Miller Act Payment Bond Surety Bound to Arbitration Award
December 29, 2020 —
David Adelstein - Florida Construction Legal UpdatesHere is an interesting case binding a Miller Act payment bond surety to an arbitration award against its prime contractor (bond principal) that it received sufficient notice of. Notice is the operative word. The surety could have participated in the arbitration, elected not to, and when its prime contractor (bond principal) lost the arbitration, it was NOT given another bite out of the apple to litigate facts already been decided.
In BRC Uluslararasi Taahut VE Ticaret A.S. v. Lexon Ins. Co., 2020 WL 6801933 (D. Maryland 2020), a prime contractor was hired by the federal government to make security upgrades and interior renovations to a United States embassy in the Czech Republic. The prime contractor hired a subcontractor to perform all of the installed contract work. The prime contractor terminated the subcontractor for default during the course of construction.
The subcontractor demanded arbitration in accordance with the subcontract claiming it was wrongfully terminated. The subcontractor also filed a lawsuit asserting a Miller Act payment bond claim against the prime contractor’s surety (as well as a breach of contract action against the prime contractor). The subcontractor made clear it intended to pursue its claims in arbitration and hold the payment bond surety jointly and severally liable. The parties agreed to stay the lawsuit since the facts were identical to those being arbitrated. The arbitration went forward and an award was entered in favor of the subcontractor and against the prime contractor for approximately $2.3 Million.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Patent or Latent: An Important Question in Construction Defects
October 25, 2013 —
CDJ STAFFPieter M. O’Leary, writing for the site AVVO offers the advice that whether a construction defect is patent or latent could influence whether or not it’s covered in a construction defect claim. He notes that a “patent defect” is “a construction defect that is ‘readily observable or evident,’” while a “latent defect” is “a construction defect that is present but not readily detectable even with reasonable care.” While this may sound like a simple distinction, he notes that “distinguishing between the two can often be difficult and sometimes highly contested by the various parties in a lawsuit.”
The first question is “whether the average consumer, during the course of a reasonable inspection, would discover the defect.” The question arises because “if a defect is hidden and not detectable (latent defect), a longer time period exists for the claimant to file a claim.”
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#8 CDJ Topic: The Las Vegas HOA Fraud Case Concludes but Controversy Continues
December 30, 2015 —
Beverley BevenFlorez-CDJ STAFFIn the long-running case involving the scheme to take over and defraud homeowner associations in Las Vegas, Nevada, the
Las Vegas Review-Journal reported that a “total of 43 defendants either pleaded guilty or were convicted at trial in what prosecutors say is the largest public corruption case ever in Nevada.” Despite the conclusion of the trial and the convictions, “U.S. Magistrate Judge George Foley Jr. denied a June request by the Las Vegas Review-Journal to dissolve two protective orders keeping secret 6 million pages of documents, including 10,000 pages of FBI and other law enforcement reports.”
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Reported in an editorial, the Las Vegas Review-Journal attorney Maggie McLetchie stated after Judge Foley’s ruling: “It’s our view the public and the newspaper should be able to evaluate a law enforcement investigation including assessing why the government may have gone more lightly on some people. Given the issues…within the U.S. attorney’s office, it’s in the public’s interest to probe what occurred.”
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Certificates of Merit: Is Your Texas Certificate Sufficient?
January 22, 2024 —
Gus Sara - The Subrogation StrategistIn Eric L. Davis Eng’g, Inc. v. Hegemeyer, No. 14-22-00657-CV, 2023 Tex. App. LEXIS 8899, the Court of Appeals of Texas (Court of Appeals) considered whether the plaintiffs’ certificate of merit, in support of their professional malpractice claim against the defendant engineers, adequately set forth the experience and qualifications of the expert who submitted the certificate. The defendants filed a motion to dismiss, alleging that the certificate of merit was inadequate because it failed to establish that the expert practiced in the same specific areas as the defendants in relation to the work at issue. The lower court denied the defendants’ motion. The Court of Appeals affirmed the lower court’s decision, finding that there was sufficient information for the lower court to have reasonably found that the plaintiffs’ expert practiced in the same area as the defendants.
