United States Supreme Court Limits Class Arbitration
May 13, 2019 —
Jeffrey K. Brown & Raymond J. Nhan - Payne & FearsOn April 24, 2019, the United States Supreme Court held that the Federal Arbitration Act ("FAA") bars orders requiring class arbitration when an agreement is ambiguous about the availability of such a procedure. Lamps Plus v. Varela, 587 U.S. __ , 2019 WL 1780275, (2019). In Lamps Plus, the Court clarified a 2010 case in which it held that a court may not compel arbitration on a class-wide basis when an agreement is silent on the availability of class arbitration. Stolt-Nielsen S.A. v. Animal Feeds Int'l Corp., 559 U.S. 662, 687 (2012).
In Lamps Plus, a 5-4 decision authored by Chief Justice Roberts, the Court explained that because the FAA envisions the use of traditional individualized arbitration, a party cannot be forced under the FAA to submit to class arbitration unless the parties explicitly agreed to do so. Because class arbitration does not share the benefits of traditional arbitration -- lower costs, greater efficiency and speed, and the parties' choice of a neutral -- the FAA requires more than an "ambiguous" agreement to show that the parties bound themselves to arbitrate on a class-wide basis. Unlike individualized arbitration, or even traditional class actions, class arbitration raises serious due process concerns because absent class members will have limited judicial review. Based on these critical differences between individual and class arbitration, the Court reiterated in Lamps Plus that "courts may not infer consent to participate in class arbitration absent an affirmative contractual basis for concluding that the party agreed to do so."
Reprinted courtesy of
Jeffrey K. Brown, Payne & Fears and
Raymond J. Nhan, Payne & Fears
Mr. Brown may be contacted at jkb@paynefears.com
Mr. Nhan may be contacted at rjn@paynefears.com
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Florida Federal Court to Examine Issues of Alleged Arbitrator Conflicts of Interests in Panama Canal Case
May 24, 2021 —
Sarah B. Biser & Philip Z. Langer - ConsensusDocsThe parties in a $238-million dispute over the construction of the third set of locks for the Panama Canal are raising issues concerning alleged conflicts of interest on the part of the International Chamber of Commerce (“ICC”) arbitrators in the United States District Court for the Southern District of Florida.[2] The case may address rarely litigated issues concerning whether arbitrators who sit on multiple arbitration panels together or who support appointment of each other to lead arbitration panels have disabling conflicts of interest.
The case pits Grupo Unidos por el Canal, S.A. (“Grupo”), a consortium of Spanish, Italian, Belgian, and Panamanian construction firms, against Autoridad del Canal de Panama (“ACP”), the Panamanian entity that operates the Panama Canal and that sponsored the multi-billion-dollar, decade-long project to expand the Canal’s capacity by building a new set of locks (the “Project”). The current dispute (the “Panama 1 Arbitration”), which centers on the suitability of the rock coming from the excavations to be used to produce concrete aggregates for the Project, was arbitrated before a three-member ICC Tribunal and resulted in a $238-million award to ACP and against Grupo. The ICC Tribunal reversed a decision of the dispute review board established in the parties’ contract.
Reprinted courtesy of
Sarah B. Biser, Fox Rothschild LLP and
Philip Z. Langer, Fox Rothschild LLP
Ms. Biser may be contacted at sbiser@foxrothschild.com
Mr. Langer may be contacted at planger@foxrothschild.com
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William Lyon to Acquire RSI Communities
February 22, 2018 —
Dave Suggs - CDJ STAFFAccording to the article “William Lyon Agrees to Buy RSI Communities $460 million deal plants Lyon in Texas and adds to Inland Empire land holdings” published on the website Builder, the Newport Beach home builder is purchasing the Southern California and Texas home builder. This will be Lyon Homes’ first venture in the state of Texas.
RSI Communities works within both San Antonio and Austin, Texas as well as Southern California and the Inland Empire. It was founded by Todd Palmaer, a home building expert and Ron Simon, a building products expert and Newport Beach businessman. First time home buyers have been RSI’s main target.
President and CEO of RSI, Tod Palmaer is optimistic about the acquisition “We are delighted to have our company join the William Lyon Homes organization. We have a great deal of confidence in the William Lyon Homes platform and its executive management team, and believe that its acquisition of RSI Communities will add to Lyon’s continued success in its current and new markets.”
Pat Donahue who has almost 30 years of experience in home building, will serve as President to the Inland Empire Division. John Bohnen, RSI’s present Chief Operating Officer, will be the regional president in Texas. Mr. Bohnen has previously held executive positions with numerous home builders. William Lyon’s president and CEO Mark R. Zaist is excited about adding RSI’s key players to their team, and had this to say about the purchase. “The acquisition of RSI represents our most significant acquisition since our entry into Portland and Seattle with the Polygon Northwest Homes acquisition in 2014 and furthers our strategy of building in the strongest markets in the Western U.S., while also strengthening our pipeline in Southern California, as we continue our mission of being the premier Western Regional home builder.”
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Boston Team Obtains Complete Defense Verdict for Engineering Firm in Professional Liability Matter
June 08, 2020 —
Kenneth Walton & Oliver Vega - Lewis BrisboisBoston, Mass. (June 5, 2020) - Boston Partner Kenneth B. Walton and Associate Oliver J. Vega recently obtained a complete defense verdict after a 10-day bench trial in the U.S District Court for the District of South Carolina. The plaintiff in this matter, who is the owner of a newly acquired food processing facility, alleged breach of contract and breach of fiduciary duty claims against our client, a Massachusetts engineering firm, arising out of allegedly defective design and construction management services provided during the renovation of and addition to said facility.
