When Is a Project Delay Material and Actionable?
January 11, 2022 —
Rick Erickson - Snell & Wilmer Real Estate Litigation BlogWelcome to 2022! This year, the construction industry will undoubtedly reflect on the last two years as unprecedented times plagued by construction project delays. The COVID-19 pandemic contributed to suspension of work and closure of construction projects worldwide in 2020. The end of 2021 brought additional delays caused by an inexplicable clog in the supply chain of construction materials. The combined impact of these events on project milestones and completion deadlines led our clients to ask, with unusual and particular urgency, who is liable for such delays and how do contracting parties lessen the consequences from such unexpected and uncontrollable delays.
Granted that project delays are nothing new or unusual. They were common enough before inflation caused shipping complications and pandemic decimated the construction labor force. All delays, whatever the source, variably cause loss to all players on a construction project. But not all delays matter when it comes to claims and remedies available to the contracting parties in dispute resolution, where the determinative focus is on material delays impacting the entire project and on delays the claimant can credibly prove.
Most, if not all, jurisdictions interpret actionable delays from the contract documents for the project. The contract is definitely where you should start before pursuing any delay remedies. Delay remedies may be a time extension only, or a time extension plus your additional general conditions. Some delay remedies may be barred by the contract’s express terms and may be enforced adversely by the courts when such contract terms are indisputable. See Quinn Constr. v. Skanska USA Bldg., Inc., 730 F. Supp. 2d 401, 411 (D.C. Pa. 2010) (enforcing the subcontractor’s contractual waiver of claims for delay and disruption damages). On the other hand, delay damages that are expressly allowed by the contract—like overtime necessitated by the delays—are usually actionable and recoverable. Id. However, not only the contract terms, but applicable law, may affect the outcome.
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Rick Erickson, Snell & WilmerMr. Erickson may be contacted at
rerickson@swlaw.com
Update: Amazon Can (Still) Be Liable in Louisiana
December 31, 2024 —
Michael Ciamaichelo - The Subrogation StrategistOn November 25, 2024, in Pickard v. Amazon.com, Inc., No. 5:20-cv-01448, 2024 U.S. Dist. LEXIS 215377, the United States District Court for the Western District of Louisiana (District Court) ruled that Amazon.com, Inc. (Amazon) could be liable for manufacturer-seller liability under the Louisiana Products Liability Act (LPLA) for a defective product sold by a third-party seller through the “Fulfillment by Amazon” program (FBA). The court also dismissed two tort claims against Amazon as follows: (i) Amazon does not qualify as a “seller” for purposes of non-manufacturer seller liability (because passing title is required for that claim); and (ii) there is insufficient evidence to prove the decedent, Archie Pickard (Pickard), relied on Amazon’s safety practices when purchasing the defective product, precluding a claim for negligent undertaking.
Background
Pickard died from injuries sustained in a house fire allegedly caused by a defective battery charger he purchased on Amazon. Jisell, a Chinese company and a third-party seller, manufactured and sold the charger. Amazon never took title to the charger but stored it in its warehouse and delivered it to Pickard through the FBA. Pickard’s children filed a wrongful death lawsuit against Amazon alleging three claims: (i) manufacturer-seller liability under the LPLA; and tort-based claims of (ii) non-manufacturer seller liability and (iii) negligent undertaking. After Amazon moved for summary judgment on all claims, the District Court certified questions to the Supreme Court of Louisiana (Supreme Court) seeking guidance as there was minimal guidance regarding the application of products claims to online marketplaces.
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Michael Ciamaichelo, White and Williams LLPMr. Ciamaichelo may be contacted at
ciamaichelom@whiteandwilliams.com
Not so Fast! How Does Revoking Acceleration of a Note Impact the Statute of Limitations?
July 30, 2018 —
Ben Reeves - Snell & Wilmer Real Estate Litigation BlogIntroduction
Lenders routinely accelerate notes after a default occurs, calling the entire loan due immediately. Less regularly, a lender may change its mind and unilaterally revoke the acceleration. Rarely, however, does a lender fail to foreclose on its real property collateral before the statute of limitations expires. In Andra R. Miller Designs, LLC v. U.S. Bank, N.A., 244 Ariz. 265, 418 P.3d 1038 (Ct. App. 2018), a unique set of facts involving these issues led the Arizona Court of Appeals to hold that proper revocation of acceleration resets the statute of limitations.
The Facts
In Miller, a lender made a $1,940,000 loan evidenced by a promissory note and secured by a deed of trust against a home in Paradise Valley, Arizona. The borrower defaulted in September 2008. The default prompted the lender to notice a default, accelerate the note, and initiate a trustee’s sale of the home in 2009. After the lender accelerated the note, the six year statute of limitations began to run. See A.R.S. § 12-548(A)(1) and A.R.S. § 33-816. Pretty standard facts so far, right? Don’t worry, it gets a bit more convoluted.
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Ben Reeves, Snell & WilmerMr. Reeves may be contacted at
breeves@swlaw.com
Fourteen Years as a Solo!
July 08, 2024 —
Christopher G. Hill - Construction Law MusingsI have always found it appropriate that my jump to solo practice and Independence Day are so close in time. Today marks 14 years since
my first day as a solo practitioner of construction law at The Law Office of Christopher G. Hill, PC. Time sure has flown by thanks to the great clients and friends who followed me to solo practice and whom I have met since the firm’s founding on July 1, 2010. I also could not have made the transition and had the fun and success I have enjoyed over the past 14 years without the support of the best wife and family that any construction lawyer could want.
