COVID-19 Information and Resources
May 04, 2020 —
Richard H. Glucksman, Esq. & Brian D. Kahn, Esq. – Chapman Glucksman Dean & Roeb BulletinINTRODUCTION
The current COVID-19 health crisis has greatly impacted nearly every aspect of our business and personal lives. The constant flow of rapidly evolving, and often contradictory information creates its own challenges for those who are responsible for ensuring compliance with relevant regulations and best practices while still moving forward with their business and family activities.
This bulletin differs from most Chapman, Glucksman, Dean & Roeb bulletins in that it does not highlight a recent case, statute or a single development, but rather acts as a resource and “links” to provide you with needed information and to simplify your search for critical information during this unusual and challenging time.
CIVIL LITIGATION: CLOSURES AND RESTRICTIONS
The State and Federal Court systems in California have drastically reduced their operations. The Governor issued Executive Order N-38-20, this suspends certain limitations on the Chief Justice’s authority, making it possible for orders to be issued adapting the Court’s operations to address the COVID-19 health crisis. As of this time, the most recent statewide order from the Chief Justice is the March 30, 2020 Order which allows Courts to utilize remote technology when possible. The March 30, 2020 Order also clarifies a prior Order suspending all trials for 60 days. As many of you are aware, civil trials in California must commence within five years of the initiation of the action, this is commonly referred to as the “five year rule”. While the five year time period was initially extended by the Chief Justice for 60 days, the Judicial Council subsequently adopted a series of Emergency Rules, including one which extends this to six months for all civil actions filed on or before April 6, 2020. The Judicial Council also adopted rules tolling the statutes of limitation for civil causes of action are tolled from April 6, 2020 to 90 days after the state of emergency has ended.
In addition to the statewide orders and rules, counties have enacted their own rules. Los Angeles Superior Court, for instance, has closed some locations while others remain open on a limited basis. On March 17, 2020 an Order was issued limiting the Court to “essential functions” through April 16, 2020. However, on April 15, 2020, a further Order extended the closure through May 12, 2020. While truly urgent Ex Partes may go forward, all regularly set hearings will be continued until after June 22, 2020. Trials will begin after June 22, 2020 with non-priority trials anticipated to start in later August or September. Notably, any deadlines imposed by current trial or hearing dates still stand until the specific dates are continued.
As with other aspects of the COVID-19 health crisis, the impact upon Civil Litigation continues to evolve, for the most up to date information we include the following links to the California Courts. The first page includes links to all the State and County Orders, the second page is for the Judicial Council Rules.
Links:
https://newsroom.courts.ca.gov/news/court-emergency-orders-6794321
https://newsroom.courts.ca.gov/news/judicial-branch-emergency-actions-criminal-civil-and-juvenile-justice
STATE AND LOCAL STAY AT HOME ORDERS
The State of California declared a state of emergency on March 4, 2020. On March 13, 2020 the President declared a national state of emergency. On March 19, 2020 Governor Newsom issued Executive Order N-33-20, also known as the “Stay at Home” order. This orders all Californian’s to stay at home, unless they are part of an essential businesses are exempt which generally includes construction and insurance. Generally, Californians are allowed to run essential errands, but they are not to congregate with those outside of their household.
In addition to the State, many cities and counties have enacted additional orders regarding whether certain types of businesses can remain open, use of parks, trails and other public amenities as well as what type of protective measures must be adhered to such as covering your face in public. As with Civil Litigation, the State and Local Government regulations continue to evolve. A link to the State’s COVID-19 page is below and we also encourage you to check your local City and County sites for additional information.
https://covid19.ca.gov/
BUSINESS AND FINANCIAL GUIDELINES
The impact of COVID-19 is unprecedented. While “essential businesses” may remain open for customers, steps must be taken to protect the health of both employees and customers. There are both State and, in many instances, Local Government regulations addressing these precautions. In addition to taking safety measures to protect the health of all involved, there are a multitude of financial concerns to be addressed. While most people have already heard about the moratorium on residential and commercial evictions, this does little to address how property owners will receive funds to pay their financial obligations, how tenants can pay their other obligations, how either can make payroll and most importantly, how employees who can no longer work due to their “non-essential” business being closed can put food on their tables.
