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DIRECTORY AND CAPABILITIES

Mid-Session Overview of Colorado’s 2017 Construction Defect Legislation

March 16, 2017 — David McClain - Colorado Construction Litigation
As the 2017 Colorado legislative session reaches the halfway point, I thought it an opportune time to provide a quick overview of the construction defect bills introduced so far this session. Senate Bill 17-045, “Concerning a Requirement for Equitable Allocation of the Costs of Defending a Construction Defect Claim,” sponsored by Senators Grantham and Angela Williams and Representatives Duran and Wist, was introduced on January 11th and assigned to the Senate Business, Labor, and Technology Committee. This bill affects construction defect actions in which more than one insurer has a duty to defend a party by providing that if the carriers cannot agree regarding how to allocate defense costs within 45 days of the filing of a contribution action, a court must conduct a hearing regarding the apportionment of the costs of defense, including reasonable attorneys’ fees, among all carriers sharing in the duty to defend within 60 days after an insurer files its claim for contribution, unless the carriers agree to resolve the issue through a mutually agreeable, alternative process. The bill further provides that the court must make a final apportionment of costs after entry of a final judgment resolving all of the underlying claims against the insured. The bill also makes clear that an insurer seeking contribution may also make a claim against an insured or additional insured who chose not to procure liability insurance during any period of time relevant to the underlying action. Finally, the bill states that a claim for contribution may be assigned and that bringing such a claim does not affect any insurer’s duty to defend. The Senate Business, Labor, and Technology Committee heard SB 17-045 on February 8th and referred the bill, as amended, to the Senate Appropriations Committee. Read the court decision
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Reprinted courtesy of David M. McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

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Client Alert: Restaurant Owed Duty of Care to Driver Killed by Third-Party on Street Adjacent to Restaurant Parking Lot

January 07, 2015 — R. Bryan Martin, Lawrence S. Zucker II, & Kristian B. Moriarty – Haight, Brown, & Bonesteel, LLP
In Annocki v. Peterson Enterprise, LLC, (Filed 11/14/2014, Certified for Publication 12/5/2014, No. B251434) the Court of Appeal, Second District, held a restaurant owed a duty of care to the driver of a motorcycle who died as a result of the negligent driving of a third party exiting the restaurant’s parking lot. Decedent, Joseph M. Annocki, was driving his motorcycle on Pacific Coast Highway in Malibu, when it collided with the vehicle operated by Terry Allen Turner, who was exiting the parking lot of “Geoffrey’s" restaurant, which was owned and operated by the Defendant, Peterson Enterprise, LLC (“Peterson”). The parents of the decedent (“Plaintiffs”) filed suit against Peterson, alleging Peterson failed to adequately staff the restaurant parking lot, which caused Turner to become confused and make an illegal left turn onto Pacific Coast Highway, thereby causing the accident that killed decedent. Plaintiffs further alleged Peterson knew, or should have known, that its parking lot and driveway were designed and in such condition as to create a danger of decreased visibility of the adjacent highway, and failed to adequately provide signage directing patrons that only right turns could be made onto Pacific Coast Highway. Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys R. Bryan Martin, Lawrence S. Zucker II and Kristian B. Moriarty Mr. Martin may be contacted at bmartin@hbblaw.com Mr. Zucker may be contacted at lzucker@hbblaw.com Mr. Moriarty may be contacted at kmoriarty@hbblaw.com Read the court decision
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Changes to Pennsylvania Mechanic’s Lien Code

July 13, 2017 — Christopher G. Hill - Construction Law Musings
For this week’s Guest Post Friday here at Musings, we welcome Jim Fullerton. Jim is the President of the law firm of Fullerton & Knowles, P.C., which has attorneys licensed in Virginia, Maryland, Pennsylvania, and the District of Columbia, is a Martindale Hubbell Peer Rated Lawyer AV® Preeminent.™ The firm represents owners, lenders, design professionals, suppliers, subcontractors, general contractors and other members of the real estate and construction industries, filing mechanic’s liens, surety bond and other construction claims across all of the states in the Mid Atlantic region. He also represents creditors in bankruptcy issues nationwide, particularly defense of bankruptcy preference claims; advises owners and lenders in real estate lending and acquisition transactions; on all real estate and construction law issues; contract formation and disputes. The firm’s Construction Law Survival Manual is well known and widely used by participants in the construction process. The 550 page manual provides valuable information about construction contract litigation, mechanic’s liens, payment bond claims, bankruptcy and credit management and contains over 30 commonly used contract forms. All of this information and recent construction law issues are constantly updated on the firm’s website. There are two changes to the Pennsylvania Mechanic’s Lien Code that became effective September 2014. First, residential properties built by an owner for their own residence will now have a defense of payment to subcontractor mechanic’s liens. This protects homeowners from mechanic’s liens if they have paid their general contractors in full. Second, construction loan open end mortgages will have priority over mechanic’s liens, as long as at least sixty per cent (60%) of the loan proceeds are used for construction costs. This change was pushed by Pennsylvania lenders in response to a recent court case. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Nebraska’s Prompt Pay Act for 2015

