The Dog Ate My Exclusion! – Georgia Federal Court: No Reformation to Add Pollution Exclusion
September 28, 2017 —
Philip M. Brown-Wilusz - Saxe Doernberger & Vita, P.C.While schoolchildren know that the classic “the dog ate my homework” excuse doesn’t work, insurance companies are willing to try a variation of that excuse. Ace American Insurance Company (Ace), sold a property policy (the Policy) to Exide Technologies, Inc. (Exide). Exide sought coverage under the Policy for acid damage at its former battery factory. Ace denied coverage, citing to the pollution exclusion. The only problem? The Policy contained no pollution exclusion!
Exide had procured policies from other insurers for several years prior to the inception of the Policy, all of which contained pollution exclusions. Exide instructed Marsh USA Inc. (Marsh), its broker, to procure insurance “on the same or better terms and conditions.” The resulting policy contained no pollution exclusion, and Exide sought coverage under the Policy for pollution-related losses.
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Philip M. Brown-Wilusz, Saxe Doernberger & Vita, P.C.Mr. Brown-Wilusz may be contacted at
pbw@sdvlaw.com
City in Ohio Sues Over Alleged Roof Defects
October 29, 2014 —
Beverley BevenFlorez-CDJ STAFFThe city of Worthington “is suing the architect and general contractor responsible for constructing the addition to the Worthington Community Center in 2002,” according to ThisWeek Community News. The city is demanding $1.3 million “to replace the roof on the fitness center and pool addition, which is 12 years old.”
Moody-Nolan, the architect, and Apex/M&P, the general contractor, have been named as defendants in the case. According to the complaint (as reported by ThisWeek), “experts retained by the city found that the roof has failed ‘due to unknown latent design defects and construction defects that have resulted in property damage.”
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The Difference Between Routine Document Destruction and Spoliation
October 18, 2021 —
Steven A. Neeley - Construction ExecutiveIn today’s world, there is a tendency to believe that everything must be preserved forever. The common belief is that documents, emails, text messages, etc. cannot be deleted because doing so may be viewed as spoliation (i.e., intentionally destroying relevant evidence). A party guilty of spoliation can be sanctioned, which can include an adverse inference that the lost information would have helped the other side. But that does not mean that contractors have to preserve every conceivable piece of information or data under all circumstances. There are key differences between routine document destruction (when done before receiving notice of potential claims or litigation) and spoliation.
The Armed Services Board of Contract Appeals decision in Appeal of Sungjee Constr. Co., Ltd., ASBCA Nos. 62002 and 62170 (Mar. 23, 2021) provides a good reminder. There, Sungjee challenged its default termination under a construction contract at Osan Air Base in South Korea. Sungjee argued that the government denied it access to the site for 352 days (out of a 450-day performance period) by refusing to issue passes that were needed to access the base. The government argued that it had issued the passes, but it could not produce them to Sungjee in discovery because they had been destroyed as part of a routine document destruction policy. The base security force issued hard copy passes and entered the information in a biometric system. The government was able to produce the biometric system data but not the hard copy passes because they were destroyed each year.
Sungjee argued the government was guilty of spoliation and moved for sanctions. It asked the Board to draw an adverse inference that the passes would have shown that the government had not issued proper passes on a timely basis, which delayed Sungjee’s performance. The Board denied Sungjee’s motion for several reasons.
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Steven A. Neeley, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Neeley may be contacted at
steve.neeley@huschblackwell.com
Sometimes, Being too Cute with Pleading Allegations is Unnecessary
June 06, 2018 —
David Adelstein - Florida Construction Legal UpdatesThere are times where being too darn cute with your pleading allegations is unnecessary and does not work. But, the point is really that the cuteness is unnecessary.
