9th Circuit Plumbs Through the Federal and State False Claims Acts
January 16, 2024 —
Garret Murai - California Construction Law BlogYou may have heard of the False Claims Act and know that it penalizes companies and individuals in contract with the government who present false claims. The federal False Claims Act was signed into law by President Abraham Lincoln in 1863 to penalize profiteers during the Civil War who were selling the Union Army moth eaten blankets, boxes of sawdust instead of guns, and sometimes re-selling the Army calvary horses several times over. Since then, many states, including California, as well as municipalities, have enacted their own false claim statutes.
As currently written, the federal False Claims Act provides for statutory penalties against any person who:
- “[K]nowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval”;
- “[K]nowingly makes, uses or causes to be made or used, a false record or statement material to a false or fraudulent claim”;
- “[H]as possession, custody, or control of property or money used, or to be used, by the Government an knowingly delivers, or causes to be delivered, less than all of that money or property”;
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Another TV Fried as Georgia Leads U.S. in Lightning Costs
June 26, 2014 —
Kelly Gilblom – BloombergGeorgia tops a shocking list: most likely place to have property damaged by lightning.
Georgia residents were reimbursed for $56 million of lightning-related damage in homes last year tied to more than 11,000 claims, according to a top-10 list from the Insurance Information Institute. Texas ranked second at $54.2 million.
Once lightning is “in the wiring, it’s electrifying anything connected to that,” John Jensenius, a lightning-safety specialist at the National Weather Service, said today in a phone interview. “Televisions, and even things like microwaves, they all have little chips in them so they all can get fried pretty easily.”
Lightning cost insurers $5,869 per claim in the U.S. last year, more than double the average in 2004, as homeowners added electronics such as computers and high-definition televisions. Still, the total expense for the industry declined 8.4 percent nationwide in that span, to $673.5 million in 2013, because better lightning-protection systems and fewer storms decreased the frequency of claims, the industry group said.
Read the court decisionRead the full story...Reprinted courtesy of
Kelly Gilblom, BloombergMs. Gilblom may be contacted at
kgilblom@bloomberg.net
Construction Defects not Creating Problems for Bay Bridge
July 31, 2013 —
CDJ STAFFThere might have been a number of problems with San Francisco’s new Bay Bridge, but despite all that, the Contra-Costa Times says that the experts say that there is no reason for panic. And although the chair of the Senate Transportation Committee, Mark DeSaulnier, has been a critic of the bridge, he says that he is “convinced the old bridge is unsafe.”
Although DeSaulnier wants an independent review, construction of the bridge has been investigated by what the Times refers to as “dozens of internationally renowned bridge engineers and other experts.” According to the experts, the problems with the bridge fall in to three categories, ranging from the fixable, through the fixed, to those that were never actual problems.
Of the last category, the Oakland Tribune reported in 2005 that construction workers claimed they were told to “conceal shoddy welds to speed up construction,” but the Federal Highway Administration outside experts found no evidence of bad welds. In another case, bad welds were discovered at the factory where a span was being constructed. The process was changed and the bad welds repaired.
Caltrans has delayed the opening of the Bay Bridge to December 10. Earlier plans were to open the bridge in September.
Read the court decisionRead the full story...Reprinted courtesy of
Mechanic’s Liens and Leases Don’t Often Mix Well
May 03, 2021 —
Christopher G. Hill - Construction Law MusingsAs those who read my “musings” here at this construction law blog are well aware, the topic of Virginia mechanic’s liens is one that is much discussed. From the basic statutory requirements to the more technical aspects of these tricky beasts. One aspect of mechanic’s liens that I have yet to discuss in detail it how these liens attach in the situation where the contractor does work for a lessee and not for the owner of the underlying fee interest in the property.
A recent case out of the Western District of Virginia federal court, McCarthy Building Companies Inc. v. TPE Virginia Land Holdings LLC, discusses the interaction of Va. Code 43-20, work on a leasehold, and parties necessary to any litigation relating to a lien for the work on that leasehold. The basic facts, outlined more thoroughly in the linked opinion, are these. MBC provided certain work to TPE Kentuck Solar, LLC on property leased from TPE Virginia Land Holdings, LLC. The lease was for a fixed term and for a fixed amount regardless of the work performed at the property. MBC was unpaid by the Kentuck entity and then recorded a lien on the property and then sued to enforce that lien and for unjust enrichment against TPE Land Holdings. TPE Land Holding filed a motion to dismiss the mechanic’s lien and unjust enrichment counts.
