As many owners and contractors involved in the international construction industry are aware, international arbitration is a popular dispute resolution device for international construction disputes because, in part, international arbitration awards are, broadly speaking, enforceable in practically every jurisdiction in the world. This facet of international arbitration has been set out in the U.N. Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention) — a multilateral convention that requires the courts of the contracting states to recognize and enforce arbitration awards made by tribunals seated in other contracting states. Now, with 160 signatory states and the increasing popularity of international arbitration around the world, the New York Convention is widely viewed as one of the most successful international conventions ever.
Florida Court of Appeals Permits Successor-In-Interest to Pursue Claims Originally Thought to Be Barred by Settlement Agreement
MBlock Investors, LLC v. Bovis Lend Lease, Inc., etc., et al., 44 Fla. L. Weekly d1432 (3d DCA 2019)
A Florida Appellate Court recently reversed a trial court’s decision granting summary judgment finding an issue of fact based upon an expert affidavit. The underlying matter involved an action by MBlock Investors against Lend Lease (US) Construction, Inc. for latent defects following MBlock’s acquisition of a property commonly known as the Midblock Miami East Project (the “Property”).
Federal Court Finds That Ambiguous Limitation-of-Liability Clause Did Not Clearly Restrict Owner’s Claims
DAK Americas Mississippi, Inc. v. Jedson Engineering, Inc. et al, No. 1:18cv31-HSO-JCG, 2019 BL 208838 (S.D. Miss. June 6, 2019)
This dispute arose out of the design and construction of a concrete storage slab at DAK’s polymer resin manufacturing facility located in Hancock County, Mississippi. DAK hired Ohio-based Jedson to design and oversee the construction of a cement slab suitable for commercial operating loaders and other heavy equipment necessary to transport, unload, and stack shipping containers. DAK allegedly discovered substantial cracking and chipping of the cement, and filed suit in federal court claiming Jedson failed to design a slab suitable for DAK’s intended purposes. DAK asserted claims for negligent design, negligent construction management, and breach of contract.
Pennsylvania’s Exception to the Economic Loss Doctrine Appears Alive and Well: Appellate Court Permits Contractor to Pursue Negligent Misrepresentation Claim Against Design Professional
Popple Construction, Inc. v. Reilly Associates, Inc. No. 775-MDA-2017, 2019 BL 213236 (Pa. Sup. Ct., June 10, 2019).
On June 10, 2019, the Superior Court of Pennsylvania affirmed a lower court decision to deny a motion to dismiss in connection with a tort claim for negligent misrepresentation by a contractor against a third-party design/engineer. The Court’s opinion highlights Pennsylvania’s exception to the economic loss doctrine insofar as it applies to claims raised by contractors against architects/engineers for faulty bidding documents, specifications, or designs.
Pennsylvania Appellate Court Affirms Homeowner’s Recovery Against Developer on Tort Claims, Despite Contract and Challenges Based on Gist of the Action Doctrine, Economic Loss Rule, and Statute of Limitations
Dolan v. Hurd Millwork Co., No. 2951 EDA 2015, 2019 BL 229344 (Pa. Super. Ct. June 21, 2019)
This cases arises out of defective windows installed in a residential construction project. In 1999, Leo J. Dolan purchased a custom home from Bentley Homes, Ltd. and its affiliates (“Bentley Homes”). Hurd Millwork Company, Inc. provided many of the home’s windows. Dolan almost immediately observed issues in the home’s construction, including air and water leaks around the windows. Bentley Homes, however, led him to believe the issues had been fixed.
Georgia Court of Appeals Affirms Superior Court’s Confirmation of Arbitration Award, Finding That Arbitrator Did Not Manifestly Disregard Law Governing the “Modified Total Cost” Approach to Damages
Gainesville Mech., Inc. v. Air Data, Inc., No. A19A0518., 2019 BL 229069 (Ga. Ct. App. June 19, 2019)
The First Division of the Georgia Court of Appeals affirmed a superior court’s decision to confirm an arbitration award against Appellant Gainesville Mechanical, Inc. (“Gainesville”) because Gainesville failed to show that the arbitrator manifestly disregarded the law governing the “modified total cost” approach to damages.
Georgia’s Supreme Court Re-Affirms The Acceptance Doctrine
Thomaston Acquisition, LLC v. Piedmont Construction Group, Inc., No. S19Q0249, 2019 BL 202176 (Ga. June 03, 2019)
The acceptance doctrine represents the principle that an independent contractor is not liable for damages occurring after the contractor has completed its work and the work is turned over to and accepted by the owner, provided that the defect was readily observable on reasonable inspection and was not inherently dangerous.
Pennsylvania Expands Attorney Work-Product Protection for Disclosures to Third Parties
Construction disputes frequently require companies to engage third-party consultants to analyze and opine on such issues as delays, defects in workmanship or materials, and deficiencies in payment— even before they anticipate litigation. Construction companies should keep in mind that materials they provide consultants, and materials that consultants generate, can in…
The Prague Rules: What U.S. Practitioners Need to Know About the Civil Law World’s Answer to the IBA Rules on the Taking of Evidence in International Arbitration
Published in The Construction Lawyer, Volume 39, Number 1 Winter 2019. © 2019 American Bar Association. Reproduced with permission. All rights reserved. This information or any portion thereof may not be copied or disseminated in any form or by any means or stored in an electronic database or retrieval system…
Global Arbitration Review Know-How Construction Arbitration – United States
Pepper Hamilton attorneys Albert Bates and R. Zachary Torres-Fowler contributed the United States Construction Arbitration chapter to the Global Arbitration Review (GAR) Know-How series. Launched in 2006, GAR is a leading resource on international arbitration news and community intelligence.
The GAR Know-How series — an online Q&A resource that provides…