Roof's "Cosmetic" Damage From Hail Storm Covered
August 19, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe Seventh Circuit affirmed the district court's determination that cosmetic damage to the insured's roof was covered. Advance Cable Co., LLC v. Cincinnati Ins. Co., 2015 U.S. App. LEXIS 9805 (7th Cir. June 11, 2015).
The insured submitted a claim to its insurer, Cincinnati, for damage to the metal roof of its building caused by a hail storm. The insured inspected the roof with a claims representative for Cincinnati. Dents were spotted, but there was little other evidence of damage. The loss was estimated at $1,894.74. A check for this amount was sent to the insured.
Six months later, the insured considered selling the building. A potential buyer inspected the roof and found hail damage. At the request of the insured, Cincinnati conducted another inspection of the roof. Again, dents of approximately 1 inch in diameter were found. The inspector noted that the denting would not affect the performance of the roof panels or detract from their life expectancy.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
United States Supreme Court Limits Class Arbitration
May 13, 2019 —
Jeffrey K. Brown & Raymond J. Nhan - Payne & FearsOn April 24, 2019, the United States Supreme Court held that the Federal Arbitration Act ("FAA") bars orders requiring class arbitration when an agreement is ambiguous about the availability of such a procedure. Lamps Plus v. Varela, 587 U.S. __ , 2019 WL 1780275, (2019). In Lamps Plus, the Court clarified a 2010 case in which it held that a court may not compel arbitration on a class-wide basis when an agreement is silent on the availability of class arbitration. Stolt-Nielsen S.A. v. Animal Feeds Int'l Corp., 559 U.S. 662, 687 (2012).
In Lamps Plus, a 5-4 decision authored by Chief Justice Roberts, the Court explained that because the FAA envisions the use of traditional individualized arbitration, a party cannot be forced under the FAA to submit to class arbitration unless the parties explicitly agreed to do so. Because class arbitration does not share the benefits of traditional arbitration -- lower costs, greater efficiency and speed, and the parties' choice of a neutral -- the FAA requires more than an "ambiguous" agreement to show that the parties bound themselves to arbitrate on a class-wide basis. Unlike individualized arbitration, or even traditional class actions, class arbitration raises serious due process concerns because absent class members will have limited judicial review. Based on these critical differences between individual and class arbitration, the Court reiterated in Lamps Plus that "courts may not infer consent to participate in class arbitration absent an affirmative contractual basis for concluding that the party agreed to do so."
Reprinted courtesy of
Jeffrey K. Brown, Payne & Fears and
Raymond J. Nhan, Payne & Fears
Mr. Brown may be contacted at jkb@paynefears.com
Mr. Nhan may be contacted at rjn@paynefears.com
Read the court decisionRead the full story...Reprinted courtesy of
Seattle’s Newest Residential Developer
March 13, 2023 —
Michael J. Yelle - Ahlers Cressman & SleightOn February 14, 2023, Seattle voters passed Initiative 135, creating the “Seattle Social Housing Developer” (“Public Developer” or “PD”) and the initiative was signed into law by Mayor Bruce Harrel on March 1, 2023.
[1] With this initiative, voters created Seattle’s newest housing developer. The PD aims to develop, own, and maintain housing in the City of Seattle.
[2] In addition, the PD also intends to retrofit acquired properties to increase energy efficiency and bring them into compliance with accessibility standards.
[3] Contractors, subcontractors, and suppliers may see this as an opportunity to compete for and build everything from new multi-unit housing to handrail installation projects. This post will explore some of the basics of contracting with a public corporation like the Public Developer and what contractors may want to consider in their business planning.
What is the PD?
The Public Developer is a political subdivision of the State of Washington, like a port or fire district.
[4] The Public Developer is not an agency or department of the City of Seattle. In this way, it is like Seattle Public Schools (SPS) because both SPS and the PD operate within the City of Seattle, but have (or will have) their own staff, procurement rules, and standard contracts distinct from the City’s. Like SPS, the PD can also enter construction and supply contracts, sue, and be sued.
Read the court decisionRead the full story...Reprinted courtesy of
Michael J. Yelle, Ahlers Cressman & Sleight
Nomos LLP Partner Garret Murai Recognized by Super Lawyers
August 03, 2022 —
Garret Murai - California Construction Law BlogNomos LLP Partner Garret Murai has been recognized as a 2022 Northern California Super Lawyers honoree in the area of Construction Litigation. This is the ninth consecutive year that he has been recognized by Super Lawyers.
Super Lawyers, an annual listing of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and personal achievement, is limited to no more than five percent (5%) of lawyers in a state who are selected through a multiphase process that includes a statewide survey of lawyers, independent research evaluation and peer reviews by practice area.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Don’t Ignore the Dispute Resolution Provisions in Your Construction Contract
June 05, 2023 —
David Adelstein - Florida Construction Legal UpdatesDon’t ignore dispute resolution provisions in a construction contract. Sometimes, you may want to. But dispute resolution provisions should be one of the first provisions you look to when a dispute arises recognizing these provisions will be raised if you fail to comply. Not only will they be raised, but the presumption is they will be enforced. This is the situation that was raised in Seminole County, Florida v. APM Construction Corp., 2023 WL 3555356 (Fla. 5th DCA 2023).
