Sept. 11 Victims Rejected by U.S. High Court on Lawsuit
July 01, 2014 —
Greg Stohr – BloombergThe U.S. Supreme Court turned away an appeal by thousands of Sept. 11 attack victims who sought to sue Middle Eastern companies and people for allegedly providing crucial support to al-Qaeda.
The victims sought to revive their claims against relatives of Osama bin Laden, Saudi Arabia’s state-owned National Commercial Bank and Saudi Binladen Group, a construction company controlled by the former al-Qaeda leader’s family.
A federal appeals court threw out those claims in 2013, saying the victims didn’t allege a close enough connection between the defendants’ activities and the attacks. The appellate panel also said some defendants lacked sufficient ties to the U.S. to bring them within the jurisdiction of American courts.
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Greg Stohr, BloombergMr. Stohr may be contacted at
gstohr@bloomberg.net
Fire Fears After Grenfell Disaster Set Back Wood Building in UK
May 29, 2023 —
Olivia Rudgard - BloombergThis article is part of the Bloomberg Green series Timber Town, which looks at the global rise of timber as a low-carbon building material.
To get fire department approval for their six-story London office project made of strong engineered wood known as
mass timber, Theo Michell and Richard Walker had to build a full-scale section of it in the UK, ship it to Poland and attempt to set it on fire.
The mockup was set alight “with enough material that replicates the fire load that you get from furniture and carpets and desks, and all the rest of it, and you see how that structure performs,” says Michell.
“It was cool,” adds Walker. “It looked amazing.”
Their building, called Paradise, passed the fire test and is under construction, though not without a significant drag on their budget and time.
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Olivia Rudgard, Bloomberg
Where Standing, Mechanic’s Liens, and Bankruptcy Collide
September 17, 2018 —
Christopher G. Hill - Construction Law MusingsI have spoken often about mechanic’s liens and the implications of such liens as they relate to bankruptcy here at Construction Law Musings. A recent case out of Loudoun County, Virginia added another wrinkle to this discussion, that of standing and what happens on conveyance of the property and what interest in the property is required to allow a party to seek removal of the mechanic’s lien.
In Leesburg Bldg. P’rs LLC v. Mike Berger Inc. the Loudoun County Circuit Court faced the following scenario. Leesburg Building Partners developed certain condominiums and hired Lansdowne Construction to perform the work as general contractor and paid Landsdowne in full for the work. Lansdowne hired Mike Berger, Inc. (“MBI”) to perform concrete work for the project. Landsdowne didn’t pay MBI approximately $48,000.00 and subsequently filed for bankruptcy. MBI, seeking to protect it’s interest in the money it was owed, recorded a mechanic’s lien on the property. Leesburg Building Partners filed an action to declare the lien invalid and have it removed from the property based upon its “payment defense” and the fact that it had paid Landsdowne in full. A relatively simple scenario and one that has been discussed before here at Musings. Not so fast. . .
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Former SNC-Lavalin CEO Now Set for Trial in Bribe Case
December 11, 2018 —
Debra K. Rubin - Engineering News-RecordPierre Duhaime, the former CEO of Canadian design-build giant SNC-Lavalin—who resigned from the firm in 2012 in the wake of a contracting bribery scandal in which he was arrested for his alleged role—is now set for a February trial start in Quebec Superior Court. The case relates to payoffs on one project, a multibillion-dollar Montreal hospital on which the firm led the public-private construction consortium.
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Debra K. Rubin, ENRMs. Rubin may be contacted at
rubind@enr.com
Force Majeure Recommendations
August 15, 2022 —
Denise Motta - Gordon & Rees Construction Law BlogThis Bulletin provides guidance to contractors, subcontractors, suppliers, and others to ensure compliance with contractual change order requirements in the event work on a construction project is impacted by a force majeure event.
Contract Protection Tips:
A force majeure event is defined as an unforeseeable circumstance that prevents someone from fulfilling a contract. Because many events arising on a construction project could be arguably unforeseen, it is imperative that the contract contain a Force Majeure provision. Examine all contracts for the applicable Force Majeure provision. Look for a clause like this:
§ 8.3.3 Any failure or omission by Owner or Contractor in performance of its obligation shall not be deemed a breach or create any liability for damages or other relief (other than additional time) if it arises from any cause beyond the reasonable control of such party, including, without limitation, acts of God, floods, fire, explosions, storms, earthquakes, acts of public enemy, war, terrorism, rebellion, insurrection, riot, sabotage, invasion, epidemic, quarantine, strikes, lockouts, labor disputes or other industrial disturbances, or any order or action by any governmental agency, or causes of similar nature.
