California’s Wildfire Dilemma: Put Houses or Forests First?
November 29, 2021 —
Jim Hinch - BloombergAs record-breaking fires blacken millions of acres in California and elsewhere in the West this year, politicians are mostly sticking to a standard script in response. President Joe Biden’s proposed budget this year includes a $500 million boost to what the White House calls “forest management” and other efforts to reduce wildfire risk. In July, California lawmakers approved $1.5 billion in similar prevention spending.
The funds are in addition to the $2 billion the federal government spends each year fighting fires — a figure twice what it was 10 years ago and roughly five times more than in the 1980s and 1990s. A study last year found that in 2018, wildfires in California caused $148.5 billion in economic damage, including $46 billion outside the state.
Roughly one in three American houses is now in what forest scientists call the wildland-urban interface, where growing cities, remote workers, second-home buyers and commuters priced out of other housing markets are often pushing into fire-prone regions. A 2017 study found that 900,000 homes in the Western U.S. worth a combined $237 billion were “at high risk for fire damage.”
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Jim Hinch, Bloomberg
ASCE Statement on House Passage of Infrastructure Investment and Jobs Act
November 15, 2021 —
American Society of Civil EngineersThe following is a statement by Dennis D. Truax, P.E., President, American Society of Civil Engineers (ASCE):
WASHINGTON, DC. – It is a great day for the nation as the U.S. House of Representatives passed the Infrastructure Investment and Jobs Act (IIJA), fulfilling President Biden's vision with a historic piece of legislation that will have monumental impacts on the economy, public safety, global competitiveness, and each American's well-being. Passage of this five-year, $1.2 trillion bill proves once again that the country can lead with infrastructure.
With this legislation, the federal government will restore their critical partnership with cities and states to modernize our nation's roads, bridges, transit systems, drinking water pipes, school facilities, broadband, ports, airports and more. Without a strong federal partner, local projects that are community lifelines have hung in the balance, oftentimes being paused or outright cancelled due to funding uncertainties. When this happens, American households and businesses are the ones who pay the price.
The IIJA is the culmination of decades of advocacy by American Society of Civil Engineers (ASCE) members who worked tirelessly to educate Congress about the role infrastructure plays in supporting the economy and our quality of life. ASCE's Infrastructure Report Cards have sounded the alarm on our nation's infrastructure conditions since 1998, with new reports being released every four years. While all categories of infrastructure have been the cause of some concerns, the common denominator behind each category's struggles has been a backlog of projects, overdue maintenance, and a need for resilience. This bill includes investments to repair and modernize these critical assets for almost all of the 17 categories in the 2021 Report Card for America's Infrastructure, which assigned our nation's infrastructure a cumulative grade of 'C-'.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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Attorney-Client Privilege in the Age of Cyber Breaches
October 18, 2021 —
Shaia Araghi - Newmeyer DillionInvestigations and forensic reports relating to a cybersecurity breach may not always be protected by the attorney-client privilege or work product protection. Companies seeking such reports after a data breach must take caution to protect them from a possible waiver of privilege in the event of subsequent litigation relating to a data breach. The following recent cases highlight the potential waiver of privilege in light of the preparation of a forensic report.
- In re Capital One Consumer Data Security Breach Litigation, 2020 WL 3470261 (E.D. Va. June 25, 2020)
- After a data breach occurred, Capital One retained a law firm that later entered into an agreement with Mandiant for various cyber-related services (including incident remediation), which required that Mandiant provide deliverables to the firm, rather than to Capitol One. In re Capital One Consumer Data Security Breach Litigation, 2020 WL 2731238, at *1 (E.D. Va. June 25, 2020). Plaintiffs sought release of the report created by Mandiant (regarding the factors leading to the breach), arguing that it was prepared for business and regulatory purposes and therefore was not privileged, while Capital One argued that the report was privileged because it was prepared in anticipation of litigation. Ibid. The Court determined that Capital One did not carry its burden of establishing that the report was protected by the attorney work-product doctrine and ordered that Capital One produce the report. Id. at *7. In its reasoning, the Court stated that the fact that there is litigation does not, by itself, provide prepared materials with work-product protection. Ibid. The work-product protection applies when a party faces a claim following an event that may result in litigation, and the work product would not have been prepared in a substantially similar form but for the prospect of that litigation. Ibid.
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Shaia Araghi, Newmeyer DillionMs. Araghi may be contacted at
shaia.araghi@ndlf.com
Avoid Five Common Fraudulent Schemes Used in Construction
December 02, 2019 —
Ken Van Bree - Construction ExecutiveHere’s an attention-getting statistic: A typical case of fraud in the construction industry has a median loss of $227,000, according to the 2018 Report to the Nations issued by the Association of Certified Fraud Examiners (ACFE) on occupational or internal fraud. This report further showed that the construction industry’s median loss is approximately $119,000 higher than the average fraud losses across all industries.
Construction companies are most at risk for fraud related to corruption (such as bribes and kickbacks), billing related schemes, expense reimbursements, check tampering and equipment or material theft.
This brings up three important questions:
- What are the fraud schemes affecting your company?
- How can contractors keep their companies from experiencing these types of fraud?
- What is the profile of fraudster?
The threat of fraud can never be wholly removed; however, companies should take steps to identify likely fraud schemes they might face. Below are a number of schemes frequently used to defraud construction companies.