Read the court decisionRead the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Repairing One’s Own Work and the one Year Statute of Limitations to Sue a Miller Act Payment Bond
April 11, 2018 —
David Adelstein - Florida Construction Legal UpdatesWhen it comes to Miller Act payment bond claims, repairing one’s own work does NOT extend the one year statute of limitations to file suit on a Miler Act payment bond. Belonger Corp., Inc. v. BW Contracting Services, Inc., 2018 WL 704379, *3 (E.D. Wisconsin 2018) (“The courts that have considered this question tend to agree that, once a subcontractor completes its work under the subcontract, repairs or corrections to that work do not fall within the meaning of ‘labor’ or ‘materials’ and, as such, do not extend the Miller Act’s one-year statute of limitations.”).
Well, what if the subcontractor was repairing its own work due to an issue caused by another subcontractor?
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Wendel Rosen’s Construction Practice Group Welcomes Quinlan Tom
January 06, 2016 —
Garret Murai – California Construction Law BlogThere’s been more cheer than usual at Wendel Rosen’s Construction Practice Group this holiday season.
Earlier this month, Quinlan Tom, a construction and business attorney, joined us from McInerney & Dillon, a venerable and well-respected construction boutique firm (we know a lot of folks there) with local roots like us in Oakland, California. We’ve all known Quinlan for a while, so when he decided to join our band of merry legal practitioners, we were quite thrilled.
Being lawyers though, and better at asking than answering questions, we decided to pose a few questions to Quinlan:
Q. So, you’ve just been sworn to tell the truth, the whole truth, and nothing but the truth, under penalty of perjury. So, tell us about your practice.
A. Let me just start with it’s quite an honor to appear in your blog; I’ve been a reader for a while (in secret of course before I got to Wendel Rosen). I’m also excited to join you and the other members of Wendel Rosen’s Construction Practice Group; as you mention, I’ve known each of you professionally for quite some time and respect each of you tremendously.
I started as a construction litigator right out of law school. I completed three years of mechanical engineering at UC Davis and put that on my resume when I was looking for a job after law school. (In addition, my dad retired after 40 years in the trenches as a union electrician). McInerney & Dillon (“M&D”) and a couple of other firms found that interesting and I ended up starting with M&D. I did find that my engineering studies helped with my acclimation to construction disputes. While I never pretend to be an engineer, it has provided me with a foundation of how the construction process works and how the projects are designed. 26 years later, I continue to enjoy counseling my clients in their construction disputes/issues and still find each construction project I am involved with fascinating.
I have tried, arbitrated and litigated cases for 26 years, from the United States District Court to the California Superior Court and the California Office of Administrative Hearings. I have argued cases before the Ninth Circuit Court of Appeals and the California Court of Appeal. I counsel my clients into hopefully making the best business decisions available melding the knowledge I have gleaned from my litigation experience with their financial and personal goals.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Bailout for an Improperly Drafted Indemnification Provision
February 11, 2019 —
David Adelstein - Florida Construction Legal UpdatesA recent opinion came out that held that even though an indemnification provision in a subcontract was unenforceable per Florida Statute s. 725.06, the unenforceable portion is merely severed out of the indemnification clause leaving the rest of the clause intact. In essence, an otherwise invalid indemnification clause is bailed out by this ruling (which does not even discuss whether this subcontract had a severability provision that states that if any portion of any provision in the subcontract is invalid, such invalid portion shall be severed and the remaining portion of the provision shall remain in full force and effect).
This opinion arose from a construction defect case, CB Contractxors, LLC v. Allens Steel Products, Inc.,43 Fla.L.Weekly D2773a (Fla. 5thDCA 2018), where the general contractor, sued by an association, flowed down damages to subcontractors based on the contractual indemnification provision in the subcontracts. Subcontractors moved to dismiss the contractual indemnification claim because it was not compliant with Florida Statute s. 725.06. The indemnification provision required the subcontractors to indemnify the general contractor even for the general contractors own partial negligence, but failed to specify a monetary limitation on the extent of the indemnification as required by Florida Statute s. 725.06. (The indemnification clause in the subcontract was the standard intermediate form of indemnification that required the subcontractor to indemnify the general contractor for claims regardless of whether the claims were caused in part by the general contractor.)
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Undocumented Debris at Mississippi Port Sparks Legal Battle
July 26, 2017 —
Jim Parsons - Engineering News-RecordUndocumented underground debris fields at a Gulf of Mexico port project are at the heart of a contractor’s nearly $50-million federal lawsuit against the Mississippi Development Authority and eight engineering and construction consultants.
Read the court decisionRead the full story...Reprinted courtesy of
Jim Parsons, ENRENR may be contacted at
ENR.com@bnpmedia.com