’m originally an architect,” she says. “I studied digital art and architecture and my tendency to go toward digital fabrication came from this proximity to computational design and the need to use robots for fabrication. There was no other way to build the things you created in your virtual space without using machinery.”
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi