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.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Shutdowns? What A Covid-19-Safe Construction Site Looks Like
April 20, 2020 —
ENR Editors - Engineering News-RecordThere’s no end to published opinions about construction project shutdowns where the widely different types of jobsites are reduced to a single Dickensian nightmare crying out to be closed during this COVID-19 pandemic.
ENR Editors
ENR may be contacted at ENR.com@bnpmedia.com
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California Complex Civil Litigation Superior Court Panels
December 31, 2014 —
Richard H. Glucksman, Esq., Jon A. Turigliatto, Esq., and David A. Napper, Esq. – Chapman Glucksman Dean Roeb & Barger BulletinThe Complex Civil Litigation Program is relatively new as it has only existed in California
since 2000. Complex divisions dedicate courtrooms solely for litigation of complex civil
cases that require exceptional judicial management including construction defects, antitrust,
securities, toxic torts, mass torts, and class actions. Complex civil courtrooms help the trial
court operate in a more efficient, expeditious, and effective manner. A complex court
reduces costs for litigants by streamlining motion practice and expeditiously resolving
discovery disputes.
Not all counties have dedicated complex civil divisions. For those that do, each county has
its own local rules, and some complex divisions have their own particular set of rules. The
Judicial management of complex cases begins early, and is applied continuously and actively
with the idea that final resolution be expedited as much as possible. In focusing on
cooperation amongst the parties to achieve these goals, often requiring joint statements to
the court and a prohibition on discovery motions until after the parties have formally metand-
conferred on the issues. Moreover, complex cases are centralized and are assigned to
one highly skilled Judge for all purposes.
The first six California counties to create a Complex Civil division include Alameda, Contra
Costa, Los Angeles, Orange, San Francisco, and Santa Clara. Riverside County Superior
Court is the most recent California County to add a Complex division, effective January 2015.
Riverside county Superior Court’s Complex department consists of ten civil judges, seven of
which are in the main courthouse with Riverside. Riverside county expects to consolidate all
complex civil litigation into one courtroom by January 2015. Riverside county Judge Sharon
Waters state that "[i]t's been something that I personally have felt has been long overdue"
and that "[t]he idea is that put it with one judge and let him or her develop the expertise."
Judge Waters believes "[t]he potential value of establishing a complex litigation courtroom
[is that] it allows the judge to focus on the cases full time."1
As of October 2014, Riverside county had about 450 to 500 pending cases designated as
complex, over fifty percent (50%) of which involved construction defect matters. The sole
Judge who will preside over the complex cases has not yet been named.
1 Jolly, Vik. "Riverside to Shift Complex Civil Cases to 1 Courtroom." Los Angeles Daily Journal (October 13,
2014)
Reprinted courtesy of Chapman Glucksman Dean Roeb & Barger attorneys
Richard H. Glucksman,
Jon A. Turigliatto and
David A. Napper
Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com;
Mr. Turigliatto may be contacted at jturigliatto@cgdrblaw.com;
and Mr. Napper may be contacted at dnapper@cgdrblaw.com
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Definitions Matter in Illinois: Tenant Held Liable Only for Damage to Apartment Unit
September 09, 2024 —
Gus Sara - The Subrogation StrategistIn Phila. Indem. Ins. Co. v. Gonzalez, No. 1-23-0833, 2024 Ill. App. Unpub. LEXIS 1372, the Appellate Court of Illinois considered whether the terms of a lease agreement limited a tenant’s liability for fire damages, a fire caused by her negligence, to her apartment unit only. The plaintiff insured the subject apartment building, which incurred damage to several units as result of a fire in the tenant’s unit. The lease defined “Premises” as the specific apartment unit occupied by the tenant and held the tenant responsible for damage caused to the Premises. While the court found that the lease permitted the plaintiff to subrogate against the tenant, it held that the lease terms limited the damages to the tenant’s apartment unit only.
In Gonzalez, the plaintiff’s insured owned a multi-unit apartment building in Chicago. In September 2019, the building owner entered into a lease agreement with the defendant for apartment Unit 601. The lease stated that Unit 601 was the “Leased Address (Premises).” Another provision stated that building owner “hereby leases to Tenant(s) and Tenant(s) hereby leases from Landlord(s) for use as a private dwelling only, the Premises, together with the fixtures and appliances (if any) in the premises…” The lease also stated that “Tenant shall be liable for any damage done to the premises as a result of Tenant’s or Tenant’s invitees, guests or others authorized to reside in the Premises [sic] direct action, negligence, or failure to inform Landlord of repairs necessary to prevent damage to the Premises.”
