Is Arbitration Okay Under the Miller Act? It Is if You Don’t Object
October 15, 2014 —
Christopher G. Hill – Construction Law MusingsI have discussed both payment bond claims under the Miller Act and alternate dispute resolution (ADR) here at Construction Law Musings on many an occasion. A question that is sometimes open is what to do when there is contractually mandated arbitration for claims “relating to the contract or the work.”
While here in Virginia, as in most places, the courts will almost automatically send any breach of contract case with such a clause to arbitration, a question exists whether the claim against the bond held by a surety that is not a party to the contract is subject to being referred. Well, in a recent opinion the District Court for the Eastern District of Virginia in Norfolk weighed in on this question where there was no opposition or objection to a motion to stay pending arbitration.
In U.S. for Use of Harbor Construction Co. Inc. v. THR Enterprises Inc. the Court considered a fairly typical payment dispute leading to a Miller Act claim. The general contractor and surety filed a motion to dismiss or alternatively stay the litigation based upon a clause in the contract between general contractor and subcontractor allowing the general contractor to elect the type of ADR to be used to resolve the dispute.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Fifth Circuit Asks Texas Supreme Court to Clarify Construction Defect Decision
November 07, 2012 —
CDJ STAFFThe Fifth Circuit Court has withdrawn its decision in Ewing Construction Company v. Amerisure Insurance Company, pending clarification from the Texas Supreme Court of its decision in Gilbert Texas Construction, L.P. v. Underwriters at Lloyd’s London. The Fifth Circuit had applied the Gilbert case in determining that a contractual liability exclusion barred coverage for faulty workmanship. The Insurance Journal reports that this decision was both applauded and criticized, with a concern noted that “an insurer would now have its pick of either the ‘your work’ exclusion or the contractual liability exclusion without the exception for subcontracted work.”
The Fifth Circuit is now asking the Texas Supreme Court two questions to clarify Gilbert, which Brian S. Martin and Suzanne M. Patrick see as a sign that the Court has realized that it overly expanded the scope of the earlier ruling. A response is expected from the Texas Supreme Court by spring 2013.
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A Sample Itinerary to get the Most out of West Coast Casualty’s Construction Defect Seminar
May 03, 2018 —
Beverley BevenFlorez-CDJ STAFFWith so many worthwhile events stretched across three days, as well as wanting to get out and explore the many attractions in Orange County, California, Construction Defect Journal has come up with a sample itinerary that balances work with recreation.
Day One: Wednesday, May 16th
9:00 a.m. – Breakfast at
Steakhouse 55 (Disneyland Hotel)
Meet up with colleagues at Disney’s Steakhouse 55 where you will find a more peaceful and upscale venue, perfect for networking or just catching up with friends.
10:00 a.m. -
Madara Spa at Disney’s Grand Californian Hotel
With a free morning, this is the perfect time to take advantage of one of the Disneyland Resort’s pools or schedule a massage at the Madara Spa located within the Grand Californian Hotel.
11:30 a.m. – Grab and Go Lunch at
The Coffee House (Disneyland Hotel)
Refuel with a salad or sandwich from one of Disneyland Resort’s quick service restaurants.
12:00 p.m. – Seminar Registration and Schwag Hunting
Start heading over to the seminar to register and be one of the first to check out the amazing exhibitors and grab the free items they have to offer. You don’t want to miss BHA’s golf challenge, where if you sink a putt you win a $25 Amazon gift card for yourself and BHA will match the $25 to the worthwhile WCC charities!
1:00 p.m. – Seminar Begins!
The afternoon starts with a not-to-be-missed panel, “Struggles and Successes of the Past 25 Years.” Next, you’ll learn about “Unwrapped and Unraveled - An insightful (or inciteful?) play at the
changing nature of the relationships between the parties in a wrap program who thought the wrap was supposed to take care of everything.”
3:00 p.m. – Afternoon Break
Get a cup of coffee or water, and head out into the exhibit hall. Don’t forget to go to BHA’s booth to enter to win Dodger tickets.
