Teaming Agreements- A Contract to Pursue a Solicitation and Negotiate
November 23, 2020 —
David Adelstein - Florida Construction Legal UpdatesTeaming agreements are practical and useful agreements on public projects where a prime contractor teams with a subcontractor for purposes of submitting a bid or proposal in response to a solicitation. The prime contractor and subcontractor work together to pursue that solicitation and have the government award the contract to the prime contractor. The teaming agreement allows for information to be confidentially shared (estimating and pricing, construction methodologies, systems, and suggestions, value engineering, etc.) where the subcontractor agrees that it will only pursue the solicitation with the prime contractor. In other words, the subcontractor ideally is not going to submit pricing to another prime contractor proposing or bidding on the same project and is not going to share information the prime contractor has furnished to it. Likewise, the prime contractor is not going to use the subcontractor’s information for purposes of finding another subcontractor at a lower price and is agreeing to use its good faith efforts or best attempts to enter into a subcontract with the subcontractor if it is awarded the project. This is all memorialized in the teaming agreement.
The potential problem lies with language that requires the parties to use their good faith efforts or best attempts to enter into a subcontract if the project is awarded to the prime contractor. In essence, this can become a disfavored “agreement to agree” to a future contract that could allow either party to create an argument to back out of the deal under the auspice that they could not come to terms with the subcontract.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
July Sees Big Drop in Home Sales
August 27, 2013 —
CDJ STAFFThe Commerce Department reported a 13.9 percent drop in sale of new homes for July. Over the course of the last 12 months, home sales had risen 7 percent. According to economists, an annual rate of about 700,000 homes would be a sign of a healthy economy. The July sales fell well short of that, at an annual rate of 394,000. New home starts were also down.
Experts attribute the decline in sales and building to increases in mortgage rates, even though the rates remain historically low. Despite the slump in home sales in July, builder confidence rose to a high in August.
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Anti-Concurrent Causation Clause Eliminates Loss from Hurricane
September 06, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe court found the insured was not covered for losses caused by Hurricane Laura due to the implementation of the policy's anti-concurrent causation clause. Aegis Sec. Ins. Co. v. Lejeune, 2021 U.S. Dist. LEXIS 106804 (W. D. La. June 7, 2021).
At the time of the hurricane, the insureds' home was covered by a manufactured home insurance policy issued by Aegis. The policy excluded coverage for damage "caused by, contributed to or aggravated by" flooding. The policy's anti-concurrent causation clause read, "We do not pay for loss to the types of property covered under this policy caused by any of the following. Such loss is excluded regardless of any other cause or event contributing concurrently or in any sequence to the loss." The policy's exceptions followed.
After the storm, the insureds submitted their claim. Aegis filed suit for declaratory judgment. Aegis relied upon reports that the manufactured home and barn owned by the insureds were damaged by winds, then displaced and destroyed by storm surge associated with the hurricane. The home first sustained damage from the storm's high winds before it was displaced from its concrete piers by a 12 to 16 foot storm surge.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Traub Lieberman Partners Dana Rice and Jason Taylor Obtain Summary Judgment For Insurance Carrier Client in Missouri Federal Court Coverage Action
April 19, 2022 —
Dana A. Rice & Jason Taylor - Traub LiebermanTraub Lieberman Partners Dana Rice and Jason Taylor were recently successful in obtaining summary judgment for a national insurance carrier client in a federal court declaratory judgment action pending in Missouri. The underlying lawsuit involved two wrongful death actions brought against an insured responsible for performing demolition work on a freight elevator shaft as part of a larger demolition project. The two decedents were operating a motorized wire rope pulley inside the shaft when the system failed, causing the work basket occupied by the decedents to fall and resulting in fatal injuries to the workers. Two state court actions followed against the general contractor on the project, the insured, and various other product suppliers and manufacturers of the freight elevator equipment.
The firm’s client issued commercial general liability insurance policy, which included an “Injury to Employees, Contractors, Volunteers and Other Workers” exclusion that precluded coverage for bodily injury to a broad variety of workers. As respects the insured, the underlying plaintiffs alleged that the decedent-workers were “employed by” the insured, such that the carrier argued the “Injury to Workers” exclusion barred coverage. The carrier filed a declaratory judgment action in the U.S. District Court for the Eastern District of Missouri seeking a declaration that the insurer had no duty to defend or indemnify its insured for the underlying state court actions under the exclusion, and moved for judgment on the pleadings. The carrier also claimed a related “Contractors and Subcontractors” exclusion barred coverage.
