Changes to the Federal Rules – 2024
November 18, 2024 —
William L. Doerler - The Subrogation StrategistUnless Congress moves quickly, several amendments to the Federal Rules of Civil Procedure and Evidence will take effect December 1, 2024. Below is a brief description of the amendments.
Rules of Evidence
Rule 107 is a new rule. This rule addresses illustrative aids, stating that, if such aid helps the trier of fact to understand the evidence or an argument, a party may use the aid if its utility is not substantially outweighed by the danger of, among other things, unfair prejudice. As noted under the discussion of Rule 1006, below, an illustrative aid - offered only to help the trier of fact understand the evidence - is generally not admissible into evidence.
Rule 613 currently states that extrinsic evidence of a witness’s prior inconsistent statement is admissible only if the witness is given an opportunity to explain or deny the statement and the adverse party is given an opportunity to examine the witness about it, or if justice so requires. As amended, the court has the discretion to forego this requirement.
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William L. Doerler, White and Williams LLPMr. Doerler may be contacted at
doerlerw@whiteandwilliams.com
Insuring Lease/Leaseback Projects
August 19, 2024 —
David G. Jordan & Jeffrey J. Vita - Saxe Doernberger & Vita, P.C.Overview
Several states utilize a unique statutory mechanism to allow school districts to finance the construction of public-school facilities. This arrangement (known as a “lease-leaseback agreement”) allows a school district to lease property to a contractor/developer, who then constructs or renovates a school facility on the property. Once the work is completed, the contractor/developer leases the school building back to the school district. The school district then makes lease payments over time, often many years, which can be structured in various ways to spread out the cost of construction. The arrangement typically requires a site lease for the land leased to the contractor/developer, a facilities lease for the lease-back of the school building to the school district and a traditional construction agreement. In some ways, the arrangement resembles a Public-Private Partnership (PPP) whereby a public entity collaborates with a private entity for the purpose of financing and delivering a project traditionally provided solely by the public sector.
Reprinted courtesy of
David G. Jordan, Saxe Doernberger & Vita, P.C. and
Jeffrey J. Vita, Saxe Doernberger & Vita, P.C.
Mr. Jordan may be contacted at DJordan@sdvlaw.com
Mr. Vita may be contacted at JVita@sdvlaw.com
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Delays and Suspension of the Work Under Fixed Price Government Contract
July 22, 2024 —
David Adelstein - Florida Construction Legal UpdatesHere is an interesting fact pattern and case decided by the Civilian Board of Contract Appeals dealing with (1) force majeure type events and epidemics (Covid-19); (2) suspension of the work; and (3) delays. These are three topics important to all contractors including federal contractors.
In Lusk Mechanical Contractors, Inc. v General Services Administration, 2024 WL 1953697, CBCA 7759 (CBCA 2024), a contractor entered into a fixed price contract with the government to repair, replace, and modernize site and building systems at a federal building. The contractor commenced work right before Covid-19. When Covid-19 hit, the government issued the contractor a two-week suspension of work notice on March 27, 2020. The suspension of work allowed off-site administrative work to continue but suspended on-site physical work. The government extended the suspension of work three more times. The contractor could resume work on the exterior on June 1, 2020, but was not permitted to resume work on the interior until July 20, 2020. On the same date that the contractor was able to commence interior work, it submitted a modification for delay caused by the suspension – 64 days for the time period the entire site shutdown, and 51 days for the interior work shutdown.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Suffolk Construction Drywall Suits Involve Claim for $3 Million in Court Costs
November 11, 2024 —
Richard Korman - Engineering News-RecordSuffolk Construction lost a breach-of-contract contract lawsuit in July with a former drywall subcontractor's surety—but the contractor's payout may dramatically increase if the presiding U.S. district court judge in Miami allows the surety to collect $3 million more in requested attorneys' fees and trial costs.
