Disputes Will Not Be Subject to Arbitration Provision If There Is No “Significant Relationship”
November 29, 2021 —
David Adelstein - Florida Construction Legal UpdatesAs you know from prior articles, arbitration is a creature of contract. This means if you want your disputes to be resolved by binding arbitration, as opposed to litigation, you want to make sure there is an arbitration provision in your contract. If there are certain types of disputes you do not want subject to arbitration, you want to specify those types of disputes/claims in your arbitration provision. If you are not sure, make sure to discuss the pros and cons of arbitration with your counsel when drafting and negotiating the contract. However, even with a broad arbitration provision, there are times where a dispute may still fall out of the scope of the arbitration provision, i.e., the dispute is not arbitrable. If this occurs, such dispute will be resolved by litigation. Parties that have buyer’s remove and do not want to arbitrate their dispute may try to make this argument that the dispute is not subject to the scope of the arbitration provision. There are times this argument carries weight because the dispute has no significant relationship to the agreement with the arbitration provision, as shown below.
In Deweees v. Johnson, 46 Fla. L. Weekly D2356b (Fla. 4th DCA 2021), a plaintiff purchased a home in a private residential community. The purchase contract with the developer contained a broad arbitration provision that materially provided that, “all post-closing claims, disputes, and controversies…between purchaser and seller will be resolved by binding arbitration except those arising under section G.5 and G.6 above.” Dewees, supra. Sections G.5 and G.6 provided that the purchaser will not interfere in the sales process with other purchasers and will not interfere with workmen during the construction process. There was also a workmanship and structural defect warranty for the dwelling that also contained an arbitration provision.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Lumber Drops to Nine-Month Low, Extending Retreat From Record
August 30, 2021 —
Marcy Nicholson - BloombergLumber futures slid to the lowest in more than nine months after sawmills ramped up production and demand from builders stabilized.
September futures in Chicago fell as much as 4.4% to $482.90 per thousand board feet, the lowest for a most-active contract since Oct. 30. Prices have dropped more than 70% from the record high reached just three months ago.
The tumble marks a stark turnaround for the common building material after strong U.S. construction demand during the pandemic spurred a surge in orders for lumber, causing prices to more than quadruple to their May peak and fueling inflation concerns. Sawmills have since increased output, and a shortage of other building supplies such as siding and windows has slowed the pace of construction, said Brian Leonard, an analyst with RCM Alternatives.
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Marcy Nicholson, Bloomberg
Ex-Pemex CEO Denies Allegations of Involvement in Brazil Scandal
April 13, 2017 —
Carlos M Rodriguez & Juan Pablo Spinetto - Bloombergormer Petroleos Mexicanos Chief Executive Officer Emilio Lozoya denied participating in an alleged bribery scheme involving Brazilian construction company Odebrecht SA in Mexico, after Veja magazine reported the executive was mentioned in connection with an ongoing corruption probe.
"I haven’t requested nor have I received illegal money," Lozoya said in an emailed response to questions by Bloomberg News on Wednesday. "I reiterate my interest in having this matter investigated and penalties issued, but without dishonoring and defaming without proof along the way."
In a report this week, Brazilian magazine Veja cited court documents suggesting the former Pemex CEO allegedly requested a $5 million illegal payment to Odebrecht, Latin America’s biggest construction company, to obtain benefits in Mexico. Veja says it based its reporting on portions of a plea-bargain agreement between prosecutors and a former top executive at Odebrecht. The allegations are part of a three-year, sweeping corruption probe in Brazil known as Operation Carwash.
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Carlos M Rodriguez, Bloomberg and
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Purely “Compensatory” Debts Owed by Attorneys to Clients (Which Are Not Disciplinary or Punitive Fees Imposed by the State Bar) Are Dischargeable In Bankruptcy
April 28, 2016 —
Renata L. Hoddinott & David W. Evans – Haight Brown & Bonesteel LLPThe United States Court of Appeals for the Ninth Circuit in Scheer v. The State Bar of California (4/14/16 – Case no. 2:14-cv-04829-JFW) reversed the district court’s affirmance of the bankruptcy court’s decision that a suspended attorney’s debt was nondischargeable in bankruptcy under 11 U.S.C. § 523(a)(7).
