Breaking with Tradition, The Current NLRB is on a Rulemaking Tear: Election Procedures, Recognition Bar, and 9(a) Collective Bargaining Relationships
September 09, 2019 —
Keahn Morris, John Bolesta & James Hays - Construction and Infrastructure Law BlogIn its 84-year history, the National Labor Relations Board (NLRB, Board or Agency) has promulgated a very small number of rules pursuant to the Administrative Procedures Act, relying, instead, on individualized adjudications to establish the Board’s legislative policies. However, breaking with that long tradition, the current Board now appears to be on the verge of a formal rulemaking jag for on May 22, the Board released its “Unified Agenda” of anticipated regulatory actions which, in addition to proceeding with rulemaking regarding joint employer standards, announced the Board’s intention to consider formal rulemaking in a number of critical areas. Consistent with that wide-ranging Agenda, on August 12, the Board published a Notice of Proposed Rulemaking (NPRM) over the objection of Democratic appointee, Lauren McFerran, that would amend the Agency’s rules and regulations governing the filing and processing of election petitions in three very important ways. This NPRM, therefore, deserves attention.
The first possible amendment will modify the Board’s administrative election blocking charge practice by establishing a regulation-based vote and impound procedure to be used when a party, typically a union facing possible decertification, files an unfair labor practice (ULP) charge and, based thereon, seeks to block the holding of an election.
The second possible amendment will modify the Board’s current recognition bar case law by codifying prior Board case doctrine and creating a regulation-based requirement of notice of voluntary recognition to affected employees and a 45-day open period within which affected employees may call for an election before that voluntary recognition will be allowed to operate as a bar to employees raising later questions concerning the union’s representative status (QCR).
Reprinted courtesy of Sheppard Mullin attorneys
Keahn Morris,
John Bolesta and
James Hays
Mr. Morris may be contacted at kmorris@sheppardmullin.com
Mr. Bolesta may be contacted at jbolesta@sheppardmullin.com
Mr. Hays may be contacted at jhays@sheppardmullin.com
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Rebuilding the West: Construction Considerations After the Smoke Clears
December 21, 2020 —
Richard Glucksman & Ravi Mehta – Chapman Glucksman Dean & RoebWildfires have always been a part of life in the western United States, but, in recent years, the frequency and size of wildfires have become staggering. Oregon, Washington, and—in particular—California face drier conditions, making wildfire season longer and more intense.
In these states, among others, prescribed burns (designed to reduce wildfire ignition sources and spreading potential) have been limited or cancelled altogether as the air pollution emitted by these burns may worsen the impact of COVID-19, a respiratory illness in its essence, as noted recently by
Science magazine. These circumstances, further compounded by the severe shortage of housing, have created a “perfect storm” in California, which has seen new and denser construction deeper within wildfire-prone areas, prompting a number of key legislative proposals that will impact the rebuilding process after the smoke clears.
The infamous 2018 Camp Fire in northern California made international headlines for decimating the town of Paradise. While the cause of the Camp Fire was determined to be faulty electrical transmission equipment, unusually dry conditions allowed the fire to spread to just over 150,000 acres, and the fire took 17 days to contain.
Then, five of the 20 largest wildfires in California history occurred during the 2020 wildfire season, according to the California Department of Forestry and Fire Protection (Cal Fire). The Camp Fire was eclipsed by the August 2020 Complex Fire, which is the largest wildfire ever recorded in the state, growing to just over one million acres in size until it was finally contained on Nov. 15.
Legislative Response
The Camp Fire and other 2018 wildfires displaced hundreds of thousands of people from their homes throughout California. The unprecedented scale of both the 2018 and the 2020 wildfire seasons in California has spurred legislators in Sacramento to draft a number of important bills that will undoubtedly impact rebuilding efforts.
California AB 38 was prompted by the 2018 California wildfire season and was signed into law by Gov. Gavin Newsom in October 2019. It requires the state fire marshal, the Office of Emergency Services, and Cal Fire to work together to develop and administer a comprehensive wildfire mitigation program, including "cost-effective structure hardening and retrofitting to create fire-resistant homes, businesses, and public buildings."
Unfortunately, the well-intentioned program has yet to be funded, and may be relying on federal hazard funds from the Federal Emergency Management Agency at a future date. In light of the crippling economic impact of the COVID-19 pandemic, federal funding is likely the only viable source for this important item of legislation.
