TOP TAKE-AWAY SERIES: The 2023 Annual Meeting in Vancouver
May 22, 2023 —
Marissa L. Downs - The Dispute ResolverProgram coordinators Katie Kohm and Peter Marino put together an amazing annual meeting last week in Vancouver. While its impossible to retread all of the ground we covered in discussing the "future of construction law," here are my top 10 take-aways:
10. Public-private partnerships may finally be taking off in the United States. P3s were slow to be pursued within the United States. According to panelists Peter Hahn, John Heuer, Sean Morley, and Lee Weintraub, this was chiefly because of the reticence of public bodies to deviate from the standard vendor model. Looking at the recent trends, it seems as though the United States--the "sleeping giant of public-private partnerships"--may finally be waking up. In 2022, a total of 29 public-private partnership projects were signed or reached financial close within the United States, representing an increase of 16% from the prior year. Thirty-eight states also now have some form of P3 enabling legislation. While we still lag behind our Canadian cousins, the future of P3s in this country is looking a little brighter.
9. The value proposition for the architecture profession is broken. Architects Lakisha Ann Woods (the CEO of AIA) and Phillip Bernstein (Associate Dean & Professor Adjunct Yale University) shared their thoughts with moderator Kelly Bundy on the challenges facing the architecture profession. The biggest issue they noted was the need to recruit qualified (and diverse) candidates into the profession. Unfortunately, this is difficult to do given the long career track (on average, it becomes 13.1 years to become a licensed architect) and the low salaries paid compared to other professions. Phillip shared that the high average starting salary for architecture grads from Yale (one of the leading programs in the country) is just $76,000. If we want to recruit the best and most innovative candidates into the field, the value proposition needs to change.
Read the court decisionRead the full story...Reprinted courtesy of
Marissa L. Downs, Laurie & Brennan, LLPMs. Downs may be contacted at
mdowns@lauriebrennan.com
Musk Says ‘Chicago Express’ Tunnel Project Could Start Work in Months
August 14, 2018 —
Jeff Yoders – Engineering News-RecordTechnology guru Elon Musk beat three other construction proposals on June 14 to win the exclusive right to negotiate a design-build-operate-maintain contract with the City of Chicago to provide a high-speed underground passenger transport system between the downtown Loop area and O’Hare Airport. He proposes a one-way trip of about 12 minutes at 150 mph compared with the current 40-minute average by rail or car.
Read the court decisionRead the full story...Reprinted courtesy of
Jeff Yoders, ENRMr. Yoders may be contacted at
yodersj@enr.com
Partner Lisa M. Rolle and Associate Vito John Marzano Obtain Dismissal of Third-Party Indemnification Claims
December 22, 2019 —
Lisa M. Rolle & Vito John Marzano - Traub Lieberman PerspectivesOn June 1, 2019, Traub Lieberman partner Lisa M. Rolle and associate Vito John Marzano successfully secured dismissal of all third-party claims on behalf of a corporate entity and its principal in a third-party action in the New York State Supreme Court, County of Bronx. The underlying action concerned a trip and fall that occurred on a public sidewalk located in the Bronx. Plaintiff commenced suit against the corporation property owner and its principal. Defendants/third-party plaintiffs commenced the third-party action seeking contractual and common-law indemnification against three third-party defendants, the corporate tenant, another corporate entity that was not a party to the lease and its principal. Traub Lieberman represented the latter two third-party defendants.
On behalf of the corporate entity that was not a party to the lease, Traub Lieberman moved for dismissal on the basis that the lease constitutes documentary evidence establishing as a matter of law that the non-tenant corporation cannot be held liable to third-party plaintiffs. On behalf of the principal, Traub Lieberman sought dismissal for failure to state a cause of action because the principal was shielded from liability by virtue of having incorporated his business, and the complaint did not allege a claim for piercing the corporate veil.
In opposition, third-party plaintiffs sought to amplify their pleadings by alleging that a de facto merger had occurred between the non-tenant corporation and the tenant corporation. Third-party plaintiffs further argued that the corporate principal executed a guaranty to the lease, thus accepting liability on behalf of the tenant corporation.
Reprinted courtesy of
Lisa M. Rolle, Traub Lieberman and
Vito John Marzano, Traub Lieberman
Ms. Rolle may be contacted at lrolle@tlsslaw.com
Mr. Marzano may be contacted at vmarzano@tlsslaw.com
Read the court decisionRead the full story...Reprinted courtesy of
Commentary: How to Limit COVID-19 Related Legal Claims
January 11, 2021 —
Joshua Lindsay, Crowell & Moring & Meagan Bachman, Crowell & Moring - ENRWe are 10 months into the global pandemic. Given the magnitude of additional costs and upended expectations and risk-allocation, we foresee a wave of disputes coming soon. Whether it is large or small depends heavily on how well project team members handle the COVID-19 project impacts now.