In Scheer, the client (Clark) retained attorney Scheer to help modify his home mortgage loan. Clark paid Scheer $5,500 before any modification occurred. Clark then fired Scheer and sought return of the $5,500 under California’s mandatory attorney fee dispute arbitration program. An arbitrator concluded that, although Scheer performed competently, she violated California Civil Code §2944.7(a) by receiving advance fees for residential mortgage modification services. Although the arbitrator believed that Scheer’s violations were neither willful nor malicious, he concluded California law required a full refund of the improperly collected fees. Scheer made a few payments against the arbitration award but, claiming a lack of funds, failed to pay the outstanding balance.
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David W. Evans, Haight Brown & Bonesteel LLP and
Renata L. Hoddinott, Haight Brown & Bonesteel LLP
Ms. Hoddinott may be contacted at rhoddinott@hbblaw.com
Mr. Evans may be contacted at devans@hbblaw.com
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Payment Bond Surety Entitled to Award of Attorneys’ Fees Although Defended by Principal
February 01, 2023 —
Garret Murai - California Construction Law BlogFor contractors involved in California public works projects the scenario is not uncommon: The general contractor awarded the public works project is required to obtain a payment bond for the benefit of subcontractors and suppliers and the payment bond surety issuing the payment bond requires the general contractor to defend and indemnify the surety from and against any claims against the payment bond.
In
Cell-Crete Corporation v. Federal Insurance Company, 82 Cal.App.5th 1090 (2022), the 4th District Court of Appeal examined whether a payment bond surety, who prevails in a claim against the payment bond, is entitled to statutory attorneys’ fees when the party actually incurring the attorneys’ fees was the general contractor, pursuant to its defense and indemnity obligations, as opposed to the surety itself.
The Cell-Crete Case
General contractor Granite Construction Company was awarded a public works contract issued by the City of Thermal known as the Airport Boulevard at Grapefruit Boulevard and Union Pacific Railroad Grade Separation Project. We’ll just call it the “Project.” Subcontractor Cell-Crete Corporation entered into a subcontract with Granite for lightweight concrete and related work.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Construction of World's Tallest Building to Resume With New $1.9B Contract for Jeddah Tower
October 28, 2024 —
James Leggate - Engineering News-RecordConstruction of the Jeddah Tower in Jeddah, Saudi Arabia—which is planned to be the world’s tallest building—is set to resume with original contractor Saudi Binladin Group Co. after a years-long pause, owner Jeddah Economic Co.'s parent company, Kingdom Holding Co., announced Oct. 2.
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James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
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Increase in Single-Family New Home Sales Year-Over-Year in January
February 26, 2015 —
Beverley BevenFlorez-CDJ STAFFBuilder magazine reported, “Sales of new single-family houses in January 2015 were at a seasonally adjusted annual rate of 481,000, according to estimates released today by the U.S. Census Bureau. This is 0.2% (±22.2%)* below the revised December rate of 482,000, but is 5.3% (±22.1%)* above the January 2014 estimate of 457,000.”
According to Metrostudy (as reported by Builder), builders seem to be getting ready for increased production this year: “An excellent leading indicator for housing starts is the number of lots reaching development (ready for the builder to start building). Our in-field research shows that lot development has doubled in the last two to three years in many markets.”
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Alaska Civil Engineers Give the State's Infrastructure a "C-" Grade
February 28, 2022 —
American Society of Civil EngineersJUNEAU, Alaska — The Alaska Section of the American Society of Civil Engineers (ASCE) today released preliminary findings from the 2021 Report Card for Alaska's Infrastructure, with the full report slated to be released in coming weeks. Alaska civil engineers gave 12 categories of infrastructure an overall grade of a 'C-' meaning the state's infrastructure is in mediocre condition and requires attention. Alaska has consistently maintained its transportation infrastructure, solid waste and energy sectors despite omnipresent environmental threats, seismic events, permafrost and shore erosion. However, some sectors such as drinking water, wastewater, and Alaska's marine highways have fallen behind due to a lack of funding to keep up with current and future needs. Civil engineers graded aviation (C), bridges (B-), dams (C), drinking water (D), energy (C-), marine highways (D), ports and harbors (D+), rail (C), roads (C), solid waste (C), transit (B-) and wastewater (D).
"Our systems and state agencies have demonstrated commendable resilience in the face of seismic events and other natural disasters," said David Gamez, co-chair, 2021 Report Card for Alaska's Infrastructure. "Unfortunately, we face many other threats, ranging from shore erosion to permafrost, major temperature fluctuations and avalanches. We must keep our foot on the gas to address current and future challenges to prevent power outages, road closures, suspended drinking water services, and many more vital services."
To view the report card and all 12 categories, visit https://infrastructurereportcard.org/state-item/alaska/.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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