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DIRECTORY AND CAPABILITIES

Nevada Supreme Court to Decide Fate of Harmon Towers

June 28, 2013 — CDJ STAFF
The Nevada Supreme Court started hearings on Tuesday, June 4 over the fate of Harmon towers. MGM Resorts is hoping to obtain permission from the court to tear down the tower, which they claim could collapse should an earthquake strike Las Vegas. Perini Corp, the builder, wants the building to remain standing in order to support their claim that the building’s flaws are through design and not construction errors. KLAS quoted one of Perini’s lawyers claiming that MGM had pursued a media strategy to prejudice potential jurors against the contractor. “CityCenter hired Cedric and Bunting to place advertisements with the media to win the hearts and minds of the community and to convince the public pretrial that Perini was, quote, ‘scum of the earth.’” If the Supreme Court gives the go-ahead, demolition would begin soon. Still pending, is the $500 lawsuit over the allegations of construction defects. Read the court decision
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Illinois Town Sues over Construction Defects at Police Station

October 08, 2013 — CDJ STAFF
The Chicago suburb of Northlake has filed a lawsuit against the designers and builders of its police station, claiming that the building leaks due to design and construction flaws. The building was finished in 2009 and flooded in 2010, 2011, and 2013. Northlake mayor Jeffrey Sherwin said that “a building that’s flooded three times in three years is kind of extreme.” In addition to requiring the replacement of carpet and drywall, the flooding disrupted police service and damaged both police and personal property. Mr. Sherwin noted that the city has tried to settle with the architects and contractors, but no settlement had been Read the court decision
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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 Alert
SUMMARY 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. Read the court decision
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Reprinted courtesy of Scott S. Thomas, Payne & Fears
Mr. Thomas may be contacted at sst@paynefears.com

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When a Request for Equitable Adjustment Should Be Treated as a Claim Under the Contract Disputes Act

August 29, 2022 — David Adelstein - Florida Construction Legal Updates
In federal contracting, contractors are sometimes torn about submitting a request for equitable adjustment (known as an “REA” under 48 C.F.R. 252.243-7002) or submitting a formal claim under the Contract Disputes Act (41 U.S.C. s. 7103), the latter requiring a final decision by the contracting officer and starts the clock with respect to interest and preserving rights. It is also sometimes not easy for the contracting officer receiving an REA to determine whether the REA is actually a claim under the Contract Disputes Act requiring more immediate action. This recent take by the United States Court of Appeals for the Federal Circuit hits the nail on the head:

We recognize that contracting officers will sometimes face the difficult challenge of determining whether a request for equitable adjustment is also a claim. Contractors must choose between submitting a claim—which starts the interest clock but requires the contracting officer to issue a final decision within 60 days—and submitting a mere request for equitable adjustment—which does not start the interest clock but gives the contractor more time to negotiate a settlement and possibly avoid hefty legal fees. The overlap between these two types of documents might create room for gamesmanship. For example, a contractor could submit a document that is a claim—starting the interest clock—but appears to be a mere request for equitable adjustment—causing the contracting officer to not issue a final decision within the 60-day deadline and allowing interest to accrue for months or years. But the government has tools to address this challenge: The contracting officer can communicate to the contractor that she is going to treat the document as a claim and issue a final decision within 60 days. Or the government can explicitly require the contractor to propose settlement terms and attempt to settle disputes before submitting a claim to the contracting officer for a final decision.

Zafer Construction Company v. U.S., 2022 WL 2793596, *5 (Fed.Cir. 2022).

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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London Shard Developer Wins Approval for Tower Nearby

November 05, 2014 — Neil Callanan - Bloomberg
Sellar Property Group, developer of the Shard in London, won local government approval to build a 26-story residential tower close to the skyscraper on the south bank of the River Thames. The council for the Southwark borough voted in favor of the 148-apartment project, which also includes a 16-story tower, at a meeting yesterday, Sellar spokesman Baron Phillips said by e-mail. The project, like the Shard, will be developed in a partnership with the state of Qatar. Developers plan to construct more than 25,000 luxury properties in London worth more than 60 billion pounds ($96 billion) over the next decade, EC Harris said in an Oct. 7 report. The homes approved yesterday at the Fielden House site are expected to sell for about 800,000 pounds each, according to a filing by the borough. Read the court decision
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Reprinted courtesy of Neil Callanan, Bloomberg
Mr. Callanan may be contacted at ncallanan@bloomberg.net

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Why Ethiopia’s $5 Billion Dam Has Riled Its Neighbors

September 12, 2022 — Samuel Gebre & Fasika Tadesse - Bloomberg
Ethiopia has been at loggerheads with downstream neighbors Egypt and Sudan for years over a $5 billion mega-dam it’s building on the Nile River. A third phase of filling a 74 billion cubic-meter (2.6 trillion cubic-foot) reservoir behind the Grand Ethiopian Renaissance Dam was completed in August, a process that’s reignited tensions. Egypt has described the unilateral action as a violation of international law and its foreign minister, Sameh Shoukry, wrote to the United Nations Security Council in July, reiterating its objections and accusing Ethiopia of derailing attempts to resolve the standoff. 1. Why is the dam so significant? The Nile is the most important source of fresh water in a largely arid region that is very vulnerable to drought and climate change and is experiencing rapid population growth. Egypt relies on the 4,000-mile-long river for as much as 97% of its supply, and much of eastern Sudan’s population depends on it for survival. Ethiopia is counting on a 5,150-megawatt hydropower plant on its new dam to help supply electricity to the 60% of its population that don’t have access, and sustain its manufacturing industries. The plant began generating power in 2022, some of which will be sold to neighboring countries. Reprinted courtesy of Samuel Gebre, Bloomberg and Fasika Tadesse, Bloomberg Read the court decision
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Five Facts About Housing That Will Make People In New York City and San Francisco Depressed

February 26, 2015 — Flavia Krause-Jackson and Alexandre Tanzi – Bloomberg
If you live in New York or San Francisco, you should spend some time mining the latest crop of home price data -- starting with the Standard & Poor’s Case-Shiller indices. Then, pull out your last rent check. It might be enough to make you move. Here are a few things to get you thinking: 1. What you pay for parking in New York can buy a cheap home in Chicago The cheapest tier of homes in the Windy City were valued at less than $170,368 in November, the Case-Shiller tiered-price indices show (there are three tiers: low, middle and high). That compares to the $136,052 average price tag for parking space in New York last year, according to Jonathan J. Miller, the president of the appraisal firm Miller Samuel and a Bloomberg View contributor. Reprinted courtesy of Flavia Krause-Jackson, Bloomberg and Alexandre Tanzi, Bloomberg Read the court decision
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Confidence Among U.S. Homebuilders Declines to Eight-Month Low

March 19, 2015 — Bloomberg News
(Bloomberg) -- Confidence among U.S. homebuilders unexpectedly fell in March to an eight-month low as prospective buyers were in little rush to shop for properties ahead of the busier spring selling season. The National Association of Home Builders/Wells Fargo sentiment gauge dropped to 53 from 55 in February, figures from the Washington-based group showed Monday. The median forecast in a Bloomberg survey called for a gain to 56. Sales of single-family homes declined to a five-month low and builder optimism about the outlook failed to improve, the report also showed. Low mortgage rates and job creation may help spur homebuyer interest in coming months. Read the court decision
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Reprinted courtesy of Bloomberg News
Michelle Jamrisko may be contacted at mjamrisko@bloomberg.net

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