Courthouse Reporter Series: Nebraska Court of Appeals Vacates Arbitration Award for Misconduct
November 18, 2024 —
Brendan J. Witry - The Dispute ResolverVacating an arbitration award is often seen as an uphill battle. Indeed, the U.S. Supreme Court has stated that “courts may only vacate an arbitrator’s decision ‘only in very unusual circumstances.’” Oxford Health Plans, LLC v. Sutter, 569 U.S. 564, 568 (2013). The Federal Arbitration Act provides limited grounds to seek the vacatur of an arbitration award. In Lund-Ross Constructors v. Duke of Omaga, LLC, ___ N.W.3d ___, 33 Neb.App.73, the Nebraska Court of Appeals found that an arbitrator’s conduct warranted the partial vacatur of the award, which granted relief to a subcontractor who filed a counterclaim after the arbitration hearing had closed.
Lund-Ross contracted with Duke of Omaha to build an apartment complex in Omaha. Lund-Ross, in turn, sub-contracted with A Raymond Plumbing. Following completion of the building, Owner withheld payment from Lund-Ross, who in turn, withheld payment from Raymond. Both Lund-Ross and Raymond filed mechanics liens and initiated suits; Raymond’s suit ultimately was dismissed for want of prosecution. Lund-Ross proceeded to arbitration with Owner, naming Raymond as a respondent. Raymond did not participate in the arbitration as a claimant at the time of the hearing.
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Brendan J. Witry, Laurie & Brennan LLPMr. Witry may be contacted at
bwitry@lauriebrennan.com
NYC-N.J. Gateway Rail-Tunnel Work May Start in 2023
March 28, 2022 —
Elise Young - BloombergThe $12.3 billion Gateway rail tunnel linking New York City and New Jersey has reached a major preconstruction milestone with the completion of geotechnical studies necessary for the engineering phase.
The analysis of rock and silt from 75 earth samples on both sides of the Hudson River marks the latest in a series of swift leaps toward a potential 2023 start date. The project had been delayed years by former President Donald Trump, who had argued that costs should be covered solely by the states, not U.S. taxpayers.
The samples, from depths of 48 feet to 505 feet (14.6 meters to 154 meters), will guide design, according to the Gateway Development Commission, the project’s overseer. Some areas of particular interest to the researchers were on Manhattan’s West Side, parts of which were underwater before landfill was added many years ago.
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Elise Young, Bloomberg
Pennsylvania Supreme Court’s Ruling On Certificates Of Merit And “Gist Of Action” May Make It More Difficult For An Architect Or Engineer To Seek An Early Dismissal
January 07, 2015 —
Jerrold P. Anders and Michael W. Jervis - White and Williams LLPIn Bruno v. Erie Ins. Co., the Pennsylvania Supreme Court clarified the gist of the action doctrine that distinguishes between tort and contract claims. In doing this, the Court also ruled that a Certificate of Merit in a professional liability claim is necessary only if the plaintiff is in a direct client relationship with the licensed professional. This clarification of the Certificate of Merit requirement may limit the ability of architects and engineers to obtain an early dismissal in lawsuits.
Bruno v. Erie Ins. Co. involves a common scenario. The Brunos filed a claim with their homeowners’ insurer after discovering mold in their home during remodeling. The policy included an endorsement providing coverage for mold. As part of the claim adjustment, Erie hired an engineer to inspect the mold and to provide an opinion on its severity to determine the extent of remediation required. The engineer hired by Erie reported to Mr. Bruno that the mold was harmless, that concern over health problems due to mold was merely a “media frenzy,” and that the Brunos should continue with their renovations.
Reprinted courtesy of
Jerrold P. Anders, White and Williams LLP and
Michael W. Jervis, White and Williams LLP
Mr. Anders may be contacted at andersj@whiteandwilliams.com
Mr. Jervis may be contacted at jervism@whiteandwilliams.com
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Judge Halts Sale of Brazilian Plywood
June 06, 2022 —
Beverley BevenFlorez – CDJ StaffA permanent injunction was issued by Judge Roy Altman in a Ft. Lauderdale federal court on May 24th that requires the revocation of all PS 1 certificates that were issued by PFS-TECO to more than a dozen Brazilian mills that produced structural plywood for the U.S. market,
reported Business Wire.
“This case highlights how a few bad actors profited by essentially looking the other way while substandard, and potentially dangerous plywood was imported into the U.S. and used to build homes and businesses,”
Michael Haglund, counsel representing the U.S. Structural Plywood Integrity Coalition, of Haglund Kelley, LLP, told Business Wire.
