Contractual Waiver of Consequential Damages
January 21, 2019 —
David Adelstein - Florida Construction Legal UpdatesContractual waivers of consequential damages are important, whether they are mutual or one-sided. I believe in specificity in that the types of consequential damages that are waived should be detailed in the waiver of consequential damages provision. Standard form construction agreements provide a good template of the types of consequential damages that the parties are agreeing to waive.
But, what if there is no specificity in the waiver of consequential damages provision? What if the provision just states that the parties mutually agree to waive consequential damages or that one party waives consequential-type damages against the other party? Let me tell you what would happen. The plaintiff will argue that the damages it seeks are general damages and are NOT waived by the waiver of consequential damages provision. The defendant, on the other hand, will argue that the damages are consequential in nature and, therefore, contractually waived. FOR THIS REASON, PARTIES NEED TO APPRECIATE WHAT DAMAGES ARE BEING WAIVED OR LIMITED, AND POTENTIALLY THOSE DAMAGES NOT BEING WAIVED OR LIMITED, WHEN AGREEING TO A WAIVER OF CONSEQUENTIAL DAMAGES PROVISION!
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Re-Entering the Workplace: California's Guideline for Employers
May 18, 2020 —
Daniel Schneider – Newmeyer DillionWhen the California stay at home orders ultimately expire and Californians start to slowly transition back into the workplace, it will be critical for employers to have protocols in place which can best ensure the safety of their employees and that can continue to protect the public-at-large from the on-going spread of COVID-19. Recognizing the importance of this endeavor, the Governor's office last week released the
COVID-19 Industry Guidance for Office Workspaces and
Cal/OSHA General Checklist in order to provide guidance to businesses wanting to support a safe, clean environment for their employees. While the guidance is quick to point out that it is not intended to revoke or repeal any additional rights an employee may have to be protected in the workplace, and that it is not to be considered exhaustive of the steps employers need to take in order to protect their employees, the guidance does provide a useful roadmap for businesses to consider when establishing a robust plan that will best serve to protect employees from the spread of COVID-19 in the workplace.
Newmeyer Dillion continues to follow COVID-19 and its impact on your business and our communities. Feel free to reach out to us at NDcovid19response@ndlf.com or visit us at www.newmeyerdillion.com/covid-19-multidisciplinary-task-force/.
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Daniel Schneider, Newmeyer DillionMr. Schneider may be contacted at
daniel.schneider@ndlf.com
Penalty for Failure to Release Expired Liens
April 02, 2024 —
William L. Porter - Porter Law GroupI was recently contacted by a commercial building owner in the process of trying to sell his building. Two years prior to this, a subcontractor had recorded a mechanics’ lien with the local County Recorder’s office in relation to the owner’s property. The subcontractor recorded the mechanics lien after the subcontractor was not paid by a prime contractor for work the subcontractor had performed on the property. Unfortunately, the subcontractor then failed to file a lawsuit to foreclose on the lien within the requisite ninety (90) day time period for filing a lawsuit to foreclose on the mechanics’ lien. Since the subcontractor missed this 90 day deadline to file the mechanics lien foreclosure lawsuit, the mechanics lien expired and became unenforceable.
Subject to certain exceptions, under California Civil Code Section 8460, a lawsuit to foreclose on a mechanics lien must be filed within ninety (90) days after the mechanics lien is recorded or the mechanics lien expires. Although the mechanics lien had expired, the title company and intended purchaser of the building and property were perhaps understandably insistent that the mechanics lien constituted a cloud on title to the property and must be removed from the official records for the property. The prospective purchaser would not buy the property unless the mechanics’ lien was removed.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Real Estate & Construction News Round-Up (03/01/23) – Mass Timber, IIJA Funding, and Distressed Real Estate
March 13, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogThis week’s round-up explores how Infrastructure Investment and Jobs Act (IIJA) funding is being deployed, mass timber is on the rise as decarbonization efforts continue, and commercial real estate remains distressed.
- With a flurry of high-profile projects, mass timber is gaining traction. (Jeffrey Steele, Commercial Property Executive)
- Commercial real estate is experiencing high levels of distress, with multiple owners defaulting on loans across the country. (Ted Glanzer, The Real Deal)
- Even with the recent downturn in cryptocurrency value, the metaverse real estate market is expected to continue to grow. (The Real Deal)
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Pillsbury's Construction & Real Estate Law Team
Is an Initial Decision Maker, Project Neutral, or Dispute Resolution Board Right for You?
