Unions Win Prevailing Wage Challenge Brought By Charter Cities: Next Stop The Supreme Court?
April 06, 2016 —
Steven M. Cvitanovic & Sarah A. Marsey – Haight Brown & Bonesteel LLPIn City Of El Centro v. David Lanier (State Building And Construction Trades Council Of California, AFL-CIO), the 4th appellate district upheld by a 2-1 majority the constitutionality of Labor Code section 1782, which prohibits a charter city from receiving or using state funding or financial assistance for a public construction project if the city has a charter provision or ordinance that authorizes a contractor to not comply with the state prevailing wage laws.
As we wrote on this topic back in 2012 (See alert here), charter cities are governed by a municipal constitution and may make and enforce its own ordinances and regulations with respect to municipal affairs (i.e., the ‘home rule’ doctrine), as opposed to general law cities, which must comply with the state laws such as the Public Wage Rate Act (requiring municipalities to pay prevailing wages).
The California Supreme Court previously held in State Building and Construction Trade Council of California, AFL-CIO v. City of Vista that the ‘home rule’ rule permits charter cities not to pay prevailing wages to its contract workers on locally funded public works because such determination is a municipal affair and not a statewide concern.
Reprinted courtesy of
Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and
Sarah A. Marsey, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com
Ms. Marsey may be contacted at smarsey@hbblaw.com
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Blockbuster Breakwater: Alternative Construction Method Put to the Test in Tampa Bay
August 14, 2023 —
Scott Judy - Engineering News-RecordOn June 7, 2023, Tampa Bay news reporters trekked to the Sunshine Skyway bridge for a Florida Dept. of Transportation press conference that would explain the mystery behind the hundreds of curiously shaped concrete structures lining nearly the entire length of the span’s mile-plus-long south fishing pier access road.
Reprinted courtesy of
Scott Judy, Engineering News-Record
Mr. Judy may be contacted at judys@enr.com
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Benefits and Pitfalls of Partnerships Between Companies
December 21, 2016 —
Aarni Heiskanen – AEC BusinessTo bring innovations to the market, companies almost always need partnerships. Partnerships can offer scalability, productivity, and open up new markets. However, partnerships are not easy to establish and manage.
The benefits of partnering
Construction companies have always done joint ventures. The reason has been to simply be able to bid for and deliver a project that would be too big for one company at that specific moment. Partnering allows you to become larger than you are and to get work that would otherwise be out of your reach. It also lets you spread the risk in a demanding project among the members.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aarni@aepartners.fi
MTA Implements Revised Contractors Debarment Regulations
July 06, 2020 —
Steven M. Charney, Gregory H. Chertoff & Paul Monte - Peckar & Abramson, P.C.On June 3, 2020, the Metropolitan Transit Authority (“MTA”) published and implemented revised regulations pertaining to the debarment of contractors. The revised regulations address many of the deep concerns raised by the contracting community.
Under relevant administrative procedure, the MTA publication of the revised regulations starts a 45 day notice period before the regulations can be adopted as final.
The prior regulations essentially required that debarment occur upon a purely formulaic calculation establishing that a contractor: 1) was more than 10% late, or 2) had submitted invalid claims that exceeded the adjusted contract price by a measure of 10%.
The revised regulations represent improvements over the prior regulations.
Critically, the revised regulations address the primary concern raised by the contracting community, that being the mandate of purely formulaic debarment. Instead, the revised regulations establish a process that includes greater flexibility and discretion before debarment may ensue.
Reprinted courtesy of Peckar & Abramson, P.C. attorneys
Steven M. Charney,
Gregory H. Chertoff and
Paul Monte
Mr. Charney may be contacted at scharney@pecklaw.com
Mr. Chertoff may be contacted at gchertoff@pecklaw.com
Mr. Monte may be contacted at pmonte@pecklaw.com
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Replevin Actions: What You Should Know
November 08, 2021 —
Craig H. O'Neill - White and Williams LLPA contractor client of White and Williams recently found itself in a prickly situation. They had default terminated a subcontractor on a major commercial project and withheld payment to that subcontractor on an outstanding invoice as permitted under the terms of the subcontract until the project was completed. Clearly irate over being terminated, the subcontractor walked-off of the project with thousands of dollars’ worth of project materials and equipment that had been paid for by the owner. While on some projects this may amount to nothing more than an annoyance or inconvenience, in this case it was a significant problem because some of the wrongfully removed materials were custom manufactured overseas and not easily replaceable. The client therefore needed to take immediate action to retrieve the stolen materials so that the project would not be delayed. Specifically, it needed to file a replevin action against the subcontractor.
A replevin action is a little known but powerful area of the law. In its simplest terms, replevin is a procedure whereby seized goods may be provisionally restored to their owner pending the outcome of an action to determine the rights of the parties concerned. The requirements of a replevin action differ by jurisdiction. For example, in Pennsylvania, the Rules of Civil Procedure devote an entire section to replevin actions and spell out in precise detail the steps that must be taken. While you should be sure to strictly comply with the rules in your jurisdiction, here are a few general points to keep in mind:
- Where to File: A replevin action is typically commenced by filing a complaint in the appropriate jurisdiction. Generally speaking, it is best to file the action in the jurisdiction where the improperly seized materials are being held. If that location is unknown, you can also typically file the action in the jurisdiction where the project is located.
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Craig H. O'Neill, White and Williams LLPMr. O'Neill may be contacted at
oneillc@whiteandwilliams.com
Charles Carter v. Pulte Home Corporation
October 12, 2020 —
Michael Velladao - Lewis BrisboisIn Carter v. Pulte Home Corp., __Cal.App.5th__(July 23, 2020), the California Court of Appeal affirmed the entry of judgment in favor of subcontractors in connection with a Complaint for Intervention based on equitable subrogation filed by Travelers Property Casualty Company of America (“Travelers”) seeking to recover defense costs incurred in defending Pulte Home Corporation (“Pulte”) in an underlying construction defect lawsuit. The parties’ dispute arose out of Travelers’ defense of Pulte as an additional insured under policies issued to four subcontractors involved in the underlying construction defect lawsuit. Several subcontractors involved in the underlying construction defect lawsuit refused to defend Pulte based on the indemnity clauses in their subcontracts. Such clauses promised to indemnify Pulte as follows:
“all liability, claims, judgments, suits, or demands for damages to persons or property arising out of, resulting from, or relating to Contractor’s performance of work under the Agreement (“Claims”) unless such Claims have been specifically determined by the trier of fact to be the sole negligence of Pulte. . . .”
Pulte eventually settled the construction defect lawsuit and its claims against all of the subcontractors. Travelers ultimately paid $320,491.82 for Pulte’s defense and recovered $164,400 from some of the subcontractors. Travelers’ intervention in the underlying lawsuit was intended to recover the remaining $156,091.82 from the subcontractors that refused to indemnify Pulte for the defense of the construction defect lawsuit. In the underlying trial, Travelers argued that the subcontractors were obligated to pay defense costs on a joint and several basis (minus what Travelers had already recovered). The trial court did not agree and held that Travelers was not entitled to equitable subrogation for the remaining defense costs.
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Michael Velladao, Lewis BrisboisMr. Velladao may be contacted at
Michael.Velladao@lewisbrisbois.com
Cross-Motions for Partial Judgment on the Pleadings for COVID-19 Claim Denied
May 24, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe court denied both parties' motions for partial judgment on the pleadings seeking clarification of the policy's contamination exclusion. Thor Equities, LLC v. Factory Mut. Ins. Co., 2021 U.S. Dist. LEXIS 62967 (S.D. N.Y. March 31, 2021).
Thor was a commercial landlord, renting properties across the country to hundreds of tenants, for use in a variety of businesses, including office space, retail stores, restaurants, and bars. When state governments began shutting down businesses and issuing stay-at-home orders in March 2020, many of Thor's tenants had to close shop and sought abatements or other accommodations. Thor alleged it suffered significant business interruption as a result of the pandemic.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Lewis Brisbois Successfully Concludes Privacy Dispute for Comedian Kathy Griffin Following Calif. Supreme Court Denial of Review
November 19, 2021 —
Lewis BrisboisLos Angeles, Calif. (October 18, 2021) - On October 13, 2021, the California Supreme Court declined to review a published, unanimous opinion of the Court of Appeal in favor of comedian Kathy Griffin and her husband, Randy Bick. The plaintiff-appellants claimed Ms. Griffin and Mr. Bick violated their privacy rights by using home security cameras to record “every move and every communication” in the plaintiffs’ private back yard.
Ms. Griffin and Mr. Bick maintained that the lawsuit was filed by their neighbors in retaliation after the husband directed what the Court of Appeal described as “an expletive-laden rant” at Ms. Griffin and Mr. Bick. The neighbor's rant was recorded by security cameras and reported in the media, as well as publicized during Ms. Griffin’s performances at the Dolby Theater.
In the trial court, Ms. Griffin and Mr. Bick successfully moved for summary adjudication of the plaintiffs’ privacy causes of action. In July 2021, the
Court of Appeal affirmed, calling the appellants’ claims “hyperbole.”
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Lewis Brisbois