Safe Harbors- not just for Sailors anymore (or, why advance planning can prevent claims of defective plans & specs) (law note)
August 17, 2011 —
Melissa Brumback, Construction Law in North CarolinaHave you ever considered a “Safe Harbor Provision” for your Owner-Architect or Owner-Engineer contract? Maybe it is time that you do.
As you are (probably too well) aware, on every construction project there are changes. Some of these are due to the owner’s change of heart, value engineering concerns, contractor failures, and material substitutions. Some may be because of a design error, omission, or drawing conflict. It happens.
A “Safe Harbor Provision” is a provision that establishes an acceptable percentage of increased construction costs (that is, a percentage of the project’s contingency). The idea is that if the construction changes attributable to the designer is within this percentage, no claim will be made by the Owner for design defects.
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Reprinted courtesy of Melissa Brumback of Ragsdale Liggett PLLC. Ms. Brumback can be contacted at mbrumback@rl-law.com.
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Denver Court Rules that Condo Owners Must Follow Arbitration Agreement
November 07, 2012 —
CDJ STAFFPrior to initiating a construction defect lawsuit, the Glass House Residential Association voted to invalidate the arbitration agreement that had been written into its declaration and bylaws by the developer and general contractor. After the association started their construction defect claims, the developer and general contractor argued that the case must go to arbitration, as the arbitration clause contained a provision that it could not be altered without the agreement of the developer and general contractor.
The Denver District Court has ruled against that association, determining that the res triction was not in violation of Colorado condominium law. And, as a post from Polsinelli Shughart PC on JDSupra notes, the Colorado Common Interest Ownership Act encourages the use of arbitration procedures to settle disputes. The CCIOA does prohibit “certain restrictions on the homeowners association’s ability to amend the condominium declarations,” however, preserving an arbitration agreement is not one of them.
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S&P Suspended and Fined $80 Million in SEC, State Mortgage Bond Cases
January 21, 2015 —
Keri Geiger and Matt Robinson – BloombergStandard & Poor’s (MHFI) agreed to be suspended from rating the biggest part of the commercial-mortgage bond market and pay almost $80 million to state and federal authorities over claims it bent criteria to win business.
S&P misled investors about the methodology it used in 2011 to rate eight commercial-mortgage backed securities, the U.S. Securities and Exchange Commission said in a statement today. The company will pay about $58 million to the SEC and an additional $19 million to attorneys general for New York and Massachusetts to settle the matter.
Ms. Geiger may be contacted at kgeiger4@bloomberg.net; Mr. Robinson may be contacted at mrobinson55@bloomberg.net
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Keri Geiger and Matt Robinson, Bloomberg
The Risk of A Fixed Price Contract Is The Market
August 03, 2022 —
David Adelstein - Florida Construction Legal UpdatesWhen performing work on a fixed price or unit, there is risk that is being assumed on your end. One risk is the market. You are ultimately banking on the fact that the market is not going to make your fixed prices unprofitable. That’s not an unforeseeable occurrence because the market shifts and that shift can have a negative ripple effect.
In a recent case out of the Federal Circuit, U.S. Aeroteam, Inc. v. U.S., 2022 WL 243176 (Fed.Cir. 2022), this market risk played a role in a fixed price contract. Here, a contractor was hired by the federal government to produce ground support trailers. A key component of these trailers was a running gear. The contractor relied on a vendor for these running gears. Due to financial difficulties, the vendor had to raise its unit price for the running gears. Based on the increased price, the contractor elected to manufacture the running gears itself. The contractor asked the government if this was ok and the government approved the request. Once the contractor started manufacturing these running gears, it had an “awe” moment – the manufacturing costs were higher than anticipated. The contractor submitted a request for equitable adjustment which the government denied. The Contractor than sued the government raising three arguments to support its entitlement to additional costs: (1) constructive change; (2) cardinal change; and (3) commercial impracticability. The contractor lost on all arguments. It probably should have lost on all arguments.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Updated: Happenings in and around the West Coast Casualty Seminar
May 13, 2014 —
Beverley BevenFlorez-CDJ STAFFFor those who are attending the West Coast Casualty Construction Defect Seminar this week, the Construction Defect Journal has updated its list of concerts, sporting events, and museum exhibitions taking place in and around Anaheim. Whether you like to spend your personal time checking out a new band, or watching your favorite Angel slide into home, or perusing the local art museum, there is something to spark your interest.
