Cambridge Massachusetts Building Expert Directory

Unfair Risk Allocation on Design-Build Projects

June 13, 2022 — Brian Perlberg, Executive Director of ConsensusDocs Coalition & AGC Senior Counsel
The AGC annual convention included a session entitled “Who’s on the Hook for Design Defects in Design-Build Projects.” Fox Rothschild’s Dirk Haire, Les Synder of Infrastructure Construction Brightline West, and David Hecker of Kiewit presented. Attendees crowded into a standing-only room because more and more builders are facing design liability, especially design-builders on large infrastructure projects. The presentation highlighted how some owners abuse the submittal process on design-build jobs to make changes without compensating the builder with more time, money, or both. One project took a sample of owner comments and extrapolated that just one project generated over 15,000 submittals and generated over 110,000 comments of “concern” or “preference.” Certain owner-representatives and attorneys for owners have oversold the risk allocation transfer aspect of design-build. The Spearin Doctrine protects a builder from design documents containing errors by entitling them to receive equitable compensation. The design-build project delivery method erodes potential Spearin protections. Ways that an owner may retain some design responsibility and bring Spearin protections back into play for a builder include the following:

Accuracy of reports prepared by owner’s outside consultants

Owner’s design approval process
Viability of owner’s stated design and project criteria

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Reprinted courtesy of Brian Perlberg, ConsensusDocs

Fraudster Sells 24-Bedroom ‘King’s Speech’ London Mansion

May 20, 2015 — Neil Callanan – Bloomberg
Edward Davenport, jailed for fraud for his role in a fake lender, sold a 24-bedroom mansion in London’s Marylebone district that was featured in the film “The King’s Speech.” The money raised from the sale will be used to repay 13 million pounds ($20 million) from a confiscation order by Her Majesty’s Courts and Tribunals Service, the Serious Fraud Office said in a statement Wednesday. Davenport was jailed for more than seven years in October 2011 for his role in Gresham Ltd., a company that said it offered to provide commercial funding in return for advance fees, the SFO said. After securing the payments, employees would make deceptive assertions to extract further fees, the SFO said in 2011. Read the court decision
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Reprinted courtesy of Neil Callanan, Bloomberg

Wildfire Insurance Coverage Series, Part 2: Coverage for Smoke-Related Damages

July 03, 2022 — Scott P. DeVries & Yosef Itkin - Hunton Insurance Recovery Blog
For many policyholders, smoke emanating from wildfire causes as much if not more damage than the fire itself. In this post in the Blog’s Wildfire Insurance Coverage Series, we discuss damages caused by smoke emanating from wildfires. Some insurers argue that policies are limited to fire damage to the insured property and do not include smoke damage associated with nearby fires. A treatise frequently cited by insurers states otherwise: “The concept that fire insurance covers non-fire damage which is the proximate result of fire finds application also when the fire occurs on other property and causes harm to the insured property. In such case, the harm to the insured property, even though it is a non-fire harm, has long been recognized to be the result of fire, and, therefore, within the policy coverage.”[1] Reprinted courtesy of Scott P. DeVries, Hunton Andrews Kurth and Yosef Itkin, Hunton Andrews Kurth Mr. DeVries may be contacted at sdevries@HuntonAK.com Mr. Itkin may be contacted at yitkin@HuntonAK.com Read the court decision
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Texas Mechanic’s Lien Law Update: New Law Brings a Little Relief for Subcontractors and a Lot of Relief for Design Professionals

June 07, 2021 — Tracey L. Williams - Peckar & Abramson, P.C.
After several recent failed attempts to amend Chapter 53 of the Texas Property Code (the “Texas Mechanic’s Lien Statute”), it appears that long awaited relief may, at least in part, be on the horizon for subcontractors in Texas. Additionally, architects, engineers, and surveyors also appear to be significant benefactors of House Bill 2237 (“HB 2237”). Under existing law, many subcontractors often fail to perfect their mechanic’s liens under the Texas Mechanic’s Lien Statute because of complex notice requirements which must be sent for every month in which labor or material are furnished. And architects, engineers and surveyors currently have no lien rights unless they have a direct contractual relationship with the owner of the project. Effective January 1, 2022, HB 2237 amends the Texas Mechanic’s Lien Statute in several significant respects. Subcontractor Impacts HB 2237 impacts subcontractors in the following ways:

Establishes uniformity in the notice requirements by imposing the same notice obligation on all subcontractors regardless of with whom they have contracted. Rather than sending one notice to the owner and one to the general contractor, the single notice now required must be sent to both simultaneously. Additionally, HB 2237 prescribes the form of the notice to be given under both Section 53.056 (notice of derivative claimant) and 53.057 (notice of contractual retainage).

