Construction Litigation Roundup: “A Fastball Right to the Bean!”
May 06, 2024 —
Daniel Lund III - LexologyThe Metropolitan Municipality of Lima, Peru, filed suit in federal court in Washington DC to vacate two separate arbitration awards rendered against the city in international arbitration proceedings subject to the Federal Arbitration Act.
The city had contracted to build, improve, and maintain various highways in and around the city. To pay for this infrastructure, Lima agreed that the contractor would “receive revenues from existing and new toll booths.”
Apparently, the City of Lima forgot how much citizens of the area loathed tolls, and, according to the court, the local public officials “quickly truckled” (how apropos for a road project!) to the pressure. As a result, revenues promised to the contractor were not forthcoming, and the city did nothing about it.
The contractor initiated arbitration, and the city countered by arguing that the contractor had bribed its way into the contract. The city lost and was held in breach.
Read the full story...Reprinted courtesy of
Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Experts: Best Bet in $300M Osage Nation Wind Farm Dispute Is Negotiation
March 11, 2024 —
Daniel Tyson - Engineering News-RecordNearly two months after a federal judge ruled that renewables developer Enel Green Power North America must deconstruct 84 land-based wind turbines because it did not secure mineral rights on Osage Nation land in northern Oklahoma, two energy sector attorneys say the unit of an Italy-based company must negotiate with the tribe.
Reprinted courtesy of
Daniel Tyson, Engineering News-Record
Mr. Tyson may be contacted at tysond@enr.com
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Washington’s Court of Appeals Protects Contracting Parties’ Rights to Define the Terms of their Indemnity Agreements
March 19, 2024 —
Margarita Kutsin - Ahlers Cressman & Sleight PLLCIt has long been the law in Washington that contracting parties are free to draft contractual indemnity agreements to allocate risk arising from performance of the work, and Courts will generally enforce those agreements as written. This well-settled principle was recently reaffirmed in King County v. CPM Development Corp., dba ICON Materials[1] a decision from Division I of the Washington Court of Appeals, wherein one party to an indemnity agreement attempted to evade its contractual obligations by arguing that certain common law indemnity principles supersede the written terms. This appeal followed a multi-week jury trial from which the client and Ahlers Cressman and Sleight legal team, including Lindsay Watkins, Klien Hilliard, and Christina Granquist, obtained a seven-figure judgment in the client’s favor, including an award of all attorneys’ fees and costs.
ICON was the general contractor on a Vashon Island Highway Pavement project for King County. Part of the work on the project involved hauling away and disposing of ground milled asphalt (the “millings”) at King County-approved sites. ICON and D&R Excavating Inc., (“D&R”) executed a subcontract for D&R to perform that work. The subcontract incorporated the contract between ICON and King County, including the obligation to stockpile millings only at approved sites. D&R, however, did not obtain the requisite approvals from King County, and placed the millings at various sites on the Island, including locations that King County explicitly rejected.
Read the full story...Reprinted courtesy of
Margarita Kutsin, Ahlers Cressman & Sleight PLLCMs. Kutsin may be contacted at
margarita.kutsin@acslawyers.com
Veolia Agrees to $25M Settlement in Flint Water Crisis Case
February 19, 2024 —
James Leggate - Engineering News-RecordEngineering firm Veolia North America agreed to a $25-million settlement to resolve a federal class action case related to its work for the city of Flint, Mich., during the city’s lead-in-water crisis, the company and attorneys for the plaintiffs announced Feb. 1. Veolia is the second engineering firm that worked for the city to settle with city residents, and the deal came ahead of a class-action trial scheduled to start later this month.
Reprinted courtesy of
James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
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New Jersey Court Upholds Registration Requirement for Joint Ventures Bidding on Public Works Contracts
December 16, 2023 —
Nicholas J. Zaita & Brian Glicos - Peckar & Abramson, P.C.Introduction
In a matter of “first impression,” on November 30, 2023, the Appellate Division affirmed the New Jersey Superior Court decision in
Ernest Bock & Sons-Dobco Pennsauken Joint Venture v. Township of Pennsauken and Terminal Construction Corp., finding that the New Jersey Public Works Contractor Registration Act, N.J.S.A. 34:11-56.48 to -56.57 (“PWCRA” or the “Act”), applies to a joint venture formed for the sole purpose of bidding on a public works contract. Therefore, the Court held that the PWCRA requires any joint venture bidding on public works projects in New Jersey to be registered under the Act at the time of bid submission. Accordingly, the Township of Pennsauken acted within its authority and properly rejected the bid submission of the Ernest Bock & Sons-Dobco Joint Venture which was not registered under the Act in the name of the joint venture at the time of its bid submission, despite the individual members of the joint venture being registered.
