Nationwide Immigrant Strike May Trigger Excusable Delay and Other Contract Provisions
February 23, 2017 —
Adam P. Handfinger & Meredith N. Reynolds – Peckar & Abramson, P.C.Yesterday, February 16, 2017, media outlets reported a nationwide strike by immigrants and
businesses referred to as “A Day Without Immigrants”. The protest, organized largely through
social media, was a response by some to the Trump Administration’s immigration and foreign
trade policies. Participating businesses shut down and immigrants refused to work or spend
money in an eff ort to demonstrate the role of foreign-born workers in the U.S. economy.
While the number of businesses and individuals that participated is not yet known, several
contractors reported labor shortages and construction project delays or temporary shut
downs as a result of the protest.
Reprinted courtesy of
Adam P. Handfinger, Peckar & Abramson, P.C. and
Meredith N. Reynolds, Peckar & Abramson, P.C.
Mr. Handfinger may be contacted at ahandfinger@pecklaw.com
Ms. Reynolds may be contacted at mreynolds@pecklaw.com
Read the court decisionRead the full story...Reprinted courtesy of
Private Project Payment Bonds and Pay if Paid in Virginia
January 05, 2017 —
Christopher G. Hill – Construction Law MusingsOne of the many items of construction law that has always been about as clear as mud has been the interaction between a contractual pay if paid clause and payment bond claims either under the Federal Miller Act or Virginia’s “Little Miller Act.” While properly drafted contractual “pay if paid” clauses are enforceable by their terms in Virginia, what has always been less clear is whether a bonding company can take advantage of such a clause when defending a payment bond claim. As always, these questions are very fact specific both under the Federal Act and the state statute. I wish that this post would answer this question, but alas, it will not.
A recent case from the City of Roanoke, Virginia looked at the interaction between a payment bond and a “condition precedent” pay if paid clause as it relates to a private project that is not subject to the Little Miller Act. In the case of IES Commercial, Inc v The Hanover Insurance Company, the Court examined a contractual clause between Thor Construction and IES Commercial in tandem with the bond language between Hanover Insurance Company and Thor as it related to a surprisingly familiar scenario. The general facts are these: IES performed, Thor demanded payment from the owner for the work that IES performed and the owner, for reasons that are left unstated in the opinion, refused to pay. IES sues Hanover pursuant to the payment bond and Hanover moves to dismiss the suit because Thor hadn’t been paid by the owner and therefore Hanover could take advantage of the pay if paid language.
Read the court decisionRead the full story...Reprinted courtesy of
Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
When Do Hard-Nosed Negotiations Become Coercion? Or, When Should You Feel Unlucky?
October 21, 2019 —
Stan Millan, Jones Walker, LLP - ConsensusDocsConflict in a negotiation is to be expected and is arguably healthy for the process. Owners and contractors are constantly engaged in negotiations; whether it be negotiating changes to the work, changes to the schedule, or changes to the contractual terms. But at what point does taking a strong position in a negotiation cross the line and become coercion or bad faith?
A recent decision from the Armed Services Board of Contract Appeals touched on this very issue. While this is a government contract case, the issues discussed in this case (namely negotiating a change) are routinely encountered in just about every construction project. This decision is instructive because it adds to a trending line of cases that limit an owner’s and contractor’s negotiation tactics.
On August 5, 2019, the board issued an opinion in the appeal of Sand Point Services, LLC vs. NASA, ASBCA Nos. 6189. In Sand Point Services, the contractor was hired by the owner to repair the Wallops Flight Facility’s aircraft parking apron. During its work, the contractor hit a differing site condition, namely unsuitable soils. The contractor sought additional time and money for this differing site condition. The owner ultimately responded with a show cause letter to the contractor claiming, among other breaches, that the contractor was significantly behind schedule. This was generally viewed by all parties as the start of default proceedings against the contractor.
Read the court decisionRead the full story...Reprinted courtesy of
Stan Millan, Jones Walker, LLPMr. Millan may be contacted at
smillan@joneswalker.com
Singer Ordered to Deposition in Construction Defect Case
December 30, 2013 —
CDJ STAFFThe pop singer Rihanna has sued the former owners of her Los Angeles home and the firm that inspected it before her purchase alleging water intrusion problems that were supposed to be fixed before close of escrow. The lawsuit was filed under the singer’s legal name, Robyn Fenty. According to Gregory Pyfrom, the attorney for LaRocca Inspection Associates, he has tried to depose her over the last two years, without success. He is seeking $7,500 in compensation to his clients for the singer’s failure to schedule a deposition.
Rihanna’s attorney, Miles Cooley, described this as “a smear campaign,” and claims that the parties had agreed not to depose her “until after the matter was mediated.” Mr. Cooley says that mediation has been delayed by Mr. Pyfrom’s vacation plans.
LaRocca Inspection Associates has countersued Rihanna, claiming that if she had alerted them earlier to problems they would have performed an additional inspection. The judge in the case has now ordered that the parties agree to a date on which to depose Ms. Fenty.
