Anatomy of a Data Center
October 28, 2024 —
Robert A. James & Matt Olhausen - Gravel2Gavel Construction & Real Estate Law BlogTraditional and social media are thick with reports and predictions of the remarkable increase in size, power consumption and significance of data centers. Not only technology companies but real estate and energy developers, investment funds, lenders, and professionals of all stripes are in or determined to enter this sector. Our inboxes are full—it’s data center this, data center that.
But what exactly is a data center? What infrastructure, technology and human resources come together to create and sustain one of these localized points of computation? By understanding their components, we can glean some understanding of the business, public policy and (our focus) legal issues that arise before and during their operation.
In this article, we cite key characteristics of a reference Blackacre Data Center, with occasional glances at other (real) structures that offer variations on themes. Blackacre is a composite of several centers we have encountered in our law practice. These facilities differ widely in size, location and functions, so your mileage will vary.
Reprinted courtesy of
Robert A. James, Pillsbury and
Matt Olhausen, Pillsbury
Mr. James may be contacted at rob.james@pillsburylaw.com
Mr. Olhausen may be contacted at matt.olhausen@pillsburylaw.com
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Boyfriend Pleads Guilty in Las Vegas Construction Defect Scam Suicide
November 07, 2012 —
CDJ STAFFOne of the odder twists of the Las Vegas construction defect scandal was the charge that Nancy Quon’s boyfriend helped her in an initial suicide attempt. Quon, implicated by not charged in the case of taking control of homeowner boards in order to profit from construction defect settlements. William Webb was alleged to have bought the drug GBH in order to allow Quon, his girlfriend, to commit suicide. Ms. Quon later overdosed on a combination of alcohol and prescription drugs.
In addition to pleading guilty to the drug charges, Webb also made a plea bargain with prosecutors in which he did not admit guilt in an insurance fraud charge, but acknowledged that prosecutors would likely be successful at obtaining a conviction. Webb will be sentenced February 7 and is expected to receive a sentence of six years imprisonment.
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A Bill for an Act Concerning Workers’ Compensation – 2014 Edition
January 13, 2014 —
W. Berkeley Mann, Esq. - Higgins, Hopkins, McLain & Roswell, LLCWorkers’ compensation (“WC”) costs are a significant portion of the labor costs experienced by construction companies. These costs have typically risen over time due to the “experience modification factor.” This term means the amortized cost of past claims recovered through future premiums charged by an insurer to an employer. As a company’s claims go up in both number of claims and total expense of claims over time, the experience modifier increases as a multiplier of the base WC premium. As with other general medical costs, the question is not whether the cost of claims with a medical component will go up, but rather the rate at which they will increase from year to year.
It is with these facts of life in mind that it is reported that the Colorado legislature will take up a bill concerning WC benefits in the 2014 session. This bill, if passed, will have the likely effect of dramatically increasing the cost of WC claims to the construction industry - along with all other Colorado employers.
The draft bill has three distinct changes for the current law, each of which serves to change the delicate balance of rights and obligations of employers and employees under existing law.
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W. Berkeley Mann, Esq.W. Berkeley Mann, Esq. can be contacted at
mann@hhmrlaw.com
Breach of a Construction Contract & An Equitable Remedy?
September 22, 2016 —
David Adelstein – Florida Construction Legal UpdatesIn payment or collection-type lawsuits, the party suing for money sometimes asserts a claim for unjust enrichment or quantum meruit as an alternative equitable remedy to a breach of contract claim. Frankly, sometimes a party will do this as a means to throw everything against the wall hoping something, just something, sticks. However, if there is a contract by and between the parties, equitable claims such as unjust enrichment or quantum meruit will invariably fail. They will fail because a party cannot circumvent a contract simply because their recourse may prove better under an equitable theory. It doesn’t work like that! And, it should not!
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David M. Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Illinois Court Addresses Coverage Owed For Subcontractor’s Defective Work
May 06, 2019 —
Brian Bassett - TLSS Insurance Law BlogIn Acuity Ins. Co. v. 950 W. Huron Condo. Assoc’n, 2019 IL App (1st) 180743, the Illinois Court of Appeals held that a claim against a subcontractor for damage caused to property outside the scope of its work satisfied the insuring agreement of a CGL policy.
