Justia Construction Law Opinion Summaries

In May 2015, the Chickasaw County School District entered into a contract with Sullivan Enterprises, Inc., for window restoration work on the Houlka Attendance Center. In July 2015, during construction, a fire began that completely consumed the attendance center. Liberty Mutual, the school district’s insurer, paid the school district $4.3 million for the damage to the building. Liberty Mutual then filed a subrogation suit against Sullivan Enterprises, Fowlkes Plumbing, LLC, and Quality Heat & Air, Inc. The United States District Court for the Northern District of Mississippi found that the waiver of subrogation did not apply to damages to the “non-Work” property, thus Liberty Mutual could proceed in litigation as to “non-Work” property damages. The United States Court of Appeals for the Fifth Circuit allowed an interlocutory appeal and certified a question to the Mississippi Supreme Court regarding whether the subrogation waiver applied to “non-Work” property. The Supreme Court determined that based on the plain meaning of the contract language, the waiver of subrogation applied to both work and non-work property. View "Liberty Mutual Fire Insurance Co. v. Fowlkes Plumbing, L.L.C." on Justia Law

Minn-Kota Ag. Products, Inc. appealed a district court order dismissing Minn-Kota’s appeal of findings of fact, conclusions of law and order issued by the North Dakota Public Service Commission (PSC) for lack of standing and affirming an administrative law judge’s (ALJ) order denying Minn-Kota’s petition to intervene. In 2017, Minn-Kota began construction of a large, $20 million grain handling facility near the municipalities of Barney and Mooreton, North Dakota. During construction of the facility, Minn-Kota received proposals to provide electric power to the facility from Otter Tail Power Co., an electric public utility, and Dakota Valley Electric Cooperative, a rural electric cooperative. Minn-Kota determined Otter Tail would provide cheaper and more reliable electric service and chose Otter Tail as its preferred provider. Dakota Valley protested Otter Tail’s application and requested a hearing. Otter Tail and Dakota Valley were represented at the hearing, and each offered evidence and testimony. Minn- Kota was not a formal party represented at the hearing and, other than the testimony offered by Schuler, Minn-Kota did not contribute to the hearing. In December 2017, the PSC held a work session to contemplate and discuss Otter Tail’s application. The concerns expressed by the PSC at the work session made it clear the PSC was likely going to deny Otter Tail’s application. As a result, Minn-Kota submitted a petition to intervene, which an ALJ determined Minn-Kota submitted after the deadline to intervene had passed, and denied it. Minn-Kota argued it has standing to appeal the PSC’s decision because it participated in the proceedings before the PSC, and the PSC’s decision should be reversed because it was not supported by the facts or law. In the alternative, Minn-Kota argued the case should have been remanded to the PSC and it should have been allowed to intervene and introduce additional evidence into the record. The North Dakota Supreme Court determined Minn-Kota had standing, but did not provide a compelling argument on how Otter Tail did not adequately represent its interests at the administrative hearing or throughout the entirety of the proceedings. Therefore, the Court affirmed in part, reversed in part, and thus affirmed the PSC's order. View "Minn-Kota Ag Products, Inc. v. N.D. Public Service Commission, et al." on Justia Law

In Friends of Columbia Gorge v. Energy Fac. Siting Coun., 365 Or 371, 446 P3d 53 (2019), the Oregon Supreme Court held that the Energy Facility Siting Council had failed to substantially comply with a procedural requirement when it amended rules governing how it processes requests for amendment (RFAs) to site certificates that the council issued. The Court therefore held that the rules were invalid. In response to that decision, the council adopted temporary rules governing the RFA process. Petitioners contended that those temporary rules were also invalid. According to petitioners, the rules were invalid because the council failed to prepare a statement of its findings justifying the use of temporary rules. Petitioners also maintained that the council’s rules exceed the 180-day limit on temporary rules or otherwise improperly operated retroactively. After review, the Supreme Court disagreed with petitioners’ arguments and concluded the temporary rules were valid. View "Friends of Columbia Gorge v. Energy Fac. Siting Coun." on Justia Law

