Fairfield Connecticut Building Expert Directory

Federal Arbitration Act Preempts Pennsylvania Payment Act

June 15, 2020 — Wally Zimolong - Supplemental Conditions
I am back. It feels like an entirety since I last posted. But a hellacious trial schedule got me off the blogosphere for some time. Plus, there was nothing to write about. But I am back with a bang thanks to a decision from the Eastern District of Pennsylvania concerning the interplay of a forum selection clause appearing in an arbitration clause in a construction contract and the Pennsylvania Contractor and Subcontractor Payment Act. In Bauguess Electrical Services, Inc. v. Hospitality Builders, Inc., the federal court (Judge Joyner) ruled that the federal arbitration act preempted the Payment Act’s prohibition on forum selection clauses and held that an arbitration must proceed in South Dakota even though the construction project were the work was performed was located in Pennsylvania. The Payment Act applies to all commercial construction projects performed in Pennsylvania. As some you might know, Section 514 of the Payment Act, 73 P.S. 514, prohibits choice of law and forum selection clauses. It states “[m]aking a contract subject to the laws of another state or requiring that any litigation, arbitration or other dispute resolution process on the contract occur in another state, shall be unenforceable.” Therefore, if a construction contract is for a project located in Pennsylvania, Pennsylvania law must apply and all disputes must be adjudicated in Pennsylvania. Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

Good Signs for Housing Market in 2013

December 20, 2012 — CDJ STAFF
Dan Green, a loan officer at Waterstone Mortgage, is optimistic about the construction market in 2013. He notes that the rise in building permit, housing starts, and housing completions are all good signs. Mortgage rates are still low, making these new homes attractive to buyers. Read the court decision
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Wendel Rosen’s Construction Practice Group Receives First Tier Ranking

January 28, 2015 — Garret Murai – California Construction Law Blog
We try to limit our narcissism here at Wendel Rosen but every once in a while we toot our own horn. Lawyers are, after all, a rather sad, competitive, yet insecure bunch (i.e., we eat this stuff up). We’re proud to announce that Wendel Rosen’s Construction Practice Group has received a first tier ranking in U.S. News & World Reports’ Best Law Firms for 2015. This is the second year the Construction Practice Group has received a first tier ranking. Yay us! Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Construction Defect Scam Tied to Organized Crime?

July 31, 2013 — CDJ STAFF
The Las Vegas Review-Journal reports that the initial tip-off came from Scott Canepa, a construction defect attorney who alerted the FBI about Leon Benzer’s activities in taking over homeowner boards. Canepa learned that Nancy Quon was taking part in the scheme and went to the FBI with the information. After FBI officials met with Canepa, they launched an investigation, which they named “Operation GrandMaster.” Although a Benzer associate stated that Benzer claimed not to have ties to organized crime, and according to the Review-Journal, “preferred to think of himself as ‘just a bully,’” the case involves connections to a number of figures with ties to organized crime. Benzer with associated with John V. Spilotro, a lawyer whose uncle was an alleged overseer for Chicago organized crime operating in Las Vegas in the 70s and 80s. Another conspirator, Paul Citelli, reportedly has ties to organized crime in Buffalo. Read the court decision
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Disrupt a Broken Industry—The Industrial Construction Sandbox

November 23, 2020 — Brian Sayre - Construction Executive
The existing built environment structure—arguably—is antiquated and must be disrupted to meet the rapidly changing demands of the industry. The built environment struggles with labor shortages, addressing demand, sustainability needs, cost controls, affordability and efficiency gains. Even with the advancement of emerging technology trends, the construction industry still lags behind more technologically advanced verticals. What’s missing? Something is needed beyond incremental change that will truly disrupt the industry, increase the value of other innovations and tackle industry challenges. The answer is industrialized construction technology with offsite manufacturing as the cornerstone. Technology innovation becomes exponentially more valuable when placed in this context. Shadow Ventures, a venture capital firm focused on the built environment, set out to test these theories with verifiable research published this year in a report titled, “Disrupt a Broken Industry—The Industrial Construction Sandbox.” Reprinted courtesy of Brian Sayre, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Partner Lisa M. Rolle and Associate Vito John Marzano Obtain Dismissal of Third-Party Indemnification Claims

