Fixing That Mistake
October 25, 2021 —
Patrick Barthet - Construction ExecutiveSomeone once said, more people could learn from their mistakes if they weren’t so busy denying that they made them in the first place.
In the construction industry, mistakes are not uncommon. Addressing them, however, can be complicated. What should a contractor do when the project owner says some aspect of the project is not satisfactorily completed or isn’t performing as it should? Should the contractor wait, hoping it may get resolved without having to do anything? Or should the contractor take on the repair or replacement as soon as practically possible?
Doing nothing may be easy but can expose the contractor to significant subsequent liability. Dealing with the issue, on the other hand, could result in the destruction of what might later be required evidence in any litigation which develops. Considered “spoliation,” such manipulation or elimination of evidence is a consequence to be avoided. Even though done with the best of intentions to fix a problem, the process can wind up exposing one to liability and damages.
Reprinted courtesy of
Patrick Barthet, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Barthet may be contacted at
pbarthet@barthet.com
Tips for Contractors Who Want to Help Rebuild After the California Wildfires
November 02, 2017 —
Garret Murai - California Construction Law BlogI received a call from one of my contractor clients this past week to see what he could do to help those affected by California’s North Bay fires.
The North Bay fires are the deadliest and most destructive wildfires in California’s history. To date, the fires have claimed 42 lives, burned more than 200,000 acres of land, destroyed an estimated 8,400 structures and likely damaged tens of thousands more. By comparison, the state’s second most deadly wildfire, the Oakland Hills fire of 1991, claimed the lives of 25 people, burned 1,600 acres of land, and destroyed 2,900 structures. Rebuilding costs for the North Bay fires, according to the California Insurance Commissioner, are expected to top $1 billion.
For those with insurance, insurance experts say that the rebuilding process can take two years or more for those whose homes and businesses were destroyed. For those whose homes and businesses were fortunate enough only to be damaged, rebuilding efforts are already underway.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Montana Trial Court Holds That Youths Have Standing to Bring Constitutional Claims Against State Government For Alleged Climate Change-Related Harms
September 18, 2023 —
Paul A. Briganti & Julia Castanzo - White and Williams LLPOn August 14, 2023, in a “landmark” ruling, a Montana state court held that youth plaintiffs had standing to assert constitutional claims against the State of Montana, its governor and state agencies for “ignoring” the impact of greenhouse gas (GHG) emissions on climate change. Held v. State of Montana, Cause No. CDV-020-307 (1st Judicial Dist. Ct., Lewis & Clark Cty., Mt.). Agreeing with the plaintiffs, the court concluded that a limitation in the Montana Environmental Policy Act (MEPA), which prohibited the state from considering climate impacts when issuing permits for energy projects, violated the plaintiffs’ right under the state constitution to a “clean and healthful environment.”
MEPA, enacted in 1971, states that its purposes include “provid[ing] for the adequate review of state actions in order to ensure that . . . environmental attributes are fully considered by the legislature in enacting laws to fulfill constitutional obligations . . . .” In 2011, the legislature amended the statute to curtail the scope of environmental reviews. Under the so-called MEPA limitation, Montana agencies cannot consider “an evaluation of greenhouse gas emissions and corresponding impacts to the climate in the state or beyond the state’s borders.” Mont. Code Ann. § 75-1-201(2)(a). In 2023, the legislature added a provision that eliminated equitable remedies (i.e., the ability to “vacate, void, or delay a lease, permit, license, certificate, authorization, or other entitlement or authority”) for litigants who “claim that [an] environmental review is inadequate based in whole or in part upon greenhouse gas emissions and impacts to the climate in Montana or beyond Montana’s borders . . . .” Id. § 75-1-201(6)(a)(ii).
Reprinted courtesy of
Paul A. Briganti, White and Williams LLP and
Julia Castanzo, White and Williams LLP
Mr. Briganti may be contacted at brigantip@whiteandwilliams.com
Ms. Castanzo may be contacted at castanzoj@whiteandwilliams.com
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Limitation on Coverage for Payment of Damages Creates Ambiguity
April 03, 2013 —
Tred EyerlyUnable to discern the meaning of a provision stating that payment of damages would be made "through a trial but not any appeal", the court found an ambiguity.Parker v. Am. Family Ins. Co., 2013 U.S. Dist. LEXIS 9085 (D. Ore. Jan. 23, 2013).
