A Race to the Finish on Oroville Dam Spillway Fix
October 09, 2018 —
Scott Blair - Engineering News-RecordThe Lake Oroville spillway’s 400-acre construction site is an intense flurry of activity. In one corner, an excavator driver uses an old tire as a squeegee to clean away loose rock and prep a foundation. In the steeply sloping spillway chute, a crane operator flies in a rebar cage to workers who tie it into neighboring chute wall segments. Everywhere, dump trucks buzz around the circuitous roadways while rock crushers and batch plants keep pace with dozens of dozers and excavators. Drones hover in the sky photographing and surveying the site, while inspectors pour over every detail of the finished assets.
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Scott Blair, ENRMr. Blair may be contacted at
blairs@enr.com
Construction Defects #10 On DBJ’s Top News Stories of 2015
December 10, 2015 —
Beverley BevenFlorez-CDJ STAFFThe Denver Business Journal’s top 15 news stories of 2015 covers the “Battle Over Construction Defects.” Some developers and other groups have blamed the lack of condominium development in Denver and other Colorado cities on the state’s defect laws.
After a construction-defects reform bill failed to pass the Colorado Legislature, several cities passed construction defect-related ordinances, according to the Denver Business Journal: “In November the Denver City Council voted 12-1 to approve an ordinance aimed at making it harder to file class-action lawsuits over construction defects within the city.”
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Florida Enacts Property Insurance Overhaul for Benefit of Policyholders
July 05, 2023 —
Laura Farrant & Bradley S. Fischer - Lewis BrisboisFort Lauderdale, Fla. (June 13, 2023) – On June 1, 2023, Governor Ron DeSantis signed into law CS/SB 7052 (the Act), increasing consumer protection and insurer accountability in Florida. The newly enacted and amended statutes under CS/SB 7052 bolster policyholder protections and impose greater insurer oversight, including heightened penalties for insurer misdeeds in the state under a new law that will take effect on July 1, 2023 (this legal alert does not address all of the statutory revisions associated with the Act). As House Speaker Paul Renner noted, “The insurance legislation signed by Governor DeSantis today . . . not only empowers homeowners, but also cultivates market-driven competition, ultimately leading to lower costs.”
Statutory Revisions Regarding Insurance Coverage
The Act prohibits authorized insurers from cancelling or nonrenewing a property insurance policy for a residential property or dwelling that was damaged by any covered peril until the earlier of: (a) when the property has been repaired; or (b) one year after the insurer issues the final claim payment. The Act also expands current law prohibiting authorized insurers from cancelling or nonrenewing a residential property insurance policy until 90 days after repairs are completed for damages resulting from a hurricane or wind loss that is the subject of a state of emergency declared by the Governor and for which the Office of Insurance Regulation (OIR) has issued an emergency order. See Fla. Stat. §627.4133(2)(d)(1)(a) and (b) (Notice of cancellation, nonrenewal, or renewal premium).
Reprinted courtesy of
Laura Farrant, Lewis Brisbois and
Bradley S. Fischer, Lewis Brisbois
Ms. Farrant may be contacted at Laura.Farrant@lewisbrisbois.com
Mr. Fischer may be contacted at Bradley.Fischer@lewisbrisbois.com
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Federal Magistrate Judge Recommends Rescission of Policies
February 12, 2024 —
Craig Rokuson - Traub LiebermanIn the recent case of Union Mut. Fire Ins. Co. v. 142 Driggs LLC, 2023 U.S. Dist. LEXIS 220393, Magistrate Judge Lois Bloom of the United States District Court for the Eastern District of New York recommended granting the insurer's default judgment and holding that of three policies issued to 142 Driggs LLC ("Driggs") be rescinded ab initio.
Driggs had represented on its insurance applications that it did not provide parking to anyone other than itself, tenants, and its guests at the subject insured premises. However, Union Mutual learned that Driggs had been renting out three garages to non-tenants. Second, Driggs represented that the mercantile square footage was around 1,000 square feet, when in actuality, it was larger than allowed under the policies.
Union Mutual provided underwriting guidelines in connection with its default motion, which state that "parking provided for anyone other than the insured, tenants and their guests," presents an "unacceptable risk." The guidelines also state that answering yes to any "preliminary application questions (which presumably included those regarding mercantile square footage and parking) is an "unacceptable risk." The court held that these guidelines supported a finding that Driggs made material misrepresentation and that Union Mutual relied on these misrepresentations in issuing the policies. The court, as such, recommended that the policies at issue be rescinded from inception.
