Court of Appeals Finds Additional Insured Coverage Despite “Care, Custody or Control” Exclusion
September 30, 2019 —
Garret Murai - California Construction Law BlogWhen things go wrong on a construction project it’s often a scramble of finger pointing. In McMillin Homes Construction, Inc. v. National Fire & Marine Insurance Company, Case No. D074219 (June 5, 2019), the California Court of Appeals for the 4th District considered whether an additional insured exclusion, excluding “property in the care, custody or control of the additional insured,” precluded a duty to defend by an insurer.
McMillin Homes Construction, Inc. v. National Fire & Marine Insurance Company
McMillin Homes Construction, Inc. was the developer and general contractor on a residential project known as Auburn Lane in Chula Vista, California. McMillin subcontracted with Martin Roofing Company, Inc. to perform roofing work. Under the subcontract, Martin was required to obtain commercial general liability insurance naming McMillin as an additional insured.
The commercial general liability insurance policy secured by Martin was issued by National Fire and Marine Insurance Company. As is typical, the policy covered “property damage” and “personal injury” arising out of an “occurrence” during the policy period. McMillin was covered as additional insured under ISO endorsement form CG 20 09 03 97.
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Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Fourth Circuit Issues New Ruling on Point Sources Under the CWA
October 02, 2018 —
Anthony B. Cavender - Gravel2GavelThe Clean Water Act (CWA) authorizes citizen suits to enforce the provisions of the law which requires a permit to discharge a pollutant from a point source into navigable waters. Earlier this year, the U.S. Court of Appeals for the Fourth Circuit, in Upstate Forever v. Kinder Morgan Energy Partners, held that discharges into groundwater, not surface water, could also trigger the regulatory authority of the CWA if there was a hydrological connection between the groundwater and the navigable, surface, waters. In its a closely-watched case, Sierra Club v. Virginia Electric & Power Company (“VEPCO”), which also involved discharges into groundwater, the Fourth Circuit was bound by this this new and controversial precedent (a Supreme Court review is very likely), but the plaintiffs in the VEPCO case could not establish that the landfill and the settling ponds used by VEPCO were “point sources”—another important element that must be established.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Stormy Seas Ahead: 5th Circuit to Review Whether Maritime Law Applies to Offshore Service Contract
July 26, 2017 —
Richard W. Brown & Afua S. Akoto - Saxe Doernberger & Vita, P.C.Earlier this year, the 5th Circuit applied the Davis factors to determine the validity of an indemnity clause in a Master Services Contract. In Larry Doiron Inc. et al., v. Specialty Rental Tool & Supply LLP et al., the court affirmed the notion that if a contract provides services on navigable waters aboard a vessel, a maritime contract exists, even if the contract calls for incidental or insubstantial work unrelated to the use of a vessel. With this decision, plaintiffs were granted indemnification for a crane injury and all was well on the open seas.
The 5th Circuit made waves, however, on July 7, 2017, when it agreed to rehear the case en banc. In its petition for rehearing, defendant STS argued that: (1) the original opinion conflicted with Supreme Court precedent by applying tort law principles to a contract case; (2) the court misapplied the Davis factors and the decision was contrary to Davis because the historical treatment of specialty well service work has been established as non-maritime; (3) the court needed to address whether a contract is subject to maritime or land-based law in the context of offshore mineral exploration.
Reprinted courtesy of
Richard W. Brown, Saxe Doernberger & Vita, P.C. and
Afua S. Akoto, Saxe Doernberger & Vita, P.C.
Mr. Brown may be contacted at rwb@sdvlaw.com
Ms. Akoto may be contacted at asa@sdvlaw.com
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Hurry Up and Wait! Cal/OSHA Hits Pause on Emergency Temporary Standards for COVID-19 Prevention
June 14, 2021 —
Michael Studenka & Jasmine Shams - Newmeyer DillionEmployers scrambling to prepare for the June 15th Reopening announced by Governor Newsom have spent the last week pouring over the revised Emergency Temporary Standards for COVID-19 Prevention (“Revised ETS”) approved by the Cal/OSHA Standards Board on June 3, 2021. After last night’s meeting of the Standards Board, however, it’s time to hit pause.
Last night, the Cal OSHA Standards Board held a specialty meeting to reconsider its Revised ETS in light of the latest guidance on face coverings issued by the California Department of Public Health (“CDPH”) on June 7, 2021. Following a presentation by the CDPH and extensive public comment, the Cal OSHA Standards Board voted unanimously to withdraw the Revised ETS and to take up the issue again at its next scheduled meeting on June 17, 2021. The net result in the interim is that California employers who intend to reopen on June 15 must initially comply with all of the requirements of the Cal/OSHA Standards Board Emergency Temporary Standards for COVID-19 Prevention as originally issued on November 20, 2020, including but not limited to, its social distancing, physical partitioning and mask wearing requirements.
