“A No-Lose Proposition?”
October 07, 2024 —
Daniel Lund III - LexologyA Miller Act payment bond surety and its principal general contractor both sued in federal court in New Orleans by a project subcontractor sought to compel arbitration the claims against both contractor and surety based on an indisputably enforceable arbitration clause in the subcontract. This was urged to avoid separate actions against the contractor (arbitration) and its surety (litigation), even though the surety was not a party to the subcontract and, therefore, not a party to the arbitration clause.
In the face of the lack of an express agreement to arbitrate, the contractor and contractor argued that “no federal statute or policy prohibits all of Plaintiff’s claims from proceeding to arbitration….” Additionally, those parties urged that the surety should be allowed to affirmatively compel arbitration because the surety “would otherwise have the ability to assert the right to compel arbitration as a defense….”
The New Orleans federal district court was unpersuaded:
“[D]istrict courts within this circuit have recognized that ‘Miller Act claims by a subcontractor for unpaid labor and materials are separate and distinct from those for general breach of contract… [and] arbitration and Miller Act suits, are not, per se, inconsistent with one another.’…[A]bsent express contractual intent to subject Miller Act claims to arbitration, the court [will] not force the parties to arbitrate claims against nonparties to the contract at issue…. [C]laims against a surety, which was a non-signatory to the contract, would not be subject to arbitration without any contractual basis to do so.”
Read the full story...Reprinted courtesy of
Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Developers Can Tap into DOE’s $400 Million for Remote and Rural Clean Energy Projects
December 10, 2024 —
Robert A. James, Elina Teplinsky, Alicia M. McKnight, Sidney L. Fowler & Clarence H. Tolliver - Gravel2Gavel BlogOn October 3, 2024, the Department of Energy Office of Clean Energy Demonstrations announced a Notice of Funding Opportunity (NOFO) to fund up to $400 million for clean energy projects in rural and remote areas via its Energy Improvements in Rural or Remote Areas program. The NOFO will provide awards ranging from $2 million – $50 million, with plans to fund 20 to 50 projects. Awards will require a non-federal cost share, range across four topic areas, and target projects in rural and remote communities with populations of 10,000 people or fewer.
Eligibility
Applications are open to a wide range of entities, including for-profit and nonprofit organizations, state and local governmental entities, Indian Tribes and Tribal organizations, institutions of higher education, rural electric cooperatives, incorporated and unincorporated consortia, farming associations and cooperatives, and labor unions. Generally applicants must be U.S. entities, but foreign entities may be allowed to participate in limited circumstances. Applicants must identify at least one area in the U.S. or U.S. territories with a population of up to 10,000 people which will benefit from the proposal.
Reprinted courtesy of
Robert A. James, Pillsbury,
Elina Teplinsky, Pillsbury,
Alicia M. McKnight, Pillsbury,
Sidney L. Fowler, Pillsbury and
Clarence H. Tolliver, Pillsbury
Mr. James may be contacted at rob.james@pillsburylaw.com
Ms. Teplinsky may be contacted at elina.teplinsky@pillsburylaw.com
Ms. McKnight may be contacted at alicia.mcknight@pillsburylaw.com
Mr. Fowler may be contacted at sidney.fowler@pillsburylaw.com
Mr. Tolliver may be contacted at clarence.tolliver@pillsburylaw.com
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New Jersey Law Firm Announces $4 Million Settlement from Construction Site Accident
November 11, 2024 —
Greenberg Minasian, LLCWEST ORANGE, N.J., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Greenberg Minasian, LLC, a personal injury law firm located in Essex County, New Jersey, has announced a $4 million settlement stemming from a roofer who suffered serious injuries after a construction site fall. Veteran trial attorney Mitchell Goldstein represented the injured client, who suffered multiple fractures and injuries, permanently affecting his ability to work.
In 2018, Robert Smith, who was 61 at the time, fell backward through or over a temporary guard rail at the American Dream Mall in East Rutherford, NJ. The 30-foot fall caused him to suffer serious injuries to his pubis, sacrum, clavicle, and humerus, leading to multiple surgeries and a hip replacement.
On behalf of his client, Mr. Goldstein brought suit against the mall developer and construction company, successfully arguing that the temporary guardrails were improperly constructed and insufficiently elevated according to Occupational Safety and Health Administration (OSHA) guidelines. The case was settled just two days before trial, marking a significant victory for the plaintiff and his family.
Despite the defense's attempt to argue that Mr. Smith was responsible for his fall, Goldstein was able to refute their claims, asserting that the temporary guardrail's improper construction directly led to the accident.
About Greenberg Minasian LLC
Based in West Orange, Greenberg Minasian represents clients who have been seriously injured as the result of negligence by others. The firm handles cases anywhere in New Jersey including West Orange, Jersey City, Newark, Essex County and all surrounding areas. The firm continues to achieve the highest awards for its clients and families.
Supreme Court Eliminates Judicial 'Chevron' Deference to Federal Agency Statutory Interpretations
July 31, 2024 —
Jane C. Luxton - Lewis BrisboisWashington, D.C. (July 1, 2024) – In a much-anticipated decision, on June 28, 2024, the Supreme Court issued a sweeping opinion “overrul[ing]” a 40-year old precedent that required judges to defer to federal agency interpretations of their governing statutes when those laws were ambiguous or silent. Loper Bright Enterprises v. Raimondo, et al. No. 22-451 (2024), overruling Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984).
