Risk Protection: Force Majeure Agreements Take on Renewed Relevance
November 30, 2020 —
Michael E. Carson - Construction ExecutiveForce majeure clauses have been standard in contracts dating back hundreds of years in the United States—and even longer in Europe. “Force majeure,” which is French for “greater force,” removes liability for unforeseen events that prevent parties from fulfilling contractual obligations.
In a year defined by the COVID-19 pandemic, these clauses have gone from boilerplate basics to something worthy of further examination and attention in order to minimize risk for all parties involved in a construction project. Prior to COVID-19, drafters might have considered a localized or regional event that would lead to invoking a force majeure clause. It is doubtful, however, that anybody envisioned the impact on such a world-wide scale.
UNDERSTANDING THE AGREEMENTS
Force majeure clauses cover unforeseen events, a broad term that encompasses both acts of God and human-caused incidents. These range from natural disasters like earthquakes and hurricanes to acts of terrorism, strikes, political strife, government actions, war and other difficult- or impossible-to-predict disruptions. When such an event occurs, the force majeure clause attempts to remove, or at least reduce, uncertainty as to the rights and liabilities of the parties to the agreement.
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Michael E. Carson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Carson may be contacted at
michael.carson@nationwide.com
Construction Law Client Alert: Hirer Beware - When Exercising Control Over a Job Site’s Safety Conditions, You May be Held Directly Liable for an Independent Contractor’s Injury
April 06, 2011 —
Mark VonderHaar and Yvette DavisOn February 24, 2011, the California Court of Appeal held in Jeffrey Tverberg, et al v. Fillner Construction, Inc. that the imposition of direct liability on a hirer turns on whether the hirer exercised retained control of worksite safety in such a manner that affirmatively contributed to the independent contractor’s injury. Twice, Tverberg, an independent contractor hired by a general contractor's subcontractor, asked the general contractor to make the job site safe by covering up open holes created by another unrelated subcontractor while Tverberg was working at the site. After Tverberg was injured at the site by falling in a hole, he sued both the general contractor and the subcontractor which had hired him.
The Court of Appeal reasoned that when the general contractor instructed another subcontractor to create a condition that was potentially dangerous (i.e., creating open and uncovered bollard holes), and simultaneously required Tverberg to perform unrelated work near the open holes, the general contractor s conduct may have constituted a negligent exercise of its retained control which affirmatively contributed to Tverberg’s injury. The Court also reasoned that the general contractor affirmatively assumed responsibility for the safety of the workers near the holes by only requiring stakes and safety ribbon, and negligently discharged that responsibility which resulted in injury.
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Reprinted courtesy of Mark VonderHaar and Yvette Davis of Haight Brown & Bonesteel. Mr. VonderHaar can be contacted at mvonderhaar@hbblaw.com and Ms. Davis at ydavis@hbblaw.com.
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Pennsylvania Civil Engineers Give the State's Infrastructure a "C-" Grade
November 28, 2022 —
American Society of Civil EngineersPENNSYLVANIA. — The Pennsylvania Council of the American Society of Civil Engineers (ASCE) released the 2022 Report Card for Pennsylvania's Infrastructure today at three congruent news conferences across the state including Harrisburg, Lehigh Valley, and Pittsburgh, with 15 categories of infrastructure receiving an overall grade of a "C-". This is the same grade issued by the council in its 2018 report. A "C-" means Pennsylvania's infrastructure is in mediocre condition and requires attention. Pennsylvania's aviation and rail networks are helping to drive economic growth in the region and an improved roadway network is helping increase efficiency for the regional and national economies, but an aging infrastructure network and struggling water systems threaten the health, safety and welfare of the region. Civil engineers graded aviation (B-), bridges (D+), dams (C), drinking water (D), energy (C), hazardous waste (B-), levees (C), parks (C+), ports (C+), rail (C), roads (C-), solid waste (C+), stormwater (D), transit (D), and wastewater (D-).
"Considering Pennsylvania's aging infrastructure and its critical role in our state's economy, policy makers must continue to prioritize dedicated funding to update and improve all infrastructure assets," said Rep. Mike Carroll, D-118. "Failure to do so will seriously harm the quality of life for every citizen."
"This report shows that Pennsylvania's infrastructure has seen some noteworthy improvements and that our lawmakers are prioritizing the built environment, but out-of-sight, out-of-mind systems such as water and wastewater pipelines are lacking the necessary attention," said David DiGioia, chair, 2022 Report Card for Pennsylvania's Infrastructure. "With help from the Bipartisan Infrastructure Law, we could improve our communities for generations if we double down on investment and close our funding gaps across all sectors included in this report."
The Report Card was created as a public service to citizens and policymakers to inform them of the infrastructure needs in their state. Civil engineers used their expertise and school report card-style letter grades to condense complicated data into an easy-to-understand analysis of Pennsylvania's infrastructure network. ASCE State and Regional Infrastructure Report Cards are modeled after the national Infrastructure Report Card, which gave America's infrastructure an overall grade of 'C-' in 2021.
