America’s Infrastructure Gets a C-. It’s an Improvement Though
April 05, 2021 —
Garret Murai - California Construction Law BlogEvery four years the American Society of Civil Engineers (ASCE) issues a report card assigning a letter grade to the nation’s infrastructure. ASCE issued their 2021 Infrastructure Report Card earlier this month.
Our country’s grade in 2021? A disappointing C-.
It’s an improvement though. When ASCE issued their 2017 Infrastructure Report Card we didn’t even pass the class with a grade of D+.
In short, there’s room for improvement. A lot of room for improvement.
C- is just the cumulative grade however. ASCE’s Report Card is divided into industry segments with grades assigned to each segment. Individual grades for some, but not all, of the segments include the following:
- Aviation: The nation’s airports received a grade of D+. According to the Report Card, terminal, gate and ramp availability are not meeting the needs of a growing passenger base which has increased from 964.7 million to 1.2 billion per year and a has a 10-year shortfall of $111 billion.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
You Can Take This Job and Shove It!
June 10, 2015 —
Garret Murai – California Construction Law BlogThat’s it.
You’ve had it.
They can take their job and shove it!
But can you really tell an owner on a construction project to proverbially shove it where the sun don’t shine?
Well, far be it for me to tread on your First Amendment Rights or stick my nose into the subsequently brought public disturbance charges against you. But can you legally tell an owner to shove it, and that you’re no longer going to perform work on their [insert expletive] project? Well, indeed you can, in limited circumstances, and it’s called a “Stop Work Notice.”
Note: A stop work notice is different from a stop payment notice.
What is a stop work notice?
A stop work notice is a notice given by a direct contractor to a project owner that the contractor will stop work if an amount owed to the contract is not paid within 10 days after notice is given.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Jury Awards 20 Million Verdict Against Bishop Abbey Homes
April 08, 2014 —
Beverley BevenFlorez-CDJ STAFFA Rockwall County, Texas “jury has awarded a $20.8 million verdict against a Dallas homebuilder for performing substandard work on a local family's home and refusing to accept responsibility,” according to a press release published in The Wall Street Journal.
The lawsuit alleged that “the defendants were aware that the site of the Hales' future Highpoint Lake Estates home had significant foundation defects before construction began. The Hales said Mr. Halsey later promised that his company would take responsibility by fixing the structural defects that arose after construction, but he reneged and refused to repair the problems.”
The award included “damages for the cost of repairs, lost value and additional penalties based on Mr. Halsey's actions and the defendants' ‘grossly negligent’ conduct, including violations of the Texas Deceptive Trade Practices Act. The jury award includes attorneys' fees for the Hales' legal team.”
Read the court decisionRead the full story...Reprinted courtesy of
Washington State Supreme Court Issues Landmark Decision on Spearin Doctrine
September 29, 2021 —
Cameron Sheldon - Ahlers Cressman & Sleight PLLCThe Washington State Supreme Court’s recent decision in Lake Hills Invs., LLC v. Rushforth Constr. Co. No. 99119-7, slip op. at 1 (Wash. Sept. 2, 2021) marks the first time in over 50 years that it has ruled on the Spearin doctrine. The Court’s opinion clarified the contractor’s burden when asserting a Spearin defense and affirmed the jury’s verdict in favor of contractor AP Rushforth Construction Company (AP). The decision is a major win for Ahlers Cressman & Sleight PLLC attorneys Scott Sleight, Brett Hill, and Nick Korst, who represented AP throughout its long-running dispute with Lake Hills Investments, LLC (LH), including the two-month jury trial and the appeal. Leonard Feldman of Peterson | Wampold | Rosato | Feldman | Luna and Stephanie Messplay of Van Siclen Stocks & Firkins also represented AP on appeal.
At trial, the owner—Lake Hills Investments, LLC (LH)—asserted it was entitled to $3 million in liquidated damages and $12.3 million for defects it alleged were caused by AP’s deficient workmanship. AP denied responsibility for the delays and most of the defects and requested payment of $5 million. Regarding LH’s defect claims, AP argued as an affirmative defense that the defects were caused by deficiencies in the plans and specifications provided by LH. This affirmative defense was rooted in the Spearin doctrine, which states that when the contractor follows plans and specifications provided by the owner, the contractor is not responsible for defects caused by the plans and specifications.
Read the court decisionRead the full story...Reprinted courtesy of
Cameron Sheldon, Ahlers Cressman & Sleight PLLCMs. Sheldon may be contacted at
cameron.sheldon@acslawyers.com
Cuba: Construction Boom Potential for U.S. Construction Companies and Equipment Manufacturers?
