Washington Court Denies Subcontractor’s Claim Based on Contractual Change and Notice Provisions
January 29, 2024 —
Wendy Rosenstein - Ahlers Cressman & Sleight PLLCThe recent unpublished case, Cascade Civil Construction, LLC v. Jackson Dean Construction, Inc., et al.,[1] provides a legal justification for contractors to require a directive or change order in advance of performing changed work—thereby preventing the party who requested the changed work from later arguing that notice provisions were not complied with.
In the case, Jackson Dean, the prime contractor, hired Cascade to perform excavation work on a project to build a new Costco Corporate headquarters. Due to the Covid-19 pandemic and other issues, Jackson Dean directed resequencing, which required Cascade to perform excavation concurrent to dewatering. Jackson Dean also required deeper-than-planned excavation under one of the buildings.
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Wendy Rosenstein, Ahlers Cressman & Sleight PLLCMs. Rosenstein may be contacted at
wendy.rosenstein@acslawyers.com
Amazon Can be Held Strictly Liable as a Product Seller in New Jersey
August 07, 2022 —
Michael L. DeBona - The Subrogation StrategistOn June 29, 2022, in N.J. Mfrs. Ins. Grp. a/s/o Angela Sigismondi v. Amazon.com, Inc., 2022 U.S. Dist. LEXIS 115826 (Sigismondi), the United States District Court for the District of New Jersey held that Amazon.com, Inc. (Amazon) is a “seller” under New Jersey’s product liability statute and can thus face strict liability for damages caused by products sold on its platform. Although the analysis is state-specific, Sigismondi may serve as an important decision for allowing product defect claims to proceed against Amazon when so often the third-party vendor that lists the product is unlocatable, insolvent, or not subject to the jurisdiction of United States courts.
In recent years, Amazon has been fighting product liability claims across the country. Amazon argues it is not a “seller” under states’ product liability laws but is merely an online marketplace that facilitates the sale of products by third-party vendors. What constitutes a “seller” in a particular state must be evaluated state-by-state, but various courts have accepted Amazon’s argument that it is not a “seller.” These decisions are based on Amazon’s level of control in the product sale and often focus on a finding that Amazon did not convey possession of the product or transfer its title.
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Michael L. DeBona, White and WilliamsMr. DeBona may be contacted at
debonam@whiteandwilliams.com
Warning! Danger Ahead for Public Entities
July 30, 2019 —
Michael J. Baker - Snell & Wilmer Under Construction BlogPublic entities are known to assert False Claims actions “to up the ante” to intimidate and aggressively address contractor construction claims. This strategy in the case of John Ross of Industrial Sheet Metal, Inc. (JRI) V. City of Los Angeles Department of Airports (LAWA), 29 Cal. App. 5th 378 (2018), backfired on the public entity, LAWA, in a big way and should serve as a warning to public entities about expanding claims to include False Claim actions. In this case, LAWA was awarded $1 in contract damages, its California False Claims Act (CFCA) claim was rejected by the jury as were JRI’s claims against LAWA. Despite losing on the substantive contract claims, the trial court found that JRI “prevailed in the action” under the relevant CFCA fee provision, Government Code 12652, subd. (g)(9)(B), regardless of JRI’s failure to prevail in the action as a whole. The California Appellate Court (hereinafter “Court”) affirmed the trial court’s finding.
The CFCA is analogous to the federal False Claims Act (FFCA; 31 U.S.C. 3729 et seq.). Since the CFCA is patterned on similar federal legislation, it was appropriate for the Court to look to precedent construing this similar federal act in interpreting the CFCA provisions. Accordingly, the Court looked at the False Claims Act cases for guidance in upholding the trial court’s decision in its determination that JRI was the “prevailing party” for determining an attorney’s fees award against LAWA.
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Michael J. Baker, Snell & WilmerMr. Baker may be contacted at
mjbaker@swlaw.com
Important Information Regarding Colorado Mechanic’s Lien Rights.
November 07, 2012 —
David McLain, Colorado Construction LitigationWith payment problems in the construction economy having accelerated over the past few years, there has been a substantial increase in mechanic’s lien activity and associated litigation. The typical mechanic’s lien claimant is a material supplier, a trade subcontractor, or even a general contractor that has not been paid by the developer/owner of the construction project. The reason for filing a mechanic’s lien claim is that it offers the prospect in many cases to make the unpaid construction professional a priority creditor, with a lien on the real estate that is superior to the construction lender.
One of the primary rules governing a mechanic’s lien claim is that the creditor’s formal written “Notice of Intent to File a Mechanic’s Lien” (hereafter “Lien Notice”) must be (1) served on the owner of the property for which the work was done or the materials used, and (2) served at the same time on the general contractor who has handled the construction project. After the creditor has made service of the lien claim by USPS certified mail (using the green return receipt card for proof of service) or separate personal delivery of the notice to the property owner and general contractor, ten full days must pass (not including the date of mailing of the notices) before the lien notice is filed in the public records.
After ten days have expired following the date of mailing using certified mail, or personal delivery of the notice to the property owner and the general contractor, the lien notice can be filed to make the lien valid.