California SB 182 would enact new building regulations in high fire-risk areas (as determined by the state fire marshal), including new standards for fire-resistive construction, evacuation routes, defensible space, and available water and firefighting resources. It would also prohibit municipalities from approving new construction in high fire-risk areas unless wildfire reduction standards are satisfied. In effect, the bill would discourage new construction in high fire-risk areas.
After passing through both legislative houses, Newsom vetoed the bill, citing its negative impact on the state's strained supply of affordable housing. However, the bill is likely to be revisited in the 2020-2021 legislative session.
California AB 1516 is a comprehensive bill that would:
- Create new defensible-space requirements for both new and existing construction in high fire-risk areas.
- Create a grant-assistance program for fire-prevention education, inspections, and technical assistance.
- Direct Cal Fire to develop vegetation management recommendations to minimize flammability.
Additionally, the bill would allow insurers providing course of construction coverage for a project to request, from the owner, municipal certification that the structure to be built complies with existing and new building standards. Newsom vetoed this bill, cautioning that a "one size fits all" approach to wildfire management may not be appropriate, given that each individual community's needs differ.
California AB 2380 focuses on the development of standards and regulations for a relatively new and growing phenomenon: the rising use of private firefighting personnel, particularly by wealthy homeowners. Several prominent and well-known carriers offer homeowners-insurance policies that provide for private firefighting personnel, as well as preventative services (wildfire hazard inspections and clearing defensible space), and expected post-incident services (clean up and removal of fire retardant and similar substances).
AB 2380 was signed into law by Newsom at the tail end of the 2018 wildfire season, and it now requires Cal Fire, the governor's Office of Emergency Services, and the board of directors of the FIRESCOPE Program (designed to coordinate firefighting resources among different agencies) to develop standards and regulations for privately contracted fire fighters.
Housing Shortage and New Construction
These legislative efforts are underscored by the worsening housing crisis, which has both strained existing supply and increasingly pushed new construction into areas known as the Wildland Urban Interface (WUI).
WUI areas are designated as either "interface" or "intermix:” Interface WUI areas have little to no wildland vegetation, but are near large wildlands. By contrast, in intermix WUI areas, structures are mixed with wildland vegetation.
A recent study by the U.S. Forest Service found that, as expected, WUI areas are the hardest hit by wildfires. However, the study also found that, contrary to popular belief, wildfires cause greater damage in interface WUI areas than intermix WUI areas- in other words, wildfire damage is greatest where there is little to no wildland vegetation. The study concludes that wildfires in WUI areas are fueled more by human-made fuels as opposed to natural vegetation. These human-made fuels include building materials and landscaping.
It may not come as a surprise that a growing body of scientific literature has ascribed more severe and frequent wildfires to climate change. However, what may be less appreciated is the profound impact of building in the WUI. By 2050, an estimated one million new homes are projected to be built in California WUI areas.
In light of this, as well as the recognition that wildfire risk is determined, in large part, by construction standards and the fire resistivity of materials as opposed to natural vegetation, California has developed a special building code for WUI areas: Chapter 7A of the California Building Code- Materials and Construction Methods for Exterior Wildfire Exposure. California is one of the few states to have a unique building code for WUI areas, and, in light of the recent wildfires, California officials are developing stricter WUI building standards.
The constituents of State Sen. Bill Dodd in Napa County and surrounding areas have faced some of the state's most devastating wildfires. Dodd is at the forefront of significant fire-related legislation, and was responsible for the passage of the Insurance Adjuster Act of 2019, which sets regulations for insurance-claim adjusting in emergencies.
Dodd also spearheaded the passage of SB 190, which was enacted in late 2019. The law requires, among other things, the state fire marshal to develop suitable materials and products for building in WUI areas with respect to exterior wall siding and sheathing, exterior windows, doors and skylights, vents, decking, treated lumber and ignition-resistant materials, and roofing materials. The state fire marshal's office found that roofing material is among the most important factors in a structure's fire resistivity, and slate, metal, and tile roofs have the highest fire resistance rating of "A:”
As of July 1, 2021, wood-shake roofs will no longer be allowed by the California Fire Code. The state fire marshal also cites non-combustible siding as an important building element.
