Clearly Determining in Contract Who Determines Arbitrability of Dispute
April 26, 2021 —
David Adelstein - Florida Construction Legal UpdatesAs you know from prior postings: “Arbitration provisions are creatures of contract and must be construed ‘as a matter of contract interpretation.’ ” Fallang Family Limited Partnership v. Privcap Companies, LLC, 46 Fla.L.Weekly D639e (Fla. 4th DCA 2021) (citation omitted). Thus, if you prefer to arbitrate potential disputes, instead of litigating potential disputes, you want to include an arbitration provision in your contract. While there are positives and negatives to arbitration, no different than litigation, these positives and negatives should be considered during the contract negotiation process when dealing with the dispute resolution process in the contract.
Generally, under the law, the arbitrability of a dispute is determined by the court. However, this can be deferred to the arbitrator with clear and unmistakable language in the contract.
By way of example, the American Arbitration Association includes a rule that allows an arbitrator to rule on the arbitrability of the dispute, i.e., the claims asserted are subject to the governing arbitration provision in the contract. Recent law has suggested that if the objective is to authorize an American Arbitration Association arbitrator to make this determination, the contract clearly and unmistakably needs to state this intent and generally referring to the American Arbitration Association rules is not good enough. For this reason, I have included in arbitration provisions language that specifically states, “In the event of any dispute as to the arbitrability of any claim or dispute, the parties agree that an appointed arbitrator within the American Arbitration Association shall make this determination.” I have also included in arbitration provisions the converse so that if there is a dispute as to the arbitrability of a claim or dispute, the court, and not the arbitrator, will make this determination.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
A Word to the Wise about Construction Defects
October 10, 2013 —
CDJ STAFFA post on The Buckner Blog suggests that “construction defects” are the scariest words for architects, engineers, and contractors. With the possible outcomes of a damaged reputation and astronomical costs, it’s not a surprise. Further, builders are using techniques that “have yet to be tested in real application over time.” As a result, “whoever has the deepest pockets or the most to lose becomes the primary target.”
While a commercial general liability policy might pay for damage caused by a construction defect, the post notes that “it does not, however, cover the costs to remedy your work.” That cost could be “greater than the actual property damages incurred.”
The post recommends a combination of transferring risk and risk control In transferring risk, the builder uses “indemnification and hold harmless agreements as well as inditional insured requirements in their construction contracts.” They advise to “request coverage as an additional insured on a primary basis.”
And then there’s risk control. “Work only with architects, engineers and contactors who have good reputations and a track record of performance. Don’t cut corners.” By some careful planning, builders might “sleep better at night.”
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2014 WCC Panel: Working Smarter with Technology
May 13, 2014 —
Beverley BevenFlorez-CDJ STAFFDon MacGregor, Project Manager and General Contractor with Bert L. Howe & Associates, will be joining Brian Kahn, Esq. of Chapman, Glucksman, Dean, Roeb & Barger, Paul R. Kiesel, Esq. of Kiesel Law, Hon. Peter Lichtmen (ret), Hon. Nancy Wieben Stock (ret), and Peter S. Curry of Curry Stenger Engineering as a panelist in the break-out session Working Smarter With Technology at the 2014 West Coast Casualty Construction Defect Seminar being held May 15th and 16th at the Disneyland Hotel in Anaheim, California.
With a strong focus on the topic of this year’s seminar, Back to Business . . . Working Smarter, Not Harder, the panel will discuss ways that technology can assist our industry in working more efficiently, saving money and providing a better product. Conversely, the panel will also acknowledge the limitations of technology and areas where the use of advanced technology may not be appropriate.
The information provided will be of benefit to the construction defect litigator but equally valuable to other types of complex litigation. Accordingly, this panel will appeal to those whose scope of work goes beyond the bounds of construction defect. A brief outline of topics that will be addressed by each panelist include remote virtual appearance and deposition attendances, document management software, how to create, manage and edit documents using remote technology, technological tools that allow for easier communications, transfer of information and flexibility, expert technology, and technology in mediation and trial.
The panel discussion will go beyond past seminar discussions in that they will discuss and demonstrate tools that are just coming into use now as well as new tools which are being released prior to the seminar.
