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    Construction Termination Issues Part 6: This is the End (Tips for The Design Professional)

    September 25, 2023 —
    Whether your role is in helping analyze the contractor’s work on the project to certify a contractor’s termination for cause, or you are being shown the door yourself, and everything in between, termination is a subject that is ripe with potential problems. Consider these summary tips as part of your practice, every time the termination idea arises:
    1. Remember that you are the neutral and must be impartial between Owner and Contractor
    2. After you have made a fair decision, document your decision to the Owner and Contractor
    3. Provide options less nuclear for Owners– stop work; removing scopes of work; etc.
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    Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett
    Ms. Brumback may be contacted at mbrumback@rl-law.com

    CRH to Buy Building-Products Firm Laurence for $1.3 Billion

    September 03, 2015 —
    CRH Plc agreed to buy Los Angeles-based C.R. Laurence Co. for $1.3 billion to expand in products used in window installation as U.S. construction markets stabilize. C.R. Laurence, which is owned by the Friese family, makes hardware and products used in the installation of architectural glass and generated pretax profit of $51 million in 2014, Dublin-based CRH said in a statement Thursday. CRH shares rose 4.9 percent to 25.79 euros as of 8:56 a.m. in Dublin, giving the company a market value of 21.2 billion euros ($24 billion). The purchase is timed with a recovery in U.S. construction markets, driven by demand for industrial buildings. CRH reported a "promising backlog" of business at its Americas Materials division in May. Combining the companies will generate $40 million a year in savings from 2017, it said. Reprinted courtesy of Phil Serafino, Bloomberg and Andrew Marc Noel, Bloomberg Read the court decision
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    Counsel Investigating Coverage Can be Sued for Invasion of Privacy

    January 28, 2019 —
    In Strawn v. Morris, Polich & Purdy (No. A150562, filed 1/4/19), a California appeals court held that policyholders could state a claim for invasion of privacy against an insurer’s coverage counsel and law firm, where the counsel had disseminated inadvertently produced tax returns to forensic accountants while evaluating coverage. In Strawn, a couple’s home was destroyed by fire and the husband was prosecuted for arson, but the criminal case was dropped. Notwithstanding, their insurance claim was denied on the ground that the husband intentionally set the fire and fraudulently concealed his actions. In addition to the insurance company, the insureds also named the carrier’s coverage counsel and his firm in the ensuing bad faith lawsuit, alleging causes of action for elder financial abuse and invasion of privacy. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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    The Hazards of Carrier-Specific Manuscript Language: Ohio Casualty's Off-Premises Property Damage and Contractors' E&O Endorsements

    October 05, 2020 —
    Risk transfer in the construction industry depends heavily on industry-standard insurance language. Insurance provisions in subcontracts typically reference ISO standard insurance terminology or endorsements in order to guarantee (or, at least, attempt to secure) coverage for upstream parties. The contract may require, for example, that a subcontractor maintains general liability insurance on a “current ISO occurrence form,” and name upstream parties as additional insureds, and both parties will have a general understanding of what that entails for purposes of risk transfer. Problems arise, however, when insurance companies stray from standard language, especially on issues that go to the heart of construction risk transfer. In some instances, provisions that track ISO language may contain subtle changes that seem to meet the contractual insurance requirements. Upon closer scrutiny, it could significantly change how a policy will respond to a given claim. Given the extent of potential liability arising from construction projects, if the insurance programs intended to back up risk transfer and indemnity agreements do not respond as expected, all the potentially liable parties may be left in the lurch. Reprinted courtesy of Theresa A. Guertin, Saxe Doernberger & Vita and Eric M. Clarkson, Saxe Doernberger & Vita Ms. Guertin may be contacted at tag@sdvlaw.com Mr. Clarkson may be contacted at emc@sdvlaw.com Read the court decision
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    If I Released My California Mechanics Lien, Can I File a New Mechanics Lien on the Same Project? Will the New Mechanics Lien be Enforceable?

