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Volume 5 - Number 06 | February 5, 2007

EDITOR'S NOTES
According to current statistics, as many as 97 percent of cases filed never see the inside of a courtroom. While some cases are dropped, most disputes are resolved before the parties square off before a judge and jury. Experts agree that success in out-of-court negotiations is largely dependent on the parties’ willingness to participate and compromise. The practice of alternative dispute resolution (ADR) has gained popularity in the past 15 years and is a conversational hot topic within the industry. But, what happens when the parties are compelled to arbitrate by a judge? Is forced mediation legal? This week’s first case looks at these issues.

Our second case also raises some interesting questions. Can a contractor be liable for unexpected subsurface conditions? What duty does an owner have to warn the contractor about possible (though non-verified) conditions?

The third case also deals with differing site conditions. Can a contractor claim a condition if the solicitation for bids did not mention the condition but the contractor included the condition as a line item in its bid proposal? The ASBCA says the contractor cannot pursue the claim.

Finally, a federal claims court takes a no-nonsense approach to a contractor that abused a paper-filing process to augment its coffers and secure larger projects.


TRIAL COURT CANNOT FORCE PRIVATE MEDIATION ON UNWILLING PARTIES
By Sarah Graves
Private mediation proceedings (and the associated costs) cannot be compelled upon an unwilling party, rules a California appeals court. For the best chance at success, participation must be voluntary.

WYOMING HIGH COURT ADDRESSES RESPONSIBILITY FOR SUBSURFACE CONDITIONS
A lawsuit over a residential construction project raises more questions than answers as a state high court remands the case to determine underlying questions. The present issue regarding subsurface conditions favors the contractor.

CONTRACTOR’S BID STRUCTURE DEFEATS SITE CONDITION CLAIM
A contractor unintentionally exempts itself from a differing site condition claim on a government project because it included a line item unit price for that exact condition when it bid on the government’s task order work.

PROGRESS PAYMENT APPLICATIONS FOR UNPAID BOND PREMIUMS WERE FRAUDULENT
A federal claims court takes a strict stance against a contractor that attempts to circumvent the requirements for filing proper progress payment applications.

ON THE MOVE
Find out who switched firms and who has been promoted. Want to see your company’s latest news here? E-mail it to editor@wpl.net.