Cambridge Massachusetts Building Expert Directory

Can Businesses Resolve Construction Disputes Outside of Court?

August 19, 2024 — Scott L. Baker - Los Angeles Litigation Blog
Time is of the essence in any construction project. So, if a dispute arises at any point, business owners generally wish to avoid the chance of a time-consuming case going to court. Can California construction businesses manage these disputes effectively outside of court? It is possible in some cases. Business owners should carefully consider these three steps. 1. Go Back to the Contract Even if the contract is at the center of the dispute, it is important to refer to any details regarding dispute resolution included within the document. It is common for contracts to have some form of a dispute resolution clause. In such a case, both parties should follow the steps outlined in that agreement. Read the court decision
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Reprinted courtesy of Scott L. Baker, Baker & Associates
Mr. Baker may be contacted at slb@bakerslaw.com

Wisconsin Federal Court Addresses Scope Of Appraisal Provision In Rental Dwelling Policy

September 05, 2022 — James M. Eastham - Traub Lieberman
In Higgins v. State Farm Fire & Cas. Co., No. 22-C-198, 2022 U.S. Dist. LEXIS 117477 (E.D. Wis. July 5, 2022), the Court addressed the often disputed question of whether an appraisal provision in an insurance policy is limited to disputes over valuation or extends beyond valuation to causation and/or coverage. The underlying loss in the Higgins case involved a fire at a rental dwelling owned by the Plaintiff and insured by State Farm under a Rental Dwelling policy for, among other things, fire losses. Subsequent to being notified of the fire, State Farm investigated and provided the Plaintiff with its estimated cost of repair. Plaintiff disputed the estimate, including the repairs necessary, and also sought additional sums for debris removal and lost rent. The insurance policy at issue in Higgins included an appraisal provision which provided: “If you and we fail to agree on the amount of loss, either one can demand that the amount of the loss be set by appraisal.” Pursuant to this provision, Plaintiff demanded that State Farm submit to an appraisal to resolve the parties' disagreements. State Farm responded by indicating that it would enter into appraisal over the areas where there were "pricing differences" but not areas where there were "scope differences." According to State Farm, there were a number of issues regarding the scope of repairs necessary to restore the dwelling to its pre-loss condition. Plaintiff disagreed with State Farm's position and did not seek to move forward with the appraisal process on only the items State Farm identified as appropriate for appraisal. Read the court decision
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Reprinted courtesy of James M. Eastham, Traub Lieberman
Mr. Eastham may be contacted at jeastham@tlsslaw.com

Contractor May Be Barred Until Construction Lawsuit Settled

November 06, 2013 — CDJ STAFF
In July, Pamar Enterprises was constructing a water main in Bad Axe, Michigan and an error on their part sent water and sewage into homes. This was similar to what happened when they constructed a water main in 2007 in Lyon Township. Now Michigan Representative Terry Brown wants the state to stop awarding contracts to Pamar until the lawsuits are resolved. “I’ve asked [the Michigan Department of Transportation] not to have any more contracts with Pamar,” said Mr. Brown. Mr. Brown is also seeking that the state withholds payments to Pamar. “I was assured that they would not be getting any more payments until the situation was satisfactorily resolved.” In the 2007 case, Pamar won in Oakland County Circuit Court, but the Michigan Court of Appeals, found that Pamar failed in its “duty to exercise reasonable care when it entered onto an altered private property.” Read the court decision
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Is it the End of the Lease-Leaseback Shootouts? Maybe.

