Disputes Over Arbitrator Qualifications: The Northern District of California Offers Some Guidance
August 10, 2021 —
Justin K. Fortescue - White and WilliamsThe selection of an arbitration panel can often lead to disputes between the parties regarding things like whether a particular candidate is qualified, whether a challenge to an arbitrator’s qualifications can be addressed pre-award and whether a party that names an unqualified arbitrator should lose the opportunity to name a replacement. In Public Risk Innovations v. Amtrust Financial Services, No. 21-cv-03573, 2021 U.S. Dist. LEXIS 129464 (N.D. Ca. July 12, 2021), the court provided answers on all three of these issues.
In Amtrust, the parties filed cross-motions to compel arbitration. Although both parties agreed the dispute was arbitrable, they disagreed about whether Public Risk Innovations, Solutions and Management’s (PRISM) arbitrator was qualified under the terms of the applicable contract. In seeking to have PRISM’s arbitrator disqualified, Amtrust argued that he: (1) was not a “current or former official of an insurance or reinsurance company”; and (2) was not “disinterested.” Amtrust also argued that because PRISM named an unqualified arbitrator (and presumably the time to appoint had passed), PRISM should be deemed to have failed to select an arbitrator as required by the contract and that Amtrust had the right to select a second arbitrator of its choice.
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Justin K. Fortescue, White and WilliamsMr. Fortescue may be contacted at
fortescuej@whiteandwilliams.com
Reconstructing the Francis Scott Key Bridge Utilizing the Progressive Design-Build Method
June 04, 2024 —
Lisa D. Love - The Dispute ResolverHaving awakened on the morning of March 26 to the devastating news of the collapse of Baltimore’s Francis Scott Key Bridge after being struck by the Dali, a 984 length /52 beam foot cargo container ship, I thought of the many times I crossed the bridge as a child growing up in Washington, D.C. I also recalled Montgomery Schyler’s comments on the opening of the Brooklyn Bridge, when he stated that “the work which is likely to be our most durable monument, and to convey some knowledge of us to the most remote posterity, is a work of bare utility; not a shrine, not a fortress, not a palace, but a bridge.”
I thought of the beauty of New York’s Mario Cuomo Bridge, a 3.1-mile cable-stayed twin-span bridge with eight traffic lanes, bicycle and pedestrian paths, six lookout points and room for future rapid transit. It was completed in 2018 and constructed under a design-build procurement model[i] at a cost of $3.98 billion. Accelerated bridge construction (ABC) techniques were utilized in its construction. ABC techniques employ innovative planning, design, materials, and construction methods in a safe and cost-effective manner to reduce the on-site construction time that occurs when building new bridges or replacing and rehabilitating existing ones. ABC techniques improve site constructability, total project delivery time, work-zone safety for the traveling public and traffic impacts, on-site construction time, and weather-related time delays.[ii]
I also thought of the gracefulness of Boston’s Leonard P. Zakim Bunker Hill Memorial Bridge, a 0.27-mile hybrid cable-stayed steel and concrete bridge with pedestrian and bicycle access that holds 10 lanes of traffic. The Zakim Bridge was completed in 2004 at a cost of approximately $100 million as part of the $24.3 billion Big Dig.[iii] Despite its elegant, streamlined appearance, the bridge was designed to be exceptionally strong, withstand winds over 400 miles per hour and endure a magnitude 7.9 earthquake.[iv]
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Lisa D. Love, JAMS
Nevada Assembly Passes Construction Defect Bill
October 30, 2013 —
CDJ STAFFThe Nevada Speaker says that AB401 gives contractors what they want, but a contractors’ group has asked a Senate committee to kill the bill. Supporters of AB 401 say that it clarifies what qualifies as a construction defect and shortens the statute of limitations.
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Construction Litigation Roundup: “That’s Not How I Read It”
June 05, 2023 —
Daniel Lund III - LexologyA general contractor seeking to litigate with its subcontractor concerning a construction project in Indiana found itself fighting in court against assertions by the sub that arbitration of the dispute was required.
The GC was already in litigation in federal court with the project owner. The GC filed a third-party demand against the sub, which was met with a motion to stay and to compel arbitration.
At the crux of the sub’s argument was this clause in its subcontract: “Subcontractor agrees that the dispute resolution provisions of the Prime Contract between [GC] and Owner, if any, are incorporated by reference as part of this Subcontract so as to be binding as to disputes between Subcontractor and [GC] that involve, in whole or in part, questions of fact and/or law that are common to any dispute between [GC] and Owner or others similarly bound to such dispute resolution procedures... ."
