Cambridge Massachusetts Building Expert Directory

Quick Note: Be Careful with Pay if Paid Clauses (Both Subcontractors and General Contractors)

June 17, 2015 — Christopher G. Hill – Construction Law Musings
Aside from waiver of lien rights (something that will be illegal in Virginia after July 1, 2015), the most troublesome contractual impediment to payment for a subcontractor or supplier on a project often is the “pay if paid” clause. As a general rule, in Virginia, these clauses where drafted in the proper fashion, are enforceable. As I have said many times, in Virginia freedom of contract almost always wins out. While this is the case, I emphasize that such clauses must be very explicit and specific. Furthermore, and in something that should be obvious, these clauses are generally limited by the Courts of Virginia to only be enforceable and to only forgive the need for payment if the upstream contractor on the construction job has not been paid for the work that the sub claiming non payment has done. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Insurers Subrogating in Arkansas Must Expend Energy to Prove That Their Insureds Have Been Made Whole

July 30, 2019 — Michael J. Ciamaichelo - The Subrogation Strategist
Arkansas employs the “made whole” doctrine, which requires an insured to be fully compensated for damages (i.e., to be “made whole”) before the insurer is entitled to recover in subrogation.[1] As the Riley court established, an insurer cannot unilaterally determine that its insured has been made whole (in order to establish a right of subrogation). Rather, in Arkansas, an insurer must establish that the insured has been made whole in one of two ways. First, the insurer and insured can reach an agreement that the insured has been made whole. Second, if the insurer and insured disagree on the issue, the insurer can ask a court to make a legal determination that the insured has been made whole.[2] If an insured has been made whole, the insurer is the real party in interest and must file the subrogation action in its own name.[3] However, when both the insured and an insurer have claims against the same tortfeasor (i.e., when there are both uninsured damages and subrogation damages), the insured is the real party in interest.[4] In EMC Ins. Cos. v. Entergy Ark., Inc., 2019 U.S. App. LEXIS 14251 (8th Cir. May 14, 2019), EMC Insurance Companies (EMC) filed a subrogation action in the District Court for the Western District of Arkansas alleging that its insureds’ home was damaged by a fire caused by an electric company’s equipment. EMC never obtained an agreement from the insureds or a judicial determination that its insureds had been made whole. In addition, EMC did not allege in the complaint that its insureds had been made whole and did not present any evidence or testimony at trial that its insureds had been made whole. After EMC presented its case-in-chief, the District Court ruled that EMC lacked standing to pursue its subrogation claim because “EMC failed to obtain a legal determination that its insureds had been made whole . . . prior to initiating this subrogation action.” Thus, the District Court granted Entergy Ark., Inc.’s motion for judgment as a matter of law and EMC appealed the decision. Read the court decision
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Reprinted courtesy of Michael J. Ciamaichelo, White and Williams LLP
Mr. Ciamaichelo may be contacted at ciamaichelom@whiteandwilliams.com

Biden Unveils $2.3 Trillion American Jobs Plan

May 10, 2021 — Garret Murai - California Construction Law Blog
This past week, President Biden unveiled his American Jobs Plan, a $2.3 trillion dollar plan to upgrade the nation’s infrastructure over 8 years. As we wrote about this past month, the American Society of Civil Engineers recently issued its 2021 Infrastructure Report Card which gave the country’s infrastructure a cumulative grade point average across several areas including roads, public transportations and schools of a disappointing C-. According to a White House fact sheet on the American Jobs Plan, while the United States is the wealthiest county in the world it currently ranks 13th when it comes to the overall quality of its infrastructure. Infrastructure spending at the federal level has historically been paid for through the gas tax. Currently, that tax is 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel. The last time the federal gas tax was increased, however, was nearly 30 years ago in 1993. The reason for this long hiatus? Voter backlash and backlash by big businesses whose fleets still primarily rely on fossil fuels and diminishing returns as the number of electrical and hybrid vehicles increasingly hit the streets. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Construction Litigation Roundup: “The Jury Is Still Out”