The Coronavirus Aid, Relief, and Economic Security Act (the “CARES” act) may provide financial relief for many business by means of loans, some of which may be forgivable, and tax credits. The CARES act also modifies the Family Medical Leave Act (“FMLA”) to provide paid leave for those who cannot work due to COVID-19 as well as other benefits. The IRS has extended the deadline to file and pay taxes to July 15, 2020. Additionally, there are other Federal and State benefits which may be available for those whose jobs are impacted.
The financial impacts of COVID-19 are far reaching and continue to evolve. The Department of Insurance ordered insurance companies to return premiums for at least the months of March and April. This applies to certain lines of insurance where the risk of loss has fallen substantially. However, business interruption, environmental and pollution claims have increased exponentially. While most such policies require some physical damage in order to trigger an occurrence, there has been some discussion of legislation deeming the COVID-19 pandemic to fulfill the physical damage requirement.
If your business has been closed or impacted by COVID-19 we encourage you to review your insurance policies and key contracts to ascertain what your rights and obligations are as well as whether you may have any coverage for your losses. Just as importantly, speak with your business partners including vendors, customers and employees to ascertain their capabilities and willingness to work through this crisis.
US Department of Labor OSHA Guidelines:
https://www.osha.gov/SLTC/covid-19/
California Labor & Workforce Development Agency Resource Page:
https://www.labor.ca.gov/coronavirus2019/
California Employment Development Department:
https://www.edd.ca.gov/about_edd/coronavirus-2019.htm
CONSTRUCTION GUIDELINES
Many of our clients are involved in the construction industry. Construction has been deemed an essential activity and is exempt from many of the “stay at home” orders but certain protections and regulations still apply. In addition to the general workplace guidelines discussed above certain jurisdictions are providing guidance as to how to provide a safe construction site workplace. We have included a link the Los Angeles Department Building and Safety guidelines below.
However, in some instances work on a project may be delayed or may not be able to progress due to the project owner stopping work or the inability of subcontractors or suppliers to continue as originally intended. In this case one should review their contracts to see what justifies delay and inability to perform by either party and the impact thereof. Contracts should also be evaluated to ascertain whether the costs associated with compliance with the new COVID-19 regulations are a recoverable cost under the contract. As with the general business discussion above, contractors should review all available insurance, including builder’s risk to ascertain the existence of possible coverage.
LA DBS guidelines:
https://ladbs.org/docs/default-source/publications/misc-publications/construction-site-guidance.pdf
SUMMARY
The COVID-19 health crisis has had and, for the foreseeable future, will have a broad and severe impact on our society. The variety of evolving regulations on the Federal, State and Local Government levels make it challenging to comply, especially for businesses in operation. There are also a variety of resources available to help ensure compliance with these regulations as well as the financial and physical viability of our communities’ companies and employees. Please do not hesitate to contact us if you need any assistance in navigating these rules and resources.
Reprinted courtesy of
Richard H. Glucksman, Chapman Glucksman Dean & Roeb and
Brian D. Kahn, Chapman Glucksman Dean & Roeb
Mr. Glucksman may be contacted at rglucksman@cgdrlaw.com
Mr. Kahn may be contacted at bkahn@cgdrlaw.com
Read the court decisionRead the full story...Reprinted courtesy of
Old Case Teaches New Tricks
March 16, 2017 —
Angela A.L. Connor & Curtis W. Martin - Peckar & Abramson, P.C.Eight years after completion of the wharf project, Zachry and the Port of Houston continue to slug
it out in the appellate courts and continue to refi ne Texas construction law along the way. In the
latest appellate opinion, the Court of Appeals details the general contractor’s control of the means
and methods of their work without interference from a governmental entity. It also supports a
subcontractor’s use of a pass-through claim as a cost efficient way to recover damages.
