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California Supreme Court Finds that When it Comes to Intentional Interference Claims, Public Works Projects are Just Different, Special Even

November 21, 2017 — Garret Murai - California Construction Law Blog
Originally published by CDJ on April 20, 2017 Earlier, we reported on a California Court of Appeals decision – Roy Allan Slurry Seal, Inc. v. American Asphalt South, Inc. – which held for the first time that a second-place bidder on a public works contract could sue a winning bidder who failed to pay its workers prevailing wages, under the business tort of intentional interference with prospective economic advantage. Fast forward nearly two years, several amicus briefs, and “one doghouse”* later and the California Supreme Court has . . . reversed. The Roy Allan Slurry Seal Case To catch you up, or rather, refresh your recollection . . . Between 2009 and 2012, American Asphalt South, Inc. was awarded 23 public works contracts totaling more than $14.6 million throughout Los Angeles, Orange, San Bernardino and San Diego counties. Two of the losing bidders on those projects – Roy Allan Slurry Seal, Inc. and Doug Martin Contracting, Inc. – sued American in each of these counties for intentional interference with prospective economic advantage as well as under the Unfair Practices Act (“UPA”) (Bus. & Prof. Code §§ 17000 et seq.) and the Unfair Competition Law (“UCL”) (Bus. & Prof. Code §17200). Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

House Committee Kills Colorado's 2015 Attainable Housing Bill

May 07, 2015 — Derek Lindenschmidt – Higgins, Hopkins, McLain & Roswell, LLC
Senate Bill 177, the Colorado housing community’s effort to reinvigorate the construction of attainable multi-family housing and quell construction defect lawsuits, was killed by the House State, Veterans and Military Affairs Committee on Monday evening on a party-line vote. Although the bill received significant bipartisan support in the Senate, a broad coalition of municipalities, builders, contractors, and non-profit organizations was unable to convince a pre-determined “kill” committee of the merits and benefits of the bill. Read the court decision
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Reprinted courtesy of Derek Lindenschmidt, Higgins, Hopkins, McLain & Roswell, LLC
Mr. Lindenschmidt may be contacted at lindenschmidt@hhmrlaw.com

The G2G Year-End Roundup (2022)

January 04, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
Our year-end roundup highlights the top-read Gravel2Gavel posts from 2022. Our authors addressed the legal implications for a variety of hot topics and market disruptions, providing deep industry insights that spanned Metaverse real estate investments, economic sanctions in Russia, and cybersecurity for smart buildings.

NFT Use Cases in Real Estate by Megan L. Jones and David W. Wright. The authors discuss how entrepreneurs are searching for new industries to disrupt utilizing the advantages offered by NFTs and blockchain more generally, with many turning their heads towards real estate.
Commercial Real Estate Brokerages in an Uncertain Russian Market by Cait Horner and Adam J. Weaver. The authors discuss how several commercial real estate firms joined the list of companies temporarily suspending—or outright terminating—property and facility management operations in Russia amid economic sanctions and mounting international pressure.

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Contractor Definition Central to Coverage Dispute

July 22, 2024 — Stacy R. Goldscher & Tracy M. Lewis - Wood Smith Henning & Berman
How do you define the term "contractor?" In the case of California Specialty Insulation Inc. v. Allied World Surplus Lines Insurance Company, No. B324805 (2024), the court ultimately honored the reasonable expectations of the insured and ordered that the insurer defend and indemnify in an underlying suit stemming from the policy. This case involves a commercial general liability insurance policy issued by Allied World Surplus Lines Insurance Company (Allied) to California Specialty Insulation, Inc. (CSI). The central issue is whether Allied World is obligated to defend and indemnify CSI against a negligence claim stemming from a construction site accident. The dispute hinges on the interpretation of a policy exclusion for bodily injury to employees of any "contractor," a term not defined in the policy. Factual Background In 2017 Air Control Systems. Inc. (Air Control) was contracted to perform improvement work at a Los Angeles building and subsequently hired CSI to install duct insulation. In 2019, Jason Standiford, and Air Control employee, filed a negligence lawsuit against CSI, alleging injuries from a 2017 incident where a CSI employee allegedly drove a scissor lift into a ladder Standiford was on, causing him to fall. CSI requested Allied World to defend it in the Standiford lawsuit. Initially, Allied World accepted the defense, but later withdrew, citing the Contractor Exclusion in the policy. CSI filed for declaratory relief, leading to cross-motions for summary judgment. The trial court ruled in favor of CSI, finding the term contractor ambiguous and construing it in CSI's favor. Allied World appealed the decision. Reprinted courtesy of Stacy R. Goldscher, Wood Smith Henning & Berman and Tracy M. Lewis, Wood Smith Henning & Berman Ms. Goldscher may be contacted at sgoldscher@wshblaw.com Ms. Lewis may be contacted at tlewis@wshblaw.com Read the court decision
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How Construction Contracts are Made. Hint: It’s a Bit Like Making Sausage

