Cambridge Massachusetts Building Consultant Directory

Construction Litigation Roundup: “Apparently, It’s Not Always Who You Know”

December 16, 2023 — Daniel Lund III - Lexology
A respondent party in a pair of international arbitrations on the losing end of roughly $285,000,000 in adverse awards attacked the awards based upon arbitrator bias. “If there is one bedrock rule in the law of arbitration, it is that a federal court can vacate an arbitral award only in exceptional circumstances. … The presumption against vacatur applies with even greater force when a federal court reviews an award rendered during an international arbitration.” Applying the Federal Arbitration Act (according to the court, the international arbitrations were “seated” in the United States and fell under the New York Convention, such that the FAA is required to be the basis for vacatur efforts), the court examined assertions that certain alleged non-disclosures by the panel “concealed information related to the arbitrators’ possible biases and thereby ‘deprived [respondent] of [its] fundamental right to a fair and consensual dispute resolution process.’” The aggrieved party urged that one arbitrator’s undisclosed nomination of another arbitrator to serve as president of another arbitral panel – “a position that sometimes pays hundreds of thousands of dollars” – possibly influenced the second arbitrator to side with the first. Assertions were also levied that the arbitrators’ undisclosed work with the attorneys for the claimant in other arbitrations “allowed them to become familiar with each other, creating a potential conflict of interest.” Read the full story...
Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

Courts Will Not Second-Guess Public Entities When it Comes to Design Immunity

May 13, 2024 — Garret Murai - California Construction Law Blog
It was a bizarre confluence of events. Jorgen Stufkosky was driving on SR-154 in Santa Ynez, California. Martha Aguayo was driving on the same highway ahead of Stufkosky when she struck a deer causing it to fly across the centerline into traffic from the opposite direction. The deer struck a SUV causing its driver to lose control. The driver of the SUV crossed the same centerline where he collided head on with Stufkosky, killing him. Stufkosky’s children later sued the California Department of Transportation in the case Stufkosky v. California Department of Transportation, 97 Cal.App.5th 492 (2023), alleging that their father’s death was due to Caltrans’ negligent design of SR-153, inadequate number of deer crossing signs, and its high posted speed limit. While in the trial court, Caltrans filed a motion for summary judgment on the ground that Caltrans was immune from liability under Government Code section 830.6, the so called “design immunity” statute. The trial court agreed and the Stufloskys appealed. Read the full story...
Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Natural Hydrogen May Seem New in Town, but It’s Been Here All Along

April 22, 2024 — Elina Teplinsky & Sheila McCafferty Harvey - Gravel2Gavel Construction & Real Estate Law Blog
When it comes to renewable energy, hydrogen is hailed as a pivotal resource in the zero-carbon game plan. Hydrogen energy is accessible, produces lower greenhouse gas emissions and can use existing gas infrastructure to power electricity and heat, produce other gases and fuels, and more. Recently, a “new” type of hydrogen—has captured the attention of climate scientists. Natural hydrogen—often referred to as gold hydrogen—stands apart from other, more established types of hydrogen, which require extraction and expensive maneuvering to produce. Natural hydrogen exists underground in its pure form (i.e., it’s not combined with other molecules). Estimates vary, but some researchers suspect that Earth holds as much as five million megatons of hydrogen beneath our feet. Extracting just 2 percent of that supply, in theory, has the potential to get us to net-zero emissions for 200 years. From Past Prediction to Accidental Discovery Viacheslav Zgonnik, CEO of the Denver-based startup Natural Hydrogen Energy, told the New York Times that Russian chemist Dmitri Mendeleev (also known as the “Father of the Periodic Table”) wrote about the presence of natural hydrogen as long ago as 1888. Somehow, the information was lost along the way, and when pockets of such hydrogen were occasionally found, they were treated as anomalies. Reprinted courtesy of Elina Teplinsky, Pillsbury and Sheila McCafferty Harvey, Pillsbury Ms. Teplinsky may be contacted at elina.teplinsky@pillsburylaw.com Ms. Harvey may be contacted at sheila.harvey@pillsburylaw.com Read the full story...

