Posted on October 24, 2008 by Chris Cheatham

Lights Go Out on Green Stadium Litigation

 

Today we are going to take a hiatus from the discussions of green building in the current financial markets and, instead, wrap up what potentially could have been major green building litigation.  On October 17, 2008, the Lerner family and the D.C. Government resolved litigation stemming from the LEED-Silver certified Washington Nationals Stadium. 

 

In previous Green Building Law Update posts, we focused on the stadium's certification and discussed the “green” stadium scoreboard that incorporated “high-definition LED technology that the Lerner family paid to have upgraded beyond the basic specifications called for in the ballpark's design.”  During negotiations over the protracted stadium dispute, it came out that Lerner representatives were unhappy, in part, about the lighting on the scoreboard that they paid for through an apparent change order.

 

Based on the published Settlement Agreement, the dispute over the LED-lit scoreboard remained a sticking point throughout the negotiations.  On page 1 of the Settlement Agreement, the Lerner Family agreed to withdraw and irrevocably waive “its demands for credits . . . for disputed scoreboard change orders.”  What were the final results of the negotiations?  The City will pay the Nationals $4 million to resolve the disputes and, in return, “the team will pay $3.5 million in rent that was due to the city last spring.”

 

With this settlement, the green building industry dodges what would have been the most substantial green building litigation to date.  But the day is coming.  Are you convinced that you need to have a rock solid green building contract?

 

Related Links

Tags: , , , , , , ,
Posted on September 22, 2008 by Chris Cheatham

Stadium LED Lights Strike Out?

Back in August, GBLU discussed protracted disputes between the Washington D.C. Government and the Washington Nationals owners over the construction of the Nationals’ new stadium.  The dispute centers on when the LEED certified stadium was substantially complete.  To date the Lerner family, the team owners, have withheld payment of $3.5 million as a result of the dispute.  It appears the dispute is not going away either: 

In negotiations with the D.C. Sports and Entertainment Commission, which oversaw stadium construction, Lerner representatives have cited problems with the ballpark, including the quality of the sound system and the lighting on the scoreboard, according to sources familiar with the talks who spoke on condition of anonymity because of the dispute. 

What does this have to do with green building?  The lighting on the Nationals’ scoreboard is “made possible by high-definition LED technology that the Lerner family paid to have upgraded beyond the basic specifications called for in the ballpark’s design.”  LED lighting uses significantly less energy than traditional lights and is an increasingly popular green building strategy in stadiums, like the Beijing Olympic Basketball Gymnasium.  In this case, it appears the Lerner family’s expectations of the LED scoreboard lights were not met.  

Could this result in significant green building litigation between the D.C. and the Lerner family?  The City seems to think so:

Matthew Cutts, chairman of the D.C. Sports and Entertainment Commission, which oversaw stadium construction, said the agency is in the process of hiring the law firm Seyfarth Shaw to handle the case.   

Related links:

Tags: , , , , , , , , , ,
Posted on August 17, 2008 by Chris Cheatham

Litigation Involving "Green" Nationals Stadium

   
Did you know the Washington Nationals stadium is the first LEED certified stadium built in the United States?  An interactive USA today article highlights some of the green building practices that helped the stadium obtain certification.  Among the green building practices incorporated into the stadium are green roofs, air cooled chillers and low flow faucets and toilets.  Despite successfully obtaining LEED certification, it appears the City and Owners will end up in significant litigation. 

    On July 11, the Washington Post ran an article about protracted disputes between the City and Washington Nationals' Owners over the construction of the Nationals stadium: 

"Although each side needs the other to make the stadium a success, neither appears willing to back down. The fight centers on whether the ballpark was 'substantially complete' by March 1, when the city, which oversaw the construction, was contractually obligated to hand the keys to the Lerners."

    I wonder if the dispute over "substantial completion" centers around green building features?  GBLU will keep you updated as more develops. 

Tags: , , , , ,