FBI Makes Arrest Related to Saipan Casino Construction
April 05, 2017 —
Matthew Campbell & Greg Farrell - BloombergThe Federal Bureau of Investigation arrested one person in connection with the death of a construction worker at Imperial Pacific International Holdings Ltd.’s casino on the remote U.S. island of Saipan, according to an agency spokeswoman.
“The FBI conducted a search and made an arrest in response to the recent death of an individual working at the construction site of the Imperial Pacific Resort,” Michele Ernst, a spokeswoman in the FBI’s Honolulu field office, said in an email Friday. “The investigation is related to allegations of a federal violation of the workplace visa system, including reports the company was systematically harboring individuals who are out of status and in violation of federal statutes."
Reprinted courtesy of
Matthew Campbell, Bloomberg and
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“Pay When Paid” Provisions May Not Be Dead, at Least Not Yet
August 24, 2020 —
Garret Murai - California Construction Law BlogSophisticated contractors know that in California contractual “pay when paid” provisions are enforceable but that “pay if paid” provisions are not.
“Pay If Paid” v. “Pay When Paid” Provisions
A “pay if paid” provision is one in which a higher tier party agrees to pay a lower tier party “if” it is paid in turn by a still higher party. Most commonly they are found in subcontracts between general contractors and subcontractors and provide that the general contractor will pay the subcontractor “if” the general contractor is paid by the project owner. However, they can also be found in subcontracts between higher and lower tiered subcontractors and between subcontractors and material suppliers and equipment lessors. In California, such provisions, which create a condition precedent to payment, namely, a condition that must precede payment to a lower tiered party, are void as a matter of law.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
The 2023 Term of the Supreme Court: Administrative and Regulatory Law Rulings
December 03, 2024 —
Anthony B. Cavender - Gravel2Gavel Construction & Real Estate Law BlogIt is instructive to review the Supreme Court’s record in its most recent term, concentrating on regulatory and administrative law cases, which are usually back-burner issues. But not this term.
The Supreme Court began the current term on October 7, 2024. The Court has already chosen many cases to review in the new term, and it promises to be as interesting as the 2023 term, which produced several significant rulings affecting regulatory and administrative law, chiefly the Loper Bright Enterprises ruling. Loper Bright overturned the Court’s landmark administrative law ruling of Chevron, USA v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984).
The Background to Loper Bright
In 1984, the Supreme Court decided Chevron USA, Inc. v. National Resource Defense Council. (See 467 U.S. 839 (1984).) The unanimous decision, written by Justice Stevens, reversed then-D.C. Circuit Judge Ruth Bader Ginsburg’s ruling that set aside EPA’s Clean Air Act “bubble policy,” which was intended to provide regulatory relief from certain EPA permitting requirements.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Forum Selection Provisions Are Not to Be Overlooked…Even On Federal Projects
September 16, 2024 —
David Adelstein - Florida Construction Legal UpdatesForum selection provisions are NOT to be overlooked. Ever. Treat them seriously. Even on federal projects where there is a Miller Act payment bond. Consider forum selection provisions on the front end when negotiating your contract.
In a recent opinion, U.S. f/u/b/o Timberline Construction Group, LLC vs. Aptim Federal Services, LLC, 2024 WL 3597164 (M.D.Fla. 2024), a joint venture prime contractor was hired by the federal government to build a temporary housing site. The joint venture prime contractor obtained a Miller Act payment bond. The joint venture then entered into a subcontract with one of its joint venture members and the member-subcontractor then engaged a sub-subcontractor. The sub-subcontractor claimed it was owed $3.5 Million and sued the member-subcontractor, as well as the prime contractor’s Miller Act payment bond, in the Middle District of Florida. The member-subcontractor and the Miller Act payment bond sureties moved to transfer venue to the Middle District of Louisiana pursuant to a forum selection clause in the contract between the sub-subcontractor and the member-subcontractor. The contract provided that the exclusive venue would be a United States District Court located in Louisiana.
Forum selection provisions are analyzed in federal court under 28 U.S.C. 1404(a): “For the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought or to any district or division to which all parties have consented.” U.S. f/u/b/o Timberline, supra at *2. A forum selection provision is presumptively valid and given controlling weight. Id. (quotations and citations omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Carroll Brock of Larchmont Homes Dies at Age 88
November 05, 2014 —
Beverley BevenFlorez-CDJ STAFFHomebuilder Carroll Brock, "whose family-owned company built thousands of Larchmont Homes in the Sacramento region, died Oct. 31 of natural causes in his sleep, his son Steve said," according to the obituary in the Sacramento Bee. "Under Mr. Brock, who was named Sacramento general manager in 1967, Larchmont Homes built nearly 15,000 houses in more than 30 subdivisions of modest ranch-style homes aimed mostly at first-time buyers."
