Tariffs, Supply Snarls Spur Search for Factories Closer to U.S.
February 21, 2022 —
Laura Curtis - BloombergSmall businesses looking for a factory that can make some stylish orthopedic shoes, chairs or construction materials may have an easier time finding a closer-to-home alternative to waiting for the supply-chain snarl in the Pacific Ocean to work itself out.
Zipfox, an online platform that links businesses up with factories in Mexico, launched this week, enabling near-shoring of production and the chance to get goods into the U.S. more quickly than if businesses were sourcing from manufacturing hubs in China.
“People are feeling the pain from sourcing from China right now but they aren’t really aware of the manufacturing capability and capacity that Mexico already has,” Zipfox founder Raine Mahdi said Tuesday.
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Laura Curtis, Bloomberg
Traub Lieberman Partner Michael Logan and Associate Christian Romaguera Obtain Voluntary Dismissal in Favor of Construction Company Under the Vertical Immunity Doctrine
June 21, 2024 —
Christian Romaguera - Traub LiebermanIn a lawsuit filed in Orange County, Traub Lieberman Partner Michael Logan and Associate Christian Romaguera achieved a voluntary dismissal in favor of their Client, a construction company. The Plaintiff claimed that he was seriously and permanently injured, and demanded $1,000,000.00. The Plaintiff turned out to be an employee of our Client’s subcontractor, and the Plaintiff received worker’s compensation benefits from his employer, the subcontractor. Under Florida Statute § 440.11(1), “The liability of an employer . . . shall be exclusive and in place of all other liability, including vicarious liability, of such employer to any third-party tortfeasor and to the employee . . .” When a subcontractor provides workers’ compensation benefits to its injured employee, workers’ compensation immunity would not only apply to the subcontractor but to the general contractor as well. This is also known as “vertical immunity.” The Traub Lieberman team filed a detailed motion and memorandum of law to argue its case, and the Plaintiff voluntarily withdrew the claim against the Client just before that motion was set to be argued before the Judge.
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Christian Romaguera, Traub LiebermanMr. Romaguera may be contacted at
cromaguera@tlsslaw.com
The Murky Waters Between "Good Faith" and "Bad Faith"
September 30, 2019 —
Theresa A. Guertin - Saxe Doernberger & VitaIn honor of Shark Week, that annual television-event where we eagerly flip on the Discovery Channel to get our fix of these magnificent (and terrifying!) creatures, I was inspired to write about the “predatory” practices we’ve encountered recently in our construction insurance practice. The more sophisticated the business and risk management department is, the more likely they have a sophisticated insurer writing their coverage. Although peaceful coexistence is possible, that doesn’t mean that insurers won’t use every advantage available to them – compared to even large corporate insureds, insurance companies are the apex predators of the insurance industry.
In order to safeguard policyholders’ interests, most states have developed a body of law (some statutory, some based on judicial decisions) requiring insurers to act in good faith when dealing with their insureds. This is typically embodied as a requirement that the insurer act “fairly and reasonably” in processing, investigating, and handling claims. If the insurer does not meet this standard, insureds may be entitled to damages above and beyond that which they could otherwise recover for breach of contract.
Proving that an insurer acted in “bad faith,” however, can be like swimming against the riptide. Most states hold that bad faith requires more than just a difference of opinion between insured and insurer over the available coverage – the policyholder must show that the insurer acted “wantonly” or “maliciously,” or, in less stringent jurisdictions, that the insurer was “unreasonable.”
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Theresa A. Guertin, Saxe Doernberger & VitaMs. Guertin may be contacted at
tag@sdvlaw.com
Ahlers Cressman & Sleight Nationally Ranked as a 2020 “Best Law Firm” by U.S. News – Best Lawyers®
December 22, 2019 —
Ahlers Cressman & SleightAhlers Cressman & Sleight is pleased to be recognized by U.S. News – Best Lawyers ® as one of the top construction firms in the United States. The firm received metropolitan Tier 1 rankings in both Construction Law and Construction Litigation. In the national rankings, ACS one of just five Washington firms that was ranked for Construction Law (Tier 3) and one of six that received national rankings for Litigation – Construction (Tier 2). Only one other firm in Washington received a Tier 2 national ranking in Construction Litigation.
The U.S. News – Best Lawyers® “Best Law Firms” rankings are based on a rigorous evaluation process that includes the collection of client and lawyer evaluations, peer review from leading attorneys in the field, and review of additional information provided by law firms as part of the formal submission process.
