Dispute Resolution Provision in Subcontract that Says Owner, Architect or Engineer’s Decision Is Final
March 29, 2021 —
David Adelstein - Florida Construction Legal UpdatesIn subcontracts, it is not uncommon to see a provision that says something to the effect:
Should any dispute arise between the parties respecting the true construction or interpretation of the Plans, Specifications and/or the Contract Requirements, the decision of the Owner or the Owner’s designated representative as set forth in the General Contract shall be final.
This is a provision in a subcontract dealing with dispute resolution, typically when there is a dispute as to whether the subcontractor is performing extra-contractual or base contract work regarding an “interpretation of the Plans, Specifications, and/or the Contract Requirements.” It is not uncommon for there to be a dispute as to whether certain work is within the subcontractor’s scope of work or outside the subcontractor’s scope of work and subject to a change order.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Google’s Floating Mystery Boxes Solved?
March 12, 2014 —
Beverley BevenFlorez-CDJ STAFFGarret Murai, on his California Construction Law blog, reported how “a four story structure made up of shipping containers” had been mysteriously erected on a barge in the middle of San Francisco Bay. Later, it was determined that Google was behind the strange structure, though they were keeping silent as to what the building-on-the-barge would be used for.
Construction stopped after the San Francisco Bay Conservation and Development Commission determined that the mysterious barge required a permit—which would require Google to file “publicly available documents.” Google chose to move the barge to Stockton, California rather than obtain a permit.
Google finally released a comment stating that they are “exploring using the barge as an interactive space where people can learn about new technology.” However, Murai believes that this statement may be a “distraction device” and the true use of the barge has yet to be revealed.
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Emerging World Needs $1.5 Trillion for Green Buildings, IFC Says
December 11, 2023 —
Natasha White - BloombergThe International Finance Corporation is looking to develop a guarantee facility for private investors to boost finance for greener construction in emerging markets, as growing populations, urbanization and industrialization are set to spur pollution far beyond safe limits.
IFC, the world’s largest global development institution focused on the private sector in low-income countries, is working with its counterparts in the World Bank Group to “create a one-stop shop for guarantees offered to private investors,” Susan Lund, vice president for economics and private sector development, told Bloomberg in an interview. We have “really high aspirations to scale that up dramatically for climate finance and in particular for green buildings and decarbonizing the construction sector,” she said.
Lund’s comments follow a recent speech given by World Bank President Ajay Banga who said the bank is working to better unify guarantee insurance across the institutions.
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Natasha White, Bloomberg
Coronavirus Is Starting to Slow the Solar Energy Revolution
March 09, 2020 —
Bloomberg NewsThe coronavirus outbreak is threatening to slow the global solar-energy revolution as it cuts the supply of key equipment for solar and wind farms in China and beyond.
As cases of the disease mounted over the past week, manufacturers including Trina Solar Ltd. sounded the alarm over production delays while developers like Manila Electric Co. in the Philippines said projects would be held up.
“If the virus outbreak lasts beyond the first quarter and spreads to more geographies, as is currently happening in Korea and Italy, then it may very well slow down global renewable energy deployment,” said Ali Izadi-Najafabadi, head of analysis in Asia for BloombergNEF which has downgraded its outlook for installations this year.
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Bloomberg
Professor Senet’s List of 25 Decisions Every California Construction Lawyer Should Know:
January 17, 2022 —
Ted Senet - Gibbs Giden- Aas v. Superior Court (2000) 24 Cal. 4th 627 – economic loss rule
- Amelco Electric v. City of Thousand Oaks ( (2002) 27 Cal. 4th 228 – abandonment does not apply to public works – total cost theory is allowed
- Beacon Residential Community Association v. Skidmore, Owings & Merrill (2014) 59 Cal. 4th 568 – architect liable in absence of privity
- Cates Const., Inc. v. Talbot Partners (1999) 21 Cal.4th 28 – no tort recovery on bonds – performance bonds can cover contract warranties
- Condon-Johnson & Associates, Inc. v. Sacramento Municipal Utility Dist., 149 Cal. App. 4th 1384 – liability for concealed conditions
- Connolly Development, Inc. v. Superior Court of Merced County (1976) 17 Cal. 3d 803 – mechanic lien remedy is constitutional
- Crawford v. Weather Shield Mfg. (2008) 44 Cal. 4th 541 – indemnity implies obligation to defend [now limited to commercial contracts under CCP 2782 (c)–(h)]
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Ted Senet, Gibbs GiddenMr. Senet may be contacted at
tsenet@gibbsgiden.com
Dorian’s Wrath: How Event Cancellation Insurance Helps Businesses Recoup Losses from Severe Weather
December 16, 2019 —
Sergio F. Oehninger, Andrea DeField & Daniel Hentschel - Hunton Insurance Recovery BlogAs the 2019 hurricane season peaks, the Bahamas and the Southeast United States have already endured a catastrophic storm. Hurricane Dorian not only tragically caused loss of life and substantial property damage, but it also led to the cancellation or postponement of major events, resulting in considerable economic losses for affected companies.
