Court of Appeals Finds Arbitration Provision Incorporated by Reference Unenforceable
September 20, 2021 —
Garret Murai - California Construction Law BlogSubcontractors have gotten accustomed to incorporation clauses in their contracts. While an incorporation clause can incorporate any document, most typically, it’s the prime contract between the general contractor and the project owner. Subcontractors will sometimes even accept these documents sight unseen which can be a recipe for disaster. But not in the next case.
In Remedial Construction Services, LP v. AECOM, Inc., Case No. B303797 (June 15, 2021), the 2nd District Court of Appeal examined whether a subcontractor was bound to an arbitration provision contained in a prime contract that was incorporated by reference into the subcontractor’s contract. In this case, it was the prime contractor who was in for a surprise.
The Remedial Construction Case
In 2015, Shell Oil Products US, LLC entered into a prime contract with AECOM Technical Services, Inc. for the demolition, remediation and restoration of the Gaviota oil terminal in Goleta, California. AECOM in turn entered into a subcontract with Remedial Construction Services, LP to perform portions of the work. When AECOM refused to pay Remedial for delay costs asserted by Remedial, Remedial filed suit.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Brookfield to Start Manhattan Tower After Signing Skadden
April 15, 2015 —
David M. Levitt – BloombergBrookfield Property Partners LP said it will start building its 1 Manhattan West office tower, after signing a lease with the law firm Skadden, Arps, Slate, Meagher & Flom LLP for about a quarter of the skyscraper.
The agreement, announced Tuesday in a statement by New York-based Brookfield, jump-starts office construction at the 7 million-square-foot (650,000-square-meter) Manhattan West project, part of an effort to draw the Midtown business district west toward toward the Hudson River. It’s another step in the plan to remake the once-industrial Hudson Yards area into a neighborhood for housing and commerce, with office tenants including Coach Inc. and Time Warner Inc. and stores such as the city’s first Neiman Marcus.
The Skadden law firm agreed to a 20-year lease for 550,000 square feet on floors 28 to 43 of the 67-story tower.
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David M. Levitt, Bloomberg
Environmental Justice Legislation Update
May 17, 2021 —
Anthony B. Cavender - Gravel2GavelEnvironmental Justice, as an urgent priority of the Federal Government, dates back to 1994, and President Clinton’s issuance of Executive Order 12898. This order directed federal agencies to identify and address, as appropriate, the disproportionately high and adverse human health and environment effects of its many programs, policies and procedures on minority populations and low-income populations. The primary legal basis for this order was Title VI of the Civil Rights Act of 1964, in particular, Sections 601 and 602, which prohibit discrimination in programs and activities receiving federal financial aid and assistance. Over the years, the Supreme Court has reviewed the scope and importance of Title VI. In Alexander v. Sandoval, decided in 2001, the Court concluded that while private parties could sue to enforce Section 601 or its implementing regulations, as written, Section 601 only prohibits intentional discrimination. Noting that disproportionate impact is not the sole touchstone of invidious racial discrimination. Moreover, the Court also ruled in Sandoval that private parties cannot sue to enforce regulations implementing Section 602. Perhaps as an acknowledgement of these shortcomings, the Environmental Protection Agency (EPA) has established an administrative system to process environmental justice complaints at 40 CFR Part 7. Without strengthening the statutory base of environmental justice, the program may continue to be the subject of countless symposiums and seminars. However, this may change soon.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
The Top 3 Trends That Will Impact the Construction Industry in 2024
December 04, 2023 —
The Hartford Staff - The Hartford InsightsAs more than 40% of the current U.S. construction workforce will retire in the next decade, industry leaders need to equip themselves with the necessary resources to combat the shifting work environment.1
“Trends in the construction industry will fluctuate in the coming years, which can lead to additional risks for industry leaders. It will be important to think about how they can address any potential risk factors. A lot of leaders have been increasing their planning efforts and looking into technology solutions to combat the ongoing labor shortage,” said David DeSilva, head of construction at The Hartford. Here, he outlines the top three top trends for business leaders to watch in 2024.
1. Ongoing Labor Shortages
Construction is an industry that traditionally has a high labor turnover rate, which means companies needs to hire more frequently. This only increases during labor shortages. The construction workforce is up against several factors, including an aging workforce and recruitment struggles.
