Old Case Teaches New Tricks
March 16, 2017 —
Angela A.L. Connor & Curtis W. Martin - Peckar & Abramson, P.C.Eight years after completion of the wharf project, Zachry and the Port of Houston continue to slug
it out in the appellate courts and continue to refi ne Texas construction law along the way. In the
latest appellate opinion, the Court of Appeals details the general contractor’s control of the means
and methods of their work without interference from a governmental entity. It also supports a
subcontractor’s use of a pass-through claim as a cost efficient way to recover damages.
By now most of us are familiar with the project and the previous decisions. Zachry sued the Port
claiming breach after the Port denied Zachry the right to continue construction using its frozen
cutoff wall. The Texas Supreme Court upheld the jury’s $20 million verdict for Zachry, ruling that
the Port’s “no damages for delay” clause would not bar Zachry’s claim in light of the Port’s active
interference with Zachry’s work. The Supreme Court then sent the case back to the Court of
Appeals to consider other arguments that the Port had made.
That led to the most recent decision. In December, 2016, the Houston Fourteenth Court of Appeals
ruled in favor of Zachry on all issues and affirmed the jury verdict. In doing so, the Court of Appeals
provides several lessons or reminders on Texas Construction law.
Reprinted courtesy of
Angela A.L. Connor, Peckar & Abramson, P.C. and
Curtis W. Martin, Peckar & Abramson, P.C.
Ms. Connor may be contacted at aconnor@pecklaw.com
Mr. Martin may be contacted at cmartin@pecklaw.com
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Gilbert’s Plan for Downtown Detroit Has No Room for Jail
October 08, 2014 —
Chris Christoff – BloombergBillionaire Dan Gilbert envisions a vibrant and shiny downtown Detroit, where he owns a casino and about 60 buildings. His urban Eden doesn’t include a jail with 2,000 criminals.
Gilbert is resisting county officials’ plans to restart construction on a half-finished jail mired in cost overruns, criminal investigations and debt. The project, which the Wayne County Commission may revive tomorrow, would replace a complex on land that Gilbert, the 52-year-old founder and chairman of Detroit-based Quicken Loans Inc., offered to buy for $50 million to build a hotel, housing and stores.
The dispute over the jail, which has sat unfinished for 16 months, pits one of Detroit’s most prominent boosters against a county government over how to reinvigorate the city’s heart. Gilbert, whose company is the nation’s largest online retail mortgage lender, has invested $1.3 billion there, betting on the former auto-manufacturing capital’s resurgence after decades of decline that pushed it into a record $18 billion municipal bankruptcy.
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Chris Christoff, BloombergMr. Christoff may be contacted at
cchristoff@bloomberg.net
Homeowner’s Claims Defeated Because “Gravamen” of Complaint was Fraud, not Breach of Contract
September 29, 2021 —
Garret Murai - California Construction Law BlogBe careful what you wish for or, as in the next case, what you plead. In Vera v. REL-BC, LLC, Case Nos. A155807, A156823, and A159141 (June 30, 2021) 1st District Court of Appeal, a the buyer of a remodeled home who asserted breach of contract and fraud claims against a developer discovered that her claims, including her breach of written contract claim, was subject to a shorter 3 year statute of limitations because the “gravamen” of her complaint was fraud.
The REL-BC Case
Homeowner Adriana Vera purchased a remodeled home in Oakland, California from developers REL-BC, LLC and SNL Real Estate Solutions, LLC. The developers had purchased the home in July 2011, remodeled it, and sold it to Vera in November 2011.
As is typical in such transactions, the purchase agreement for the house required that the sellers disclose known material facts and defects affecting the property. In their disclosure, the sellers stated that they were not aware of any significant defects or malfunctions with respect to the property. The disclosure also stated that the sellers were not aware of any water intrusion issues with respect to the property.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Common Construction Contract Provisions: No-Damages-for-Delay Clause
March 16, 2017 —
David Cook & Chadd Reynolds - Autry, Hanrahan, Hall & Cook, LLP BlogIn continuing our series on common contract provisions found in construction contracts, this post highlights no-damages-for-delay clauses.
Parties to a contract – particularly a construction contract – may agree that the performance of the contract must occur within a set amount of time. When a party is delayed in performing a contract, it may incur additional costs due to the delay. In most circumstances, unless the parties agree otherwise, the delayed party would be entitled to an extension of time to perform the contract. But it may also seek to recover the additional costs resulting from the delay.
A no-damages-for-delay clause attempts to prevent the delayed party from recovering those additional costs. In construction contracts, an upstream party, such as an owner or prime contractor, typically relies on a no-damages-for-delay clause when presented with a delay claim by a downstream party, such as a subcontractor.
