Common Law Indemnification - A Primer
April 12, 2021 —
Brian F. Mark - Hurwitz & Fine, P.C.“Common law indemnification is generally available ‘in favor of one who is held responsible solely by operation of law because of his relationship to the wrongdoer.’” McCarthy v. Turner Constr., Inc., 17 N.Y.3d 369, 375 (2011), quoting Mas v. Two Bridges Assocs., 75 N.Y.2d 680, 690 (1990).
What is Common Law Indemnification and Who Can Assert it?
Indemnification, in general terms, is the right of one party to shift a loss to another and may be based upon an express contract or an implied obligation. Bellevue S. Assoc. v. HRH Constr. Corp., 78 N.Y.2d 282 (1991). Based on a separate duty owed the indemnitee by the indemnitor, common law indemnification, or implied indemnification, permits one who was compelled to pay for the wrong of another to recover from the wrongdoer the damages paid to the injured party. D’Ambrosio v. City of New York, 55 N.Y.2d 454, 460 (1982); Curreri v. Heritage Prop. Inv. Trust, Inc., 48 A.D.3d 505, 507 (2d Dept. 2008).
The premise of common law indemnification is vicarious liability, defined as “liability that a supervisory party (such as an employer) bears for the actionable conduct of a subordinate or associate (such as an employee) based on the relationship between the two parties” Black’s Law Dictionary (11th ed. 2019). Common law indemnification “reflects an inherent fairness as to which party should be held liable for indemnity.” McCarthy, 17 N.Y.3d at 375. It is a restitution concept which permits shifting the loss because, to fail to do so, would result in the unjust enrichment of one party at the expense of the other. Mas, 75 N.Y.2d at 680, 690; Kingsbrook Jewish Medical Center v. Islam, 172 A.D.3d 1342, 1343 (2d Dept. 2019).
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Brian F. Mark, Hurwitz & Fine, P.C.Mr. Mark may be contacted at
bfm@hurwitzfine.com
The “Builder’s Remedy” Looms Over Bay Area Cities
February 20, 2023 —
Allan C. Van Vliet, Cara M. MacDonald, Robert G. Howard & Robert C. Herr - Gravel2Gavel Construction & Real Estate Law BlogCities in the San Francisco Bay Area are frantically working to finalize their state-mandated “housing elements” in their General Plans by the January 31, 2023, deadline imposed by the California Department of Housing and Community Development (HCD). For Bay Area cities like San Francisco, Oakland, San Jose and Berkeley, the plans must be approved by HCD
on or before January 31, 2023. California municipalities have extra incentive to get their housing elements approved this year, because the failure to meet the deadline may subject them to a remedy known as
the “builder’s remedy.”
The failure of cities in California to adopt and implement adequate housing elements as part of their General Plans has contributed to the state’s serious housing affordability crisis. The “builder’s remedy” incentivizes cities to meet housing element deadlines, because failure to do so could cause cities to lose control over certain land use entitlement decisions for projects that include housing under the state’s Housing Accountability Act (HAA).
Reprinted courtesy of
Allan C. Van Vliet, Pillsbury,
Cara M. MacDonald, Pillsbury,
Robert G. Howard, Pillsbury and
Robert C. Herr, Pillsbury
Mr. Van Vliet may be contacted at allan.vanvliet@pillsburylaw.com
Ms. MacDonald may be contacted at cara.macdonald@pillsburylaw.com
Mr. Howard may be contacted at robert.howard@pillsburylaw.com
Mr. Herr may be contacted at robert.herr@pillsburylaw.com
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Quick Note: October 1, 2023 Changes to Florida’s Construction Statutes
November 13, 2023 —
David Adelstein - Florida Construction Legal UpdatesEffective October 1, 2023, there were changes to Florida’s statutory scheme dealing with construction projects. This includes Florida’s Lien Law. A copy of these changes can be found below which identify additions in blue and deletions with strikethroughs. No different than before, if you have questions or concerns as to your statutory rights on a construction project, do the prudent thing, consult a construction lawyer. A construction lawyer can help you understand changes to the applicable statutory scheme or how the statutory scheme pertains to your rights. This is important because you want to make sure you understand statutory changes that apply to your work and rights.
A noteworthy change, bolded in blue below, is that there is now a basis to lien for a contractor performing construction management services “which include scheduling and coordinating construction and preconstruction phases for the construction project, or who provides program management services”:
Fla. Stat. s. 713.01 (8) “Contractor” means a person other than a materialman or laborer who enters into a contract with the owner of real property for improving it, or who takes over from a contractor as so defined the entire remaining work under such contract. The term “contractor” includes an architect, landscape architect, or engineer who improves real property pursuant to a design- build contract authorized by s. 489.103(16). The term also includes a licensed general contractor or building contractor, as those terms are defined in s. 489.105(3)(a) and (b), respectively, who provides construction management services, which include scheduling and coordinating preconstruction and construction phases for the construction project, or who provides program management services, which include schedule control, cost control, and coordinating the provision or procurement of planning, design, and construction for the construction project.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Hawaii State Senate Requires CGL Carriers to Submit Premium Information To State Legislature
March 20, 2011 —
CDJ STAFFIn light of the decision in Hawaii’s Intermediate Court of Appeals in Group Builders, Inc.,v. Admiral Insurance Company, 231 P.3d 67(2010), Hawaii’s state senate is requesting that "every domestic and foreign insurance company that has ever issued commercial general liability policies in the State is requested to submit information to the Legislature on the total premiums received for their commercial general liability policies during the past ten years"
Read Full Text of Hawaii State Senate Resolution
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Governor Inslee’s Recent Vaccination Mandate Applies to Many Construction Contractors and their Workers
September 13, 2021 —
Brett M. Hill - Ahlers Cressman & Sleight PLLCThis month Governor Jay Inslee enacted COVID vaccination requirements that apply to certain construction contractors and their workers in Washington state. Inslee’s vaccine proclamation becomes effective October 18, 2021 and requires construction contractors, subcontractors, and their workers to be fully vaccinated to perform work onsite on certain covered projects.