In a Miller Act payment bond dispute in Boneso Brothers Construction, Inc. v. Sauer, Inc., 2018 WL 2387833 (N.D.Cal. 2018), a claimant asserted claims against a Miller Act payment bond surety for breach of the payment bond, breach of a subcontract, open account, and account stated. The question is why would the claimant sue the payment bond surety for breach of subcontract (when the subcontract was not with the surety), and open account and account stated. I have no clue, other than such claims appeared quite unnecessary when the claimant asserted an action on the Miller Act payment bond (which is what the surety is liable under — actions under the statutory payment bond). Such claims were dismissed. And, they should have been.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
There Is No Sympathy If You Fail to Read Closely the Final Negotiated Construction Contract
February 28, 2022 —
David Adelstein - Florida Construction Legal UpdatesWhen an opinion in a case starts with, “Unlike some motions, not even the most ingenious lawyers could make this one complicated,” you know you are in for an interesting read. This was how the opinion started in U.S. f/u/b/o Hambric Steel and Fabrication, Inc. v. Leebcor Services, LLC, 2022 WL 345636 (M.D. GA. 2022), which concerns a Miller Act payment bond dispute between a subcontractor and prime contractor on a federal construction project.
As demonstrated below, the moral of this case is in fact simple. Read what you sign BEFORE you sign! No ifs, ands, or buts. Failure to do so will garner very little sympathy.
This case dealt with a prime contractor arguing that the subcontractor pulled the wool over its eyes by surreptitiously altering the final negotiated redlined contract between the parties. In particular, the prime contractor claimed that the dispute resolution provision was supposed to include a Virginia venue provision. However, the subcontractor “fraudulently” changed this provision to make it a Georgia venue provision after the final contract had been agreed to during the negotiation. Yet, it is undisputed that the executed contract between the parties included a Georgia venue provision.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Traub Lieberman Attorneys Recognized as 2024 “Top Lawyers” in New York by Hudson Valley Magazine
July 15, 2024 —
Traub LiebermanTraub Lieberman is pleased to announce four New York partners have been included in the 2024 edition of the Hudson Valley Magazine "Top Lawyers in the Hudson Valley in 2024.” This annual guide recognizes over 260 of the region's leading attorneys.
Lisa Shrewsberry, Hillary Raimondi and Jonathan Harwood are noted for their professional skills in the category of Professional Malpractice Non-Medical Defense and Copernicus “Cope” Gaza in the Insurance category.
Insurance:
Professional Malpractice Non Medical Defense:
- Jonathan R. Harwood
- Hillary J. Raimondi
- Lisa L. Shrewsberry
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Traub Lieberman
What The U.S. Can Learn from China to Bring Its Buildings to New Heights
November 15, 2022 —
Marc Gravely - Gravely PC“China’s history is marked by thousands of years of world-changing innovations: from the compass and gunpowder to acupuncture and the printing press. No one should be surprised that China has re-emerged as an economic superpower.” —Gary Locke
Westerners have often criticized China’s ‘creative’ interpretation of the concept of intellectual property, but even its harshest critics recognize the Asian superpower’s ability to build large-scale infrastructure projects at a breakneck pace. America does not want to emulate the absolute government control that has allowed China to build futuristic bridges and airports in record time. However, there are still some things we can learn from our biggest global competitor.
The White House itself has invoked China’s grand achievements in its quest to secure more infrastructure funding from Congress. The administration believes that the only way to compete with China is to spend
at least $2 trillion on upgrading bridges and mass transit, modernizing neighborhoods and airports, and making broadband access universal.
The skylines of China’s largest metropolises are nothing short of mesmerizing. Its grand airports and auditoriums amaze tourists and locals alike. Explore any important Chinese city on Google maps, and you will find a level of modernization in infrastructure that far surpasses American cities of similar size. Scholars have coined the phrase
“China envy” to refer to the effects of this phenomenon.
According to urban planning historian Thomas J. Campanella, China is doing the kind of things America used to do: amazing the world with grand structures that push engineering and architecture forward. The question is, if China has emulated us, can we now emulate China?
China Envy
There are some basic differences between the two nations which make emulation difficult. On the one hand, China has leapfrogged from rudimentary infrastructure to suborbital spaceships and bullet trains. America is at a different stage and moves at a different pace. Chinese leaders don’t need approval from the opposition in Congress; they have total control. If the Chinese administration wants to build a bridge, they just go ahead and do it. Democracy is a bit more complicated, but we naturally welcome the complexities, considering how stifling the political atmosphere is under communist rule.
