DOJ to Prosecute Philadelphia Roofing Company for Worker’s Death
June 17, 2015 —
Beverley BevenFlorez-CDJ STAFFWhile Construction Dive reported that it’s rare for the Department of Justice (DOJ) to prosecute employers for on-the-job deaths, the DOJ “plans to prosecute the owner of a Philadelphia roofing company for alleged crimes that the government claims led to the death of a construction worker.” According to Construction Dive, James J. McCullaugh, owner of James J. McCullagh Roofing Inc. has been accused of lying to US. Occupational Safety and Health Administration investigators “in an attempt to cover up his company’s failure to provide required fall protection for a man – Mark T. Smith – who died after falling 45 feet from a church roof in 2013. Two other workers said no fall protection was provided.”
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Do You Really Want Mandatory Arbitration in Your Construction Contract?
June 25, 2019 —
Christopher G. Hill - Construction Law MusingsIf you are in construction, you have likley run across (or even drafted) a dispute resolution provision into your construction contract. If you’ve been building for any length of time, you’ve read dispute resolution provisions containing mandatory arbitration clauses. These clauses can be found in the AIA documents and in many of the contracts that I review for my clients in my role as construction lawyer and counselor. More often than not, these arbitration clauses require arbitration (read “private court”) and refer to one of several sets of rules, though most likely the American Arbitration Association (“AAA”) Construction Industry rules. In Virginia, as in most of the United States, these clauses are read liberally and enforced by courts except in limited cases such as waiver.
The main justification for requiring arbitration over litigation is to avoid the fees and expense of the litigation process. In the right circumstances, arbitration does just that. With a carefully drafted arbitration clauses and with the right case that requires expertise in construction that a judge does not have (they have to liten to all manner of disputes so are necessarily generalists), arbitration can and should be a streamlined and less expensive version of litigation.
However, in my time as a construction attorney, I have more often run into situations where the arbitration process is at least equally expensive and frankly not much more streamlined. The additional administrative burden coupled with the possibility of paying for at least half of the hourly charges of one to three arbitrators is often not worth the additional expertise of those arbitrators. Many construction claims simply come down to non-payment and whether the work was performed properly. In my opinion, the fine judges in the Commonwealth of Virginia are more than capable of hearing this evidence and making a ruling.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
New Mexico Holds One-Sided Dispute Resolution Provisions Are Unenforceable
November 05, 2024 —
Bill Wilson - Construction Law ZoneDispute resolution provisions that grant one party the unilateral right to choose either litigation or arbitration to resolve disputes are common in the construction industry. The main difference between the two forums is that courts are more likely to strictly enforce contract terms as written as well as the applicable law, while arbitrators make decisions on more equitable considerations, untethered to the contract terms and—to some degree—the law. The party with the sole discretion to select the dispute resolution procedure can select the process most beneficial to its interests based on the nature of the dispute, regardless of who brings the claims. In Atlas Electrical Construction, Inc. v. Flintco, LLC, 550 P.3d 881 (N.M. Ct. App. 2024), the Court of Appeals of New Mexico recently held that an arbitration provision in a subcontract, under which the contractor retained the exclusive right to choose whether disputes arising under the subcontract were litigated in court or arbitrated was unreasonably one-sided, substantively unconscionable, and unenforceable.
The Atlas Electrical case involved two sophisticated entities with equal bargaining strength to negotiate the terms of a subcontract. The parties agreed to a subcontract provision which provided in the relevant part:
In the event [contractor] and [subcontractor] cannot resolve the dispute through direct discussions or mediation … then the dispute shall, at the sole discretion of [contractor], be decided either by submission to (a) arbitration … or (b) litigation …
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Bill Wilson, Robinson & Cole LLPMr. Wilson may be contacted at
wwilson@rc.com
APROPLAN and GenieBelt Merge, Creating “LetsBuild” – the Build Phase End-to-End Digital Platform
March 18, 2019 —
Aarni Heiskanen - AEC BusinessResponding to a rising need to deliver an all-in-one solution, supporting on-site planning, progress communication, snagging, drawings and checklists, GenieBelt and APROPLAN have decided to merge to form LetsBuild – the European leader in delivering an end-to-end solution to the global construction industry.
For the past five years, GenieBelt CEO Klaus Nyengaard and APROPLAN CEO Thomas Goubau have met on a regular basis to discuss developments in the construction technology sector and how to increase efficiency and minimise rework, miscommunication, and errors.