The following are types of covered projects where the vaccine mandate applies:
- State agencies: All contractors working at projects for Washington state agencies (including WSDOT, DES, DNR, etc.) if the work is required to be performed in person and onsite, regardless of the frequency or whether other workers are present. The vaccine mandate applies to indoor and outdoor settings and there is no exemption even if social distancing requirements can be met.
- Education/Higher Education/Child Care: All contractors performing work onsite for K-12, higher education (community colleges, technical colleges, and 4-year universities), child care and other facilities where students or persons receiving services are present. New and unoccupied projects are exempt but it does apply to public and private projects.
- Medical facilities: All contractors performing work at a “healthcare setting” where patients receiving care are present. “Healthcare setting” is defined as any public or private setting that is primarily used for the delivery of in-person health care services to people. “Healthcare setting” includes portions of a multi-use facility, but only the areas that are primarily used for the delivery of health care, such as a pharmacy within a grocery store. Additional information is on the state’s Q&A page.
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Brett M. Hill, Ahlers Cressman & Sleight PLLCMr. Hill may be contacted at
brett.hill@acslawyers.com
The Miller Act: More Complex than You Think
October 07, 2016 —
Beverley BevenFlorez-CDJ STAFFKeith Bremer, senior partner of Bremer Whyte Brown & O’Meara LLP, has a feature article in the Fall 2016 issue of Construction Claims Magazine, and discusses how the Miller Act has been slowly changing: “This is a complex piece of legislation that is evolving and has been decided differently depending on the federal district a case is heard in,” Bremer wrote.
Bremer explained how the courts continue to rule differently in regards to the Miller Act. “Currently it seems jurisdictions are split on the issue of whether or not subcontractors should be allowed to bring both a federal and state cause of action stemming from payment by a Miller Act bond. Therefore, any surety writing these bonds should pay strict attention to how broad or narrow the federal district that would hear the claim has interpreted the scope of a subcontractor’s remedies for Miller Act claims.”
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Consider the Risks Associated with an Exculpatory Clause
November 24, 2019 —
David Adelstein - Florida Construction Legal UpdatesAn exculpatory clause in a contract is a clause aimed at relieving another party from certain liability. A disclaimer and insulation from liability. Obviously, if you are the party relieving the other party from liability, you want to consider this risk including the potential enforceability of this risk if something goes wrong. If you are the party asking for the insulation from liability, you do not want to create an exculpatory provision that disclaims and insulates you of all liability arising from the contract as it may create an illusory effect – that the agreement is nothing but a naked promise on your end because your promise is fully disclaimed and you are insulated from liability if you break your promise. This could result in an unenforceable contract.
The validity of such an exculpatory clause was at-issue in Pier 1 Cruise Experts v. Revelex Corp., 2019 WL 3024618 (11thCir. 2019). Although not a construction dispute, the exculpatory clause in this case was with two fairly sophisticated parties and expressly insulated one of the contracting parties from “any…damages regardless of kind or type…whether in contract, tort (including negligence), or otherwise.” Pier 1 Cruise Experts, 2019 WL at *7. This is a powerful exculpatory clause because it could be broadly construed to insulate that party from its own breaches of the contract.
In Florida:
[A]n exculpatory clause is enforceable so long as (1) the contracting parties have equal bargaining power and (2) the clause’s provisions are clear and unambiguous. With respect to the latter requirement, ‘the intention to be relieved from liability [must be] made clear and unequivocal and the wording must be so clear and understandable that an ordinary and knowledgeable person will know what he is contracting away.” In the same vein, exculpatory clauses are ‘strictly construed against the party seeking to be relieved of liability.’
Pier 1 Cruise Experts, 2019 WL at *7 (internal citations omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Buildings Don't Have To Be Bird-Killers
February 07, 2022 —
Alexandra Lange - BloombergThe narrow stretch that separates Quay Tower from a thatch of bamboo and oaks in Brooklyn Bridge Park doesn’t look like much, especially in winter. Unless you’re a bird.
To a bird, the copper-colored building’s glass is a mirror, reflecting the thick grove of trees and suggesting that the wilderness continues across the road. To a bird, that can be a deadly mistake.
“You see that reflection? To a bird that looks like a tree, that is a tree, and they will go right for the tree,” says Catherine Quayle, social media director at the Wild Bird Fund.
The surprising uptake of birding as a pandemic hobby, along with social media and data collection tools like eBird and dBird, has created new visibility for bird collisions with glass, which kill as many as 1 billion birds in the U.S. per year. At the same time, a new generation of urban parks has given birds more places to roost in highly populated areas. But something else has followed these parks as well: real estate capital. The vogue for urban parks creates more economic impetus to build shiny buildings with big windows opposite those urban wetlands, glades and groves.
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Alexandra Lange, Bloomberg