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Ahlers Cressman & Sleight PLLC
Obama Asks for $302 Billion to Fix Bridges and Potholes
May 01, 2014 —
Laura Litvan – BloombergThe Obama administration sent to Congress legislation that would provide $302 billion for road and transit projects over four years, a measure needed to keep the U.S. Highway Trust Fund from running dry.
The Transportation Department proposal would boost the highway fund $87 billion above current levels to generate more money for deficient bridges and aging transit systems. The bill also addresses the General Motors Co. (GM) ignition-switch recall by raising almost 10-fold to $300 million the maximum fine on carmakers that fail to quickly recall deficient vehicles.
Congressional transportation leaders in both parties have said they want to pursue six-year measures, though there is little consensus on how to finance the proposals. The Transportation Department has said the Highway Trust Fund -- which relies on gasoline and diesel-fuel taxes -- may not be able to meet its obligations as soon as this year. That risks leading states to slow or halt work in a recovering economy.
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Laura Litvan, BloombergMs. Litvan may be contacted at
llitvan@bloomberg.net
Preliminary Notice Is More Important Than Ever During COVID-19
June 01, 2020 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday here at Construction Law Musings, we welcome Justin Gitelman. Justin is the Content Coordinator at Levelset, where over 500,000 contractors and suppliers connect on a cloud-based platform to make payment processes stress-free. Levelset helps contractors and suppliers get payment under control, and sees a world where no one loses a night’s sleep over payment.
As the construction industry continues to adjust to the coronavirus and an uncertain future, contractors are struggling to get paid. During the COVID-19 pandemic, construction businesses across Virginia need to do everything they can to protect their payments, and get paid faster. One simple action that can help fight payment delays: sending preliminary notice on every job.
Subcontractors and suppliers should send preliminary notices out to the GC, project owner, and/or lender at the start of every single project. These tools allow contractors to make themselves visible on crowded job sites, helping contractors get paid more quickly, and, in some cases, securing their right to file a mechanics lien or bond claim.
Preliminary Notices in Construction
The purpose of a preliminary notice is to allow each member of a construction project to know who you are and what work you’ll be performing. With coronavirus in mind, contractors can use preliminary notices to remind the hiring party of their payment expectations. When you submit a preliminary notice on every project, you’ll have legal protection in your corner while also giving yourself a greater opportunity to get paid.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrissghill@constructionlawva.com
Brief Discussion of Enforceability of Anti-Indemnity Statutes in California
September 10, 2014 —
William M. Kaufman – Construction Lawyers BlogCalifornia Civil Code Section 2782 has been amended numerous times over the last several years. Essentially, Anti-indemnity statutes may not be fully effective for contracts entered into before January 1, 2009. Some developers and general contractors attempted to comply with the new law, and changed the indemnity provisions of their contracts post January 1, 2006. The time bracket, or zone of danger if you will, is between 1/1/06 and 1/1/09—during those three years California Civil Code §2782 was amended several times. After 1/1/09 Type I indemnity is gone in a residential construction context.
The 2005 amendment to Civil Code §2782 rendered residential construction contracts entered into after 1/1/06 containing a Type I indemnity provision in favor of builders unenforceable;
The 2007 amendment added contractors not affiliated with the builder to the list of contracting parties who could not take advantage of a Type I indemnity provision;
However, the 2008 amendment changed the effective date to 1/1/09, dropped any mention of 2006, and added GCs, other subs, their agents and servants, etc., to the list of possible contracting parties who could not take advantage of a Type I indemnity provision[.]
Reprinted courtesy of
William M. Kaufman, Lockhart Park LP
Mr. Kaufman may be contacted at wkaufman@lockhartpark.com, and you may visit the firm's website at www.lockhartpark.com
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Boilerplate Contract Language on Permits could cause Problems for Contractors
March 19, 2014 —
Beverley BevenFlorez-CDJ STAFFCraig Martin on his blog Construction Contractor Advisor discusses the potential problems for a contractor that a “boilerplate contract” could cause: “A recent case revealed the problems a contractor had with permits when the contractor’s estimate contemplated an easy permitting process and compliance, but in actuality it was much, much more difficult.”
Martin cites the case Bell/Heery v. United States, where a contractor discovered that the permit process would be much more time-consuming and expensive than originally planned. When Bell/Heery asked for additional funds to cover the additional costs, the “contracting officer rejected the request, finding that Bell/Heery had assumed the risk of the permitting process and it was liable for any costs associated with the permitting process and construction methods required by the permitting process.”
“Bell/Heery appealed to the Court of Claims,” but lost the battle. The contractor had to absorb $7 million in costs to comply with the required permits.
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