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Dispute Among Joint Venture Partners and Joint Venture Agreement

January 28, 2025 — David Adelstein - Florida Construction Legal Updates
In a dispute involving joint venture partners and a joint venture agreement, one of the partners sued a third party (which purchased the assets of the other partner). Claims against the third party included tortious interference of the joint venture agreement between the partners, conspiracy to tortiously interfere with the joint venture agreement between the partners, aiding and abetting a breach of fiduciary duty by the other partner, and conspiracy with the other partner to breach a fiduciary duty. The dispute was tried in a non-jury trial. The other partner and the third party prevailed. A few key points on the above claims asserted against the third party that failed:

Tortious interference of the contract -- Since the trial court found that the other partner did NOT breach the joint venture agreement, the cause of action for tortious interference failed. “No cause of action for tortious interference with a contract can exist in the absence of a breach.”
Conspiracy to tortiously interfere with a contract -- “If an underlying tort [e.g., tortious interference] has not been established, a count for conspiracy to commit that tort will not lie.”

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Hard to Believe It, Construction Law Musings is 16

January 07, 2025 — Christopher G. Hill - Construction Law Musings
On this date back in 2008 (wow, that seems so long ago), I began Construction Law Musings on the Blogger platform with a brief announcement. Little did I know that this corner of the internet (or is it Blawgosphere?) would still be around in 2024! In the time since I made that short entry 16 years ago (I know, I can’t believe it either), I’ve met several construction lawyers here in Virginia who refer to me as the “blog guy.” To be recognized for the work I do here at Construction Law Musings, something that benefits me (and I hope the readers), and which I do for the fun of it, is an honor. The blog has since taken on a life of its own in many respects, allowing me to meet some of the great construction pros who have provided a guest post or two for Musings and added their different perspectives. Musings also kept me up on at least most of the trends in Virginia construction law by making me post consistently (though sometimes less consistently than others). Now, around 975 posts and 16 years later, I find it hard to believe that so much time has passed and effort has been put into what started on a whim and the plan that I’d post thoughts on the legal landscape and construction from the perspective of a Virginia construction lawyer. Read the full story...
Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Construction and AI: What Contractors Need to Know from ABC’s New Report

November 05, 2024 — Aarni Heiskanen - AEC Business
The Associated Builders and Contractors (ABC) has just released its fourth annual construction technology report, which dives deep into AI’s evolving role in the construction industry. “ABC contractor members and the overall contracting community want more information on AI and how it can help them improve safety, quality and profitability—and win more work,” said Matt Abeles, ABC vice president of construction technology and innovation. The newly released ABC AI Tech Report delivers on this need, highlighting AI-driven case studies, resources, and thought leadership from ABC’s Tech Alliance. Understanding AI’s Role in Construction The report provides a comprehensive AI Resource Guide, breaking down the basics of artificial intelligence and how it applies to construction. Understanding AI is key for contractors to stay competitive in the rapidly changing industry. Read the full story...
Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

You Cannot Always Contract Your Way Out of a Problem (The Case for Dispute Resolution in Mega and Large Complex Construction Projects)

September 16, 2024 — Lisa D. Love - The Dispute Resolver
Most experienced commercial transaction and construction attorneys strive to negotiate a concisely written and well-drafted contract that addresses all scenarios and issues that creative and highly contemplative professionals can conjure. Although contracts are extremely important in construction projects, “you can’t generally contract your way out of a problem,” states Michael Loulakis, a founder of Capital Project Strategies, LLC and a nationally recognized expert on project delivery systems in complex public sector design-build projects and public-private partnership programs. Loulakis adds, “the contract certainly matters. But particularly when the losses are big, litigators prosecuting the contractors often find effective ways to argue that facts and circumstances trump the contract.” However, “the difference between the best construction projects and the worst construction projects is not the written words of the contracts but how the parties have committed to engage collaboratively and with trust to complete the project,” notes Robynn Thaxton, an attorney and consultant with Thaxton Parkinson PLLC and Progressive Design-Build Consulting, LLC and one of the leading experts in construction law and alternative procurement on a national basis.[i] In large, complex construction projects, the need for parties to collaboratively resolve disputes is highlighted by the judicial acceptance of the “Doctrine of the Contextual Contract”[ii] to interpret construction contracts. “As construction’s increasing technological and managerial complexity came to be recognized, some common law courts began turning away from strict interpretation of language within the four corners of a contract and moving toward recognizing in the enforcement of contracts the construction industry’s own experience, customs, practices and implied conditions and duties and the factual context underlying the contract. Courts [began the journey] along the road from ‘text’ to ‘context.’”[iii] Thus, the precise wording of the contract has become less important and industry practices and other conditions provide insight for resolving disputes. Consequently, despite the specific language of any construction contract and the clear allocation of responsibilities and risks, early dispute evaluation and resolution are critical to a successful project. Read the full story...
Reprinted courtesy of Lisa D. Love, JAMS