By now most of us are familiar with the project and the previous decisions. Zachry sued the Port
claiming breach after the Port denied Zachry the right to continue construction using its frozen
cutoff wall. The Texas Supreme Court upheld the jury’s $20 million verdict for Zachry, ruling that
the Port’s “no damages for delay” clause would not bar Zachry’s claim in light of the Port’s active
interference with Zachry’s work. The Supreme Court then sent the case back to the Court of
Appeals to consider other arguments that the Port had made.
That led to the most recent decision. In December, 2016, the Houston Fourteenth Court of Appeals
ruled in favor of Zachry on all issues and affirmed the jury verdict. In doing so, the Court of Appeals
provides several lessons or reminders on Texas Construction law.
Reprinted courtesy of
Angela A.L. Connor, Peckar & Abramson, P.C. and
Curtis W. Martin, Peckar & Abramson, P.C.
Ms. Connor may be contacted at aconnor@pecklaw.com
Mr. Martin may be contacted at cmartin@pecklaw.com
Read the court decisionRead the full story...Reprinted courtesy of
Connecticut Court Clarifies Construction Coverage
June 28, 2013 —
CDJ STAFFThe Connecticut Supreme Court has recently ruled on a case in which breach of contract and bad-faith claims were made against an insurer in an construction defect case. Joseph K. Scully of Day Pitney LLP discussed the case in a piece on Mondaq.
Mr. Scully noted that the background of the case was that Capstone Building was the general contractor and project developer of a student housing complex for the University of Connecticut. Unfortunately, the building had a variety of problems, some of which were violations of the building code. Mr. Scully noted that the building had “elevated carbon monoxide levels resulting from inadequate venting, improperly sized flues.” Capstone entered into mediation with the University of Connecticut. Capstone’s insurer, the American Motorists Insurance Company (AMICO), declined involvement in the participation. Afterward, Capstone sued AMICO. The issues the court covered involved the insurance on this project.
The court addressed three questions. The first was “whether damage to a construction project caused by construction defects and faulty workmanship may constitute ‘property damage’ resulting from an ‘occurrence.’” The court concluded that it could “only if it involved physical injury or loss of use of ‘nondefective property.’”
The second question dealt with whether insurers were obligated to investigate insurance claims. The court, “agreeing with the majority of jurisdictions,” did not find “a cause of action based solely on an insurer’s failure to investigate a claim.” Under the terms of the contract, it was up to AMICO to decide if it was going to investigate the claim.
Thirdly, the court examined whether “an insured is entitled to recover the full amount of a pre-suit settlement involving both covered and noncovered claims after an insurer wrongfully disclaims coverage.” The court concluded that the limits are that the settlement be reasonable, the policy limit, and the covered claims.
Mr. Scully concludes that the decision will limit “the scope of coverage for construction defect claims” and “also imposes reasonable requirements on an insured to allocate a settlement between covered and noncovered claims.
Read the court decisionRead the full story...Reprinted courtesy of
Walking the Tightrope of SB 35
December 22, 2019 —
Robert Howard, Alexander Walker and Matt Olhausen - Gravel2Gavel Construction & Real Estate Law BlogDevelopers in California know that getting approval to build new housing projects can be extremely difficult, time-consuming, and expensive. But a new policy is finally coming into full effect which could help developers cut through those barriers. SB 35, enacted in 2017, streamlines the approval process for housing developments in areas with inadequate housing supply, so long as the developments meet certain criteria.
We have written elsewhere about the initial impacts of SB 35. SB 35 has successfully allowed some developers to obtain their entitlements quickly and easily through a streamlined process, but some local governments have resisted the use of SB 35. For example, the City of Los Altos denied an application that attempted to obtain streamlining through SB 35, prompting a nonprofit housing organization to sue. In Cupertino, the Planning Commission Chairman advocated in April 2019 for rescinding the SB 35 approval of the redevelopment of the Vallco Mall, which would include over 2,400 units of housing, while some residents have sued to block the development. As a result, it is crucial for developers to understand the details of SB 35 and make sure to meet all of its requirements. Any misstep may allow a recalcitrant local government to deny that a development project qualifies for SB 35 treatment and attempt to block it.
In November 2018, the state Department of Housing and Community Development (HCD) released Guidelines to clarify the criteria for SB 35 and assist cities in determining whether projects qualify for streamlining.
