“But I didn’t know what I was signing….”
May 30, 2018 —
Bobby Kethcart - Snell & Wilmer Real Estate Litigation BlogIn real estate cases—which frequently involve long purchase agreements, loan documents, personal guarantees, deeds of trust, etc.—we’ve likely all had a client or opposing party who trots out the line that they didn’t know what they were signing, or they didn’t read or understand what they were signing, so the document shouldn’t be enforced according to its terms.
Most of us instinctively believe the claim is a loser: You signed the document, you’re bound by it.
But is this actually right?
Well, we did some digging. Here is the Arizona law on the subject:
Nationwide Resources Corp. v. Massabni, 134 Ariz. 557, 658 P.2d 210 (App. 1982):
“A mistake of only one of the parties to a contract in the expression of his agreement or as to the subject matter does not affect its binding force and ordinarily affords no ground for its avoidance, or for relief, even in equity.”
“A manifestation of acceptance to the offeror or his agent forms a contract regardless of the intent of the acceptor.”
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Bobby Kethcart, Snell & WilmerMr. Kethcart may be contacted at
rkethcart@swlaw.com
Federal Interpleader Dealing with Competing Claims over Undisputed Payable to Subcontractor
September 28, 2017 —
David Adelstein - Florida Construction Legal UpdatesWhat do you do if you are holding undisputed money owed to a subcontractor? Well, you make an effort to pay it or tender it! Right? I am never a fan of a client holding undisputed sums without a legitimate contractual basis.
There are circumstances, however, where the effort to pay an undisputed payable is not so easy. In fact, it is challenging, as in the below case example where the subcontractor filed for an Assignment for the Benefit of Creditors (referred to as an “ABC”). An ABC, in a nutshell, allows an insolvent entity to file an insolvency action in state court governed by state law and choose its assignee (versus a federal bankruptcy action governed by federal law where a trustee is appointed). One major difference is that there is no automatic stay in an ABC as there is in a federal bankruptcy action. Thus, the insolvent entity can still be sued, but, while that entity is in an ABC, there are many creditors that will not be able to enforce a judgment. (See Florida Statute Ch. 727).
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
The National Labor Relations Board Joint Employer Standard is Vacated by the Eastern District of Texas
April 22, 2024 —
Andrew G. Vicknair - The Dispute ResolverMany employment laws use the concept of joint employer to make more than one business entity responsible for complying with employment law obligations towards employees who to varying degrees work for, or under the direction of entities who are not technically the employees primary employer. Nowhere is that issue more prevalent than in contractor subcontractor relationships. Over the years the National Labor Relations Board (NLRB) has developed various tests for determining joint employer status. Unless a business entity is an employer of individuals, the NLRB has no jurisdiction over a dispute between the workers and a business entity for whom they work.
It is important for contractors to understand the importance of being an employer and the obligations that flow from such status. Likewise, it is also important to understand when a contractor may be classified as a “joint employer” over certain individuals. Depending on the specific laws involved, such a finding of joint-employer status can happen under the “joint employer doctrine” which often exists in subcontractor and temporary employment arrangements. The “joint-employer doctrine” may render a contractor responsible for another company’s employment liabilities.
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Andrew G. Vicknair, D'Arcy Vicknair, LLCMr. Vicknair may be contacted at
agv@darcyvicknair.com
Will Protecting Copyrights Get Easier for Architects?
November 28, 2022 —
Scott L. Baker - Los Angeles Litigation BlogLike any creative business, architects rely on their intellectual property. Their designs are at the center of their work. For example, as we discussed in a previous post, many architects nowadays focus on creating new ways for their building designs to be environmentally friendly and sustainable.
However, nearly every form of intellectual property faces the risk of theft or infringement in the business world.
Architects face unique challenges with their copyrights – as well as risks.
Copyright Issues in the Architecture World
One of the biggest issues, of course, is that there are many aspects of building designs that architects
cannot protect by copyright. This is simply because various details are fundamental in the construction of every building. One person cannot own the rights to such a common design.
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Scott L. Baker, Baker & AssociatesMr. Baker may be contacted at
slb@bakerslaw.com
It’s a Bird, It’s a Plane . . . No, It’s a Drone. Long Awaited FAA Drone Regulations Finally Take Flight
September 22, 2016 —
Garret Murai – California Construction Law BlogIt’s a bird.
It’s a plane.