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Denise Motta, Gordon Rees Scully Mansukhani, LLPMs. Motta may be contacted at
dmotta@grsm.com
Don’t Kick the Claim Until the End of the Project: Timely Give Notice and Preserve Your Claims on Construction Projects
December 10, 2015 —
Christopher G. Hill – Construction Law MusingsFor this week’s Guest Post Friday, we welcome
Tara L. Chadbourn. Tara is an attorney with
ReavesColey PLLC in Chesapeake, VA, where she concentrates her practice on construction law, litigation and commercial litigation. Tara counsels owners, contractors, subcontractors and materials suppliers in various government and commercial construction matters. Tara can be reached at tara.chadbourn@reavescoley.com.
You may have experienced and have certainly heard of the scenario in which a contractor waits to address a claim as part of project closeout, only to realize the applicable deadline has already passed. While there may have been discussions about claims during the course of the project, contractors cannot rely upon oral conversations about outstanding claims. Instead, contractors must be vigilant in satisfying notice requirements and preserving claims. While entitlement must still be proven, a contractor’s chances of recovery increase greatly if the contractor abides by notice requirements and consciously preserves claims in the following ways.
Contractors Must Acquaint Themselves with Contractual Notice Provisions:
Many prime and subcontract agreements contain stringent notice provisions that require the contractor to give notice within a certain time period or else the claim is expressly waived. The deadline for notice is often only a few days after the occurrence giving rise to the claim or the contractor becoming aware of the claim. To avoid waiver, contractors must carefully review their contracts for provisions requiring notice of a claims for adjustment for a variety of situations to include unforeseen site conditions, trade sequencing changes, project delay or scope of work changes.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Insurer Doomed in Delaware by the Sutton Rule
September 12, 2023 —
Katherine Dempsey - The Subrogation StrategistIn Donegal Mut. Ins. Co. v. Thangavel, No. 379, 2022, 2023 Del. LEXIS 227, the Supreme Court of Delaware (Supreme Court) considered whether the Sutton Rule prevented the plaintiff from pursuing subrogation against the defendants. As applied in Delaware, the Sutton Rule explains that landlords and tenants are co-insureds under the landlord’s fire insurance policy unless a tenant’s lease clearly expresses an intent to the contrary. If the Sutton Rule applies, the landlord’s insurer cannot pursue the tenant for the landlord’s damages by way of subrogation. Here, the Supreme Court affirmed the trial court’s decision that the Sutton Rule applied because the lease did not clearly express an intent to hold the tenants liable for the landlord’s damages.
In Thangavel, the plaintiff, Donegal Mutual Insurance Company (Insurer), provided property insurance to Seaford Apartment Ventures, LLC (Landlord) for a residential property in Delaware. Sathiyaselvam Thangavel and Sasikala Muthusamy (Tenants) leased an apartment (the Premises) from Landlord and signed a lease. Insurer alleged that Tenants hit a sprinkler head while flying a drone inside the Premises which caused water to spray from the damaged sprinkler head, resulting in property damage to the Premises. Landlord filed an insurance claim with Insurer, who paid Landlord $77,704.06 to repair the damage. Insurer then sought to recover the repair costs from Tenants via subrogation.
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Katherine Dempsey, White and Williams LLPMs. Dempsey may be contacted at
dempseyk@whiteandwilliams.com
Attention Contractors: U.S. Department of Labor Issues Guidance on Avoiding Discrimination When Using AI in Hiring
November 25, 2024 —
Matthew DeVries - Best Practices Construction LawI recently blogged about the use of
AI and ChatGBT in the construction industry. Today’s guest post by
Alexandra Shulman and
Leah Lively addresses the recent guidance by the USDOL on the issue of using AI when hiring in recruitment, which is applicable to those constructions who use AI in the recruitment process.
AI in hiring: About 80% of U.S. and almost all Fortune 500 companies use AI-powered hiring software. AI may be used to target online advertising for job opportunities and to match candidates to jobs on employment platforms (e.g., LinkedIn, Indeed). AI may also be used to reject or rank applicants using automated resume screening and chatbots based on knockout questions, keyword requirements, or specific qualifications or characteristics.
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Matthew DeVries, BuchalterMr. DeVries may be contacted at
mdevries@buchalter.com