Cambridge Massachusetts Building Expert Directory

Labor Development Impacting Developers, Contractors, and Landowners

June 25, 2019 — John Bolesta & Keahn Morris - Sheppard Mullin Construction & Infrastructure Law Blog
It is unlawful for unions to secondarily picket construction sites or to coercively enmesh neutral parties in the disputes that a union may have with another employer. This area of the law is governed by the National Labor Relations Act (“NLRA”), the federal law that regulates union-management relations and the National Labor Relations Board (“NLRB”), the federal administrative agency that is tasked with enforcing the NLRA. But NLRB decisions issued during the Obama administration have allowed a union to secondarily demonstrate at job sites and to publicize their beefs over the use of non-union contractors there, provided the union does not actually “picket” the site. In those decisions, the NLRB narrowed its definition of unlawful “picketing,” thereby, limiting the scope of unlawful activity prohibited by law. Included in such permissible nonpicketing secondary activity is the use of stationary banners or signs and the use of inflatable effigies, typically blow-up rats or cats, designed to capture the public’s attention at an offending employer’s job site or facilities. A recently released NLRB advice memo, however, signals the likely reversal of those earlier decisions and that contractors and owners may now be able to stop such harassing union job site tactics simply by filing a secondary boycott unfair labor practice change with the NLRB. The 18 page memo, dated December 20, 2018 (and released to the public on May 14, 2019), directs the NLRB’s Region 13 to issue a complaint against the Electrician’s Union in a dispute coming out of Chicago where the union erected a large, inflatable effigy, a cat clutching a construction worker by the neck, and posted a large stationary banner proclaiming its dispute to be with the job’s general contractor over the use of a non-union electrical sub at the job site’s entrance. Though not an official Board decision, the memo suggests the NLRB General Counsel’s (GC) belief that the earlier Obama era decisions may have been wrongly decided and should be reconsidered by the NLRB on the theories that the Union’s nonpicketing conduct was tantamount to unlawful secondary picketing, that it constituted “signal” picketing that unlawfully induced or encouraged the employees of others to cease working with the subs or that it constituted unlawful coercion. Reprinted courtesy of John Bolesta, Sheppard Mullin and Keahn Morris, Sheppard Mullin Mr. Bolesta may be contacted at jbolesta@sheppardmullin.com Mr. Morris may be contacted at kmorris@sheppardmullin.com Read the court decision
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With Vice President's Tie-Breaker, US Senate Approves Far-Reaching Climate Bill

August 29, 2022 — Pam McFarland & Debra K. Rubin - Engineering News-Record
With Vice President Kamala Harris casting the decisive vote, the U.S. Senate passed 51-50 an economic package on Aug. 7 that authorizes $369 billion to address climate change. The bill now moves to the U.S. House of Representatives, which is expected to pass the bill later this week, and then to the White House for President Joe Biden's signature. Reprinted courtesy of Pam McFarland, Engineering News-Record and Debra K. Rubin, Engineering News-Record Ms. McFarland may be contacted at mcfarlandp@enr.com Ms. Rubin may be contacted at rubind@enr.com Read the full story... Read the court decision
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Sellers' Alleged Misrepresentation Does Not Amount To An Occurrence

November 30, 2020 — Tred R. Eyerly - Insurance Law Hawaii
The insurer successfully established on summary judgment that the insureds' alleged misrepresentation in the sale of a condominium was not an occurrence. Novak v. St. Maxent-Wimberly House Condo., 2020 U.S. Dist. LEXIS 167397 (E.D. La. Sept. 14, 2020). State Farm issued the sellers a condominium unit owner's policy. The buyers sued the sellers, contending the sellers had made misrepresentations in the sale process. The sellers allegedly failed to disclose defects in the condominium before and at the time of the sale. State Farm intervened, seeking a declaration that it was not required to defend or indemnify the sellers because there was no occurrence. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Illinois Court Addresses Coverage Owed For Subcontractor’s Defective Work

May 06, 2019 — Brian Bassett - TLSS Insurance Law Blog
In 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. Read the court decision
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Reprinted courtesy of Brian Bassett, Traub Lieberman
Mr. Bassett may be contacted at bbassett@tlsslaw.com

