Contractor Manslaughter? Safety Shortcuts Are Not Worth It
August 11, 2011 —
Douglas Reiser, Builders Council BlogIt’s been a while since I discussed the importance of safety. But, a recent article on ENR.com compelled this brief article. Don’t shortcut safety — you could be facing serious criminal repercussions.
A New York crane company owner and one of his employees are each facing a second-degree manslaughter charge for the death of two construction workers.  The charges stem from the collapse of a crane in New York City. The district attorney determined that the crane owner cut a few corners to reduce its operation costs, significantly sacrificing safety.
Another example was the 2010 trial of another New York crane operator who was charged with manslaughter. In that case, the criminal charges failed to stick, but an administrative judge found that the contractor used a damaged sling to support the steel collar binding the tower-crane mast to the 18th floor of a high-rise building being constructed. The company also used four slings instead of the eight, as specified by the crane manufacturer; improperly attached the slings and failed to pad or soften them.
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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com
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Hawaii Court Looks at Changes to Construction Defect Coverage after Changes in Law
November 06, 2013 —
CDJ STAFFA construction defect case lead at the U.S. District Court for Hawaii involved the insurer’s changed views on what was covered based on court decisions that came after the policy was written. John R. Casciano and Jessica L. Urban of Steptoe & Johnson LLP discuss the case on their firm’s website. They note that in Illinois National Insurance Company v. Nordic PCL Construction, Inc., Nordic built a retail building which soon afterwards had water leaks and property damage, due to alleged defects in the roof construction.
Nordic had purchased comprehensive general liability and umbrella polices, with coverage that included property damage. Mr. Casciano and Ms. Urban note that “at the time of contracting, the Ninth Circuit had predicted that, ‘if the Hawaii Supreme Court examined the matter, it would rule that, for purposes of insurance coverage, construction defects were “not occurrences.”’” After the policy was written, the Hawaii Intermediate Court of Appeals did rule that “construction defect claims do not constitute an ‘occurrence’ under a CGL policy.” On the basis of this, Illinois National determined that they had no duty to defend or indemnify their client.
Nordic made a claim of bad faith, but the court determined that “an insurer that denies coverage based on an open question of law does not act in bad faith, an insurer that actually relies on governing law, even if the insurer only belatedly learns of the law, cannot be said to thereby act in bad faith.”
However, the court denied a summary judgment of Nordic’s claim of negligent misrepresentation, determining that there was “a question of fact as to whether the Policies covered [or were represented as covering] only damage to third parties caused by subcontractors’ defective work.” Finally, the court found that “a reasonable jury could infer that, at the time the Polices were issued, the insurers meant to cover claims arising out of the defective work” of Nordic’s subcontractors.
They conclude that the Nordic decision “recognizes the varying consequences for coverage claims when post-contracting changes to the law may not coincide with the expectations of at least one of the parties at the time of contracting.”
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Chambers USA 2021 Recognizes Five Partners and Two Practices at Lewis Brisbois
June 07, 2021 —
Lewis BrisboisFive Lewis Brisbois partners and two Lewis Brisbois practices were recently ranked by Chambers in its 2021 USA rankings list.
Kansas City and Wichita Managing Partner Alan L. Rupe and Phoenix Managing Partner Carl F. Mariano were both ranked Band 1 for “Labor & Employment – Kansas” and “Insurance – Arizona,” respectively, while Minneapolis Partner Tina A. Syring was ranked Band 4 for “Labor & Employment – Minnesota,” and Washington D.C. Managing Partner Jane C. Luxton and Partner Karen C. Bennett were ranked Band 5 for “Environment – District of Columbia.”
Significantly, Chambers also ranked Lewis Brisbois’ Kansas Labor & Employment Practice Band 2 and the firm’s Washington D.C. Environmental Practice Band 4.
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Lewis Brisbois
Limited Number of Insurance-Related Bills Passed by 2014 Hawaii Legislature
June 11, 2014 —
Tred R. Eyerly – Insurance Law HawaiiVery few insurance-related bills survived the 2014 Hawaii Legislative session, with several consumer-friendly bills failing to make it out of committee.
Here is a summary of the bills that passed:
SB2365: Limits reimbursement of prescription medications in order to prevent drug prices from becoming an unreasonable cost driver of health care in workers' compensation and motor vehicle insurance claims.
