Cambridge Massachusetts Building Expert Directory

A Termination for Convenience Is Not a Termination for Default

April 22, 2024 — David Adelstein - Florida Construction Legal Updates
A termination for convenience is NOT a termination for default. They are NOT the same. They should NOT be treated as the same. I am a huge proponent of termination for convenience provisions because sometimes a party needs to be able to exercise a termination for convenience, but the termination is not one that rises to a basis for default. However, exercising a termination for convenience does not mean you get to go back in time and convert the termination for convenience into a termination for default. It does not work like that. Nor should it. An opinion out of the Civilian Board of Contract Appeals – Williams Building Company, Inc. v. Department of State, CBCA 7147, 2024 WL 1099788 (CBCA 2024 – demonstrates a fundamental distinction between a termination for convenience and a termination for default, i.e., that you don’t get to conjure up defaults when you exercise a termination for convenience:

Because a termination for convenience essentially turns a fixed-price construction contract into a cost-reimbursement contract, allowing the contractor to recover its incurred performance costs, the resolution of this appeal will involve identifying the total costs that [Contractor] incurred in performing this contract before [Government] terminated it for convenience. Since [Government] terminated the contract for convenience rather than for default, it no longer matters whether, in the past,[Contractor] acted intentionally in overstating the amount of its incurred costs or committed a contract breach. Ultimately, as permitted in response to a termination for convenience, [Contractor] will recover those allowable costs that [Contractor]establishes it incurred in performing the contract.

Williams Building Company, supra.

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

California Superior Court Overrules Insurer's Demurrer on COVID-19 Claim

February 15, 2021 — Tred R. Eyerly - Insurance Law Hawaii
A Superior Court in California overruled the insurer's demurrer to the policy holder's complaint seeking business interruption coverage after government shutdown orders were issued because of the coronavirus pandemic. Goodwill Industries of Orange County, California v. Philadelphia Indemnity Ins. Co., Cal. Superior Ct., Civil No. 30-2020-01169032-CU-IC-CXC (Minute Order Jan. 28,, 2021). The minute order is here [Goodwill Decision]. The insurer demurred on the ground that the insured had not alleged sufficient facts to show "direct physical loss" under the business income, extra expenses and civil authority provisions in the policy because coronavirus and COVID-19 did not physically alter the structure. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Blurred Lines: New York Supreme Court Clarifies Scope of Privileged Documents in Connection with Pre-Denial Communications Prepared by Insurer's Coverage Counsel

September 17, 2015 — Greg Steinberg – White and Williams LLP
In a recent decision, the New York Supreme Court clarified the scope of privileged documents with respect to communications prepared by an insurer’s counsel prior to issuing a denial of coverage letter. The coverage litigation at issue arose out of MF Global Inc.’s claims under fidelity bonds for losses incurred as a result of large trades made by former MF Global employee, Evan Dooley. The trades cost MF Global, Dooley’s former clearing firm, $141 million after it had to reimburse the CME Group, Inc. futures clearinghouse that handled the trade. The insurers that issued the fidelity bonds contested coverage and sued MF Global in 2009. The opinion underscores the fact that there is no “bright line” rule in New York with respect to disclosure of communications in the insurance context prior to the issuance of a coverage determination – the disclosure requirement will instead turn on what’s actually privileged. In addition, while retention of counsel may not serve as an automatic shield for all documents prepared prior to the coverage decision, insurers will not be required to disclose, among other things, communications which include an “indicia of the provision of legal services.” Read the court decision
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Reprinted courtesy of Greg Steinberg, White and Williams LLP
Mr. Steinberg may be contacted at steinbergg@whiteandwilliams.com

Understanding the Miller Act

February 26, 2015 — Beverley BevenFlorez-CDJ STAFF
John P. Ahlers of Ahlers & Cressman PLLC, explained who is covered by the Miller Act in regards to Federal public works projects on the firm’s blog. Ahlers stated that “[t]he Miller Act requires that all general contractors post payment bonds on contracts in excess of $25,000.00.” In his blog post, Ahlers goes over coverage and the distinction between subcontractor and supplier. Ahlers commented, “While, at first glance, it may seem fairly simple to sort out who is and who is not covered by the Miller Act payment bond, the analysis can at times be factually and legally complex. This is an area that, if faced, the contractor should seek legal advice of an experienced construction lawyer before jumping to conclusions.” Read the court decision
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Newmeyer Dillion Announces New Partners