3:30 p.m. – Seminar Panels Continue
The seminar returns with two more amazing panels: “East Coast Meets West Coast –Hot Construction Defect Issues and Coverage Cases from the Other Coast” and “How to Conduct Your Claim Investigation and Early Claims Handling To Avoid Bad Faith Traps.”
6:00 p.m. – Attend an After Party
After taking a few minutes to unwind and freshen up, go and network as well as have some at one of the reception’s thrown by attending firms. No after party? Head over to the
Uva Bar at Downtown Disney for a cocktail and some people watching.
8:00 p.m. - Late Dinner at
Catal Restaurant (Downtown Disney)
Enjoy a relaxing and sumptuous meal at Catal in Downtown Disney, one of the famed Patina Group’s restaurants.
Day Two: Thursday, May 17th
7:30 a.m. – Breakfast in the Exhibit Hall
Take advantage of West Coast Casualty’s free breakfast, and peruse more exhibits. Check out BHA’s data process collection process and discover meaningful cost improvements that translate to reduced billing while providing superior accuracy and credibility.
8:30 a.m. – Seminar Panels
The seminar returns with more panels you won’t want to miss: “Recent Important Appellate Decisions in California, Nevada, and Arizona” and “Litigating In The Western States - A Judge’s Perspective.”
10:30 a.m. – Morning Break
Grab a cup of coffee or water and chat with your colleagues about the panels you just heard.
10:45 a.m. – Seminar Panel
Another important panel to finish the morning, “Subrogation is not the type of intervention I need. How a subrogated insurer affects construction defect matters.”
11:45 a.m. – Award Presentation
Find out this year’s winners of the Ollie, Legend of the Era and Silver Stars.
12:15 p.m. – WCC Luncheon
Network and chat with your colleagues at one of the meals provided by the seminar.
1:30 p.m. – Seminar Panel
Now that you’ve recharged, you’re ready for another incredible WCC panel: “What Comes Around (Sometimes) Goes Around: Dealing with Recalcitrant Carriers.”
2:30 p.m. – Afternoon Break
Stretch your legs in the exhibit hall and get yourself more schwag. Learn about BHA’s expanding market presence and full range of services in Texas, Florida, and across the Southeast United States.
3:00 p.m. – Seminar Panels Continue
Don’t miss the last two panels of the day: “Effective Use of Experts” and “Claims Managers Speak - A Retrospective & Prospective Discussion.”
5:30 p.m. – Cocktail Reception
With your glass of Cabernet, network with colleagues and then try your hand again at BHA’s golf challenge to win an Amazon gift card and earn money for WCC charities.
6:30 p.m. – Hit the Pool or Jacuzzi
Take those tired feet and soak them in one of the Disneyland Resort’s many pools and jacuzzi’s. Or schedule a spa treatment at
Madara in the Grand Californian Hotel.
7:00 p.m. – After Party or Ball Game
Now that you’ve given yourself some time to rejuvenate, you’re ready to meet up with friends and colleagues at one of the after parties and receptions. Or if you’re a sports fan and want a break from work, go cheer on the
Angel’s as they play Tampa Bay.
8:30 p.m. –
Uva Bar
Unless you chose to go to the game, enjoy a late supper and cocktail under the beautiful southern California sky at the Uva Bar in Downtown Disney.
Day Three: Friday, May 18th
7:30 a.m. – Breakfast at the Seminar
Take advantage of another free meal, and take the time to check out more exhibits as the last day of the seminar begins. Don’t forget to enter BHA’s raffle for Dodger tickets!
8:30 a.m. – Breakout Sessions I
Choose between one of three breakout sessions: “Known Knowns and Known: Unknowns, the Ins and Outs of Extrapolation,” “Risk Transfer Alphabet Soup - A twelve year lookback on legislative tinkering with anti-indemnity statutes - where are we now?” or “Florida – Opening Pandora's Box and How to Close It.”
9:30 a.m. – Breakout Sessions II
Three additional breakout sessions to choose from: “An Update on California’s Right to Repair Act, featuring McMillin Albany et al. v. Superior Court,” “Finding Evidence for your Coverage Case,” or “Northwest Insurance Coverage and Extra-Contractual Issues.”
