Seattle Washington Building Expert Directory

Where Breach of Contract and Tortious Interference Collide

January 11, 2022 — Christopher G. Hill - Construction Law Musings
Claims for breach of contract are numerous in the construction law world. Without these claims we construction attorneys would have a hard time keeping the doors open. A 2021 case examined a different sort of claim that could arise (though, “spoiler alert” did not in this case) during the course of a construction project. That type of claim is one for tortious interference with business expectancy. In Clark Nexsen, Inc. et. al v. Rebkee, the U. S. District Court for the Eastern District of Virginia gave a great explanation of the law of this type of claim in analyzing the following basic facts: In 2018, Clark Nexsen, Inc. (“Clark”) and MEB General Contractors, Inc. (“MEB”) responded to Henrico County’s (“Henrico”) Request for Proposals (“RFP”) for the design and construction of a sport and convocation center (the “Project”). Henrico initially shortlisted Clark and MEB as a “design-build” team for the Project, but later restarted the search, issuing a second RFP. Clark and MEB submitted a second “design-build” proposal, but Henrico selected Rebkee Co. (“Rebkee”) for certain development aspects of the Project. MEB also submitted proposals to Rebkee, and Rebkee selected MEB as the design-builder for the Project. MEB, at Rebkee’s request, solicited proposals from three design firms and ultimately selected Clark as its design partner. From December 2019 to May 2020, Clark and MEB served as the design-build team to assist Rebkee in developing the Project. In connection therewith, Clark developed proprietary designs, technical drawings, and, with MEB, several cost estimates. In February 2020, MEB submitted a $294,334.50 Pay Application to Rebkee for engineering, design, and Project development work. Rebkee never paid MEB. Henrico paid MEB $50,000.00 as partial payment for MEB’s and Clark’s work. MEB then learned that Rebkee was using Clark’s drawings to solicit design and construction proposals from other companies. On July 23, 2020, Rebkee told MEB that Henrico directed it to cancel the design-build arrangement with MEB and Clark and pursue a different planning method. MEB and Clark sued and Rebkee for, among other claims, tortious interference with a business expectancy. Rebkee moved to dismiss the tortious interference claim. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

“Since You Asked. . .”

October 15, 2024 — Daniel Lund III - Lexology
… you must now pay. So said a California appellate court, affirming the trial court’s decision against a subcontractor suing for unpaid subcontract sums. Instead of being awarded those unpaid amounts, the subcontractor lost the case and was tagged with a $1.55 million attorney’s fees award and $270,000 costs award in favor of the defendants. What went wrong? California law requires a licensed contractor to maintain at all times proper workers’ compensation insurance coverage. The failure to maintain the coverage and have the certificate of coverage on file with the California Contractors State License Board results in “automatic and immediate suspension” of the contractor license. Retroactive reinstatement of the license may occur only if the contractor provides proof of the insurance within 90 days of the effective date of the insurance certificate – unless the contractor can show that failure to have the certificate on file was “due to circumstances beyond the control of the licensee.” Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

Did You Get a Notice of Mechanic’s Lien after Project Completion? Don’t Panic!

October 20, 2016 — Christopher G. Hill – Construction Law Musings
So, you own a piece of property. You decided to have some work done and after what you thought was proper due diligence, you hire a general contractor to build a great office building on the property. Your architect designs the space, you sign the construction contract for a price you find fair and that the bank approves. Construction starts and with a few minor hiccups, a couple of written changes and one minor but slightly annoying change required by the local building inspector, completes relatively on schedule. You write the final check to the general contractor for its final draw and start the process of leasing the space out. All is right with the world as best you can tell. A month later, you walk to your mailbox and lo and behold, you have a certified mailing containing a notice that the plumbing subcontractor has recorded a mechanic’s lien on your property. After counting to 10 to let the various emotions pass, you call the general contractor to see what is going on. You’re told that there is a dispute regarding a change order about which you knew nothing and that the general contractor feels it is in the right and should not have to pay the money represented in the memorandum of lien so it won’t be paying the subcontractor unless and until it is told to do so by a court or an arbitrator. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Quick Note: Do Your Homework When it Comes to Selecting Your Arbitrator

July 26, 2017 — David Adelstein - Florida Construction Legal Updates
Many construction contracts contain arbitration provisions. Instead of litigating a dispute arising out of the contract, the parties will arbitrate the dispute per the arbitration provision. There are advantages to arbitration and certain disputes bode well for arbitration. The key is you want to make sure you select the RIGHT arbitrator or arbitrators. Do your homework regarding the arbitrator list presented to you by, say, the American Arbitration Association. Strike out those on the list that either do not have the requisite experience you need to decide the dispute or you believe they are not going to be impartial. For instance, if you want an arbitrator that you think will specifically follow the letter of the law or the precise terms of a contract, select those on the list that meet this requirement; strike out others that do not. The same philosophy would apply if you want an arbitrator to have specific factual knowledge or a factual understanding regarding a driving issue in the dispute. Do not neglect the homework required to select –or try to select — the arbitrator you believe is the most qualified to understand the issues. Now, why is this important? It is important because you need to arbitrate a dispute with the understanding that the arbitrator’s award (decision) is FINAL. There are no appellate rights. None. Vacating an arbitrator’s award is very challenging and the bases to vacate an award are limited and, most of the time, will NOT apply. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at Dadelstein@gmail.com