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Craig Rokuson, Traub LiebermanMr. Rokuson may be contacted at
crokuson@tlsslaw.com
Indemnification Against Release/“Disposal” of Hazardous Materials
May 18, 2020 —
Brian S. Wood & Miranda R. Millerick - ConsensusDocsIt is very common, if not nearly an industry standard, for construction contracts and subcontracts to contain provisions addressing the discovery of unanticipated hazardous materials. Many of these provisions require a contractor or subcontractor to discontinue work where hazardous materials are discovered. An example of such a clause can be found in the American Institute of Architects (AIA) Document A201 (2017), Section 10.3.1, which states in part:
If the Contractor encounters a hazardous material or substance not addressed in the Contract Documents and if reasonable precautions will be inadequate to prevent foreseeable bodily injury or death to persons resulting from a material or substance, including but not limited to asbestos or polychlorinated biphenyl (PCB), encountered on the site by the Contractor, the Contractor shall, upon recognizing the condition, immediately stop Work in the affected area and notify the Owner and Architect of the condition.
A similar clause in ConsensusDocs does not require the contractor to stop work, but provides that the “Contractor shall not be obligated to commence or continue work until any Hazardous Material discovered at the Work site has been removed, rendered or determined to be harmless by the Owner as certified by an independent testing laboratory and approved by the appropriate government agency.”
Reprinted courtesy of
Brian S. Wood, Smith, Currie & Hancock LLP and
Miranda R. Millerick, Smith, Currie & Hancock LLP
Mr. Wood may be contacted at bswood@smithcurrie.com
Ms. Millerick may be contacted at mrmillerick@smithcurrie.com
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County Sovereign Immunity Invokes Change-Order Ordinance
December 20, 2017 —
Lizbeth Dison - AHC Contruction Law BlogThe recent case of Fulton County v. Soco Contracting Company, Inc. addresses two very interesting questions for local government attorneys. First, can a county ordinance bolster a defense of sovereign immunity against a contractor’s claims? Second, can a county waive sovereign immunity by failing to respond to Requests for Admission?
Facts:
County hired Contractor to construct a facility near the airport. The contract provided that change orders must satisfy a county ordinance, which required approval by the Board of Commissioners. But in emergency situations, the County Manager could approve change orders, as long as the contractor executes a proposed modification and the purchasing agent approves it.
The project suffered substantial delays, which Contractor attributed to weather, design delays, delays by the County in providing decisions on changes, and delays in obtaining permits during the federal government’s shutdown. As a result of these issues, Contractor comes County changed the scope of the contract. Contractor asserted claims against County for the delays and the changes to the work. The appellate opinion addresses the change order claims.
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Lizbeth Dison, Autry Hall & Cook, LLP
No Coverage Based Upon Your Prior Work Exclusion
October 01, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe California Court of Appeal affirmed the trial court's determination of no coverage for construction defects based upon the policy's prior work exclusion. Yu v. Landmark Am. Ins. Co., 2014 Cal. App. Unpub. LEXIS 5966 (Cal. Ct. App. Aug. 22, 2014).
Plaintiff was the owner and developer of a hotel. She contracted with ATMI Design Build to act as general contractor to construct the hotel. C&A Framing Company was a subcontractor to provide rough framing for the project. In May 2003, ATMI fired C&A before it had completed all the work required by the subcontract. After May 2003, C&A never returned to the construction site. Notice of Completion for the project was recorded April 15, 2004.
In September 2004, Landmark issued to C&A a CGL policy for the period September 18, 2004 to September 18, 2005. The policy was later cancelled, effective January 14, 2005. The policy contained an endorsement entitled, "Exclusion - Your Prior Work." The exclusion barred coverage for "'property damage' arising out of 'your work' prior to 9/18/04."
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
No Damages for Delay May Not Be Enforceable in Virginia
January 08, 2024 —
Christopher G. Hill - Construction Law MusingsAnyone who reads Construction Law Musings with any regularity (thank you by the way) knows that the contract is king in most instances here in Virginia. Any commercial construction subcontractor in Virginia is likely also very familiar with so-called “no damages for delay” clauses in construction contracts. These clauses essentially state that a subcontractor’s only remedy for a delay caused by any factor beyond its control (including the fault of the general contractor), after proper notice to the general contractor, is an extension of time to complete the work. However, in 2015 the Virginia General Assembly passed a change in the law that precluded the diminishment of any right to claims for demonstrated additional costs prior to payment. This left open the question as to which types of “diminishment” would be barred by the statute.
The recent case out of the Eastern District of Virginia federal court, Strata Solar LLC v. Fall Line Construction LLC, added a bit of clarity.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com