Reprinted courtesy of
Dana A. Rice, Traub Lieberman and
Jason Taylor, Traub Lieberman
Mr. Rice may be contacted at drice@tlsslaw.com
Mr. Taylor may be contacted at jtaylor@tlsslaw.com
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2011 West Coast Casualty Construction Defect Seminar – Recap
June 01, 2011 —
CDJ STAFF |
Event exhibitors and sponsors contribute to an informative and engaging environment |
This year’s meeting was the best yet for the industry-leading construction defect and claims event.
This year’s seminar concluded on May 13, 2011 with the Construction Defect Community Charitable Foundation Golf Tournament, held at Strawberry Farms Golf Course.
The Disneyland Hotel in Anaheim, California was the place where more than 1,500 attendees convened for two days of professional development activities and seminars that included CLE workshops and panel discussions of special interest to legal and insurance professionals concerned with construction defect and claims litigation. Key events included “Challenges for Experts in Construction Defect Claims and Litigation,” “Keeping Up with Construction Defect Coverage,” and “Tips for Avoiding the ‘Perfect Storm’ in Handling of Wrap Claims.”
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Supporting the golf tournament at the 15th hole |
This year’s Ollie award was given to George D. Calkins II, Esq. The West Coast Casualty Jerrold S. Oliver Award of Excellence was named in honor of the late Judge Jerrold S. Oliver, and recognizes an individual who is outstanding or has contributed to the betterment of the construction community.
In addition to being the most comprehensive professional development seminar in the area of construction defects, this year’s seminar was equally valuable as a networking opportunity for members of the industry. People participated in professional development events during the day and then continued networking in the evening at numerous social events. The Lawn Party as well as the legendary Wood, Smith, Henning & Berman events were very well attended. Additional valuable networking events were hosted by a number of industry professionals at the House of Blues, and Tortilla Joe’s.
As of this writing the 2011, West Coast Casualty's Construction Defect Seminar has applied for or has already received the following continuing education accreditation in the following areas;
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For more information about next year’s event, visit West Coast Casualty.
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Coping With The New Cap And Trade Law
January 04, 2023 —
John P. Ahlers - Ahlers Cressman & SleightOn May 17, 2021, Governor Jay Inslee signed a new carbon pricing bill making Washington only the second in the nation to have such an extensive climate-change reduction policy (Senate Bill 5126).
The Stated Purpose of the New Law:
SB5126 creates a system to cap carbon pollution and greenhouse gas emissions, and individual businesses are provided specific limits on emissions (“Cap”). Those businesses then have to purchase credits for allowed emissions.
The businesses which emit fewer greenhouse gases than the credits allotted them can sell their credits to businesses that are not reducing emissions as quickly (“Trade”). The overall pool of carbon credits are to be gradually reduced by 2050 to hit a goal of net-zero emissions. This bill is colloquially known as the “Cap and Trade Law.”
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John P. Ahlers, Ahlers Cressman & SleightMr. Ahlers may be contacted at
john.ahlers@acslawyers.com
Red Wings Owner, Needing Hockey-Arena Neighborhood, Builds One
August 06, 2014 —
Chris Christoff – BloombergBillionaire Mike Ilitch and his family plan to create an instantaneous neighborhood around Detroit’s new hockey arena and jump-start an economic recovery where other sports ventures fell short.
The 250-acre (101-hectare) project near downtown sets the arena apart from other U.S. stadiums where little or no related development occurred, or arose long after construction. The Ilitches, owners of the National Hockey League’s Detroit Red Wings, will spend $200 million on apartments and retail space to attract residents by the time the arena opens for the 2017 season. They’ll also pay 44 percent of cost to build the arena.
“This isn’t, ‘Build it and they will come.’ This is, ‘We’re coming and we’re building it,” said Mark Morante, a manager for the Michigan Strategic Fund, which must authorize a $450 million bond sale to build the arena, the largest by the state’s economic development arm.
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Chris Christoff, BloombergMr. Christoff may be contacted at
cchristoff@bloomberg.net
Boston Nonprofit Wants to Put Grown-Ups in Dorms
March 19, 2015 —
Patrick Clark – BloombergHere's a broad summary of millennials' housing problems: Stagnant wages and heavy debt loads have made it hard to afford a house, while high demand for rental units in the most happening cities allow landlords to raise rents, making it even harder to save for a down payment.
In Boston, where these forces are particularly acute, urban policy wonks are offering a new solution: Put the young people in pens.
OK, not quite. The authors of a new report from the Boston Foundation, a philanthropic organization that funds local nonprofits, prefer the phrase "millennial villages," dorm-like developments that maximize space by combining smaller living spaces with lots of common areas. Specifically, the report suggests building 10,000 units that make up for cramped living quarters by including shared lounges, health clubs, and shared areas for study, music practice, or launching a technology startup. For young tenants really interested in cutting costs, some could be built with shared kitchens.
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Patrick Clark, BloombergMr. Clark may be contacted at
jclark185@bloomberg.net