Insurer Must Cover Portions of Arbitration Award
October 14, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe court determined that there was coverage in a construction defect case for portions of an arbitration award. Liberty Surplus Ins. Corp. v. Century Sur. Co., 2019 U.S. DIst. LEXIS 116093 (S.D. Texas July 12, 2019).
Descon Construction contracted with the City of Edinburg, Texas, to build a library. Descon subcontracted with McAllen Steel Erectors to install the library metal roof. The roof began to leak within two months of occupancy. The leaks continued for seven years.
Edinburg sued Descon. The matter was arbitrated. The arbitration panel found that the library roof was defective, the exterior stucco system was defectively installed and certain work, including fire-caulking, had not been performed. The panel concluded that Descon was liable for breach of contract and breach of warranty. The panel determined that Edinburg was entitled to replacement of the existing roof. Further, McAllen was found to have breached its subcontract with Descon by defectively installing the roof, entitling Descon to recover $762,537 from McAllen.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Saved By The Statute: The Economic Loss Doctrine Does Not Bar Claims Under Pennsylvania’s Unfair Trade Practices and Consumer Protection Law
May 10, 2021 —
Gus Sara - The Subrogation StrategistIn Earl v. NVR, Inc., No. 20-2109, 2021 U.S. App. LEXIS 6451, the U.S. Court of Appeals for the Third Circuit (Third Circuit) considered whether, under Pennsylvania law, the plaintiff’s Unfair Trade Practices and Consumer Protection Law (UTPCPL) claims against the builder of her home were barred by the economic loss doctrine. The UTPCPL is a Pennsylvania statute that prohibits “unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce.” 73 Pa. Stat. Ann. § 201-3. The Third Circuit previously addressed the impact of the economic loss doctrine on UTPCPL claims in Werwinski v. Ford Motor Co., 286 F.3d 661 (3d Cir. 2002). In Werwinski, the court held that the plaintiff’s UTPCPL claim was barred by the economic loss doctrine. The Court of Appeals overturned its decision in Werwinski and held that the economic loss doctrine does not bar UTPCPL claims since such claims are statutory, and not based in tort.
In Earl, the plaintiff, Lisa Earl, entered into an agreement with defendant NVR, Inc. (NVR) for the construction and sale of a home in Allegheny County, Pennsylvania. Ms. Earl learned of the home through NVR’s marketing, which described the home as containing “quality architecture, timeless design, and beautiful finishes.” Ms. Earl alleged that during the construction of the home, she had further discussions with agents of NVR, who made representations that the home would be constructed in a good and workmanlike manner and that any deficiencies noted by Ms. Earl would be remedied. The defendant also assured Ms. Earl that the home would be constructed in accordance with relevant building codes and industry standards. After moving into the home, Ms. Earl discovered several material defects in the construction. She provided notice of these defects to NVR, but NVR’s attempts to repair some of the defects were inadequate.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
Construction Litigation Roundup: “Apparently, It’s Not Always Who You Know”
December 16, 2023 —
Daniel Lund III - LexologyA respondent party in a pair of international arbitrations on the losing end of roughly $285,000,000 in adverse awards attacked the awards based upon arbitrator bias.
“If there is one bedrock rule in the law of arbitration, it is that a federal court can vacate an arbitral award only in exceptional circumstances. … The presumption against vacatur applies with even greater force when a federal court reviews an award rendered during an international arbitration.”
Applying the Federal Arbitration Act (according to the court, the international arbitrations were “seated” in the United States and fell under the New York Convention, such that the FAA is required to be the basis for vacatur efforts), the court examined assertions that certain alleged non-disclosures by the panel “concealed information related to the arbitrators’ possible biases and thereby ‘deprived [respondent] of [its] fundamental right to a fair and consensual dispute resolution process.’” The aggrieved party urged that one arbitrator’s undisclosed nomination of another arbitrator to serve as president of another arbitral panel – “a position that sometimes pays hundreds of thousands of dollars” – possibly influenced the second arbitrator to side with the first. Assertions were also levied that the arbitrators’ undisclosed work with the attorneys for the claimant in other arbitrations “allowed them to become familiar with each other, creating a potential conflict of interest.”
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
My Employees Could Have COVID-19. What Now?
March 23, 2020 —
Amy R. Patton, Leila S. Narvid, Matthew C. Lewis, Robert Tadashi Matsuishi & Sarah J. Odia - Payne & FearsUpdated Guidance as of March 19, 2020.
You are concerned about potentially sick employees in the workplace. One employee is off work sick for a couple of days, and then wants to return to work. Another plans to return to work after a week of travel. Another appears to be sick at work. They are coughing, sneezing, and appear to be short of breath. You are concerned they may have COVID-19. What can you do? You're not the only one concerned -- your other employees are, too.
Your public-facing employees want to wear masks to protect themselves. One employee tells you he doesn’t want to touch anything that others in the office have touched. What are your obligations to these employees?
Below, we address questions relating to keeping employees safe from COVID-19 in the workplace without violating the Americans with Disabilities Act (ADA) or employee privacy laws.
Can I require an employee returning from days away from work due to illness to report the symptoms the employee was experiencing that kept him/her out of work?