    December 29, 2020 —
    If I Released My California Mechanics Lien, Can I File a New Mechanics Lien on the Same Project? Will the New Mechanics Lien be Enforceable? In general, the answer to the above questions is “Yes”, but only if you meet the following requirements:
    1. You must only release the mechanics lien itself, but not the “right” to a mechanics lien: There is an important distinction to be made between releasing a mechanics lien and releasing the right to a mechanics lien. Whether you do one or the other will depend on the specific language used in your release. In the case of Santa Clara Land Title Co. v. Nowack and Associates, Inc. (1991) 226 Cal. App.3d, 1558 a “release of mechanics lien” document was recorded TO THE County Recorder’s office which included a statement that the mechanics lien was “fully satisfied, released and discharged”. Based on this language, the court concluded that the mechanics lien claimant had waived its “right” to a further mechanics lien on the same property for the work in question. The court concluded that since the release stated that the claim was “fully satisfied” the right to mechanics lien on the project had forever been waived. The Nowak case can be distinguished from the case of Koudmani v. Ogle Enterprises, Inc., (1996) 47 Cal.App.4th 1650, where the release of mechanics lien only stated that the mechanics lien was “otherwise released and discharged” and not that it was “satisfied”. Based on the distinction drawn from the two cases, a simple mechanics lien release that only releases the mechanics lien itself, but not the “right” to a mechanics lien should be used. At the following link you will find a proper form to achieve this purpose: https://www.porterlaw.com/wp-content/uploads/2019/06/03PRI-Mechanics-Lien-Release.pdf
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    Reprinted courtesy of William L. Porter, Porter Law Group
    Mr. Porter may be contacted at bporter@porterlaw.com

    Colorado Drillers Show Sensitive Side to Woo Fracking Foes

    September 03, 2014 —
    A fight over fracking is looming in Texas. Another stand-off is shaping up in Colorado. Yet drillers’ reactions couldn’t be more different. In Texas, drillers are doing their noisy in-your-face fracking as usual. Meanwhile, on a small farm about an hour from the Colorado Rocky Mountains, the oil industry is giving fracking a makeover, cutting back on rumbling trucks and tamping down on pollution. Oil companies in Colorado are responding to a rising tide of resentment as local communities and environmental activists vie to impose measures to ban fracking or restrict drilling. A series of ballot initiatives and other grass roots opposition around the country is seen as threatening the booming shale industry, even in oil-friendly Texas, where the U.S. energy renaissance began. Reprinted courtesy of Zain Shauk, Bloomberg and Bradley Olson, Bloomberg Mr. Shauk may be contacted at zshauk@bloomberg.net; Mr. Olson may be contacted at bradleyolson@bloomberg.net Read the court decision
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    Toolbox Talk Series Recap – Arbitration Motion Practice

    August 07, 2023 —
    In the June 22, 2023 edition of the Toolbox Talk Series, Adrian Bastianelli, Peckar & Abramson, P.C., and Brian Cashmere, Williams Mullen, moderated by Jennifer Millender of the American Arbitration Association (“AAA”), discussed motion practice in arbitration. Specifically, they offered advice on how to choose the right issue for a motion, how to get approval for a motion, how to write the motion, and how to get the arbitrator to grant it. They also discussed the pros and cons of motion writing in arbitration settings. 1. How to choose the “right issue” for a motion in arbitration The panel discussed what type of issues can, or should, be brought up in a motion in arbitration. Cashmere stated that a clear and concise issue is best for this type of review. For example, statute of limitations, notice, or contract interpretation issues may make great summary judgment or partial summary judgment motions. Essentially, an issue that the arbitrator may resolve via primarily a question of law is more likely to succeed. Bastianelli warned against submitting just any “available” motion, as the practice may turn the arbitrator against you. Both panelists mentioned the need to consider strategy before filing a motion—ask, “how will filing this motion help or hurt reachingArbi final resolution.” Cashmere noted that sometimes the threat of bringing the issue to a hearing can put pressure on the adverse party in a way that is favorable to your client’s goals; possibly even more so than actually submitting the issue. Read the court decision
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    Reprinted courtesy of Michael Zehner, BBG Construction Law
    Mr. Zehner may be contacted at mzehner@bbglaw.com

    Buffett’s $11 Million Beach House Is Still on the Market

    February 28, 2018 —
    Warren Buffett auctions a lunch date for charity every year, and the winning bid usually stretches to seven figures. He twice sold his used cars to fans for multiples of their Kelly Blue Book value. Someone once even paid more than $200,000 to purchase his old wallet. (It had a stock tip inside.) For those who venerate one of the world’s best investors, money is usually no object when buying a piece of the legend. A year ago, Buffett put his vacation home in Emerald Bay, a gated enclave next to Laguna Beach, Calif., up for sale. He bought the property in 1971 at the urging of his first wife, Susan, for $150,000—the equivalent of a bit less than $1 million today. At the time, he didn’t think of it much as an investment, he told the Wall Street Journal last year. Laguna was less developed back then, more surfer-and-hippie paradise than multimillionaire’s haunt. The couple and their family often spent summers at the home, as well as time around Christmas, when Buffett would hole up in the master bedroom working on his closely followed annual letter to Berkshire Hathaway Inc. shareholders. Read the court decision
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    Reprinted courtesy of Noah Buhayar, Bloomberg