Court of Appeals Finds Arbitration Provision Incorporated by Reference Unenforceable
September 20, 2021 —
Garret Murai - California Construction Law BlogSubcontractors have gotten accustomed to incorporation clauses in their contracts. While an incorporation clause can incorporate any document, most typically, it’s the prime contract between the general contractor and the project owner. Subcontractors will sometimes even accept these documents sight unseen which can be a recipe for disaster. But not in the next case.
In Remedial Construction Services, LP v. AECOM, Inc., Case No. B303797 (June 15, 2021), the 2nd District Court of Appeal examined whether a subcontractor was bound to an arbitration provision contained in a prime contract that was incorporated by reference into the subcontractor’s contract. In this case, it was the prime contractor who was in for a surprise.
The Remedial Construction Case
In 2015, Shell Oil Products US, LLC entered into a prime contract with AECOM Technical Services, Inc. for the demolition, remediation and restoration of the Gaviota oil terminal in Goleta, California. AECOM in turn entered into a subcontract with Remedial Construction Services, LP to perform portions of the work. When AECOM refused to pay Remedial for delay costs asserted by Remedial, Remedial filed suit.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Injured Subcontractor Employee Asserts Premise Liability Claim Against General Contractor
March 22, 2021 —
David Adelstein - Florida Construction Legal UpdatesIn an interesting opinion, an injured employee of an electrical subcontractor sued the general contractor of a parking garage project under a premise liability theory after being injured when stepping on an uncovered floor drain at the project site. There is no discussion in the opinion as to workers compensation immunity. Rather, the discussion centers on the injured employee’s premise liability claim as to whether the general contractor “breached its duty to maintain the premises in a reasonably safe condition by leaving the drain uncovered and failing to warn of the danger of the uncovered drain.” Pratus v. Marzucco’s Construction & Coatings, Inc., 46 Fla.L.Weekly D186a (Fla. 2d DCA 2021)
The trial court granted summary judgment in favor of the general contractor finding that the drain was open and obvious on the site. The Second District Court of Appeal reversed the summary judgment with a discussion as to premise liability claims, particularly as it pertains to a business invitee, which is what the injured employee of the electrical subcontractor was.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Here's Proof Homebuilders are Betting on a Pickup in the Housing Market
April 15, 2015 —
Victoria Stilwell – BloombergHomebuilders have caught spring fever.
Confidence among U.S. builders, measured by the National Association of Home Builders/Wells Fargo sentiment gauge, increased in April for the first time in five months. The group's measure of the sales outlook for the next six months climbed to the highest level since December, while a gauge of prospective buyer traffic also rose.
With the housing market posting only middling progress in recent months, the fact that construction companies are optimistic is a good sign, especially heading into the crucial spring-selling season. The period usually starts in mid-February, with deals picking up the following months as the weather warms.
What's more encouraging, though, is that builders seem to be putting money where their mouths are.
Read the court decisionRead the full story...Reprinted courtesy of
Victoria Stilwell, Bloomberg
CDJ’s Year-End Review: The Top 10 CD Topics of 2014
December 31, 2014 —
Beverley BevenFlorez-CDJ STAFFConstruction Defect Journal’s year-end review presents the top ten most popular topics featured in the journal in 2014. Some of the topics involved analysis of important construction defect cases, while others covered current events such as proposed state legislation. Most issues were heavily discussed on CDJ as well as in board rooms and during teleconferences. We hope you enjoy the look-back at 2014 interspersed throughout the issue, and we wish you and yours a prosperous 2015!
CDJ’s #1 Topic of the Year: Indalex Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA, 2013 Pa. Super 311 (Dec. 3, 2013)
According to Darrin J. McMullen of Anderson Kill, “[t]he Indalex decision reverses a nearly decade-long trend of Pennsylvania decisions narrowing the scope of insurance coverage for construction and defect-related claims under commercial general liability insurance policies. Equally important, the Indalex ruling dealt a blow to the insurance industry’s continual efforts to win overbroad expansion of the rulings in Kvaerner Metals Div. of Kvaerner U.S., Inc. v. Commercial Union Ins. Co., Millers Capital Ins. Co. v. Gambone Bros. Dev. Co., and Erie Ins. Exchange v. Abbott Furnace Co., which found that claims of faulty workmanship in some circumstances may not constitute coverage-triggering ‘occurrences.’”