Short answer: yes, so long as the questions are limited to whether the employee has had flu-like symptoms. Though the ADA prohibits asking employees questions related to an employee disability, COVID-19 (like the seasonal flu) likely does not rise to the level of a disability, so asking an employee about flu-like (or COVID-19-like) symptoms is unlikely to elicit information related to a disability. The Equal Employment Opportunity Commission (EEOC) has taken the position that an employer may ask if an employee is experiencing flu-like symptoms if the employee reports being ill during a pandemic.
Reprinted courtesy of Payne & Fears attorneys
Amy R. Patton,
Leila S. Narvid,
Matthew C. Lewis,
Robert Tadashi Matsuishi and
Sarah J. Odia
Ms. Patton may be contacted at arp@paynefears.com
Ms. Narvid may be contacted at ln@paynefears.com
Mr. Matthew may be contacted at mcl@paynefears.com
Mr. Robert may be contacted at rtm@paynefears.com
Ms. Odia may be contacted at sjo@paynefears.com
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Another Setback for the New Staten Island Courthouse
January 13, 2014 —
Melissa Zaya-CDJ STAFFThe new Staten Island Courthouse received another setback when James McDonough filed suit stating unsafe work conditions, according to Frank Donnelly writing for Silive. The completion date for the new multistory, $230 million complex has been rescheduled four times so far.
Fifty-eight year old James McDonough, resident of Ridgewood Queens, became injured after a fall down a shaft, and he subsequently “sued the city, state Dormitory Authority, the state Office of Court Administration and various contractors,” Donnelly reported. A total of ten defendants have been named in the suit.
According to Silive, the Office of Court Administration, Dormitory Authority and the Law Department would not comment on the pending litigation further except to say that papers have been filed and the case is under review.
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TRI Pointe Merges with Weyerhaeuser’s Real Estate Company
July 09, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Big Builder, “TRI Pointe settled--expectedly--on its mammoth $2.8 billion deal to acquire Weyerhaeuser's five home building operations in the Northwest, California/Nevada, Arizona, Texas, and the Mid-Atlantic regions, a talent-rich operator group, 27,000 building lots, and power brand names via a complex Reverse Morris Trust financial transaction.”
This now makes TRI Pointe “one of the top 10 largest public homebuilders in the United States by equity market capitalization based on the closing price of TRI Pointe common stock on July 8, 2014,” according to their press statement, as quoted in Big Builder.
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Subrogation Waiver Unconscionable in Residential Fuel Delivery Contract
April 29, 2024 —
Ryan A. Bennett - The Subrogation StrategistIn a matter of first impression, the Superior Court of Connecticut (Superior Court), in American Commerce Ins., Co. v. Eastern Fuel Corp., No. CV-206109168-S, 2024 Conn. Super. LEXIS 380, held that a waiver of subrogation provision in a consumer fuel service/delivery contract violated public policy. The Superior Court overruled the motion for summary judgment filed by Eastern Fuel Corporation (Eastern) and determined that the clause was impermissible as the contract was entered into by two parties with unequal bargaining power.
American Commerce Insurance Company (American) provided property insurance to Arlene and James Hillas (the Insureds) for their home in Woodbridge, Connecticut. The Insureds hired Eastern to service their heating system on or around October 25, 2018. The service work at the property included inspecting the oil filters and flushing the fuel lines. On November 1, 2018, when the Insureds turned the heating system on for the first time that season, the two oil tanks on the property were allegedly full. After a series of deliveries, claims that the oil levels were lower than expected, discovering oil staining on the floor and Eastern’s replacement of the oil lines, Eastern delivered another 429 gallons. However, after the delivery, additional leaks were discovered relating to the oil line replacements. Ultimately, the Insureds submitted a claim to American and American paid in excess of $59,000 for the damage incurred.
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Ryan A. Bennett, White and Williams LLPMr. Bennett may be contacted at
bennettr@whiteandwilliams.com
Illinois Lawmakers Approve Carpenters Union's Legislation to Help Ensure Workers Are Paid What They're Owed
April 19, 2022 —
Mid-America Carpenters Regional CouncilCHICAGO — Workers around the state have new protections to help ensure they are paid what's owed to them under new legislation that passed the Illinois General Assembly last week.
HB5412 makes a primary contractor liable for the failure of a subcontractor to pay wages owed to its workers. The subcontractor would in turn be required to compensate the primary contractor for any wages, damages, interest, penalties or attorneys' fees as a result of the subcontractor's failure to pay wages.
"All of us in the Carpenters Union are thrilled to see the Legislature take action on this landmark legislation," said Gary Perinar, Executive Secretary-Treasurer of the Mid-America Carpenters Regional Council. "We have been leading the fight against worker exploitation in every state, and Illinois is showing that hardworking men and women are valued and protected here. When workers are getting ripped off and not paid what they are owed, that should outrage every single person on a job site. I thank Senate President Don Harmon, Speaker Emanuel "Chris" Welch, Leader Evans, and Senator Castro for their unwavering commitment throughout this process to support working families."
About the Mid-America Carpenters Regional Council
The Mid-America Carpenters Regional Council represents over 52,000 working men and women across 324 counties in Illinois, Missouri, Kansas and Eastern Iowa. The Mid-America Carpenters Regional Council provides the construction and maintenance industries with productive, competitive and certified professionals, encompassing a wide variety of crafts and skills.
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