A Court-Side Seat: “Inholdings” Upheld, a Pecos Bill Come Due and Agency Actions Abound
January 25, 2021 —
Anthony B. Cavender - Gravel2GavelHere are some significant environmental and regulatory rulings and administrative actions from December 2020.
THE U.S. SUPREME COURT
Texas v. New Mexico
On December 14, 2020, the U.S. Supreme Court decided a water rights controversy involving sharing the water of the Pecos River. The 1949 Pecos River Compact provides for the equitable apportionment of the use of the Pecos River’s water by New Mexico and Texas, and a “River Master’s Manual,” approved by the Court in 1988, implements the Compact. These are very dry areas, and access to this water is very important. In 2014, a rare tropical storm drenched the Pecos River Basin, and Texas asked New Mexico to temporarily store the water that would otherwise flow into Texas. A few months later, New Mexico released the water to Texas, but the quantity was reduced because some of the water held by New Mexico had evaporated. The River Master awarded a delivery credit to New Mexico, and after Texas objected, Texas “in response” filed the Original Jurisdiction of the Court, suing New Mexico and seeking a review of the River Master’s determination. The Court held for New Mexico, deciding that this dispute was subject to and resolved by the Manual. This case is important because it highlights the high value the states place on the equitable apportionment of water that flows through different states.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Bid Bonds: The First Preventative Measure for Your Project
September 03, 2019 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday, Construction Law Musings welcomes Danielle Rodabaugh. Danielle is a principal for Surety Bonds.com, an agency that issues surety bonds to individuals and businesses across the nation. She writes articles to clarify bonding rules and regulations for those who have a stake in the surety bond industry–from contractors to telemarketers, and every professional in between.
In construction we often value performance and payment bonds when considering how to protect the financial investments put into a project. We do so because these bonds provide a legal financial guarantee that the selected contractor will fulfill the contract. However, a third, equally protective kind of construction bond is often overlooked.
Before an official contract has been agreed to and successfully executed, bid bonds guarantee that the selected low-bidder will officially enter into the contract at a later date. Bidders must submit a bid bond with their bid. Without doing so, the bidder becomes non-responsive–or an invalid candidate. Sometimes we overlook the benefits provided by this kind of Virginia surety bond, and yet they frequently act as the only legal protection for a project prior to groundbreaking.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Dealing with Hazardous Substances on the Construction Site
July 10, 2018 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday here at Construction Law Musings, we welcome Vickie Lane. Vickie is the primary point of contact for Business Development with HAZMAT Plans & Programs, a consulting and training firm that also works under the name of HP&P Safety. Vickie’s functions with HP&P include extensive pre-project research and support though estimating, planning and cost administration. Vickie attended Ohio State University and now enjoys her role as a first time grandmother and spending free time up in the Colorado Rocky Mountains. Vickie can be reached at vlane@hppsafety.com or on Twitter @HAZMATPlans and @hpandpsafety.
Most of us perceive hazards on a construction site to be those that can be readily visualized or perhaps easily imagined, like trench cave-ins or falls from heights. These are the obvious, but what about the nocuous, microscopic hazards that can’t be seen by the human eye, but can destroy the health of your workers? Welcome to the world of hazardous materials.
The inherent danger associated with hazardous substances is workers might not be not aware of exposure. Think of a snake in the dark scenario. If it is a rattlesnake, you have warning before the bite. A cobra on the other hand gives no such warning and the bite can be fatal. So it can be with hazardous and toxic substances.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
The California Legislature Passes SB 496 Limiting Design Professional Defense and Indemnity Obligations
November 21, 2017 —
Mark Himmelstein & Jenny Guzman – Newmeyer & Dillion LLPOriginally published by CDJ on June 15, 2017
Since 2008 when the California legislature limited subcontractor indemnity obligations, the design professional community has been shouting “what about us?” Well, the legislature finally responded and a new law that limits design professional’s defense and indemnity obligations to their percentage of fault goes into effect on January 1, 2018.
THE NEW LAW – SB 496
SB 496 amends California Civil Code section 2782.8 and states that indemnity agreements must be limited to the negligence, recklessness or willful misconduct of the indemnitee (i.e. no more Type I indemnity with design professionals). The amendment also provides that “in no event shall the cost to defend charged to the design professional exceed the design professional’s proportionate percentage of fault”, with a limited opportunity for reallocation in the event another defendant is judgment proof.