The homeowners sued the general contractor for defective construction of their home. In November 2008, the homeowners reached a settlement through mediation with the general contractor. The general contractor's claims under its policies with American Family and Mid-Continent were assigned to the homeowners.
The homeowners then sued both insurers for breach of insurance contract and/or equitable contribution. American Family moved for summary judgment, claiming the homeowners did not prove their damages claim against the general contractor "through a trial but not any appeal."
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Trumark Homes Hired James Furey as VP of Land Acquisition
April 08, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to GlobeSt.com, “Homebuilder Trumark Homes has hired James Furey as VP of land acquisition.” The “veteran developer” has held positions at Meritage Homes, Richmond American Homes, and Beazer Homes USA.
“James is a versatile manager who brings a wealth of experience in many elements of the homebuilding process,” Jason Kliewer, partner and general counsel for Trumark, told GlobeSt.com. “He will be an invaluable asset as Trumark moves aggressively in the California market.”
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Georgia Court Clarifies Landlord Liability for Construction Defects
June 02, 2016 —
Chadd Reynolds - AHHC Construction Law BlogIn Cowart v. Schevitz, the Georgia Court of Appeals clarified the instances in which an out-of-possession landlord can be liable in a premises liability claim. No. A15A2036, 2016 WL 563114, at *4 (Ga. Ct. App. Feb. 15, 2016).
In this case, the plaintiff was leaving a restaurant and injured herself stepping down off of a sidewalk near the bottom of a ramp. The plaintiff filed a premises liability claim against the owner of commercial property (the “landlord”) and the operator of the restaurant (who later settled), seeking medical expenses and costs of litigation. An expert testifying on behalf of the plaintiff stated that the ramp was required to have railings pursuant to building codes and, had the railings been installed on the ramp, the plaintiff’s fall more than likely would not have occurred. The landlord moved for summary judgment, arguing that as an out-of-possession landlord, his liability to third persons for the use of the property by his tenant was precluded under O.C.G.A. § 44-7-14. The trial court denied the motion without comment, and the owner subsequently appealed.
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Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLPMr. Reynolds may be contacted at
reynolds@ahclaw.com
Expect the Unexpected (Your Design Contracts in a Post-COVID World)
April 18, 2023 —
Melissa Dewey Brumback - Construction Law in North CarolinaHave you adapted your post-COVID practice to better plan for the “unexpected” ? In particular, have you looked at–and revised– your professional services contracts to give yourself a little more breathing room for unaccounted issues that may arise? If not, no time like the present.
Don’t like that saying? How about ” a stitch in time saves nine?” No? Still nothing? What about a picture of something so completely unexpected it shocks you– say, a fireman commuting home, in fire-fighting regalia, on a tricycle? Okay, here you go…
Now that I have your attention– you should make it a practice to regularly review and update your professional services agreements, and you should consider issues such as:
- Does your agreement provide for extra compensation if you have to spend more time or a longer period providing construction administration services for material delays or labor shortages? If not, it should.
- Does your agreement have a well-written “act of God” provision– one that includes pandemic/epidemics as part of the “act of God” conditions in which a term may become void? If not, add it now!
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Melissa Dewey Brumback, Ragsdale LiggettMs. Brumback may be contacted at
mbrumback@rl-law.com
No Occurrence Found for Damage to Home Caused by Settling
October 22, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe Nebraska Supreme Court found the insurer properly denied coverage to the general contractor for damage to a home caused by settlement. Cizek Homes, Inc. v. Columbia Nat. Ins. Co., 2014 Neb. LEXIS 152 (Neb. Sept. 9, 2014).
The general contractor built and then sold the residence. Subsequently, the homeowners complained that the soil beneath their residence was settling and causing damage to their home. The homeowners presented a draft complaint to the general contractor, alleging that negligence and faulty workmanship had caused damage to the home.
The general contractor notified its carrier, Columbia. Coverage was denied.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com