January 06, 2020 — Michael Krueger & Jason Morris - Newmeyer Dillion
Prominent business and real estate law firm Newmeyer Dillion is pleased to announce that Walnut Creek attorney, Michael Krueger, and Newport Beach attorney, Jason Morris, have been elected to partnership. Their promotion is effective immediately. "We are proud to have Jason and Mike join the firm's partnership," said Managing Partner Paul Tetzloff. "They both embody the firm's core cultural pillars – like, trust, respect and loyalty – and they've both demonstrated a commitment to outstanding client service and excellent legal work. They will continue to propel the firm's success for decades to come." Michael Krueger is based in the firm's Walnut Creek office, representing companies at every stage of the business life cycle to create business solutions that minimize risk and accomplish strategic objectives. Recognized as a 2019 California Trailblazer by The Recorder, Krueger is a trusted advisor for complex business negotiations, real estate ventures including Opportunity Zone projects, mergers and acquisitions, bank finance and private equity transactions. A former in-house counsel and business owner, he serves as general counsel for clients focused on expanding their operations, products, and services. Krueger earned his B.A from Marian University and his J.D. from Valparaiso School of Law. Jason Morris is based in the firm's Newport Beach office, representing companies in all aspects of labor & employment law and business litigation. Whether offering practical advice on a wide range of day-to-day employment law issues, or navigating the complexity of all aspects of civil litigation defense, his focus is helping clients avoid potential legal landmines and keep their business assets protected. Morris brings significant leadership and trial experience to his practice, serving for nearly eight years on active duty in the United States Marine Corps as a Judge Advocate both in the Pentagon advising senior military and civilian leaders, and as a trial attorney successfully representing more than 300 cases, including over 10 trials to verdict. Morris earned his B.A. from Marian University, cum laude, and his J.D. from Indiana University Maurer School of Law. About Newmeyer Dillion For 35 years, Newmeyer Dillion has delivered creative and outstanding legal solutions and trial results that achieve client objectives in diverse industries. With over 70 attorneys working as a cohesive team to represent clients in all aspects of business, employment, real estate, privacy & data security and insurance law, Newmeyer Dillion delivers holistic and integrated legal services tailored to propel each client's success and bottom line. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California and Nevada, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949.854.7000 or visit www.newmeyerdillion.com. Read the court decision
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New York vs. Miami: The $50 Million Penthouse Battle From Zaha Hadid

October 28, 2015 — James Tarmy – Bloomberg
The Anglo-Iraqi starchitect Zaha Hadid has designed just two residential buildings in the U.S., one in New York (520 West 28th Street in the Chelsea Gallery District next to the High Line) and one in Miami (One Thousand Museum, next to PAMM and overlooking Biscayne Bay). Both have yet to be completed and both, as it happens, have penthouses priced in the region of $50 million. Two trophy properties by a Pritzker Prize-winning architect and two almost identical price tags? (The Miami penthouse clocks in at a mere $49 million, the New York penthouse an even $50 million.) It’s practically begging for a head-to-head comparison. Read the court decision
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Reprinted courtesy of James Tarmy, Bloomberg

10 Haight Lawyers Recognized in Best Lawyers in America© 2023 and The Best Lawyers: Ones to Watch 2023

August 22, 2022 — Haight Brown & Bonesteel LLP
Four Haight Brown & Bonesteel LLP attorneys were selected for Best Lawyers in America© 2023. Congratulations to:

Bruce Cleeland – Product Liability Litigation – Defendants
Peter Dubrawski – Product Liability Litigation – Defendants
Denis Moriarty – Insurance law
Ted Penny – Workers’ Compensation Law – Claimants

Six Haight Brown & Bonesteel LLP attorneys were selected for Best Lawyers®: Ones to Watch 2023. Congratulations to:

Courtney Arbucci – Personal Injury Litigation – Defendants; Product Liability Litigation – Defendants
Frances Brower – Product Liability Litigation – Defendants
Kyle DiNicola – Transportation Law
Arezoo Jamshidi – Appellate Practice; Transportation Law
Kristian Moriarty – Transportation Law
Bethsaida Obra-White – Construction Law; Insurance Law; Personal Injury Litigation – Defendants

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Reprinted courtesy of Haight Brown & Bonesteel LLP

Real Estate & Construction News Round-Up (05/11/22)

May 30, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
The supply of homes for sale is on the uptick, the White House releases a plan to improve the permitting process for infrastructure projects, cryptocurrency opens the door to a new class of property owners, and more.

Though the number of active listings is still down 67% from pre-pandemic levels, the supply of homes for sale is finally showing signs of improvement. (Diana Olick, CNBC)
Large corporations and institutional investors are flocking to buy digital real estate, with parcels being bought faster than they can be created. (Dan Patterson, CBS News)
London-based company, Admix, has been purchasing real estate in various Metaverse platforms and leasing them to companies interested in becoming involved in the online virtual space. (Nate Berg, Fast Company)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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