Think Before you Execute that Release – the Language in the Release Matters!
June 17, 2024 —
David Adelstein - Florida Construction Legal UpdatesIf you execute a release in exchange for payment or other consideration, remember the language in the release means something. THE RELEASE LANGUAGE MATTERS! And the meaning in the release may be way more than you intended so please make sure you truly digest and consider release language before executing.
This sentiment could not be truer than in the 2009 decision Bell BCI Company v. United States, 570 F.3d 1337 (Fed. Cir. 2009). In this case, a contractor entered into a modification (change order) with the government. The modification included the following language:
increase the contract amount by $2,296,963 … as full and equitable adjustment for the remaining direct and indirect costs of the Floor 4 Fit-out (EWO 240–R1) and full and equitable adjustment for all delays resulting from any and all Government changes transmitted to the Contractor on or before August 31, 2000.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Framework, Tallest Mass Timber Project in the U.S., Is On Hold
August 07, 2018 —
Nadine M. Post - Engineering News-RecordThe tallest mass-timber building development in the U.S. is "on hold for the foreseeable future," according to the developer, named project^. The 12-story mixed-use building, known as Framework, has been under development in Portland, Ore., since 2014. Construction was first delayed a year ago and currently is postponed because of changing market conditions, which have had a negative impact on the development's bottom line. These include inflation, escalating construction costs and fluctuations in the tax credit market, says the developer.
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Nadine M. Post, ENRMs. Post may be contacted at
postn@enr.com
Texas Shortens Its Statute of Repose To 6 Years, With Limitations
October 02, 2023 —
Jason Daniel Feld & Roni Most - Kahana FeldEffective June 9, 2023, Texas has shortened its statute of repose from the existing 10-year statute for builders of new homes to 6-years under specific conditions. The significantly shorter statute of repose bars suits against construction contractors of detached one-and two-family homes and townhomes, filed six years after the substantial completion of such homes, where the contractor also furnished a written warranty in compliance with the statute. Notably, projects including apartments, mixed-use, and hotels are not covered by the new law. It is also noted that a grey area in the law exists as to whether condominiums will be covered by the statute. The statute of repose strictly bars the filing of any action, claim or arbitration demand regardless of when the injury was actually discovered (latent defects) and is separate and distinct from any applicable statute of limitations.
The New Texas Statute of Repose Law
Under the
Texas Civil Practice & Remedies Code § 16.009, persons who construct or repair improvements to real property cannot be sued for defective or unsafe conditions of the property or deficiencies in the construction or repair of the improvement later than 10 years after substantial completion of the improvement, except in certain narrow circumstances. This statute is known as the “statute of repose.” The statute applies not only to suits for construction defects, but also personal injury, wrongful death, contribution, and indemnity.
Reprinted courtesy of
Jason Daniel Feld, Kahana Feld and
Roni Most, Kahana Feld
Mr. Feld may be contacted at jfeld@kahanafeld.com
Mr. Most may be contacted at rmost@kahanafeld.com
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BHA Attending the Construction Law Conference in San Antonio, Texas
February 24, 2016 —
CDJ STAFFBert L. Howe & Associates, Inc. (BHA), will once again be joining with the State Bar of Texas, Construction Law Section as a sponsor and exhibit at the event on March 3 & 4, 2016, and is excited to announce that they will be sponsoring a raffle for a $100 Outdoor World gift card to be given away at the conference. Just stop by the BHA booth, and drop your card in the bowl for a chance to win.
With offices in San Antonio and Houston, BHA offers the experience of over 20 years of service to carriers, defense counsel, and insurance professionals as designated experts in over 5,500 cases. BHA’s staff encompasses a broad range of licensed and credentialed experts in the areas of general contracting and specialty trades, as well as architects, civil and structural engineers, and has provided services on behalf of developers, general contractors and subcontractors across the state of Texas.
BHA’s experience covers the full range of construction defect litigation, including single and multi-family residential properties (including high-rise), institutional buildings (schools, hospitals and government), commercial, and industrial claims. BHA also specializes in coverage, exposure, and delay claim analysis.
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Court Narrowly Interprets “Faulty Workmanship” Provision
March 28, 2018 —
Jeffrey J. Vita and Thersa A. Guertin – SDV BlogIn a recent victory in their home state of Connecticut, Saxe Doernberger & Vita partners,
Jeffrey Vita and
Theresa Guertin, representing owner-developer 777 Main Street, LLC, overcame a summary judgment motion filed by Liberty Mutual Fire Insurance Company. The Connecticut Superior court refused to adopt the insurer’s broad interpretation of the “faulty workmanship” exclusion in an all-risk builders’ risk insurance policy.
