Unqualified Threat to Picket a Neutral is Unfair Labor Practice
January 08, 2019 —
Wally Zimolong - Supplemental ConditionsOn December 27, 2018, the National Labor Relations Board enforced a decades old policy that a union’s unqualified threat to picket a neutral employer at a “common situs” a/k/a a construction site is a violation of the National Labor Relations Act.
Background
The case involved area standards picketing by the IBEW of a project owned by the Las Vegas Convention and Visitors Authority (LVCVA). The IBEW sent a letter to various affiliated unions who were working on the project advising them of its intent to engage in area standards picketing at the project directed to the merit shop electrical subcontractor performing work there. The IBEW also sent a copy of the letter to the LVCVA.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Lakewood Introduced City Ordinance to Battle Colorado’s CD Law
September 24, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to The Denver Post, the Lakewood City Council “introduced an ordinance that would make it more difficult for homeowners associations to sue developers for construction defects and give builders more opportunity to fix problems before litigation begins.” A hearing and final vote is scheduled for October 13th.
"If there are defects, we want to get them fixed rather than dragging this through the courts for years," Lakewood Mayor Bob Murphy told The Denver Post. Murphy believes the ordinance will bring “more diverse housing options to Lakewood, especially around stations along the Regional Transportation District’s West Rail Line.” Lakewood’s City Planner Travis Parker also declared that the defects law is to blame for the lack of condos in the area.
However, some believe that “Lakewood is overstepping its bounds as a home-rule city,” according to The Denver Post. "What they're trying to do is use an ordinance to circumvent state law in order to make it impossible for homeowners to seek redress against builders for defects," Molly Foley-Healy an attorney who serves as legislative liaison for the Community Associations Institute's Legislative Action Committee told the Post. “Mayor Murphy needs to incentivize quality construction in Lakewood instead.”
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The Brexit Effect on the Construction Industry
June 30, 2016 —
Beverley BevenFlorez-CDJ STAFFNow that the United Kingdom (UK) has voted to leave the European Union (EU)—commonly known as ‘Brexit’—much discussion has arisen on how it will affect the construction industry both in the UK and globally.
Brexit could impact the U.S. housing market in various ways, some negative and some positive. For instance, the mortgage refinancing industry is poised to receive a “glut of applications due to low interest rates,” Construction Dive reported. It’s also possible that the U.S. will receive an influx of foreign investors who may perceive the UK as being too isolationist, making the U.S. seem “more open to global business,” according to the Detroit Free Press. They also pointed out that the vote has already impacted the U.S. housing market, since it is most likely the reason the Federal Reserve decided against raising interest rates in June.
Furthermore, Construction Dive presented two different views of how home buying may be effected. On the one hand, investors who lost money in the stock market may be less inclined or able to purchase property at this time. But on the other hand, if Brexit causes home prices to decline, it may “be a relief to those homebuyers finding it difficult to come up with a down payment, particularly first-timers who are facing limited starter-home inventory in addition to steep price tags.”
Barron’s does not seem to believe that the stock market decline due to Brexit will affect the U.S. building industry. The publication maintained their “relatively favorable view of the home builders” industry for the following reasons: “1) Healthy demand trends seen in our monthly survey of real-estate agents; 2) 100% U.S. exposure and tailwinds from lower mortgage rates; and 3) Generally undemanding valuations. However, we are somewhat balanced by: 1) Rates have already been favorable, limiting incremental buyer urgency; 2) Risk that continued market volatility or broader economic fallout could hurt housing fundamentals; and 3) Industry gross margins face pressure from rising land and labor costs. We forecast accelerating order growth through the fourth quarter, driven by community count growth and easier second-half comps, and think improving trends would be a positive catalyst.”
Less positive are the predictions for the UK construction industry. CNBC reported that migrant workers currently make up twelve percent of the UK construction force, and Brexit could cause the labor shortage to worsen. According to Global Construction, Brian Berry, Chief Executive of the Federation of Master Builders agreed that the industry needs migrant workers, however, he also stated that the UK needs to begin investing in their own “home-grown talent” through increasing apprenticeships.
Another prediction is that infrastructure projects may be adversely effected. For instance, the Independent reported that an anonymous source alleged that international investors have already begun to delay future infrastructure projects in the UK due to the uncertainty of the UK and the EU parting terms negotiation. Current projects may also be in jeopardy, according to the source, since the projects are often contingent upon existing shipping trade rules—if smaller ships can no longer go straight into Europe, it could be enough to halt these projects.
According to the Architects’ Journal, projects will stop—and they have evidence that one already has been halted: “Within minutes of the Brexit news, Daniel Minsky, who works with a boutique investment and development agency in London, was told that a proposed land deal had been pulled. The buyer withdrew at 7.05am this morning because they felt the residential value ‘was too risky.’”
The Architects’ Journal also predicted that environmentally friendly projects may decline since many of the green initiatives were governed by the EU under the Energy Performance in Buildings Directive. However, James Shackleton of Eversheds LLP disagreed with the assessment. Shackleton believes that Brexit may not result in less regulation, giving the following examples: “The Construction Design and Management Regulations 2015 which essentially enact EU Directive 1992/57/EEC and require certain minimum health and safety requirements in design and construction, are unlikely to be swept away.” Furthermore, the “Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 enacting EU Directive 2002/91/EC requiring Energy Performance Certificates for buildings is unlikely to be repealed,” Shackleton claimed.