The condominium association for the building located at 950 West Huron Street in Chicago, Illinois (“the Association”), sued its general contractor and construction manager Belgravia Group, Ltd., and Belgravia Construction Corporation (collectively “Belgravia”). The Association sought to recover for alleged defects from Belgravia’s unworkmanlike construction of the building that permitted water to permeate and cause damage.
In the Association’s complaint, it alleged that in June 2002, after the Association took possession of the building but prior to the completion of construction, Belgravia became aware of numerous conditions and defects, including extensive water infiltration of the building. After discussing the issues with Belgravia, the Association claimed that Belgravia retained contractors to provide cosmetic fixes. However, this did not address the problems and defects. The Association alleged that it spent a substantial amount of money to identify and correct the damage and that it would incur additional costs for future repairs.
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Brian Bassett, Traub LiebermanMr. Bassett may be contacted at
bbassett@tlsslaw.com
Nevada Supreme Court Rejects Class Action Status, Reducing Homes from 1000 to 71
July 02, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Las Vegas Review-Journal reported that the “Nevada Supreme Court has rejected a request for class action status for claims of damaged stucco from faulty construction by Del Webb Communities involving nearly 1,000 Sun City Summerlin residents,” however, “the court upheld the award of damages to 71 homeowners following a jury trial in Clark County District Court in 2008.”
The case began in 2003, and the Las Vegas Review-Journal referred to it as “one of the largest construction-defect cases in Nevada history.” But District Judge Allan Earl denied class action lawsuit in 2006. “Attorneys were seeking $70 million for the homeowners.” In 2008, another court “determined that only 71 homeowners merited compensation totaling $4 million for the stucco issues.”
According to the Las Vegas Review-Journal, “[h]omeowners alleged that Del Webb failed to install metal screeds that would protect homes from water damage, and as a result, the homes suffered from cracked stucco, mold and weakened walls.”
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Five New Laws to Know Before They Take Effect On Jan. 1, 2022
December 27, 2021 —
Amy R. Patton & Blake A. Dillion - Payne & FearsGov. Gavin Newsom closed California’s 2020-2021 Legislative Session with a flurry of bill signings, many of which created and/or updated employment-related laws. A few of these bills were “emergency bills” which became effective immediately (such as the COVID-related right to rehire and sick pay laws), while others do not become effective until Jan. 1, 2022. Employers should ensure that their policies, procedures, and systems comply with these new and updated laws.
California’s Regulation of Quotas in Warehouse Distribution Centers
On Sept. 22, 2021, Governor Newsom signed AB 701, aimed at regulating quotas in warehouse distribution centers, into law. Effective Jan. 1, 2022, employers with 100 or more employees at a single warehouse distribution center or 1,000 or more employees at one or more warehouse distribution centers in the state must provide to each nonexempt employee, upon hire, or by Jan. 31, 2022, a written description of each quota to which the employee is subject. This bill also sets certain standards for what constitutes an enforceable quota and for the employer’s obligation to respond to information requests.
Employers should carefully review their quota systems to first determine if the quotas are necessary, and if so, ensure compliance with this new law by preparing clear written descriptions for each and every quota. A more in-depth discussion of the provisions of the AB 701 can be found
here.
Reprinted courtesy of
Amy R. Patton, Payne & Fears and
Blake A. Dillion, Payne & Fears
Ms. Patton may be contacted at arp@paynefears.com
Mr. Dillion may be contacted at bad@paynefears.com
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Ensuing Loss Provision Found Ambiguous
April 25, 2012 —
Tred R. Eyerly - Insurance Law HawaiiAfter the insurer denied coverage in a homeowner’s policy for construction defects under various exclusions, the court found the ensuing loss provision was ambiguous.Kesling v. Am. Family Mut. Ins. Co., 2012 U.S. Dist. LEXIS 38857 (D. Colo. March 22, 2012).
After purchasing a home from the sellers, the insureds noticed problems with the deck of the home. Massive cracking appeared, causing lifting and leaking on the deck and water running through the exterior foundation wall into the home. There was also damage to the roof and crawlspace.
The insureds had a homeowner’s policy with American Family, which covered accidental direct physical loss to property described in the policy unless the loss was excluded. They requested coverage for "conditions, defects and damages." American Family denied coverage because wear and tear, as well as damage to foundations, floors and roofs were excluded. The policy did provide coverage, however, for "any resulting loss to property described . . . above, not excluded or excepted in this policy.
When coverage was denied, the insureds sued American Family.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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