January 21, 2015 — Craig Martin – Construction Contractor Advisor
Continuing with our theme of Ready for 2015, this blog serves as a reminder of your rights and obligations under Nebraska’s Prompt Pay Act, Neb. Rev. Stat. §§ 45-1201-1211. As you may recall, Nebraska’s legislature amended the Prompt Pay Act in 2014. The most significant changes are highlighted below. Attorney’s Fees May be Recovered. The most significant change in the Prompt Pay Act allows contractors to recover damages if they pursue a claim under the Act. And, this is not reciprocal in that the defendant may not recover fees. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

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DC Circuit Issues Two Important Clean Air Act and Administrative Law Decisions

December 16, 2019 — Anthony B. Cavender - Gravel2Gavel
The U.S. Court of Appeals or the District of Columbia has recently issued two important rulings on the Clean Air Act in particular and administrative law in general: California Communities Against Toxics, et al., v. EPA and Murray Energy Corporation v. EPA. The Battle of the Memos: Seitz Makes Way for Wehrum In the California Communities case, decided on August 20, 2019, the court held, in a 2 to 1 decision, that a petition to review a change in EPA policy announced in an agency memorandum which reversed an agency policy announced nearly 25 years ago in another agency memo must be rejected because the memo at issue was not a “final agency action” subject to the Administrative Procedure Act (APA). In 1995, the “Seitz Memo,” which interpreted Section 112 of the Clean Air Act and addresses the regulation and control of hazardous air pollutants from stationary sources, stated that once a source of toxic emissions is classified as “major,” the facility remains subject to regulation as a major source even if the facility makes changes to the facility to limit its potential to emit such toxics below the major source threshold. Then, in 2018 under a new administration, the “Wehrum Memorandum” was issued which reversed this policy and its interpretation of the law. (Both memos were issued without any kind of advance notice or opportunity to comment.) If a source takes steps to limit its potential to emit, then it may be regulated as an area source, and subject to less rigid regulation. The court majority held that the Wehrum Memo was not a final agency action and was not subject to judicial review when it was measured against both prongs of the “finality test” devised by the Supreme Court in the cases of Bennet v. Spear, 520 US 154 (1997) and US Army Corps of Engineers v. Hawkes, 136 S. Ct. 1807 (2016). While the memo undoubtedly represented the consummation of the agency’s decision-making process, the memo had no direct and appreciable legal consequences, and not therefore being a final action, the case must be dismissed. Judge Rogers filed a strong dissenting opinion. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

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Partner Jonathan R. Harwood Obtained Summary Judgment in a Coverage Action Arising out of a Claim for Personal Injury

December 22, 2019 — Jonathan R. Harwood - Traub Lieberman Perspectives
On August 16, 2019, Traub Lieberman partner obtained summary judgment in a declaratory judgment action involving a claim for coverage for a personal injury action involving injuries suffered on a construction site. The plaintiff in the underlying action was performing excavation in a basement of a building in Manhattan so the owner could install a pool. During the course of the excavation plaintiff fell 13 feet from a plank, into the excavated pit, suffering serious injuries. Traub Lieberman’s client issued a CGL policy to the building owner and the insured sought coverage for the suit under that policy. The insurer denied coverage based on an endorsement to the policy that stated the insured could only contract directly with a specified general contractor. The plaintiff was an employee of a subcontractor and the insurer believed the insured had contracted directly with that unapproved subcontractor. The insured denied it had done, contending the subcontractor had been hired by the general contractor identified in the endorsement. Reprinted courtesy of Jonathan R. Harwood, Traub Lieberman Mr. Harwood may be contacted at jharwood@tlsslaw.com Read the full story... Read the court decision
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Ornate Las Vegas Palace Rented by Michael Jackson for Sale

August 13, 2014 — Emily Heffter – Bloomberg
A unique and ornate palace for sale in Las Vegas was home to Michael Jackson in the strange and isolated years before his death. In fact, the King of Pop was the last tenant in the 24,000-square-foot estate, and his portrait still hangs above the fireplace. Jackson eschewed the main house and lived in the guest villa while he was rehearsing for his Las Vegas show, The One, from 2007-2009, according to listing agent Eddy Martinez of Miami Beach-based Worldwide Properties. To avoid the paparazzi, Jackson traveled through a tunnel under the main house and got directly into a car parked at the end of it, Martinez said. The Hacienda Palomino has only had two owners since theater developer Horst Schmidt built it in 1952. The home at 2710 Palomino Ln is "enchanting," said Martinez, and the property's unique features — including a musical note insignia used as an architectural feature — intrigued the late superstar. Read the court decision
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Reprinted courtesy of Emily Heffter, Bloomberg

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Bad Faith Jury Verdict Upheld After Insurer's Failure to Settle Within Policy Limits

June 30, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The Eighth Circuit affirmed the jury verdict which determined that the insurer acted in bad faith for failing to settle within policy limits. Bamford, Inc. v. Regent Ins. Co., 2016 U.S. App. LEXIS 8787 (8th Cir. May 13, 2016). 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

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