Engineers Found ‘Hundreds’ of Cracks in California Bridge
January 24, 2014 —
James Nash – Bloomberg NewsEngineers spotted “hundreds” of cracks in welds on parts produced for the San Francisco-Oakland Bay Bridge in 2008 and were encouraged to stay quiet rather than delay the $6.4 billion project, according to a California Senate committee report.
James Merrill, then a senior engineer with a quality assurance company known as Mactec, told Senate investigators that his complaints about work done at Shanghai Zhenhua Heavy Industry Co. Ltd. (900947), known as ZPMC, were rebuffed by managers of the California Department of Transportation as “too rigorous,” according to the report released yesterday.
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James Nash, Bloomberg NewsMr. Nash may be contacted at
jnash24@bloomberg.net
Connecticut Federal District Court Follows Majority Rule on Insurance Policy Anti-Assignment Clauses
March 20, 2023 —
Saxe Doernberger & Vita, P.C.A recent decision by the United States District Court for the District of Connecticut further confirms that Connecticut courts follow the majority rule that contractual anti-assignment clauses do not bar assignment of an insured’s claim after the loss occurred.1
The September 2022 decision in
Am. Guarantee & Liability Ins. Co. v. 51 Roses Mill LLC arose out of a fire that destroyed a property under contract for sale. At the time of the fire, the property was owned by Bridge33 Capital LLC (“Bridge33”), insured by American Guarantee & Liability Insurance Company (“American Guarantee”), and under contract for sale to 51 Roses Mill LLC (“51 Roses”). After the fire, Bridge33 assigned its insurance claim to 51 Roses. American Guarantee filed suit seeking a declaratory judgment that the assignment was invalid, or that, if it was valid, 51 Roses could only recover under the actual cash value, rather than the replacement cost value, of the lost property. 51 Roses brought counterclaims for breach of contract and bad faith and sought a declaratory judgment that it was entitled to replacement cost value under the policy.
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Saxe Doernberger & Vita, P.C.Saxe Doernberger & Vita, P.C. may be contacted at
coverage@sdvlaw.com
Construction Managers, Are You Exposing Yourselves to Labor Law Liability?
February 22, 2021 —
Timothy P. Welch - Hurwitz & Fine, P.C.When dealing with construction site accidents, who a party is matters. Under Labor Law sections 200, 240(1) and 241(6) owners, contractors,
and their agents have a non-delegable duty to provide reasonable and adequate protection to workers from risks inherent at work sites, with a specific emphasis placed on elevation-related hazards. Given the near strict liability nature of Labor Law section 240(1), it is critical to identify whether a party is a proper Labor Law defendant from the get-go.
While identifying the owner (and usually the contractor) may be relatively straightforward, identifying “their agents” has proven to be a more complex undertaking. It should be noted that the requirements set forth in the Labor Law are non-delegable from the standpoint of the owner or contractor, however, the duties themselves can be assigned to “agents” of an owner or “agents” of a contractor. When such an assignment occurs, the same non-delegable duty held by the owner or contractor is imposed on the agents as well. Moreover, “once an entity becomes an agent under the Labor Law it cannot escape liability to an injured plaintiff by delegating the work to another entity.[1]”
An entity that often skirts the line between being an agent and not, is the Construction Manager. Traditionally, the Construction Manager has been found to be outside the purview of the Labor Law when its scope of work is narrowly focused on scheduling and general coordination of the construction process. However, when a Construction Manager’s scope expands, so does its risk that it may, in fact, become a proper Labor Law defendant.
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Timothy P. Welch, Hurwitz & Fine, P.C.Mr. Welch may be contacted at
tpw@hurwitzfine.com
Plan Ahead for the Inevitable Murphy’s Law Related Accident
August 06, 2019 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday here at Construction Law Musings, we welcome back Melissa Dewey Brumback. Melissa (@melissabrumback) is a construction attorney and partner in the firm Ragsdale Liggett, PLLC in Raleigh. Melissa has spent over a decade representing engineers and architects, advising them on contract proposals to limit risks, and defending them when litigation does arise. She is the author of the award-winning Construction Law in North Carolina a blog dedicated to the A/E community. Melissa is rated AV, the best rating of the Martindale Hubbell lawyer rating system, is a certified LEED Green Associate, and serves as President of the RL Mace Universal Design Institute. She is also signed up to take a cruise this summer with her family (!).
The recent cruise ship fiasco, in which thousands were stranded at sea for an entire week with no running water or toilet facilities, visibly brought to mind the old axiom to “Be Prepared.” As Chris likes to say, Murphy was an optimist.
