Conflict of Interest Accusations may Spark Lawsuit Against City and City Manager
February 07, 2014 —
Beverley BevenFlorez-CDJ STAFFCasper, Wyoming Councilman Craig Hedquist—who is also owner of Hedquist Construction—has been “accused of violating state and local conflict-of-interest laws,” according to the Star-Tribune. In response, Hedquist “is threatening a lawsuit against City Manager John Patterson, the city of Casper and ‘possibly others,’ according to a letter obtained by the Star-Tribune.”
The letter, which was sent to City Attorney William Luben by Hedquist attorney John Robinson, “demands the city preserve, from Aug. 1, 2012, on, all records of communication and consultation with attorneys and investigators, along with minutes, notes, recordings, executive sessions and digital data regarding Hedquist and Hedquist Construction.”
City Manager John Patterson told the Star-Tribune that “he was unaware of the letter and didn't know what the lawsuit might be about.”
Hedquist maintains that there was never a conflict of interest: “The general and expected practice for the Casper City Council members is to not vote on matters in which a council member may have a personal interest and record this recusal in the public record,” Hedquist said, as reported by the Star-Tribune. “I have done this on all contract matters regarding Hedquist Construction.”
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Effective October 1, 2019, Florida General Contractors Have a Statutory Right to Recovery of Attorney Fees Against a Defaulted Subcontractor’s Surety
July 01, 2019 —
Warren E. Friedman - Peckar & Abramson, P.C.Florida contractors will soon have a level playing field, at least related to the right to recovery of attorney fees in certain circumstances. Effective October 1, 2019, the Florida statute by which legal fees may be recovered from insurers and sureties was amended to expressly afford that right to contractors.
Florida’s Insurance statute, Chapter 627, affords a right to recovery of attorney fees when a judgment is obtained against an insurer and in favor of any insured pursuant to a policy or contract executed by the insurer. See Fla. Stat. § 627.428. In the construction context, the Florida Legislature has also applied this right to the recovery of attorney fees from sureties, for example in circumstances where suit is brought against a surety under a payment or performance bond. See Fla. Stat. § 627.756.
But there was an oddity to this statute – it specifically provided this right for “owners” and “subcontractors”, but “contractors” were skipped over. For as long as Section 627.756, Florida Statutes has been on the books, the right to recovery of attorney fees against a surety under a payment or performance bond was only afforded to owners, subcontractors, laborers, and materialmen. Specifically, since at least 1977, Section 627.756, Florida Statutes substantially provided as follows (emphasis added):
Section 627.428 applies to suits brought by
owners, subcontractors, laborers, and materialmen against a surety insurer under payment or performance bonds written by the insurer under the laws of this state to indemnify against pecuniary loss by breach of a building or construction contract. Owners, subcontractors, laborers, and materialmen shall be deemed to be insureds or beneficiaries for the purposes of this section.
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Warren E. Friedman - Peckar & Abramson, P.C.Mr. Friedman may be contacted at
wfriedman@pecklaw.com
How Artificial Intelligence Can Transform Construction
February 22, 2021 —
Jeff Rubenstone - Engineering News-RecordArtificial intelligence and machine-learning algorithms have struggled to make sense of chaotic construction jobsites, but recent years have seen industry firms build the vast data lakes and analytics systems necessary for these machines to provide useful advice on how to plan, schedule and execute projects. In some cases, these AI advisors have become a standard part of some firms’ project delivery methods. But it’s still a challenge to convince construction professionals to listen to these AI advisors, and there are emerging questions of how risk will be allocated once algorithm-driven decisions start to steer projects.
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Jeff Rubenstone, Engineering News-Record
Mr. Rubenstone may be contacted at rubenstonej@enr.com
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Coverage Doomed for Failing Obtain Insurer's Consent for Settlement
January 22, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe Fourth Circuit affirmed the district court's determination that there was no duty to indemnify after the insured settled without consent of the insurer. Perini/Tompkins Joint Venture v. ACE American Ins. Co., 2013 U.S. App. LEXIS 24865 (4th Cir. Dec. 16, 2013).
The insured, a joint venture, was hired as manager for the construction of a $900 million hotel and convention center. OCIP and excess policies were obtained through ACE. The project was also insured by a Builders Risk Policy through Factory Mutual Insurance Company.
