Shields Mott Blog

Employment Arbitration: Blessing or Burden?

Instead of utilizing the court system, many employers use arbitration to resolve disputes that arise with a disgruntled employee. The employment agreement itself may contain a provision that specifies the right to arbitrate, or the employer may have a separate document that outlines this choice. But what exactly is arbitration? More importantly, what are the benefits and burdens of choosing arbitration? These are questions every employer should consider. [Read More…] 

Louisiana’s New A+B Bidding Method “Pilot Program”

Effective August 1, 2019, the Louisiana legislature introduced a pilot program authorizing a significant change to Louisiana’s public bidding process called “A+B Bidding.”  With the introduction of this new bidding method on public projects, are the traditional built-in discretionary bidding limitations about to come to an end? [Read More…] 

Insurance Coverage for Contractual Liabilities in Construction: What You Need to Cover Your Ass(ets)

Many contractors assume they purchased CGL coverage to protect themselves from potential risks of doing business, including some contractual promises and exposures related to bodily injury and property damages. “Exclusions” in CGL policies could result in a contractor being left responsible and paying for unexpected business risks, including those it may have assumed contractually. It is important that all “exclusions” in CGL policies, including the “contractual liability” exclusion discussed herein, be considered when drafting construction contracts and selecting insurance coverage. [Read More…]

The General Agreement Of Indemnity Collateral Security Provision: If You Try Sometimes, You Might Find, You Get What You Need

Surety bonds are a primary, if not mandatory, component of every-day construction projects.  While commercial insurers on a construction project expect losses and adjust insurance rates to cover such losses depending on many factors, sureties do not expect to pay out-of-pocket for bond losses and, instead, require principals and indemnitors to exonerate, indemnify, and often defend sureties in the event of a loss or anticipated loss.  As such, a general agreement of indemnity in favor of the surety usually goes hand-in-hand with the issuance of construction surety bonds.   [Read More…]

How to Seek Interest and Attorneys’ Fees Against Slow-Paying Public Entities

Effective August 2018, the Louisiana Legislature amended the “Prompt Pay” statute in the Public Works Act, allowing contractors to compel public entities to pay progressive stage payments and final payments via mandamus proceeding, including interest and attorneys’ fees. When a public entity fails to timely pay a contractor and certain deadlines lapse, a contractor can file proceedings to force the public entity to pay, collect interest of up to 15% of the outstanding payment application, and potentially reasonable attorney’s fees. Public entities have become aware of these changes and are responding quickly because of the onerous interest charges.   [Read More…]