Read the court decisionRead the full story...Reprinted courtesy of
Hospital Inspection to Include Check for Construction Defects
October 08, 2013 —
CDJ STAFFThe Temecula Valley Hospital is almost ready to be opened. One last step is an inspection from the California Department of Public Health’s Licensing and Certification Division. The inspection will take place over three to five days and will include not only building defects, but will also seek to identify problems that could compromise patient care. Any problems identified by the inspectors will have to be remedied before the hospital can open.
Darlene Wetton, the CEO/president of the hospital said that the hospital worked with both the state and contractors to assure that the construction met the state standards. Currently, the city of Temecula does not have a hospital.
Read the court decisionRead the full story...Reprinted courtesy of
Legislation Update: S-865 Public-Private Partnerships in New Jersey Passed by Both Houses-Awaiting Governor’s Signature
July 02, 2018 —
Steven M. Charney & Charles F. Kenny - Peckar & Abramson, P.C.New Jersey is finally close to being among the many states with broad authority to develop or improve public projects through a Public-Private Partnership (P3) delivery method. This contracting model has stimulated growth and improvements in other States and led to the delivery of projects that may not otherwise have happened. Senate Bill 865 (“S-865”), after undergoing some last-minute amendments in a frenzied legislature dealing with budget and other critical issues, has passed in both houses of the Legislature and is waiting for Governor Murphy’s signature, which is expected shortly. The law will be effective 180 days from formal enactment. The administrative framework is now in place to make Public-Private Partnerships a reality in New Jersey.
Reprinted courtesy of
Steven M. Charney, Peckar & Abramson, P.C. and
Charles F. Kenny, Peckar & Abramson, P.C.
Mr. Charney may be contacted at scharney@pecklaw.com
Mr. Kenny may be contacted at ckenny@pecklaw.com
Read the court decisionRead the full story...Reprinted courtesy of
Beyond the Disneyland Resort: World Class Shopping Experiences
May 03, 2018 —
Beverley BevenFlorez-CDJ STAFFIf you don’t want to venture far from the Disneyland Resort, consider heading to
the Outlets at Orange. Formerly known as the Block of Orange, this open air shopping center features outlet stores such as Neiman Marcus Last Call, Nordstrom Rack, and Sax Fifth Avenue’s Off Fifth, as well as an AMC movie theater, restaurants, Lucky Strike Bowling Alley, and Dave and Buster’s.
For another local option, head to
the Brea Mall, where you can find department stores such as Macy’s and Nordstrom’s and a host of other stores like Apple, Guess, and Tommy Bahama.
For a more exclusive shopping experience, travel to south Orange County's
Fashion Island of Newport Beach. Their department stores include Bloomingdale’s, Macy’s, Neiman Marcus’s, and Nordstroms, and the shopping center also contains many boutique shops and eateries.
Read the court decisionRead the full story...Reprinted courtesy of
Civil RICO Case Against Johnny Doc Is Challenging
October 20, 2016 —
Wally Zimolong – Supplemental ConditionsNews that a non-union contractor had filed a Lawsuit against IBEW Local 98 and its leader, John Dougherty, made headlines this week. While making fodder for local media, the plaintiffs must bound several legal hurdles before IBEW Local 98 and “Johnny Doc” face any threat of liability.
Background on RICO
The lawsuit was filed under a set of laws known as the Racketeer Influenced and Corrupt Organizations Act (RICO). I have written about RICO’s impact on labor unions on this blog before and predicted that recent federal court cases made RICO claims against more viable. RICO is a Nixon era set of laws that were originally passed to combat organized crime. There is both a civil and criminal component to RICO. (Interestingly, the RICO act remained relatively dormant until then U.S. Attorney Rudy Giuliani began effectively using it to prosecute the mob in the 1980’s.) Although recent decisions have made RICO claims against unions more viable, any RICO claim is still challenging. Indeed, some courts require a plaintiff in civil RICO cases to file a separate RICO case statement detailing its allegations. RICO claims are powerful. Some have called RICO claims a “thermonuclear” litigation device because the law permits the award of trebel (triple) damages and attorneys fees.
Read the court decisionRead the full story...Reprinted courtesy of
Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com