Updates to AIA Contract Applications
January 07, 2025 —
Anand Gupta - Construction Law Zone BlogThe construction industry often relies on contract forms drafted by the American Institute of Architects (AIA). These AIA forms include agreements between owners, designers, consultants, contractors, subcontractors, and construction managers. Some prefer to use the forms in the stock form, but others prefer to modify the language to their benefit. These modifications can be made in Microsoft Word and uploaded into AIA’s current web-based system, ACD5, to create redlines against the standard AIA forms (Checked-Drafts) and final clean versions without the “DRAFT” watermarks. Law firms and clients keep repositories of these modified templates for future projects.
A common issue with modifying documents offline in Microsoft Word and passing the documents back-and-forth between different email and document management systems is that the metadata of the forms becomes corrupted. AIA technical support then must reset the metadata, which takes hours or days. This delay can pose challenges to clients when they are up against a deadline.
Read the court decisionRead the full story...Reprinted courtesy of
Anand Gupta, Robinson+ColeMr. Gupta may be contacted at
agupta@rc.com
Plaintiffs’ Claims in Barry v. Weyerhaeuser Company are Likely to Proceed after Initial Hurdle
January 28, 2019 —
Frank Ingham - Colorado Construction LitigationOn December 18, 2018, Federal Magistrate Judge Scott T. Varholak recommended in a written opinion that the Motion of Defendant Weyerhaeuser Company (“Weyerhaeuser”) to Dismiss Amended Complaint Pursuant to F.R.C.P. 12(b)(6) be denied. Barry v. Weyerhaeuser Company, 2018WL6589786 (D. Colo. 2018). As such, we believe District Court Judge Christine M. Arguello will accept this recommendation and the lawsuit will proceed.
At interest in this lawsuit are TJI joists designed, manufactured, and sold by Weyerhaeuser for residential construction. Headquartered in Seattle, Washington, Weyerhaeuser is one of the world’s largest private owners of timberlands, owning or controlling nearly 12.4 million acres in the United States and managing 14 million acres in Canada. It is a public company that trades on the New York Stock Exchange with revenues of $7.2 billion in 2017.[1] In addition to managing forests, Weyerhaeuser has interests in energy, minerals, and wood products.
Read the court decisionRead the full story...Reprinted courtesy of
Frank Ingham, Higgins, Hopkins, McLain & RoswellMr. Ingham may be contacted at
ingham@hhmrlaw.com
Re-Thinking the One-Sided Contract: Considerations for a More Balanced Approach to Contracting
November 21, 2022 —
William Underwood - ConsensusDocsConstruction projects can be inherently risky – often there are multiple parties (owners, architects, engineers, contractors, subcontractors, consultants, vendors, government officials, sureties, insurers, and many others), unforeseen site conditions, tangled supply chains, acts of God, inadequate funding, site safety matters, and a whole host of other issues that can make even a relatively straight-forward job complex. Parties necessarily want to minimize their individual risk to the greatest extent possible on construction projects. And to do so, they may seek to push as much risk as possible onto the other side through one-sided terms in their construction contract.
But is an entirely one-sided contract the best way to mitigate risk? In many instances, the answer is no. Every contract is different – and many considerations should be taken into account when drafting and negotiating contracts – but entirely one-sided can often have unintended consequences and create risks that otherwise might not exist in a contract that allocates and balances risk more equally across the parties.
This article reviews several considerations (although it is not an exhaustive list) for avoiding one-sided contracts, including some of the benefits created through the use of equitable contract clauses. And for context, some examples of one-sided contract clauses include no relief for other contractor/owner-caused delays; no relief for force majeure events; no relief for unforeseen site conditions; and broad form indemnification clauses (i.e. one party assumes the obligation to pay for another party’s liability even if the other party is solely at fault). Again, this is a non-exhaustive list, and many other standard contract provisions can be altered to become one-sided. But the general premise of a “one-sided contract clause” is that it shifts all risk, obligation, and liability to one party. And this article examines why that might not be the best idea.
Read the court decisionRead the full story...Reprinted courtesy of
William Underwood, Jones Walker LLPMr. Underwood may be contacted at
wunderwood@joneswalker.com
A Reminder to Get Your Contractor’s License in Virginia
April 25, 2023 —
Christopher G. Hill - Construction Law MusingsHow are ducks and contractors alike? A question I get often, particularly from construction contractors outside of Virginia is whether they need to get a Virginia contractor’s license. The answer is almost invariably “yes.” The next question is why? The answer is almost always “Because state law says so.” With some minor exceptions for material suppliers and the like, Virginia law requires that all of those that perform construction for others carry the proper license and specialization for the work performed. There is no exception for the proverbial “paper contractor” that takes money from an owner and subcontracts all of the actual physical work. It does not matter if you use a different term for what you do for the owner. If it walks like a duck and quacks like a duck. . .its a duck. If you take money to perform construction, you’re a contractor.