September 07, 2020 — Garret Murai - California Construction Law Blog
It’s the case that has turned into a modern day Hatfield versus McCoy – McGee v. Torrance Unified School District, Case No. 8298122, 2nd District Court of Appeals (May 29, 2020) – a series of cases challenging the validity of certain lease-leaseback construction contracts in California. In shootout number one, James McGee sued the Torrance Unified School District challenging the validity of lease-leaseback contracts the District had entered into with general contractor Balfour Beatty Construction, LLC. Under California’s lease-leaseback statute, a school district can lease property it owns to a developer, who in turns builds a school facility on the property and leases the facility back to the school district. The primary benefit of the lease-leaseback method of project delivery is that a school district does not need to come up with money to build the facility because the district pays for the facility over time through lease payments to the developer. In shootout number one, McGee argued that Torrance Unified School District was required to competitively bid the lease-leasebacks projects. The 2nd District Court of Appeals disagreed. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Inside the Old Psych Hospital Reborn As a Home for Money Managers

October 28, 2015 — Simone Foxman – Bloomberg
It’s the most exclusive club for financiers in Dallas. With seven Jeffersonian-style buildings and manicured lawns, Old Parkland looks more like a college campus than a hive of private-equity firms, hedge funds, foundations and family offices. But the 9.5-acre site, where an abandoned hospital once stood, is now home to some of the city’s wealthiest investors. Old Parkland is the pet project of Harlan Crow, 66, a son of swashbuckling real estate developer Trammell Crow, whose empire was in tatters when he gave up control in the late 1980s. It’s also a symbol of a decades-long effort to rebuild the family’s legacy. Step inside any of the buildings and you might think you’re in a museum, with Rodin sculptures in the hallways, a 17th century antique sofa in a lobby and a piece of curtain Abraham Lincoln is said to have grabbed after being shot on display. Read the court decision
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Reprinted courtesy of Simone Foxman, Bloomberg

Appropriation Bill Cuts Military Construction Spending

June 15, 2011 — CDJ STAFF

The Hill reports that HR 2055, the Military Construction, Veterans Affairs (VA) and Related Agencies bill, has passed with only five votes in opposition. The bill cuts the budget for military construction spending by $2.6 billion due to anticipated base closures.

The bill includes $186 million for family housing construction by the Army, $100 million for family housing construction by the Navy and Marines, and $84 million for family construction by the Air Force, with an additional $50 million allocated for the DOD outside the military branches. By the act, these funds will remain available until September 30, 2016.

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FirstEnergy Fined $3.9M in Scandal Involving Nuke Plants

February 06, 2023 — Annemarie Mannion - Engineering News-Record
Having admitted to participating in the largest energy-involved bribery scandal in Ohio history, provider FirstEnergy Corp., based in Akron, has agreed to pay a $3.9-million fine for withholding lobbying and accounting information from the Federal Energy Regulatory Commission’s enforcement office. Reprinted courtesy of Annemarie Mannion, Engineering News-Record Ms. Mannion may be contacted at manniona@enr.com Read the full story... Read the court decision
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Don’t Be Lazy with Your Tenders

October 24, 2022 — Rick Erickson - Snell & Wilmer Real Estate Litigation Blog
Our clients probably spend significant time, money and effort refining and updating their contract provisions covering indemnification and the duty to defend claims arising on their projects. But they should also consider spending an appropriate and adequate amount of time, money and effort when sending notices, or “tenders,” to enforce those critical provisions. Tenders demanding defense and indemnity are strictly interpreted based on what the contract documents require. Getting tenders wrong can result in losing one of the most significant risk-shifting tools in the contract. It can also be a monumental mistake if insurance coverage for indemnification damages and defense costs are lost because of an inadequate tender. The legal definition of “tender” is simple; it is “[a]n unconditional offer of money or performance to satisfy a debt or obligation.” Black’s Law Dictionary 1479-80 (7th ed. 1999). Whereas “tender of defense” for insurance is “the act in which one party places its defense and all costs associated with said defense with another due to a contract or other agreement … [which] transfers the obligation of the defense and possible indemnification to the party to which the tender was made.” Int’l Risk Mgmt. Inst., Glossary. Thus, when claims arise on your projects, notice by tenders of defense and indemnity will often determine dispute resolution and available insurance proceeds. Read the court decision
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Reprinted courtesy of Rick Erickson, Snell & Wilmer
Mr. Erickson may be contacted at rerickson@swlaw.com

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