December 22, 2019 — Lisa M. Rolle & Vito John Marzano - Traub Lieberman Perspectives
On June 1, 2019, Traub Lieberman partner Lisa M. Rolle and associate Vito John Marzano successfully secured dismissal of all third-party claims on behalf of a corporate entity and its principal in a third-party action in the New York State Supreme Court, County of Bronx. The underlying action concerned a trip and fall that occurred on a public sidewalk located in the Bronx. Plaintiff commenced suit against the corporation property owner and its principal. Defendants/third-party plaintiffs commenced the third-party action seeking contractual and common-law indemnification against three third-party defendants, the corporate tenant, another corporate entity that was not a party to the lease and its principal. Traub Lieberman represented the latter two third-party defendants. On behalf of the corporate entity that was not a party to the lease, Traub Lieberman moved for dismissal on the basis that the lease constitutes documentary evidence establishing as a matter of law that the non-tenant corporation cannot be held liable to third-party plaintiffs. On behalf of the principal, Traub Lieberman sought dismissal for failure to state a cause of action because the principal was shielded from liability by virtue of having incorporated his business, and the complaint did not allege a claim for piercing the corporate veil. In opposition, third-party plaintiffs sought to amplify their pleadings by alleging that a de facto merger had occurred between the non-tenant corporation and the tenant corporation. Third-party plaintiffs further argued that the corporate principal executed a guaranty to the lease, thus accepting liability on behalf of the tenant corporation. Reprinted courtesy of Lisa M. Rolle, Traub Lieberman and Vito John Marzano, Traub Lieberman Ms. Rolle may be contacted at lrolle@tlsslaw.com Mr. Marzano may be contacted at vmarzano@tlsslaw.com Read the court decision
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Implementation of CA Building Energy Efficiency Standards Delayed

February 25, 2014 — Beverley BevenFlorez-CDJ STAFF
In his California Construction Law blog, Garret Murai published the recent Industry Bulletin released by the California Contractors State License Board (CSLB) regarding the delayed implementation of the California Building Energy Standards. CSLB has delayed implementation from January 1st, 2014 to July 1, 2014 due to “unanticipated delays in developing complete performance compliance software for 2013 Public Domain Residential and Nonresidential California Building Energy Code Compliance guidelines, necessitating the CEC action to change the effective date of energy related provisions.” The Industry Bulletin summarized changes regarding various codes including 2013 California Energy Code, Part 6; 2013 California Administrative Code, Chapter 10, Part 1; and, 2013 CALGreen, Part 11. According to the bulletin, as reported by the California Construction Law blog, “Contractors are encouraged to contact their local building enforcement agencies for assistance and/or clarification.” Read the court decision
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Be Careful with Good Faith Payments

February 24, 2020 — Christopher G. Hill - Construction Law Musings
Sometimes doing the expedient thing and what looks good at the time can come back to bite you. Just ask 3M Company. In Faneuil, Inc. v. 3M Co., the Virginia Supreme Court considered a customer services subcontract between Faneuil and 3M relating to a toll collection contract 3M entered into with ERC. The subcontract had a “pay if paid” clause in it requiring payment to 3M from ERC before ERC was required to pay Faneuil, a written change order provision and a base monthly payment to Faneuil for the services that could be reduced in the event of less than expected toll collections. Further, the subcontract stated that if either party settled 3rd party claims, that settlement would not bind the other party to the subcontract absent consent or Court order. Faneuil was then alleged to have been required to provide “Special Services” relating to manual identification of license plates and other information necessary for toll billing due to 3M’s alleged failure to provide adequate imaging services. Faneuil requested (without written change order) and 3M promised to pay extra for these services. When 3M was slow to pay for the special services, Faneuil did what you would expect and threatened to stop providing them. Instead of contesting the right to the work, 3m made sporadic “good faith” payments to induce continued Special Services from Faneuil. Eventually 3M’s issues caused ERC to stop payments and thus 3M stopped paying Faneuil. 3M then settled the payment claims with ERC and still failed to pay Faneuil. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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