Since the firm’s last anniversary, my youngest child (who was 7 when this journey began!) started and completed her junior year at N. C. State University and is currently in Idaho working as an intern for Idaho Fish & Game, my second oldest is an assistant director of admissions at Appalachian State University in Boone, NC, and is newly married, and my oldest has bought a home, adopted an adorable golden retriever puppy, and celebrated her third marriage anniversary. Our home in Captiva, Florida has also continued its recovery from Hurricane Ian.
Professionally, I’ve had a great year. I am serving as the Vice Chair of the
Section Council of the Virginia Bar Association Construction and Public Contracts Law section. I was also honored to be nominated and elected to the
Virginia Legal Elite in Construction Law for the 17th straight year and to the
Virginia Super Lawyers in Construction Litigation for the 8th year running. I also continued to have the opportunity to teach in various construction-related venues on relevant topics and to help out some of the best clients around. I have also continued to grow my
ADR practice, including
arbitration and
mediation.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
An Occurrence Under Builder’s Risk Insurance Policy Is Based on the Language in the Policy
April 03, 2023 —
David Adelstein - Florida Construction Legal UpdatesBuilder’s risk insurance coverage is a vital property insurance coverage during the course of construction. Builder’s risk insurance is not a one-size-fits-all product so please make sure you are working with your insurance broker to procure this product that factors in and covers risk associated with the project.
Builder’s risk insurance is typically an occurrence-based policy. No different than other occurrence-based policies (such as commercial general liability), a dispute may arise as to the occurrence. This could be due to the triggering of the actual policy during the coverage period or it could be due deductible obligations, as in the case discussed below. When dealing with a builder’s risk insurance policy–again, no different than any policy–the language in the policy matters. Definitions used in the policy to define specific terms matter and, in numerous cases, the ordinary dictionary meanings of terms matter. But it all starts with the policy language.
In KT State & Lemon, LLP v. Westchester Fire Insurance Co., 2023 WL 2456499 (M.D.Fla. 2023), a builder’s risk policy provided coverage from April 2018 through the end of November 2019. There was a $50,000 per occurrence deductible for loss caused by or from water damage. An extension to the builder’s risk policy was negotiated through the end of January 2020 that increased this water damage deductible to $250,000 per occurrence. During construction and the testing of the fire suppression (sprinkler) system, leaks started to occur resulting in water damage. Two leaks occurred in September 2019, one leak in October 2019, one leak in November 2019, and two leaks in December 2019 (during the extension and higher water damage deductible period).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Real Estate & Construction News Roundup (09/06/23) – Nonprofit Helping Marginalized Groups, Life Sciences Taking over Office Space, and Housing Affordability Hits New Low
October 24, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, Walmart adds their own generative AI, major airlines reduce their capacity at regional airports, autoworkers prepare for a strike as negotiations continue, and more!
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Pillsbury's Construction & Real Estate Law Team
Watch Your Step – Playing Golf on an Outdoor Course Necessarily Encompasses Risk of Encountering Irregularities in the Ground Surface
May 08, 2023 —
Kaitlyn A. Jensen & Lawrence S. Zucker II - Haight Brown & Bonesteel LLPOn April 27, 2023, the First District Court of Appeal issued an opinion in Walter Wellsfry, et al. v. Ocean Colony Partners, LLC (A165175, April 27, 2023) affirming summary judgment for a golf course owner on the grounds that the injured golfer’s lawsuit was barred by the primary assumption of risk doctrine. In doing so, the Court of Appeal found that outdoor golfers assume the risks associated with the topographical features of the course, including the risk of stepping on an inconspicuous tree root.
Recreational golfer Walter Wellsfry was walking from a tee box back to his golf cart when he allegedly stepped on a small tree root concealed by grass, causing him to fall into his golf cart in immediate pain. The ground consisted of mixed terrain, including a combination of grass, dirt, and sand. The tree root was estimated to be approximately 1.5 inches high by 1.5 inches wide. Believing he may have only sprained an ankle, Wellsfry continued the course and reported the incident to management. He later sued the golf course owner Ocean Colony Partners for negligence, claiming that the tree root was a “hidden obstruction” creating an unreasonable risk of harm to anyone who traversed the area.
Reprinted courtesy of
Kaitlyn A. Jensen, Haight Brown & Bonesteel LLP and
Lawrence S. Zucker II, Haight Brown & Bonesteel LLP
Mr. Jensen may be contacted at kjensen@hbblaw.com
Mr. Zucker may be contacted at lzucker@hbblaw.com
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Property Insurance Exclusion: Leakage of Water Over 14 Days or More
July 10, 2018 —
David Adelstein - Florida Construction Legal UpdatesThe recent opinion of Whitley v. American Integrity Ins. Co. of Florida, 43 Fla.L.Weekly D1503a (Fla. 5th DCA 2018), as a follow-up to this article on the property insurance exclusion regarding the “constant or repeated seepage or leakage of water…over a period of 14 or more days,” is a beneficial opinion to insureds.
In this case, the insured had a vacation home. A plumbing leak occurred that caused water damage to the home. The plumbing leak occurred during a period of time that lasted approximately 30 days. For this reason, the property insurer denied the claim per the exclusion that the policy does not cover loss caused by repeated leakage of water over a period of 14 or more days from a plumbing system. Summary judgment was granted by the trial court in favor of the insurer based on this exclusion.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