July 14, 2016 —
David Adelstein – Florida Construction Legal UpdatesRecently, I participated in a roundtable hosted by JAMS with experienced South Florida construction lawyers and retired circuit court judges to discuss the pros and cons of utilizing an initial decision maker (“IDM” and also referred to as a project neutral) or a dispute resolution board (“DRB”) to resolve disputes on construction projects. The IDM and DRB are designed to resolve disputes, specifically claims (whether for time, money, or both), during construction to keep the project progressing forward without being bogged down by the inevitable claim. There are numerous avenues to resolve disputes without resorting to filing a lawsuit or a demand for arbitration. The thought is that dispute resolution will be facilitated by techniques designed to assist the parties with the resolution of claims during construction. While direct discussions between the parties, meetings with the executives for business decision purposes, mediations, etc., are certainly helpful, sometimes these avenues are simply not enough to truly resolve a complex claim on a construction project that occurs during construction.
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David M. Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Design-Build Contracting: Is the Shine Off the Apple?
March 09, 2020 —
John P. Ahlers - Ahlers Cressman & Sleight PLLCThe design-build delivery method offers many benefits to owners. Among the cited benefits are that projects are generally completed faster, at a lower cost, by allowing innovative approaches through early and continual contractor involvement in the design process. The design contractor serves as a single point of contact responsible for both the design and construction of the project.
The Washington State Department of Transportation (“WSDOT”) utilized the design-build procurement method on the largest project ($2 billion) of its type in the state of Washington: the Highway 99 Tunnel, which was finished almost three years late after the tunnel-boring machine (“Bertha”) broke down six years ago. The sorted tale of the SR-99 Tunnel Project was the source of many of this firm’s blog articles.[1] The State of Washington staunchly maintained that the design-build contract protected its taxpayers from covering the repair costs to the tunnel-boring machine when it broke down in 2013. Bertha did not resume tunneling for almost two years, putting on hold removal of the Alaska Way viaduct and rebuilding of the Seattle Waterfront without an elevated highway.
In December 2013, the contractor for the project, Seattle Tunnel Partners (“STP”), contended that a 110-foot long 8” steel pipe which Bertha hit caused the breakdown. That pipe had been installed for groundwater testing by WSDOT in 2002 during its preliminary engineering for the viaduct replacement project. The project’s Dispute Review Board (“DRB”) composed of three tunneling experts found that the pipe constituted a “differing site condition” for which the State was responsible to disclose to contractors. The Board, whose views were non-binding, did not opine about how much damage the undisclosed pipe cost.[2] In other words, the mere fact that a differing site condition occurred did not establish that there was a causal connection between the damages which STP was seeking (in excess of $600 million) and the differing site condition (the 8” steel pipe which WSDOT lawyers at trial derisively referred to as “nothing more than a toothpick for Bertha’s massive cutter head”). STP maintained that Bertha had made steady progress except for three days immediately after hitting the pipe. It didn’t help the contractors’ case that during the discovery phase of the two-month trial, WSDOT lawyers uncovered documents showing that the contractor’s tunnel workers encountered and logged the pipe before digging began.[3]
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John P. Ahlers, Ahlers Cressman & Sleight PLLCMr. Ahlers may be contacted at
john.ahlers@acslawyers.com
Court’s Ruling on SB800 “Surprising to Some”
October 16, 2013 —
CDJ STAFFDescribing it as “surprising to many in the residential home building industry,” Jay Drake of Reuben, Junius & Rose LLP has a piece discussing the recent California Court of Appeals decision that SB800 is not a homeowner’s only remedy for construction defects. The court found, according to Mr. Drake that “the primary purpose of the Act was to provide a property owner with remedies for repair of construction defects before the defects caused actual damages.” In the case before the court, the construction defects had already lead to further damages.
Mr. Drake notes that the legislative history of SB800 puts the bill in response to an earlier California court case in which the courts determined that without actual damage to property, a homeowner could not file a construction defect lawsuit. The court concluded that SB800 was not intended to limit the homeowner’s rights after a construction defect situation has lead to damage.
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Five Years of Great Legal Blogging at Insurance Law Hawaii
December 09, 2011 —
CDJ STAFFOur congratulations to Tred Eyerly who has been blogging at Insurance Law Hawaii for five years now. Over the years, he has posted more than five hundred posts and has provided us all with fascinating insights into the laws on insurance coverage. He describes his blog as “a commentary on insurance coverage issues in Hawaii and beyond.” We are grateful that the “beyond” has just in the last few weeks included Colorado, Illinois, Washington, Minnesota, and Rhode Island (about as far from the island of Hawaii as you can get).
You can read his blog at Insurance Law Hawaii.
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