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The Hartford Staff, The Hartford Insights
Lewis Brisbois Successfully Concludes Privacy Dispute for Comedian Kathy Griffin Following Calif. Supreme Court Denial of Review
November 19, 2021 —
Lewis BrisboisLos Angeles, Calif. (October 18, 2021) - On October 13, 2021, the California Supreme Court declined to review a published, unanimous opinion of the Court of Appeal in favor of comedian Kathy Griffin and her husband, Randy Bick. The plaintiff-appellants claimed Ms. Griffin and Mr. Bick violated their privacy rights by using home security cameras to record “every move and every communication” in the plaintiffs’ private back yard.
Ms. Griffin and Mr. Bick maintained that the lawsuit was filed by their neighbors in retaliation after the husband directed what the Court of Appeal described as “an expletive-laden rant” at Ms. Griffin and Mr. Bick. The neighbor's rant was recorded by security cameras and reported in the media, as well as publicized during Ms. Griffin’s performances at the Dolby Theater.
In the trial court, Ms. Griffin and Mr. Bick successfully moved for summary adjudication of the plaintiffs’ privacy causes of action. In July 2021, the
Court of Appeal affirmed, calling the appellants’ claims “hyperbole.”
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Lewis Brisbois
One World Trade Center Due to Be America’s Tallest and World’s Priciest
February 10, 2012 —
CDJ STAFFAs One World Trade Center rises, so does the price tag. After construction delays and cost overruns, the cost of the building at the site of the September 11 attacks has risen to $3.8 billion. Part of the expense of the skyscraper is the heavily reinforced base of the building. The elevator shafts are also heavily reinforced, all part of guarding against future terrorist attacks.
In comparison, the world’s tallest tower, the Burj Khalifa in Dubai, cost only $1.5 billion, less than half the cost of One World Trade Center. As a result, the Port Authority does not see the building as being profitable in near future. In order to fund it, the agency is raising tolls on bridge and tunnel traffic.
Currently, about the half the unfinished building is leased. Construction is expected to conclude in 2013.
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Pennsylvania Civil Engineers Give the State's Infrastructure a "C-" Grade
November 28, 2022 —
American Society of Civil EngineersPENNSYLVANIA. — The Pennsylvania Council of the American Society of Civil Engineers (ASCE) released the 2022 Report Card for Pennsylvania's Infrastructure today at three congruent news conferences across the state including Harrisburg, Lehigh Valley, and Pittsburgh, with 15 categories of infrastructure receiving an overall grade of a "C-". This is the same grade issued by the council in its 2018 report. A "C-" means Pennsylvania's infrastructure is in mediocre condition and requires attention. Pennsylvania's aviation and rail networks are helping to drive economic growth in the region and an improved roadway network is helping increase efficiency for the regional and national economies, but an aging infrastructure network and struggling water systems threaten the health, safety and welfare of the region. Civil engineers graded aviation (B-), bridges (D+), dams (C), drinking water (D), energy (C), hazardous waste (B-), levees (C), parks (C+), ports (C+), rail (C), roads (C-), solid waste (C+), stormwater (D), transit (D), and wastewater (D-).
"Considering Pennsylvania's aging infrastructure and its critical role in our state's economy, policy makers must continue to prioritize dedicated funding to update and improve all infrastructure assets," said Rep. Mike Carroll, D-118. "Failure to do so will seriously harm the quality of life for every citizen."
"This report shows that Pennsylvania's infrastructure has seen some noteworthy improvements and that our lawmakers are prioritizing the built environment, but out-of-sight, out-of-mind systems such as water and wastewater pipelines are lacking the necessary attention," said David DiGioia, chair, 2022 Report Card for Pennsylvania's Infrastructure. "With help from the Bipartisan Infrastructure Law, we could improve our communities for generations if we double down on investment and close our funding gaps across all sectors included in this report."
The Report Card was created as a public service to citizens and policymakers to inform them of the infrastructure needs in their state. Civil engineers used their expertise and school report card-style letter grades to condense complicated data into an easy-to-understand analysis of Pennsylvania's infrastructure network. ASCE State and Regional Infrastructure Report Cards are modeled after the national Infrastructure Report Card, which gave America's infrastructure an overall grade of 'C-' in 2021.
To view the report card and all five categories, visit https://infrastructurereportcard.org/state-item/Pennsylvania/.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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Bally's Secures Funding for $1.7B Chicago Casino and Hotel Project
August 12, 2024 —
Annemarie Mannion - Engineering News-RecordPlans for a $1.7-billion casino and adjacent 34-story hotel are advancing in Chicago as the gaming operator reports it has secured $940 million to complete funding for the project and has set demolition for a printing press building now occupying the site for this summer.
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Annemarie Mannion, Engineering News-Record
Ms. Mannion may be contacted at manniona@enr.com
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