Preparing For the Worst with Smart Books & Records
November 07, 2012 —
CDJ STAFFContractors are often too caught up in keeping the wheel of business churning to recognize deficiencies in how their records are managed. Working hard and working often tend to leave little time for consideration of your documents. But all too often I see the unthinkable, a contractor gets into trouble and has to call on its surety for help. At that point, you might finally get your first dose of reality about your records – and it can cost you.
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Douglas Reiser of Reiser Legal LLC.Mr. Reiser can be contacted at
info@reiserlegal.com
Tropical Storms Pile Up Back-to-Back-to-Back Out West
September 17, 2014 —
Brian K. Sullivan – BloombergTropical Storm Polo, the 16th storm of an unusually active eastern Pacific hurricane season, is on a path eerily like that of Odile, which blasted the Baja California peninsula earlier this week.
Odile went ashore late Sept. 14 with top winds of 125 miles (201 kilometers) per hour, the strongest storm to hit the region since 1967. As its winds swept the resort city of Cabo San Lucas, it was a Category 3 storm on the five-step Saffir-Simpson scale and a major hurricane.
At its peak, hours before landfall, Odile’s winds reached 135 mph, Category 4-force. Photos from Mexico’s Baja California Sur show houses destroyed, hotels piled with debris and gaping holes in the local airport. At least 30,000 tourists were stranded.
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Brian K. Sullivan, BloombergMr. Sullivan may be contacted at
bsullivan10@bloomberg.net
Ex-Detroit Demolition Official Sentenced for Taking Bribes
November 24, 2019 —
Jeff Yoders - Engineering News-RecordAradondo Haskins, a former Detroit demolition projects official, has been sentenced to a year in federal prison for accepting $26,500 in bribes from contractors and rigging bids to tear down homes in a federally funded demolition program. U.S. District Judge Victoria Roberts handed down the sentence on Sept. 23 and ordered Haskins to pay a $5,000 fine and forfeit bribes he took while employed by demolition contractor Adamo Group and by the city. The charges against Haskins were unsealed on April 8, shortly before he pled guilty.
Reprinted courtesy of
Jeff Yoders, Engineering News-Record
Mr. Yoders may be contacted at yodersj@enr.com
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California Appeals Court Remands Fine in Late Completion Case
November 18, 2011 —
CDJ STAFFThe California Court of Appeals in Stanislaus County has reversed the decision of the lower court in Greg Opinski Construction Inc. v. City of Oakdale. The earlier court had awarded the city of judgment of $54,000 for late completion, $3,266 for repair of construction defects and interest, and $97,775 in attorneys’ fees. The late completion of the project was due to actions by the City of Oakdale, however, the court rejected Opinski’s argument that the California Supreme Court decision in Kiewit did not allow this, as his contract with the city established a procedure for claiming extensions.
The appeals court noted that the Kiewit decision has been “criticized as an unwarranted interference in the power of contracting parties to shift the risk of delays caused by one party onto the other party by forcing the second party to give the first notice of any intention to claim an extension of time based on delays caused by first.” They cited Sweet, a professor at Boalt Hall, UC Berkeley’s law school, that Kiewit “gutted” the “provision that conditions the contractor’s right to claim an extension of time for delays beyond his control.”
Further changes in California law in response to the Kiewit decision lead to the current situation which the court characterized as “if the contractor wished to claim it needed an extension of time because of delays caused by the city, the contractor was required to obtain a written change order by mutual consent or submit a claim in writing requesting a formal decision by the engineer.”
Opinski also argued that the lower court misinterpreted the contract. The Appeals court replied that “Opinski is mistaken.” He cited parts of the contract regarding the increase of time, but the court rejected these, noting that “an inability to agree is not the same as an express rejection.”
The court also rejects Opinski’s appeal that “the evidence the project was complete earlier than September 30, 2005, is weightier than the evidence to the contrary,” which they describe as “not a winning appellate argument.” The court points out that the role of an appeals court is not to reweigh the evidence, but to determine “whether the record contains substantial evidence in support of the judgment.”
The court did side with Opinski on one question of the escrow account. They rejected most of his arguments, repeating the line “Opinski is mistaken” several times. They decided that he was mistaken on the timing of the setoff decision and on whether the city was the prevailing party. However, the appeals court did find that Opinski was not liable for interest on the judgment.
The appeals court rejected the awarding of prejudgment interest to the city as the funds from which the judgment was drawn was held in an escrow account. The court noted that the city had access to the funds and could “access the funds when it determined that Opinski had breached the contract.” The appeals court noted that the judgment exhausted the escrow balance and remanded the case to the lower court to determine the amount own to Opinski.
