Partner Denis Moriarty and Of Counsel William Baumgaertner Listed in The Best Lawyers in America© 2017
September 08, 2016 —
Haight Brown & Bonesteel LLPPartner Denis Moriarty and Of Counsel William Baumgaertner were selected by their peers for inclusion in The Best Lawyers in America© 2017. This marks the fifth consecutive year Mr. Moriarty has been listed for his work in insurance law, and this marks the eleventh year Mr. Baumgaertner has been listed for his defendants’ and plaintiffs’ work in personal injury and product liability litigation.
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Properly Trigger the Performance Bond
January 04, 2018 —
David Adelstein - Florida Construction Legal UpdatesOriginally Published by CDJ on January 5, 2017
A performance bond is a valuable tool designed to guarantee the performance of the principal of the contract made part of the bond. But, it is only a valuable tool if the obligee (entity the bond is designed to benefit) understands that it needs to properly trigger the performance bond if it is looking to the bond (surety) to remedy and pay for a contractual default. If the performance bond is not properly triggered and a suit is brought upon the bond then the obligee could be the one materially breaching the terms of the bond. This means the obligee has no recourse under the performance bond. This is a huge downside when the obligee wanted the security of the performance bond, and reimbursed the bond principal for the premium of the bond, in order to address and remediate a default under the underlying contract.
A recent example of this downside can be found in the Southern District of Florida’s decision in Arch Ins. Co. v. John Moriarty & Associates of Florida, Inc., 2016 WL 7324144 (S.D.Fla. 2016). Here, a general contractor sued a subcontractor’s performance bond surety for an approximate $1M cost overrun associated with the performance of the subcontractor’s subcontract (the contract made part of the subcontractor’s performance bond). The surety moved for summary judgment arguing that the general contractor failed to property trigger the performance bond and, therefore, materially breached the bond. The trial court granted the summary judgment in favor of the performance bond surety. Why?
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Tennessee Civil Engineers Give the State's Infrastructure a "C" Grade
December 05, 2022 —
American Society of Civil EngineersNASHVILLE, TN. — The Tennessee Section of the American Society of Civil Engineers (ASCE) released the 2022 Report Card for Tennessee's Infrastructure today, with 13 categories of infrastructure receiving an overall grade of a 'C', the same grade given by the section in its 2016 report. That means Tennessee's infrastructure is in mediocre condition and requires attention, but is a step ahead of the national average of "C-" given in the 2021 Report Card for America's Infrastructure. Tennessee's freight network is strong and plays a major role in the national economy as a key mobility hub and its energy grid has been reliable, allowing families and businesses to operate efficiently. Many of the state's systems are performing at or above national averages; however, a surge in population growth, increasingly severe weather impacts, and insufficient data on the current condition of several infrastructure sectors threaten the long-term viability of the state's overall network. Civil engineers graded aviation (C+), bridges (B), dams (D+), drinking water (C+), energy (C+), inland waterways (C), parks (C+), rail (C), roads (C), solid waste (C+), stormwater (C+), transit (D+), and wastewater (C-).
"As one of the most prominent mobility hubs in all of America, infrastructure is the backbone to all we do here in Memphis, and everything we can accomplish throughout the great state of Tennessee," said Memphis Mayor Jim Strickland. "Our airports, roads and bridges keep our economy flowing, drawing more jobs and businesses in the future. The ASCE report is a critical tool for tracking our progress, in addition to highlighting where we could use some work. With more people flocking to Tennessee than ever before, this is an exciting time and our infrastructure networks must be ready to help us capitalize on the opportunity."
To view the report card and all five categories, visit https://infrastructurereportcard.org/state-item/tennessee/.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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Lower Manhattan Condos Rival Midtown’s Luxury Skyscrapers
April 09, 2014 —
Oshrat Carmiel – BloombergManhattan developer Bill Rudin hadn’t planned to start selling apartments at his Greenwich Village project until the end of this year. He began rethinking that strategy after getting cornered at a cocktail party.
“People came up to me and said, ‘We want to buy, we want to buy. When can we buy?’” Rudin said in an interview.
He opened a sales office in October for the Greenwich Lane, a complex under construction at the site of the shuttered St. Vincent’s Hospital, after an online sign-up list of would-be buyers for the 200 condominiums drew 1,100 names. More than half of the units at the development, still largely a field of dirt and skeletal towers, have sold at prices averaging $3,500 a square foot, in line with other projects downtown and a new luxury benchmark for the area.
While Midtown skyscrapers fringing Central Park are setting sales records and attracting international investors, downtown Manhattan’s new condos are breaking their own price barriers with a focus on local buyers. From the cobblestone streets of Tribeca to the low-rise landmarks of Greenwich Village, builders are accelerating projects with features and costs that rival high-end offerings farther north.
