Ohio School Board and Contractor Meet to Discuss Alleged Defects
July 30, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Insurance News, The Greeneview School Board will be meeting with contractor Sfaffco Construction Inc. to discuss findings in a 122-page report produced by “Mays Consulting & Evaluation Services Inc. that outlines numerous alleged construction defects in the roofing system.”
"It's really the first time we have everybody together to discuss the deficiencies," said Isaac Seevers, the Greeneview Local Schools superintendent told Insurance News.
The school board estimates that the alleged problems will take up to $3.5 million to fix.
Meanwhile, Staffco has hired their own consultant. "The report from Mays is one sided," Staffco President Jon Stafford said according to Insurance News. "We take issue with some of the findings in there."
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Quick Note: Aim to Avoid a Stay to your Miller Act Payment Bond Claim
February 23, 2017 —
David Adelstein – Florida Construction Legal UpdatesStrategy is important. This is especially true if you are trying to avoid arbitration. In a recent federal district court case, a subcontractor sued the prime contractor and the Miller Act payment bond surety. The subcontractor, however, had an arbitration provision in its subcontract with the prime contractor. The prime contractor moved to compel arbitration pursuant to the subcontract and moved to stay the subcontractor’s Miller Act payment bond claim. The last thing, and I mean the last thing, the subcontractor wanted to do was to stay its claim against the Miller Act payment bond. However, the district court compelled the subcontractor’s claim against the prime contractor to arbitration and stayed the subcontractor’s Miller Act payment bond claim pending the outcome of the arbitration. See U.S. v. International Fidelity Ins. Co., 2017 WL 495614 (S.D.Al. 2017). This is not what the subcontractor wanted.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Drafting or Negotiating A Subcontract–Questions To Consider
June 21, 2021 —
David Adelstein - Florida Construction Legal UpdatesWhen it comes to drafting and negotiating a subcontract, there are provisions that should be important to you from a risk assessment standpoint. From the subcontractor’s standpoint, below are questions you should ask, or issues you should consider, as you go through the subcontract. These are the same questions and issues that are also important to a contractor as the contractor will want to ensure these issues are included in the subcontract. By asking yourself these questions, you can check to see how the subcontract addresses these issues, and how the risk should be negotiated. Hopefully, you are working with counsel to make sure you understand what risk you are assuming and those provisions you want to try to push back on. Asking yourself these questions, or considering these questions, will help you go through the subcontract with a purpose based on the risk profile of the project and certain risk you don’t want to assume.
- Prime Contract –> Does the subcontract incorporate the prime contract? Make sure to request the prime contract since the subcontract will identify the prime contract as part of the Subcontract Documents and will require you to assume towards the contractor the same obligations the contractor is required to assume towards the owner.
- Scope of Work –> What is the scope of work? Is it clear. Make sure the scope is clear and you understand the scope.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Design Immunity of Public Entities: Sometimes Designs, Like Recipes, are Best Left Alone
October 21, 2015 —
Garret Murai – California Construction Law BlogApril 23, 1985 will live in infamy.
The Coca Cola Company, responding to diminishing sales as its “sweeter” rival Pepsi-Cola gained market share, announced that it was changing its “secret” recipe and introducing a new kind of Coke, referred to by the public simply as, “new Coke.”
The reaction was unexpected.
People around the world began hoarding “old Coke.” Protest groups, such as the Society for the Preservation of the Real Thing and Old Cola Drinkers of America, sprang up around the county. Angry letters addressed to “Chief Dodo” were sent to Coca-Cola’s chief executive officer. And even Fidel Castro, a longtime Coca-Cola drinker, joined the backlash calling “new Coke” a “sign of American capital decadence.”
By July it was over.
Coca-Cola announced that it would once again produce “old Coke,” and in a sign (I’m sure Fidel Castro would say) of American arrogance, announced that “old Coke” would be produced under the name “Coca-Cola Classic” alongside “new Coke” which would continue to be called “Coca-Cola” suggesting that “new Coke” would be the Coke of today as well as the future. By 1992, however, “new Coke” whose sales dwindled to 3% of market share was demoted to “Coke II” and by 2002 was discontinued entirely.
The moral of the story: Change the recipe at your own risk.