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Three's a Trend: Second, Fourth and Ninth Circuits Uphold Broad "Related Claims" Language
February 23, 2016 —
Greg Steinberg – White and Williams LLPThe hallmark of a claims-made insurance policy is that the policy only provides coverage for claims that are “first made” during the policy period. As noted by the Texas Supreme Court, “for the insurer, the inherent benefit of a claims-made policy is the insurer's ability to close its books on a policy at its expiration and thus to attain a level of predictability unattainable under standard occurrence policies.”[1]
To ensure this “level of predictability,” claims-made insurance policies contain provisions stating that all “Related Claims” will be treated as a single claim deemed first made at the time the earliest of such claims was made. The “Related Claims” provision is an issue that comes up time and again – claims can span years, especially in the context of regulatory investigations, which often culminate in enforcement proceedings and litigation. This inevitably leads to disputes regarding whether later claims can be related back to the earlier claim, an issue that becomes even thornier when different insurers participate on different policy years.
Over time, case law on “Related Claims” has been mixed and somewhat inconsistent, with each case tending to hinge on its own unique set of facts, making it difficult to identify a clear standard for determining whether claims are related. However, three recent decisions out of the Second, Fourth and Ninth Circuits show that courts are increasingly deferring to the plain language of the policy and applying these provisions broadly.
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Greg Steinberg, White and Williams LLPMr. Steinberg may be contacted at
steinbergg@whiteandwilliams.com
Mitsui Fudosan Said to Consider Rebuilding Tilted Apartments
October 28, 2015 —
Katsuyo Kuwako – BloombergMitsui Fudosan Co., Japan’s biggest developer, is considering rebuilding an apartment complex in Yokohama after one of the four buildings started to tilt, according to a person familiar with the situation.
Kiyotaka Fujibayashi, president and chief executive officer of Mitsui Fudosan Residential Co., on Thursday explained the plans to residents, according to the person, who asked not to be named because the information is private. Another option the company is studying is buying back the apartments from the residents at a price higher than what they had paid, the person said. The project was sold in 2006.
Mitsui Fudosan is the latest developer to come under scrutiny for defects at residential projects in the Tokyo area. Mitsubishi Estate Co., Japan’s biggest developer by market value, said last year it would rebuild a residential complex in the upscale Aoyama neighborhood after finding faults. Also last year, Sekisui House Ltd. said it would reconstruct a residential complex that was being built by Taisei Corp. after finding some columns were missing reinforcing metals.
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Katsuyo Kuwako, Bloomberg
Insurer's Withheld Discovery Must be Produced in Bad Faith Case
November 03, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe United States District Court for the Western District of Washington granted the insureds' motion to compel and ordered that the insurer produce withheld discovery. Bagley v. Travelers Home & Marine Ins. Co., 2016 U.S. Dist. LEXIS 115028 (W.D. Wash. Aug. 25, 2016).
The insureds' dock and boat ramp were damaged in a storm. Travelers refused to pay for the damage, arguing it was not covered. After Plaintiffs filed suit, Travelers admitted coverage and agreed to pay. The insureds' suit included a claim that Travelers wrongfully denied coverage, thereby costing the insureds money.
The insureds moved the court to compel Travelers to respond to certain discovery requests. First, the insureds requested the claims file Travelers maintained on their claim. The court did not order the production of privileged documents, but documents related to claims handling were not privileged. Travelers was ordered to produce all documents in the insureds' claim file that related to claim handling, even if the documents were created after the commencement of litigation.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Understand Agreements in Hold Harmless and Indemnity Provisions
June 06, 2022 —
Jeffrey Cavignac - Construction ExecutiveOne of the most important provisions in a construction contract is the indemnity provision. An indemnity provision, which usually includes a requirement to hold harmless and defend another party, is included in nearly all construction contracts. Generally speaking, the upstream party (a general contractor or owner, for example) is attempting to shift risk to a downstream party (the general contractor or a subcontractor). In simple terms, subject to certain parameters, the downstream party is agreeing to be responsible for the upstream parties’ mistakes.
DEFINING INDEMNIFICATION
Insurance brokers focused on development and construction businesses get asked frequently: “If we sign this, are we insured?” It would be great if this could be answered “yes” or “no,” but life is rarely that straightforward. To understand whether a specific indemnification is insurable, we have to drill down on the actual provision. Let’s look at a typical indemnification below:
“To the fullest extent permitted by law the Contractor shall indemnify, defend and hold harmless the owner, architect, architect’s consultants and agents and employees of any of them from and against any claims, damages, losses and expenses, including but not limited to attorneys’ fees, arising out of or resulting from performance of the work whether caused in whole or in part by the contractor, a subcontractor, anyone directly or indirectly employed by them or anyone for whose acts they may be liable.”
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Jeffrey Cavignac, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Review the Terms and Conditions of Purchase Orders- They Could be Important!
February 15, 2018 —
Christopher G. Hill – Construction Law MusingsThere are many moving parts on a commercial construction project. These range from site surveys to weather events to ordering materials. On most large construction projects, the prime contract and subcontracts are generally
drafted ahead of time and hopefully reviewed by both in house personnel and an
experienced construction attorney. However, there are situations, particularly where the contract may be one for service or provision of materials where individual purchase orders are issued as opposed to what would likely be looked at as a long form subcontract.
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Christopher G. Hill, The Law Office of Christopher G. Hill, PC