The Metropolitan Water Reclamation District entered into a contract with the Joint Venture, for the “Primary Settling Tanks and Grit Removal Facilities” project to be carried out at the Calumet water reclamation plant. Under the contract, the Joint Venture was responsible to determine the procedures and methods for the work and furnish all temporary structures and safety equipment and was responsible for the safety of all personnel on the worksite. The contract required the Joint Venture to submit plans for the work to the District’s engineer but state that the engineer’s acceptance of the plans did not relieve the Joint Venture of its responsibility for safety, maintenance, and repairs on the project. Andrews, a Joint Venture employee, suffered severe, career-ending head injuries while working on the project.In a suit alleging construction negligence, willful and wanton construction negligence, and loss of consortium, the District alleged immunity under the Local Governmental and Governmental Employees Tort Immunity Act (745 ILCS 10/2-109, 2-201). The Illinois Supreme Court concluded that the District was not entitled to summary judgment of immunity. The Act immunizes a local governmental entity from liability for injuries arising out of its employee’s acts or omissions while determining policy and exercising discretion. The District did not provide evidence that its employees made discretionary or policy decisions with respect to the two-ladder configuration that resulted in Andrews’s injuries. Seven witnesses testified that no District employees weighed in on worksite safety decisions. View "Andrews v. Metropolitan Water Reclamation District of Greater Chicago" on Justia Law

In a matter of first impression, the Oklahoma Supreme Court addressed whether a claim of intentional interference with a prospective economic business advantage required a showing of bad faith, and whether the immunity protections provided by 36 O.S. Supp. 2012 section 363 were forfeited under the alleged facts. Plaintiff-appellant Lisa Loven, a general contractor who applied for a public adjuster license with the Oklahoma Department of Insurance (the Department), disclosed that a former client sued her for acting as an unlicensed adjuster. The Department opened an investigation and subsequently denied her application. Loven appealed. During the appeal hearing Church Mutual Insurance and its adjuster Jeffrey Hanes provided information regarding their dealings with Loven as a general contractor when she contracted for storm repair work for two churches they insured. The appellate hearing officer affirmed the denial of her application as a public adjuster because she had illegally acted as an unlicensed public adjuster. Loven sued Church Mutual and Hanes for intentional interference with a prospective economic business advantage. The trial court granted summary judgment to Church Mutual and Hanes because 36 O.S. Supp. 2012 section 363 provided civil tort immunity to insurers who provide any information of fraudulent conduct to the Department. The Court of Civil Appeals affirmed. The Supreme Court held: (1) 36 O.S. Supp. 2012 section 363 provided immunity for those who report or provide information regarding suspected insurance fraud as long as they, themselves, do not act fraudulently, in bad faith, in reckless disregard for the truth, or with actual malice in providing the information; and (2) the alleged tort of intentional interference with a prospective economic business advantage required a showing of bad faith. Because no proffered evidence in this case showed bad faith, the immunity provisions of 36 O.S. Supp. 2012 section 363 applied, and summary judgment was proper. View "Loven v. Church Mutual Ins. Co." on Justia Law

Petitioner Freedom Foundation filed a public records request for documents relating to union organizing by several University of Washington (UW) faculty members. The UW asked one of the faculty to search his e-mail accounts for responsive records, and after reviewing those records, gave notice that it intended to release many of them in the absence of an injunction. Respondent Service Employees International Union 925 sued to enjoin release of any union-related records, arguing they were not "public records" under 42.56 RCW, the Washington Public Records Act. The trial court granted the injunction and the Court of Appeals affirmed. The Foundation petitioned the Washington Supreme Court for review, arguing that the "scope of employment test" employed by the trial court and affirmed on appeal, only applied to records stored on an employee's personal device, and should not have been extended to records on public agencies' e-mail servers. The Supreme Court agreed, reversed and remanded. View "Serv. Emps. Int'l Union Local 925 v. Univ. of Wash." on Justia Law

