Columbus Ohio Building Expert Directory

Efficient Proximate Cause Applies to Policy's Collapse Provisions

February 23, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The court applied the efficient proximate cause doctrine to find coverage under a property policy for a building's collapse. Vardanyan v. Amco Ins. Co., 2015 Cal. App. LEXIS 1181 (Cal. Ct. App. Dec. 11, 2015). The insured submitted a claim to Amco for damage to the flooring of the house and for mold. Amco's adjustor reported that the house seemed to be settling, possibly due to a water leak. A structural engineer then inspected and found multiple potential leaks in the roof, gutters in disrepair, downspouts that deposited water at the base of the walls of the house, and evidence that a faucet had been spraying the wall in one area. Water damage was noticed in these areas. Further, the kitchen was water damaged and had past termite infestation. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Who is a “Contractor” as Used in “Unlicensed Contractor”?

June 08, 2020 — Taylor Orgeron - Autry, Hall & Cook, LLP
A recent Georgia Court of Appeals case established a rule concerning the effect of an unlicensed contractor failing to disclose that he is unlicensed. In Fleetwood v. Lucas,[1] the contractor was hired by the homeowners to perform renovations on two homes. One of the projects went over budget, and the homeowners failed to pay the remaining balances on both projects. Following their failure to pay, the contractor sued the homeowners for breach of contract, and the jury delivered a verdict in his favor. The homeowners appealed on the grounds that the contractor was barred from bringing suit because the contractor did not have a license to perform the work. Generally, if a contractor does not have a residential or general contractor’s license but performs work when a license is required, the contract is unenforceable. O.C.G.A. § 43-41-17(b). However, under O.C.G.A. § 43-41-17(g), a contractor may perform repair work without a license if the contractor discloses that he does not have a license, and the work does not affect the structural integrity of the project. In this case, the contractor failed to disclose that he did not have a license. Read the court decision
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Reprinted courtesy of Taylor Orgeron, Autry, Hall & Cook, LLP
Mr. Orgeron may be contacted at orgeron@ahclaw.com

World’s Biggest Crane Gets to Work at British Nuclear Plant

October 07, 2019 — Jeremy Hodges - Bloomberg
The world’s largest crane is getting ready to hoist more than 700 of the heaviest pieces of the first new nuclear plant being built in Britain in decades. The machine, affectionately known as “Big Carl” after an executive at Belgian owner Sarens NV, is in place at Electricite de France SA’s 19.6 billion-pound ($24.1 billion) Hinkley Point C project in southwest England. It can carry as much as 5,000 tons, or the same weight as 1,600 cars, in a single lift and arrived on 280 truck loads from Belgium. It has taken about three months to build. Nuclear power makes up about a fifth of Britain’s electricity. Most of those plants are near the end of their lives and will close in the next decade. Replacing them won’t be easy—as the scale of the project shows. Earlier this year, EDF poured 9,000 cubic meters of cement, the biggest single biggest pour of concrete ever recorded in Britain. It was reinforced by 5,000 tons of steel built into a nest 4 meters high that’ll serve as the base of the first new reactor in the U.K. since 1995. Read the court decision
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Reprinted courtesy of Jeremy Hodges, Bloomberg

Fraudster Sells 24-Bedroom ‘King’s Speech’ London Mansion

May 20, 2015 — Neil Callanan – Bloomberg
Edward Davenport, jailed for fraud for his role in a fake lender, sold a 24-bedroom mansion in London’s Marylebone district that was featured in the film “The King’s Speech.” The money raised from the sale will be used to repay 13 million pounds ($20 million) from a confiscation order by Her Majesty’s Courts and Tribunals Service, the Serious Fraud Office said in a statement Wednesday. Davenport was jailed for more than seven years in October 2011 for his role in Gresham Ltd., a company that said it offered to provide commercial funding in return for advance fees, the SFO said. After securing the payments, employees would make deceptive assertions to extract further fees, the SFO said in 2011. Read the court decision
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Reprinted courtesy of Neil Callanan, Bloomberg

2019 Legislative Changes Affecting the Construction Industry

July 09, 2019 — Melinda S. Gentile & Cadian T. Baker - Peckar & Abramson, P.C.
The 2019 Florida Legislative Session recently concluded and a number of important construction-related House Bills (HB) and Senate Bills (SB) were presented during the Session. Below is a summary of those construction-related bills set to become law in 2019. Bills Becoming Law in 2019 HB 1247: Relating to Construction Bonds. This bill passed both the House and the Senate and is awaiting the Governor’s signature. Once the Governor has approved the bill it becomes effective as of October 1, 2019. This bill addresses how to properly perfect a claim against a contractor’s payment bond. (1) The Notice of Nonpayment that must be served on the contractor and the surety, must be made under oath and include the following provisions: The nature of the labor or services performed or to be performed; The materials furnished or to be furnished; The amount paid on the account; and if known, the amount owed and the amount to become due. A Notice of Nonpayment that includes the sums for retainage must specify the portion of the amount claimed for retainage. (2) A subcontractor, laborer, or material supplier (claimant) who files a fraudulent Notice of Nonpayment loses their rights under the bond. The filing of a fraudulent notice is a complete defense to claimant’s claim against the bond. A notice is fraudulent if the claimant willfully exaggerated the amount due, willfully included a claim for work not performed or materials not furnished or prepared the notice with willful and gross negligence, which resulted in willful exaggeration. However, a minor mistake in the notice, or a good faith dispute as to the amount due, is not considered fraudulent. Please note that this provision mirrors the existing statute relative to a fraudulent lien. Read the court decision
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Reprinted courtesy of Melinda S. Gentile, Peckar & Abramson, P.C.
Ms. Gentile may be contacted at mgentile@pecklaw.com