Reprinted courtesy of
Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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What Every Project Participant Needs to Know About Delay Claims
August 05, 2024 —
Andrew G. Vicknair - The Dispute ResolverA “delay” on a construction project is defined as the stretching out of the time for completion of certain key milestone scopes of work which can impact the completion date of an entire project, due to some circumstances or events that were not reasonably anticipated when the project began. 2 Construction Law ¶ 6.01 (Matthew Bender, 2024). While delays can be caused by any number of events, the most common are defective plans and specifications; design changes; severe weather and other, similar unforeseeable events; unforeseen or differing site conditions; unavailability of materials or labor; labor inefficiencies or stoppages; contractor negligence; and owner influences, including construction changes or outright interference by the owner or its agents. If the project schedule is not recovered following a delay, then the project schedule will likely be extended, resulting in an increase in the contractor’s costs of performance. A contractor that has experienced a delay on a project can take certain actions to pursue recovery of any damages the contractor may have incurred. However, to do so it is important to understand the different types of delays and the methods for establishing the delays.
I. Types of Delays
Delays may be categorized as (1) critical versus non-critical delays, (2) excusable versus non-excusable delays, and (3) compensable versus non-compensable delays. A critical delay is a delay that affects the project completion date and delays the entire project. In essence, a critical delay is one that will extend the critical path of a project. A non-critical delay is a delay that has no effect on the project’s critical path. Courts have recognized that delays to work not on the critical path will generally not delay the completion of a project. G.M. Shupe, Inc. v U.S., 5 Cl. Ct. 662, 728 (1984). Such a non-critical delay may affect the completion of certain activities, but does not affect the completion date of the entire project. In order for a delay to provide the basis for a claim for additional time or money, the delay must impact critical path activities on the project schedule.
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Andrew G. Vicknair, D'Arcy Vicknair, LLCMr. Vicknair may be contacted at
agv@darcyvicknair.com
Will AI Completely Transform Our Use of Computers?
July 22, 2024 —
Aarni Heiskanen - AEC BusinessLast November, I received a newsletter from Bill Gates titled “AI is about to completely change how we use computers.”
Gates begins his letter with a prediction:
“Five years from now, you won’t have to use different apps for different tasks. You’ll simply tell your device, in everyday language, what you want to do—whether it’s drafting a document, making a spreadsheet, scheduling a meeting, analyzing data, sending an email, or even buying movie tickets.“
Gates dives deeper into the topic in his
blog post.
Revolution in Computing
Gates discusses the revolutionary impact of AI on computing, comparing it to the transformative effects of mobile phones and the Internet.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Historical Long-Tail Claims in California Subject to a Vertical Exhaustion Rule
December 03, 2024 —
Will S. Bennett - Saxe Doernberger & Vita, P.C.California’s complex saga of long-tail injury coverage under general liability policies took an interesting turn in the California Supreme Court’s recent decision in Truck Ins. Exch. v. Kaiser Cement.1 In Truck, the court made it clear that Insureds can access excess policy limits without first exhausting all triggered underlying primary coverage, provided the underlying limits for the same policy period have been exhausted.
A Brief Summary of the History of Coverage for Long-Tail Claims in California2
Understanding the contextual significance of Truck requires a brief survey of California’s gradually developed case law with respect to long-tail progressive injury and damage claims. A “long-tail claim” typically involves progressively manifesting damage, injury, or disease that develops over a period of multiple years. Because general liability insurance is traditionally triggered based on the timing of when bodily injury or property damage occurs, the progressive nature of these claims has led many courts to analyze when injury or damage occurs in these claims. In doing so, California courts have generally found that these injuries occur across numerous years, thereby triggering numerous policies.3
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Will S. Bennett, Saxe Doernberger & Vita, P.C.Mr. Bennett may be contacted at
WBennett@sdvlaw.com
“For What It’s Worth”
October 21, 2024 —
Daniel Lund III - LexologyThe legal doctrine of quantum meruit is essentially referring to recovering “for what it’s worth,” incorporating the Latin phrase for “as much as one has deserved.”
Quantum meruit recovery occurs when there is no contract between parties for the particular item for which recovery is sought. Hence, quantum meruit recovery is generally a means of last resort to endeavor to make oneself whole.
So, it was for a subcontractor seeking nearly $14,000,000 for work it performed on a construction project in Portsmouth, New Hampshire. The subcontractor sued on contract as well as quantum meruit/unjust enrichment. The court initially dismissed the quantum meruit/unjust enrichment claims – because there was a contract claim – whereupon the contract claim was dismissed on summary judgment: the subcontractor failed to timely submit change proposals and, consequently, “lost contract remedies available to recover amounts it sought in the change proposals.”
Read the full story...Reprinted courtesy of
Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com