Former SNC-Lavalin CEO Now Set for Trial in Bribe Case

December 11, 2018 — Debra K. Rubin - Engineering News-Record
Pierre 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. Read the court decision
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Reprinted courtesy of Debra K. Rubin, ENR
Ms. Rubin may be contacted at rubind@enr.com

The Colorado Supreme Court affirms Woodbridge II’s “Adverse Use” Distinction

December 20, 2021 — Luke Mecklenburg - Snell & Wilmer Real Estate Litigation Blog
Last year, I posted regarding the Colorado Court of Appeals’ decision in Woodbridge II, which concluded that the “adverse use” element for prescriptive easement claims only requires the claimant to “show a nonpermissive or otherwise unauthorized use of property that interfered with the owner’s property interests.” Viento Blanco, LLC, 2020 COA 34 (Woodbridge II), ¶ 2. Thus, Woodbridge II concluded, the claimants acknowledgement or recognition of an owner’s title alone is insufficient to defeat “adverse use” in the prescriptive easement context. Id. That decision was up for review by the Colorado Supreme Court at the time of my prior post. It has now been affirmed, thereby settling an arguable appellate decision split created by Woodbridge II. See Lo Viento Blanco, LLC v. Woodbridge Condo. Ass’n, Inc., 2021 CO 56 (“Woodbridge”). “Like the division below, and for much the same reasons,” the Colorado Supreme Court affirmed in Woodbridge “that under Colorado law, a claimant’s acknowledgement or recognition of the owner’s title during the claimant’s asserted prescriptive period does not interrupt the prescriptive use or undermine the claimant’s adverse use.” Woodbridge, ¶ 2. Writing for a unanimous court, Justice Gabriel’s opinion agreed with the Court of Appeals’ reasoning “that although Woodbridge recognized that it did not hold title, no evidence indicated that it had acted in subordination to the owner’s title.” Id. ¶ at 13. The Court further agreed with Woodbridge II’srejection of Lo Viento’s “permissive use” argument because “the permission offered … was conditional and Woodbridge never agreed to any of the conditions set forth therein.” Id. On that basis, Woodbridge confirmed that “a claimant seeking to establish a prescriptive easement need not show that it asserted exclusive ownership of the property during the prescriptive period,” but only “that its use was without permission or otherwise unauthorized and that it interfered with the owner’s property interests.” Id. at ¶ 23. Read the court decision
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Reprinted courtesy of Luke Mecklenburg, Snell & Wilmer
Mr. Mecklenburg may be contacted at lmecklenburg@swlaw.com

White House’s New Draft Guidance Limiting NEPA Review of Greenhouse Gas Impacts Is Not So New or Limiting

September 09, 2019 — Norman F. Carlin & Eric Moorman - Gravel2Gavel Construction & Real Estate Law Blog
On June 21, 2019, the White House Council on Environmental Quality (CEQ) issued draft guidance clarifying the treatment of greenhouse gas (GHG) emissions in environmental impact reviews of federal projects under the National Environmental Policy Act (NEPA). Those wishing to comment on the draft must submit comments within 30 days after it is published in the Federal Register. The draft guidance is part of the Trump Administration’s continuing efforts to streamline the permitting and environmental review process for infrastructure and energy projects. It replaces NEPA guidance on climate impacts issued in 2016 by the Obama administration, which was rescinded by President Trump’s Executive Order 13783 early in 2017. Although some initial reports suggest that the new draft guidance significantly pulls back from the Obama administration’s approach, on closer comparison it does not depart that much from the major recommendations of the rescinded guidance. In general, NEPA requires federal agencies proposing to undertake, approve or fund a major federal action to evaluate its environmental impacts, including both direct and reasonably foreseeable indirect effects; to consider alternatives and mitigation; and to discuss cumulative impacts resulting from the incremental effects of the project when added to those of other past, present, and reasonably foreseeable future projects. The new draft and the rescinded 2016 guidance contain similar recommendations regarding an agency’s obligations to consider indirect and cumulative GHG impacts, as well as on the use of cost-benefit analysis and the contentious Social Cost of Carbon (SCC) metric. Reprinted courtesy of Norman F. Carlin, Pillsbury and Eric Moorman, Pillsbury Mr. Carlin may be contacted at norman.carlin@pillsburylaw.com Mr. Moorman may be contacted at eric.moorman@pillsburylaw.com Read the court decision
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I-35W Bridge Collapse may be Due to “Inadequate Load Capacity”

January 22, 2014 — Beverley BevenFlorez-CDJ STAFF
The Crookston Times reports that the I-35W Bridge collapse that occurred five years ago in Minneapolis, Minnesota, killing 13 people and injuring another 145, may have been caused by “inadequate load capacity.” The National Transportation Safety Board (NTSB) report stated that it is “a simple design flaw in metal plates that help connect one steel beam to another.” Due to the findings, “the NTSB set new safety recommendations for bridge design plans, bridge inspection and training of bridge inspectors.” Read the court decision
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