What does this have to do with your construction company? Plenty. Since time is money and a downed project extremely expensive, you should plan in advance for likely emergency situations. Some things to consider:
1. Emergency Contacts: Do you only have a cell number for your key project manager? You should have at least two ways to reach all key employees and subcontractors, as well as owner representatives and the designers of record. Consider that in a large emergency, sometimes entire cell phone towers are out of commission from overuse. A land line comes in awfully handy in such a situation.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Buffett Says ‘No-Brainer’ to Get a Mortgage to Short Rates
October 08, 2014 —
Noah Buhayar – BloombergWarren Buffett, the billionaire chairman of Berkshire Hathaway Inc. (BRK/A), said he was puzzled by the sluggish rebound in U.S. home construction amid near record-low interest rates and a broader recovery in the economy.
“You would think that people would be lining up now to get mortgages to buy a home,” Buffett said today at a conference hosted by Fortune magazine in Laguna Niguel, California. “It’s a good way to go short the dollar, short interest rates. It is a no-brainer. But so far home construction pickup has been slower than I had anticipated.”
Housing starts slumped in August from the highest level in almost seven years to a 956,000 annualized rate, Commerce Department data show. Slow wage growth and tighter lending standards have kept some would-be borrowers from buying a home.
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Noah Buhayar, BloombergMr. Buhayar may be contacted at
nbuhayar@bloomberg.net
Orchestrating Bias: Arbitrator’s Undisclosed Membership in Philharmonic Group with Pauly Shore’s Attorney Not Grounds to Reverse Award in Real Estate Dispute
June 21, 2017 —
Lyndsey Torp - Snell & Wilmer Real Estate Litigation BlogThe California court of appeal recently issued an unpublished decision in Knispel v. Shore, 2017 WL 2492535, affirming a judgment confirming an arbitration award in a real estate dispute involving Pauly Shore. The court of appeal held that the arbitrator’s failure to disclose her membership in the Los Angeles Lawyers Philharmonic Group with the attorney representing Pauly was not grounds to overturn the judgment.
The underlying arbitration involved a dispute between Michael Scott Shore, on the one hand, and his brother, Pauly, among others, on the other hand, regarding certain residential property located on Sunset Boulevard near The Comedy Store in West Hollywood (owned and operated by their mother, Mitzi Shore). The parties agreed to arbitrate their dispute before Judge Aviva K. Bobb (Ret.) of the Alternative Resolution Center. Judge Bobb issued an award in favor of Pauly, and he petitioned the trial court to affirm the award. Michael opposed, contending the arbitrator failed to disclose that she and Pauly’s attorney had both been members of the Lawyers Philharmonic, for which they had been practicing and performing together since November 2010.
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Lyndsey Torp, Snell & WilmerMs. Torp may be contacted at
ltorp@swlaw.com
Big Data Meets Big Green: Data Centers and Carbon Removal Compete for Zero-Emission Energy
October 15, 2024 —
Robert A. James, Sidney L. Fowler & Ashleigh Myers - Gravel2Gavel Construction & Real Estate Law BlogArtificial intelligence, data centers, carbon removal and zero-emission power may sound like a winning line (plus the Free Space) on a 2024 Buzzword Bingo card. But the concepts have come into dramatic real-world tension as private and public actors seek to accommodate the digital and environmental imperatives for green energy.
After years of fairly stable demand, punctuated by declines during the pandemic and economic slumps, electricity demand is projected to double by 2050. A principal cause is the rapid expansion in the power needed to energize and cool servers amid explosive growth in the number and size of data centers, crypto miners, and other point sources of computation. Data centers were 3% of U.S. demand and are projected to be up to 9% or more by 2030; AI will drive a 160% surge in data center demand by 2030. A commentator notes, “We haven’t seen [growth like] this in a generation.”
Reprinted courtesy of
Robert A. James, Pillsbury,
Sidney L. Fowler, Pillsbury and
Ashleigh Myers, Pillsbury
Mr. James may be contacted at rob.james@pillsburylaw.com
Mr. Fowler may be contacted at sidney.fowler@pillsburylaw.com
Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com
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Equitable Lien Designed to Prevent Unjust Enrichment
November 09, 2020 —
David Adelstein - Florida Construction Legal UpdatesThere are instances where a party does not have construction lien rights but, nevertheless, feels the need to pursue an equitable lien against the real property.
No different than a construction lien, an action to enforce an equitable lien has a one-year limitations period if it arises from the “furnishing of labor, services, or material for the improvement of real property.” Fla. Stat. s. 95.11(5)(b). In other words, an equitable lien–not nearly as powerful as a construction lien because a construction lien is recorded in the official public records whereas an equitable lien is not–is tied to an analogous one-year limitations period for those liening for construction improvements. (Notably, if the equitable lien arises outside of the construction improvement context, the one-year statute of limitations would not apply. See Gabriji, LLC v. Hollywood East, LLC, 45 Fla. L. Weekly D2251a (Fla. 4th DCA 2020) (one-year statute of limitations period does not apply to all equitable liens such as those that do not arise from furnishing labor, services, or material for the improvement of real property)).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com