Wildfire-Resistant Construction
A recent study prepared by Headwaters Economics and commissioned by the U.S. Forest Service, WR Foundation, and Insurance Institute for Business & Home Safety analyzed cost differentials between traditional construction and wildfire-resistive construction as they relate to the four most fire-critical assemblies of a structure: roofs, exterior walls (including windows and doors), decks, and landscaping. Wildfire-resistant roofing, vents, fascia, and gutters were estimated to cost about 27 percent more than traditional components. However, the wildfire-resistant roofing materials feature lower maintenance requirements and longer lifespans.
Wildfire-resistant exterior walls were estimated to cost 25 percent less than traditional components, due in large part to the substitution of true wood siding with fiber cement siding.
Wildfire-resistant decking involves the use of composite boards, foil-faced bitumen tape on support joists, and the creation of non-combustible space beneath decking. This type of construction was estimated to cost approximately 19 percent more than traditional decking construction. Wildfire-resistant landscaping has the most significant cost difference as compared to traditional landscaping construction, with the former costing about double the latter. Landscaping fabric can minimize the growth of weeds and thus reduce fire hazard, as does the use of rocks instead of mulch.
While certain components of fire-resistant construction may have increased costs, the benefits far outweigh these increases: longer life cycles and less maintenance of the components, and, most importantly, greatly increased fire resistivity of the structure itself and thus its life cycle.
As construction in WUI areas is expected to grow substantially in the coming years, so too are fire-resistive construction standards and material requirements. These standards and requirements are part and parcel of a more comprehensive and deliberate set of land use planning, vegetation management, and emergency-response regulations and policies that California will develop by necessity to meet the growing demand for housing in WUI areas, and also to rein in the staggering costs of wildfire suppression. Thus, construction in WUI areas, and, to a lesser degree, in non WUI areas, will be subject to more exacting standards in the years to come.
As the science of wildfire prevention and suppression advances, so too will the technological innovations that will allow for safer, longer-lasting and ecologically sensitive construction. As in many other fields, California is expected to emerge as a leader in wildfire resistant building and material requirements, and will undoubtedly play a key role in shaping fire policy throughout the United States.
Richard Glucksman is a partner, and Ravi Mehta is senior counsel, at Chapman Glucksman Dean & Roeb. rglucksman@cgdrlaw.com; rmehta@cgdrlaw.com
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Alabama “occurrence” and subcontractor work exception to the “your completed work” exclusion
November 18, 2011 —
CDCoverage.comIn Town & Country Property, LLC v. Amerisure Ins. Co., No. 1100009 (Ala. Oct. 21, 2010), property owner Town & Country contracted with insured general contractor Jones-Williams for the construction of a car dealership. All of the construction work was performed by Jones-Williams subcontractors. After completion, Town & Country sued Jones-Williams for defective construction. Jones-Williams’ CGL insurer Amerisure defended. The case was tried and a judgment was entered against Jones-Williams in favor of Town & Country. After Amerisure denied any obligation to pay the judgment, Town & Country sued Amerisure in a statutory direct action.
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Reprinted courtesy of CDCoverage.com.
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Massachusetts Federal Court Rejects Adria Towers, Finds Construction Defects Not an “Occurrence”
July 03, 2022 —
Eric B. Hermanson & Austin D. Moody - White and WilliamsIn an important ruling for insurers, U.S. District Court Judge Patti Saris found that Massachusetts does not follow the position taken in Cypress Point Condo Association v. Adria Towers, LLC, 226 N.J. 403, 418 (2016), i.e., it does not hold that "faulty workmanship claims [should be recognized] as ... an 'occurrence,' thus triggering coverage, 'so long as the allegedly defective work [was] performed by a subcontractor rather than the policyholder itself."
[1]
Instead, Judge Saris reaffirmed earlier Massachusetts authority holding faulty work is not an "occurrence" for coverage purposes,
[2] and found this authority applied whether or not the work in question was subcontracted.
In the alternative, Judge Saris found, even if a contractor's faulty work could be deemed an an "occurrence," such work did not constitute covered "property damage," because none of the alleged damage was "outside the scope of the work that Tocci was contractually required to fulfill as general contractor."
[3]
Reprinted courtesy of
Eric B. Hermanson, White and Williams and
Austin D. Moody, White and Williams
Mr. Hermanson may be contacted at hermansone@whiteandwilliams.com
Mr. Moody may be contacted at moodya@whiteandwilliams.com
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Three Attorneys Elevated to Partner at Newmeyer & Dillion, LLP
February 26, 2016 —
Newmeyer & Dillion, LLPNewmeyer & Dillion, LLP, a premier business and real estate law firm in California and Nevada, is pleased to announce the promotion of three of its attorneys to partnership.
