Fraud, the VCPA and Construction Contracts
November 26, 2014 —
Christopher G. Hill – Construction Law MusingsI’ve discussed the economic loss rule here at Musings on several occasions. The economic loss rule basically states that where one party assumes a duty based in contract or agreement, the Virginia courts will not allow a claim for breach of that duty to go forward as anything but a contract claim. This doctrine makes fraud claims nearly, though not absolutely, impossible to maintain in a construction context. In a majority of instances, fraud and construction contracts are very much like oil and water, leaving parties to fight it out over the terms of a particular contract despite actions by one party or the other that non-lawyers would clearly see as fraud.
However, a recent case decided by the Virginia Supreme Court gives at least some hope to those who are seemingly fooled into entering a contract that they would not other wise have entered into. In Philip Abi-Najm, et. al, v Concord Condominium, LLC, several condominium purchasers sued Concord under for breach of contract, breach of the Virginia Consumer Protection Act (VCPA) and for fraud in the inducement based upon flooring that Concord installed that was far from the quality stated in the purchase contract. Based upon these facts, the Court looked at two questions: 1. Did a statement in the contract between Concord and the condo buyers create a situation in which the merger doctrine barred the breach of contract claim, and 2. Did the economic loss rule bar the VCPA and fraud claims?
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Lasso Needed to Complete Vegas Hotel Implosion
February 18, 2015 —
Beverley BevenFlorez-CDJ STAFFThe Miami Herald reported that “demolition workers used an Old West method on Tuesday to finish an incomplete casino implosion in Las Vegas.”
The Clarion Hotel and Casino owner Lorenzo Doumani told the Miami Herald that “[t]hey lassoed the building with steel cables, got a crane, and pulled and pulled and pulled.”
Burke Construction used a 2-ton explosive punch to bring the structure down, however, the concrete building dropped four stories but remained upright.
Burke Construction’s corporate safety coordinator, Anthony Schlect, told the Miami Herald that he was investigating the incident.
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District Court Allows DBE False Claims Act Case to Proceed
February 23, 2017 —
Wally Zimolong – Supplemental ConditionsLast week, I posted about how whistleblowers continue to receive large settlements related to DBE fraud. A somewhat recent case from the federal court in Maryland shows how whistleblowers are ferreting out DBE fraud on construction projects receiving any form of federal funding.
The Case
The case involves a bridge painting project in Maryland that was let by the Maryland State Highway Administration. The contract required the prime contractor to meet a 15% DBE participation goal. The prime contractor submitted a bid stating it would have 15.12% DBE participation. After it was awarded the contract, the prime contractor – as is typical – submitted additional forms certifying to the MSHA that 15.12% of its contract price would be performed by a DBE firm. The prime contractor indicated that one DBE subcontractor, Northeast Work and Safety Boats, LLC (“NWSB”), would perform the 15.12% of the work.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Congratulations to BWB&O’s 2023 Super Lawyers Rising Stars!
June 26, 2023 —
Bremer Whyte Brown & O'Meara LLPBWB&O is excited to announce Partner
Courtney Serrato and Associates
Andrew Arakelian,
Pamchal Deylami, and
Brian Taylor have been selected in the 2023 Southern California Super Lawyers list as Rising Stars for their work in Family Law and Civil Litigation. To read Super Lawyers’ digital publication, please click
here.
Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The objective of Super Lawyers’ patented multiphase selection process is to create a credible, comprehensive, and diverse listing of outstanding attorneys that can be used as a resource for attorneys and consumers searching for legal counsel. Please join us in congratulating Courtney, Andrew, Pamchal, and Brian on achieving this level of recognition!
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Bremer Whyte Brown & O'Meara LLP
NYC’s First Five-Star Hotel in Decade Seen at One57 Tower
July 02, 2014 —
Heather Perlberg – BloombergHyatt Hotels Corp. (H) is seeking to make its Park Hyatt New York, opening next month at the base of the ultra-luxury One57 condominium tower, Manhattan’s first new five-star hotel in more than a decade.
The 25-floor property is making its debut on West 57th Street in the area known as Billionaires Row for its residential skyscrapers with apartments costing tens of millions of dollars. Plans for the Park Hyatt call for 210 guest rooms starting at $795 a night, spa-treatment suites with private balconies, and amenities such as an indoor pool with underwater speakers that pipe in music from neighboring Carnegie Hall.
Hyatt is seeking a competitive edge in Manhattan, where it already operates seven properties, none rated five stars, said Steve Haggerty, global head of real estate and capital strategy for the Chicago-based company. The new Park Hyatt would be the city’s first hotel with the coveted distinction since 2003, when the Mandarin Oriental opened in the nearby Time Warner Center. Since then, most growth in the city’s lodging market has been in the select-service category, hotels that offer few amenities and cost less to operate.
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Heather Perlberg, BloombergMs. Perlberg may be contacted at
hperlberg@bloomberg.net
2021 Executive Insights: Leaders in Construction Law
August 16, 2021 —
Donald Berry - Construction ExecutiveGregory Cokinos, President and CEO, Cokinos | Young
First, experience in the construction industry is of primary importance and vital to successfully negotiating construction contracts and handling construction claims and disputes. Even a mildly complex construction dispute is more than most non-construction lawyers can properly handle. Issues concerning scheduling, productivity, change management and risk shifting (among many others) are complex and unique to construction and can be further complicated by the procedural and substantive law that differs from jurisdiction to jurisdiction.
Second, it is essential that your law firm has a culture of representing construction professionals. Understanding construction nomenclature and how construction projects are staffed, organized and documented saves time and money in an already expensive and time-consuming process.
You cannot overstate the advantage of shared resources within an established construction firm when evaluating and handling construction matters. A law firm that dedicates a significant portion of its practice to the construction industry is uniquely positioned to realize this advantage. Finally, as I tell our young lawyers, “success” only comes before “work” in the dictionary. Hard work is the key to successfully negotiating a contract or executing a litigation plan in this complex industry. So, look for a firm that is not afraid of working long days and weekends to achieve success.
Reprinted courtesy of
Donald Berry, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Real Estate & Construction News Round-Up 04/13/22
April 25, 2022 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogPhishing schemes target the mortgage industry, housing prices rise in Europe as Ukrainian refugees flee from their home country, the SEC announces new climate change regulations that will impact commercial real estate, and more.
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Pillsbury's Construction & Real Estate Law Team
Sometimes You Get Away with Unwritten Contracts. . .
July 28, 2018 —
Christopher G. Hill - Construction Law MusingsI have spoken often regarding the need for a well written construction contract that sets out the “terms of engagement” for your construction project. A written construction contract sets expectations and allows the parties to the contract to determine the “law” of their project. An unwritten “gentleman’s agreement” can lead to confusion, faulty memories, and more money paid to construction counsel than you would like as we lawyers play around in the grey areas.
One other area where the written versus unwritten distinction makes a difference is in the calculation of the statute of limitations. In Virginia, a 5 year statute of limitations applies to written contracts while a 3 year statute of limitations applies to unwritten contracts. This distinction came into stark relief in the case of M&C Hauling & Constr. Inc. v. Wilbur Hale in the Fairfax, Virginia Circuit Court. In M&C Hauling, M&C provided hauling services to the defendant through a subcontract with Hauling Unlimited in 2014, the last of which was in July. M&C provided over 2000 hours of hauling and provided time tickets (that were passed to Mr. Hale on Hauling Unlimited letterhead and signed by Mr. Hale or his agent) and an invoice stating the price term of $75.00 per hour. No separate written contract between M&C and Hauling Unlimited or Mr. Hale existed.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com