The decision means that courts will no longer give special weight to an agency’s view of the scope of its regulatory powers but must apply independent judgment in deciding “whether an agency has acted within its statutory authority.” Loper Bright, slip op. at 35. Taking pains to explain that the new ruling would not allow for reversals of cases previously decided under the Chevron doctrine, the Court left no doubt that, in the words of Justice Neil Gorsuch, “[t]oday, the Court places a tombstone on Chevron no one can miss.” Id., Gorsuch Concurring Opinion at 1.
Writing for a 6-2 majority, Chief Justice Roberts forcefully condemned the Chevron-based principle that courts should defer to a federal agency’s interpretation of the scope of its legal authority, rejecting the concept that agencies have any special expertise in statutory interpretation, a field reserved to the courts, not the executive branch, under Article III of the Constitution and the Administrative Procedure Act, 5 U.S.C. § 551 et seq.
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Jane C. Luxton, Lewis BrisboisMs. Luxton may be contacted at
Jane.Luxton@lewisbrisbois.com
Business Risk Exclusion Dooms Coverage for Construction Defect Claim
January 21, 2025 —
Tred R. Eyerly - Insurance Law HawaiiThe First Circuit, following Massachusetts law, found that coverage for allegations against the insured contractor for faulty workmanship were barred by the policy's (j) (6) Exclusion. Admiral Ins. Co. v. Tocci Bldg. Corp., 2024 U.S. App. LEXIS 28439 (1st Cir. Nov. 8, 2024).
Tocci Building Corporation was the construction manager for an apartment project owned by Toll JM EB Residential Urban Renewal LLC (Toll). There were several work quality issues and delays on the project and Toll eventually terminated Tocci for alleged mismanagement of the project. Toll then filed a lawsuit against Tocci.
The claims against Tocci included (1) damage to sheetrock resulting from faulty roof work; (2) mold formation resulting from inadequate sheathing and water getting into the building; and (3) damage to a concrete slab, wood framing, and underground pipes resulting from soil and settlement due to improperly backfill and soil compaction.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Staffing Company Not Entitled to Make a Claim Against a Payment Bond and Attorneys’ Fees on State Public Works Payment Bonds
August 12, 2024 —
Garret Murai - California Construction Law BlogIt’s not quite Baskin Robbin’s “31 Flavors” but the panoply of statutory construction payment remedies available to contractors, subcontractor and material suppliers in California, from mechanics liens to stop payment notices to payment bond claims, can be tempting to reach for when you are not paid. However, some flavors are more readily available than others, as a staffing agency discovered in
K & S Staffing Solutions, Inc. v. The Western Surety Company, Case Nos. C096705 and C097987 (January 2, 2024).
The K & S Staffing Case
The California Department of Transportation awarded VSS International, Inc. two public works construction contracts for road maintenance. Each involved an expenditure of over $25,000 and VSSI obtained a payment bond from Western Surety Company.
Titan DVBE Inc. was a subcontractor on both projects. For most years, Titan employed its own workers. However, when it learned that its insurance carrier would no longer be offering workers’ compensation insurance in California it switched to K & S Staffing Solutions, Inc. to fulfill its staffing needs.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
FEMA Offers Recovery Tips for California Wildfire Survivors
January 14, 2025 —
FEMAWASHINGTON -- While fire suppression activities are still ongoing in parts of Southern California, affected individuals and families are taking steps toward recovery.
FEMA is helping people jumpstart their recovery. You may be eligible for FEMA assistance, even if you have insurance. More than $5.3 million so far are in the hands of survivors to help pay for emergency supplies like food, water and baby formula as well as to replace personal property and pay for a temporary place to stay. Below are tips to help Californians recover from the historic wildfires.
If your primary home was affected by the fires, FEMA may be able to help you cover certain costs – like paying for essential items, finding a place to stay, replacing personal property or making basic repairs to your home. However, FEMA assistance is designed to help you if you do not have insurance or if your insurance policies don't cover basic needs. If you have insurance, you should file a claim as soon as possible and be ready to provide your coverage information when applying to FEMA.
There are several ways to apply for FEMA assistance:
To view an accessible video about how to apply visit:
FEMA Accessible: Registering for Individual Assistance or
en Español.
Insurers' Motion to Determine Lack of Occurrence Fails
August 19, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court, interpreting Massachusetts law, found there were genuine issues of fact as to whether the insured's mixing of biodiesel with home heating fuel was an occurrence. United States Fire Ins. Co. v. Peterson's Oil Serv., Inc., 2024 U.S. Dist. LEXIS 106980 (D. Mass. June 17, 2024).
Homeowners sued Peterson's Oil Service, alleging that Peterson sold them fuel for home heating which contained more that 5% biodiesel. The homeowners further alleged that fuel containing more than 5% biodiesel did not meet industry standards and caued damage to their home heating equipment. Peterson allegedly did not fully disclose the presence of biodiesel in their fuel, despite knowing the risk posed by high-biodiesel blended fuel.
The insurers, United States Fire Insurance Company and The North River Insurance Company, defended Peterson under a reservation of rights. United States Fire issued priomary policies with limits of $1,000,000 per occurrence and $2,000,000 as a general aggregate limit. An endorsement titled "Limited Coverage - Failure to Supply" limited the amount covered for "property damage arising out of the failure of any insured to adequately supply gas, oil, water, electricty or steam" to $250,000. North River issued umbrella policies with additional coverage in the amount of $15,000,000 per occurrnce and in the aggregate if property damage was caused by an occurrence. The umbrella policies also contained a "Failure to Supply Exclusion" which excluded coverage for "property damage arising out of the failure of an insured to adequately supply gas, oil, water, electricty or steam."
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com