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December 2016

Construction Law Update

Fourth Quarter 2016

Gordon & Rees's Construction Group is pleased to publish the latest issue of our Construction Law Update, a quarterly take on trends of interest to design professionals, contractors, and developers throughout the country.

  1. New Texas Net Worth Rule Provides Defendants with More Protection

  2. Gordon & Rees Construction Attorneys Making Headlines

  3. Gordon & Rees Construction Law Blog

  4. About Gordon & Rees's Construction Group

I. New Texas Net Worth Rule Provides Defendants with More Protection
  By Soña J. Garcia

Beginning with suits filed on or after September 1, 2015, defendants in Texas will get additional protection for their financial information. In the past, plaintiffs could secure net worth information simply by making a discovery request. Now, plaintiffs are required to file a motion for seeking the information and show they have a “substantial likelihood” that their claim will be successful. This new law, designed to promote settlement, it is almost a pseudo-trial on the sufficiency of the punitive damage case.

To read a full, expanded version of this article, click here.

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II. Gordon & Rees Construction Attorneys Making Headlines

San Francisco construction group partner Gregory J. Gangitano prevailed in a bid protest involving a hospital project in San Diego County, California. Mr. Gangitano represented one of the prime contractor bidders, Kitchell Contractors, Inc., in a protest of the award of the contract for the build out of the shell space of the new heart and vascular building for Sharp Grossmont Hospital in La Mesa, California. Kitchell was the third lowest bidder for the project. Mr. Gangitano lodged a protest on Kitchell’s behalf to the first and second low bids submitted by McCarthy Building Companies and Swinerton Builders. Although Kitchell’s protest was based on multiple factors, the primary ground was Kitchell’s belief that McCarthy and Swinerton failed to list subcontractors in their bids that possessed the amount of healthcare construction experience required by the bid specifications. The bid specifications required subcontractors to possess a minimum of 7 years of experience with projects under the jurisdiction of the California Office of Statewide Health Planning and Development (OSHPD). Following a full hearing before members of the Grossmont Healthcare District and its general counsel, the District rejected all bids and advertised the project for re-bidding by prequalified prime contractors.

Mr. Gangitano represents contractors in a wide variety of matters involving public construction projects, including bid protests, subcontractor substitutions, bond claims and payment disputes.

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III. Gordon & Rees Construction Law Blog

The Gordon & Rees Construction Law Blog continues to post new content addressing topical issues affecting the construction industry throughout the country. From analysis of new court decisions, discussions of timely legislation, and commentary on real-world, project-specific issues, Gordon & Rees’s Construction Law Blog provides insight on the issues that affect the construction industry now.

We invite you to visit the blog at and see for yourself what we are up to. If you like what you see, do not hesitate to subscribe under the “Stay Connected” tab on the right side of the blog. There you can choose how you would like to be informed of new content (Twitter, LinkedIn, email, etc.). If you have any questions about the blog or would like to discuss further any of its content, please do not hesitate to contact us.

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IV. About Gordon & Rees's Construction Group

Gordon & Rees's Construction Group consists of more than 90 lawyers in 38 offices throughout the nation. The firm continues to expand, opening five new offices in the 2015 and 2016 which include Harrisburg, Pennsylvania, Boston, Massachusetts, Wheeling, West Virginia, and Columbus, Ohio, and most recently Westchester, New York.

Gordon & Rees’s construction attorneys focus their practice on the comprehensive range of legal service required by all participants in the construction industry – architects, engineers, design professionals, design joint ventures, owners, developers, property managers, general contractors, subcontractors, material suppliers, product manufacturers, lenders, investors, state agencies, municipalities, and other affiliated consultants and service providers.

We serve clients who design, develop, or build all types of structures, including commercial buildings, single and multifamily residential projects, industrial facilities, universities, hospitals, museums, observatories, amusement parks, hotels, shopping centers, high-rise urban complexes, jails, airports, bridges, dams, and power plants. We also have been involved in projects for tunnels, freeways, light rail, railway stations, marinas, telecom systems, and earth-retention systems. Our experience includes private, public, and P3 construction projects.

If you have questions about this issue of the Construction Law Update or our nationwide construction practice, click here to visit our practice group page or contact partner Tom Cronin.

Thomas G. Cronin
Gordon & Rees, LLP
1 North Franklin
Suite 800
Chicago, IL 60606
(312) 980-6770

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