Choice of Law Provisions in Construction Contracts
October 07, 2024 —
Victoria Davies - ConsensusDocsIf you have used a ConsensusDocs® construction agreement or another industry association construction agreement for one of your projects, you are accustomed to seeing the laws of the state where the construction project is located as the governing law. There are good reasons for the laws of the state where the project is located to govern the construction agreement for the project. Even if not headquartered in the state, the parties have a presence there by virtue of their participation in the project in the state. Personnel and records that may be needed to resolve a claim may be located in the state. If there are experts that need to be engaged, they will likely need to visit the site. These reasons of efficiency and convenience, alone, may justify the parties’ decision to select the project state’s laws to govern their construction contract. However, there is also the policy interest of the project state, whose laws may even mandate that the project state’s laws govern construction contracts for in-state projects and that the parties resolve their disputes in state as well.
Several states have laws that require construction disputes for projects in the state to be resolved under its laws and/or litigated or arbitrated in the state. Some states require only that its laws govern and do not also require that the dispute resolution take place in the state, but some require both – that its laws govern and the disputes be resolved there. There may be different triggers as to when the statute applies. For example, in some states, the statute applies to any construction contract for a project in the state. In others, the law may only be triggered if one of the parties is domiciled in the state.
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Victoria Davies, Jones Walker LLPMs. Davies may be contacted at
vdavies@joneswalker.com
A Murder in Honduras Reveals the Dark Side of Clean Energy
October 12, 2020 —
Monte Reel - BloombergBerta Cáceres campaigned to stop a renewable energy project, and the long fight turned her into one of Central America’s most prominent environmentalists. She won a prestigious international prize known as the “Green Nobel” for protecting a river, using some of the award money to purchase a modest bungalow in La Esperanza, her hometown in central Honduras.
Her activism is also what brought three gunmen to her back door.
The men broke into her kitchen around 11:30 p.m. on March 2, 2016. Cáceres heard a noise and called out from her bedroom: “Who’s out there?” Within seconds, a gunman entered her room and shot her dead.
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Monte Reel, Bloomberg
Rental Assistance Program: Good News for Tenants and Possibly Landlords
January 25, 2021 —
Marissa Levy, Rachel A. Schneidman & Nancy Sabol Frantz - White and Williams LLPThe recently enacted $2.3 trillion Consolidated Appropriations Act, 2021 (the Act), which combined a $900 billion coronavirus relief bill as part of a larger $1.4 trillion omnibus spending and appropriations bill for the 2021 federal fiscal year, contains key provisions that directly impact the hard-hit real estate industry. In particular, Section 501 of Subtitle A of Title V of Division N of the Act establishes the “Emergency Rental Assistance program” (ERA), which appropriates $25 billion through the U.S. Department of the Treasury (Treasury) to provide eligible households with direct financial housing assistance. The enactment of the ERA provides landlords, tenants, borrowers, potential buyers, financial institutions and small businesses with a necessary lifeline to weather the ongoing economic fallout from the COVID-19 pandemic.
From the $25 billion designated for rental assistance, $800 million is reserved for tribal communities and $400 million is reserved for U.S. territories, with the remaining funds to be distributed to state and local governments (grantees) within 30 days of enactment. Under the ERA, fund allocations will be based on a state’s population, with all states, and the District of Columbia, receiving at least $200 million. Local jurisdictions with populations of 200,000 or more may also apply directly to the Treasury for assistance, which would be reduced from the amount granted to the state in which the jurisdiction is located.
Reprinted courtesy of
Marissa Levy, White and Williams LLP,
Rachel A. Schneidman, White and Williams LLP and
Nancy Sabol Frantz, White and Williams LLP
Ms. Levy may be contacted at levymp@whiteandwilliams.com
Ms. Schneidman may be contacted at schneidmanr@whiteandwilliams.com
Ms. Frantz may be contacted at frantzn@whiteandwilliams.com
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Revisiting Statutory Offers to Compromise
August 28, 2023 —
Kathryne Baldwin - Wilke FleuryThe fourth appellate district published an opinion earlier this year in Smalley v. Subaru of America, Inc. (2022) 87 Cal.App.5th 450 that serves as an excellent refresher on requirements of the “998 Offer,” or a statutory offer to compromise pursuant to Code of Civil Procedure (“CCP”) §998.