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Unpaid Subcontractor Walks Off the Job and Wins
September 01, 2016 —
John P. Ahlers – Ahlers & Cressman PLLCMake the following inquiry of your constructional lawyer, watch him/her sit up in his/her chair and give your question immediate attention: “I haven’t been paid, can I walk off the job?” The answer to this question is a strong “maybe, but it’s risky.” Walking off the project has a significant downside. The risk is that the judge who reviews your decision, sometimes years after the event, may not agree that the non-payment was a material breach and, thus, suspension of performance (walking off) is not justified.
A breach of contract occurs where, without legal justification, a party fails to perform any promise that forms a whole or part of the contract. Not all breaches are equal. Some failures to perform a promise are “nominal,” “trifling” or “technical.” These breaches do not excuse performance under the contract by the non-breaching party. If the breach is “material,” that is, goes to the essential purpose of the agreement, is a question that only a judge decides, and only after the decision was made as to whether to walk off the job or not. Therefore, before deciding whether to walk off the job, you have to second guess what a judge may decide under the circumstances. Since not all judges see things the same way, the decision is fraught with uncertainty and risk.
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John P. Ahlers, Ahlers & Cressman PLLCMr. Ahlers may be contacted at
jahlers@ac-lawyers.com
Surplus Lines Carriers Cannot Compel Arbitration in Louisiana
May 29, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe court denied the surplus lines insurer's motion to compel arbitration based on Lousiana's law prohibiting arbitrations of coverage disputes. Fairway Village Condominiums v. Independent Spec. Ins. Co., 2023 U.S. Dist. LEXIS 62135 (E.D. La. April 20, 2023).
The plaintiff's condominium complex was damaged by Hurricane Ida. A claim was filed with the insurer. The insurer made an initial advance payment of $200,000. Three additional payments were made bringing the total to $951,462.49, which was less than half of the proof of loss amounts submitted by plaintiff.
Plaintiff sued the insurer for breach of contract and bad faith. The insurer filed a motion to compel arbitration based upon an arbitration provision in the policy. Recognizing that Louisiana law prohibited enforcement of a policy's arbitration clause, the insurer argued it did not apply because it was a surplus lines carrier.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Superior Court Of Pennsylvania Holds That CASPA Does Not Allow For Individual Claims Against A Property Owner’s Principals Or Shareholders
January 07, 2015 —
William J. Taylor and Michael Jervis – White and Williams LLPIn Scungio Borst Assocs. v. 410 Shurs Lane Developers, LLC, the Superior Court of Pennsylvania held that an individual principal/shareholder of a property owner could not be held personally liable as an “agent of the owner” for unpaid invoices, penalties, and attorneys fees under the Pennsylvania Contractor and Subcontractor Payment Act (CASPA), 73 P.S. §§ 501-516, even though the property owner itself had failed to make payments allegedly due under a construction contract.
CASPA is a Pennsylvania statute which is designed to protect contractors and subcontractors from nonpayment and which, to that end, establishes rules and deadlines for payment under construction contracts between property owners, contractors, and subcontractors. An owner or contractor who does not adhere to the Act’s payment requirements is subject to the imposition of interest, penalties, and attorneys’ fees. In this recent case, the property owner, a limited liability company, had retained the plaintiff contractor to perform construction services on a condominium project. Upon completion of the work, the contractor was not paid approximately $1.5 million that it was owed under the contract. The contractor filed suit under CASPA to obtain the payment it was owed plus interest, penalties and fees, and named both the property owner and its individual principal as defendants. The trial court granted summary judgment to the individual principal on all claims asserted against him, and the contractor appealed, arguing that CASPA allows for claims against both a property owner and its principal when the principal is an “agent of the owner acting with the owner’s authority.”
Reprinted courtesy of
Michael Jervis, White and Williams LLP and
William J. Taylor, White and Williams LLP
Mr. Jervis may be contacted at jervism@whiteandwilliams.com; Mr. Taylor may be contacted at taylorw@whiteandwilliams.com
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Making Construction Innovation Stick
February 22, 2018 —
Tom Sawyer, Jeff Rubenstone, and Scott Lewis – ENRIntegrating innovations into construction workflows—rather than serially testing, piloting and discarding them—is a definition of success. Yet few innovations—even ones that shine in trials—are absorbed into practice. Many just quietly go away, sending the work of vetting and testing them down the drain. That leaves some firms wondering if most construction technology innovation efforts are a waste of time.
Reprinted courtesy of Engineering News-Record authors
Tom Sawyer,
Jeff Rubenstone and
Scott Lewis
Mr. Sawyer may be contacted at sawyert@enr.com
Mr. Rubenstone may be contacted at rubenstonej@enr.com
Mr. Lewis may be contacted at lewisw@enr.com
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