Massachusetts Trial Court Showing Deference to Arbitration as Sutow and Harelick Decisions Hew to Policy Favoring Arbitration

For many reasons, it’s good to be New England Patriots quarterback Tom Brady in Boston. However, in light of two recent Massachusetts trial court decisions, it may have been good for him that he was not in court in Boston over the summer when challenging the NFL’s adverse arbitration ruling. Over the space of two weeks in late November and early December, the Massachusetts Superior Court showed a markedly, if not surprising, pro-arbitration bent, as it upheld a party’s right to enforce an agreement to arbitrate, even after eight months of litigation in court, and upheld an arbitral award that applied out-of-state law in conferring multiple damages against a respondent despite a choice-of-law clause in the agreement mandating Massachusetts law. Either decision taken individually would be indicative of significant judicial deference to arbitration and arbitral awards. Together, they show the challenges that parties may face when attempting to avoid both an arbitration clause and/or a highly adverse, perhaps even peculiar, result.

Please visit the Duane Morris website to read the Alert, written by Duane Morris partner Michael B. Donahue in the firm’s Boston office, in its entirety.

Eastern District of New York Issues Decision in Recent Construction Contracts Case

By Michael L. Chartan, partner in the Construction Group in Duane Morris’ New York office

Construction contracts in New York and in other states frequently include provisions that bar recovery of damages for delay and require extra work to be authorized in writing. These types of provisions are enforceable. Exceptions exist that will permit recovery of delay damages and for extra work in the face of these exculpatory provisions. In Bricklayers Ins. & Welfare Fund v. Minhas Gen. Contrs. Co., LLC, 2015 U.S. Dist. LEXIS 151965, Judge Frederic Block sitting in the United States District Court for the Eastern District of New York, denied summary judgment finding triable issues of material fact. Subcontractors and general contractors have limited leverage to remove these types of provisions from the contract. Nonetheless, review of project records by a knowledgeable attorney may well reveal facts to overcome these provisions.

Duane Morris’ Allen J. Ross Named by Best Lawyers as “Lawyer of the Year” for 2016

Duane Morris is pleased to announce that partner Allen J. Ross in the firm’s New York office has been selected by Best Lawyers as the “Lawyer of the Year” in New York City Litigation – Construction law for 2016, the second-consecutive year he has been honored with this distinction. Only one lawyer in each practice area and city is given this honor. Lawyers are selected based on high marks received during the extensive peer-review assessments conducted by Best Lawyers each year.

Mr. Ross has more than 45 years of experience practicing law in the areas of construction, litigation and real estate. In addition to traditional legal work, he has developed a career in alternative dispute resolution in the construction industry, serving as an arbitrator, mediator and dispute review board chair. His previous honors include continual listings in Best Lawyers in America since 2006 and in Chambers USA: America’s Leading Lawyers for Business since 2008.

 

Duane Morris Partner Richard Lowe to Present at ABA’s “Yes, You Can Try a Construction Case: Planning and Handling a Construction Trial from Voir Dire to Closing Argument” Program

Duane Morris partner Richard Lowe will be presenting at the American Bar Association (ABA) Section of Litigation’s Regional CLE Workshop, titled “Yes, You Can Try a Construction Case: Planning and Handling a Construction Trial From Voir Dire to Closing Arguments,” which will be held on Wednesday, September 9, 2015, in New York City. Mr. Lowe will participate in a panel discussion on “Wrapping It Up; Closing Arguments and Effective Use of Jury Instructions in a Construction Case” from 4:00 p.m. to 5:00 p.m.

For more information about the CLE workshop, please visit the event page on the Duane Morris website.

Calculating Lost Labor Productivity: Is There a Better Way?

The calculation of lost labor productivity, also termed labor inefficiencies, is one of the most significant elements of damages in a construction dispute and one of the most controversial. If these damages are proven, the monetary value claim can be a considerable amount. This is far from surprising seeing as labor costs can make up to 30 to 50% of overall project costs and if these projects lose money, the unanticipated labor costs result from lesser unexpected productivity. Lost labor productivity has become controversial since owners and general contractors are skeptical of the methods in curating these calculations can be considered questionable, speculative, and illusory. The article will further define how lost labor productivity claims developed; the interplay of Daubert in the pursuit of, and defense against, such claims; and recent federal and state  case law addressing loss productivity.

