Bar Against Forum Selection Clauses in Construction Contracts Extended to Design Professionals
October 28, 2015 —
Garret Murai – California Construction Law BlogIt’s a tactic as old as war itself.
You can often gain a strategic advantage by selecting the location of battle.
The same is true in litigation.
But as the next case illustrates, when it comes to disputes between contractors (and design professionals), it isn’t always the combatants who dictate where the battle will be fought.
Vita Planning and Landscape Architecture, Inc. v. HKS Architects, Inc.
In Vita Planning and Landscape Architecture, Inc. v. HKS Architects, Inc., Case No. A141010, California Court of Appeals for the First District (September 25, 2015), Texas architecture firm HKS Architects, Inc. (“HKS”) was hired to provide architectural services. HKS’ design service agreement included a Texas forum selection clause which provided:
As a condition precedent to the institution of any action [or] lawsuit all disputes shall be submitted to mediation” and “[a]ll claim , disputes, and other matters in question between the parties arising out of or related to the Agreement . . . be resolved by the . . . courts in . . . Texas.”
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com
Carbon Sequestration Can Combat Global Warming, Sometimes in Unexpected Ways
April 02, 2024 — Michael S. McDonough, Robert A. James & Amanda G. Halter - Gravel2Gavel Construction & Real Estate Law Blog
Whether by land, by sea or through human innovation, carbon sequestration is likely coming to (or already happening in) a destination near you. As our planet, overdosed on greenhouse gases, battles climate disasters, a logical solution is to simply stop pumping carbon dioxide into the air. Legislation worldwide is aimed at that target, but reducing output alone may not be enough. There are still billions of tons of extra CO2 already in the atmosphere—this crossroads is where sequestration comes into play.
Carbon sequestration is exactly what it sounds like—the storage of CO2. Once carbon is sucked out of the air, or in some cases pulled directly from industrial smokestacks, sequestration can be undertaken in a lot of different ways. Carbon storage happens naturally, when forests and oceans absorb and convert CO2 into organic matter, but carbon dioxide can also be artificially injected into deep underground rock formations (or wells), or in some cases technological approaches repurpose carbon into a resource like concrete, or as a catalyst in a closed-loop industrial system. However it’s accomplished, the point of sequestration is to stabilize carbon and ensure it doesn’t creep back into our atmosphere. Researchers, like those at the United Nations’ Intergovernmental Panel on Climate Change, now say that CO2 removal is vital to keeping global warming to 1.5 degrees Celsius (past that threshold, climate change could reach catastrophic levels). A 2023 University of Oxford study estimated that, currently, about two billion metric tons of carbon dioxide are being removed each year, primarily through land management (i.e., planting trees), and suggested that we need to double that amount to avoid dangerous global warming levels.
Reprinted courtesy of Michael S. McDonough, Pillsbury, Robert A. James, Pillsbury and Amanda G. Halter, Pillsbury
Mr. McDonough may be contacted at michael.mcdonough@pillsburylaw.com
Mr. James may be contacted at rob.james@pillsburylaw.com
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A Classic Blunder: Practical Advice for Avoiding Two-Front Wars
August 23, 2021 — William Underwood - ConsensusDocs
“Ha ha! You fool! You fell victim to one of the classic blunders – the most famous of which is ‘never get involved in a land war in Asia’ – but only slightly less well-known is this: ‘Never go in against a Sicilian when death is on the line.’”[1]
Vizzini forgot to include “never fight a two-front war with your owner and a subcontractor” on his list of classic blunders, but it certainly belongs there. This article examines practical tips and tricks for general contractors to avoid the classic blunder of a two-front war, including recommended contract provisions and sound project documentation practices.
Admittedly, general contractors face a wide array of obligations on a project. And perhaps one of the most delicate balancing acts is managing relationships with the owner and your subcontractors. But far too often general contractors find themselves in the difficult position of fighting a two-front war against one (or more) of their subcontractors and the project owner.