Reprinted courtesy of
Nicholas J. Zaita, Peckar & Abramson, P.C. and
Brian Glicos, Peckar & Abramson, P.C.
Mr. Zaita may be contacted at nzaita@pecklaw.com
Mr. Glicos may be contacted at bglicos@pecklaw.com
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Insured Cannot Sue to Challenge Binding Appraisal Decision
December 16, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe court dismissed the insured condominium association's challenge to an appraisal award. The Courtyards at Prairie Fields Condominium Association v. West Band Mut. Ins. Co., 2023 U.S. Dist. LEXIS 169458 (N. D. Ill. Sept. 22, 2023).
In July 2020, the insured filed a claim with West Bend for damage to the property's roof and other building components as a result of wind and hail. West Bend inspected and estimated the replacement cost for the damage was $60,989.54. This amount was paid to the insured minus the $10,000 deductible. The insured believed the damage was so severe that the roofs need to be replaced, which the insured estimated would cost $1,389,600. The insured demanded an appraisal.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
ABC Safety Report: Construction Companies Can Be Nearly 6 Times Safer Than the Industry Average Through Best Practices
May 06, 2024 —
Associated Builders and ContractorsWASHINGTON, April 30, 2024 (GLOBE NEWSWIRE) -- Associated Builders and Contractors today announced the findings from its
2024 Safety Performance Report, an annual guide to construction jobsite health and safety best practices. The report is unveiled to coincide with
Construction Safety Week, May 6-10.
The annual safety report also provides a comprehensive understanding of the impact of deploying
ABC's STEP Safety Management System, which enables top-performing ABC members to achieve incident rates 576% safer than the U.S. Bureau of Labor Statistics construction industry average. Established in 1989, STEP provides contractors and suppliers with a robust, no-cost framework for measuring safety data and benchmarking with peers in the industry.
ABC's research on more than 900 million work hours completed by participants in the construction, heavy construction, civil engineering and specialty trades in 2023 identified the following foundations of industry-leading safety best practices:
- Top management engagement: Employer involvement at the highest level of company management produces a 54% reduction in total recordable incident rates, or TRIR, and a 52% reduction in days away, restricted or transferred rates, or DART rates.
- Substance abuse prevention programs: Robust substance abuse prevention programs/policies with provisions for drug and alcohol testing where permitted lead to a 47% reduction in TRIR and a 48% reduction in DART rates.
- New hire safety orientation: Companies that conduct an in-depth indoctrination of new employees into the safety culture, systems and processes based on a documented orientation process experience incident rates that are 45% lower than companies that limit their orientations to basic health and safety compliance topics.
- Frequency of toolbox talks: Companies that conduct daily, 15-to-30-minute toolbox talks reduce TRIR and DART rates by 81% compared to companies that hold them monthly.
The 2024 ABC Safety Performance Report is based on submissions of unique company data gathered from members that deployed during the 2023 STEP term, Jan. 15-Dec. 15. ABC collects each company's trailing indicator data as reported on its annual Occupational Safety and Health Administration Form 300A ("Summary of Work-Related Injuries and Illnesses") and its self-assessment of leading indicator practices from its STEP application. Each data point collected is sorted using statistically valid methodology developed by the BLS for its annual Occupational Injuries and Illnesses Survey and then combined to produce analyses of STEP member performance against BLS industry average incident rates. The report demonstrates that applying industry-leading processes dramatically improves health and safety performance among participants regardless of company size or type of work.
Any company can participate in STEP. Visit abc.org/step to begin or continue your safety journey.
How I Prevailed on a Remote Jury Trial
March 04, 2024 —
Samuel Yu - Kahana FeldAre you crazy? That is what I asked my client when he asked me to conduct a jury trial remotely. At the time, I did not even know if it was feasible. While I figured that most courtrooms had remote capabilities, I was not sure whether anyone was crazy enough to do a jury trial remotely and whether a courtroom would accommodate it. Would I be able to truly connect with the jurors? Would the jurors hold it against me that I am appearing remotely while they have to be there in person? I told my client that this was a terrible idea but that I would at least see if it was an option.
At the Final Status Conference, the Court confirmed that it could accommodate a remote appearance for both the party and the party’s counsel and gave its permission to do so. It was also clear that I would be the only attorney exercising this option, and the judge remarked that this would be a first for him. Appearing remotely while other attorneys appear in person is not something I would normally consider. However, this case presented a unique set of circumstances.
Read the full story...Reprinted courtesy of
Samuel Yu, Kahana FeldMs. Yu may be contacted at
syu@kahanafeld.com