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Oshrat Carmiel, BloombergMs. Carmiel may be contacted at
ocarmiel1@bloomberg.net
California Limits Indemnification Obligations of Design Professionals
August 24, 2017 —
William L. Doerler - White and Williams LLPThe California legislature recently enacted legislation – SB 496 – limiting a design professional’s indemnification obligations in private contracts related to design services. The term “design professional” refers to licensed architects, landscape architects and professional land surveyors, and registered professional engineers. As revised, Cal. Civ. Code § 2782.8 states that, for all contracts entered into on or after January 1, 2018 for design professional services, all provisions that purport to have the design professional indemnify the indemnitee for claims against the indemnitee – or require the design professional to provide a defense to the indemnitee – are unenforceable except to the extent that the claims against the indemnitee arise out of, or relate to, the negligence, recklessness or willful misconduct of the design professional. In addition, as revised, § 2782.8 limits a design professional’s liability for the cost of defense to the design professional’s percentage of fault.
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William L. Doerler, White and Williams LLPMr. Doerler may be contacted at
doerlerw@whiteandwilliams.com
Contractors: Beware the Subordination Clause
October 15, 2014 —
Garret Murai – California Construction Law BlogA bit of mechanics lien trivia.
What is the only state in the United States in which mechanics liens are a constitutional right?
If you answered California, ding, ding.
Article XIV of the California Constitution states:
Mechanics, persons furnishing materials, artisans, and laborers of every class, shall have a lien upon the property upon which they have bestowed labor or furnished material for the value of such labor done and materials furnished; and the Legislature shall provide, by law, for the speedy and efficient enforcement of such liens.
But how does that constitutional right stand up against contractual rights? Not so well it seems.
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Garret Murai, Kronick Moskovitz Tiedemann & GirardMr. Murai may be contacted at
gmurai@kmtg.com
EPA and the Corps of Engineers Repeal the 2015 “Waters of the United States” Rule
January 13, 2020 —
Anthony B. Cavender - Gravel2GavelThe pre-publication version of the final rule to be promulgated by EPA and the U.S. Army Corps of Engineers (ACOE) to repeal the 2015 redefinition of the Clean Water Act’s term “Waters of the United States” which is the linchpin of these agencies’ regulatory power under the CWA, was made available on September 12, 2019. The rule should be published in the Federal Register in the next few weeks, and it will be effective 60 days thereafter. Many challenges are expected to be filed in the federal courts.
The 2015 rule was very controversial, and petitions challenging the rule were filed in many federal district courts, several courts of appeal, and finally in the Supreme Court (see NAM v. Department of Defense), which held that all initial challenges must be filed in the federal district courts. The upshot of these challenges is that, at this time, the 2015 rule has been enjoined in more than half the states while the other states are bound by the 2015 rule, a situation which is frustrating for everyone.
In addition to repealing the 2015 rule, the agencies also restored the pre-2015 definition had had been in place since 1986. As a result, the pre-2015 definition of waters of the U.S. will again govern the application of the following rules: (a) the ACOE’s definition of “waters of the U.S.” at 33 CFR Section 328.3; (b) EPA’s general Oil Discharge rule at 40 CFR Section 110; (c) the SPCC rules at 40 CFR Part 112; (d) EPA’s designation of hazardous substances at 40 CFR Part 116; (e) EPA’s hazardous substance reportable quantity rule at 40 CFR Part 117; (f) the NPDES permitting rules at 40 CFR Part 122; (g) the guidelines for dredged or fill disposal sites at 40 CFR Part 230; (g) Exempt activities not requiring a CWA 404 permit (guidelines for 404 disposal sites at 40 CFR Part 232); (h) the National Contingency Plan rules at 40 CFR Part 300; (i) the designation of reportable quantities of hazardous substances at 40 CFR Part 302; and (j) EPA’s Effluent Guidelines standards at 40 CFR Part 401.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Champagne Wishes and Caviar Dreams. Unlicensed Contractor Takes the Cake
August 31, 2020 —
Garret Murai - California Construction Law BlogBefore the Kardashians, before Empire, before Crazy Rich Asians there was Lifestyles of the Rich and Famous with Robin Leach. The next case, Moore v. Teed, Case No. A153523 (April 24, 2020), 1st District Court of Appeals, is about the unfulfilled wishes and dashed dreams of the $13 million dollar “fixer upper.”
Moore v. Teed
The $13 Million Dollar “Fixer Upper”
Justin Moore just wanted to buy a house in San Francisco. But he couldn’t afford one in the neighborhoods he preferred. But in 2011, luck struck, when Moore met Richard Teed, a real estate agent with “over 25 years of experience as a building contractor,” “an extensive background in historic restorations” and a “deep understanding of quality construction.” Teed told Moore that he could locate a “lower-priced fixer-upper in a choice neighborhood and then renovate it.” Moore was sold.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com