Best Lawyers Honors Hundreds of Lewis Brisbois Attorneys, Names Four Partners ‘Lawyers of the Year’
September 16, 2024 —
Lewis Brisbois Newsroom(August 15, 2024) - Best Lawyers has selected 171 Lewis Brisbois attorneys across 47 offices for its 31st edition of The Best Lawyers in America. It has also recognized four Lewis Brisbois partners on its "Lawyers of the Year" list: San Diego Partner Gary K. Brucker Jr. (Litigation - Real Estate); Weirton Managing Partner Michelle L. Gorman (Mass Tort Litigation/Class Actions - Defendants); Roanoke Partner Paul C. Kuhnel (Medical Malpractice Law - Defendants); and Los Angeles Co-Administrative Partner Steven R. Lewis (Product Liability Litigation - Defendants).
Please join us in congratulating the following attorneys on their Best Lawyers recognition! You can see the full list of attorneys named to Best Lawyers' Ones to Watch in America
here.
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Lewis Brisbois
Construction Litigation Roundup: “Too Soon?”
July 02, 2024 —
Daniel Lund III - LexologyNot at all, said the Louisiana Supreme Court, in a case dealing with the timing of filing of a claim for indemnity.
In the case, a Louisiana intermediate appellate court had earlier ruled in very short order on a supervisory writ application (reversing the trial court) that a claim for indemnity (based upon an indemnity clause in a construction contract) was “premature” until a “determination that damages are actually owed and the indemnitee sustains a loss. … At this time, the lawsuit is still pending against [the putative indemnitee], and no determination of liability had been made; thus, there is no obligation for indemnity and defense costs. … Stated differently, indemnity (or reimbursement) is not available at this time because [the indemnitee] has not discharged a liability which [the indemnitor] should have assumed or otherwise suffered any loss or damages. … Accordingly, [the] cause of action for indemnity and defense is not ripe for adjudication.” Bennett v. Demco Energy Servs., LLC, 2023-0581 (La. App. 1 Cir. 09/11/23); 2023 La. App. LEXIS 1449.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
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."
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Construction Litigation Roundup: “D’Oh!”
August 12, 2024 —
Daniel Lund III - LexologyThe U.S. DOL found itself on June 24 on the wrong end of a preliminary injunction concerning recent changes to the Davis-Bacon Act.
The lawsuit, initiated in Texas federal court by the Associated General Contractors of America and other concerned citizens, sought a preliminary injunction barring implementation and enforcement of “specified portions of § 5.2 and § 5.5(e) of the DOL’s ‘Updating the Davis-Bacon and Related Acts Regulations’” – the “Final Rule,” published August 23, 2023.
After determining the appropriateness of the “standing” of the plaintiffs based upon the plaintiffs being “adversely affected” by the Final Rule, the federal court preliminarily enjoined enforcement of the Final Rule. In noting its disagreement with the Final Rule, the court stated:
“… the Final Rule amends the DBA [the Davis-Bacon Act] by imposing a stealth selfimplementing DBA requirement in the contract by an operation-of-law provision that contradicts the express statutory language of the Act [the court bristling at the idea that contracts might exclude with impunity the otherwise mandated DBA clauses]. Further, the Final Rule amends the Act to extend the DBA to apply to workers who are not mechanics and laborers, and to extend the scope of the work covered by DBA to include work is not performed ‘directly on the site of the work.’
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
A Game of Texas Hold’em: How Texas Stopped Wage Increases for Salaried Exempt Employees Nationwide
December 03, 2024 —
Matthew DeVries - Best Practices Construction LawConstruction contractors often have to deal with classification of employees, particularly those who work in the home office. Today’s guest post by
Alexandra Shulman and
Leah Lively addresses a recent court decision affecting the wage protection of employees under the the Fair Labor Standards Act (FLSA).
On November 15, 2024, a federal court in Texas vacated a U.S. Department of Labor (DOL) rule (the “2024 Rule”) that increased the minimum salary threshold for employees classified as exempt from overtime and minimum wage protections under the FLSA. The Texas court’s decision nullifies the 2024 Rule nationwide, effective immediately.
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Matthew DeVries, BuchalterMr. DeVries may be contacted at
mdevries@buchalter.com
Are Mechanic’s Liens the Be All End All of Construction Collections?
August 12, 2024 —
Christopher G. Hill - Construction Law MusingsFor those of you familiar with
Construction Law Musings, you are aware of my affinity and discussion of those
powerful but tricky collection tools: mechanic’s liens. You have heard me tout their ability to secure payment when a contractor or subcontractor has not been paid on a construction project (
even in the face of bankruptcy). If you read my construction law blog regularly (though recently not-so-regularly updated), you could get the impression that a mechanic’s lien is an automatic avenue to payment.
While
mechanic’s liens can be a powerful collection tool, this post is going to discuss some pros and cons of recording, and ultimately suing to enforce, a mechanic’s lien in Virginia.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
New Change Order Bill Becomes Law: RCW 39.04.360
July 08, 2024 —
Brett M. Hill - Ahlers Cressman & Sleight PLLCA new statute (RCW 39.04.360) became effective on June 6, 2024, and it applies to extra work performed by contractors and subcontractors on public and private projects in Washington State. The intent of the original bill was to allow contractors and subcontractors to get paid sooner for undisputed additional work. The statute does not apply to private residential projects of 12 units or less. The statute allows for recovery of interest for contractors/subcontractors at 1% per month (12% per year) on the value of the additional work if the statute is violated.
Here are the requirements of the new statute:
- Public and private owners must issue a change order for the undisputed amount of additional work performed by a contractor, subcontractor, or supplier no later than 30 days after the work is satisfactorily completed and the change is requested by the contractor.
- General contractors, and subcontractors with lower-tier subs, must issue a change order to their subcontractors impacted by the change within 10 days after receipt of the approved change order from the owner/upper-tier contractor.
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Brett M. Hill, Ahlers Cressman & Sleight PLLCMr. Hill may be contacted at
brett.hill@acslawyers.com
Subcontractor Strikes Out in its Claims Against Federal Government
July 08, 2024 —
David Adelstein - Florida Construction Legal UpdatesIs it a good idea for a subcontractor to sue the federal government? A recent case would suggest NO–way too many huge hurdles for the subcontractor to overcome. No matter how creative the arguments may be, it’s a high mountain to climb.
In Fox Logistics & Construction Co. v. U.S., 2024 WL 2807677 (Fed.Cl. 2024), a subcontractor sued the federal government when it was not paid by the prime contractor. The subcontractor claimed it was a third-party beneficiary under the government’s modifications to the prime contractor’s payment procedure, or alternatively it had an implied-in-fact contract with the government. The Court of Federal Claims granted summary judgment in favor of the government. The subcontractor, while creative, struck out in its claims based on the hurdles in a subcontractor suing the federal government.
This case involved upgrading an air force base. The subcontractor performed most of the work. The prime contractor had cash flow problems and did not pay the subcontractor. The government got involved to enforce provisions of its contract to force the prime contractor to pay subcontractors and even modified the payment procedure by having future payments to the prime contractor deposited into a new bank account that government could monitor. This ultimately did not work, and the prime contractor filed for bankruptcy. The subcontractor claimed it was owed millions–apparently, it was not able to recover the money through the prime contractor’s bankruptcy—and pursued claims against the federal government in an effort to recover money it was owed.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com