October 07, 2016 — Garret Murai – California Construction Law Blog
Construction can be a messy affair. In a sense, that’s to be expected when you’re building a complex structure, involving the coordination of several parties and numerous persons, in the natural environment and in the elements, subject to an increasing array of laws, regulations, ordinances and codes, and often at the cost of hundreds if not billions of dollars. So too can construction contracts. There’s the plans, the specifications, the general conditions, the special conditions, the addenda, the prime contract, the subcontracts, the purchase orders, and the change orders, to name just a few of the documents which bind parties, which should ideally be consistent and complimentary with one another, when the reality is that the parties bound to those contracts often have very different interests. Perhaps the analogy goes a little too far afield, but it makes the point, that it can sometimes be a bit like making sausage. The next case, Watson Bowman Acme Corporation v. RGW Construction, Inc., California Court of Appeals for the Fifth District, Case No. F070067 (August 9, 2016), highlights the problems which can arise from the numerous documents which make up the typical construction contract today and the lengths that juries and judges must go to interpret what those agreements mean. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel, Rosen, Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

6 Ways to Reduce Fire Safety Hazards in BESS

January 02, 2024 — The Hartford Staff - The Hartford Insights
Renewable energy sources, such as solar and wind, are projected to generate 44% of all power in the U.S. by 2050, which is increasing the need for battery energy storage systems (BESS).1 BESS are electrochemical devices that collect energy from a power grid, power plant or renewable source, hold it, and then discharge that energy later to provide electricity on demand. “A BESS does not itself create or produce energy, it is a storage system. The energy is produced by other means, including different types of renewable sources. Think of a cellphone – you charge it overnight and then it runs throughout the day off that battery power,” says Stacie Prescott, head of energy for middle and large commercial at The Hartford. Read the court decision
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Reprinted courtesy of The Hartford Staff, The Hartford Insights

A Court-Side Seat: Flint Failures, Missed Deadlines, Toad Work and a Game of Chicken

October 05, 2020 — Anthony B. Cavender - Gravel2Gavel
The last few weeks have yielded a number of interesting developments in the Federal courts. FEDERAL COURTS OF APPEAL In re Flint Water Cases Several local and State of Michigan officials, including the former governor, requested dismissal from the civil litigation seeking damages for the massive failure of Flint, Michigan’s public drinking water system. On August 5, 2020, the U.S. Court of Appeals for the Sixth Circuit agreed that the plaintiffs, residents of Flint, have successfully pled a case that the conduct of the defendants so “shocked the conscience” that a claim for a violation of their substantive due process rights was appropriately alleged. The defendants, including the former governor, argued that they were entitled to a qualified immunity defense. The court rejected this argument on the basis of the earlier decisions made by the court in this matter. Judge Sutton concurred because he was bound by this precedent, but remarked that the evidence for the governor’s culpability was very thin; he was not intimately connected to the extraordinary error in judgment. The majority was very upset with this concurrence as indicted by their own opinion. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

PSA: Virginia DOLI Amends COVID Workplace Standard

October 18, 2021 — Christopher G. Hill - Construction Law Musings
As the governmental response to COVID-19 evolves, so do the various standards that apply to employers. Effective September 8, 2021, the Virginia Department of Labor and Industry superseded its earlier permanent workplace standard with a new standard. In many ways, the new standard simplifies compliance because it gets rid of what I believed to be overly confusing workplace classifications into risk levels and simply applies the new standard to all workplaces regardless of how they would have been classified. Some key points to keep in mind regarding the new standard are the following (with the recommendation that all employers read and understand the text of the standard):

Masks: All unvaccinated employees must wear masks in all public, common, or shared workspaces with certain exceptions. These exceptions include when an employee is alone in a room/office, when eating, certain medical conditions, and where it is important that the mouth can be seen (such as communication with the deaf). Vaccinated employees need not mask up unless working in a high or substantially transmission area per the CDC Data Tracker.
Vaccination Requirement: As of now, the DOLI does not require employee vaccinations. However, employers will need to have a way to determine vaccination status to comply with other parts of the standard.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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