Reprinted courtesy of
David Cook, Autry, Hanrahan, Hall & Cook, LLP and
Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com
Mr. Reynolds may be contacted at reynolds@ahclaw.com
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Retrofitting Buildings Is the Unsexy Climate Fix the World Needs
November 19, 2021 —
Marc Champion - BloombergYou may not have noticed unless you live in London, but protesters have been gluing their hands to the asphalt of the city’s thundering eight-lane M25 ring road, to the weirdly technocratic war cry of “Insulate Britain!” Frustrated commuters and the police officers who’ve had to peel these sticky activists from the road find them irritating. Yet they have a point. Among top producers of climate-harming emissions that world leaders plan to address at COP26 in Glasgow in November, buildings are the summit’s largely ignored Cinderella.
Making homes and offices leak less heat and persuading the construction industry to give up its addiction to demolition and to energy-intensive materials such as concrete, plastics, and steel have so far proved less than appealing to governments in search of solutions to the climate challenge. Retrofitting is costly and disruptive for the voters who happen to live, in the U.K. alone, in the 28 million homes that need an upgrade. It also demands the systemic transformation of a fragmented industry that’s riddled with vested interests, says Stephen Good, chief executive of the Construction Scotland Innovation Centre along Glasgow’s southern underbelly.
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Marc Champion, Bloomberg
It’s a Jolly Time of the Year: 5 Tips for Dealing with Construction Labor Issues During the Holidays
December 18, 2022 —
Matthew DeVries - Best Practices Construction LawIt’s that time of year again – the holiday season is upon us, and for those in the construction industry, that can mean a few extra challenges when it comes to maintaining efficiency on the job site.
Here are five best practices for dealing with labor during the holiday season:
- Communicate early and often: Make sure to clearly communicate any changes to the schedule or workload to your team as early as possible. This will give them time to plan and prepare, and help prevent any potential issues from arising.
- Offer incentives: Consider offering incentives to encourage your team to stay focused and productive during the holiday season. This could be something as simple as a bonus or extra time off, or something more creative like a gift card or other prize.
- Stay organized: The holiday season can be a busy time, so it’s important to stay organized and on top of your schedule. This means keeping track of deadlines, delegating tasks effectively, and staying in close communication with your team.
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Matthew DeVries, Burr & Forman LLPMr. DeVries may be contacted at
mdevries@burr.com
More on Duty to Defend a Subcontractor
March 29, 2021 —
Christopher G. Hill - Construction Law MusingsWhile we don’t often discuss insurance coverage issues here at Construction Law Musings, occasionally a case comes up that makes the grade for a post. One such case was Erie Insurance Exchange v. Salvi, where the question of an “occurrence” that warranted coverage and defense under an insurance policy was at issue. That case discussed this key question in a residential construction context based upon poor workmanship. A recent case out of the Western District of Virginia federal court analyzed this coverage issue in the commercial context.
In Nautilus Ins. Co. v. Strongwell Corp., the Court considered a challenge by the insurance company, Nautilus, to its duty to defend based on both the definition of “occurrence” and the definition of “property damage.” Nautilus filed a declaratory judgment action seeking a declaration that it need not either defend or indemnify because the extrinsic evidence (as distinguished from the “eight corners” of the policy) precluded coverage for the types of claims made by an owner and by extension a general contractor in a separate lawsuit.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Deleted Emails Cost Company $3M in Sanctions
January 13, 2017 —
Grace V. Hebbel - Saxe Doernberger & Vita, P.C. BlogRecently, the Federal District Court for the District of Delaware imposed $3 million in punitive sanctions in order to redress harms caused by a company’s bad faith deletion of tens of thousands of emails during the course of litigation. The sanctions were ordered pursuant to Federal Rule of Civil Procedure 37, which was amended effective December 1, 2015 to permit sanctions for the failure to preserve electronically stored information (“ESI”).
In GN Netcom, Inc. v. Plantronics, Inc.,1 the plaintiff, GN Netcom, brought an antitrust suit alleging that the defendant company, Plantronics, interfered with distributors to stop GN Netcom from marketing its product. Upon receipt of GN Netcom’s demand letter, Plantronics issued a litigation hold and began providing training sessions to its employees to ensure compliance. Upon filing of GN Netcom’s suit, Plantronics issued an updated litigation hold and continued training sessions.
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Grace V. Hebbel, Saxe Doernberger & Vita, P.C.Ms. Hebbel may be contacted at
gvh@sdvlaw.com