WSDOT Excludes Non-Minority Women-Owned DBEs from Participation Goals
June 15, 2017 —
Ellie Perka - Ahlers & Cressman PLLCA drastic change has been implemented by the Washington State Department of Transportation (“WSDOT”) to the Disadvantaged Business Enterprise (“DBE”) Program in Washington. Effective June 1, 2017, WSDOT has implemented a “waiver” to exclude women-owned DBEs[i] from qualifying toward Condition of Award (“COA”) Goals on federally-funded projects. This move is significant. It will likely result in long-lasting detrimental impacts on the DBE community, women-owned businesses, and the entire construction community in Washington. The construction industry should be in an uproar over this change. Instead, it has largely gone unnoticed (likely because its impacts have not yet been felt). It is a de facto exclusion of women-owned businesses from the DBE program, and the severity of this change cannot be overstated.
Under the waiver, women-owned businesses no longer satisfy COA Goals on federally-funded projects (i.e., projects receiving funding from the Federal Highway Administration) advertised after June 1, 2017. Existing contracts are not impacted and may continue to utilize women-owned DBEs to satisfy COA Goals until the project is complete. The waiver is not retroactive.
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Ellie Perka, Ahlers & Cressman PLLCMs. Perka may be contacted at
eperka@ac-lawyers.com
New York Court Finds Insurers Cannot Recover Defense Costs Where No Duty to Indemnify
March 01, 2021 —
Tred R. Eyerly - Insurance Law HawaiiIn a case of first impression, the Supreme Court of New York, Appellate Division, found the insurer had no right to reimbursement of defense costs paid to defend the insured. Am. W. Home Ins. Co. v. Gjoaj Realty & Mgt. Co., 2020 N.Y. App. Div. LEXIS 8286 (N.Y. App. Div. Dec. 30, 2020).
Gjonaj Realty was sued by Viktor Gecaj when he fell from a ladder at the premises managed by Gjonaj Realty. The matter was not tendered to American Western Home Insurance Company until four years after the accident and after a judgment of $900,000 had been entered against Gjonaj Realty after its default. American denied coverage after late notice was given. Thereafter, the Supreme Court in the underling action vacated the default judgment. American then agreed to defend under a reservation of rights.
The Appellate Division reversed the vacatur of the default judgment and reinstated the default against the insured. American then advised Gjonaj Realty that it was denying coverage and reserving its right to recover any fees and costs incurred in defending the underlying action.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
2013 May Be Bay Area’s Best Year for Commercial Building
November 20, 2013 —
CDJ STAFFA tech boom has resulted in something of a commercial building boom for the Bay Area. The region will see about $6 billion in commercial construction projects during 2013. This is better than the totals for 2012, 2011, and 2009. During that period, however, 2010 set a record for the area with $6 billion of construction. Some estimates see 2013 beating that with as much as $6.7 billion in construction by year’s end.
The surge has been attributed to job creation. One Bay-area company, Infoblox, moved into a new office complex, after extensive renovation. The company had 250 employees and now has room to expand to 500 employees.
But 2014 could be even better. Apple is about to begin construction of its new campus, which is expected to cost the company $5 billion.
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Liquidating Agreements—Bridging the Privity Gap for Subcontractors
September 03, 2015 —
Craig Martin – Construction Contractor AdvisorWhat is a subcontractor to do when the owner has demanded additional work, but has refused to pay for it? Typically, a subcontractor cannot sue the owner because the subcontractor doesn’t have a contract with the owner. Perhaps the subcontractor and general contractor should enter into a liquidating agreement through which the general contractor can pursue the claim on behalf of the subcontractor.
Liquidating agreements bridge the privity gap between owners and subcontractors who sustain damages because of the others actions. Liquidating agreements or pass-through agreements grant the general contractor a release of its liability to the subcontractor after the general contractor prosecutes the subcontractor’s pass-through claim against the owner and gives the subcontractor any recovery.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Expert Can be Questioned on a Construction Standard, Even if Not Relied Upon
August 07, 2022 —
Garret Murai - California Construction Law BlogIt’s not uncommon in construction defect litigation for each side retain one or more experts to give their opinion as to whether something was constructed in accordance with the standard of care. This usually results in what we legal practitioners call a “battle of the experts.”