In 2014, 777 Main Street, LLC began renovations on the 27-story former Hartford National Bank building in downtown Hartford, converting the property from an office building to a mixed residential and commercial space. During the renovation, a subcontractor hired to perform the cleaning the concrete façade of the building accidentally over-sprayed the cleaning material onto the property’s windows. The subcontractor’s attempts to clean the overspray further damaged the structural integrity and cosmetic look of the windows. As a result, the owner was forced to replace over 1,800 windows, costing millions.
Mr. Vita may be contacted at jjv@sdvlaw.com
Ms. Guertin may be contacted at tag@sdvlaw.com
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Toolbox Talk Series Recap – Considerations for Optimizing Dispute Resolution Clauses
June 05, 2023 —
Michael Filbin - The Dispute ResolverIn the April 27, 2023 edition of Division 1's Toolbox Talk Series moderated by Manuel del Valle, Sergio Andre Laclau (Partner at Mello Torres) and Liza Akins (Senior Assistant GC and Division Counsel at ARCO Design/Build) offered the following strategies for drafting effective ADR clauses in construction contracts:
- Define the ADR process for various types of disputes.
Not all disputes on a construction project are the same, and the parties can tailor the ADR process to different situations. For example, the parties could choose to arbitrate complex disputes and resolve minor claims through mediation. Differentiating the ADR process between complex and minor disputes can save parties time and money.
While Liza prefers arbitration for complex claims because you can get a quick and final decision from an arbitrator experienced with construction disputes, she noted that arbitration costs can add up quickly. Therefore, if the dollar amount in dispute is relatively small, arbitration may not make sense financially. Mediation tends to be a comparatively cheaper and faster option.
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Michael Filbin, Cozen O'ConnorMr. Filbin may be contacted at
mfilbin@cozen.com
Stuck in Seattle: The Aggravating Adventures of a Gigantic Tunnel Drill
April 01, 2015 —
Karen Weise – BloombergAbout 20 workers wearing hard hats and reflective vests clump together on the edge of a chasm near Seattle’s waterfront, peering down a hole 120 feet deep and 83 feet wide. The last men have been craned out of the pit in a yellow metal cage. Gulls squawk. A TV news helicopter hovers overhead.
A dozen journalists stand nearby on the bed of a truck. We’re here to see Bertha, one of the world’s biggest tunneling machines. Or at least a piece of her. A 240-foot crane is about to haul a 540,000-pound steel shield out of the ground, 20 months after Bertha started digging a highway. Almost imperceptibly, the crane starts rising.
The event, on a Thursday in mid-March, is part of a massive rescue mission to fix the $80 million machine. She broke abruptly in December 2013 after boring through just 1,000 feet, one-ninth of her job. Her seals busted, and her teeth clogged with grit and pieces of an 8-inch steel pipe left over from old groundwater tests. She stopped entirely.
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Karen Weise, BloombergMs. Weise may be contacted at
kweise@bloomberg.net
DC Circuit Upholds EPA’s Latest RCRA Recycling Rule
September 23, 2019 —
Anthony B. Cavender - Gravel2GavelOn July 2, 2019, the U.S. Court of Appeals for the District of Columbia Circuit decided the case of California Communities Against Toxics, et al. v. EPA. In this decision, the court rejected the latest petition to strike or vacate EPA’s 2018 revisions to the Resource Conservation and Recovery Act (RCRA) hazardous waste recycling rules. In 1985, EPA promulgated a new regulatory definition of “solid waste,” which is the linchpin of the agency’s very stringent hazardous waste management rules. (See the rules located at 40 CFR Sections 260-268.) Unless a material is a “solid waste” as defined by the rules, it cannot also be a hazardous waste.
The 1985 rules grappled with the challenges posed by recycling practices, and attempted to distinguish between legitimate recycling which is not subject to hazardous waste regulation, and other more suspect forms of recycling. The rules are complex and replete with nuance. In doing so, EPA was adhering to RCRA’s statutory mandate that it develop appropriate rules to govern the treatment, storage and disposal of hazardous waste, while also promoting “properly conducted recycling and reuse.” The DC Circuit reviewed the 1985 rules in the seminal case of American Mining Congress v EPA, 824 F.2d 1177 (1987), (AMC) and stressed that only those materials that were truly discarded could be regulated as solid waste; for instance, those materials that were destined for immediate recycling or recovery in an ongoing production process were not discarded and hence were not solid waste. Over the years, the court has struggled to clarify the basic holding of AMC in numerous cases while EPA has frequently revised and amended the RCRA rules, and in particular the definition of solid waste, in an attempt to balance the policies mandated by the statute.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com