Do You Really Want Mandatory Arbitration in Your Construction Contract?
June 25, 2019 —
Christopher G. Hill - Construction Law MusingsIf you are in construction, you have likley run across (or even drafted) a dispute resolution provision into your construction contract. If you’ve been building for any length of time, you’ve read dispute resolution provisions containing mandatory arbitration clauses. These clauses can be found in the AIA documents and in many of the contracts that I review for my clients in my role as construction lawyer and counselor. More often than not, these arbitration clauses require arbitration (read “private court”) and refer to one of several sets of rules, though most likely the American Arbitration Association (“AAA”) Construction Industry rules. In Virginia, as in most of the United States, these clauses are read liberally and enforced by courts except in limited cases such as waiver.
The main justification for requiring arbitration over litigation is to avoid the fees and expense of the litigation process. In the right circumstances, arbitration does just that. With a carefully drafted arbitration clauses and with the right case that requires expertise in construction that a judge does not have (they have to liten to all manner of disputes so are necessarily generalists), arbitration can and should be a streamlined and less expensive version of litigation.
However, in my time as a construction attorney, I have more often run into situations where the arbitration process is at least equally expensive and frankly not much more streamlined. The additional administrative burden coupled with the possibility of paying for at least half of the hourly charges of one to three arbitrators is often not worth the additional expertise of those arbitrators. Many construction claims simply come down to non-payment and whether the work was performed properly. In my opinion, the fine judges in the Commonwealth of Virginia are more than capable of hearing this evidence and making a ruling.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Hirer Not Liable Under Privette Doctrine Where Hirer Had Knowledge of Condition, but not that Condition Posed a Concealed Hazard
December 11, 2023 —
Garret Murai - California Construction Law BlogThe Privette doctrine, so-called because of a case of the same name,
Privette v. Superior Court, 5 Cal.4th 698 (1993), provides a rebuttable presumption that a hirer is not liable for workplace injuries sustained by employees of hired parties. In other words, if a property owner hires a contractor, and one of the contractor’s employees gets injured while working on the property, there is a rebuttable presumption that the property owner is not liable for the employee’s injuries, the rationale being that because the contractor is required to carry workers’ compensation insurance the contractor is in the better position to absorb losses incurred a workplace injury.
There are, however, two widely recognized exceptions to the Privette doctrine. The first, is the Hooker exception, again named after a case of the same name,
Hooker v. Department of Transportation, 27 Cal.th 198 (2002), which provides that a hirer is liable for injuries to a hired parties’ employees, if the hirer retained control over the work being performed, negligently exercised that control, and the negative exercise of that control contributed to the employee’s injury.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Strangers in a Strange Land: Revisiting Arbitration Provisions to Account for Increasing International Influences
July 16, 2023 —
William Underwood - ConsensusDocsArbitration is nothing new. Neither is globalization. But the two are coming together in ways that have incrementally influenced the manner in which many arbitrations are now conducted. And this merits a re-examination of old arbitration clauses to account for some of these new influences. With that in mind, this article will examine some basic considerations when examining arbitration agreements within a construction industry that continues to see the increasing participation of foreign companies in domestic projects. Although this is not a comprehensive review of best drafting practices, nor is it a full survey of the differences between domestic and international arbitration, this article will nonetheless highlight a few basic concepts to keep in mind when reviewing arbitration clauses.
As a basic starting point, the continuing globalization of the construction industry has led to distinct impacts on the ways in which parties conduct arbitrations in the United States. The increased participation of international companies in domestic construction projects has naturally led to the application of international legal concepts to domestic alternative dispute resolution. And the increasing prevalence of these international concepts has led to a number of important trends that can impact the way arbitrations are handled.
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William Underwood, Jones & Walker (ConsensusDocs)Mr. Underwood may be contacted at
wunderwood@joneswalker.com
Candis Jones Named to Atlanta Magazine’s 2021 “Atlanta 500” List
March 01, 2021 —
Candis Jones - Lewis Brisbois NewsroomAtlanta Partner Candis Jones has been named to Atlanta Magazine’s 2021 “Atlanta 500” list of the most powerful business leaders in Atlanta. To compile this list, the publication reviewed nominations from the public and consulted experts across various sectors. The magazine’s editors and writers considered not only the status of the nominees within their respective organizations, but also whether the nominees were visionary by, for example, leading programs for their communities or creating opportunities for employees.
Ms. Jones is a member of Lewis Brisbois’ General Liability Practice. Representing a wide array of clients, including Fortune 500 companies, insurance carriers, and a major metropolitan transit authority, she focuses her practice on insurance defense, premises liability, personal injury, and medical malpractice. She was recently installed as the President of the Gate City Bar Association, the oldest African-American bar association in the state of Georgia, and also serves as a member of the Georgia Defense Lawyers Association and the Georgia Association of Black Women Attorneys.
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Candis Jones, Lewis BrisboisMs. Jones may be contacted at
Candis.Jones@lewisbrisbois.com
In Personal Injury Actions, Prejudgment Interest on Costs Not Recoverable
March 12, 2015 —
Elizabeth P. Trent and Leah B. Mason – Haight Brown & Bonesteel LLPIn Bean v. Pacific Coast Elevator Corporation, 2015 DJDAR 2864 (“Bean”), the California Court of Appeal, Fourth Appellate District, held in the published portion of its opinion that courts may not award prejudgment interest on costs in personal injury actions.
