i-law

International Construction Law Review

INTRODUCTION

HUMPHREY LLOYD

DOUGLAS S JONES

This issue opens with an article by Dr Lukas Klee, Dr Tamás Balázs and Dr Dániel Gulyás entitled “FIDIC contracts and Hungarian law or the most important aspects of using FIDIC contracts in Hungary” (at page 138). The authors examine some features of Hungarian law that affect the use of FIDIC contracts, such as mandatory provisions, choice of law and language. The article highlights the different approaches under FIDIC contracts and Hungarian law with respect to settling disputes, contractual guarantees, variations, force majeure, defective performance, and termination of the contract. In doing so, the article provides an interesting insight into the conflict between FIDIC contracts, which bear the hallmarks of Anglo-Saxon contracts, and Hungarian law, which is part of the European-continental legal system. This article is part of a series from Dr Klee (and other authors). Last year we had a contribution about the position in Romania ([2013] ICLR 432) and in the next issue we intend to have another in about Poland where serious issues have arisen.
Next there is a contribution from the United States, covering recent cases from the State courts of California and the Federal 9th Circuit (at page 150). Mr Nathan D O'Malley, a partner at Gibbs Giden Locher Turner Senet & Wittbrodt LLP, Los Angeles, reports on two cases affecting risk mitigation in construction contracts. First, following the Californian decision in Brisbane Lodging LP v Webcor Builders Inc (2013) 216 Cal App 4th 1249 the author considers the contractual modification to a legal doctrine relating to limitations on liability for latent defects. Second, in light of the 9th Circuit Court decision of Oracle America Inc v Myriad Group AG (2013) 724 F 3d 1069, Mr O'Malley examines risk mitigation in the context of arbitral clauses. He concludes that in both cases, the various jurisdictions within the United States of America are aligning on these issues in favour of freedom of contract, allowing parties to contract out of some of the particularities of United States law. We welcome Mr O'Malley to the ranks of Correspondents to cover the Western Regions of the USA. He has extensive experience of international construction and arbitration. In 2010 he wrote for us “An Annotated Commentary on the 2010 revised Rules of Evidence for International Arbitration” ([2010] ICLR 463) and his later book on the same subject.
We then have a paper which was considered and approved by our Peer-Review Advisory Board, which recommended it to us for publication. We are very pleased to include it in this issue. Papers for consideration by the Peer-Review Advisory Board should first be submitted to the Editors-in-Chief from whom (or the publishers) information about the scheme may be obtained. The paper is by Dr Devin S Lin: “A Leapfrog Attempted: Unjust Enrichment, Implied Contract and Quistclose Trust — Recent Development on Direct Payment Claims by Nominated Sub-contractors” (at page 159).

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