Another difference some analysts have pointed out is that the current Chinese President and his predecessor both studied engineering, so they were naturally keen on innovation in their field. Meanwhile, U.S. presidents have seldom had such backgrounds. The American public has more often elected lawyers to rule over our nation.
China envy is understandable. Our competitor is home to
49 of the planet’s 100 tallest skyscrapers. It also boasts a million bridges. While the U.S. spends 2.4 percent of GDP on infrastructure,
China spends 8 percent. This was an important selling point for the White House’s ambitious infrastructure plan.
Located in a mountainous region with over 1,500 rivers, China has built bridges of fantastic proportions to keep urban centers and important agricultural areas connected.
The Pingtang Bridge in Guizhou province links two sides of a canyon that are 7,000 feet apart. The spectacular, 7-mile-long Hutong Yangtze River Bridge efficiently provides railway and highway access to Shanghai from Jiangsu province.
As climate change forces us to reevaluate Americans’ preference for private cars and the neglect of our railway systems, the inferior car ownership that was once a disadvantage for China is now an advantage. By 2025, high-speed trains will service
98 percent of Chinese cities. Subways are common in many of them. Today, the country boasts a high-speed rail network totaling more than 23,500 miles, or
eight times the distance between New York and LA. Chinese workers travel on bullet trains at 215 miles per hour, much faster than their American counterparts.
The gap between China and the U.S. when it comes to infrastructure is one of astronomic proportions. A few years ago, Bill Gates announced that China had used as much cement in three years as the U.S. in 100 years. China currently produces 14 times more steel than the U.S. and about 2.2 gigatons of cement per year, roughly half of the
4.5 gigatons our country used in the 20th century. In China, city planners have not focused on short-term return on investment, but on broader societal benefits. For example, World Bank officials were not enamored with the idea of creating a subway in Shanghai; the region’s geology made the project far too complex. The World Bank suggested buses would be a better solution for the city’s transit, but Chinese officials
didn’t listen and went ahead. Thirty years later, the Shanghai subway has become an example of efficiency, transporting more than 10 million people every day. It is as if China followed a different logic, one that often pays off.
According to Mr. Campanella, “We need a bit of China to be stirred into our game. . . We’re over privileging the immediately affected residents. What we don’t do is give requisite weight to the larger society.” China’s modernization has, however, not been without cost. Accelerated construction creates pollution, and not all the country’s massive structures are green or energy efficient. President Xi’s country is conscious about pollution, and it has poured significant resources into green infrastructure projects like wind and solar farms.
There is a boldness in China’s infrastructure planning, a pioneering spirit that we would do well to imitate. What American jurisdiction would spend billions on a new state-of-the-art airport only 50 miles away from a recently modernized one? China has done it in Beijing. In a way, it seems that China is seeing beyond the here and now, planning for tomorrow, and this is something we can learn from our competitors.
Marc Gravely is the founder and lead attorney at Gravely PC and author of Reframing America’s Infrastructure: A Ruins to Renaissance Playbook.
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Combating Climate Change by Reducing Embodied Energy in the Built Environment
December 02, 2019 —
Brent Trenga - Construction ExecutiveThe building and construction industry is a significant consumer of non-renewable energy resources and is contributing to changing the earth’s environment in damaging and irreversible ways. These impacts are being felt in climate-related shifts that include increases in the earth’s average temperature and rising sea levels.
A new report by NASA and the National Oceanic and Atmospheric Administration shows that 2018 was the fourth-hottest year since 1880, the earliest year for which reliable global temperature data is available. The three hottest years on record were 2015, 2016 and 2017.
Additionally, the rise in sea levels is causing “nuisance floods” to become more common. From the 1950s to the early 2000s, the days of flooding in the 27 most vulnerable cities across the United States grew from two per year to nearly 12.
These and other environmental impacts underscore the urgency of battling climate change and how critical it is for all industries—including construction—to stem the tide on this issue.
Reducing embodied energy in the built environment is one way the building and construction sector can do its part to address one of the major challenges of this century.
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Brent Trenga, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Trenga may be contacted at
brent.trenga@kingspan.com