The California Code of Civil Procedure and Evidence Code include specific provisions applicable to experts including when they must be disclosed, when and how they can be deposed, and what opinions they can render. When attempting to challenge an expert it is not uncommon for one side to argue that the other side’s expert did not consider a certain fact or certain standard in reaching his or her opinion, therefore, allowing that party to argue at trial that the expert’s opinion is somehow flawed.
However, there are also certain limitations, including a limitation restricting a party from cross-examining an expert on any scientific, technical, or professional test, treatise, journal or similar publication if the witness did not rely on such publication in arriving at or forming his or her opinion. The next case,
Paige v. Safeway, Inc. (2021) 74 Cal.App.5th 1108, involved a case of first impression: Namely, whether an expert who did not rely on a publication in forming his or her opinion can nevertheless be questioned on a publication (in this case an ASTM standard) because the publication is a “reliable authority.”
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Slump in U.S. Housing Starts Led by Multifamily: Economy
September 24, 2014 —
Jeanna Smialek – BloombergHousing starts slumped in August from the highest level in almost seven years, reflecting a setback in multifamily projects that are at the forefront of the rebound in U.S. real estate.
Beginning home construction fell 14.4 percent, the most since April 2013, to a 956,000 annualized rate following July’s revised 1.12 million pace that was the strongest since November 2007, the Commerce Department said today in Washington. Work on apartments and condominiums, which tends to be volatile, dropped 31.7 percent after jumping 44.9 percent in July.
As more Americans decide that homeownership isn’t for them because wage growth is slow and qualifying for mortgages remains difficult, builders have focused on putting up more rental units, which means the industry will see bigger swings month to month. The average number of multifamily units started over the past 12 months was the most since 2006.
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Jeanna Smialek, BloombergMs. Smialek may be contacted at
jsmialek1@bloomberg.net
Hold on Just One Second: Texas Clarifies Starting Point for Negligence Statute of Limitations
July 11, 2022 —
Lian Skaf - The Subrogation StrategistIn construction or similar ongoing projects, problems often pop up. Sometimes they can pop up again and again. Making things even more complicated, one problem may affect another, seemingly new problem. When these construction problems result in property damage, timelines tend to overlap and determining when a statute of limitation begins to run for a particular claim can be difficult. Especially in states with short statute of limitations for tort claims like Texas, knowing when a statute begins to run is crucial for a subrogation professional.
In Hussion St. Bldgs., LLC v. TRW Eng’rs, Inc., No. 14-20-00641-CV, 2022 Tex. App. LEXIS 2193, 2022 WL 1010313, the Court of Appeals of Texas provided clarity on when the two-year statute of limitations for tort claims begins to run. Reversing the judgment from the lower court, the appellate court denied summary judgment to the defendant, holding that, despite there being existing issues with the ongoing construction project, the negligence cause of action for Hussion Street Buildings, LLC (Hussion) did not begin to run more than two years prior to filing suit.
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Lian Skaf, White and Williams LLPMr. Skaf may be contacted at
skafl@whiteandwilliams.com
Loss Caused by Subcontractor's Faulty Work Covered in Georgia
January 17, 2013 —
Tred Eyerly, Insurance Law HawaiiThe Georgia Court of Appeals found a subcontractor was covered under a CGL policy for loss caused by alleged faulty workmanship. Maxum Indem. Co. v. Jimenez, 2012 Ga. App. LEXIS 970 (Ga. Ct. App. Nov. 20, 2012).
Jimenez was hired as a subcontractor to install pipes for a dormitory construction project at Georgia Southern University. Subsequent to the construction, a pipe burst occurred at the dormitory, causing damage to several units. After a jury trial, Jimenez was found liable for $191,382 in damages that arose from his negligent pipe work.
Jimenez was insured under a CGL policy issued by Maxum. Maxum filed a suit for a declaratory judgment, seeking a declaration that the claim against Jimenez was not covered.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com