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Arkansas Federal Court Fans the Product Liability Flames Utilizing the Malfunction Theory
September 14, 2020 —
Michael J. Ciamaichelo - The Subrogation StrategistTo establish a product liability claim in Arkansas, the plaintiff must prove that the product was supplied in a defective condition, which rendered it unreasonably dangerous and that the defective condition was the proximate cause of the claimed damage or injury. Ordinarily, a plaintiff relies upon direct evidence of a product defect to establish its product liability claim. However, in some cases, the product sustains so much damage that it is impossible for a plaintiff to obtain direct evidence of a defect.
The malfunction theory allows a plaintiff in a product liability action to establish a defect through circumstantial evidence, when direct evidence of a defect no longer exists. In order to utilize the malfunction theory, a plaintiff must present evidence that an unspecified product defect was the most likely cause of the damage/accident and rule out all other possible causes of the damage/accident. In Am. Nat’l Prop. & Cas. Co. v. Broan-Nutone, No. 5:18-CV-5250, 2020 U.S. Dist. LEXIS 117116, the United States District Court for the Western District of Arkansas ruled that the plaintiff offered sufficient evidence under “the malfunction theory” to defeat a summary judgment motion in a product liability action involving a bathroom fan that was destroyed in a fire.
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Michael J. Ciamaichelo, White and Williams LLPMr. Ciamaichelo may be contacted at
ciamaichelom@whiteandwilliams.com
Breath of Fresh Air
February 14, 2023 —
Rachel E. Pelovitz - Construction ExecutiveFor the first time since 2012, the Environmental Protection Agency updated and strengthened air quality standards. Construction sites are responsible for 14.5% of particulate matter in the air and 8% of total emissions in the United States.
With that in mind, Construction Executive has spoken with Serene Al-Momen, Ph.D. and chief executive officer of
Attune, in an exclusive interview. Al-Momen is an expert in air quality and offers her opinion on standards, consequences and the impact on the construction industry—which she has specific experience with due to Attune’s relationship with
Clark Construction, a member of
Associated Builders and Contractors.
CONSTRUCTION EXECUTIVE: What is important about air quality standards in general?
Serene Al-Momen: Air quality standards regulate the amount of pollution that's allowed to be emitted into the atmosphere.
Reprinted courtesy of
Rachel E. Pelovitz, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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How a Robot-Built Habitat on Mars Could Change Construction on Earth
October 14, 2019 —
Drew Turney - Engineering News-RecordAccording to a 2018 report by the International Energy Agency and UN Environment, the global construction industry is responsible for 39% of energy-related carbon-dioxide emissions. That is a huge, scary number—but one that comes with an equally large opportunity to mitigate climate change. The 2015 Paris climate talks revealed that by using existing technology, construction could cut global carbon emissions by up to a third.
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Drew Turney, ENRENR may be contacted at
ENR.com@bnpmedia.com
Coping With The New Cap And Trade Law
January 04, 2023 —
John P. Ahlers - Ahlers Cressman & SleightOn May 17, 2021, Governor Jay Inslee signed a new carbon pricing bill making Washington only the second in the nation to have such an extensive climate-change reduction policy (Senate Bill 5126).
The Stated Purpose of the New Law:
SB5126 creates a system to cap carbon pollution and greenhouse gas emissions, and individual businesses are provided specific limits on emissions (“Cap”). Those businesses then have to purchase credits for allowed emissions.
The businesses which emit fewer greenhouse gases than the credits allotted them can sell their credits to businesses that are not reducing emissions as quickly (“Trade”). The overall pool of carbon credits are to be gradually reduced by 2050 to hit a goal of net-zero emissions. This bill is colloquially known as the “Cap and Trade Law.”
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John P. Ahlers, Ahlers Cressman & SleightMr. Ahlers may be contacted at
john.ahlers@acslawyers.com
Real Estate & Construction News Roundup (10/16/24) – Chevron Ruling’s Impact on Construction Industry, New Kind of Public Housing and Policy Recommendations from Sustainable Building Groups
November 11, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, Hurricane Helene affects infrastructure, California Gov. Gavin Newsom signs bills aimed at renter protections, Federal Reserve kick-off rate-easing cycle, and more!
- Hurricane Helene illustrates how communities and infrastructure across the U.S. are unprepared for the extreme weather driven by climate change. (Julie Strupp, Construction Dive)
- The Supreme Court’s June Chevron ruling will likely have a seismic impact on laws that pertain to the construction industry. (Julie Strupp, Construction Dive)
- California Gov. Gavin Newsom signed three bills changing renter protection practices in the state last month including new requirements for security deposit deductions and restrictions on certain fees. (Mary Salmonsen, Multifamily Dive)
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Pillsbury's Construction & Real Estate Law Team