NRP made preliminary arrangements with the City of Buffalo to build affordable housing on city‐owned land and to finance the project in part with public funds. The project never came to fruition, allegedly because NRP refused to hire a political ally of the mayor. NRP sued the city, the Buffalo Urban Renewal Agency, the mayor, and other officials The district court resolved all of NRP’s claims in favor of defendants. The Second Circuit affirmed. NRP’s civil RICO claim against the city officials is barred by common‐law legislative immunity because the mayor’s refusal to take the final steps necessary to approve the project was discretionary legislative conduct, and NRP’s prima facie case would require a fact-finder to inquire into the motives behind that protected conduct. NRP’s “class of one” Equal Protection claim was properly dismissed because NRP failed to allege in sufficient detail the similarities between NRP’s proposed development and other projects that previously received the city’s approval. NRP’s claim for breach of contract was properly dismissed because the city’s “commitment letter” did not create a binding preliminary contract in conformity with the Buffalo City Charter’s requirements for municipal contracting. NRP fails to state a claim for promissory estoppel under New York law, which requires proof of “manifest injustice.” View "NRP Holdings LLC v. City of Buffalo" on Justia Law

In 2007, the VA sought to lease space for a Parma, Ohio VA clinic. A pre-solicitation memorandum stated that the building must comply with the Interagency Security Committee (ISC) Security Design Criteria. The subsequent Solicitation discussed the physical security requirements. Premier submitted a proposed design narrative that did not address those requirements. In 2008, Premier and the VA entered into a Lease. Premier was to provide a built-out space as described in the Solicitation. About 18 months later, the VA inquired about Premier’s first design submittal, advising Premier to obtain access to the ISC standards, because “the project needs to be designed according to the ISC.” The ISC denied Premier’s request, stating that the documents had to be requested by a federal contracting officer who has a “need to know.” The VA forwarded copies of three ISC documents. Some confusion ensued as to which standard applied. The VA then instructed Premier to disregard the ISC requirements and to incorporate the requirements from the latest VA Physical Security Guide. Months later, the VA changed position, stating that “[t]he ISC is the design standard.” Premier’s understanding was that only individual spaces listed in a Physical Security Table needed to comply with the ISC. The VA responded that the entire building must conform to the ISC at no additional cost. Premier constructed the building in accordance with the ISC standards then unsuccessfully requested $964,356.40 for additional costs. The Federal Circuit affirmed summary judgment in favor of the government. The contract unambiguously requires a facility conforming to ISC security requirements. View "Premier Office Complex of Parma, LLC v. United States" on Justia Law

During road-construction operations, a truck owned or operated by Eustis Cable Enterprises, LTD, which was participating in the construction activity, struck and killed a flagger for Green Mountain Flaggers. The truck hit the flagger when the driver began backing it up in the southbound breakdown lane on Route 7 in Middlebury, Vermont. In response to the accident, the Commissioner of Labor investigated and ultimately cited Eustis for two alleged violations of 29 C.F.R. 1926.601: a failure to ensure that the vehicle’s backup alarm was audible above the surrounding noise level; and a failure to assure the safety devices were in a safe condition at the beginning of each shift. The Commissioner assessed $11,340 in fines ($5670 for each violation). Eustis appealed the civil division’s affirmance of the Vermont Occupational Safety and Health Act (VOSHA) review board’s determination that Eustis failed to meet VOSHA’s motor-vehicle requirements and the resulting assessment of a fine for the violations. The Vermont Supreme Court concluded the evidence and findings did not support the board’s conclusion that Eustis was on notice of the violation and accordingly reverse and strike the citation alleging a violation of 29 C.F.R. 1926.601(b)(14) and associated penalty. View "Commissioner of Labor v. Eustis Cable Enterprises, LTD" on Justia Law

In 2012, the Campbell Union School District (CUSD) Governing Board enacted a fee on new residential development under Education Code section 17620. The fee, $2.24 per square foot on new residential construction, was based on a study that projected that “it will cost the District an average of $22,039 to house each additional student in new facilities.” This figure was based on a projected $12.8 million cost to build a new 600-student elementary school and a projected $24.4 million cost to build a new 1,000-student middle school. SummerHill owns a 110-unit residential development project in Santa Clara, within CUSD’s boundaries. In 2012 and 2013, SummerHill tendered to CUSD under protest development fees of $499,976.96. The trial court invalidated the fee and ordered a refund of SummerHill’s fees. The court of appeal affirmed, holding that the fee study did not contain the data required to properly calculate a development fee; it failed to quantify the expected amount of new development or the number of new students it would generate, did not identify the type of facilities that would be necessary to accommodate those new students, and failed to assess the costs associated with those facilities. View "SummerHill Winchester LLC v. Campbell Union School District" on Justia Law