Reprinted courtesy of
Ken Van Bree, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Construction Resumes after Defects
June 28, 2013 —
CDJ STAFFWhen inspectors found defective bolts in the construction of the Media Arts Center at L. A. Mission College, the contractor walked off the job. The project had been underway for about eighteen months. After problems were found with welds and bolts, the contractor informed the school that it could not complete the job. The California Division of the State Architect then required inspection of every weld and joint, leading to a dispute as to who was going to pay for it.
At this point, only the first story has been inspected. Although the other two stories must be inspected, the new contractor is about to begin work on the building. James O’Reilly, the executive director for facilities, planning and development, said that “the main focus is on fixing the defective issues and getting construction completed so we can serve the Mission campus.” Still at question is how much SMC Construction received before they walked off the job.
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“Bee” Careful: Unique Considerations When Negotiating a Bee Storage Lease Agreement
March 27, 2019 —
Colton Addy - Snell & Wilmer Real Estate Litigation BlogAs demand for commercial bees used to pollinate crops (such as almond trees) has grown, so has the demand for facilities to store bees. Entering a lease agreement for the storage of live bees presents some unique issues the parties need to consider when negotiating the lease agreement.
Don’t Bee Short-Sighted: Bees are often transported to different areas depending on the time of year, which means bees are not stored in the same facility all year. The lease agreement will often only provide for the storage of bees during the season when the bees are used for pollination in that particular area, but that does not mean the parties must limit the term of the lease agreement to a single season. The parties may consider entering into a lease agreement for multiple years that only applies during the pollination season each year.
Bee Mindful of the Rent: Whereas the parties usually base rent in a typical commercial lease agreement off of the square footage of space the tenant uses in the premises, it often makes more sense for both parties negotiating a lease for the storage of bees to base the rent on the number of beehives or bee colony boxes stored at the facility. Basing the rent on the number of beehives or bee colony boxes provides the landlord with flexibility in storing the bees of multiple tenants in the same facility, and it can give the tenant flexibility with the number of bees it may need stored at the facility in any given season. With such a rental arrangement, a landlord should consider asking for a commitment from the tenant to deliver at least a certain number of beehives or colonies for storage, and the tenant should consider asking for a commitment from the landlord to reserve space in the facility for at least that same number of beehives or colonies as the tenant is giving a commitment for. Additionally, the parties will need to determine when rent will be paid. In a general commercial lease agreement, rent is usually paid monthly. With a bee storage lease agreement, however, a landlord may want to require the tenant to pay all of the rent for the season upon delivery of the bees, and the landlord may also want the tenant to pay a percentage of the rent to reserve space in the facility prior to delivery of the bees. This allows the landlord to get an early indication of what space in the facility it will have available in the facility for other tenants given the somewhat flexible rental arrangement of the parties.
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Colton Addy, Snell & WilmerMr. Addy may be contacted at
caddy@swlaw.com
DRCOG’s Findings on the Impact of Construction Defect Litigation Have Been Released (And the Results Should Not Surprise You)
November 13, 2013 —
Derek Lindenschmidt — Higgins, Hopkins, McLain & Roswell, LLC.The downward trend in attached-housing construction in Colorado is well-known and discussed often within the region’s construction, insurance, finance, and legal communities. In recent years, builders and insurers in particular have striven to bring greater awareness to local governments and lawmakers regarding the impact that construction defect lawsuits have on the builders’ ability to introduce desirable, affordable, yet cost-efficient attached-housing options, such as condominiums and townhomes, into the marketplace. The Denver Regional Council of Governments (“DRCOG”) has been aware of the builders’ and insurers’ plight, largely because of the impact that the scarcity of affordable attached-housing has had on their respective communities.
On October 29th, DRCOG released its long-awaited Denver Metro Area Housing Diversity Study, prepared by Economic & Planning Systems, Inc., which investigated the factors contributing to the recent (downward) attached-housing development trends and conditions. The Study evaluated factors including changing financing and insurance requirements for builders and homebuyers, the impacts of foreclosures, changes in prospective homebuyer demographics, economic conditions which limit options for prospective homebuyers, and the costs and risks associated with construction defect regulations and lawsuits.
Despite the retorts and rebukes of the naysayers, the negative impact of construction defect regulations and lawsuits on Colorado’s housing market is significant.
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Derek LindenschmidtDerek Lindenschmidt can be contacted at
lindenschmidt@hhmrlaw.com
Project Completion Determines Mechanics Lien Recording Deadline
April 08, 2024 —
William L. Porter - Porter Law GroupThe California mechanics lien is one of the most powerful collection remedies available to contractors, subcontractors and suppliers who are unpaid for work performed and materials supplied in relation to a California private works construction project. The mechanics lien allows the claimant to actually sell the property where the work was carried out in order to obtain payment, entirely of course, against the wishes of the property owner. There are a number of important steps to follow and timelines to be met in order to pursue this remedy.
First, Understand Your Preliminary Notice Deadline
Working within deadlines is absolutely crucial to preserving mechanics lien rights under California law. The deadlines differ, depending on whether you are a “direct” contractor, also known as “original” or “prime” contractor (one who contracts directly with the property owner) or a subcontractor or material supplier. The process begins with the serving of a “preliminary notice” no later than 20 days after the party serving the preliminary notice begins supplying labor or materials to the project. Direct contractors are only required to serve the preliminary notice on the construction lender (Civil Code section 8200-8216), whereas subcontractors and material suppliers must serve not only the construction lender, but also the owner and direct contractor (see Civil Code section 8200(e)).
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
