Should I Stay or Should I Go? The Supreme Court Says “Stay”
June 10, 2024 —
Brendan J. Witry - The Dispute ResolverIn the construction industry, arbitration is a frequently agreed-upon and utilized dispute resolution method. The Federal Arbitration Act (the “FAA”), 9 U.S.C. 1, et seq., provides the underpinning and framework for how courts should handle litigation in connection with arbitration agreements. Where a party asserts that a claim brought in court should be subject to arbitration, Section 3 of the FAA provides that the action should be stayed. However, some courts have entertained a party’s request to dismiss a suit where the claim is subject to an arbitration agreement, creating a circuit split in the federal appeals courts. In
Smith v. Spizzirri, 2024 WL 2193872, issued on May 16, 2024, the Supreme Court held that, absent some other defect (such as the lack of personal or subject matter jurisdiction), Section 3 of the FAA requires a court which finds a claim is subject to an arbitration must stay the lawsuit during the arbitration proceedings rather than dismissing the action.[1] In so doing, the Court addressed a question that for years it left unanswered.
While most Circuits held, prior to Smith, that Section 3 requires a court to stay the litigation pending an arbitral award; the First, Fifth, Eighth, and Ninth Circuits each held that a court could dismiss an action in lieu of staying.
In Smith, both parties acknowledged the underlying claims were arbitrable, but when the district court compelled arbitration, the court dismissed the action rather than staying the court proceedings. The Ninth Circuit (relying on its prior precedent) affirmed, with two judges noting that the Ninth Circuit’s approach was incorrect. The Supreme Court granted certiorari and reversed.
Read the court decisionRead the full story...Reprinted courtesy of
Brendan J. Witry, Laurie & Brennan LLPMr. Witry may be contacted at
bwitry@lauriebrennan.com
Ahlers Cressman & Sleight PLLC Recognized Among The Top 50 Construction Law Firms TM of 2024 by Construction Executive
July 15, 2024 —
Ahlers Cressman & Sleight PLLCACS is proud to announce that it has once again been ranked among The Top 50 Construction Law Firms in the Construction Executive 2023 rankings.
Since its first publication in 2003, Construction Executive magazine has served as the leading source for news, market developments, and business issues impacting the construction industry, and its articles are designed to help owners and top managers run a more profitable and productive construction business.
Construction Executive established the rankings by asking over 600 hundred U.S. construction law firms to complete a survey. Constructive Executive’s data collection includes: 2023 revenues from the firm’s construction practice, the number of attorneys in the firm’s construction practice, percentage of the firm’s total revenues derived from its construction practice, the number of states in which the firm is licensed to practice, the year in which the construction practice was established, and the number of construction industry clients served during the fiscal year 2023.
Read the court decisionRead the full story...Reprinted courtesy of
Ahlers Cressman & Sleight PLLC
Wendel Rosen’s Construction Practice Group Receives First Tier Ranking by U.S. News and World Reports
December 02, 2015 —
Garret Murai – California Construction Law BlogOk, it may not be an Oscar, or even an Emmy, but we’re humbled and honoured just the same.
Wendel Rosen’s Construction Practice Group has received a first-tier ranking by the U.S. News and World Reports in its 2016 Best Law Firms rankings. This is the third year in a row that the firm’s Construction Practice Group has received this honor. Joining it on stage is the firm’s Real Estate, Bankruptcy, and Real Estate Litigation practices which also received first-tier rankings and the firm’s Land Use practice which received a second-tier ranking.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Construction Litigation Roundup: “Tender Is the Fight”
August 21, 2023 —
Daniel Lund III - LexologyA performance bond surety for a defaulted general contractor principal found itself with a recalcitrant owner which refused to accept the tender of a replacement general contractor to complete a $3,000,000 construction project in Monmouth County, New Jersey.
Even before the original GC was off the job, the surety – having been notified of the contractor’s difficulties in performing the work – stepped in promptly, providing assistance in the form of an additional contractor. At the surety’s behest, that additional contractor remained on the project (focused principally at the time on roof repairs) after the initial GC was placed in default and terminated.
Eventually, the surety, by draft tender agreement issued to the owner, offered that the additional contractor serve as the completion contractor for the entire project (not simply the roof repairs), a proposal rejected by the owner – which had never cared for the additional contractor. Instead, the owner proposed its own completion contractor and, in connection with that offer, demanded a sum of money ($1.6 million) from the surety – a proposal the surety rejected: “[Owner] cannot choose whatever contractor it wants to complete the work and then charge the costs to [the surety]."
Read the court decisionRead the full story...Reprinted courtesy of
Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Three Recent Cases Strike Down Liquidated Damages Clauses In Settlement Agreements…A Trend Or An Aberration?
November 01, 2021 —
Adam M. Tuckman - ConsensusDocsBeginning more than one century ago, owners and contractors generally have adopted the convention of including liquidated damages in their contracts to fix potential liability for delay (and other losses) at the inception of the project. The proliferation of liquidated damages clauses in modern contracts can be attributed to economic and legal factors. From the owner’s standpoint, it may be exceedingly difficult to prove the actual cost impact of a delayed completion of the project. A properly calculated liquidated damages rate would save the owner the significant expense of quantifying its delay damages. On the contractor’s side, a reasonable amount of liquidated damages may be preferable to uncapped or unknown liability, allowing the contractor to more accurately price its bid and efficiently allocate risk.
