Brazil's Success at Hosting World Cup Bodes Well for Olympics
July 16, 2014 —
David Biller and Juan Pablo Spinetto – BloombergA month ago, everyone from soccer analysts to economists said Brazil would win the World Cup title while the monthlong tournament would be marred by unfinished stadiums, violence and horrific traffic. How things change.
Fans booed Brazil’s soccer team during the nation’s biggest-ever loss, a 7-1 pummeling by Germany last week which ended hopes of winning a record sixth championship. In the wake of the team’s 3-0 loss to the Netherlands in the consolation game, there have been calls from fans in the streets to President Dilma Rousseff to rebuild the national team.
Yet Brazil’s unprecedented defeats contrast with the organizational success of the world’s most-watched sports event, which went off without major hitches following months of public criticism about partially-finished stadiums, labor strikes and threats of mass protests. The results may bode well for the country’s ability to pull off a successful 2016 Summer Olympic Games in Rio.
Mr. Biller may be contacted at dbiller1@bloomberg.net; Mr. Spinetto may be contacted at jspinetto@bloomberg.net
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David Biller and Juan Pablo Spinetto, Bloomberg
Real Estate & Construction News Roundup (08/15/23) – Manufacturing Soars with CHIPS Act, New Threats to U.S. Infrastructure and AI Innovation for One Company
September 25, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, wildfires wreak havoc in Maui, JLL unveils an AI specifically for commercial real estate, the lasting effects of the CHIPS ACT, and more!
- So far, 11,000 JLL employees have used the company’s new proprietary large language model that has generative AI capabilities specifically for the commercial real estate industry. (Lindsey Wilkinson, Construction Dive)
- Since the enactment of the CHIPS Act, manufacturing activity has boomed with a nearly 80% increase from June 2022. (Sebastian Obando and Julia Himmel, Construction Dive)
- Construction-tech-focused investors among others have poured $35 million into an Israeli startup that develops leakage detection technology using artificial intelligence to prevent water damage. (Sharon Wrobel, Times of Israel)
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Pillsbury's Construction & Real Estate Law Team
The Role of Code Officials in the Design-Build Process
November 16, 2023 —
Grace Calengor - Construction ExecutiveBuilding codes are an integral part of the design-build process, but what role do building code professionals play throughout that process? Kevin McOsker, vice president of technology services for the government relations department at the International Code Council, breaks it down, from basic design to groundbreaking ideas to incorporating new technology and retrofitting older builds.
McOsker, whose experience includes serving as building official for the city of Las Vegas, is no stranger to striking architecture and the safety protocols that go along with it. He believes that safety protocol starts before the contractors begin building and that contractors should be involved throughout the entire journey.
Reprinted courtesy of
Grace Calengor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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TLSS Partner Burks Smith and Associate Katie Keller Win Summary Judgment on Late Reported Water Seepage Case in South Florida
November 18, 2019 —
Burks A. Smith, III & Kathryn Keller - Traub LiebermanOn July 9, 2019, Traub Lieberman Straus & Shrewsberry LLP Partner, Burks A. Smith, III and Associate, Kathryn A. Keller, secured Summary Judgment on behalf of a major homeowners’ insurer in a breach of contract action in the United States District Court for the Southern District of Florida. See Lehrfield v. Liberty Mutual Fire Insurance Company, 2019 WL2994270 (S.D. Fla. 2019). The underlying claim involved a water loss at the Plaintiffs’ residence allegedly resulting in $91,147.32 worth of damage to their home. The claim was reported eight (8) months after the alleged date of loss, and during the inspection, the adjuster observed rot, decay, mold, and warping wood, prompting the carrier to deny the claim based on the Seepage Endorsement. The Plaintiffs filed a breach of contract action alleging that the insurer breached the Policy by denying the claim.
Mr. Smith and Ms. Keller argued that Plaintiffs’ Policy with the insurer imposes a duty on the Plaintiffs to comply with the Duties After Loss conditions of the Policy, including the requirement to provide prompt notice of the loss and show the damaged property. As mentioned above, the Plaintiffs provided notice of the claim eight (8) months late, and performed various repairs prior to notifying the insurer of the claim. After the close of discovery, Mr. Smith and Ms. Keller filed a Motion for Summary Judgment on behalf of the insurer based on the late reporting, and further argued that the Plaintiffs had the burden of proving direct physical loss to property within the first 13 days of the loss, given the recent decision of Hicks v. American Integrity Insurance Company of Florida, 241 So.3d 925 (Fla. 3d DCA 1018). In Florida, when an insured fails to comply with their Duties After Loss, a presumption of prejudice to the insurer arises. Bankers Ins. Co. v. Macias, 475 So. 2d 1216, 1218 (Fla. 1985)). In order to recover, the Plaintiffs bear the burden of overcoming the presumption, and must prove that no prejudice existed. Id. Mr. Smith and Ms. Keller’s comprehensive arguments successfully proved to the Court that the Plaintiffs’ failure to timely report the claim prejudiced the insurer by prohibiting the insurer from being able to independently validate the loss, or distinguish between multiple causes of loss. Mr. Smith and Ms. Keller further argued that Plaintiffs did not meet their burden to prove that the insurer was not prejudiced by the Plaintiffs’ failure to comply with the Duties After Loss provision of the Policy. The Motion cited numerous cases and extensive analysis supporting the insurer’s position.
