SCOTUS, Having Received Views of Solicitor General, Will Decide Whether CWA Regulates Indirect Discharge of Pollutants Into Navigable Water Via Groundwater
April 17, 2019 —
Anthony B. Cavender - Gravel2GavelPrior to deciding whether to review an important February 1, 2018, U.S. Court of Appeals for the Ninth Circuit decision involving the jurisdictional reach of the Clean Water Act (CWA), Hawai’i Wildlife Fund, et al., v. County of Maui, the Supreme Court asked the Solicitor General for the views of the U.S. on the holdings of this case and the April 12, 2018 U.S. Court of Appeals for the Fourth Circuit decision, Upstate Forever, et al., v. Kinder Morgan Energy Partners, L.P., et al.
On February 19, the Supreme Court confirmed that certiorari was granted to Question 1 presented by the Petition,
Whether the CWA requires a permit when pollutants originate from a point source but are conveyed to navigable waters by a nonpoint source, such as groundwater. (33 U.S.C. § 1362 (12)
In County of Maui , the Ninth Circuit held that indirect discharges to navigable waters through groundwater may be subject to the Environmental Protection Agency’s (EPA) CWA the National Pollutant Discharge Elimination System (NPDES) permitting authority, and in Kinder Morgan, the Fourth Circuit held that such an indirect discharge may be subject to regulation under the CWA when there is a direct hydrological connection between the discharge into groundwater and the direct discharge into navigable, surface waters.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
No Duty to Defend Faulty Workmanship Under Hawaii Law, but All is not Lost for Insured Contractor
June 06, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court found no duty to defend claims of faulty workmanship under certain policies issued to the insured contractor, but rejected arguments made by the Insurers regarding various provisions of the general liability and excess policies. St. Paul Fire & Marine Ins. Co. v. Bodell Consr. Co., 2022 U.S. Dist. LEXZIS 79379 (D. Haw. May 2, 2022). (Note- our office represents the insured contractor).
In 2003, Bodell was hired by developer Sunstone Realty Partners L LLC to be the general contractor for construction work on a condominium project, "Ali`i Cove." The project consisted of approximately 37 buildings and one recreation center that were constructed over the course of four years. On August 14, 2015, the AOAO of Ali`i Cove sued Sunstone, alleging that Sunstone developed, built, and sold condominium nits using embedded straps that did not meet building codes, instead of bolting house frames to their foundations. The AOAO filed a second amended complaint alleging numerous additional defects which were referenced in an expert report. These included additional alleged construction defects such as site conditions, structural issues, building envelope, roofing, general architecture, mechanical, plumbing and electrical. In all, the report purported to find approximately 281 instances of faulty workmanship.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
The Riskiest Housing Markets in the U.S.
June 26, 2014 —
Ben Steverman – BloombergThe real estate rollercoaster ride for U.S. homeowners isn't new. Some markets had even rockier rides in the early 1980s or '90s.
When so much wealth is tied up in one asset, the risk -- or stability -- of a local market can mean a lot to a homeowner. (See “The Hidden Risks in Your Housing Market” for more on this.)
Bloomberg.com asked real estate website Zillow.com to help us figure out which U.S. markets have been the riskiest over the last 35 years.
Our measure of risk: Assuming buyers held on to their homes for five years before selling, what was their chance of suffering a loss? As a secondary criterion, we compared the worst annual losses homeowners in these markets have experienced since 1979.
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Ben Steverman, BloombergMr. Steverman may be contacted at
bsteverman@bloomberg.net
Notice of Completion Determines Mechanics Lien Deadline
August 13, 2019 —
William L. Porter - Porter Law GroupThe California Mechanics Lien is one of the most valuable collection devices available to contractors, subcontractors and suppliers who are unpaid for work performed and materials supplied in relation to a California Private Works project. The mechanics lien allows the claimant to sell the property where the work was performed in order to obtain payment. The process starts with the recording of a mechanics lien in the office of the County Recorder where the property in question is located. As noted below, certain deadlines must be met.