However, the duty to defend still remains and still arises at the time of the tender of the defense (both issues that were unsuccessfully targeted by the design professional lobbyists).
Reprinted courtesy of
Mark Himmelstein, Newmeyer & Dillion LLP and
Jenny Guzman, Newmeyer & Dillion LLP
Mr. Price may be contacted at mark.himmelstein@ndlf.com
Ms. Zucker may be contacted at jenny.guzman@ndlf.com
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Disputes Over Arbitrator Qualifications: The Northern District of California Offers Some Guidance
August 10, 2021 —
Justin K. Fortescue - White and WilliamsThe selection of an arbitration panel can often lead to disputes between the parties regarding things like whether a particular candidate is qualified, whether a challenge to an arbitrator’s qualifications can be addressed pre-award and whether a party that names an unqualified arbitrator should lose the opportunity to name a replacement. In Public Risk Innovations v. Amtrust Financial Services, No. 21-cv-03573, 2021 U.S. Dist. LEXIS 129464 (N.D. Ca. July 12, 2021), the court provided answers on all three of these issues.
In Amtrust, the parties filed cross-motions to compel arbitration. Although both parties agreed the dispute was arbitrable, they disagreed about whether Public Risk Innovations, Solutions and Management’s (PRISM) arbitrator was qualified under the terms of the applicable contract. In seeking to have PRISM’s arbitrator disqualified, Amtrust argued that he: (1) was not a “current or former official of an insurance or reinsurance company”; and (2) was not “disinterested.” Amtrust also argued that because PRISM named an unqualified arbitrator (and presumably the time to appoint had passed), PRISM should be deemed to have failed to select an arbitrator as required by the contract and that Amtrust had the right to select a second arbitrator of its choice.
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Justin K. Fortescue, White and WilliamsMr. Fortescue may be contacted at
fortescuej@whiteandwilliams.com
What are the Potential Damages when a House is a Lemon?
September 01, 2016 —
Haldon L. Greenberg, Esq. – Florida Construction Law NewsIt seems that lemons are front page news these days. Beyonce just released a chart-topping[1] album all about what to do when life hands you lemons. In today’s vernacular, we use the term “Lemon” to describe a person or thing that is unsatisfactory, disappointing, or feeble.[2] In Florida, there is a “Lemon Law” that provides a way for consumers to receive a replacement or full refund for vehicles found to have defects which may affect the vehicle’s safety, value or use.[3] While there is no “Lemon Law” for construction projects, in Gray v. Mark Hall Homes, Inc.,[4] Florida’s Second District Court of Appeal cited to Florida Supreme Court precedent in holding that a home builder was on the hook for the entire contract value of a home he contracted to build for the Plaintiff, when it was revealed the home was a “Lemon”, or as the evidence at trial showed, “valueless.”
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Haldon L. Greenberg, Esq., Cole, Scott & Kissane, P.A.Mr. Greenberg may be contacted at
haldon.greenburg@csklegal.com
Real-Estate Pros Fight NYC Tax on Wealthy Absentee Owners
October 15, 2014 —
Henry Goldman and Allyson Versprille – BloombergA political battle is brewing at the apex of New York’s property market.
The real-estate industry is mobilizing to kill a proposed levy on non-resident owners of apartments valued at more than $5 million, seeking to ensure the world’s biggest city doesn’t follow London, Hong Kong and Singapore in extracting extra cash from trophy properties.
The industry’s lobbying arm, the Real Estate Board of New York, says the measure will scare off investors who fuel a business supporting more than 500,000 jobs and generating 40 percent of the five boroughs’ revenue. Brokers warn of economic calamity if officials slap a luxury tax on apartments owned by someone who lives in the city less than half the year.
Mr. Goldman may be contacted at hgoldman@bloomberg.net; Ms. Versprille may be contacted at aversprille1@bloomberg.net
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Henry Goldman and Allyson Versprille, Bloomberg
10 Safety Tips for General Contractors
October 09, 2018 —
Eric Weisbrot – JW Surety BondsThe construction industry continues to grow each year, paving the way for general contractors to make a profitable, sustainable living when the job is done right. However, to do so effectively, safety standards need to be met with consistency and focus on each worksite. General
contractors who are licensed and bonded must take proactive steps to avoid potentially fatal injuries among their subcontractors and employees, even though this may be easier said than done. To create and maintain a safe worksite each and every time, general contractors should consider how to implement the following best practices and safety tips on the job.