Read the court decisionRead the full story...Reprinted courtesy of
The Results are in, CEO/Founding Partner Nicole Whyte is Elected to OCBA’s 2024 Board of Directors!
October 09, 2023 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is excited to share that CEO/Founding Partner Nicole Whyte has been elected to the Orange County Bar Associations (“OCBA”) slate of four open Board of Directors for a three-year term beginning January 2024, alongside Casey Johnson (Aitken Aitken Cohn LLP), William O’Neill (Ross, Wolcott, Teinert & Prout LLP), and Lesley Young (Orange County District Attorney’s Office).
“It is one of the greatest honors of my career to have been elected to the OCBA board of directors. Thank you to all those who supported me; I will work tirelessly as your representative to serve our bar and community. I am especially excited to work alongside President Elect Christina Zabat-Fran and the other esteemed members of the board. I look forward to applying my skills and knowledge to serve our legal community as we work to promote excellence, integrity and honor in our profession, and to improve the practice for all.” – Nicole Whyte
Nicole is honored to have the opportunity to continue her support with the OC legal community. For over two decades, she has served on various OCBA legal committees and boards. Nicole currently serves on the board of OCBA Master’s Division and is the 2023 Board President of the Public Law Center, the largest pro-bono law firm in Orange County. She is also a current board member of the Sonenshine Pro Bono Committee. Nicole is a founding fellow of the OC Bar Foundation and served as secretary for the Robert Banyard Inn of Court for eight years. Nicole plans to call upon her experience serving on various boards, and her many years of law practice and management experience, to help identify and support the needs of the OCBA and its thriving and diverse OC legal community.
Read the court decisionRead the full story...Reprinted courtesy of
Bremer Whyte Brown & O'Meara LLP
Dynamics of Managing Professional Liability Claims for Design Builders
February 21, 2022 —
Eric M. Clarkson - Saxe Doernberger & Vita, P.C.Nearly half of America’s construction projects are now design-build in a continuing shift. As a result, contractors are taking on more professional liability (“PL”) risk than ever before, and the risk management landscape is changing. There are unique challenges to managing PL risks and claims. Specifically, PL coverage requires proactive claim management and project coordination. As a result, design-build projects should involve significant collaboration amongst all of the parties involved in the project.
Claims Made Coverage Considerations
PL policies typically provide three types of coverage:
- Professional Liability covers defense and indemnity against claims arising out of acts or omissions of the insured in rendering a defined set of professional services –including construction management, project management, and design work in the design build context.
Read the court decisionRead the full story...Reprinted courtesy of
Eric M. Clarkson, Saxe Doernberger & Vita, P.C.Mr. Clarkson may be contacted at
EClarkson@sdvlaw.com
County Sovereign Immunity Invokes Change-Order Ordinance
December 20, 2017 —
Lizbeth Dison - AHC Contruction Law BlogThe recent case of Fulton County v. Soco Contracting Company, Inc. addresses two very interesting questions for local government attorneys. First, can a county ordinance bolster a defense of sovereign immunity against a contractor’s claims? Second, can a county waive sovereign immunity by failing to respond to Requests for Admission?
Facts:
County hired Contractor to construct a facility near the airport. The contract provided that change orders must satisfy a county ordinance, which required approval by the Board of Commissioners. But in emergency situations, the County Manager could approve change orders, as long as the contractor executes a proposed modification and the purchasing agent approves it.
The project suffered substantial delays, which Contractor attributed to weather, design delays, delays by the County in providing decisions on changes, and delays in obtaining permits during the federal government’s shutdown. As a result of these issues, Contractor comes County changed the scope of the contract. Contractor asserted claims against County for the delays and the changes to the work. The appellate opinion addresses the change order claims.
Read the court decisionRead the full story...Reprinted courtesy of
Lizbeth Dison, Autry Hall & Cook, LLP
The Latest News on Fannie Mae and Freddie Mac
May 01, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Federal Housing Finance Agency released a report on April 30th, which stated that in a severe economic downturn Fannie Mae (FNMA) and Freddie Mac (FMCC) “could require an additional bailout of as much as $190 billion… according to the results of stress tests,” according to Clea Benson writing for Bloomberg.
“These results of the severely adverse scenario are not surprising given the company’s limited capital,” FNMA Senior Vice President Kelli Parsons said in a statement, as reported by Benson published in Bloomberg. “Under the terms of the senior preferred stock purchase agreement, Fannie Mae is not permitted to retain capital to withstand a sudden, unexpected economic shock of the magnitude required by the stress test.”
Furthermore, in another Bloomberg article, Cheyenne Hopkins and Clea Benson reported that Democrats remain divided on how to replace FNMA and FMCC. “If we don’t get this right, we’ll create major disturbances in the housing market which will have a profound impact on families, on homeownership and certainly on our national economy,” Oregon Democrat Jeff Merkley said in an interview, as reported by Cheyenne and Benson. “Merkley described himself as ‘still in negotiations’ with the bill’s sponsors.”
Read the full story, Clea Benson Article...
Read the full story, Cheyenne Hopkins & Clea Benson Article... Read the court decisionRead the full story...Reprinted courtesy of