Reprinted courtesy of
Joshua Lindsay, Crowell & Moring (ENR) and
Meagan Bachman, Crowell & Moring (ENR)
Ms. Bachman may be contacted at mbachman@crowell.com
Mr. Lindsay may be contacted at joshlindsay@crowell.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of
As Laura Wreaks Havoc Along The Gulf, Is Your Insurance Ready to Respond?
October 19, 2020 —
Walter J. Andrews, Michael S. Levine, Andrea DeField & Meagan R. Cyrus - Hunton Insurance Recovery BlogAs Texas and Louisiana brace for Hurricane Laura to make landfall, policyholders in the affected regions should be making last minute preparations to ensure their properties are covered in the storm’s wake.
Hurricane Laura is expected to make landfall as a Category 4 storm tonight, or early Thursday morning between Houston, Texas and Lake Charles, Louisiana. With wind speeds reaching over 120 mph, Laura has the potential for catastrophic damage to life and property and long-term disruption of normal business operations. The following three steps are crucial to ensuring that you protect your property and business and maximize insurance proceeds should your property fall in the path of this storm:
- Locate a copy of your policy.
Having your policy on hand prior to a loss will aid in starting your claim as soon as possible, as it may be more difficult to get in touch with your broker following a storm where thousands of claims are taking place simultaneously.
Reprinted courtesy of
Walter J. Andrews, Hunton Andrews Kurth,
Michael S. Levine, Hunton Andrews Kurth,
Andrea DeField, Hunton Andrews Kurth and
Meagan R. Cyrus, Hunton Andrews Kurth
Mr. Andrews may be contacted at wandrews@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
Ms. DeField may be contacted at adefield@HuntonAK.com
Ms. Cyrus may be contacted at mcyrus@HuntonAK.com
Read the court decisionRead the full story...Reprinted courtesy of
Insurer Has Duty to Defend Faulty Workmanship Claim
January 22, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe magistrate judge recommended a determination that the insurer owed a defense to the subcontractor sued for faulty workmanship. Hanover Lloyds Ins Co. v. Donegal Mut. Ins. Co., 2023 U.S. Dist. LEXIS 180877 (W.D. Texas Oct. 5, 2023).
Poe Investments, Ltd. entered into an agreement with Jordan Foster Construction, LLC for construction of an auto sales and service facility ("Facility"). Jordan hired multiple subcontractors, including Texas Electrical Contractors, LLC ("TEC"). Subsequently, Poe sold the Facility to 6330 Montana, LLC ("Montana").
Montana filed suit against Jordan for breach of express warranties, breach of contract, and negligence. Jordon filed a third-party complaint against its subcontractors, including TEC. Jordan alleged that TEC provided "defective and negligent construction work" while carrying out the provision and installation of electrical and fire alarm systems at the Facility.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Third Circuit Holds That Duty to Indemnify "Follows" Duty to Defend
December 27, 2021 —
Jeffrey J. Vita - Saxe Doernberger & Vita, P.C.In a win for policyholders, the Third Circuit Court of Appeals recently affirmed a District Court’s 2018 ruling, which held that the duty to indemnify follows the duty to defend where a settlement precludes a determination on the facts of the case relative to liability and apportionment.
In Liberty Mutual Insurance Co. v. Penn National Mutual Casualty Insurance Co.,1 a large concrete panel collapsed and killed a construction worker at a construction site in New Kensington, Pennsylvania. Cost Company (“Cost”), Liberty Mutual’s insured, was a masonry subcontractor on the project and had further subcontracted with Pittsburgh Flexicore Co. (“Flexicore”), Penn National’s insured, for the concrete panels. Cost’s subcontract agreement required Flexicore to name Cost as an additional insured under its general liability policy issued by Penn National.
When the construction worker’s widow filed a wrongful death lawsuit against Cost and Flexicore, Cost demanded that Penn National defend and indemnify it as an additional insured under the policy. Penn National refused, arguing that any additional insured status had terminated at the conclusion of Flexicore’s work for Cost. As a result, Liberty Mutual defended Cost in the lawsuit, which was ultimately settled.
Read the court decisionRead the full story...Reprinted courtesy of
Jeffrey J. Vita, Saxe Doernberger & Vita, P.C.Mr. Vita may be contacted at
JVita@sdvlaw.com
Construction Costs Up
February 21, 2013 —
CDJ STAFFThe cost of putting a building up just got a little higher. The General Contractors of America have tracked an 0.7 percent increase in the cost of building materials between December and January, leading to a 1.3 percent increase through 2012. Ken Simonson, the organization’s chief economist, said that “contractors had to contend with huge leaps in prices for gypsum, wallboard and lumber, as well as significant increases in the cost of insulation and architectural coatings such as paint.”
And it isn’t just building materials. Simonson notes that diesel prices are up too, which increases the costs of moving heavy machinery across the site, among other considerations. Don’t expect things to change. “It is clear that costs are rising significantly higher in February,” said Simonson.
Read the court decisionRead the full story...Reprinted courtesy of