SB2470: Appropriates general funds to provide for the sustainability of the Hawaii Health Connector, but provides for greater transparency, stakeholder engagement, and legislative involvement in the activities of the Hawaii Health Connector.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Release Of “Unknown” Claim Does Not Bar Release Of “Unaccrued” Claim: Fair Or Unfair?
July 15, 2019 —
David Adelstein - Florida Construction Legal UpdatesA general release of “unknown” claims through the effective date of the release does NOT bar “unaccrued” claims. This is especially important when it comes to fraud claims where the facts giving rise to the fraud may have occurred prior to the effective date in the release, but a party did not learn of the fraud until well after the effective date in the release. A recent opinion maintained that a general release that bars unknown claims does NOT mean a fraud claim will be barred since the last element to prove a fraud had not occurred, and thus, the fraud claim had not accrued until after the effective date in the release. See Falsetto v. Liss, Fla. L. Weekly D1340D (Fla. 3d DCA 2019) (“The 2014 [Settlement] Agreement’s plain language released the parties only from “known or unknown” claims, not future or unaccrued claims. Because there is a genuine issue of material fact as to whether the fraud claim had accrued — that is, whether Falsetto [party to Settlement Agreement] knew or through the exercise of due diligence should have known about the alleged fraud at the time the 2014 Agreement was executed — the trial court erred in granting summary judgment on those fraud claims.”).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
“But it’s 2021!” Service of Motion to Vacate Via Email Found Insufficient by the Eleventh Circuit
June 21, 2021 —
Justin K. Fortescue - White and WilliamsWhile we are all getting used to the “new normal” of working remotely and relying on emails for almost all communications, a recent decision from the United States Court of Appeals for the Eleventh Circuit provides arbitration practitioners with a stark reminder – the “notice” requirements of the Federal Arbitration Act (FAA) will be strictly enforced and providing notice of a motion to vacate via email may not qualify as proper service.
In O'Neal Constructors, LLC v. DRT Am., LLC, 991 F.3d 1376 (11th Cir. 2021), O’Neal Constructors, LLC (O’Neal) and DRT America (DRT) entered into a contract containing an arbitration provision. Following a dispute, the parties went to arbitration and, on January 7, 2019, the panel issued an award requiring DRT to pay O’Neal a total of $1,415,193. The amount awarded to O’Neal consisted of two parts: $765,102 for the underlying contract dispute and $650,090 for reimbursement of O’Neal’s attorneys’ fees. While DRT paid O’Neal the first portion of the award, DRT refused to pay the portion that related to O’Neal’s attorneys’ fees.
On April 4, 2019, as a result of DRT’s refusal to pay O’Neal’s attorneys’ fees, O’Neal filed a motion to confirm the award in Georgia state court (which was subsequently removed to the Northern District of Georgia). The next day, in a separate action, DRT filed a motion to vacate the attorneys’ fees portion of the award and, that same night, DRT’s counsel emailed O’Neal’s counsel a “courtesy copy” of DRT’s memorandum in support of the motion to vacate. A few weeks later, on April 30, 2019 (i.e., more than three months after the award was issued), DRT served O’Neal (via U.S. Marshall) with a copy of the motion to vacate.
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Justin Fortescue, White and WilliamsMr. Fortescue may be contacted at
fortescuej@whiteandwilliams.com
Glendale City Council Approves Tohono O’odham Nation Casino
August 13, 2014 —
Beverley BevenFlorez-CDJ STAFFWith a 4-3 vote, the Glendale, Arizona city council “approved an agreement with the Tohono O’odham Nation to build a casino adjacent to the city,” according to the Arizona Public Media. The tribe, under the agreement, “will commit more than $25 million over the next 20 years to the city.”
The agreement also stipulates that Glendale “will try to convince state and federal officials to end their opposition to the casino plans.” City Councilman Gary Sherwood stated that he “he doesn't believe the tribe has firm plans for construction yet, but he said he wouldn't be surprised if there was gaming on the site by next fall.”
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New York Court Enforces Construction Management Exclusion
March 14, 2018 —
Traub Lieberman Straus & Shrewsberry LLPIn its recent decision in
Houston Cas. Co. v. Cavan Corp. of NY, Inc., 2018 N.Y. App. Div. LEXIS 1138 (N.Y. 1st Dep’t Feb. 20, 2018), a New York appellate court had occasion to consider the application of a construction management exclusion in a general liability policy.
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Traub Lieberman Straus & Shrewsberry LLP