In Bean, an employee of defendant Pacific Coast Elevator Corporation (Pacific Coast) drove his vehicle into plaintiff Daniel William Bean’s truck while Bean was stopped at a red light. Bean suffered serious injuries and sued Pacific Coast. A jury found Pacific Coast negligent and awarded Bean $1,271,594.74 in damages. This amount exceeded Bean’s $999,999.00 statutory offer to compromise issued to Pacific Coast prior to trial, which Pacific Coast rejected.
Reprinted courtesy of
Elizabeth P. Trent, Haight Brown & Bonesteel LLP and
Leah B. Mason, Haight Brown & Bonesteel LLP
Ms. Trent may be contacted at etrent@hbblaw.com
Ms. Mason may be contacted at lmason@hbblaw.com
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Balancing Cybersecurity Threats in Smart Cities: Is the Potential Convenience of “Smart” Intersections Worth the Risk?
September 02, 2024 —
James P. Bobotek & Brian E. Finch - Gravel2Gavel Construction & Real Estate Law BlogThe term “smart cities” has become popular parlance for municipalities’ attempts to enhance delivery of urban services and infrastructure through information and communications technology. While they may conjure images of neon-lit high rises or streetscapes populated by sleek, hovering vehicles, a bit like the 1960s-era The Jetsons cartoon envisioned our high-tech future, the reality of smart cities has begun to emerge in more subtle, less glamourous forms. Cities tend to focus on wastewater monitoring, traffic control and energy distribution technologies in their efforts to become incrementally “smarter.”
Smart cities lean heavily on automation, internet connectivity and the Internet of Things (IoT)—including smartphones, connected cars and a host of web-based appliances and utilities—to boost the delivery and quality of essential urban services and infrastructure like transit, sanitation, water, energy, emergency response and more. Successful smart cities need infrastructure that supports such connectivity, and they pull data from hundreds, or even thousands, of sensors that can be used to analyze and shepherd the direction of resources.
Reprinted courtesy of
James P. Bobotek, Pillsbury and
Brian E. Finch, Pillsbury
Mr. Bobotek may be contacted at james.bobotek@pillsburylaw.com
Mr. Finch may be contacted at brian.finch@pillsburylaw.com
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Another Law Will Increase Construction Costs in New York
May 29, 2023 —
Bill Wilson - Construction Law ZoneNew York recently enacted legislation known as Carlos’ Law, which increases penalties for corporate liability for the death of, or serious injury to, an employee. The bill, S.621B / A.4947B, was named after Carlos Moncayo, a construction worker killed in a trench collapse on a New York City construction project. Moncayo’s employer repeatedly flouted safety rules and ignored warnings of dangerous conditions on its construction site before failing to properly support the trench that collapsed and killed Moncayo. Moncayo’s employer was convicted for his death, but the penalty was light. The company was sentenced to pay only $10,000, the maximum penalty at the time for any company convicted of a felony in New York State. The legislature responded with Carlos’ Law, which increases accountability for “employers,” and expands the scope of “employees” covered.
The corporate criminal law, NY Penal § 20.20(2)(c)(iv), imposes liability on an employer when “the conduct constituting the offense is engaged in by an agent of the corporation while acting within the scope of his employment and on behalf of the corporation, and the offense is . . . in relation to a crime involving the death or serious physical injury of an employee where the corporation acted negligently, recklessly, intentionally, or knowingly.” An “agent” of an employer is any “director, officer or employee of a corporation, or any other person who is authorized to act on behalf of the corporation.” § 20.20(a). An “employee” now includes any person providing labor or services for remuneration for a private entity or business within New York State without regard to an individual’s immigration status, and includes part-time workers, independent contractors, apprentices, day laborers and other workers. § 10.00 (22). The penalties for criminal corporate liability for the death or serious injury of an employee now include maximums of $500,000 when centered on a felony, and $300,000 when centered on a misdemeanor. § 80.10(1)(a) and (b).
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Bill Wilson, Robinson & Cole LLPMr. Wilson may be contacted at
wwilson@rc.com
Millennials Want Houses, Just Like Everybody Else
September 17, 2014 —
Peter Coy – BloombergThe proportion of homeownership among young adults has fallen from a third to a quarter over the past half-century. But the idea that today’s millennials are allergic to deeds and mortgages is a myth, says a report based on a survey of more than 1,000 Americans aged 18-29 by the Demand Institute, a nonprofit jointly operated by the Conference Board and Nielsen (NLSN).
“Like most myths, there is some truth here—but only some,” says the report’s introduction. The true part is that millennials are financially squeezed because of “graduating into a weak job market with growing student loan debt,” Jeremy Burbank, a Demand Institute vice president, said in a statement. The false part, the report says, is that millennials don’t want to own their homes.
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Peter Coy, BloombergMr. Coy may be contacted at
pcoy3@bloomberg.net