Reprinted courtesy of
Burks A. Smith, III, Traub Lieberman and
Kathryn Keller, Traub Lieberman
Mr. Smith, may be contacted at bsmith@tlsslaw.com
Ms. Keller may be contacted at kkeller@tlsslaw.com
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The Clock is Ticking: Construction Delays and Liquidated Damages
September 18, 2023 —
Tiffany Harrod - ConsensusDocsWith the on-going shortage of construction workers in the industry and other factors ranging from weather to procurement problems, the threat of project delay is real. When a contract contains a liquidated damages clause for assessing project delays, real financial consequences for contractors can result. Courts have long allowed parties to apportion contractual risks as they deem appropriate especially in the commercial context where the parties are considered to be sophisticated even if their bargaining power is not equal. Liquidated damage provisions such as those for delay that are found in construction contracts are not unusual but they must be crafted in such a way as to be enforceable and not violate public policy.
A liquidated damage clause in a construction contract is a customary way for the parties to deal with the possibility of delay in the completion of a project and the potential losses flowing from the delay.[
1] In their most basic form, the party in breach, which is more often than not the contractor, is obligated to pay the non-breaching party, usually the project owner, some fixed sum of money for the period that exceeds the designated completion date that was agreed upon in advance and memorialized in the contract. (It is after all no secret that these provisions are primarily for the owner’s benefit.) The non-breaching party is then compensated for losses associated with the delay without the time and expense of having to prove in either a civil suit or an arbitration proceeding what the actual damages are. This option is particularly attractive to project owners because the liquidated damages assessment can simply be withheld from payments owed to the contractor once the agreed-upon completion date has been passed.
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Tiffany Harrod, Peckar & AbramsonMs. Harrod may be contacted at
tharrod@pecklaw.com
Oregon Condo Owners Make Construction Defect Claim
January 13, 2014 —
CDJ STAFFResidents of two condominiums in Florence, Oregon have filed suits alleging that construction defects have led to water intrusion and damage. The two condominium projects were built by separate developers. Each association has brought its own lawsuit, according to an article in the Register-Guard.
The Bridgeport Landing condominium owners have sued CJ Cable LLC for $2.5 million. Cindy Cable said of lawsuit, “I’ve done everything I could do to get this resolved, and I still get sued.” She said that “the only way to get it corrected is with a lawsuit.”
Meanwhile, residents of the Stillwater Condominiums have sued Thomas Hornback Construction for $2.1 million. Hornback is reported to have denied the allegations made by the Stillwater owners, but says that any problems would be due to subcontractors or failure of the owners to maintain the buildings.
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Parties Can Agree to Anything In A Settlement Agreement………Or Can They?
October 17, 2023 —
Alexa Stephenson & Ivette Kincaid - Kahana FeldA settlement agreement is a contract. When parties to pending litigation enter into a settlement, they enter into a contract. Such a contract is subject to the general law governing all contracts. (T. M. Cobb Co. v. Superior Court (1984) 36 Cal.3d 273, 280 [204 Cal. Rptr. 143, 682 P.2d 338] [offers by a party to compromise under Code Civ. Proc., § 998].) Courts seek to interpret contracts in a manner that will render them “lawful, operative, definite, reasonable, and capable of being carried into effect’” without violating the intent of the parties. (Robbins v. Pacific Eastern Corp. (1937) 8 Cal.2d 241, 272–273; Kaufman v. Goldman, (2011) 195 Cal. App. 4th 734, 745.
A settlement agreement like a contract is a document that is typically negotiated between the parties to the agreement and it is up to the parties to determine its terms. Settlements take time and sometimes negotiating the settlement terms takes longer. This is especially true in complex litigation and multiparty matters where negotiating the settlement terms is just as contentious as litigating the matter. Just like contracts, in a settlement agreement the parties cannot agree to terms that violate public policy. A contract is thought to be against public policy if it results in a breach of law, harms citizens, or causes injury to the state. Contracts that are voided on public policy grounds carry no legal obligations. For example, an employer cannot force an employee to sign a contract that forbids the worker from joining a union.
Reprinted courtesy of
Alexa Stephenson, Kahana Feld and
Ivette Kincaid, Kahana Feld
Ms. Stephenson may be contacted at astephenson@kahanafeld.com
Ms. Kincaid may be contacted at ikincaid@kahanafeld.com
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Architect Blamed for Crumbling Public School Playground
January 22, 2014 —
Beverley BevenFlorez-CDJ STAFFThe city School Construction Authority (SCA) in Staten Island, New York, wants Ennead Architects to pay them $1.4 million to repair the playground at the Jerome Parker Educational Complex, according to Silive.com. Ennead Architects, based out of Manhattan, designed the William J. Clinton Presidential Center, and is currently working on the Vietnam Veterans Memorial Education Center in Washington, D. C. In the suit, as reported by Silive.com, SCA alleges, “the pavement has progressively cracked, buckled, become uneven and created pools of standing water, all presenting a safety hazard.” Silive.com stated that “an Ennead spokeswoman did not immediately return a telephone call” when asked to comment.
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