Labor Under the Miller Act And Estoppel of Statute of Limitations

May 08, 2023 — David Adelstein - Florida Construction Legal Updates
If you want a case that goes into history of the federal Miller Act, check out the Fourth Circuit Court of Appeal’s opinion in U.S. ex rel. Dickson v. Fidelity and Deposit Company of Maryland, 2023 WL 3083440 (4th Cir. 2023). While I am not going to delve into this history, it’s a worthwhile read. It is also a worthwhile read for two other points. First, it discusses what constitutes “labor” under the Miller Act. Second, it discusses doctrine of estoppel to prevent a surety from raising the statute of limitations to bar a Miller Act payment bond claim, which is a doctrine you do NOT want to rely on, as this case reinforces. Both of these points applicable to Miller Act claims are discussed below. This case dealt with a prime contractor renovating staircases that was terminated by the federal government. The prime contractor hired a professional engineer as its subcontractor to serve as its project manager and supervise labor on the project. The engineer/subcontractor also had “logistical and clerical duties, taking various field measurements, cleaning the worksite, moving tools and materials, and sometimes even watering the concrete himself.” Dickson, supra, at *1. 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

Developer Africa Israel Wins a Round in New York Condominium Battle

March 12, 2014 — Beverley BevenFlorez-CDJ STAFF
In Manhattan, New York, a “Supreme Court judge partially granted a temporary restraining order to Africa Israel,” which “means the developer does not at this time have to cede control of the Downtown Condominium board to unit owners, following a February lawsuit against the developers by state Attorney General Eric Schneiderman,” according to The Real Deal. The condominium battle began after Schneiderman filed suit against the developers, claiming that they did not fix construction defects, which in turn caused them to fail to obtain a certificate of occupancy, reported The Real Deal. The attorney general “also alleged that the pair misappropriated more than $9 million placed in an escrow account to finance those repairs.” However, according to The Real Deal, Africa Israel has claimed not to be a sponsor of the building. “Attorney Aaron Abraham, representing both Africa Israel and the sponsor of 15 Broad, claimed …that Africa Israel, an Israeli development firm led by billionaire Lev Leviev, never signed any documents claiming to be a sponsor of the building, noting that the sponsor principals were Boymelgreen and Pinchas Cohen.” Steve Sladkus, attorney for the condominium unit owners, told The Real Deal, “They partnered up with Boymelgreen — they need to deal with the fallout of that.” Read the court decision
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Mediation Clause Can Stay a Miller Act Claim, Just Not Forever

July 11, 2021 — Christopher G. Hill - Construction Law Musings
It seems to be Miller Act time here at Construction Law Musings, not to mention in the Federal District Courts here in Virginia. Last week I discussed what sort of work can form the basis for a Miller Act claim. This week I am discussing the effect of a mandatory mediation contract clause on the same type of claim. I have discussed both the benefits and the possible negative consequences of the inclusion of such a clause in your construction contract. The recent case out of the Norfolk, Virginia Federal District Court recently explored the related question of whether such a clause can be enforced in the context of a Miller Act claim. In United States of America, for the use of Precision Air Conditioning of Brevard Inc. v. Cincinnati Insurance Company, the Court was confronted with a possible conflict between the legal requirement that any waiver of the right to pursue a Miller Act claim must be explicitly waived in writing and the clear contractual language between the general contractor and the plaintiff stating that mediation was a condition precedent to suit. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Court Adopts Magistrate's Recommendation to Deny Insurer's Summary Judgment Motion in Collapse Case

June 06, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The district court accepted the magistrate's recommended ruling denying the insurer's motion for summary judgment on breach of contract and bad faith claims in a case involving collapse. Jang v. Liberty Mut. Fire Ins. Co., 2018 U.S. Dist. LEXIS 51880 (D. Conn. March 27, 2018). After purchase of their home, the insureds' inspector found large cracks in the foundation. Liberty denied coverage, contending that the basement wall was collapsing due to settling earth or movement. The insureds' expert later found the foundation had cracks from the oxidation of iron sulfide minerals in the foundation's concrete. The insureds sued for breach of contract, bad faith, and violations of the Connecticut Unfair Insurance Practice Act and the Unfair Trade Practices Act. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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