No, it’s a drone. Also known as an unmanned aerial vehicle (UAV) or unmanned aircraft (UA).
And, technically, they’ve been around a long time, since at least 1849 when the Australians attacked Italy with unmanned balloons loaded with explosives. Even a young Marilyn Monroe, when she was known simply as “Norma Jean,” worked at a company called Radioplane making unmanned aircrafts during World War II.
Since then, as technology has advanced, which, in turn, has made the cost of older technology go down, what was once old, is now new again. Drones are making regular appearances in the movies (think the Divergent Series: Allegiant). The paparazzi (who are apparently tired of getting punched in the face) are using them. And some day, perhaps very soon, they may just be delivering your packages (think Amazon Prime Air).
One of the earliest adopters of drones outside the military, however, has been the construction industry which has used drones to track the progress of construction projects and conduct site surveys such as this one showing the progress of Apple’s new campus in Cupertino[.]
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Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Wheaton to Require Sprinklers in New Homes
November 06, 2013 —
CDJ STAFFThe town of Wheaton, Illinois is considering a change to its building codes, based on the recommendations made in the 2012 building code, released by the International Code Council. Eighty-two towns in Illinois already require new homes to have fire sprinklers. Wheaton did not adopt any changes from the 2006 or 2009 building code; they are currently using the standards of the 2003 edition.
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Skipping Depositions does not Constitute Failure to Cooperate in New York
March 09, 2020 —
Ryan G. Nelson - Saxe Doernberger & VitaInsurance policies typically impose, on the insured, a duty to cooperate with the insurer during investigation and litigation of a claim. Non-cooperation can be grounds for denying coverage. This begs the question: what constitutes non-cooperation?
Recently, a New York appellate court affirmed a trial court’s decision that failure by an employee of the insured to show up for three court-ordered depositions did not rise to the level of “willful and avowed obstruction” and therefore, the insurer could not deny coverage on the basis of non-cooperation. See Foddrell v. Utica First Insurance Co., 178 A.D.3d 901 (N.Y. App. Div. 2019). In so holding, the Foddrell court applied the Thrasher test: “To effectively deny coverage based upon lack of cooperation, an insurance carrier must demonstrate (1) that it acted diligently in seeking to bring about the insured’s cooperation, (2) that the efforts employed by the insured were reasonably calculated to obtain the insured’s cooperation, and (3) that the attitude of the insured, after his or her cooperation was sought, was one of willful and avowed obstruction.” Id.; see Thrasher v. U. S. Liab. Ins. Co., 19 N.Y.2d 159, 167 (1967).
Thomas Foddrell’s suit against Utica First Insurance Company (“Utica First”) stemmed from his personal injury suit against Janey & Rana Construction Corporation (“J&R” (Utica First’s insured). During that lawsuit, J&R’s principal, Gardeep Singh, failed to appear for two court-ordered depositions. After his failure to appear at those depositions, Utica First sent an investigator to inform Singh that he was scheduled for a third deposition. Singh responded to the investigator that he would speak with J&R’s attorneys about the matter. Ultimately, Singh did not appear for the third court-ordered deposition. In response to Singh’s repeated failure to appear for the depositions, Utica First sent Singh a letter advising him that because of his lack of cooperation, Utica would no longer agree to indemnify J&R.
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Ryan G. Nelson, Saxe Doernberger & VitaMr. Nelson may be contacted at
rgn@sdvlaw.com
Complying With Data Breach Regulations in the Construction Industry
November 24, 2019 —
Ryan Bilbrey - Construction ExecutiveRecent data breach incidents—like the massive Capital One cyberattack, where a former employee accessed more than 100 million customer accounts and credit card applications—have left many users questioning how safe their information really is in the hands of companies.
There is reason to be concerned. More than 4.1 billion records were exposed in nearly 4,000 data breaches reported in the first half of 2019 alone, according to the 2019 MidYear QuickView Data Breach Report. Construction companies are not immune.
As the industry becomes more reliant on technology—using augmented reality, Building Information Modeling and drones on construction sites, for example—construction companies are becoming greater targets for hackers looking to gain a financial or strategic advantage.
Instead of assuming a company will never experience a breach (or rather, denying that it will ever happen), it’s important to be aware of possible threats and establish data breach response policies to minimize potentially catastrophic fallout.
Reprinted courtesy of
Ryan Bilbrey, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Bilbrey may be contacted at
rbilbrey@biaprotect.com