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David M. McLain, Higgins, Hopkins, McLain & Roswell, LLC.Mr. McLain can be contacted at
mclain@hhmrlaw.com
2019’s Biggest Labor and Employment Moves Affecting Construction
January 27, 2020 —
Micah Dawson - Construction ExecutiveThe construction industry is fueled by change, which is the only constant in life and construction. Still, continuous change makes compliance with state and federal laws and regulations more difficult.
While contractors may thrive on the frantic pace, sometimes it is good to look back and ensure they have an understanding of, and are complying with, the newest regulations and laws.
Top 10 Stories Dominating Employment Law in Construction
1. Trio of Federal Joint Employment Rules Expected in December 2019
Joint employment took center stage during the November 20, 2019 release of the Fall Regulatory Agenda, as three separate federal agencies announced plans to move forward with revised joint employment rules in December. While the Department of Labor and the National Labor Relations Board had already released versions of their draft rules, the Equal Employment Opportunity Commission also announced that it would weigh in on the topic before the end of 2019. As of January 10, 2020, the EEOC had not done so.
2. NLRB Tightens Union Access to Employer Property
In a ruling that levels the labor relations playing field, the NLRB ruled that employers could rightfully eject outside union representatives soliciting petition signatures from a shared shopping center parking area. When read in conjunction with an earlier 2019 decision conferring greater rights to limit on-premises union activity by abolishing the “public space” exception, the NLRB has significantly restricted union access to private employer property.
Reprinted courtesy of
Micah Dawson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Dawson may be contacted at
mdawson@fisherphillips.com
OSHA’s COVID-19 Emergency Temporary Standard Is in Flux
December 06, 2021 —
Megan E. Baroni & Jonathan H. Schaefer - Construction ExecutiveOn Friday, Nov. 5, 2021, Occupational Safety and Health Administration’s COVID-19 Vaccination and Testing Emergency Temporary Standard was issued, with most requirements set to go into effect on Dec. 5. The ETS applies to employers with a total of 100 or more employees company-wide. Employers covered by the ETS would be required to develop, implement and enforce a mandatory vaccination policy, subject to limited exemptions, or allow unvaccinated employees to test regularly and be subject to a mask policy, among other associated recordkeeping, reporting and training requirements.
Almost immediately, the ETS was hit with a number of legal challenges in various courts across the country. On November 6, just a day after the ETS was issued, the U.S. Circuit Court of Appeals for the Fifth Circuit issued an order staying the implementation of the ETS until further notice. The Court’s order was not a final ruling on the validity of the ETS but has halted implementation of the ETS, at least for the time being. Other legal challenges are already in process, further complicating the issue of if and when the ETS will become effective.
As of November 2021, the ETS is on hold, at least temporarily. That could change any day and the ETS could be back in effect, in whole or in part, or permanently halted. The legal challenges to the ETS are unlikely to end, or diminish, until the Supreme Court has weighed in, making for a few uncertain months ahead.
Reprinted courtesy of
Megan E. Baroni and Jonathan H. Schaefer, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Ms. Baroni may be contacted at mbaroni@rc.com
Mr. Schaefer may be contacted at jschaefer@rc.com
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Traub Lieberman Partners Ryan Jones and Scot Samis Obtain Affirmation of Final Summary Judgment
February 28, 2022 —
C. Ryan Jones & Scot E. Samis - Traub LiebermanTraub Lieberman Partners Ryan Jones and Scot Samis recently obtained affirmation of final summary judgment in favor of a windstorm and general insurance provider (“Insurer”) in the Florida First District Court of Appeal. The Appellant, a restoration service provider (“Restoration Service”), provided emergency mitigation services in the wake of hurricane damage to a residential home that was covered by an insurance policy issued by the Insurer. The Restoration Service invoiced the Insurer and, following an investigation, the Insurer paid a portion of the invoiced amount and invoked the policy’s appraisal clause to resolve the dispute over the difference. The Restoration Service brought suit against the Insurer, arguing that the appraisal process did not apply to mitigation services. The Insurer countered that it was entitled to resolve the claim by appraisal and, following arguments, the Court determined that the appraisal provision applied to mitigation services.
Reprinted courtesy of
C. Ryan Jones, Traub Lieberman and
Scot E. Samis, Traub Lieberman
Mr. Jones may be contacted at rjones@tlsslaw.com
Mr. Samis may be contacted at ssamis@tlsslaw.com
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Ivanhoe Cambridge Plans Toronto Office Towers, Terminal
October 01, 2014 —
Scott Deveau and Katia Dmitrieva – BloombergIvanhoe Cambridge, the real estate arm of the Caisse de depot et placement du Quebec, plans to build a C$2-billion ($1.8 billion) officer tower and bus terminal complex in Toronto’s financial district in partnership with regional transport authority Metrolinx.
Construction is expected to begin as early as spring 2015, with a new GO bus terminal set to open three years later, the parties said in a joint statement.
“We want this project to be iconic for Toronto through inspired design and intelligent integration of public transit with green spaces,” Daniel Fournier, chief executive officer of Montreal-based Ivanhoe Cambridge, said in the statement.
The total cost of the complex is expected to be C$2 billion, Fournier said at a press conference in Toronto.
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Scott Deveau and Katia Dmitrieva, BloombergMr. Deveau may be contacted at
sdeveau2@bloomberg.net