Nationwide Immigrant Strike May Trigger Excusable Delay and Other Contract Provisions
February 23, 2017 —
Adam P. Handfinger & Meredith N. Reynolds – Peckar & Abramson, P.C.Yesterday, February 16, 2017, media outlets reported a nationwide strike by immigrants and
businesses referred to as “A Day Without Immigrants”. The protest, organized largely through
social media, was a response by some to the Trump Administration’s immigration and foreign
trade policies. Participating businesses shut down and immigrants refused to work or spend
money in an eff ort to demonstrate the role of foreign-born workers in the U.S. economy.
While the number of businesses and individuals that participated is not yet known, several
contractors reported labor shortages and construction project delays or temporary shut
downs as a result of the protest.
Reprinted courtesy of
Adam P. Handfinger, Peckar & Abramson, P.C. and
Meredith N. Reynolds, Peckar & Abramson, P.C.
Mr. Handfinger may be contacted at ahandfinger@pecklaw.com
Ms. Reynolds may be contacted at mreynolds@pecklaw.com
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When Do Hard-Nosed Negotiations Become Coercion? Or, When Should You Feel Unlucky?
October 21, 2019 —
Stan Millan, Jones Walker, LLP - ConsensusDocsConflict in a negotiation is to be expected and is arguably healthy for the process. Owners and contractors are constantly engaged in negotiations; whether it be negotiating changes to the work, changes to the schedule, or changes to the contractual terms. But at what point does taking a strong position in a negotiation cross the line and become coercion or bad faith?
A recent decision from the Armed Services Board of Contract Appeals touched on this very issue. While this is a government contract case, the issues discussed in this case (namely negotiating a change) are routinely encountered in just about every construction project. This decision is instructive because it adds to a trending line of cases that limit an owner’s and contractor’s negotiation tactics.
On August 5, 2019, the board issued an opinion in the appeal of Sand Point Services, LLC vs. NASA, ASBCA Nos. 6189. In Sand Point Services, the contractor was hired by the owner to repair the Wallops Flight Facility’s aircraft parking apron. During its work, the contractor hit a differing site condition, namely unsuitable soils. The contractor sought additional time and money for this differing site condition. The owner ultimately responded with a show cause letter to the contractor claiming, among other breaches, that the contractor was significantly behind schedule. This was generally viewed by all parties as the start of default proceedings against the contractor.
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Stan Millan, Jones Walker, LLPMr. Millan may be contacted at
smillan@joneswalker.com
Building 47 Bridges in Two Years
December 23, 2023 —
Dan Sopczak - Construction ExecutiveEvery construction project has its challenges, but some truly push the boundaries of what is achievable in the heavy civil industry. When the Indiana Department of Transportation sought to modernize its I-65/I-70 North Split Interchange in Indianapolis, Indiana, its request for proposals included building 47 new bridges and rehabilitating six additional bridges on an ambitious two-year timeline—905 days to substantial completion.
“Three design-build teams responded to the RFQ, and the same three teams responded to the RFP,” according to INDOT Strategic Communications Director Natalie Garrett. “Proposals were scored and evaluated using the best-value evaluation process defined by INDOT. The score was a combination of a technical proposal score and a price score.”
Reprinted courtesy of
Dan Sopczak, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Real Estate & Construction News Roundup (06/28/23) – Combating Homelessness, U.S. Public Transportation Costs and the Future of Commercial Real Estate
August 07, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, we examine the Supreme Court’s ruling regarding water supply responsibilities, the federal reserve chair’s reaction to possible banking losses, several analyses of the future of commercial real estate, and more!
- California Representative Maxine Waters has introduced several pieces of legislation aimed at combating homelessness and fixing the increasingly tumultuous affordable housing situation. (Eliza Relman, Business Insider)
- The Supreme Court ruled in favor of the federal government in a case that decided responsibility over water supply as well as the overall dissemination of water usage for the Navajo Nation. (Ariane de Vogue, CNN)
- Unlike other nations with similar construction, the United States’ public transportation has extremely high costs. (Darian Woods, Corey Bridges, Viet Le, NPR)
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Pillsbury's Construction & Real Estate Law Team
Underpowered AC Not a Construction Defect
November 07, 2012 —
CDJ STAFFAfter buying a home in Louisiana, Mike Gines determined that the home’s air conditioning unit was insufficient to maintain an appropriate temperature. He contacted the home builder, D.R. Horton, Inc., which worked with the air conditioning installer, Reliant Heating & Air Conditioning, in order to repair the system. When the problems persisted, Gines filed a class action petition against Horton and Reliant in state court. Horton and Reliant moved the case to the federal courts, whereupon Gines asserted the defendants were in violation of the Louisiana New Home Warranty Act (NHWA). Horton stated that the claim under the NHWA was invalid, because Gines had not alleged actual physical damage to his home.
