Photo by Martin Gonzalez After demolition of the dilapidated Chicago-area hotel, a federal judge halted plans for a high-end, eco-friendly conference center after allegations the developer had bilked investors. A federal judge has halted plans to construct the "world's first zero-carbon-emission platinum LEED-certified" hotel and conference center in Chicago after a federal suit accused its developer of fraudulently selling more than $145 million in securities and $11 million in fees to foreign investors.In a suit filed in February, the U.S. Securities and Exchange Commission alleges Anshoo Sethi, the Intercontinental Trust Center of Chicago and the Chicago Convention Center "perpetuated a
Two former employees of Trojan Labor of Nashville LLC charge in a federal lawsuit that the company violated wage and hour laws and docked their wages for safety equipment it should have provided.John T. Taylor and Michael J. Dooley are seeking class action status for themselves and all similar employees of the temporary staffing firm over the past three years.Workers had to report at Trojan Labor offices as early as 4 a.m. to sign in and get a “work ticket,” but had to wait there before going in a mandatory carpool to the jobsite, according to the suit filed Feb.
Related Links: High Stakes Las Vegas Stadium Gamble May Go Bust View Other ENR Legal Stories The city of Henderson, Nev., southeast of Las Vegas, claims it got duped into a sweetheart public land deal by Austin, Texas-based developer Christopher F. Milam, who proposed building a multi-arena sports complex, according to a Jan. 28 lawsuit filed in Clark County District Court. The city contends that Milam "conspired" to falsely buy 485 acres of federal land southeast of Interstate 15 and St. Rose Parkway "below what a true competitive bidding process would yield" and "sell it piecemeal to residential and commercial
Related Links: Justice Dept. press release Granite Construction Co. has agreed to repay the federal government $367,500 in a settlement with the Justice Dept. regarding alleged overbilling on federal construction projects.The settlement, which Justice announced on Feb. 8, centers on prices that federal officials claim Granite inflated on projects financed by the Dept. of Transportation and the U.S. Army Corps of Engineers between 2006 and 2008.The settlement agreement states that Granite disclosed the potential overcharges to the Justice Dept. in October 2009.A Granite spokeswoman said in an emailed statement, "This was an inadvertent and honest mistake which was confirmed by
Related Links: PDF of Appeals Court Ruling NLRB Appointments Generate New Wave of Controversy The National Labor Relations Board says it will continue to decide new cases despite a ruling from the U.S. Court of Appeals for the D.C. Circuit that invalidated three recess appointments to the board in January 2012.A three-judge panel from the federal appeals court ruled on Jan. 25 that President Obama's appointments of Democrats Sharon Block and Richard Griffin and Republican Terence Flynn were invalid because they were not made during a true congressional recess. The ruling, if upheld, could nullify all rulings made since Jan.
Related Links: U.S. Court of Appeals for the District of Columbia Circuit Jan. 25 Ruling NLRB Appointments Generate New Wave of Controversy The National Labor Relations Board says it will continue to press forward in deciding new cases even in the wake of a ruling from the U.S. Court of Appeals for the D.C. Circuit that invalidated three recess appointments to the board in January 2012. A three-judge panel from the federal appeals court ruled on Jan. 25 that President Obama’s recess appointments of Democrats Sharon Block and Richard Griffin and Republican Terence Flynn were invalid because they were not
Related Links: Supreme Court Jan. 8 ruling in L.A. Flood Control District v. Natural Resources Defense Council ENR article: Nation's High Court Tackles Three Water Cases Construction industry officials say they are pleased with the U.S. Supreme Court’s Jan. 8 ruling in the first of two water-related cases argued before the court in December. The court unanimously ruled in Los Angeles County Flood Control District v. Natural Resources Defense Council and L.A. Waterkeeper that the flood-control district did not violate its State Pollutant Discharge Elimination System (SPDES) permit when it simply transferred already polluted water from one portion of its
Related Links: U.S. Dept. of Justice press release Text of Caddell statement Text of Justice Dept. agreement In an agreement with the Justice Dept., Caddell Construction Co. has paid a $2-million penalty to settle criminal fraud charges that the company intentionally made false statements to the Dept. of Defense concerning a small firm with which Caddell worked on three military construction projects.Under the agreement, announced on Dec. 27, Justice will not prosecute Montgomery, Ala.-based Caddell for its allegedly improper pay requests to DOD that included the false information. Justice noted Caddell’s “substantial cooperation,” voluntary disclosures and improvements in its reporting
Related Links: Link to opinion in Arkansas Game and Fish Commission v. U.S. on Supreme Court website High Court Hears Property Takings Case The U.S. Supreme Court ruled Dec. 4 against the federal government in a property “takings” case involving water releases from an Army Corps of Engineers Dam. The court also heard oral arguments in two Clean Water Act cases on Dec. 3 and 4.Although none of the cases touched on the broader question of federal versus state jurisdiction in issuing permits, construction groups are keeping a watchful eye on all three. Nick Goldstein, American Road & Transportation Builders
Related Links: Ill Winds Blow Through Huge U.K. Wind Farm Project Proposals for Massive Irish Wind Farms Rankle Some A U.K. arbitration panel surprised Fluor Corp. and its investors last month with a ruling against the contractor's $480-million claim for additional compensation from owners of the Greater Gabbard wind farm off the coast of England. As a result, Fluor said on Nov. 17 it will take a $400-million charge in the fourth quarter but says the action will not materially affect cash flow."Fluor delivered a quality project, and we are extremely disappointed with this unexpected decision," said company Chairman and
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