In Smalley, set in the context of a Lemon Law action, Defendant Subaru made a 998 Offer for $35,001.00, together with attorneys’ fees and costs totaling either $10,000.00 or costs and reasonably incurred attorneys’ fees, in an amount to be determined by the Court. (Smalley, supra, 87 Cal.App.5th at 454.) Plaintiff objected that the offer was not reasonable and the case proceeded to trial. At trial, a jury found in favor of Plaintiff and awarded him a total judgment award of $27,555.74 – far short of the $35,001.00 offer. The trial court found Plaintiff had failed to beat the 998 at trial and that Subaru’s earlier 998 offer was reasonable. Plaintiff appealed the post-judgment order awarding Plaintiff pre-offer costs and Defendant post-offer costs on the grounds that the 998 was not reasonable in that it did not specify whether Plaintiff would be deemed the prevailing party for purposes of a motion for attorneys’ fees. The fourth district affirmed the trial court’s order and engaged in a helpful review of 998 requirements.
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Kathryne Baldwin, Wilke FleuryMs. Baldwin may be contacted at
kbaldwin@wilkefleury.com
Wyncrest Commons: Commonly Used Progress Payments in Construction Contracts Do Not Render Them Installment Contracts
December 11, 2023 —
Benjamin J. Hochberg - Peckar & Abramson, P.C.In BIL-JIM Construction Company, Inc. v. Wyncrest Commons, LP, 2023 WL 7276637 (Unpublished, decided November 3, 2023), the New Jersey Appellate Division was asked to consider two issues regarding the interpretation and application of a construction contract that utilized the standard form American Institute of Architects owner/contractor agreement (AIA Document A101-2007) (the “AIA Contract”). Specifically, it was asked to consider: 1) whether a modified AIA Contract was an “installment contract,” whereby each progress payment was subject to its own statute of limitations; and 2) whether and when work had been approved in the context of New Jersey’s Municipal Land Use Law. While the decision is presently unpublished, it provides guidance as to how form contracts utilizing the same or similar terms will be treated by New Jersey’s courts and is a reminder that the potential for future claims must be considered during contract negotiations.
Discussion
The primary issue in Wyncrest was whether an AIA Contract was an “installment contract,” and the remaining issues turned on the resolution of this question. Wyncrest, the owner for the project at issue, did not dispute that its contractor, BIL-JIM Construction Company, Inc., had not been fully paid for work that it had performed in connection with a construction project located in Ocean County, New Jersey. Instead, Wyncrest argued that because its AIA Contract with BIL-JIM required that invoices be presented and paid monthly, it constituted an “installment contract.” As such, older payments would be treated as individual transactions and were time barred by the applicable statute of limitations. The trial court agreed with Wyncrest’s characterization of the AIA Contract as an “installment contract,” and found that BIL-JIM’s invoices were each subject to their own statute of limitations. However, the trial court disagreed with Wyncrest’s argument that BIL-JIM’s claim for retainage—which was submitted at the end of its work at the project—was time barred.
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Benjamin J. Hochberg, Peckar & Abramson, P.C.Mr. Hochberg may be contacted at
bhochberg@pecklaw.com
Preventing Costly Litigation Through Your Construction Contract
August 17, 2011 —
Douglas Reiser, Builders Council BlogIt’s Tuesday, which means it ’s the middle of your work week. Tuesday is a great time to take an hour to look over your contracts, while the crews are pushing through their scheduled work. Today’s food for thought: How do you use your contract to reduce your litigation burden?
Your contract should do many things. It should discuss the scope of work, scheduling of work, quality of work, coverage for liabilities and conditions and timeliness for payment. But often overlooked is how your contract can lend to dispute resolution.
Commonly, you will see a simple provision that covers governing law, venue for disputes and the awarding of attorneys’ fees. But you can do better. Remember, a contract is enforced to the maximum extent possible in Washington state.
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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com
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Wildfires Threaten to Make Home Insurance Unaffordable
January 10, 2018 —
Christopher Flavelle – BloombergMore frequent and intense wildfires are making it harder for homeowners to find and keep insurance in California, a state regulator warned Thursday.
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Christopher Flavelle, Bloomberg
Is the Obsession With Recordable Injury Rates a Deadly Safety Distraction?
May 16, 2022 —
Richard Korman - Engineering News-RecordOn the first morning of 2021, laborer Mason Mack Harris, 25, reported for work that would have qualified for extra holiday pay. On that New Year’s Day, the onsite manager for his employer, Midwest Demolition Co., assigned Harris and a workmate to complete demolition of a 9-ft-high concrete balcony slab at a children’s home renovation project in Lincoln, Neb. According to U.S. Labor Dept. records, they used a concrete saw since neighbors had complained about jackhammer noise from earlier work.
Reprinted courtesy of
Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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