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I’m Sorry Ms. Jackson, I [Sovereign Immunity] am For Real

June 08, 2020 — Greggory Jacobs - Florida Construction Law News Blog
The Supreme Court of Florida issued its opinion in Florida Highway Patrol v. Jackson, 2020 Fla. LEXIS 108 (Fla. Jan 23, 2020), which answered the following certified question of great public importance: Does rule 9.130 [(A)(3)(C)(XI)] permit an appeal of a non-final order denying immunity if the record shows that the defendant is entitled to immunity as a matter of law but the trial court did not explicitly preclude it as a defense? The Court’s answer to this question was “no.” But this opinion stands for much more than just a negative answer to a certified question. Indeed, this opinion has significant implications upon procedural and substantive areas of construction law, which may affect agents of the state of Florida, including Construction Engineering and Inspection professionals and consultants (“CEI”). Procedurally, the Court recognizes that Fla. R. App. P. 9.130 insufficiently protects the public and governmental interests as “it leaves too great a risk that erroneous denials of operational sovereign immunity will go unreviewed until it is too late.” Id. at * 19. By extension of this risk, the Jackson Court announced that “courts should determine entitlement to sovereign immunity as early as the record permits.” Id. at * 18. In fact, on that basis, courts can address a motion for summary judgment asserting entitlement to sovereign immunity even if there are outstanding disputes as to, say, the existence of a duty of care. Id. at 17-18. Accordingly, and in an effort to remedy the risk of erroneous denials going unreviewed until it is too late, the Court amended Fla. R. App. P. 9.130 to expand appellate review of nonfinal orders denying sovereign immunity. Jackson, 2020 Fla. LEXIS 108 at * 19; In re Amendments to Fla. Rule of Appellate Procedure 9.130, No. SC19-1734 (Fla. Jan. 23, 2020). The new form of Fla. R. App. P. 9.130 cements the policy mentioned above because it allows an appeal of a nonfinal order denying a motion for summary judgment due to entitlement to sovereign immunity. Meanwhile, under the old rule, the order was only appealable if the trial court order determined – as a matter of law – that a party was not entitled to sovereign immunity. As such, the new rule focuses on what was argued in the motion as opposed to what was written in the order. Read the court decision
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Reprinted courtesy of Greggory Jacobs, Cole, Scott & Kissane, P.A.
Mr. Jacobs may be contacted at greggory.jacobs@csklegal.com

Strategic Communication Considerations for Contractors Regarding COVID-19

April 06, 2020 — Sarah Skidmore - Construction Executive
The COVID-19 is a worldwide wildcard. Around the globe, organizations are forced to communicate with a wide variety of audiences. Audiences range from employees to customers and vendors—and more. A pandemic of this nature is new for the modern globalized workforce. Societies realize the breadth of international influence involved in a single supply chain now more than ever before. Domestically based organizations realize their place in the larger global system—and the construction industry is a perfect example. Here are key questions for leaders to ponder. 1. Who are your audience groups? In a wildcard situation, organizations are often tasked with communicating to many different audience groups and stakeholders. So, take some time to think beyond the groups that come top-of-mind such as customers, vendors, partners and owners.

Does the organization have any community-based events on the calendar?
Does the organization have professional development sessions on the calendar?
Does the organization have planned maintenance or facilities work scheduled with third parties?
Does the organization have interns or apprenticeship programs with local colleges?

Reprinted courtesy of Sarah Skidmore, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Ms. Skidmore may be contacted at sarah@skidmore-consulting.com

Wildfire Insurance Coverage Series, Part 2: Coverage for Smoke-Related Damages

July 03, 2022 — Scott P. DeVries & Yosef Itkin - Hunton Insurance Recovery Blog
For many policyholders, smoke emanating from wildfire causes as much if not more damage than the fire itself. In this post in the Blog’s Wildfire Insurance Coverage Series, we discuss damages caused by smoke emanating from wildfires. Some insurers argue that policies are limited to fire damage to the insured property and do not include smoke damage associated with nearby fires. A treatise frequently cited by insurers states otherwise: “The concept that fire insurance covers non-fire damage which is the proximate result of fire finds application also when the fire occurs on other property and causes harm to the insured property. In such case, the harm to the insured property, even though it is a non-fire harm, has long been recognized to be the result of fire, and, therefore, within the policy coverage.”[1] 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 decision
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Washington Supreme Court Sides with Lien Claimants in Williams v. Athletic Field

September 30, 2011 — Douglas Reiser, Builders Council Blog

The Washington Supreme Court issued their opinion today on Williams v. Athletic Field, perhaps the most talked about construction law case in the past few years. I have discussed this case exhaustively here on Builders Counsel. Today we have a resolution.

In an unanimous opinion issued today, the high court sided with lien filers who followed a sample form provided in RCW 60.04.091. Additionally, the court found that a lien company - and presumably other persons - could sign the lien for the lien claimant, as an agent, without invalidating the lien.

