Building Amid the COVID Challenge
November 29, 2021 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogAt longtime client Clark Construction, Dave Beck took charge of risk management just weeks before the COVID-19 pandemic struck.
David Beck made a big career move last year—just how big, he soon learned. In January 2020, Beck became division president for risk management at Clark Construction Group, a major national builder based in Bethesda, Md., with more than 4,000 employees across the U.S. In business since 1906, Clark has grown from a small, local excavator into one of the country’s best-known providers of construction services.
Beck took up his position at Clark shortly before COVID-19 changed life for everyone. We recently reached out to him to learn how his role has evolved since then.
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Pillsbury's Construction & Real Estate Law Team
Just Because You Allege There Was an Oral Contract Doesn’t Mean You’re Off the Hook for Attorneys’ Fees if you Lose
March 28, 2022 —
Garret Murai - California Construction Law BlogThere’s certain things in life you shouldn’t mix. Like drinking and driving. Bleach and ammonia. Triple dog dares and frozen poles. And angry lawyers and litigation.
In Spahn v. Richards, Case No. A159495 (November 30, 2021), angry lawyer Jeffrey Spahn sued general contractor Dan Richards claiming that Richards orally agreed to build Spahn’s million dollar plus house for $515,000. Not only did Spahn not recover anything from Richards, he ended up owing Richards $239,171 in attorney’s fees and costs, after he denied a request for admission asking that he admit that there was no oral contract.
The Spahn Case
In 2017, Spahn filed suit against Richards for breach of oral contract, breach of implied covenant of good faith and fair dealing, and promissory estoppel. According to Spahn, he met Richards in June 2015 and the two reached an agreement whereby Richards agreed to demolish Spahn’s house for $12,500 and build a new one for $515,000. Further according to Spahn, Richards agreed to this “fixed price” “oral contract” in June 2015, and then, on July 1, 2015, Richards “confirmed and agreed that he would perform the construction project” for $515,000 and would complete construction by May 2016.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
The Impact of the IIJA and Amended Buy American Act on the Construction Industry
May 23, 2022 —
Chad Theriot & Stan Milan - ConsensusDocsContractors working on federally funded construction projects need to be aware of the new Infrastructure Investment and Jobs Act (IIJA) and amendments to the Buy American Act (BAA) which have expanded the requirement that contractors use domestic goods and materials on their projects. Failure to consider these requirements could have far-reaching impacts.
Overview of Domestic-Procurement Laws and Regulations
A number of domestic-preference laws exist today, which generally require that certain goods purchased with federal funds must be produced primarily in the United States. Projects affected include Department of Transportation (DOT)-funded highways, public transportation, airports, aviation, and rail, and Environmental Protection Agency (EPA)-funded water infrastructure initiatives, among others.
Reprinted courtesy of
Chad Theriot, Jones Walker (ConsensusDocs) and
Stan Millan, Jones Walker (ConsensusDocs)
Mr. Theriot may be contacted at ctheriot@joneswalker.com
Mr. Millan may be contacted at smillan@joneswalker.com
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Congratulations to BWB&O’s 2023 Super Lawyers Rising Stars!
June 26, 2023 —
Bremer Whyte Brown & O'Meara LLPBWB&O is excited to announce Partner
Courtney Serrato and Associates
Andrew Arakelian,
Pamchal Deylami, and
Brian Taylor have been selected in the 2023 Southern California Super Lawyers list as Rising Stars for their work in Family Law and Civil Litigation. To read Super Lawyers’ digital publication, please click
here.
Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The objective of Super Lawyers’ patented multiphase selection process is to create a credible, comprehensive, and diverse listing of outstanding attorneys that can be used as a resource for attorneys and consumers searching for legal counsel. Please join us in congratulating Courtney, Andrew, Pamchal, and Brian on achieving this level of recognition!
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Bremer Whyte Brown & O'Meara LLP
Court Provides Guidance on ‘Pay-When-Paid’ Provisions in Construction Subcontracts
July 13, 2020 —
Ted R. Gropman & Cindy J. Lee - ConsensusDocsOn April 17, the California Court of Appeal decided Crosno Construction, Inc. v. Travelers Casualty & Surety Company of America,1 effectively narrowing the scope of enforceable “pay-when-paid” provisions in construction subcontracts to the extent the subcontractor seeks recovery against a general contractor’s payment bond surety. Although the Crosno case involved a public works project, the rationale and holding should apply with equal force to private works projects. Basing the bulk of its decision on the Wm. R. Clarke Corp. v. Safeco Insurance Co.2 case, the court found that an open-ended “pay-when-paid” provision in a subcontract is not enforceable against a subcontractor that seeks to recover on a public works payment bond claim. This article discusses the Crosno decision and the implications for contractors on both sides of the contract moving forward.