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Reprinted courtesy of Tracey L. Williams, Peckar & Abramson, P.C.
Ms. Williams may be contacted at twilliams@pecklaw.com

BHA has a Nice Swing: Don’t Forget to Visit BHA’s Booth at WCC to Support Charity

May 13, 2014 — Beverley BevenFlorez-CDJ STAFF
At this week's West Coast Casualty Construction Defect Seminar, for every hole-in-one made at the golf putting game at the Bert L. Howe & Associates (BHA) booth, the firm will make a $25.00 cash donation in the golfer’s name to the Construction Defect Community Charitable Foundation (CDCCF). Each winner will also receive a $25.00 Best Buy gift card. BHA’s traditional golf game has been technologically reimagined. As the putter steps onto the artificial turf, he or she is plunged into a virtual golf course through an animated video projected on a giant 23 feet wide by 8 feet tall screen! While at the booth, don’t forget to test out BHA’s industry leading data collection and inspection analysis systems. BHA has recently added video overviews to their data collection process, as well as next-day viewing of inspection data via their secured BHA Client Access Portal. Discover meaningful cost improvements that translate to reduced billing while providing superior accuracy and credibility. Attendees can also enter to win Dodger baseball tickets, a new iPad Air, or a trip to the Del Mar Race Track! Other BHA giveaways include water bottles, pocket tape measures, multi-tools, flashlight fans, foam footballs, and Godiva chocolates. Bert L. Howe & Associates strongly supports the goals and principles of the CDCCF, and is honored to assist the foundation in fulfilling its mandate of assisting those in the construction defect community who are in need. Read how the CDCCF assists the construction defect community... Read the court decision
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Managing Partner Jeff Dennis Recognized as One of the Most Influential Business People & Opinion Shapers in Orange County

November 17, 2016 — Newmeyer & Dillion LLP
NEWPORT BEACH, Calif. – Nov 15th, 2016 – Prominent business and real estate law firm Newmeyer & Dillion LLP is pleased to announce that managing partner Jeff Dennis was selected as one of the 500 most influential business people and opinion shapers in Orange County by the Orange County Business Journal (OCBJ). Dennis will be recognized in OCBJ’s inaugural issue, OC500, publishing November 14, 2016. Located in the Newport Beach office, Dennis currently serves as the Firm’s Managing Partner and specializes in a variety of litigation arenas, including construction, real estate and business litigation. He also handles insurance and higher education matters. Tom Newmeyer, Newmeyer & Dillion’s Co-founding Partner, believes the award is representative of the leadership displayed by Dennis. “Jeff is an uncanny consensus builder, and you can see his steady hand in the firms’ growth and success. This recognition is a testament to his strong commitment to the community and his ability to facilitate innovative changes in Orange County.” Dennis believes that community participation is a vital part of his law practice. He currently serves on the Executive Leadership Team for the American Heart Association’s Orange County Heart Walk. Under Dennis’ leadership, the firm proudly supports the OC Heart Walk, with over 150 participants joining Team N&D in 2016. As such, he volunteered to serve in the Orange County District Attorney’s selective Trial Advocacy Partnership (TAP) program. He is the past president of the Occidental College Board of Governors and helped lead Occidental’s Alumni Association as its former Orange County Regional Chair. About Newmeyer & Dillion For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com. Read the court decision
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As the Term Winds Down, Several Important Regulatory Cases Await the U.S. Supreme Court

September 03, 2019 — Anthony B. Cavender - Gravel2Gavel
The Supreme Court will be deciding some very important regulatory law cases in the new few weeks as the term winds down. CERCLA Circled Last week, the Court granted a petition to review a significant CERCLA case, Atlantic Richfield Company v. Christian, et al., decided by the Supreme Court of Montana on state law grounds. This case involves state litigation which could result in a cleanup whose scope is allegedly inconsistent with an ongoing and expensive federal CERCLA cleanup at the Anaconda Smelter site. CERCLA basically provides that no one may challenge an ongoing Superfund cleanup, yet this state common law proceeding seeking a cleanup of the plaintiff’s homes and properties arguably threatens the EPA-approved cleanup remedy. ARCO filed a petition for certiorari with the Supreme Court, which the Court has now granted despite the Solicitor General’s brief which argued that the Court should wait to see the results of the Montana trial. (It is unusual for the Court to reject the advice of the Solicitor General.) Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

No Bad Faith In Filing Interpleader

August 19, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Eighth Circuit determined that filing an interpleader action in the face of multiple claims against the policy holder did not constitute bad faith. Purscell v. Tico Ins. Co., 2015 U.S. App. LEXIS 10438 (8th Cir. June 22, 2015). Ben Purscell's vehicle collided with another vehicle, in which Tim and Amy Carr were riding. The Carrs were injured, and Purscell's passenger, Amy Priesendorf, was killed. Before the accident, Priesendorf had stretched her leg over and put her foot on the accelerator, on top of Purscell's foot. As the other car approached, Purscell swerved to avoid an accident, but the two vehicles collided. Purscell had a policy with Infinity Assurance Insurance Company. The policy limited liability to $25,000 per person and $50,000 per accident for bodily injury. Infinity put the full $50,000 per accident limits on reserve, with $25,000 designated to Priesendorf's fatality and $25,000 designated to the Carrs. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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