1 – Know the Risks
The most crucial step toward maintaining a safe construction site is to first be aware of the risks involved. Each year, thousands of
construction workers experience injuries on the job, and some ultimately lose their life because of safety missteps at work. As a general contractor, it is your responsibility to know that construction risks run rampant given the nature of the work. Being tuned into the potential for falls, slips, and other common safety-related incidents is a necessary part of operating a safe worksite for you and your employees.
2 – Require Protective Gear
An often overlooked safety precaution on construction sites is the use of up-to-date and well-maintained protective gear. For many subcontractors and employees, it is easy to skip this necessary step in safeguarding themselves from potential safety issues. However, general contractors can take steps to make protective gear a requirement on the job. This may include mandating hardhats and steel-toed shoes, gloves, and eyewear when appropriate. All visitors and workers on a construction site should follow protective gear instructions to avoid unnecessary safety risks.
3 – Educate on Ladder Safety
According to the Bureau of Labor Statistics, ladder injuries account for a significant number of construction worker incidents each year, making up more than 200,000 accidents on average. Ladders have continuously ranked high on OSHA’s list of violations at construction sites because the prevalence of injuries is so high. General contractors can help thwart ladder-related injuries among workers by promoting ladder safety training, including reminders about the right ladder to use for each task. Workers should also be well aware of the importance of inspection before use, and they should always follow the three points of contact rule when going up or down a ladder.
4 – Recognize Equipment Pitfalls
Many construction workers experience injuries relating to equipment used on the job. This could be tied to getting on or off equipment, or loading and unloading materials from machinery. In any case, general contractors can encourage simple tactics to improve equipment safety measures. Paying close attention to secure footing while getting on or off a machine, having more than one person assist with loading and unloading, and ensuring everyone feels comfortable asking for help with these tasks reduces safety risks.
5 – Document Potential Hazards
A general contractor’s main responsibility is to manage the construction site efficiently from start to finish. Part of this duty is recognizing the possible issues on a worksite that may lead to accidents or injuries if not addressed at the beginning of a project. It is necessary to take the time to identify safety risks such as unstable working surfaces, dangerous trenches, or weather-related concerns that may impact the safety of subcontractors, suppliers, or other site visitors. Potential hazards should be documented and shared with site workers, and they should be updated as the project progresses.
6 – Maintain Equipment and Tools
Poorly maintained equipment and tools also cause issues on construction sites. The Infrastructure Health and Safety Association suggests that general contractors
remind workers to inspect tools, machines, handheld equipment, and vehicles before each use to ensure they are properly maintained. Additionally, understanding the maintenance standards for certain tools or equipment and following those guidelines is crucial to reducing injury on the job.
7 – Minimize Crowds
Crowded work areas can be a serious safety issue for general contractors, subcontractors, and vendors and suppliers on site. It is common for crowds to gather during the use of heavy equipment or when a significant task is being completed. However, general contractors should discourage crowd-forming for spectating purposes. This can be done by limiting the number of people allowed to be in an area when certain activities are taking place, and enforcing these rules at every possible opportunity.
8 – Hire Licensed Subcontractors
General contractors may have full- or part-time employees as part of their business model, or there may be a heavy presence of subcontractors not directly tied to the main business. In either case, it is essential to have faith in the capabilities of workers, including their willingness and commitment to follow safety standards. General contractors can help ensure each worker is more likely to take safety seriously when they hire licensed contractors who follow through with
licensing requirements as mandated by the state or city.
9 – Focus on Training
Even after vetting subcontractors and employees based on their licensing status, general contractors also need to ensure training and education are a priority. Several online and in-person courses focus on construction safety training which workers should be encouraged to attend. Safety
education programs from OSHA and other reputable sources are crucial to decreasing accidents on the job.
10 – Be Present
Finally, general contractors can only have an impact on the safety of the job site when they are purposefully present. It is common for some GCs to stop by a project when they are needed or to check on progress periodically. However, new safety hazards, lacking worker training, and other risks are not easily fixed when the general contractor is not consistently on site. Reducing the potential for falls, slips, trips, and fatalities on the job requires communication with workers, and that takes place most effectively when general contractors are in person.
Eric Weisbrot is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry under several different roles within the company, he is also a contributing author to the surety bond blog.
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