“Clay Tanaka, Eric Rollins, and Jonathan King have proven their ability to provide the highest quality legal services to our clients while embracing the core values of the Firm which make it unique,” said Jeff Dennis, managing partner of Newmeyer & Dillion. “We are proud to welcome them as our new partners.”
The new partners share extensive legal and trial experience, demonstrating quick and creative solutions for their clients.
Newport Beach
Clayton Tanaka
Clay Tanaka is an experienced trial lawyer practicing in both California and Nevada, focusing on construction, real estate, business, insurance disputes and appellate law. As a licensed civil engineer in California, Clay has extensive knowledge of construction practices as well as vast experience in the designs of both residential subdivisions and commercial developments. He has represented developers and general contractors in numerous complex real estate and construction matters through trial, including disputes involving grading, design, boundary and easement disputes, water intrusion and insurance coverage issues. Clay has also represented a variety of businesses in actions involving breach of contract, fraud, and copyright and trademark infringements. He is also fluent in Japanese.
Eric Rollins
Eric Rollins’ practice focuses on the litigation and arbitration covering a broad range of business, real estate, construction, insurance, and land use disputes. Within the construction arena, he regularly handles complex construction matters and insurance coverage issues arising out of construction claims for both residential and commercial builders. In his business and land practice, Eric has litigated a variety of claims in state and federal courts involving breach of contract, negligence, unfair business practices, fraud, business formation, eminent domain, and inverse condemnation. He has experience with all phases of business litigation, including arbitration, mediation, and trial preparation.
Walnut Creek
Jonathan King
Jonathan King’s practice focuses on the representation of developers, builders, and general contractors in construction litigation and has extensive experience defending personal injury allegations in industrial and construction settings. His business cases include litigation of intellectual property infringement, and general business litigation. Jonathan has successfully resolved and defended complex matters in both mediation and binding arbitration settings. Jonathan also obtains federal trademark protection and negotiates licensing agreements for clients.
About Newmeyer & Dillion LLP
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com.
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Delaware River Interstate Bridge Shut to Assess Truss Fracture
January 26, 2017 —
Justin Rice - Engineering News-RecordThe Delaware River Bridge, which runs between Pennsylvania and New Jersey, was shut down indefinitely over the Jan. 22-23 weekend, after a large fracture was discovered in the bridge that connects the turnpikes of the two states. The fracture on a steel truss below the bridge deck on the Pennsylvania side was discovered during a routine check as part of a painting operation. Steel plates were installed to temporarily reconnect the fracture and stabilize the 1.5-mile bridge, which is located in Bucks County on I-276 and accommodates 42,000 vehicles a day. As engineers assess how the damage will impact the entire bridge, a sample from the fractured truss was sent to a forensic lab to determine the cause of the crack. A high-definition video survey is being used to monitor the bridge.
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Justin Rice, ENRMr. Rice may be contacted at
ricej@enr.com
Patrick Haggerty Promoted to Counsel
May 24, 2021 —
Patrick Haggerty - White and Williams LLPWhite and Williams is pleased to announce the promotion of Patrick Haggerty to the position of Counsel. Pat is a member of the Real Estate and Finance groups and practices in the Philadelphia office.
Pat focuses his practice on a wide range of commercial real estate transactions and financings. He represents real estate developers, owners, and investors, international and domestic banks, private equity firms, hedge funds, and insurance companies in the financing, acquisition, development, repositioning and disposition of commercial real estate assets.
“Pat’s unique skillset and impressive experience enhances the services which we can provide to our real estate and finance clients. We are proud to promote such a talented lawyer,” said Tim Davis, Chair of the Business Department. “We look forward to his continued success.”
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Patrick Haggerty, White and Williams LLPMr. Haggerty may be contacted at
haggertyp@whiteandwilliams.com
Boston Developer Sues Contractor Alleging Delays That Cost Millions
November 01, 2021 —
James Leggate - Engineering News-RecordA Miami developer is suing the general contractor it hired to build a 22-story mixed-use tower in Boston’s trendy Seaport District, alleging construction delays cost it $4.9 million in lost revenue.
Reprinted courtesy of
James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
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