Some of the consequences of contracting without a license (aside from possible criminal charges) include among other things, the inability to perfect a mechanic’s lien under Va. Code 43-3(D) and, with minor exceptions, the ability to enforce a contract (meaning it really hurts your ability to get paid).
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
Ohio Court Refuses to Annualize Multi-Year Policies’ Per Occurrence Limits
June 19, 2023 —
Patricia Santelle, Adam Berardi & Lynndon Groff - White and Williams LLPWhite and Williams recently obtained summary judgment against an insured on behalf of an insurer and a guarantor, establishing that two multi-year insurance policies provide per occurrence limits on a per policy rather than a per year basis, which shielded potential exposure by over $100 million.
The insured had previously sought and obtained coverage under two policies in connection with a single occurrence arising out of massive environmental contamination claims involving a large industrial site. The issue of whether the policies provide per occurrence limits on a policy term or annual basis was not resolved in this earlier litigation.
The first policy was effective for three years and provides per occurrence limits of $40 million. The second policy was effective for up to three years and provides per occurrence limits of $15 million.
Reprinted courtesy of
Patricia Santelle, White and Williams LLP,
Adam Berardi, White and Williams LLP and
Lynndon Groff, White and Williams LLP
Ms. Santelle may be contacted at santellep@whiteandwilliams.com
Mr. Berardi may be contacted at berardia@whiteandwilliams.com
Mr. Groff may be contacted at groffl@whiteandwilliams.com
Read the court decisionRead the full story...Reprinted courtesy of
10 Haight Lawyers Recognized in Best Lawyers in America© 2023 and The Best Lawyers: Ones to Watch 2023
August 22, 2022 —
Haight Brown & Bonesteel LLPFour Haight Brown & Bonesteel LLP attorneys were selected for Best Lawyers in America© 2023. Congratulations to:
- Bruce Cleeland – Product Liability Litigation – Defendants
- Peter Dubrawski – Product Liability Litigation – Defendants
- Denis Moriarty – Insurance law
- Ted Penny – Workers’ Compensation Law – Claimants
Six Haight Brown & Bonesteel LLP attorneys were selected for Best Lawyers®: Ones to Watch 2023. Congratulations to:
- Courtney Arbucci – Personal Injury Litigation – Defendants; Product Liability Litigation – Defendants
- Frances Brower – Product Liability Litigation – Defendants
- Kyle DiNicola – Transportation Law
- Arezoo Jamshidi – Appellate Practice; Transportation Law
- Kristian Moriarty – Transportation Law
- Bethsaida Obra-White – Construction Law; Insurance Law; Personal Injury Litigation – Defendants
Read the court decisionRead the full story...Reprinted courtesy of
Haight Brown & Bonesteel LLP
Mortgage Bonds Stare Down End of Fed Easing as Gains Persist
October 29, 2014 —
Jody Shenn – BloombergThe end of the Federal Reserve’s third round of bond purchases is proving to be a non-event for mortgage-backed debt.
That’s partly because even though the U.S. central bank won’t be adding more home-loan securities to its balance sheet, policy makers will still be buying enough to prevent its holdings from shrinking. Those purchases are having a greater impact as the pace of net issuance slows to a quarter of the amount last year amid a weaker property market.
The $5.4 trillion market for government-backed mortgage bonds is defying predictions for a slump tied to the wind-down of the Fed stimulus program, whose completion economists predict will be announced today. Yields on benchmark Fannie Mae (FNMA) notes have shrunk 0.14 percentage point this year relative to government debt, narrowing to within 1.09 percentage points of an average of five- and 10-year Treasury rates.
Read the court decisionRead the full story...Reprinted courtesy of
Jody Shenn, BloombergMs. Shenn may be contacted at
jshenn@bloomberg.net
"Damage to Your Product" Exclusion Bars Coverage
February 02, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe Arkansas Court of Appeals affirmed the denial of coverage for the insured based upon the exclusion for "damage to your product." S.E. Arnold & Co. v. Cincinnati Ins. Co., 2016 Ark. App. LEXIS 625 (Ark. Ct. App. Dec. 7, 2016).
The homeowners paid the insured, S.E. Arnold & Company, over $78,000 to supply and install wood flooring in their residence. The homeowners eventually sued Arnold, alleging that the products and services as provided by Arnold had breached its contract, Arnold was negligent, and it violated applicable rules, regulations, and laws. Specifically, the homeowners alleged that the flooring as sold and installed had splinters, cupping occurred across the width of the individual pieces of flooring, and installation was in contradiction to industry standards and applicable building codes.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com