Cambridge Massachusetts Building Expert Directory

D&O Insurer Must Cover Mortgage Broker’s $15 Million Settlement of Alleged False Claims Act Violations

November 15, 2022 — Michael S. Levine, Geoffrey B. Fehling & Matthew J. Revis - Hunton Insurance Recovery Blog
A Delaware court recently granted summary judgment to a mortgage broker targeted in a federal government investigation for alleged False Claims Act violations, holding that the company’s directors and officers liability (“D&O”) insurer was required to indemnify more than $15 million in settlement costs with the U.S. Department of Justice. Guaranteed Rate, Inc. v. ACE American Insurance Company, No. N20C-04-268 MMJ CCLD (Del. Super. Ct. Sept. 6, 2022). We previously reported on the policyholder’s earlier victory in this case, in which the court held that a Civil Investigative Demand (“CID”) from federal authorities triggered the insurer’s obligation to pay defense costs under the D&O policy. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth, Geoffrey B. Fehling, Hunton Andrews Kurth and Matthew J. Revis, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Fehling may be contacted at gfehling@HuntonAK.com Mr. Revis may be contacted at mrevis@HuntonAK.com Read the court decision
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Grupo Mexico Spill Sparks Public Scrutiny of $150 Million Mop-Up

September 17, 2014 — Nacha Cattan – Bloomberg
Mexico is sending federal officials to Sonora state to oversee Grupo Mexico SAB (GMEXICOB)’s $150 million cleanup of a copper mine spill that the government says contaminated the water supplies of at least 24,000 people. The special commission of environmental and agriculture ministry officials will monitor the company’s pledge to clean Mexico’s worst mining spill, which occurred Aug. 6 in the northern state that borders Arizona. Grupo Mexico said last week it would create a $150 million trust after its Buenavista del Cobre operation dumped 11 million gallons of copper sulfate solution into two Sonora rivers. Industrias Bachoco SAB de CV and Ford Motor Co. (F) operate plants in Hermosillo, south of the contaminated waterways. Read the court decision
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Reprinted courtesy of Nacha Cattan, Bloomberg
Ms. Cattan may be contacted at ncattan@bloomberg.net

Hudson Tunnel Plan Shows Sign of Life as U.S. Speeds Review

April 19, 2021 — Elise Young - Bloomberg
The U.S. Transportation Department has committed to finishing an environmental review for a new Hudson River rail tunnel, after a three-year delay helped prevent the groundbreaking of one of the nation’s most urgently needed infrastructure projects. The evaluation of the new commuter link between New Jersey and New York City will be finished by May 28, according to an update to the federal government’s online permitting dashboard. If the study is cleared, the $11.6 billion Gateway project could potentially qualify for partial federal funding. Transportation Secretary Pete Buttigieg last month told lawmakers that the tunnel is among President Joe Biden’s priorities. Biden on Wednesday introduced a $2 trillion infrastructure plan, fed by a tax increase on the wealthy, that he called a “once-in-a-generation investment in America.” The proposal calls for rebuilt bridges and highways, a shift to cleaner energy and boosts for mass transit. Read the court decision
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Reprinted courtesy of Elise Young, Bloomberg

Quick Note: Be Careful with Pay if Paid Clauses (Both Subcontractors and General Contractors)

June 17, 2015 — Christopher G. Hill – Construction Law Musings
Aside from waiver of lien rights (something that will be illegal in Virginia after July 1, 2015), the most troublesome contractual impediment to payment for a subcontractor or supplier on a project often is the “pay if paid” clause. As a general rule, in Virginia, these clauses where drafted in the proper fashion, are enforceable. As I have said many times, in Virginia freedom of contract almost always wins out. While this is the case, I emphasize that such clauses must be very explicit and specific. Furthermore, and in something that should be obvious, these clauses are generally limited by the Courts of Virginia to only be enforceable and to only forgive the need for payment if the upstream contractor on the construction job has not been paid for the work that the sub claiming non payment has done. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Judge Dismisses Suit to Block Construction of Obama Center