Coinciding with, or perhaps a leading cause of, the industry’s embrace of liquidated damages provisions, was the shift in courts throughout the country from disfavoring such clauses to accepting them (within limits) as an appropriate exercise of contract rights. While some variation exists among the states, courts have generally recognized that liquidated damages clauses are a viable alternative to proof of actual loss so long as (i) actual losses were difficult to quantify, and (ii) the stipulated sum bears a reasonable relationship to the anticipated loss at the time of contracting. See, e.g., Restatement (Second) of Contracts § 356. Conversely, a clause that penalizes the breaching party rather than serving as an estimate of probable loss is likely to be found unenforceable.
Read the court decisionRead the full story...Reprinted courtesy of
Adam M. Tuckman, Watt, Tieder, Hoffar, & Fitzgerald, LLPMr. Tuckman may be contacted at
atuckman@watttieder.com
San Francisco Museum Nears $610 Million Fundraising Goal
June 26, 2014 —
Dan Levy – BloombergThe biggest museum fundraising campaign in San Francisco history is nearing its $610 million goal two years before the opening of a new wing that will more than double the space for artworks by Andy Warhol, Mark Rothko and David Hockney.
About $570 million, or 94 percent, has been raised by the San Francisco Museum of Modern Art for its 235,000-square-foot (21,800-square-meter) expansion and to add $245 million to the museum’s endowment. The $305 million wing designed by the Snohetta architecture firm is rising behind SFMOMA’s current home, opened two decades ago in the technology-heavy South of Market area, or SOMA.
“In 1995, we were the pioneers when SOMA was pretty run-down, and the tech boom followed us,” Neal Benezra, the museum’s director, said June 20 in a presentation at Bloomberg LP’s San Francisco offices. “Our expansion will solidify the neighborhood as a cultural hub.”
Read the court decisionRead the full story...Reprinted courtesy of
Dan Levy, BloombergMr. Levy may be contacted at
dlevy13@bloomberg.net
Gibbs Giden is Pleased to Announce Four New Partners and Two New Associates
January 08, 2024 —
Gibbs Giden Locher Turner Senet & Wittbrodt, LLPWe take great pleasure in announcing that
Richard Marks and
Kyle Marks have joined the firm. They bring a combined 60 years of real property law experience to Gibbs Giden. Well known Title Insurance and seasoned real estate attorneys they have both served as chair of the Title Insurance Subsection of the Los Angeles County Bar Association and are adjunct professors at Southwestern University School of Law. We are excited to welcome these two exceptional partners and their commitment to representing clients with honesty, integrity, and excellence. You can find them in our firm’s Westlake office.
Talented attorneys
Samantha Riggen and
Christopher Trembley have been named partners. Samantha represents clients in all areas of business and commercial matters with an emphasis on construction litigation on both public and private projects. Christopher’s practice also focuses on construction litigation on behalf of a wide spectrum of industry-stakeholder clients, including suppliers, contractors, and owners. Both work in our firm’s Westlake Village office.
We are also pleased to announce we’ve hired two new associates.
Sarah La Mendola and
Madison Wedderspoon. Sarah has developed an expertise in a wide range of real estate, business, and corporate matters. She received her JD from the University of Pavia, one of the top universities in Italy, in 2012 and her LLM from UCLA in 2015. You can find Sarah in our Westlake Village office. Madison recently graduated from the Boyd School of Law cum laude, is based in our Las Vegas office and works in the areas of business law, contracts, healthcare law, construction, real estate, and common interest community transactional and litigation work.
Read the court decisionRead the full story...Reprinted courtesy of
Gibbs Giden
Timely Written Notice to Insurer and Cooperating with Insurer
June 21, 2017 —
David Adelstein - Florida Construction Legal UpdatesI harp on notifying a liability insurer in writing once a claim is asserted against you. As soon as possible. I harp on this because as an insured you want to remove any doubt or argument that the insurer was prejudiced due to a lack of timely notice.
In a recent opinion, Zurich American Insurance Co. v. European Tile and Floors, Inc., 2017 WL 2427172 (M.D.Fla. 2017), the insurer moved for summary judgment in a coverage action arguing that its insured failed to provide it timely written notice. Specifically, the insurer argued that the insured violated the clause in the liability policy that states:
2. Duties in the Event of Occurrence, Offense, Claim or Suit
b. If a claim is made or “suit” is brought against any insured, you must:
- Immediately record the specifics of the claim or “suit” and the date received; and
- Notify us as soon as practicable.
You must see to it that we receive written notice of the claim or “suit” as soon as practicable.
c. You and any other insured must:
- Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the claim or “suit”;
- Authorize us to obtain records and other information;
- Cooperate with us in the investigation, settlement or defense of the claim or “suit”; and
- Assist us, upon our request, in the enforcement of any right against any person or organization which may be liable to the insured because of injury or damage to which this insurance may also apply.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com