June 30, 2016 —
Sanjo Shatley, Esq. – Florida Construction Law UpdateOn July 20, 2015, diplomatic relations were officially restored between the U.S. and Cuba. Since that date, a number of significant political events have taken place. First, the U.S. reopened its embassy in Cuba on August 14, 2015. Next, on January 26, 2016, offices of the U.S. Departments of the Treasury and Commerce announced new amendments to the Cuban Assets Control Regulations and Export Administration Regulations. These amendments removed “existing restrictions on payment and financing terms for authorized exports and reexports to Cuba of items other than agricultural items or commodities,” and established “a case-by-case licensing policy for exports and reexports of items to meet the needs of the Cuban people, including those made to Cuban state-owned enterprises.”[1] Additionally, these amendments “further facilitate travel to Cuba for authorized purposes by allowing blocked space, code-sharing, and leasing arrangements with Cuban airlines, authorizing additional travel-related and other transactions directly incident to the temporary sojourn of aircraft and vessels, and authorizing additional transactions related to professional meetings and other events, disaster preparedness and response projects, and information and informational materials, including transactions incident to professional media or artist productions in Cuba.”[2] Finally, on March 21, 2016, President Barack Obama was the first sitting U.S. President to visit Cuba since the 1959 revolution, in which Fidel Castro overthrew Fulgencio Batista. This revolution ultimately led to the U.S. severing diplomatic relations in 1961 and President John F. Kennedy imposing a trade embargo between the U.S. and Cuba, which remains in effect today.
Read the court decisionRead the full story...Reprinted courtesy of
Sanjo Shatley, Esq., Cole, Scott & Kissane, P.A.Mr. Shatley may be contacted at
sanjo.shatley@csklegal.com
This Is the Most Remote and Magical Hotel on Earth
May 12, 2016 —
Sarah Hepola – BloombergThere are no signs leading to the Fogo Island Inn. That’s how hard it is to miss the place. Designed by architect Todd Saunders, who grew up in nearby Gander, the building takes its inspiration from the fishing shacks that dot the shoreline, sagging on old wooden stilts, but it was also made with the dimensions of a cruising vessel. Three hundred feet long by 30 feet wide. Like a ship that’s just sailed into harbor.
For decades, the flow of traffic in this community off the Newfoundland coast had moved in one direction: away. Fewer than 2,500 people live on an island four times the size of Manhattan. But the inn, the brainchild of Fogo Island native and tech millionaire Zita Cobb, reversed that trend when it was completed in 2013. Strangers now come from around the world to see the island, whose unspoiled landscape makes it a coveted spot for the under-the-radar traveler.
Read the court decisionRead the full story...Reprinted courtesy of
Sarah Hepola, Bloomberg
Jersey Shore Town Trying Not to Lose the Man vs. Nature Fight on its Eroded Beaches
February 26, 2024 —
Associated Press - BloombergNORTH WILDWOOD, N.J. (AP) — A New Jersey shore town locked in a legal battle with the state over tens of millions of dollars it has spent trying -- mostly in vain -- to hold back the ocean now is more vulnerable than ever.
A recent winter storm destroyed part of the sand dunes in North Wildwood, leaving tiny piles about the size of a child’s sand castle to protect a popular resort town with $2.5 billion worth of private property, and at least that much in government buildings and infrastructure.
New Jersey has
fined the town $12 million for unauthorized beach repairs that it says could worsen erosion, while
the city is suing to recoup the $30 million it has spent trucking sand to the site for over a decade.
Read the court decisionRead the full story...Reprinted courtesy of
Bloomberg
OH Supreme Court Rules Against General Contractor in Construction Defect Coverage Dispute
October 30, 2018 —
Theresa A. Guertin - Saxe Doernberger & Vita, P.C.On October 9, 2018, the Ohio Supreme Court issued a decision in Ohio Northern University v. Charles Construction Services, Inc., Slip Op. 2018-Ohio-4057, finding that a general contractor was not entitled to defense or indemnity from its CGL insurer in a construction defect suit brought by a project owner post-project completion. With this decision, Ohio has solidified its place amongst a diminishing number of states, including Pennsylvania and Kentucky, which hold that there is no coverage for defective construction claims because those losses do not present the level of fortuity required to trigger CGL coverage. This places Ohio amongst the worst in the country on this issue at a time when numerous states have abandoned old precedent and moved towards a policyholder friendly analysis.
Ohio Northern University (“ONU”) hired Charles Construction Services, Inc. (“CCS”) to construct the University Inn and Conference Center, a new hotel and conference center on their campus in Ada, Ohio. CCS purchased CGL insurance from Cincinnati Insurance Company (“CIC”) insuring the project. Following completion of the project, ONU sued CCS alleging defects in the construction of the completed project, including allegations that windows improperly installed by one subcontractor led to damage to walls built by another subcontractor. CIC agreed to defend CCS under a reservation of rights but intervened in the action between ONU and CCS to pursue a declaratory judgment that it had no obligation to defend or indemnify its insured for the alleged losses.
Read the court decisionRead the full story...Reprinted courtesy of
Theresa A. Guertin, Saxe Doernberger & Vita, P.C.Ms. Guertin may be contacted at
tag@sdvlaw.com