Mr. Brock served on the board of the National Association of Home Builders, was past president of the North State Building Industry Association, and had been appointed to the California state Board Standards Commission. Furthermore, he was inducted into the California Building Industry Association Hall of Fame in 1991. Mr. Brock served the community through his work in the Sacramento Area Commerce and Trade Commission as well as the Sacramento Metropolitan Chamber of Commerce. He volunteered his time to the Salvation Army as well as offering construction assistance and expertise to the Fair Oaks Presbyterian Church.
“My dad was a humble leader,” his son told the Sacramento Bee. “As successful as he was at building homes, he felt just as strongly about serving others.”
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Insurance Law Client Alert: California FAIR Plan Limited to Coverage Provided by Statutory Fire Insurance Policy
February 07, 2014 —
Valerie A. Moore and Chris Kendrick - Haight Brown & Bonesteel, LLPIn St. Cyr v. California Fair Plan Association (No. B243159, filed 1/31/14), a California appeals court held that the state's high risk property insurance plan is not obligated to provide any greater coverage than that mandated for the state's statutory fire insurance policy.
The plaintiff-policyholders lived in high fire risk areas and were insured under the California FAIR Plan, which provides property insurance to the otherwise uninsurable. Following loss of their homes and other property in wildfires, the policyholders were paid the full amount of their policy limits, but contended that they were entitled to additional payments. Specifically, the policyholders alleged that the FAIR plan provided less protection than statutorily mandated by Insurance Code sections 10090 through 10100.2, which spells out the "Basic Property Insurance Inspection and Placement Plan" of the FAIR program.
The policyholders contended that FAIR was required to issue a policy not only in accordance with the standard form fire insurance policy set forth in Insurance Code section 2071, but also the "'Basic Property Insurance' written in the normal market . . . known as the 'HO-3'," referring to the copywrited homeowners policy form promulgated by the Insurance Services Office (ISO).
Reprinted Courtesy of Valerie A. Moore, Haight Brown & Bonesteel, LLP and
Chris Kendrick, Haight Brown & Bonesteel, LLP
Ms. Moore may be contacted at vmoore@hbblaw.com and Mr. Kendrick may be contacted at ckendrick@hbblaw.com.
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Reconciling Prompt Payments and Withholding of Retention Payments
March 30, 2016 —
Eric J. Rollins, Esq. – Newmeyer & Dillion, LLPIt is common in California for the owners of a project to make monthly payments to a contractor for work as it is completed, but withhold a certain percentage as a guarantee of future satisfactory performance. Contractors almost always pass these withholdings on to their subcontractors. Unsurprisingly, disputes can arise regarding when the withheld retentions must be paid.
Civil Code section 8814, subdivision (a), states that a direct contractor must pay each subcontractor its share of a retention payment within ten days after receiving all or part of a retention payment. However, an exception exists -- a direct contractor may withhold from the retention paid to a subcontractor an amount not in excess of 150 percent of the estimated value of the disputed amount, whenever a “good faith dispute exists between the direct contractor and a subcontractor.” (See Cal. Civ. Code, § 8814, subd. (c).) The problem with the statute is that it offers no help in defining a “good faith dispute,” and the California courts have historically not provided much guidance either. Can a “good faith dispute” be any dispute between the contracting parties, e.g., a dispute regarding change orders, mismanagement, etc.? Or must the dispute relate specifically to the retention? Unfortunately for California litigants, the answer may depend on the appellate district in which the parties find themselves.
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Eric J. Rollins, Esq., Newmeyer & Dillion, LLPMr. Rollins may be contacted at
eric.rollins@ndlf.com
Will AI Completely Transform Our Use of Computers?
July 22, 2024 —
Aarni Heiskanen - AEC BusinessLast November, I received a newsletter from Bill Gates titled “AI is about to completely change how we use computers.”
Gates begins his letter with a prediction:
“Five years from now, you won’t have to use different apps for different tasks. You’ll simply tell your device, in everyday language, what you want to do—whether it’s drafting a document, making a spreadsheet, scheduling a meeting, analyzing data, sending an email, or even buying movie tickets.“
Gates dives deeper into the topic in his
blog post.
Revolution in Computing
Gates discusses the revolutionary impact of AI on computing, comparing it to the transformative effects of mobile phones and the Internet.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi