EO or Uh-Oh: Biden’s Executive Order Requiring Project Labor Agreements on Federal Construction Projects
March 14, 2022 —
Nicole Stone, Jones Walker LLP - ConsensusDocsOn February 4, 2022, President Biden issued Executive Order (“EO”) 14063[1]. The EO requires that a Project Labor Agreement (“PLA”) be in place for any federal “large-scale construction projects” estimated at $35 million or more. To compete for or perform projects subject to the PLA requirement contractors must agree to be subject to the applicable PLA. For federal projects under $35 million or projects receiving federal financial assistance are not required by the EO to have PLA, but federal agencies will have discretion to require PLAs. The EO will not go into effect until after implementing regulations are finalized, probably after the beginning of June 2022.
Requiring PLAs on federal construction projects is a substantial shift from even the Obama Administration’s policy in favor of PLAs. Biden’s PLA EO will have an impact on federal contractors and likely industry repercussions beyond federal procurement. Only time and experience will tell whether those impacts will all be positive as the Biden Administration insists or will drive up construction costs and give unions more leverage than they have in the market as the critics insist.
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Nicole Stone, Jones Walker LLP (ConsensusDocs)Ms. Stone may be contacted at
nstone@joneswalker.com
Pennsylvania Federal Court Confirms: Construction Defect Claims Not Covered by CGL Policies
March 06, 2022 —
Nathan A. Cazier & Scott S. Thomas - Payne & FearsThe construction industry operates under the constant spectre of claims seeking damages for defective or faulty workmanship. Fortunately, the law in most states treats these claims as covered under commercial general liability (“CGL”) policies. A small minority of states take a much stingier view. In a newly decided case, a Pennsylvania federal court confirmed that Pennsylvania belongs to this small group of states that regard construction claims as not worthy of liability insurance coverage. Main St. Am. Assurance Co. v. Howard Lynch Plastering, Inc., No. CV 21-3977, 2022 WL 445768, (E.D. Pa. Feb. 14, 2022).
Main St. involves a typical construction defect case: W.B. Homes (“W.B.”) developed a residential community, contracting with various trades to build the homes. W.B. required these subcontractors to obtain liability insurance covering their work and, when homeowners sued W.B. for damages due to allegedly faulty work, W.B. tendered the claim to these insurers. One of them, Main Street Assurance Co. (“Main Street”) then sued W.B. for declaratory relief, arguing that under Pennsylvania law, it had no duty to defend W.B.
Reprinted courtesy of
Nathan A. Cazier, Payne & Fears and
Scott S. Thomas, Payne & Fears
Mr. Cazier may be contacted at nac@paynefears.com
Mr. Thomas may be contacted at sst@paynefears.com
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Big Data Meets Big Green: Data Centers and Carbon Removal Compete for Zero-Emission Energy
October 15, 2024 —
Robert A. James, Sidney L. Fowler & Ashleigh Myers - Gravel2Gavel Construction & Real Estate Law BlogArtificial intelligence, data centers, carbon removal and zero-emission power may sound like a winning line (plus the Free Space) on a 2024 Buzzword Bingo card. But the concepts have come into dramatic real-world tension as private and public actors seek to accommodate the digital and environmental imperatives for green energy.
After years of fairly stable demand, punctuated by declines during the pandemic and economic slumps, electricity demand is projected to double by 2050. A principal cause is the rapid expansion in the power needed to energize and cool servers amid explosive growth in the number and size of data centers, crypto miners, and other point sources of computation. Data centers were 3% of U.S. demand and are projected to be up to 9% or more by 2030; AI will drive a 160% surge in data center demand by 2030. A commentator notes, “We haven’t seen [growth like] this in a generation.”
Reprinted courtesy of
Robert A. James, Pillsbury,
Sidney L. Fowler, Pillsbury and
Ashleigh Myers, Pillsbury
Mr. James may be contacted at rob.james@pillsburylaw.com
Mr. Fowler may be contacted at sidney.fowler@pillsburylaw.com
Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com
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When an Insurer Proceeds as Subrogee, Defendants Cannot Assert Contribution Claims Against the Insured
July 15, 2019 —
Shannon M. Warren - The Subrogation StrategistIn Farmers Mut. Ins. Co. of Mason County v. Stove Builder Int’l, 2019 U.S. Dist. Lexis 46993 (E.D. Ky.), the United States District Court for the Northern Division of the Eastern District of Kentucky, by adopting a Magistrate Judge’s report and recommendations, see Farmers Mut. Ins. Co. v. Stove Builder, Int’l, Inc., 2019 U.S. Dist. LEXIS 48103 (E.D. Ky. Feb. 11, 2019), considered whether to allow the defendants to file a third-party complaint against the plaintiff’s insureds-subrogors. Finding that the defendants could not pursue contribution claims against the plaintiff’s insureds-subrogors, the court denied the defendant’s motion to file a third-party complaint.