During construction, a rod eroded, causing the atrium to collapse. Substantial property damage occurred and the completion of the project was delayed for several months.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Newmeyer & Dillion Attorneys Selected to Best Lawyers in America© Orange County and as Attorneys of the Year 2018
August 17, 2017 —
Newmeyer & Dillion LLPNEWPORT BEACH, Calif. – AUGUST 17, 2017 – Prominent business and real estate law firm Newmeyer & Dillion LLP is pleased to announce that nine of the firm’s attorneys were recently recognized in their respective areas in The Best Lawyers in America© 2018. Two attorneys, Gregory Dillion and Thomas Newmeyer, also have been selected as an Orange County "Lawyer of the Year." Attorneys named to The Best Lawyers in America, include:
Jason M. Caruso |
Personal Injury Litigation, Product Liability Litigation |
Michael S. Cucchissi |
Real Estate Law |
Gregory L. Dillion |
Commercial Litigation, Construction Law, Insurance Law, Litigation – Construction, Litigation – Real Estate |
Jeffrey M. Dennis |
Insurance Law |
Joseph A. Ferrentino |
Litigation – Construction, Litigation – Real Estate |
Thomas F. Newmeyer |
Commercial Litigation, Construction Law, Litigation – Real Estate |
John A. O'Hara |
Litigation – Construction |
Bonnie T. Roadarmel |
Insurance Law |
Carol Sherman Zaist |
Commercial Litigation |
Additionally, Gregory Dillion was selected as the Orange County Construction Litigation "Lawyer of the Year" and Thomas Newmeyer was selected as the Orange County Construction Law "Lawyer of the Year."
Best Lawyers is the oldest peer-review publication within the legal profession with a history of over 30 years. Attorneys are selected through intensive peer-review surveys in which leading lawyers evaluate their professional peers. Their listings are published in 75 countries worldwide and are recognized for their reliable and unbiased selections. Newmeyer & Dillion is immensely proud of these lawyers and looks forward to their future endeavors.
About Newmeyer & Dillion
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com.
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A Court-Side Seat: May Brings Federal Appellate Courts Rulings and Executive Orders
June 29, 2020 —
Anthony B. Cavender - Gravel2GavelHere are a few interesting new rulings from the federal appellate courts.
COURT ORDERS
Like a Good Neighbor …? —
State of Maryland v. EPA
On May 19, 2020, the D.C. Circuit decided a Clean Air Act case involving the use of the “Good Neighbor Provision” of the Act, which is triggered when one state has a complaint about emissions generated in a neighboring upwind state that settle in the downwind state. Here, Maryland and Delaware filed petitions with EPA seeking relief from the impact of emissions from coal-fired power plants that allegedly affect their states’ air quality. EPA largely denied relief, and the court largely upheld the agency’s use and interpretation of the Good Neighbor Provision. The opinion is valuable because of its clear exposition of this complicated policy.
A Volatile Underground Issue —
Wayne Land and Mineral Group v. the Delaware River Basin Commission
Also on May 19, 2020, the U.S. Court of Appeals for the Third Circuit issued a ruling involving the Delaware River Basin Commission. Established in 1961, the Commission oversees and protects the water resources in the Basin. Not long ago, the Executive Director of the Commission, citing a rule of the Commission, imposed very strict limitations on fracking operations in the Basin. This decision has been very controversial with the Third Circuit opining that the Commission’s authority to regulate fracking operations—thought to be a province of state authority—was not clear-cut. In this case, three Pennsylvania state senators filed motions to intervene in the case, but the lower court rejected their request. The Third Circuit has directed the lower court to take another look at their standing to participate in this litigation. This is a volatile issue in Pennsylvania.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Estimate Tops $5.5B for Cost of Rebuilding After Maui Fires
August 21, 2023 —
James Leggate - Engineering News-RecordRebuilding after wildfires on the island of Maui in Hawaii could cost more than $5.5 billion, according to a preliminary assessment prepared by the University of Hawaii Pacific Disaster Center and local officials.
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James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
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U.S. Navy Sailors Sue Tokyo Utility Company Over Radiation Poisoning
April 09, 2014 —
Beverley BevenFlorez-CDJ STAFFIn a one billion dollar lawsuit, U.S. Navy sailors contend that they “suffered massive doses of radiation” from the Fukushima Dia-ichi nuclear power plant in Toyko, Japan while stationed on the USS Ronald Reagan, reported the Orange County Register. A tsunami (caused by a 9.0 earthquake) flooded the plant, “cutting off electrical power and disabling backup generators.” The USS Reagan was sent to provide aid, but the plant then “blew up” before they arrived.
“Sailors on the flight deck said they felt a warm gust of air, followed by a sudden snow storm: radioactive steam,” according to the Orange County Register. “Freezing in the cold Pacific air. Blanketing their ship.”
However, the Orange County Register posed the question, “Could the Reagan – one of the most advanced nuclear aircraft carriers in the U.S. fleet – really not know that it was being showered with massive doses of radiation?” TEPCO, the company being sued by the sailors, answered that it’s “wholly implausible.”
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