Saudi Prince’s Megacity Shows Signs of Life
September 03, 2019 —
Vivian Nereim & Donna Abu-Nasr - BloombergThe walls are covered with graffiti in the sleepy fishing village of Khurayba. There are supplications to God, advertisements for vacation rentals and house painters. Near the local school, there’s a scribbled plea: “Open the windows of hope and drive out the despair.”
It’s here in northwest Saudi Arabia that Crown Prince Mohammed bin Salman wants investors to put their money to realize his $500 billion vision for the region. Called “Neom,” it promises to be the most freewheeling part of the kingdom, with state-of-the-art resorts and smart technologies run by robots.
But it’s also here where the risks to the 33-year-old prince’s grand plan for his country are writ large. Neom is the boldest pillar of a social and economic transformation that so far has seen at least as many delays as successes. Indeed, the question since the prince announced the vast development at an extravaganza in 2017 has been whether it can become a reality.
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Vivian Nereim & Donna Abu-Nasr, Bloomberg
When to Withhold Retention Payments on Private or Public Projects
August 29, 2018 —
Nicholas Karkazis - Gordon & Rees Construction Law BlogTo ensure that construction contractors and subcontractors receive timely progress and retention payments, the California Legislature enacted statutes that impose deadlines and penalties on owners and direct (general) contractors who delay payments. (Cal. Civ. Code, §§ 8800, 8802, 8812, 8814; Pub. Contract Code, §§ 7107, 10262.5; Bus. & Prof. Code, § 7108.5.) However, there is an exception to these deadlines and penalties on both private and public projects. The exception allows an owner or direct contractor to withhold payment1 when there is a good faith dispute between an owner and a direct contractor or between a direct contractor and a subcontractor. (Civ. Code, §§ 8800, subd. (b), 8802, subd. (b), 8812, subd. (c), 8814, subd. (c); Pub. Contract Code, §§ 7107, subds. (c), (e), 10262.5, subd. (a); Bus. & Prof. Code, § 7108.5, subd. (a).)
But the term “good faith dispute” has been a source of confusion where direct contractors owe subcontractors retention payments, but want to withhold the payment because of a dispute.2 California appellate courts were split, with one court finding that any type of bona fide dispute justified withholding, and another finding that only disputes related to the payment itself justified withholding. (Compare Martin Brothers Construction, Inc. v. Thompson Pacific Construction, Inc. (2009) 179 Cal.App.4th 1401 [any bona fide dispute could justify withholding] with East West Bank v. Rio School Dist. (2015) 235 Cal.App.4th 742 [disputes related to the payment itself may justify withholding].) In May 2018, the California Supreme Court clarified that for a direct contractor to withhold a retention payment on a private project, the good faith dispute must somehow relate to the payment itself. (United Riggers & Erectors, Inc. v. Coast Iron & Steel Co. (2018) 4 Cal.5th 1082, 1097-1098.)
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Nicholas Karkazis, Gordon & Rees Scully MansukhaniMr. Karkazis may be contacted at
nkarkazis@grsm.com
Netflix Plans $900M Facility At Former New Jersey Army Base
January 23, 2023 —
The Associated Press (Wayne Parry) - Bloomberg(AP) -- Netflix said Wednesday it plans to build a state-of-the-art production facility at a former Army base at the Jersey Shore that will cost more than $900 million, and create thousands of jobs.
The subscription video streaming company will pay $55 million for a 292-acre site on the former Fort Monmouth military base in Eatontown and Oceanport.
The California-based company plans an additional $848 million worth of investments in 12 sound stages and for other uses related to the film industry.
“We’re thrilled to continue and expand our significant investment in New Jersey and North America,” said Ted Sarandos, the company's co-CEO and chief content officer. “We believe a Netflix studio can boost the local and state economy with thousands of new jobs and billions in economic output, while sparking a vibrant production ecosystem in New Jersey.”
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Bloomberg
While You Were Getting Worked Up Over Oil Prices, This Just Happened to Solar
October 29, 2014 —
Tom Randall – BloombergEvery time fossil fuels get cheaper, people lose interest in solar deployment. That may be about to change.
After years of struggling against cheap natural gas prices and variable subsidies, solar electricity is on track to be as cheap or cheaper than average electricity-bill prices in 47 U.S. states -- in 2016, according to a Deutsche Bank report published this week. That’s assuming the U.S. maintains its 30 percent tax credit on system costs, which is set to expire that same year.