Know Your Mechanics Lien Filing Deadlines Generally
Working within deadlines is absolutely crucial to preserving mechanics lien rights under California law. The deadlines differ, depending on whether you are a ”direct” contractor, also known as “original” or “prime” contractor (one who contracts directly with the property owner) or a subcontractor or material supplier. The primary differences are that, the direct contractor is only required to serve the “Preliminary Notice” on the Construction Lender (Civil Code section 8200-8216), whereas the subcontractor and material supplier must serve not only the Construction Lender, but also the Owner and Direct Contractor (see Civil Code section 8200(e)). Another difference is that a direct contractor has a longer period of time in which to record a mechanics lien after a valid “notice of completion” or a “notice of cessation” has been recorded (Civil Code sections 8180-8190), (60 days for original contractors as compared to 30 days for subcontractors and suppliers – See Civil Code sections 8412 and 8414). A further general description of the rules is as follows:
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Recent Opinions Clarify Enforceability of Pay-if-Paid Provisions in Construction Contracts
May 29, 2023 —
Patrick McKnight - The Dispute ResolverSeveral recent opinions and legislative actions have brought the controversial nature of pay-if-paid provisions into focus in early 2023. Pay-if-paid provisions are contractual mechanisms designed to shift the risk of non-payment from General Contractors to lower-tier subcontractors. In other words, pay-if-paid provisions generally do not require payment to downstream subs until after the GC or Prime are themselves paid in-full by the owner. Recent developments reflect the differing approaches taken by courts when addressing pay-if-paid provisions, ranging broadly from prohibition to full enforceability. Other jurisdictions fall somewhere in the middle, viewing such provisions with varying amounts of skepticism on the grounds heir impact on smaller downstream subs is disproportionate and unfair.
Pay-if-paid provisions are often contrasted against “pay-when-paid” provisions. Pay-when-paid provisions may require payment within a specified duration but remove the upstream contractor’s payment in-full as a condition precedent. The brief discussion below will not explore pay-when-paid, no damage for delay provisions, or statutory prompt payment acts. Instead, this article serves as a primer on recent legal developments related to pay-if-paid provisions exclusively.
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Patrick McKnight, Fox Rothschild LLPMr. McKnight may be contacted at
pmcknight@foxrothschild.com
Construction Litigation Roundup: “That’s Not How I Read It”
June 05, 2023 —
Daniel Lund III - LexologyA general contractor seeking to litigate with its subcontractor concerning a construction project in Indiana found itself fighting in court against assertions by the sub that arbitration of the dispute was required.
The GC was already in litigation in federal court with the project owner. The GC filed a third-party demand against the sub, which was met with a motion to stay and to compel arbitration.
At the crux of the sub’s argument was this clause in its subcontract: “Subcontractor agrees that the dispute resolution provisions of the Prime Contract between [GC] and Owner, if any, are incorporated by reference as part of this Subcontract so as to be binding as to disputes between Subcontractor and [GC] that involve, in whole or in part, questions of fact and/or law that are common to any dispute between [GC] and Owner or others similarly bound to such dispute resolution procedures... ."
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Skilled Labor Shortage Implications for Construction Companies
July 15, 2019 —
Tony James & Keith Maciejewski - Construction ExecutiveThe construction industry is facing one of the most significant labor shortages it has ever seen. This labor shortage has far-reaching implications for worker safety and construction quality—both of which could adversely impact a company’s bottom line if investments are not made to address the issue.
What’s causing the labor gap?
There are two underlying trends driving this phenomenon:
- More experienced workers have either not returned to the industry after the Great Recession or are now retiring as they’ve concluded their careers.
- The construction industry has long struggled to attract new, younger workers to the industry, and this problem has only worsened as the broader economy boomed. As a result, construction firms must compete with other industries, such as health care, technology and engineering, for young talent.
Reprinted courtesy of
Tony James & Keith Maciejewski, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Medical Center Builder Sues Contracting Agent, Citing Costly Delays
March 19, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Pennsylvania firm Bedwell Co. “has sued the Camden County Improvement Authority, saying it is owed $4.6 million for construction of [the Cooper Medical School of Rowan University]” in Camden, New Jersey, according to the Courier-Post. The Bedwell Co. alleges that its expenses exceeded fifty million, “but that it has been paid only $46 million.”
The lawsuit states, as quoted by the Courier-Post, “From its inception, the project was plagued by delays due to defects in the design document and other circumstances that were beyond Bedwell’s control.” Furthermore, there were “an abnormally large quantity of design changes, schedule disputes, schedule disruptions and work-activity interference.”
“Representatives of the CCIA and HDR could not be reached for comment Wednesday,” according to the Courier-Post. “Bedwell declined to comment on the allegations in the suit.”
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