April 04, 2022 — The Associated Press - Bloomberg
Chicago (AP) -- A federal judge has dismissed a lawsuit that sought to prevent the construction of the Obama Presidential Center in a park on Chicago's South Side. In a ruling issued Tuesday, U.S. District Judge Robert Blakey rejected the contention by the group Protect Our Parks that the city's park district improperly gave control of the land in Jackson Park to former President Barack Obama's foundation in violation of the public trust. The city, Blakey wrote, “did not abdicate control or ownership of the OPC site to the Obama Foundation.” Citing the state law that governs museums, the judge wrote that the Obama Center will ”confer a public benefit because they ’serve valuable public purposes, including ... furthering human knowledge and understanding, educating and inspiring the public, and expanding recreational and cultural resources and opportunities.” Read the court decision
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Reprinted courtesy of Bloomberg

Five Actions Construction and Energy Risk Managers Can Take to Avoid the Catastrophic Consequences of a Cyber Attack

June 27, 2022 — Eve-Lynn Gisonni - Saxe Doernberger & Vita
With the ever-increasing usage of technology in the construction and energy industries, risks to business operations have also increased. Property developers and construction contractors rely on electronic data and communications more than ever to streamline projects, ensure efficient and timely supply chain delivery, and facilitate immediate communications between parties. However, with this dependence upon technology comes the heightened risk of cyber criminals frustrating construction operations and driving up costs. Similarly, as the energy sector has grown more dependent upon online networks for deliverables, vulnerabilities have become more pronounced in trades dependent upon electrical grids. When an entire electricity network must be taken offline in defense of a cyber-attack, this impacts countless industries such as hospitals and health care operations, manufacturers and suppliers, and local and interstate traffic systems. Read the court decision
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Reprinted courtesy of Eve-Lynn Gisonni, Saxe Doernberger & Vita
Mr. Gisonni may be contacted at EGisonni@sdvlaw.com

ASCE Statement on Senate Passage of the Water Resources Development Act of 2024

August 12, 2024 — Marsia Geldert-Murphey, President of the American Society of Civil Engineers
WASHINGTON — The American Society of Civil Engineers (ASCE) commends the Senate for passing S. 4367, the Thomas R. Carper Water Resources Development Act (WRDA) of 2024. Both the House and Senate versions of WRDA will help improve America's ports and inland waterways, enhance flood risk management and storm risk reduction programs, and prioritize ecosystem restoration. ASCE now urges Congress to swiftly conference and pass a final WRDA bill in the upcoming months. The Senate version of WRDA includes key provisions that will help ensure the ongoing operation of America's inland waterways systems, which received a 'D+' on the 2021 Report Card for America's Infrastructure, including adjustments to the cost share requirements for rehabilitation projects that receive funding the Inland Waterways Trust Fund (IWTF). These changes will ensure the IWTF remains available for future projects to help reduce the backlog of inland waterways projects. This bill also creates a Levee Owners Advisory Board, which has the potential to improve communication between the U.S. Army Corps of Engineers, other federal agencies, and levee owners and operators. Now that the House and Senate have passed their versions of WRDA, we encourage lawmakers to include several provisions included in the House version in their final conference bill. This includes the reauthorization of the National Dam Safety Program through 2028, provisions that reduce restrictions on the amount of funds states can receive in National Dam Safety Program State Assistance Grants; improves access to the High Hazard Potential Dam Rehabilitation Grant Program; and requires the incorporation of low-head dams into the National Inventory of Dams, and an extension of the National Levee Safety program through 2033. ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS Founded in 1852, the American Society of Civil Engineers represents more than 160,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel. Read the court decision
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Navigating Construction Contracts in the Energy Sector – Insights from Sheppard Mullin’s Webinar Series

October 01, 2024 — Cesar Pereira - Sheppard Mullin
Construction contracts in the energy sector involve unique challenges and risks, particularly with respect to bonds and mechanic’s liens. Understanding how to navigate these challenges is key to protecting your projects from disputes with general contractors, subcontractors and suppliers. In our recent webinar, “Construction Contracts: Bond and Mechanic’s Lien Primer for Energy Projects,” I was joined by my Sheppard Mullin colleagues Chris Kolosov and Emily Anderson to discuss navigating common contract pitfalls and negotiation strategies to protect your interests. Here are our key takeaways.

Know Local Mechanic’s Lien Laws: Mechanic’s liens are statutory and vary significantly from state to state. It is critical to understand the local laws and regulations at play in your project’s jurisdiction.

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Reprinted courtesy of Cesar Pereira, Sheppard Mullin
Mr. Pereira may be contacted at cpereira@sheppardmullin.com

CAMBRIDGE MASSACHUSETTS BUILDING EXPERT DIRECTORY AND CAPABILITIES