Here, a contractor was terminated for cause by Seminole County. The contractor then filed suit against the County. The County moved to dismiss the lawsuit because the contractor failed to comply with contractual presuit administrative procedures in the contract prior to filing a lawsuit. While the trial court denied the County’s motion to dismiss, the appellate court granted the County’s petition for writ of certiorari quashing the trial court’s order denying the motion to dismiss. For purposes of granting the writ of certiorari, the appellate court held irreparable harm existed because “certiorari jurisdiction is properly exercised when a trial court permits a party to litigate when there is a contractual or legal obligation to first administrative proceed.” Seminole County, supra, at *2.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Construction Is Holding Back the Economy
February 28, 2018 —
Noah Smith - BloombergChanges in contracts and rules could make the sector a lot more efficient.
The question of whether to
prioritize jobs or economic efficiency is always difficult. Nowhere is this more of a dilemma than in the construction industry.
In a world of rapid technological disruption, construction is a rock of solidity to which many blue-collar workers can cling. The industry still employs about 7 million workers in the U.S.
The job doesn’t change that much from decade to decade. It’s a big broad occupation, unlike social-media marketing or other new niche jobs, so it allows working-class people to minimize the time and effort they spend building for a career. And workers get trained on the job, without years of college.
What’s more, construction workers are
mostly male. To the degree this is a result of sexism, that’s bad. But it also means that the construction industry employs lots of men, at a time when they haven’t been doing so well in the jobs department.
Read the court decisionRead the full story...Reprinted courtesy of
Noah Smith, Bloomberg
Dangerous Condition, Dangerous Precedent: California Supreme Court Expands Scope of Dangerous Condition Liability Involving Third Party Negligent/Criminal Conduct
August 19, 2015 —
R. Bryan Martin, Laura C. Williams, & Lawrence S. Zucker II – Haight Brown & Bonesteel LLPIn Cordova v. City of Los Angeles (filed 8/13/15, Case No. S208130), the California Supreme Court held a government entity is not categorically immune from liability where the plaintiff alleges a dangerous condition of public property caused the plaintiff’s injury, but did not cause the third party conduct which precipitated the accident.
The case arises out of a traffic collision by which the negligent driving of a third party motorist caused another car to careen into a tree planted in the center median owned and maintained by the City of Los Angeles (“City”). Of the four occupants in the car that collided with the tree, three died and the fourth was badly injured. The parents of two of the occupants sued the City for a dangerous condition of public property under Government Code Section 835. The plaintiffs alleged the roadway was in a dangerous condition because the trees in the median were too close to the traveling portion of the road, posing an unreasonable risk of harm to motorists who might lose control of their vehicles.
The City successfully moved for summary judgment, which plaintiffs appealed. On review, the Court of Appeal affirmed holding the tree was not a dangerous condition as a matter of law because there was no evidence that the tree had contributed to the criminally negligent driving of the third party motorist.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
R. Bryan Martin,
Laura C. Williams and
Lawrence S. Zucker II
Mr. Martin may be contacted at bmartin@hbblaw.com
Ms. Williams may be contacted at lwilliams@hbblaw.com
And Mr. Zucker may be contacted at lzucker@hbblaw.com
Read the court decisionRead the full story...Reprinted courtesy of
Performing Work with a Suspended CSLB License Costs Big: Subcontractor Faces $18,000,000 Disgorgement
September 17, 2015 —
Steven M. Cvitanovic & David A. Harris – Haight Brown & Bonesteel LLPIn what could lead to a draconian result, the Court of Appeal for the First Appellate District held that a contractor who performs work without a valid license can be required to disgorge all payments received, even if the contractor perfectly performed its work. The case, Judicial Council of California v. Jacobs Facilities, Inc. (Ct. of Appeal, 1st App. Dis., Div. One, A140890, A141393), involved an $18,000,000 contract between Jacobs Facilities, Inc. (“Jacobs Facilities”) and the Judicial Council of California (“Judicial Council”). In April 2006, Jacobs Facilities, a wholly owned subsidiary of Jacobs Engineering Group, Inc. (“Jacobs Engineering”) entered into a three year contract with the Judicial Counsel to maintain 121 courthouses and other judicial branch buildings throughout Southern California (the “Contract”). Jacobs Facilities contracted to provide maintenance and oversight services, while retaining subcontractors to perform the actual maintenance and repair work.
In December 2006, as part of a corporate reorganization, Jacobs Engineering started winding up Jacobs Facilities and transferred its employees to Jacobs Engineering and then subsequently to another wholly owned subsidiary called Jacobs Project Management Co. (“Jacobs Management”). The work that was performed by Jacobs Facilities was taken over by Jacobs Management. As part of the windup, Jacobs Facilities’ Contractor’s State License Board license was allowed to lapse and the license expired by operation of law in November 2008. Although Jacobs Management was now performing the work, it was not added as a party to the contract. Although it appears Judicial Council was aware of the corporate changes, it was not until November 2009 that the parties assigned the contract to Jacobs Management.
Reprinted courtesy of
Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and
David A. Harris, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com
Mr. Harris may be contacted at dharris@hbblaw.com
Read the court decisionRead the full story...Reprinted courtesy of