Reprinted courtesy of Pillsbury attorneys
Robert Howard,
Alexander Walker and
Matt Olhausen
Mr. Howard may be contacted at robert.howard@pillsburylaw.com
Mr. Walker may be contacted at alexander.walker@pillsburylaw.com
Mr. Olhausen may be contacted at matt.olhausen@pillsburylaw.com
Read the court decisionRead the full story...Reprinted courtesy of
Manhattan Home Sales Rise at Slower Pace as Prices Jump
July 02, 2014 —
Prashant Gopal – BloombergManhattan apartment sales rose at the slowest pace in more than a year, indicating a surge in demand is easing as prices jump and inventory climbs from record lows.
Purchases of co-ops and condominiums increased 6.3 percent in the second quarter from a year earlier, the smallest gain since the start of 2013, according to a report today from appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. The median price rose 5.2 percent to $910,000, and the average price per square foot surged 10 percent to $1,268.
Higher prices are encouraging more sellers to list properties and softening competition among buyers. The market is taking a “breather” after sales rose by an average of 28 percent in each of the previous four quarters, said Jonathan Miller, president of New York-based Miller Samuel.
Read the court decisionRead the full story...Reprinted courtesy of
Prashant Gopal, BloombergMr. Gopal may be contacted at
pgopal2@bloomberg.net
Quick Note: Mitigation of Damages in Contract Cases
October 02, 2018 —
David Adelstein - Florida Construction Legal UpdatesIn an earlier article, I discussed an owner’s measure of damages when a contractor breaches the construction contract. This article discussed a case where the contractor elected to walk off a residential renovation job due to a payment dispute when he demanded more money and the owners did not bite. This case also discussed the commonly asserted defense known as mitigation of damages, i.e., the other party failed to properly mitigate their own damages.
In the breach of contract setting, mitigation of damages refers to those damages the other side could have reasonably avoided had he undertaken certain (reasonable) measures. This is known as the doctrine of avoidable consequences.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Wildfire Insurance Coverage Series, Part 7: How to Successfully Prepare, Submit and Negotiate the Claim
August 22, 2022 —
Scott P. DeVries & Yosef Itkin - Hunton Insurance Recovery BlogPrior posts in this series have discussed insurance coverage issues that pertain directly to wildfire claims, but we have not yet addressed how one proceeds following a loss. In this post in the Blog’s Wildfire Insurance Coverage Series, we discuss the preparation, submission and negotiation of the insurance claim.
Preparing a Claim
As different policies provide different timelines, where possible, it is advisable to submit the claim as soon as reasonably possible. Insurers commonly cite late submission as a basis for denial with jurisdictions varying on the import of “late” submission.
Insurers have a right to reasonable documentation of a claim before paying. Often, they will decline to consider a claim on its merits until such documentation is provided. The policy will specify whether to submit a hard copy or file online, but either way it is advisable to maintain a copy online or in a remote geographic location.
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 decisionRead the full story...Reprinted courtesy of
Congratulations to BWB&O’s Newport Beach Team on Obtaining a Defense Verdict in Favor of their Subcontractor Client!
April 02, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara’s Newport Beach Partner Morgan Stiefel and Associate Brandon Cook obtained a defense verdict after years-long litigation in favor of their subcontractor client.
This lawsuit stemmed from a claim made by Plaintiff for eye injuries arising out of claimed negligence and strict liability associated with our client’s performance of a sandblasting job at a construction site adjacent to Plaintiff’s home. Plaintiff alleges that while she was in her backyard, sand hit her in the eyes at a high velocity speed, resulting in permanent damage to her eyes.
We argued our clients took all necessary safety precautions in the performance of this job, and Plaintiff’s eye irritation symptoms could not have been caused by our client. All of her alleged injuries were either pre-existing or could be explained by circumstances other than our client’s actions. Through expert testimony and our arguments, we were able to show the jury that Plaintiff lied about the sand entering her eyes at a high velocity and her symptoms being caused by our clients’ performance of the sandblasting job.
Read the court decisionRead the full story...Reprinted courtesy of
Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