Castro v. City of Thousand Oaks
In the next case, Castro v. City of Thousand Oaks, Case No. B258649, California Court of Appeals for the Second District (August 31, 2015), the corollary might well be change the recipe design at your own risk.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Woodbridge II and the Nuanced Meaning of “Adverse Use” in Hostile Property Rights Cases in Colorado
November 23, 2020 —
Luke Mecklenburg - Snell & Wilmer Real Estate Litigation BlogEarlier this year, the Colorado Court of Appeals issued an opinion addressing at length “whether the requirement that the use be ‘adverse’ in the adverse possession context is coextensive with adverse use in the prescriptive easement context.” See Woodbridge Condo. Ass’n, Inc. v. Lo Viento Blanco, LLC, 2020 COA 34 (Woodbridge II), ¶ 2, cert. granted, No. 20SC292, 2020 WL 5405376 (Colo. Sept. 8, 2020). As detailed below, the Woodbridge II court concluded that the meanings of “adverse” in these two contexts are not coextensive—while “hostility” in the adverse possession context requires a claim of exclusive ownership of the property, a party claiming a prescriptive easement is only required to “show a nonpermissive or otherwise unauthorized use of property that interfered with the owner’s property interests.” Thus, the Woodbridge II court reasoned a claimants’ acknowledgement or recognition of an owner’s title alone is insufficient to defeat “adverse use” in the prescriptive easement context.
This significant ruling is at odds with a prior division’s broad statement, while considering a prescriptive easement claim, that “[i]n general, when an adverse occupier acknowledges or recognizes the title of the owner during the occupant’s claimed prescriptive period, the occupant interrupts the prescriptive use.” See Trask v. Nozisko, 134 P.3d 544, 553 (Colo. App. 2006). Perhaps for that reason, Woodbridge II is currently pending certiorari review before the Colorado Supreme Court in a case that should provide some much-needed clarity on what constitutes “adverse use” in the context of a prescriptive easement. As we await the Colorado Supreme Court’s decision, I thought it worthwhile to provide a brief analysis of the Woodbridge II court’s deep dive into the nuances of “adverse use” in this field of Colorado law.
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Luke Mecklenburg, Snell & WilmerMr. Mecklenburg may be contacted at
lmecklenburg@swlaw.com
No Coverage for Counterclaim Arising from Insured's Faulty Workmanship
August 03, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe Eighth Circuit found there was no coverage for the insured's faulty workmanship. Am. Family Mut. Ins. Co., S.I. v. Mid-American Grain Distributors, LLC, 958 F.3d 748 (8th Cir. 2020).
Mid-American contracted with Lehenbauer to design and construct a grain storage and distribution facility for Lehenbauer. Before the work was competed, Lehenbauer terminated Mid-American's services. Mid-American then sued Lehenbauer for breach of contract. Lehenbauer counterclaimed against Mid-American, alleged breach of "implied duties of workmanlike performance and fitness for a particular purpose" and negligence. Mid-American tendered the counterclaim to American Family. American Family accepted the tender under a reservation of rights, but sued Mid-American for a declaratory judgment.
The district court granted American Family's motion for summary judgment, concluding that the counterclaims did not allege an occurrence.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
More on the VCPA and Construction
February 01, 2023 —
Christopher G. Hill - Construction Law MusingsI have posted before regarding the intersection between the Virginia Consumer Protection Act (VCPA) and construction contracting in regard to residential construction projects. A case out of the Eastern District of Virginia District Court further discusses this intersection as it relates to design contracts that also include the procurement and installation of certain design elements post-design. The basic facts of Marcus v Dennis are as follows:
In October of 2018, Defendant Marlene Dennis, the owner of Marlene Dennis Design, LLC (“MDD”), operating out of Virginia, entered into a contract to provide design services and the procurement and installation of certain design elements for the Plaintiffs, Gregory and Jamie Marcus, at their Maryland home. The Marcuses agreed to $175 per hour to Dennis with a cap of a total of $100,000.00 for design consultation and furniture selection and procurement. The Marcuses also agreed that they would pay no more than $250,000.00 for furnishings, rugs, artwork, decorative lighting, and accessories. In November 2020, Dennis sent an invoice for $68,000.00 and informed the Plaintiffs that the total contract fees would be more than the $100,000.00 cap. After paying $124,722.41 in design fees, the Plaintiffs received an invoice for $255,5560.72 in January of 2021. Despite the cap of $250,000.00, the Plaintiffs wired $255,000.00 to Dennis while requesting the backup invoices for the material charges. After much effort and a threat of litigation, the Plaintiffs received documents from Dennis showing that Dennis inflated the costs of the materials prior to passing the costs along to the Marcuses. The Plaintiffs’ home was unfurnished and empty as of April 10, 2021, and the Marcuses had to hire and pay another design team over $85,000.00 to finish Dennis’ work. Needless to say, the Marcuses sued both Dennis and her firm for breach of contract, breach of fiduciary duty, and for violation of the VCPA. Dennis moved to dismiss the Complaint.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
US-Mexico Border Wall Bids Include Tourist Attraction, Solar Panels
April 05, 2017 —
Engineering News-RecordSAN DIEGO (AP) — Tuesday was the deadline for companies to propose designs for President Donald Trump's border wall with Mexico . U.S. Customs and Border Protection will ask several of the bidders to build prototypes in San Diego . The government won't identify companies until contracts are awarded around June 1 — and even then, only the winners — but some bidders released plans on their own.
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Engineering News-RecordENR may be contacted at
ENR.com@bnpmedia.com