Building codes throughout the U.S. require the use of PS 1 structural plywood in construction. "If product standards are not being met, there can be serious implications for all homes constructed using those substandard wood panel products," Tyler Freres, VP of Sales for
Freres Engineered Wood, told CDJ. "Contractors and homeowners should be able to trust that U.S. certification agencies are doing their due diligence to accurately inspect panels, ensuring consumers' health and safety."
The U.S. Structural Plywood Integrity Coalition, including nine family-owned U.S. plywood manufacturers, alleged that PFS-TECO falsely certified that plywood from Brazil met U.S. structural integrity requirements. This substandard plywood has been used throughout the U.S. In particular, it was used during the hurricane reconstruction efforts in Florida and Puerto Rico due to its cheaper price. In 2021, Brazilian plywood made up 11% of the U.S. supply with
nearly 1.2 billion square feet sold.
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Blurred Lines: New York Supreme Court Clarifies Scope of Privileged Documents in Connection with Pre-Denial Communications Prepared by Insurer's Coverage Counsel
September 17, 2015 —
Greg Steinberg – White and Williams LLPIn a recent decision, the New York Supreme Court clarified the scope of privileged documents with respect to communications prepared by an insurer’s counsel prior to issuing a denial of coverage letter. The coverage litigation at issue arose out of MF Global Inc.’s claims under fidelity bonds for losses incurred as a result of large trades made by former MF Global employee, Evan Dooley. The trades cost MF Global, Dooley’s former clearing firm, $141 million after it had to reimburse the CME Group, Inc. futures clearinghouse that handled the trade. The insurers that issued the fidelity bonds contested coverage and sued MF Global in 2009.
The opinion underscores the fact that there is no “bright line” rule in New York with respect to disclosure of communications in the insurance context prior to the issuance of a coverage determination – the disclosure requirement will instead turn on what’s actually privileged. In addition, while retention of counsel may not serve as an automatic shield for all documents prepared prior to the coverage decision, insurers will not be required to disclose, among other things, communications which include an “indicia of the provision of legal services.”
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Greg Steinberg, White and Williams LLPMr. Steinberg may be contacted at
steinbergg@whiteandwilliams.com
Recycled Water and New Construction. New Standards Being Considered
September 15, 2016 —
Garret Murai – California Construction Law BlogThe second a series of stockholder meetings will be held on August 30, 2016 in Sacramento, California to consider proposed amendments to the state building code for the installation of recycled water systems for newly constructed single-family, multifamily, commercial and public buildings.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Insurer's Quote on Coverage for Theft by Hacker Creates Issue of Fact
December 16, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe appellate court found that the insurer's quote created an issue of fact on whether loss caused by a computer hacker would be covered. Metal Pro Roofing, LLC v. Cincinnati Ins. Co., 2019 Ind. App. LEXIS 355 (Ind. Ct. App. Aug. 9, 2019).
The insureds, Metal Pro Roofing, LLC and Cornett Restoration, LLC ("LLC's") discovered that their bank accounts had been hacked and over $78,000 stolen. They submitted claims to their insurer, Cincinnati. Coverage was denied, and the LLCs filed suit. Cross-motions for summary judgment were filed, and the court granted summary judgment to Cincinnati.
The "Forgery or Alternation" coverage applied to losses resulting directly from the "'forgery' or alteration of checks, drafts, promissory notes, or similar written promises, order or directions to pay a sum of money." "Forgery" was defined as "the signing of the name of another person or organization with the intent to deceive." The LLCs did not cite any evidence that the hacker "signed" anything, let alone that they signed "the name of another person or organization."
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Brazil Builder Bondholders Burned by Bribery Allegations
October 22, 2014 —
Paula Sambo and Sabrina Valle – BloombergBrazil’s biggest construction companies are leaving bondholders with losses in the wake of allegations they bribed Petroleo Brasileiro SA to win contracts.
Queiroz Galvao SA’s $700 million of notes due 2019 have dropped 2.5 percent since Oct. 9, when the Department of Justice made available video in which former Petrobras head of refining Paulo Roberto Costa alleged that builders formed a cartel to overcharge for projects and divert money to politicians. OAS SA’s $875 million of 2019 notes have slumped 1.9 percent in that span, versus a 0.1 percent loss for emerging markets.
Ms. Sambo may be contacted at psambo@bloomberg.net; Ms. Valle may be contacted at svalle@bloomberg.net
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Paula Sambo and Sabrina Valle, Bloomberg