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What You Need to Know About the Recently Enacted Infrastructure Bill
December 06, 2021 —
Garret Murai - California Construction Law BlogThis past week, President Biden signed the Infrastructure Investment and Jobs Act. The bill, commonly referred to as the Infrastructure Bill, provides for $1.2 trillion in spending over the next five years on the nation’s infrastructure and is one of two major legislative initiatives of the Biden Administration, the other being Biden’s $1.75 billion Build Back Better Bill focused on “soft” assets such money to fight climate change, for universal free preschool, for paid family and medical leave, etc.
While the Infrastructure Bill contains its fair share of pet projects, economists and historians generally agree that the Infrastructure Bill is the largest investment in the nation’s infrastructure since President Franklin D. Roosevelt’s “New Deal” in 1933.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
History and Gentrification Clash in a Gilded Age Resort
October 05, 2020 —
Alex Ulam - BloombergNewport, Rhode Island, is a small New England beachfront town with a permanent population of 26,000 and an amazing collection of historic homes. Billed as “America’s First Resort,” the 350-year-old city on Aquidneck Island hosts more than 3 million tourists every year. They come for the boating, the famous folk and jazz festivals (both canceled this summer), and the architecture.
The narrow streets of the Point along the waterfront are lined with hundreds of modest homes from the early 1700s, one of the largest ensembles of colonial architecture in the country. On Historic Hill sits an assortment of grander antebellum, classical and Gothic Revival structures from the latter part of the 18th and early to mid-19th century, many built by Southern plantation owners. Newport also boasts what is probably the most opulent thoroughfare in the country, a several-mile stretch of Bellevue Avenue lined with shade trees and palatial limestone mansions built by Gilded Age robber barons and industrialists.
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Alex Ulam, Bloomberg
New York Court Holds Radioactive Materials Exclusion Precludes E&O Coverage for Negligent Phase I Report
October 30, 2018 —
Brian Margolies - TLSS Insurance Law BlogIn its recent decision in Merritt Environmental Consulting Corp. v. Great Divide Ins. Co., 2018 U.S. Dist. LEXIS 175527 (E.D.N.Y. Oct. 10, 2018), the United States District Court for the Eastern District of New York had occasion to consider the application of a radioactive materials exclusion in a professional liability policy.
Great Divide’s insured, Merritt Environmental, was hired as an environmental consultant by a bank in connection with a mortgage refinance of a property located in Westchester County, New York. Merritt’s responsibility was to prepare a Phase I environmental report concerning the property, which the bank ultimately relied on in agreeing to the refinance. It was later claimed, however, that Merritt’s report failed to document the full extent of the property’s radium and uranium contamination resulting from its use in the Manhattan Project. Merritt was named in two separate lawsuits as a result of its allegedly faulty report, including one by the bank alleging that Merritt negligently prepared its report.
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Brian Margolies, Traub Lieberman Straus & Shrewsberry LLPMr. Margolies may be contacted at
bmargolies@tlsslaw.com
Voluntary Payments Affirmative Defense Does Not Apply in Contract Cases
July 16, 2023 —
David Adelstein - Florida Construction Legal UpdatesIn certain matters, there is an affirmative defense referred to as the “voluntary payments” defense. This defense states, “where one makes a payment of any sum under a claim of right with knowledge of the facts such a payment is voluntary and cannot be recovered.” Avatar Properties, Inc. v. Gundel, 48 Fla.L.Weekly D1272c (Fla. 6th DCA 2023) quoting City of Miami v. Keton, 115 So.2d 547, 551 (Fla. 1959). This voluntary payments defense could be construed as a “gotcha” defense, right? Unfair! You voluntarily made the payment with knowledge of the facts; therefore, you are s**t out of luck when it comes to recovering the potentially wrongful payment.
Well, guess what? This voluntary payments affirmative defense does NOT apply in contract disputes. This is codified by Florida Statute s. 725.04 which states: “When a suit is instituted by a party to a contract to recover a payment made pursuant to the contract and by the terms of the contract there was no enforceable obligation to make the payment or the making of the payment was excused, the defense of voluntary payment may not be interposed by the person receiving payment to defeat recovery of the payment.” Fla.Stat. s. 725.04. See also Avatar Properties, supra (explaining voluntary payment defense does not apply in contract cases and even in non-contract cases it doesn’t apply if payment made under coercion or compulsion).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com