The district court granted Horton’s motion to dismiss. Gines sought a reversal from the Fifth Circuit Court of Appeals and sought to have two questions of state law addressed by the Louisiana Supreme Court.
The district court ruled that the NHWA was the “sole remedy under Louisiana law for a purchaser of a new home with construction defects. Gines argued that court erred in this, but also conceded that this was the conclusion of the Louisiana Supreme Court.
Further, Gines argued that a provision in the NHWA that allows the inclusion of construction defects that do not cause damage was satisfied by paragraph 6 of the contract. The court noted that Gines did not attach a copy of the contract to either the original or amended complaint, and so the court does not need to address these claims. However, the court cautioned that if a copy had been included, they still would have rejected the claim, as “the cited language does not indicate a waiver of the physical damage requirement.” They also note that “paragraph 13 of the contract shows that Gines was aware to the absence of any such waiver in the contract.”
The court concludes that “the moral of this story is that in order to avoid the harsh result that has obtained here, the buyer of a newly constructed home in Louisiana should seek to obtain in the contract of sale an express waiver of the actual damage requirement of the NHWA.” The appeals court affirmed the decision of the circuit court and denied the application to certify questions to the Louisiana Supreme Court.
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Business Interruption Claim Upheld
April 01, 2015 —
Tred R. Eyerly – Insurance Law HawaiiA business interruption claim survived an appeal after it was determined the claim was satisfactorily presented to the trial court. Citadel Broadcasting Corp. v. Axis U.S. Ins. Co., 2015 La. App. LEXIS 274 (La. Ct. App. Feb. 11, 2015).
When Hurricane Katrina hit on August 29, 2005, the insured owned three radio stations that broadcast in and around New Orleans. All three stations suffered property damage and were off the air for varying periods of time.
The insured's policy with Axis covered both physical damage and business interruption (BI) losses. The policy also insured contingent business interruption income (CBI). Both ordinary BI and CBI losses were covered under a 365 day extended period of indemnity (EPI).
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Certificates Of Merit For NC Lawsuits Against Engineers And Architects? (Still No)(Law Note)
April 22, 2019 —
Melissa Dewey Brumback - Construction Law in North CarolinaCertificates of Merit are documents intended to show that a true issue exists with a professional’s work, prior to that person being sued. While North Carolina does require that a person suing a medical provider first have the matter reviewed by a professional (and attest to that in the Complaint), there is no requirement for any review prior to a lawsuit against an architect, engineer, or surveyor. Thus, anyone can file a lawsuit against an engineer/architect/surveyor without first having their case eyeballed reviewed by another professional.
Over the years, there have been attempts at adding a Certificate of Merit requirement to design professional lawsuits. See, for example, examples here: from
2005; from
2007; from
2011; and from
2013.
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
General Liability Alert: ADA Requirements Pertaining to Wall Space Adjacent to Interior Doors Clarified
February 26, 2015 —
Lawrence S. Zucker II and Kristian B. Moriarty – Haight Brown & Bonesteel LLPIn Kohler v. Bed Bath & Beyond (No. 12-56727, filed February 19, 2015) the United States Court of Appeals for the Ninth Circuit affirmed a grant of summary judgment in favor of a department store related to the necessary moving clearance for an interior restroom door pursuant to the Americans With Disabilities Act ("ADA").
Plaintiff, Chris Kohler, is paraplegic and requires the use of a wheelchair to move in public. On two separate days in May 2011, Kohler used the restroom inside the Bed Bath & Beyond store in Riverside, California. Of relevance to the appeal, Kohler contends there was less than ten inches of strike-side wall space on the pull side of Bed Bath & Beyond’s restroom door which allegedly made it difficult for Mr. Kohler to pull open the restroom door by pushing off the strike-side wall with one hand while pulling the door handle with the other. He also contends there was less than three inches of strike-side wall or floor space on the push side of the door, making it difficult for Kohler to open the door from the push side. The door at issue did not have a latch which would stop the door from freely swinging on a hinge.
Reprinted courtesy of
Lawrence S. Zucker II, Haight Brown & Bonesteel LLP and
Kristian B. Moriarty, Haight Brown & Bonesteel LLP
Mr. Zucker may be contacted at lzucker@hbblaw.com
Mr. Moriarty may be contacted at kmoriarty@hbblaw.com
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