The full article, written by Duane Morris partner Daniel E. Toomey and Duane Morris associate Joshua S. Marks, along with Dr. Tong Zhao, P.E. and J. Mark Dungan of Delta Consulting Group, Inc., is available on the Duane Morris LLP website, courtesy of The Construction Lawyer.

 

Duane Morris’ Construction Group Nominated for 2015 Chambers USA Award for Excellence

Duane Morris is pleased to announce that the firm’s Construction Group has once again been nominated for one of the prestigious Chambers USA Awards for Excellence. This is the fifth overall nomination for the group, which has been recognized among the top national practices by Chambers for the past several years. Duane Morris is one of only six firms to be finalists in the construction category this year.

The Awards for Excellence honor outstanding firms based on research conducted for Chambers USA 2015. These awards reflect a law firm’s preeminence in key practice areas, as well as notable achievements over a 12-month period, including outstanding work; impressive strategic growth; and excellence in client service.

The Chambers USA Awards for Excellence winners will be announced on Tuesday, May 19, 2015, at Cipriani 42nd Street in New York City.

New Jersey Establishes Complex Business Litigation Program

The Supreme Court of New Jersey has announced the establishment of a Complex Business Litigation Program, effective January 1, 2015, with designated judges in each county assigned to provide individualized case management to complex business, commercial and construction cases meeting the program criteria. The Complex Business Litigation Program is likely to substantially improve and streamline the litigation of complex business, commercial, and construction disputes in the New Jersey courts, and foster the further development and refinement of New Jersey business litigation case law.
Click here for the full story.

U.S. Department of Labor Proposes Pay Transparency Rule for Employees of Federal Contractors

On September 17, 2014, the U.S. Department of Labor Office of Federal Contract Compliance Programs (OFCCP) published a Notice of Proposed Rulemaking in the Federal Register to implement Executive Order 13665, which was signed by President Obama on April 8, 2014. Generally, the proposed rule would prohibit federal contractors from maintaining pay secrecy policies and would amend the equal opportunity clauses in Executive Order 11246 to provide protections to workers who talk about pay. The rule would apply to federal contractors with a federal contract worth more than $10,000 and entered into or modified on or after the effective date of the final rule, as well as to federal subcontractors working under such a covered federal contract.

To read the full Duane Morris Alert, please click here.

Pennsylvania Mechanics’ Lien Law Amended, Clarifying Open-End Construction Loan Mortgage Priority

On July 9, 2014, Pennsylvania Governor Tom Corbett signed into law Act 117 of 2014, which amends the Pennsylvania Mechanics’ Lien Law (MLL), 49 P.S. 1101, et seq., to provide that a construction loan secured by an open-end mortgage where at least 60 percent of the proceeds are “intended to pay or used to pay” all or part of the “costs of construction” will have lien priority ahead of any filed mechanics’ lien claims, even when the visible commencement of work was prior to the recordation of the open-end mortgage.

Click here to read the full Alert, written by Duane Morris associate Louise S. Melchor.

California Supreme Court Addresses Architect’s Duty of Care

The California Supreme Court issued a unanimous decision in Beacon Residential Community Association v. Skidmore, Owings & Merrill, S208173, on July 3, upholding a homeowners association’s right to pursue a common law negligence claim against the project architects of a 595-unit condominium project in San Francisco.

Building on substantial case law and the common law principles on which it is based, we hold that an architect owes a duty of care to future homeowners in the design of a residential building where, as here, the architect is a principal architect on the project — that is, the architect, in providing professional design services, is not subordinate to other design professionals. The duty of care extends to such architects even when they do not actually build the project or exercise ultimate control over construction.

Continue reading “California Supreme Court Addresses Architect’s Duty of Care”

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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