Brief Case Summary
In Crosno, general contractor Clark Bros., Inc. contracted with the North Edwards Water District (the District) to build an arsenic removal water treatment plant. Clark hired steel storage tank subcontractor Crosno Construction, Inc. to build and coat two steel reservoir tanks. Clark and Crosno’s subcontract included a “pay-when-paid” provision, which stated that Clark would pay Crosno within a “reasonable time” of receiving payments from the owner, but “in no event less than the time Contractor and Subcontractor require to pursue to conclusion their legal remedies against Owner or other responsible party to obtain payment.” After Crosno completed its work, a dispute arose between Clark and the District, and the District withheld payment from Clark (including the monies earmarked for Clark’s subcontractors). Clark sued the District for payment, and Crosno filed its own action against Travelers Casualty and Surety Company of America, the surety on Clark’s statutory public works payment bond, for recovery of the unpaid subcontract balance. Travelers rejected Crosno’s bond claim as premature, invoking the “pay-when-paid” subcontract language and pointing to Clark’s pending payment action against the District. The issue on appeal was whether the “pay-when-paid” provision in the subcontract blocked Crosno from recovering under the payment bond from Travelers while Clark’s lawsuit against the District was still pending.
Reprinted courtesy of
Ted R. Gropman, Pepper Hamilton LLP and
Cindy J. Lee, Pepper Hamilton LLP
Mr. Gropman may be contacted at ted.gropman@troutman.com
Ms. Lee may be contacted at cindy.lee@troutman.com
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Appraisers May Determine Causation
January 21, 2015 —
Tred R. Eyerly – Insurance Law HawaiiIn a case of first impression, the Iowa Court of Appeals held that an appraisal may determine issues of causation. North Glenn Homeowners Association v. State Farm Fire & Cas. Co., 854 N.W. 2d 67 (Iowa Ct. App. 2014).
On July 15, 2009, North Glenn Homeowners Association submitted a claim to State Farm for hail damage on the roof. The claim was paid. North Glenn did not repair all of the damage, instead deciding to use some of the money to make other repairs to the property.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Three Key Takeaways from Recent Hotel Website ADA Litigation
April 26, 2021 —
Shane Singh & Grace Mehta - Lewis BrisboisDespite the COVID-19 pandemic and its chill on the hospitality industry, ADA-related digital lawsuits increased by approximately 23% in 2020. Many of these lawsuits are filed against hotels. The complaints allege that a hotel’s online reservation system failed to provide enough detail for individuals with disabilities to decide if the hotel meets their accessibility needs.
These plaintiffs will often claim that it is insufficient to describe an aspect of a hotel or room as “accessible” because the term is an opinion or conclusion. Plaintiffs argue that a hotel’s reservation system must report specific information, such as the dimensions of space under accessible desks and sinks, the slopes of surfaces, doorway clearance, and numerous other technical requirements under the ADA.
Many hotels are fighting back, arguing that the detail provided is sufficient and in compliance with the ADA. So far this year, in February 2021, two judges in the U.S. District Court for the Central District of California, Judge Percy Anderson and Judge Cormac Carney, agreed with the defendants, dismissing three cases with prejudice.
Reprinted courtesy of
Shane Singh, Lewis Brisbois and
Grace Mehta, Lewis Brisbois
Mr. Singh may be contacted at Shane.Singh@lewisbrisbois.com
Ms. Mehta may be contacted at Grace.Mehta@lewisbrisbois.com
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Insurer Beware: Failure to Defend Ends with Hefty Verdict
June 01, 2011 —
Douglas Reiser, Builders Council BlogServed with a lawsuit that you turned over to your insurer? Insurer refusing to defend you? Well, find some hope in this news. Washington’s IFCA has the claws to ensure that insurers perform their duties.
Contractors heavily rely on the defense provisions of their Commercial General Liability (CGL) policies. In construction, a legal dispute can easily rear its head when you least expect it. Luckily, Washington registered contractors are required to maintain CGL insurance. That insurance often provides contractors with adequate legal defense in the event that they are sued.
But, what if your insurer turns down the defense request? They might be staring at massive damages. A current Reiser Legal client, Australia Unlimited, Inc., recently won a large verdict against Hartford Insurance, after the insurer unreasonably denied their claim. The firm who represented Australia Unlimited Inc. in that case, Hackett Beecher and Hart, were successful in procuring a $5.43 Million verdict
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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com
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