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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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Properly Trigger the Performance Bond

January 05, 2017 — David Adelstein – Florida Construction Legal Updates
A performance bond is a valuable tool designed to guarantee the performance of the principal of the contract made part of the bond. But, it is only a valuable tool if the obligee (entity the bond is designed to benefit) understands that it needs to properly trigger the performance bond if it is looking to the bond (surety) to remedy and pay for a contractual default. If the performance bond is not properly triggered and a suit is brought upon the bond then the obligee could be the one materially breaching the terms of the bond. This means the obligee has no recourse under the performance bond. This is a huge downside when the obligee wanted the security of the performance bond, and reimbursed the bond principal for the premium of the bond, in order to address and remediate a default under the underlying contract. A recent example of this downside can be found in the Southern District of Florida’s decision in Arch Ins. Co. v. John Moriarty & Associates of Florida, Inc., 2016 WL 7324144 (S.D.Fla. 2016). Here, a general contractor sued a subcontractor’s performance bond surety for an approximate $1M cost overrun associated with the performance of the subcontractor’s subcontract (the contract made part of the subcontractor’s performance bond). The surety moved for summary judgment arguing that the general contractor failed to property trigger the performance bond and, therefore, materially breached the bond. The trial court granted the summary judgment in favor of the performance bond surety. Why? Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dma@katzbarron.com

Wildfire Smoke Threatens to Wipe Out Decades of Air Pollution Progress

August 28, 2023 — Linda Poon & Immanual John Milton - Bloomberg
The US is on track to experience its worst year for smoke exposure in decades, after wildfires in Canada sent toxic plumes drifting across the border to the Midwest and the East Coast earlier this summer. In June and July, New York and Chicago saw more “very unhealthy” and “hazardous” air quality days for fine particle pollution (PM2.5) than in the same months every year since the Environmental Protection Agency began tracking PM2.5 nationally in 2000, a Bloomberg CityLab analysis of federal data found. In Washington, DC, the number of “very unhealthy” days reached the highest in over a decade. On the EPA’s air quality index scale, these days correspond with the highest levels of public health concern. Extensive exposure to PM2.5 particles, the main pollutant found in smoke, can increase the risk of a variety of problems, including heart and respiratory disease, as well as premature death. Reprinted courtesy of Linda Poon, Bloomberg and Immanual John Milton, Bloomberg Read the court decision
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Panama Weighs Another Canal Expansion at Centennial Mark

August 20, 2014 — Michael McDonald – Bloomberg
A century after the U.S. steamship Ancon first sailed through the Panama Canal, a $5.3 billion expansion delayed by bickering contractors and angry workers is nearing completion. The problem is it might not be big enough. With the expansion 16 months behind schedule, canal administrator Jorge Quijano said officials are studying whether to dig a fourth set of locks to handle a growing fleet of super-sized ships. Those include the 400-meter-long “Triple E” vessels capable of carrying more than 18,000 containers, four times more than current ships passing through the canal. “We are always analyzing the market and as soon as we can economically justify it we will begin,” said Manuel Benitez, deputy administrator of the Panama Canal Authority, adding that he thinks the current expansion is sufficient for now. “If that changes and the demand exists we are ready to begin.” Read the court decision
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Reprinted courtesy of Michael McDonald, Bloomberg
Mr. McDonald may be contacted at mmcdonald87@bloomberg.net

Late Filing Contractor Barred from Involving Subcontractors in Construction Defect Claim

March 01, 2012 — CDJ STAFF

The Colorado Court of Appeals looked at that state’s Construction Defect Action Reform Act in determining if a general contractor could add subcontractors as third-party defendants to a construction defect lawsuit. Shaw Construction, LLC was the general contraction of the Roslyn Court condominium complex, and was sued by the homeowners’ association in a construction defect case. United Builder Services was the drywall subcontractor on the project. MB Roofing had installed roofs, gutters, and downspouts. The certificate of occupancy for the last building was issued on March 10, 2004. The project architect certified completion of all known remaining architectural items in June, 2004.

The HOA filed a claim against the developers of the property on January, 21, 2009. A week later, the HOA amended its complaint to add Shaw, the general contractor. Shaw did not file its answer and third-party complaint until March 29, 2010, sending its notice of claim under the CDARA on March 30.

The subcontractors claimed that the six-year statute of limitations had ended twenty days prior. Shaw claimed that the statute of limitations ran until six years after the architect’s certification, or that the HOA’s suit had tolled all claims.

The trial court granted summary judgment to the subcontractors, determining that “substantial completion occurs ‘when an improvement to real property achieves a degree of completion at which the owner can conveniently utilize the improvement of the purpose it was intended.’”

The appeals court noted that “Shaw correctly points out that the CDARA does not define ‘substantial completion.’” The court argued that Shaw’s interpretation went against the history and intent of the measure. “Historically, a construction professional who received a complaint responded by ‘cross-nam[ing] or add[ing] everybody and anybody who had a part to play in the construction chain.’” The court concluded that the intent of the act was to prevent unnamed subcontractors from being tolled.

The court further rejected Shaw’s reliance on the date of the architect’s certification as the time of “substantial completion,” instead agreeing with the trial court that “the architect’s letter on which Shaw relies certified total completion.”

The appeals court upheld the trial court’s determination that the statute of limitation began to run no later than March 10, 2004 and that Shaw’s complaint of March 29, 2010 was therefore barred. The summary judgment was upheld.

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