In Hegemeyer, the plaintiffs sued Eric L. Davis Engineering, Inc. (Davis) and Kenneth L. Douglass (Douglass), alleging improper design of their home’s foundation. The plaintiffs retained Davis to design and engineer the home and Douglass prepared the plans for the home. The plans called for the installation of post-tension cables in the home’s foundation. The plaintiffs alleged that the foundation design was improper and brought professional malpractice claims against Davis and Douglass.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
One More Thing Moving From California to Texas: Wildfire Risk
June 19, 2023 —
Patrick Sisson - BloombergIn early January, Keith Elwell was doing one of the things he does best, swinging chainsaws to help save forests from wildfire. Amid groves of junipers and white oak trees, Elwell led a team of a half-dozen volunteers, clearing brush and dead limbs in Twin Springs Preserve in Williamson County, Texas, a 170-acre county preserve a 40-minute drive north of downtown Austin.
Set on the northeastern edge of Hill Country, a rolling, rocky landscape of natural springs and wild grasses, it’s also adjacent to Georgetown, the fastest-growing city in the United States according to US Census Bureau data. Once a small farming town, it’s now an Austin suburb of more than 75,000 people with 60 subdivisions under construction.
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Patrick Sisson, Bloomberg
It’s a COVID-19 Pandemic; It’s Everywhere – New Cal. Bill to Make Insurers Prove Otherwise
August 17, 2020 —
Scott P. DeVries & Andrea DeField - Hunton Andrews KurthOn June 29, in a development that may fundamentally change the landscape for California businesses which have sustained COVID-19 related business interruption loss, two California legislators amended pending legislation to address several of the most hotly contested issues regarding insurance recovery for these devastating losses.
The bill, Assembly Bill 1552, focuses on All-Risk property insurance policies. As amended, it would create a “rebuttable presumption” that COVID-19 was present on and caused physical damage to property which was the direct cause of business interruption. A similar rebuttable presumption would apply to orders of civil authority coverage and to ingress/egress coverage. The bill would further prohibit COVID-19 from being construed as a pollutant or contaminant for purposes of any policy exclusion unless the exclusion specifically referred to viruses. The bill would apply to any All-Risk policy in effect on or after March 4, 2020 and is written to satisfy the standards for an “urgency” statute, taking effect immediately upon being signed into law.
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Scott P. DeVries , Hunton Andrews Kurth and
Andrea DeField, Hunton Andrews Kurth
Mr. DeVries may be contacted at sdevries@HuntonAK.com
Ms. DeField may be contacted at adefield@HuntonAK.com
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Fort Lauderdale Partner Secures Defense Verdict for Engineering Firm in High-Stakes Negligence Case
June 10, 2024 —
Lewis Brisbois NewsroomFort Lauderdale, Fla. (June 3, 2024) - Fort Lauderdale Managing Partner Cheryl Wilke recently secured a defense verdict for civil engineering firm Gulfstream Design Group and its owner, Matthew Lahti, in a high-stakes professional negligence case in which the plaintiff sought more than $20 million. The verdict by a six-person jury in St. Augustine followed a nine-day trial.
The case involved a 100-acre tract of land in St. Johns County, Florida, owned by the plaintiff, Cynthia Taylor. The land was zoned for rural farming, and she wished to sell the property for development. She entered into a contract with Southeast Georgia Acquisitions (“SGA”) to sell the property with the goal of creating a 200-home subdivision. SGA hired Doug Burnett as land use counsel and our client, Gulfstream Design Group, as the civil engineer to design the project.
In St. Johns County, only a property owner can submit a Planned Unit Development Plan (“PUD”) for the purpose of rezoning. In this case, Burnett and Gulfstream created text and a proposed map for the PUD and submitted it for approval. The PUD was approved first at the staff level, then by planning and zoning and then by the County Commission. All the services were provided prior to closing with PUD approval, a condition of sale.
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Lewis Brisbois
Tidal Lagoon Plans Marine Project to Power Every Home in Wales
March 05, 2015 —
Louise Downing – Bloomberg(Bloomberg) -- Tidal Lagoon Power Ltd., a U.K. marine-energy developer, is planning its second project, a 2.8-gigawatt power plant that will use the tides to generate enough electricity for every home in Wales.
The company submitted an environmental impact assessment for the marine power plant that would use 90 turbines installed between Cardiff and Newport, according to an e-mailed statement Monday. The closely held company expects to submit a full planning application in 2017 and the project may go into operation in 2022.
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Louise Downing, BloombergMs. Downing may be contacted at
ldowning4@bloomberg.net