October 30, 2023 — Daniel Lund III - Lexology
“The Seventh Amendment guarantees the right to a trial by jury for a legal claim in a civil action.” So, isn’t the law, well, the law? Well, perhaps. Some axioms to remember in contracting are that parties are typically able to agree in a contract to anything that is lawful, and that all such lawful agreements essentially become the “law” between the parties. It is on these principles that courts issue jurisprudence which becomes binding on future litigants – for example, concerning waiver of any right to trial by jury. Hence, when a second-tier subcontractor on a federal project sought a jury for a lawsuit it had against a general contractor’s sureties, the sub was successfully rebuffed by the sureties based upon a waiver to trial by jury contained in the relevant subcontract. The court noted various matters to be considered in connection with the generally enforceable jury waiver – including the conspicuousness of the waiver (and, therefore, whether the subcontractor “knowingly” agreed to the waiver), as well as the relative bargaining power of the parties to the agreement (here, the sub was self-proclaimed to be a “leader in the construction contracting field”) – and affirmed the legality of the waiver. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

RDU Terminal 1: Going Green

June 30, 2014 — Melissa Dewey Brumback – Construction Law in North Carolina
Last week, I had the fortune to join the Triangle USGBC for its “Talk & Walk” about the RDU Terminal 1 renovation project and its sustainable features. For those who haven’t had the chance, I recommend you check out the new terminal specifics the next time you find yourself jet-setting in or out of Raleigh on Southwest airlines. Terminal 1 has been in operation since 1981, with the last upgrade in 1991. The 2010 opening of the new Terminal 2 had, until now, cemented Terminal 1′s status as the airport’s ugly duckling- complete with the long, featureless metal addition abandoned to times past. While the $68 million Terminal 1 renovation cannot compete with the Terminal 2 $580 million budget, it nevertheless is an entirely re-imagined space. Better traffic flow (yes, you can now find where to go through security!), increased daylighting, a new canopy system, and commercial curb canopy (see photo) all complete the new architectural image. Clark Nexsen principals Irvin Pearce and Doug Brinkley explained the renovation, which included energy saving escalators- the first escalator system in North Carolina that slows down during non-use. Other sustainable features include LEED complaint flooring, 86% structural building re-use (slabs on grade, composite decks, and structural roof deck), and 28% reuse of exterior walls. Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Construction Law in North Carolina
Ms. Brumback can be contacted at mbrumback@rl-law.com

William Lyon to Acquire RSI Communities

February 22, 2018 — Dave Suggs - CDJ STAFF
According 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.” Read the court decision
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Reprinted courtesy of

5 Impressive Construction Projects in North Carolina

February 04, 2014 — Melissa Dewey Brumback – Construction Law in North Carolina
What are your top construction building projects in North Carolina? Do you have a “short list”? Author Ralitsa Golemanova of JW Surety Bonds does, and she has the reasoning behind them. Ralista’s Top 5, which all “present a different facet of exceptional modern design and construction” are presented below. For her full commentary and some great pictures of the projects, check out her full article. Her list, in no particular order, includes: 1. The North Carolina Museum of Art’s West Building Expansion The 127,000 square-feet West Building Expansion of the North Carolina Museum of Arts won the 2011 American Institute of Architects (AIA) Honor Award for Architecture. The Building is largely made of aluminum panels. One of its specificities is that it does not have any windows. Instead, visibility is ensured through 360 skylights that allow delicate natural light to enter the inner galleries. Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Construction Law in North Carolina
Ms. Brumback can be contacted at mbrumback@rl-law.com

Partners Nicole Whyte and Karen Baytosh are Selected for Inclusion in Best Lawyers 2021 and Nicole Nuzzo is Selected for Inclusion in Best Lawyers: Ones to Watch

September 28, 2020 — Bremer Whyte Brown & O’Meara, LLP
Bremer Whyte Brown & O’Meara, LLP is proud to announce that Partners Nicole Whyte and Karen Baytosh have been chosen for inclusion in Best Lawyers 2021 Edition! CEO/Founding Partner Nicole Whyte has been selected for the 2nd time by her peers for inclusion in the 27th Edition of The Best Lawyers in America, for her work in Family Law. Reno Partner Karen Baytosh is also being recognized by her peers for her work in Commercial Litigation. This is an outstanding recognition as only the top 5% of talent in the United States are chosen for inclusion in this publication. BWB&O is also excited to share Partner Nicole Nuzzo has been selected by her peers for her inclusion in the edition of Best Lawyers: Ones to Watch, for her work in Family Law. The “Ones to Watch” award gives recognition to attorneys who are earlier in their careers for outstanding professional excellence in private practice in the United States. Read the court decision
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Reprinted courtesy of Bremer Whyte Brown & O’Meara, LLP

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