For instance, Hurricane Dorian forced the cancellation of one of the Rolling Stones’ concerts at Hard Rock Stadium in Miami, as well as the cancellation of R&B singer Chris Brown’s concert in Fort Lauderdale. Dorian also affected the college football game between Florida State University and Boise State University in Jacksonville. Having sold 45,000 tickets to the game, officials were forced to move the game inland to Tallahassee at great expense and effort.
The planners, headliners, teams and fans of these and similar events were not the only ones affected by the cancellations and schedule changes. Hotels, restaurants and businesses relying on tourism also were severely impacted by the schedule changes resulting from Hurricane Dorian over Labor Day weekend. Other programming that may have been affected includes conventions and meetings, fairs and festivals, trade shows and exhibitions, or any other corporate events planned to take place outdoors, requiring travel or with ticket-paying audiences.
Reprinted courtesy of Hunton Andrews Kurth attorneys
Sergio F. Oehninger,
Andrea DeField and
Daniel Hentschel
Mr. Oehninger may be contacted at soehninger@HuntonAK.com
Ms. DeField may be contacted at adefield@HuntonAK.com
Mr. Hentschel may be contacted at dhentschel@HuntonAK.com
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Illinois Federal Court Applies Insurer-Friendly “Mutual Exclusive Theories” Test To Independent Counsel Analysis
November 09, 2020 —
Jeremy S. Macklin - Traub Lieberman Insurance Law BlogInsureds often request independent counsel when insurers agree to provide a defense subject to a reservation of rights, pursuant to which an insurer takes the position that certain damages may not be indemnifiable. Requests for independent counsel are often rooted in fear that a defense attorney who has a relationship with the insurer may be incentivized to defend the insured in a way that maximizes the potential for the insurer to succeed on its coverage defenses. As explained by the Illinois Supreme Court in Maryland Cas. Co. v. Peppers, 355 N.E.2d 24 (Ill. 1976), when a conflict of interest arises between an insurer and its insured, the attorney appointed by the insurer is faced with serious ethical questions and the insured is entitled to its own attorney.
Illinois courts generally follow the rule that an insured is entitled to independent counsel upon a showing of an actual conflict. In Builders Concrete Servs., LLC v. Westfield Nat’l Ins. Co., No. 19 C 7792, 2020 WL 5518474 (N.D. Ill. Sept. 14, 2020), the U.S. District Court for the Northern District of Illinois recently addressed a dispute between an insurer and its insured about independent counsel.
Westfield insured Builders Concrete Services (BCS). Focus Construction hired BCS as a subcontractor to perform concrete work on a new apartment building. BCS’ work included pouring concrete for structural columns, one of which buckled and failed. BCS sued Focus Construction for withholding payment, and Focus Construction counter-sued for breach of contract and negligence relating to BCS’ alleged faulty work that caused the column to fall. Focus Construction’s counterclaim alleged that the column failure damaged other parts of the building on which Builders did not perform work.
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Jeremy S. Macklin, Traub LiebermanMr. Macklin may be contacted at
jmacklin@tlsslaw.com
Congratulations to Jonathan Kaplan on his Promotion to Partner!
February 10, 2020 —
Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is proud to announce the promotion of Jonathan Kaplan to Partner!
Jonathan has been with the firm for nearly eight years out of our Newport Beach office. He focuses his practice on general liability defense and construction litigation matters, in addition to handling high-profile plaintiff defect cases. Jonathan earned his law degree from Chapman University School of Law, obtaining a certificate in Environmental, Real Estate and Land Use Law, and went to undergrad at the University of Washington. Jonathan is an active participant within the firm’s Hiring Committee and assists with legal recruitment at the prominent Orange County law schools. Jonathan is also an avid hiker and has coordinated several hiking events for our Southern California offices.
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Bremer Whyte Brown & O'Meara LLP