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
Insurer Prohibited from Bringing Separate Contribution Action in Subrogation to Rights of Suspended Insured
January 15, 2019 —
Christopher Kendrick & Valerie A. Moore - Haight Brown & Bonesteel LLPIn Travelers Property Casualty Co. of Amer. v. Engel Insulation, Inc. (No. C085753, filed 11/30/18), a California appeals court held that an insurer may not file its own action to assert claims solely as a subrogee of a suspended corporation, where the corporation could not otherwise assert the claims on its own behalf.
In Engel, a homeowners association filed a construction defect action against the developer, Westlake. Travelers defended Westlake as an additional insured on the policy of a subcontractor. After the case settled, Travelers brought a subrogation action against another subcontractor for contribution to the defense costs. However, Westlake had its corporate status suspended for failure to pay taxes, and the subcontractor moved for judgment on the pleadings, which was granted.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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Harmon Tower Demolition on Hold Due to Insurer
November 27, 2013 —
CDJ STAFFPermission for CityCenter to demolish Harmon Tower over claims of dangerous construction defects have been withdrawn by the judge in the case after the building’s insurer said it needed more time to investigate. After they were granted permission to demolish the building on August 23, CityCenter filed a claim of total loss with their insurer FM Global on August 27.
Now FM Global is saying that they need to further inspect the building. Meanwhile, a demolition contractor has already gained approval to start removing the exterior glass. And things stand, it looks as if that won’t be happening on the planned date of December 2.
CityCenter contends that FM Global has already done their inspections, describing FM Global’s prior actions as “the most extensive investigation of anyone,” according to Mark Ferrario, an attorney for CityCenter.
Also, the initial plan to implode the building has been rejected. Should demolition proceed, the building will be dismantled floor by floor.
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Texas Central Wins Authority to Take Land for High-Speed Rail System
October 03, 2022 —
Barclay Nicholson & Erica Gibbons - Sheppard Mullin Construction & Infrastructure Law BlogMove over luxury bus lines and quick flights. Central Texans should be on the lookout for bulldozers and train stops. On June 24, 2022, the Supreme Court of Texas held that Texas Central Railroad & Infrastructure, Inc. and related entities (collectively “Texas Central”) have eminent domain authority to acquire property for a proposed high-speed rail system between Dallas and Houston.
[1] Specifically, the Court held that the corporation qualifies as an “interurban electric railway company” under the Texas Transportation Code. This ruling grants Texas Central the broad condemnation authority to procure land for the project.
Texas Central has Statutory Authority to Take Land
The plaintiff in the matter, a farm owner with property south of Dallas along the proposed path of the bullet train, challenged the companies power to condemn land. The landowner’s declaratory judgment action challenged Texas Central’s eminent-domain authority. Under Texas law, condemnation power must be conferred by the legislature, either expressly or by necessary implication.
[2]
Here, Texas Central was created for the purpose of constructing, acquiring, maintaining, or operating lines of electric railway between Texas municipalities. The Court found that Texas Central is engaged in activities to further that purpose. Therefore, the Court concluded, that although legislators did not contemplate high-speed railways at the time of drafting the Transportation Code, Texas Central nonetheless qualified as “interurban electric railway companies” under the statute.
Reprinted courtesy of
Barclay Nicholson, Sheppard Mullin and
Erica Gibbons, Sheppard Mullin
Mr. Nicholson may be contacted at bnicholson@sheppardmullin.com
Ms. Gibbons may be contacted at egibbons@sheppardmullin.com
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Landowners Try to Choke Off Casino's Water With 19th-Century Lawsuit
December 17, 2015 —
Edvard Pettersson – BloombergCalifornia’s latest water war is being waged at the edge of wine country against an Indian tribe planning a massive casino expansion as a group of landowners tries to stop them with a lawsuit from 1897.
The Santa Ynez Band of Chumash Indians is spending $170 million to build out its resort, featuring a 12-story tower on a bucolic landscape where only the mountains are higher. The tribe has also snapped up 1,400 more acres to house cramped residents of its reservation.
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Edvard Pettersson, Bloomberg