10:30 a.m. – Morning Break
Refuel with coffee or water before the next group of exciting breakout sessions begins.
11:00 a.m. – Breakout Sessions III
You’ll want to go to one of these three breakout sessions: “Subcontractor Wars: The Last AI,” “Mediating the Luxury Single Family Home Construction Defect Case,” or “Creative Solutions to the Florida Problem: Making No Contribution and No State Law Work for You.”
12:00 p.m. – Breakout Sessions IV and the End of the Seminar
The seminar closes with the last trio of breakout sessions: “Everyone is a Small Player,” “Real World Solutions to the Real Problems Presented By Wrap Up Programs,” or “When Mother Nature Attacks, Are you Covered?”
1:30 p.m. – Lunch at
Corn Dog Castle in California Adventure Park OR
Hollinghead’s Delicatessen in Orange
If you’re a Disney lover, you’ll want to take advantage of the day by going to one of the Disney Resort Parks, of course. Get one of Disney’s amazing corn dogs at Corn Dog Castle in California Adventure Park.
Or if you would rather explore the greater Anaheim area, then head over to Hollinghead’s Delicatessen for a homemade sandwich and a glass of beer on tap.
3:00 p.m. –
Disney Entertainment OR Museum Exploring
If you chose to go to California Adventure, check out the event schedule for the day. Catch the show Frozen – Live at the Hyperion or get a
Fastpass for the Radiator Springs Racers and ride Soarin’ Around the World. If you purchased a two-park pass, don’t forget about Space Mountain or Star Tours located in the Disneyland Park.
North Orange county has many interesting museums. Head to the
Bowers Museum in Santa Ana or the
Muzeo in Anaheim.
7:00 p.m. – Dinner at the
Blue Bayou Restaurant OR the
Summit House Restaurant
Have a one-of-a-kind eating experience at the Blue Bayou in Disneyland Park. Enjoy a dinner in the midst of the Pirates of the Caribbean ride! If you wish to remain in the California Adventure Park, try an alfresco dinner at
Wine Country Trattoria or an indoor, upscale meal at
Carthay Circle.
After an afternoon perusing museums, enjoy a truly superb meal with attentive service at one of Anaheim’s premier restaurants, Summit House. Feeling like having some fun rather than a sedate meal? Head over to the
House of Blues in Anaheim for their Party Like It’s 1999! A Prince Tribute Party.
8:30 p.m. – Paint the Night Parade/Together Forever OR The Blind Rabbit Speakeasy
Head over to watch the
Paint the Night Parade at the California Adventure Park or the fireworks display,
Together Forever — A Pixar Nighttime Spectacular at the Disneyland Park. Be sure to check out the daily
event schedule for up to date information.
End your evening at Anaheim’s only speakeasy,
the Blind Rabbit, located in the Anaheim Meat Packing district. Be sure to check out their “rules” and reserve a table at this popular spot.
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Pennsylvania Reconstruction Project Beset by Problems
October 15, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Pittsburgh Post-Gazette reported that “[t]he Penn Avenue reconstruction project in Garfield, described as ‘a comedy of errors’ by one neighborhood leader, remains months behind schedule and has gone well over budget.”
The $4.7 million construction budget has increased “by at least $800,000,” according to the Pittsburgh post-Gazette. Problems included the underground utilities not on maps or mapped inaccurately, water lines breaking, and old streetcar tracks were discovered to have contaminated soil.
Rick Swartz, executive director of the Bloomfield-Garfield Corp., told the Gazette that the project has been “plagued with problems and poor communication from the very start.”