The underlying subrogation action involved allegations of strict liability, negligence and breach of warranty against a pellet heater manufacturer and the retailer who sold the heater. The claims arose from a fire allegedly originating from the heater, which spread to the insureds-subrogors’ home causing property damage, along with consequential damages. Pursuant to the applicable insurance policy, the insureds-subrogors’ insurer issued payments to its insureds-subrogors. Thereafter, the insurer filed suit against the heater manufacturer and retailer.
The defendants filed a motion for leave to file a third-party complaint against the plaintiff’s insureds-subrogors, seeking to assert a contribution claim. The defendants alleged that the insureds-subrogors failed to properly install and maintain the pellet heater. The defendants also sought a jury instruction that would permit the jury to apportion fault to the insureds-subrogors, resulting in a reduction of the plaintiff’s recovery. The court looked to federal procedural law, but Kentucky substantive law to decide the defendants’ motion.
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Shannon M. Warren, White and WilliamsMs. Warren may be contacted at
warrens@whiteandwilliams.com
Factor the Factor in Factoring
May 03, 2017 —
David Adelstein - Florida Construction Legal UpdatesWhat is factoring? Have you heard this term used in the business context? Factoring is not uncommon in the business world. It comes up when a business is in need of cash (immediate cash flow) and sells/assigns money owed under accounts receivable to a third party known as a factor. The factor purchases the accounts receivable at a discount in consideration of an assignment of the full value of the accounts receivable from the debtor (the entity that owes the money under the accounts receivable). The factoring arrangement is a recognized relationship, implicates Florida’s Uniform Commercial Code, and places obligations on the debtor to pay the factor directly for the accounts receivable upon notice of the assignment.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com
Personal Guarantor Cannot Escape a Personal Guarantee By…
June 02, 2016 —
David Adelstein – Florida Construction Legal UpdatesIn a prior article, I discussed the point that a
personal guarantor cannot escape a contractual requirement of a
personal guarantee merely by executing the guarantee as a corporate officer.
The recent decision Frieri v. Capital Investment Services, Inc., 41 Fla. L. Weekly D1189a (Fla. 3d DCA 2016) illustrates this point. In this case, a company hired an individual to help grow that company’s business. The contract required the individual to invest $6 Million into a trust in consideration of the company’s president transferring substantial shares of the company into the trust. The objective was that the trust would own the controlling shares of the company. The money was transferred. However, the shares were never placed in the trust and the trust never received controlling interest in the company.
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David M. Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Craig Holden Named Top 100 Lawyer by Los Angeles Business Journal
June 27, 2022 —
Craig Holden - Lewis BrisboisLos Angeles, Calif. (May 17, 2022) - Los Angeles Partner Craig Holden has been named to the Los Angeles Business Journal’s (LABJ) “Top 100 Lawyers” list, which recognizes the most impactful attorneys in the Los Angeles region for their ongoing efforts as outstanding legal professionals. The attorneys on the list were honored on May 12 at LABJ’s inaugural Top 100 Lawyers Awards at the ASU California Center.
In the publication’s special section, LABJ Publisher Josh Schimmels noted that the attorneys on the Top 100 Lawyers list “have demonstrated exceptional legal skill and achievements across the full spectrum of responsibility, exemplary leadership and contributions to the Los Angeles community at large.” He also observed, “Considering the fact that the Los Angeles region has long been known for its status as a hub for legal [through] leaders and record-setting attorneys, being a standout in that field is particularly impressive.”
Likewise, in discussing his inclusion on the list, Mr. Holden remarked, “I am honored to be included on this list with so many exceptional attorneys from the LA legal community.”
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Craig Holden, Lewis BrisboisMr. Holden may be contacted at
Craig.Holden@lewisbrisbois.com
“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