Reprinted courtesy of
Michael J. Studenka, Newmeyer Dillion and
Jasmine Shams, Newmeyer Dillion
Mr. Studenka may be contacted at michael.studenka@ndlf.com
Ms. Shams may be contacted at jasmine.shams@ndlf.com
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Mediation is (Almost) Always Worth a Shot
October 17, 2022 —
Christopher G. Hill - Construction Law MusingsAs Hurricane Ian is bearing down on Florida the economy is sputtering, it is easy to lose track of things that construction professionals (among others) can control. One of those things is how to resolve your construction dispute. When initial, and hopefully business-oriented, discussions break down and the construction lawyers get involved, often more formal means are required. One “formal” possibility that should always be considered and almost always attempted is the mediation of your dispute.
I know, I pound this particular gavel often. Why? Because not only are litigation and arbitration expensive and time-draining, you are putting your fate in the hands of a judge or arbitrator to decide. Let’s face it, most contractors (and solo construction lawyers for that matter) want as much control over their businesses and projects as possible. Mediation is the only third-party dispute resolution process that allows the parties to decide their own mutual fate. This is one of the primary reasons I almost always recommend that my clients try mediation before or after filing their lawsuit or arbitration demand.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Comparing Contracts: A Review of the AIA 201 and ConsensusDocs - Part II
March 28, 2018 —
Michael Sams and Amanda Cox – Construction Executive, A publication of Associated Builders and Contractors. All Rights Reserved.Part II of this three-part series compares and analyzes important contract sections in the AIA 201 (2007 and 2017 versions) and ConsensusDocs (2014 and 2017 versions), including Schedule/Time, Consequential Damages/LDs, Claims and Disputes/ADR.
Part I covered Financial Assurances, Design Risk, Project Management and Contract Administration. Part III will cover Insurance and Indemnification and Payment.
SCHEDULE/TIME
Relevant Sections:
- 2007 & 2017 A201: Section 3.10.1
- 2014 & 2017 ConsensusDocs: Section 6.2
AIA:
- Section 3.10.1 of the 2007 A201 requires that the Contractor promptly after being awarded the Contract, prepare and submit a construction schedule providing for Work to be completed within the time limits required in the Contract Documents.
- This schedule shall be revised at appropriate intervals.
- The 2017 edition breaks down the schedule to contain date of commencement, interim milestone dates, date of substantial completion, apportionment of Work by trade or building system, and the time required for completion of each portion of the Work.
- Under section 3.10.2 of the 2007 and 2017 versions, if the Contractor fails to provide a submittal schedule, the Contractor is not entitled to any additional compensation or a time extension based on the Owner’s or the Architect’s slow processing of submittals, regardless of how long they take.
ConsensusDocs 200:
- The 2017 Contract replaces the term Contract Time and instead requires a “Schedule of the Work…formatted in detailed precedence-style critical path method that (a) provides a graphic representation of all activities and events, including float values that will affect the critical path of the Work and (b) identifies dates that are critical to ensure timely and orderly completion of the Work.”
- The Constructor must submit an initial schedule to the Owner only before, “first application for payment” and thereafter on a monthly basis. (Section 6.2.1).
- The Owner is allowed to change the sequences provided in the schedule as long as it does not “unreasonably interfere with the Work.” (Section 6.2.2).
Reprinted courtesy of
Michael Sams , Kenney & Sams and
Amanda Cox, Kenney & Sams
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4 Ways to Mitigate Construction Disputes
March 20, 2023 —
Bill Shaughnessy - ConsensusDocsResolving construction disputes in litigation (court or arbitration) can be expensive and may drag on for years. Most disputes could have been avoided, or at least mitigated, had the parties (both owners and contractors) identified contract risks during negotiations and been more proactive in communicating the risks during execution of the work. This article highlights four practical risk management approaches that help all parties focus on their mutual interest in close coordination and clear communication at the beginning of the project as well as throughout performance:
- Identifying and allocating risks;
- Accurate scheduling;
- Clear project documentation and communication; and
- Real-time dispute resolution.
The intent of these techniques is not to shift legal obligations or risks. Rather, the intent is to keep project personnel and project management for all the participants focused on communicating and working together, including responsibly confronting real problems to avoid or mitigate their impact. Allocating risks, scheduling, project documentation and communication, and real-time dispute resolution are independently relevant on a bilateral basis between the owner, designer, and the various contractors. These approaches and their diligent execution by the parties during construction contribute far more to a successful project than anything lawyers and claims consultants can contribute in after-the-fact legal proceedings.
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Bill Shaughnessy, Jones Walker LLP (ConsensusDocs)Mr. Shaughnessy may be contacted at
bshaughnessy@joneswalker.com
Are You Ready For 2015?
January 07, 2015 —
Craig Martin- Construction Contractor Advisor BlogLast month’s Engineering News Record Magazine contained an editorial noting the worst projects of the year. Are you prepared if you have a bad project?
As the editors aptly pointed out:
"By their nature, bad projects disappoint owners, incite hostility among team members, slip months and years past scheduled completions and drain finances."
ENR pointed noted a few projects from 2014 that did not go well.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com