New Mexico Holds One-Sided Dispute Resolution Provisions Are Unenforceable

November 05, 2024 — Bill Wilson - Construction Law Zone
Dispute resolution provisions that grant one party the unilateral right to choose either litigation or arbitration to resolve disputes are common in the construction industry. The main difference between the two forums is that courts are more likely to strictly enforce contract terms as written as well as the applicable law, while arbitrators make decisions on more equitable considerations, untethered to the contract terms and—to some degree—the law. The party with the sole discretion to select the dispute resolution procedure can select the process most beneficial to its interests based on the nature of the dispute, regardless of who brings the claims. In Atlas Electrical Construction, Inc. v. Flintco, LLC, 550 P.3d 881 (N.M. Ct. App. 2024), the Court of Appeals of New Mexico recently held that an arbitration provision in a subcontract, under which the contractor retained the exclusive right to choose whether disputes arising under the subcontract were litigated in court or arbitrated was unreasonably one-sided, substantively unconscionable, and unenforceable. The Atlas Electrical case involved two sophisticated entities with equal bargaining strength to negotiate the terms of a subcontract. The parties agreed to a subcontract provision which provided in the relevant part:

In the event [contractor] and [subcontractor] cannot resolve the dispute through direct discussions or mediation … then the dispute shall, at the sole discretion of [contractor], be decided either by submission to (a) arbitration … or (b) litigation …

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Reprinted courtesy of Bill Wilson, Robinson & Cole LLP
Mr. Wilson may be contacted at wwilson@rc.com

With Historic Removal of Four Dams, Klamath River Flows Again Unhindered

October 21, 2024 — Tim Newcomb - Engineering News-Record
In a period of 16 months, four dams built between 1903 and 1962 came down as part of a monumental effort to clear 35 miles of the Klamath River spanning Oregon and California. The project owner, the Klamath River Renewal Corp., describes it as the largest dam removal effort in U.S.—and possibly world—history. Reprinted courtesy of Tim Newcomb, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story...

Kahana Feld LLP Senior Attorney Rachael Marvin and Partner Dominic Donato Obtain Complete Dismissal of Plaintiff’s Labor Law Claims on Summary Judgment

August 19, 2024 — Rachel Marvin - Kahana Feld
Kahana Feld attorneys Rachael Marvin and Dominic Donato secured summary judgment dismissal of plaintiff’s Labor Law §§ 240(1), 241(6), and 200 claims asserted against their client, a general contractor of a housing project in Orange County, New York. The case involved a construction accident in which plaintiff fell while traversing a ramp, which was placed across an eight-foot-deep excavation trench. Plaintiff was employed by a subcontractor and was part of a crew performing the framing work on the project. The accident occurred when he exited his work area by walking across a ramp that was placed across the excavated trench, when the ramp gave way and plaintiff fell into the excavation. Read the full story...
Reprinted courtesy of Rachel Marvin, Kahana Feld
Ms. Marvin may be contacted at rmarvin@kahanafeld.com

Attention Contractors: U.S. Department of Labor Issues Guidance on Avoiding Discrimination When Using AI in Hiring

November 25, 2024 — Matthew DeVries - Best Practices Construction Law
I recently blogged about the use of AI and ChatGBT in the construction industry. Today’s guest post by Alexandra Shulman and Leah Lively addresses the recent guidance by the USDOL on the issue of using AI when hiring in recruitment, which is applicable to those constructions who use AI in the recruitment process. AI in hiring: About 80% of U.S. and almost all Fortune 500 companies use AI-powered hiring software. AI may be used to target online advertising for job opportunities and to match candidates to jobs on employment platforms (e.g., LinkedIn, Indeed). AI may also be used to reject or rank applicants using automated resume screening and chatbots based on knockout questions, keyword requirements, or specific qualifications or characteristics. Read the full story...
Reprinted courtesy of Matthew DeVries, Buchalter
Mr. DeVries may be contacted at mdevries@buchalter.com

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