But this does not always have to be the case—there are ways for general contractors to reduce the risk of finding themselves in a two-front war. And every project does not have to devolve in a circular firing squad with you in the middle. That said, this article comes with the caveat that a general contractor cannot avoid a two-front war in every instance, nor does this article examine every imaginable way to reduce the risk of a two-front war (see e.g. https://www.consensusdocs.org/pass-through-subcontractor-claims-liquidating-agreements-and-avoiding-a-two-front-war/). But this article will provide an overview of several key tools that can be used to minimize the risk of falling into a classic blunder. Read the court decision
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Reprinted courtesy of William Underwood, Jones Walker LLP
Mr. Underwood may be contacted at wunderwood@joneswalker.com
William Lyon Homes Unites with Polygon Northwest Company
June 26, 2014 — Beverley BevenFlorez-CDJ STAFF
Big Builder’s Les Shaver reported that William Lyon Homes has acquired Polygon Northwest Company, “the largest private home builder in the [Pacific Northwest] region,” for “approximately $520 million.”
"Polygon Northwest Company brings an attractive level consistency to William Lyon Homes with a steady average of 57 homes per month and a portfolio of communities that includes a nice product mix of single family detached [80 percent] and attached product [20 percent]," Catherine LaFemina, director of business development in the Seattle market for Metrostudy, told Big Builder. "Based on the trailing 12 months of home closings, [June 2013 to May 2014], Lyon’s acquisition of Polygon will increase the volume of homes being delivered by 50 percent to an average monthly volume of about 115 homes per month."
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EPA Can't Evade Enviro Firm's $2.7M Cleanup Site Pay Claim, US Court Says
January 25, 2021 — Mary B. Powers - Engineering News-Record
A Richmond, Va., federal appeals court has restored an environmental consultant's legal fight for $2.7 million in federal funds to cover work at a Superfund cleanup site it managed, rejecting a lower court’s dismissal of its claim over a technicality.
Reprinted courtesy of Mary B. Powers, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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Commercial Construction Heating Up
November 20, 2013 — CDJ STAFF
The Motley Fool suggests that commercial construction is the next hot sector. Their analysis is that lag time between a rise in residential construction and commercial construction is just about over. “Industry surveys and construction data are suggestion that commercial construction could be about to turn.”
Among the indicators are increased billing by architects for commercial projects. With the exception of December 2012, with a strong slump in residential work, commercial projects lagged below residential projects from June 2012 until June 2013.
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Subcontractor Strikes Out in its Claims Against Federal Government
July 08, 2024 — David Adelstein - Florida Construction Legal Updates
Is it a good idea for a subcontractor to sue the federal government? A recent case would suggest NO–way too many huge hurdles for the subcontractor to overcome. No matter how creative the arguments may be, it’s a high mountain to climb.
In Fox Logistics & Construction Co. v. U.S., 2024 WL 2807677 (Fed.Cl. 2024), a subcontractor sued the federal government when it was not paid by the prime contractor. The subcontractor claimed it was a third-party beneficiary under the government’s modifications to the prime contractor’s payment procedure, or alternatively it had an implied-in-fact contract with the government. The Court of Federal Claims granted summary judgment in favor of the government. The subcontractor, while creative, struck out in its claims based on the hurdles in a subcontractor suing the federal government.
This case involved upgrading an air force base. The subcontractor performed most of the work. The prime contractor had cash flow problems and did not pay the subcontractor. The government got involved to enforce provisions of its contract to force the prime contractor to pay subcontractors and even modified the payment procedure by having future payments to the prime contractor deposited into a new bank account that government could monitor. This ultimately did not work, and the prime contractor filed for bankruptcy. The subcontractor claimed it was owed millions–apparently, it was not able to recover the money through the prime contractor’s bankruptcy—and pursued claims against the federal government in an effort to recover money it was owed. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com
Digitalizing the Construction Site – Interview with Tenderfield’s Jason Kamha
August 30, 2017 — Aarni Heiskanen - AEC Business
Here’s my interview with Jason Kamha, Director at Tenderfield, an Australian construction software company.
Can you say a few words about yourself and your company?
Tenderfield is based in Sydney, Australia and was established in 2014. We provide a software-as-a-service (SAAS) platform that enables construction firms to collaborate on large construction projects throughout the tendering and project management phases.
A bit about myself, I have been working in the construction management field for over 10 years as an Estimator and a Contracts Administrator. I have always been interested in how technology can improve productivity and collaboration in construction. I worked on large projects and witnessed first-hand what can happen when information and people are disconnected. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at info@aepartners.fi