Construction Industry Groups Challenge DOL’s New DBRA Regulations

December 16, 2023 — Bret Marfut - The Construction Seyt
Less than a month after taking effect, the Department of Labor’s (“DOL”) broad changes to the regulations implementing Davis-Bacon and Related Acts (“DBRA”) are facing legal challenges in two federal courts. These newly-filed lawsuits could change things for those trying to navigate the new regulatory landscape. Contractors on DBRA-covered contracts should keep an eye out for developments. On October 23, 2023, DOL’s final rule updating the regulations implementing DBRA became effective. The first major overhaul of its kind in forty years, the final rule made sweeping changes to the regulations governing payment of prevailing wages on most federally-funded construction contracts. Read the full story...
Reprinted courtesy of Bret Marfut, Seyfarth
Mr. Marfut may be contacted at bmarfut@seyfarth.com

McDermott International and BP Team Arbitrate $535M LNG Site Dispute

April 02, 2024 — Mary B. Powers - Engineering News-Record
BP and Kosmos Energy are seeking “maximum recoverable damages” of about $535 million in binding arbitration with contractor McDermott International over a claim that it failed to meet contract obligations on subsea pipeline installation for an estimated $4.8 billion liquefied natural gas project off Africa. Reprinted courtesy of Mary B. Powers, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story...

Reasonable Expectations – Pennsylvania’s Case by Case Approach to the Sutton Rule

February 12, 2024 — Melissa Kenney - The Subrogation Strategist
In Mutual Benefit Ins. Co. a/s/o Michael Sacks v. Koser, No. 1340 MDA 2023, 2023 Pa. Super. LEXIS 574, 2023 PA Super 252 (Mutual Benefit), the Superior Court of Pennsylvania discussed whether a landlord’s property insurer could file a subrogation action against tenants that had negligently damaged the landlord’s property. Despite there being more than one clause in the lease holding the tenants liable for the damages, the court held that because there was a provision requiring the landlord, not the tenants, to insure the leased building, the insurer could not subrogate against the tenants. In Pennsylvania, a tenant’s liability for damage to a leased premises in a subrogation action brought by a landlord’s insurer is determined by the reasonable expectation of the parties to the lease agreement. Under this approach, to determine if subrogation is permitted, the court considers the circumstances of the case and examines the terms of the lease agreement. In Mutual Benefit, the tenants leased and resided in a residential home pursuant to a lease agreement. The lease specifically addressed insurance, stating that landlord was responsible for obtaining insurance on the dwelling and the landlord’s personal property, and tenants were encouraged to procure separate insurance for their personal property. The lease also addressed liability for damage to the leased property, stating generally that the tenants were responsible for damage caused by the tenants’ negligence. Read the full story...
Reprinted courtesy of Melissa Kenney, White and Williams
Ms. Kenney may be contacted at kenneyme@whiteandwilliams.com

Stay of Coverage Case Appropriate While Court Determines Arbitrability of Dispute

April 22, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Fifth Circuit vacated a discovery order issued by the district court and remanded the case for issuance of a stay while the arbitrability of the coverage dispute was reviewed. Cameron Parish Recreation #6 v. Indian Harbor Ins. Co., et al., 2024 U.S. App. LEXIS 3804 (5th Cir. Feb. 19, 2024). The plaintiffs purchased surplus lines polices from various insurance companies to provide coverage for commercial properties. The policies included an arbitration provision for resolving any disputes. After plaintiffs were denied coverage for damage to their properties from Hurricane Laura, they sued the insurers. The insurers filed motions to compel arbitration and to stay the case. The district court refused the stay and ordered limited discovery into arbitrability. The insurers appealed. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

No Damages for Delay May Not Be Enforceable in Virginia

January 08, 2024 — Christopher G. Hill - Construction Law Musings
Anyone who reads Construction Law Musings with any regularity (thank you by the way) knows that the contract is king in most instances here in Virginia. Any commercial construction subcontractor in Virginia is likely also very familiar with so-called “no damages for delay” clauses in construction contracts. These clauses essentially state that a subcontractor’s only remedy for a delay caused by any factor beyond its control (including the fault of the general contractor), after proper notice to the general contractor, is an extension of time to complete the work. However, in 2015 the Virginia General Assembly passed a change in the law that precluded the diminishment of any right to claims for demonstrated additional costs prior to payment. This left open the question as to which types of “diminishment” would be barred by the statute. The recent case out of the Eastern District of Virginia federal court, Strata Solar LLC v. Fall Line Construction LLC, added a bit of clarity. Read the full story...
Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

CAMBRIDGE MASSACHUSETTS BUILDING CONSULTANT DIRECTORY AND CAPABILITIES