Ninth Circuit Rules Supreme Court’s Two-Part Test of Implied Certification under the False Claims Act Mandatory
May 13, 2019 —
Meredith Thielbahr - Gordon & Rees Construction Law BlogFor those contractors in the government arena, read on.
The False Claims Act (“FCA”) was enacted to deter knowingly fraudulent actions by contractors which resulted in a loss of property to the Government. Intent to defraud with resulting financial hardship was required. Contrary to popular misconception, the statute was not designed to punish all false submissions to the Government simply because those submissions, or claims, are later found to be false. The statute’s inclusion of the requisite element of knowledge is consistent with this notion:
- A defendant must submit a claim for payment to the Government;
- the claim must be false or fraudulent;
- the defendant must have known the claim was fraudulent when it was submitted (also known as scienter); and
- the claim must have caused the Government to pay out money.
See 31 U.S.C. § 3729(a).
Despite these explicit elements (in addition to common law elements of fraud), over the last two decades, contractors have seen ever-expanding theories of FCA recovery presented by qui tam plaintiffs and the Government. For example, under the FCA, the false “claim” evolved over time: the claim no longer needs to be an express false claim (i.e. the truthfulness of the claim is a direct condition of payment); the claim can be “implied” misrepresentation or “half-truth”.
Read the court decisionRead the full story...Reprinted courtesy of
Meredith Thielbahr, Gordon & Rees Scully MansukhaniMs. Thielbahr may be contacted at
mthielbahr@grsm.com
Georgia Supreme Court Says Construction Defects Can Be an “Occurrence”
July 31, 2013 —
CDJ STAFFThe Georgia Supreme Court has ruled in an insurance coverage case, concluding that under a commercial general liability policy, defective construction can count as an occurrence. William Wildman and Kent Collier discuss the case in a Legal Alert published by their firm, Sutherland Asbill & Brennan LLP. The court decisions came about after the U.S. Court of Appeals certified the question to the Georgia Supreme Court.
Wildman and Collier note that the Georgia Supreme Court “after analyzing recent Georgia decisions regarding CGL insurance and construction defects, as well as noting cases from other jurisdictions, held that ‘an “occurrence” as the term is used in a standard CGL policy, does not require damage to the property or work of someone other than the insured.” The court also “held that an ‘occurrence’ must arise from liability for a causeof action that is consistent with the concept that the ‘occurrence’ is ‘accidental.’”
However, they note that the court also concluded that “certain ‘business risk’ coverage exclusions common in many standard CGL policies may apply to exclude coverage for defective construction even though such defective construction constitutes an ‘occurrence.’”
Read the court decisionRead the full story...Reprinted courtesy of
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.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
What Is a Construction Defect in California?
October 25, 2013 —
CDJ STAFFWilliam Naumann answers that question for the site SuperLawyers. Mr. Naumann notes that a construction defect “is a deficiency in the design or construction of a building or structure,” with specific examples of including “significant cracks in the slab and/or foundation; unevenness in floor slabs caused by abnormal soils movement; leaky roofs, windows, or door,” though he admits that he has not provided an all-inclusive list.
He also discusses the deadlines for various types of construction defects, which in California range from 1 year to 10 years, depending on what the defect is. Untreated wood posts only get two years, while steel fences must be free of defects for four.
Read the court decisionRead the full story...Reprinted courtesy of
What’s the Best Way to “Use” a Construction Attorney?
January 04, 2023 —
Christopher G. Hill - Construction Law MusingsThe question in the title of this post is one I think about a lot. I have also discussed
some aspects of this topic previously here at Musings. As 2022 winds down and we head into 2023, my thoughts have landed back on how I as a construction lawyer can
help my clients and how my construction industry clients can help me to be more effective. This post will focus on the latter aspect of the representation process.
The first key aspect to helping your construction counsel more effectively assist you with any aspect of your construction business is to communicate. Attorneys are only as good as the information that we have. Always remember that while you as the contractor lived the project about which you called your attorney, that attorney is just hearing about it for the first time. Construction lawyers spend a lot of time playing catch-up and trying to get familiar with all aspects (good and bad) of your claim or issue. Do not assume that even the most knowledgeable construction attorney can anticipate how the evidence and facts will come out over the course of a representation. Attorneys apply law to facts, it is up to the client to give the attorney the initial facts.
Read the court decisionRead the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Washington Supreme Court Expands Contractor Notice Obligations
November 28, 2018 —
Brett M. Hill - Ahlers Cressman & Sleight BlogThe Washington State Supreme Court dealt another blow to public works contractors in Washington State. In a case recently issued by the court, Nova Contracting, Inc. v. City of Olympia, [1] the court expanded contractors’ obligations when providing notice on public works construction projects. The Nova Contracting case was the subject of a previous blog. The case involved Nova Contracting and the City of Olympia. Nova was the low bidder on the contract. Nova alleged that the City of Olympia did not want Nova to win the job and intentionally hindered Nova’s ability to perform the job. The facts alleged by Nova, which were covered in the previous blog, involved the City’s improper and apparently punitive rejection of submittals on the job and the City’s eventual wrongful termination of Nova. Of significance in the case is that Nova never actually began work on the job. All that Nova had done at the time of termination was begin mobilizing its equipment on site. The Court of Appeals found that Nova had alleged sufficient facts to establish that the City violated the duty of good faith and fair dealing by improperly rejecting Nova’s submissions and had breached the contract with Nova by improperly terminating.
Read the court decisionRead the full story...Reprinted courtesy of
Brett M. Hill, Ahlers Cressman & Sleight PLLCMr. Hill may be contacted at
brett.hill@acslawyers.com
New York’s Second Department Holds That Carrier Must Pay Judgment Obtained by Plaintiff as Carrier Did Not Meet Burden to Prove Willful Non-Cooperation
November 23, 2020 —
Craig Rokuson - Traub LiebermanIn the recent case of DeLuca v. RLI Insurance Company, 2020 WL 5931054 (October 7, 2020), the Supreme Court, Appellate Division, Second Department held that RLI had a duty to pay a judgment obtained by an underlying plaintiff against RLI’s insured, MLSC. The underlying plaintiff brought the action directly against the carrier after obtaining a judgment against MLSC, and when the judgment remained unsatisfied, serving RLI with the judgment. As an initial matter, the court found that the direct action by the plaintiff was proper under New York Insurance Law 3420(a), which allows for an injured plaintiff to maintain a direct action against a carrier if a judgment against that carrier’s insured remains unsatisfied for a period of 30 days and the carrier is served with that judgment. In that event, the plaintiff steps into the shoes of the insured and is entitled to the rights of the insured (and is also subject to the carrier’s coverage defenses).
Reprinted courtesy of
Craig Rokuson, Traub Lieberman
Mr. Rokuson may be contacted at crokuson@tlsslaw.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of
Cracked Girders Trigger Scrutiny of Salesforce Transit Center's Entire Structure
November 21, 2018 —
Nadine M. Post - Engineering News-RecordNov. 15, 2018 Update:
After calling on Nov. 8 for a “complete structural evaluation” of San Francisco's 1.2-million-sq-ft SalesForce Transit Center, following the discovery on Sept. 25 of significant, mid-span cracks in the bottom flanges of twin parallel girders spanning 80 ft over Fremont Street, the Transbay Joint Powers Authority now says the problems with girders are localized.
Read the court decisionRead the full story...Reprinted courtesy of
Nadine M. Post, ENRMs. Post may be contacted at
postn@enr.com