The Burden of Betterment

February 23, 2017 — Ryan M. Charlson, Esq. - Florida Construction Law News
The concept of betterment has long been used by defendants in cases involving defective design or construction to limit the damages awarded to a plaintiff.[1] The theory behind betterment is that: “if in [the] course of making repairs [an] owner adopts a more expensive design, recovery should be limited to what would have been the reasonable cost of repair according to original design.”[2] Betterment is often raised as an affirmative defense, requiring a defendant to prove that the plaintiff has received a good or service that is superior to that for which the plaintiff originally contracted. A recent South Florida case seems, at first blush, to suggest the burden of establishing the value of betterments may fall to the plaintiff, although a closer reading indicates the decision is likely to have limited applicability. In Magnum Construction Management Corp. v. The City of Miami Beach, the Third District Court of Appeal was asked to review the damages award to the City for construction defects associated with the redesign and improvement of a park.[3] The completed project contained landscaping deficiencies, along with other “minor defects” in the playground’s construction.[4] After a unilateral audit, and without providing the contractor its contractually required opportunity to cure the defects, the City “removed, redesigned, and replaced the playground in its entirety.”[5] It did so despite no recommendation by the City’s own expert to perform such work.[6] During the bench trial, the “only measure of damages provided by the City was the costs associated with the planning, permitting, and construction of a park that is fundamentally different from the one it contracted with [the contractor] to build.”[7] Read the court decision
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Reprinted courtesy of Ryan M. Charlson, Cole, Scott & Kissane, P.A.
Mr. Charlson may be contacted at ryan.charlson@csklegal.com

Superintendent’s On-Site Supervision Compensable as Labor Under Miller Act

March 13, 2023 — David Adelstein - Florida Construction Legal Updates
A recent Miller Act payment bond decision out of the District of Columbia Circuit Court of Appeals, U.S. f/u/b/o Civil Construction, LLC v. Hirani Engineering & Land Surveying, PC, 58 F.4th 1250 (D.C. Circ. 2023), dealt with the issue of whether a subcontractor’s superintendent constitutes recoverable “labor” within the meaning of the Miller Act and compensable as a cost under the Miller Act that typically views labor as on-site physical labor. The issue is that the Miller Act covers “[e]very person that has furnished labor or material in carrying out work provided for in a contract.” Civil Construction, supra, at 1253 quoting 40 U.S.C. s. 3133(b)(1). The Miller Act does not define labor. The subcontractor claimed labor includes actual superintending at the job site. The surety disagreed that a superintendent’s presence on a job site constitutes labor as the superintendent has to actually perform physical labor on the job site to constitute compensable labor under the Miller Act. The subcontractor argued its subcontract and the government’s quality control standards required detailed daily reports that verified manpower, equipment, and work performed at the job site. It further claimed its superintendent had to continuously supervise and inspect construction activities on-site: “[the] superintendent had to be on-site to account for, among other things, hours worked by crew members, usage and standby hours for each piece of equipment, materials delivered, weather throughout the day, and all work performed. These on-site responsibilities reflected the government’s quality control standards, under which the superintendent as ‘the most senior site manager at the project, is responsible for the overall construction activities at the site…includ[ing] all quality, workmanship, and production of crews and equipment.” Civil Construction, supra, at 1253-54. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Chinese Demand Rush for Australia Homes to Stay, Ausin Says

August 06, 2014 — Nichola Saminather – Bloomberg
Ausin Group (Finance) Pty, which offers property and mortgage broking in Australia to Chinese buyers, expects to sell two-thirds more homes and to double the amount of loans it arranges as demand from the mainland surges. The company forecasts A$1.5 billion ($1.4 billion) in sales of new residential properties in the year ending June 30, compared with A$900 million over the previous 12 months, Sydney-based Managing Director Joseph Zaja said in an interview yesterday. The value of mortgages the closely held company arranges through Australian banks is expected to climb to A$500 million in the 2015 calendar year, he said. Ausin is benefiting from surging demand from China, where the housing market is faltering. Chinese purchasers overtook Americans to become the biggest buyers of real estate in Australia in the 12 months through June 2013, plowing A$5.9 billion into commercial and residential property, a 42 percent increase from the previous 12 months. Read the court decision
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Reprinted courtesy of Nichola Saminather, Bloomberg
Ms. Saminather may be contacted at nsaminather1@bloomberg.net

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