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Another Case Highlighting the Difference Between CGL Policies and Performance Bonds
January 07, 2015 —
David M. McClain – Colorado Construction Litigation During the summer of 2011, Ellis Construction hired Cool Sunshine Heating & Air Conditioning to install the HVAC systems in a single-family home it was building for Gary Doberman and Ellen Robertson in Boulder, Colorado. The homeowners took issue with much of the work performed on their home and tried to negotiate directly with Ellis Construction. When those negotiations broke down, the homeowners sent a notice of claim pursuant to the Construction Defect Action Reform Act, C.R.S. § 13-20-801, et seq. One of the defects alleged in the notice of claim was that the SEERS 13 compressor installed by Cool Sunshine was inappropriate for the system and that because it was installed to run on only one stage, it did not meet the City of Boulder’s code requirements for noise levels. The homeowners therefore requested that the compressor be replaced with a SEERS 20 compressor, which would comply with the Boulder City Code.
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David M. McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
Florida Construction Defect Decision Part of Lengthy Evolution
August 05, 2013 —
CDJ STAFFLawyers are still working out all the implications of Florida Supreme Court’s ruling in Maronda Homes. Three members of the firm Lowndes, Drosdick, Doster, Kantor & Reed PA, Alexander Dobrev, Michael S. Provenzale, and Tara L. Tedrow on the firm’s web site. They characterize it as a “consumer-protection oriented decision,” quoting the court that the “house is the fondest dream and largest investment, both emotionally and financially, for Florida families.”
The court found that Section 553.835 of the Florida laws could not be applied to construction that occurred before the statute become effective in July, 2012. They describe the underlying issue as “the culmination of forty years of evolution to the implied warranty of habitability that is granted by the builder of a new home to the purchaser.” This lead to a 2010 District Court decision that expanded the area covered from “merely the structure itself, along with improvements ‘immediately supporting the residence’” but also those “which provide ‘essential services’ which support the home, make it habitable, or are necessary for living accommodations.”
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The Credibility of Your Expert (Including Your Delay Expert) Matters in Construction Disputes
October 03, 2022 —
David Adelstein - Florida Construction Legal UpdatesHere is a quote from a judge in an order after the bench trial of a complex construction dispute between a prime contractor and subcontractor on a federal project:
The evidence received in this case demonstrates the dynamic nature of complicated construction projects. At every step, the details matter, and coordination and cooperation among the companies tasked with performing the job is essential. Thankfully, as even this case shows, most disagreements that arise as projects evolve are handled during construction, far away from a courthouse, by the professionals who know best how to achieve the ultimate goal of a completed project.
U.S. f/u/b/o McKenney’s, Inc. v. Leebcor Services, LLC, 2022 WL 3549980, *1 (E.D. Va. 2022).
This is a true statement. A statement that parties should remember as they navigate the nuances of a complicated construction project and dispute.
The facts of the case, however, would hardly be construed as a win for either party. Something else for parties to consider as they navigate the nuances of a complicated construction project and dispute.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Courthouse Reporter Series: Nebraska Court of Appeals Vacates Arbitration Award for Misconduct
November 18, 2024 —
Brendan J. Witry - The Dispute ResolverVacating an arbitration award is often seen as an uphill battle. Indeed, the U.S. Supreme Court has stated that “courts may only vacate an arbitrator’s decision ‘only in very unusual circumstances.’” Oxford Health Plans, LLC v. Sutter, 569 U.S. 564, 568 (2013). The Federal Arbitration Act provides limited grounds to seek the vacatur of an arbitration award. In Lund-Ross Constructors v. Duke of Omaga, LLC, ___ N.W.3d ___, 33 Neb.App.73, the Nebraska Court of Appeals found that an arbitrator’s conduct warranted the partial vacatur of the award, which granted relief to a subcontractor who filed a counterclaim after the arbitration hearing had closed.
Lund-Ross contracted with Duke of Omaha to build an apartment complex in Omaha. Lund-Ross, in turn, sub-contracted with A Raymond Plumbing. Following completion of the building, Owner withheld payment from Lund-Ross, who in turn, withheld payment from Raymond. Both Lund-Ross and Raymond filed mechanics liens and initiated suits; Raymond’s suit ultimately was dismissed for want of prosecution. Lund-Ross proceeded to arbitration with Owner, naming Raymond as a respondent. Raymond did not participate in the arbitration as a claimant at the time of the hearing.
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Brendan J. Witry, Laurie & Brennan LLPMr. Witry may be contacted at
bwitry@lauriebrennan.com