Even if the tax credit drops to 10 percent, solar will soon reach price parity with conventional electricity in well over half the nation: 36 states. Gone are the days when solar panels were an exotic plaything of Earth-loving rich people. Solar is becoming mainstream, and prices will continue to drop as the technology improves and financing becomes more affordable, according to the report.
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Tom Randall, BloombergMr. Randall may be contacted at
trandall6@bloomberg.net
California Supreme Court Rights the “Occurrence” Ship: Unintended Harm Resulting from Intentional Conduct Triggers Coverage Under Liability Insurance Policy
June 13, 2018 —
Scott S. Thomas - Payne & Fears Legal AlertSUMMARY
In a ruling that bodes well for policyholders, the California Supreme Court provides much-needed clarity on the question of when a so-called "intentional act" may give rise to insurance coverage under a liability insurance policy. In Liberty Surplus Insurance Corp. v. Ledesma & Meyer Construction Co., Case No. S23765 (Cal. June 4, 2018), the Court holds that an employer's potential liability for negligent hiring, after its employee allegedly abused a 13-year old student, is the result of an "occurrence" and is thus covered under the employer's liability insurance policy.
COURT OPINION
The court's opinion dispels the misguided notion that an intentional act resulting in unintended harm is never an "occurrence" and can never trigger coverage. What matters, according to the Court, is that, from the insured's point of view, the consequences of its conduct are "unexpected, unforeseen, or undesigned" - even if the conduct is intentional. And in a concurring opinion, Justice Liu rightfully questions the legitimacy of the notion that intentional conduct cannot trigger coverage, even when it produces an unintended result, unless, in the words of a 1989 appellate court decision, some "additional, unexpected, independent, and unforeseen happening occurs that produces the damage." As Justice Liu explains, this intervening "happening" may be something as simple as the insured's mistaken belief that he was acting in self-defense, or that the victim had consented to the insured's conduct. This much-needed clarification restores vitality to the fundamental principle that injuries are "accidental" when they are "unexpected, unforeseen, or undesigned," regardless of their cause.
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Scott S. Thomas, Payne & FearsMr. Thomas may be contacted at
sst@paynefears.com
Angela Cooner Receives Prestigious ASA State Advocate Award
April 12, 2021 —
Angela Cooner - Lewis BrisboisPhoenix Partner Angela L. Cooner recently received the American Subcontractors Association, Inc. (ASA) 2020 State Advocate award during ASA’s Virtual Awards Presentation, which took place on February 25. ASA selected Ms. Cooner as the recipient of this honor based upon the significant time that she spent and value she added to subcontractor advocacy in Arizona over the last year.
In nominating Ms. Cooner for this award, ASA of Arizona stated, “Angie’s dedication and track record are second to none. However, it is her leadership in managing the recent merger between the Arizona State Contractors’ Coalition (AZSCC) and Arizonans for Fair Contracting (AFC) where she has distinguished herself most notably.” Moreover, ASA explained that Ms. Cooner’s dedication “has allowed ASA of Arizona to renegotiate a new contract with a government affairs firm that helped secure victory on a critical proportional liability bill and begin the upcoming legislative session on the right foot.” According to ASA, Ms. Cooner has donated the equivalent of $120,000 in billable hours to the organization through her work for AFC and as legal counsel for ASA of Arizona’s Board of Directors.
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Angela Cooner, Lewis BrisboisMs. Cooner may be contacted at
Angela.Cooner@lewisbrisbois.com
Construction Project Bankruptcy Law
February 05, 2014 —
Beverley BevenFlorez-CDJ STAFFGarret Murai, on the California Construction Law Blog, discusses the ins and outs of bankruptcy in construction projects. Murai discusses “bankruptcy basics” and answers questions regarding filing for project owners, general contractors, and subcontractors.
Murai explained the importance of learning about how bankruptcy affects construction projects: “Bankruptcy on a construction project is one of the biggest fears for owners and contractors. At best it can slow down a project and at worst it can cause a domino effect of bankruptcies as contractors and suppliers aren’t paid, causing the entire project to fail.”
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No Coverage for Negligent Misrepresentation without Allegations of “Bodily Injury” or “Property Damage”
February 10, 2012 —
Tred R. Eyerly - Insurance Law HawaiiJeff City Industries was the general contractor for a sewer system improvement project in Branson, Missouri. Bituminous Cas. Corp. v. United HRB Gen. Contractors, Inc., 2011 U.S. Dist. LEXIS 145666 (W.D. Mo. Dec. 19, 2011). Branson sued Jeff City, alleging breach of the construction contract for the project. The claims included improperly bedded sewer piping, improper aligning portions of trenching for the sewer piping, improper service line connections to the sewer piping, etc.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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