“We share the vision that ‘simple to use’-products will bring immense value to the construction sector. When we met in October 2018, we concluded that the way to realize this vision was to unite our companies to create a broader product and cover more needs in the market,” says LetsBuild CEO Klaus Nyengaard.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Bridges Need More Attention
July 31, 2023 —
Christoph Klauser - Construction ExecutiveSince it became possible to calculate the specific design-build needs of bridges with increasing accuracy in the 19th century, and new materials—beginning with cast iron and steel, followed by reinforced and prestressed concretes—also became available to build them, the number of bridges constructed all over the world has increased. It is evident today that many of these bridges have aged considerably, conditions which often lead to collapse despite regular inspections and repairs. The Fern Hollow Bridge in Pittsburgh, an approximately 440-foot-long, three-span steel bridge over a forest ravine, collapsed in January 2022. Fortunately, no fatalities occurred, although several vehicles, including a bus, were involved in the collapse.
How can accidents of this nature be avoided, and which technologies are available to protect bridges more effectively? Bridges all over the world can be efficiently monitored with weigh in motion (WIM) and structural health monitoring (SHM), extending their service life and, in a worst-case scenario, preventing their collapse.
Reprinted courtesy of
Christoph Klauser, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Sacramento’s Commercial Construction Market Heats Up
September 10, 2014 —
Garret Murai – California Construction Law BlogOne reason I changed law firms from the Bay Area to Sacramento was I felt that Sacramento’s construction market, which was one of the areas hardest hit in California following the Real Estate Bubble Burst, was poised for a comeback.
And as with past real estate cycles, residential construction has led the growth, and is now being followed by commercial construction. Indeed, according to data compiled by Engineering News-Record, commercial and institutional projects are propelling Sacramento’s construction market[.]
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Garret Murai, Kronick Moskovitz Tiedemann & GirardMr. Murai may be contacted at
gmurai@kmtg.com
Not Our Territory: 11th Circuit Dismisses Hurricane Damage Appraisal Order for Lack of Jurisdiction
July 24, 2023 —
Veronica P. Adams & Koorosh Talieh - Hunton Insurance Recovery BlogThe hurdles policyholders have faced with the appraisal process in Florida are far from over. In the past, many Florida courts have limited the scope for appraisal, strictly construing the policy provision against the policyholder. Yet, recently, in
Positano Place at Naples I Condominium Association, Inc., et al. v. Empire Indemnity Insurance Company, the Eleventh Circuit dismissed an insurer’s appeal of the district court’s ruling compelling appraisal and a stay of a pending litigation.
In Positano Place at Naples I Condominium Association, Inc., et al. v. Empire Indemnity Insurance Company, the policyholder Positano filed a claim for property insurance benefits under the policy as a result of damage to the property from Hurricane Irma in 2017. After investigating the claim, Empire found that there was damage to only three of the five properties covered under the policy and disputed the amount of loss.
Reprinted courtesy of
Veronica P. Adams, Hunton Andrews Kurth and
Koorosh Talieh, Hunton Andrews Kurth
Ms. Adams may be contacted at vadams@HuntonAK.com
Mr. Talieh may be contacted at ktalieh@HuntonAK.com
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Summary Judgment in Construction Defect Case Cannot Be Overturned While Facts Are Still in Contention in Related Cases
September 09, 2011 —
CDJ STAFFThe Alabama Court of Civil Appeals has dismissed an appeal of a summary judgment in the case Bella Investments, Inc. v. Multi Family Services, Inc. MFS was hired by Bella to be the general contractor for a hotel in Gardendale, Alabama. MFS hired various subcontractors, including the architect for the project. After completion of the hotel in April, 2006, Bella made requests for MFS to repair cracked floor tiles.
In August, 2008, Bella sued MFS, the architect, and various fictitiously named defendants. Subsequently, Bella amended its complaint, naming some of the fictitiously named defendants.
MFS in turn claimed that Bella’s claims were void under the statute of limitations and that Bella was in beach of contact by failing to pay MFS the full amount owed. MFS moved for summary judgment under the statute of limitations, which was granted by the court.
Bella requested that the court “alter, amend, or vacate its summary judgment order.” When this was denied, Bella appealed to the Alabama Supreme Court, which transferred the appeal to the Court of Civil Appeals. The Court of Appeals refused to vacate the summary judgment as claims that form part of the case against MFS are also part of Bella’s claims against the other defendants. For this reason, the court upheld the summary judgment.
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