To view the report card and all five categories, visit https://infrastructurereportcard.org/state-item/Pennsylvania/.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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Solicitor General’s Views to Supreme Court on Two Circuit Court Rulings that Groundwater Can be Considered “Waters of the United States”
March 04, 2019 —
Anthony B. Cavender - Gravel2GavelOn December 3, 2018, the U.S. Supreme Court invited the Solicitor’s views on the contested issues whether discharges to groundwater are subject to an he National Pollutant Discharge Elimination System (NPDES) permit, and whether there is an “ongoing violation” of the Clean Water Act for Citizen Suit jurisdiction when the source of the pipeline spill has been fixed, yet not all pollutants have been cleaned up.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Meet BWBO’s 2024 San Diego Super Lawyers Rising Stars!
April 29, 2024 —
Bremer Whyte Brown & O'Meara LLPBWB&O is proud to announce San Diego Partner
Johnpaul Salem, and Associates
Christina Matian and
Angelo Perillo have been selected in the 2024 San Diego Super Lawyers list as Rising Stars for their work in Civil and Personal Injury Litigation. To read Super Lawyers’ digital publication, please click
here.
SELECTED AS RISING STARS
Johnpaul Salem: 2023-2024
Christina Matian: 2024
Angelo Perillo: 2024
Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The objective of Super Lawyers’ patented multiphase selection process is to create a credible, comprehensive, and diverse listing of outstanding attorneys that can be used as a resource for attorneys and consumers searching for legal counsel.
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Fourteen Years as a Solo!
July 08, 2024 —
Christopher G. Hill - Construction Law MusingsI have always found it appropriate that my jump to solo practice and Independence Day are so close in time. Today marks 14 years since
my first day as a solo practitioner of construction law at The Law Office of Christopher G. Hill, PC. Time sure has flown by thanks to the great clients and friends who followed me to solo practice and whom I have met since the firm’s founding on July 1, 2010. I also could not have made the transition and had the fun and success I have enjoyed over the past 14 years without the support of the best wife and family that any construction lawyer could want.
Since the firm’s last anniversary, my youngest child (who was 7 when this journey began!) started and completed her junior year at N. C. State University and is currently in Idaho working as an intern for Idaho Fish & Game, my second oldest is an assistant director of admissions at Appalachian State University in Boone, NC, and is newly married, and my oldest has bought a home, adopted an adorable golden retriever puppy, and celebrated her third marriage anniversary. Our home in Captiva, Florida has also continued its recovery from Hurricane Ian.
Professionally, I’ve had a great year. I am serving as the Vice Chair of the
Section Council of the Virginia Bar Association Construction and Public Contracts Law section. I was also honored to be nominated and elected to the
Virginia Legal Elite in Construction Law for the 17th straight year and to the
Virginia Super Lawyers in Construction Litigation for the 8th year running. I also continued to have the opportunity to teach in various construction-related venues on relevant topics and to help out some of the best clients around. I have also continued to grow my
ADR practice, including
arbitration and
mediation.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
"Decay" Found Ambiguous in Collapse Case
August 31, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court granted, in part, the insured's motion for summary judgment seeking coverage for a collapse of a church's ceiling. Derbyshire Baptist Church v. Church Mut. Ins. Co., 2020 U.S. Distl LEXIS 113346 (E.D. Va. June 29, 2020).
A large portion of the sanctuary ceiling of the insured's church collapsed. A claim was filed with the insurer. The insurer hired a forensic engineer who found the collapse was caused by the disconnection of wire support hangers from the wood roof beams. Further, "the redistribution of load on the hangers resulted in a progressive failure of the hangers and their supported components." Based on these findings, the insurer denied coverage.
The policy excluded coverage for collapse, but in the Additional Coverage portion of the policy, collapse caused by "decay that is hidden from view" was covered. The court pondered the meaning of "decay," which was not defined in the policy.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Ninth Circuit Rules Supreme Court’s Two-Part Test of Implied Certification under the False Claims Act Mandatory
May 13, 2019 —
Meredith Thielbahr - Gordon & Rees Construction Law BlogFor those contractors in the government arena, read on.
The False Claims Act (“FCA”) was enacted to deter knowingly fraudulent actions by contractors which resulted in a loss of property to the Government. Intent to defraud with resulting financial hardship was required. Contrary to popular misconception, the statute was not designed to punish all false submissions to the Government simply because those submissions, or claims, are later found to be false. The statute’s inclusion of the requisite element of knowledge is consistent with this notion:
- A defendant must submit a claim for payment to the Government;
- the claim must be false or fraudulent;
- the defendant must have known the claim was fraudulent when it was submitted (also known as scienter); and
- the claim must have caused the Government to pay out money.
See 31 U.S.C. § 3729(a).
Despite these explicit elements (in addition to common law elements of fraud), over the last two decades, contractors have seen ever-expanding theories of FCA recovery presented by qui tam plaintiffs and the Government. For example, under the FCA, the false “claim” evolved over time: the claim no longer needs to be an express false claim (i.e. the truthfulness of the claim is a direct condition of payment); the claim can be “implied” misrepresentation or “half-truth”.
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Meredith Thielbahr, Gordon & Rees Scully MansukhaniMs. Thielbahr may be contacted at
mthielbahr@grsm.com
