Columbus Ohio Building Expert Directory

When Is an Arbitration Clause Unconscionable? Not Often

April 05, 2021 — Christopher G. Hill - Construction Law Musings
Here at Construction Law Musings, I have discussed the pros and cons of various forms of Alternative Dispute Resolution (ADR), including arbitration. I am a fan of most ADR, but less of one for arbitration than for mediation. However, where the arbitration can be done under a good set of cost-containing rules and with an arbitrator that is experienced in construction, arbitration can help with the resolution of construction claims. Of course, arbitration provisions in construction contracts are routinely upheld by the courts of Virginia with limited exceptions. One of these exceptions is where the arbitration clause is unconscionable and therefore unenforceable. A recent case out of the Western District of Virginia, Marroquin v. Dan Ryan Builders Mid-Atlantic LLC, shows how high a hurdle it is to get a court to invalidate an arbitration provision. In this case, the Marroquins purchased a new construction home from the Defendants. As is often the case in such purchase transactions, Defendant provided a limited warranty agreement (in this case provided by Quality Builders Warranty Corporation (“QBW”)) that along with the sales contract contained a mandatory arbitration provision. The parties executed the limited warranty and the sale proceeded with the Marroquins taking possession. Over the next year or so, the County inspector’s office issued several correction orders to Defendant, and the Marroquins, through counsel, identified numerous defects in construction, many of which they alleged to remain unremedied. Needless to say, they sued for breach of statutory warranty and for breach of the limited warranty. Defendant removed the case to Federal District Court and then moved to compel arbitration. 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

Wendel Rosen’s Construction Practice Group Receives First Tier Ranking by U.S. News and World Reports

December 02, 2015 — Garret Murai – California Construction Law Blog
Ok, it may not be an Oscar, or even an Emmy, but we’re humbled and honoured just the same. Wendel Rosen’s Construction Practice Group has received a first-tier ranking by the U.S. News and World Reports in its 2016 Best Law Firms rankings. This is the third year in a row that the firm’s Construction Practice Group has received this honor. Joining it on stage is the firm’s Real Estate, Bankruptcy, and Real Estate Litigation practices which also received first-tier rankings and the firm’s Land Use practice which received a second-tier ranking. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

99-Year-Old Transmission Tower Seen as Possible Cause of Devastating Calif. Wildfire

December 11, 2018 — Contra Costa Times - Engineering News-Record
Dec. 08 --PULGA -- With winds gusting around 50 mph in the morning hours of Nov. 8 , portions of a PG&E steel lattice transmission tower -- exposed to the elements high on a ridgetop and originally built when Woodrow Wilson was president -- failed. As high-voltage lines got loose and whipped around, striking the metal tower, molten aluminum and metal sprayed across tinder dry vegetation, igniting the brush. Arriving firefighters could only watch as the blaze underneath the power lines quickly spread to wild timber and brush. Read the court decision
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Reprinted courtesy of Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com

Housing Starts Plunge by the Most in Four Years

May 20, 2015 — Bloomberg
(Bloomberg) -- Housing starts plummeted in February by the most since 2011 as plunging temperatures and snow became the latest hurdles for an industry struggling to recover. Work began on 897,000 houses at an annualized rate, down 17 percent from January and the fewest in a year, the Commerce Department reported Tuesday in Washington. The pace was slower than the most pessimistic projection in a Bloomberg survey of 81 economists. “Today’s report leaves me a little concerned,” said Michelle Meyer, deputy head of U.S. economics at Bank of America Corp. in New York. “While the initial reaction is to dismiss much of the drop because of the bad weather, the level of home construction continues to be depressed.” Read the court decision
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Reprinted courtesy of Bloomberg News

Defective Concrete Blocks Spell Problems for Donegal Homeowners

October 30, 2013 — CDJ STAFF
A number of recently built homes in Donegal, Ireland are suffering from crumbing cement blocks used in the construction. This was previously seen in homes in the Leinster Region, and seems to be more widespread than previously thought. Damien McKay, an engineer who specializes in building litigation noted that the blocks started cracking about five years after the homes were constructed. In some cases, “the actual concrete blocks beneath the plaster can be easily broken and in some occasions with as little effort as rubbing with your fingers.” Read the court decision
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Reprinted courtesy of

Terms of Your Teaming Agreement Matter

July 30, 2019 — Christopher G. Hill - Construction Law Musings
These days in construction, and other pursuits, teaming agreements have become a great method for large and small contractors to work together to take advantage of various contract and job requirements from minority participation to veteran ownership. With the proliferation of these agreements, parties must be careful in how they draft the terms of these agreements. Without proper drafting, the parties risk unenforceability of the teaming agreement in the evewnt of a dispute. One potential pitfall in drafting is an “agreement to agree” or an agreement to negotiate a separate contract in the future. This type of pitfall was illustrated in the case of InDyne Inc. v. Beacon Occupational Health & Safety Services Inc. out of the Eastern District of Virginia. In this case, InDyne and Beacon entered into a teaming agreement that provided that InDyne as Prime would seek to use Beacon, the Sub, in the event that InDyne was awarded a contract using Beacon’s numbers. The teaming agreement further provided:

The agreement shall remain in effect until the first of the following shall occur: … (g) inability of the Prime and the Sub, after negotiating in good faith, to reach agreement on the terms of a subcontract offered by the Prime, in accordance with this agreement.

InDyne was subsequently awarded a contract with the Air Force and shortly thereafter sent a subcontract to Beacon and requested Beacon’s “best and final” pricing. Beacon protested by letter stating that it was only required to act consistently with its original bid pricing. Beacon then returned the subcontract with the original bid pricing and accepting all but a termination for convenience provision. Shortly thereafter, InDyne informed Beacon that InDyne had awarded the subcontract to one of Beacon’s competitors. Beacon of course sued and argued that the teaming agreement required that InDyne award the subcontract to Beacon. 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

Haight Attorneys Selected to 2018 Southern California Rising Stars List

June 13, 2018 — Haight Brown & Bonesteel LLP
Haight proudly announces that Partner Michael C. Parme and attorneys Frances Ma and Kristian B. Moriarty have been selected to the 2018 Southern California Rising Stars list. Super Lawyers, a Thomson Reuters business, is a rating service that lists outstanding lawyers from a wide range of practice areas who have attained a high-degree of peer recognition and professional achievement. The selection process is multi-phased and includes independent research, peer nominations and peer evaluations. Read the court decision
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Reprinted courtesy of Haight Brown & Bonesteel LLP

Real-Estate Pros Fight NYC Tax on Wealthy Absentee Owners

October 15, 2014 — Henry Goldman and Allyson Versprille – Bloomberg
A political battle is brewing at the apex of New York’s property market. The real-estate industry is mobilizing to kill a proposed levy on non-resident owners of apartments valued at more than $5 million, seeking to ensure the world’s biggest city doesn’t follow London, Hong Kong and Singapore in extracting extra cash from trophy properties. The industry’s lobbying arm, the Real Estate Board of New York, says the measure will scare off investors who fuel a business supporting more than 500,000 jobs and generating 40 percent of the five boroughs’ revenue. Brokers warn of economic calamity if officials slap a luxury tax on apartments owned by someone who lives in the city less than half the year. Mr. Goldman may be contacted at hgoldman@bloomberg.net; Ms. Versprille may be contacted at aversprille1@bloomberg.net Read the court decision
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Reprinted courtesy of Henry Goldman and Allyson Versprille, Bloomberg

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