Reprinted courtesy of
Kenneth Walton, Lewis Brisbois and
Oliver Vega, Lewis Brisbois
Mr. Walton may be contacted at Ken.Walton@lewisbrisbois.com
Mr. Vega may be contacted at Oliver.Vega@lewisbrisbois.com
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Sometimes It’s Okay to Destroy Evidence
August 17, 2011 —
CDJ STAFFThe Minnesota Supreme Court has ruled in the case of Miller v. Lankow that Mr. Miller was within his rights to remediate his home, even though doing so destroyed the evidence of water intrusion.
Linda Lankow built a home in 1992. In 2001 or 2002, Lankow discovered a stucco problem at the garage which she attributed to moisture intrusion. She asked the original contractor to fix the wall. In 2003, Lankow attempted to sell her home, but the home inspection revealed fungal growth in the basement. Lankow made further repairs, including alterations to the landscaping.
In 2004, Lankow put her house on the market once again and entered into an agreement with David Miller. Miller declined to have an independent inspection, as the home had been repaired by professional contractors.
In 2005, Miller put the house on the market. A prospective buyer requested a moisture inspection. The inspection firm, Private Eye, Inc. found “significant moisture intrusion problems.”
Miller hired an attorney who sent letters to the contractors and to Lankow and her husband. Lankow’s husband, Jim Betz, an attorney, represented his wife and sent a letter to Miller’s attorney that Miller had declined an opportunity to inspect the home.
In 2007, Miller’s new attorney sent letters to all parties that Miller had decided to begin remediation work on the house. All stucco was removed. Miller then filed a lawsuit against the prior owners, the builders, and the realtors.
Two of the contractors and the prior owners moved for summary judgment on the grounds that Miller had spoliated evidence by removing the stucco. They requested that Miller’s expert reports be excluded. The district court found for the defendants and imposed sanctions on Miller.
The Minnesota Supreme court found that “a custodial party’s duty to preserve evidence is not boundless,” stating that “it may be particularly import to allow remediation in cases such as the one before us.” Their reasoning was that “remediation of the moisture intrusion problem in the home may be necessary, even essential, to address immediate health concerns.”
Given that Miller needed to remediate the problem in order to continue living there, and that he had given the other parties a “full and fair opportunity to inspect,” the court found that he was within his rights. The court reversed the judgment of the lower court and remanded it to them for review.
Read the court’s decision…
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Best U.S. Home Sales Since 2007 Show Momentum in Housing Market
August 26, 2015 —
Sho Chandra – BloombergAmerica’s housing market has been heating up this summer.
Purchases of previously owned homes unexpectedly rose in July for a third straight month to reach the highest level since February 2007, figures from the National Association of Realtors showed Thursday. The gain was driven by stronger sales of single-family houses even as the share of first-time buyers shrank.
A limited number of available properties is keeping prices elevated, giving homeowners the financial flexibility to trade up as their housing equity improves. The data and a recent report showing the strongest rate of residential construction since 2007 are consistent with the Federal Reserve’s view that the industry is making progress.
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Sho Chandra, Bloomberg
Presenting a “Total Time” Delay Claim Is Not Sufficient
September 12, 2022 —
David Adelstein - Florida Construction Legal UpdatesWhen presenting a delay-type of claim on a construction project, a claimant MUST be in a position to properly PROVE the claim. Trying to present a delay claim loosey-goosey is not a recipe for success. In fact, it can be a recipe for an easy loss. This is not what you want. To combat this, make sure you engage a delay expert that understands delay methodologies and how to calculate delay and do NOT present a total time claim. Presenting a delay claim using a total time approach, discussed below, makes it too easy to attack the flaws and credibility of the approach. Per the discussion of the case below, a total time claim with a contractor that used its project manager, versus a delay expert, to support its claim turned the contractor’s claim into a loss.
In French Construction, LLC v. Department of Veteran Affairs, 2022 WL 3134507, CBCA 6490 (CBCA 2022), a contractor submitted a delay claim to the government for almost $400,000. The contractor was hired to construct a two-story corridor to connect hospital buildings. The contractor was required to be complete within 365 days. It was not. The contractor was seeking 419 days of delay from the government. The contractor’s “delay expert” was its project manager who compared the contractor’s as-planned schedule to an as-built schedule he prepared for the claim.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Will Millennial’s Desire for Efficient Spaces Kill the McMansion?
September 10, 2014 —
Beverley BevenFlorez-CDJ STAFFBuilder Magazine reported that millennials are currently “inhabiting high-tech, yet cozy student housing and apartments” without having “outsized space expectations,” however, that may change over the next ten years as “their preference for the walkable convenience that often accompanies smaller living spaces will collide head on with their parents’ (and grandparents’) insatiable addiction for square footage.” Regardless, builders may decide to change based upon a younger generation that accepts “efficient spaces.”
According to Builder Magazine, Nick Lenhert, executive director at architectural firm KTGY, argued that the young “don’t really want what mom and dad have until they get married. Then all of a sudden things start to revert. They start getting realistic about what they need for the children and what they need for themselves. [Right now,] Gen Y is used to living in small spaces or with roommates because that’s all they can afford.”
However, John Thatch, principal and director of design at the architectural and planning firm Dahlin Group, believes that even as millennials get older and conceivably need greater square footage, there is still a possibility that their tendency toward efficient spaces will continue: “I’m hoping this is the generation [that pulls in house size] because our generation went gigantic. It’s a chance for architects to get back to design smaller, more thoughtful spaces that are flexible.”
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