***CONCERT VENUES***
THE HOUSE OF BLUES IN ANAHEIM
Live Band Karaoke
Wednesday, May 14th, 2014 Doors Open at 10pm / Show Begins at 11pm
Every Wednesday experience the excitement of singing your favorite song with a live band. Over 200 songs to choose from our massive collection of classics and current hits. Get down here and let your vocals roar. No Cover!
Rockin’ The Blues
Thursday, May 15th, 2014 Doors Open at 10pm / Show Begins at 11pm
Every Thursday night head down to The Voodoo Lounge and listen to the best local live blues band. This is the music that shaped American music and influences every genre we listen to today. No cover!
Alice in Cooperland with Sons of Cream and Iron Plaid
Friday, May 16th, 2014 Doors Open at 7pm / Show Begins at 8pm
Friday Night Live
Friday, May 16th, 2014 Doors Open at 10pm / Show Begins at 11pm
Every Friday night features live music in The Voodoo Lounge. One stage, weekly mind blowing performances. No cover!
Stephen "Ragga" Marley
Saturday, May 17th, 2014 Doors Open at 8pm / Show Begins at 9pm
Dance, Pop and Hip-Hop
Saturday, May 17th, 2014 Doors Open at 10pm / Show Begins at 11pm
Every Saturday night The Voodoo Lounge heats up with the sounds of DJ Matt Hill spinning across genres and getting the party started. No Cover!
For More Information on Events at THE HOUSE OF BLUES OF ANAHEIM...
THE GROVE OF ANAHEIM
Lindsey Stirling plus special guest Dia Frampton
Wednesday, May 14, 2014 Doors Open at 7pm / Show Begins at 8pm
Primal Fear
Thursday, May 15, 2014 Doors Open at 6:30pm / Show Begins at 7pm
Jillian Michaels 'Maximize Your Life' Tour
Friday, May 16, 2014 Doors Open at 6pm / Show begins at 8pm
For More Information on Events at THE GROVE OF ANAHEIM...
THE HONDA CENTER
2014 Powerhouse
Saturday, May 17, 2014 – Parking lot Festival 3pm – Show Begins 7pm
Power 106 presents Powerhouse with Performances by Nicki Minaj, TDE’s Schoolboy Q, Wiz Khalifa, Trey Songz, YG, Jennifer Lopez, Childish Gambino, Juicy J, Sage The Gemini, Isaiah Rashad, plus Special Surprise Guests and More!
For More Information and to Purchase Tickets for THE HONDA CENTER...
***SPORTING EVENTS***
ANGEL’S STADIUM - BASEBALL
The Los Angeles Angels of Anaheim v. Tampa Bay Rays
Thursday, May 15th at 7:05pm
Friday, May 16th at 7:05pm
Saturday, May 17th at 6:05pm
Sunday, May 18th at 12:35pm
For More Information and to Purchase Tickets for ANGEL'S BASEBALL...
THE HONDA CENTER – HOCKEY
Ducks v. Kings – Game 7 (If Necessary)
Friday, May 16th at TBA
For More Information and to Purchase Tickets for DUCKS' HOCKEY...
***MUSEUM EXHIBITIONS***
MUZEO
Transcending Trash: The Art of Upcycling
Apr 26 –Aug 31, 2014
Transcending Trash: The Art of Upcycling celebrates the transformation of throwaway objects into complex and colorful works of art.
African Exhibit On The Move (free)
May 7 –May 1, 2014
Photographer Dawn Harman has captured the spirit and energy of Africa through a series of limited edition images- each and every photo tells an extraordinary story.
Museum Days/Hours: Tuesday – Sunday (Closed Mondays) / 10 am to 5 pm
For More Information on Events at MUZEO...
BOWERS MUSEUM (Santa Ana)
Beethoven: The Late Great
Feb 8 - May 18, 2014
In recognition of the 60th anniversary of the Philharmonic Society of Orange County and its 21st and final season of Dean Corey’s leadership, the Philharmonic Society will present a multi-season celebration of the major late works of Ludwig van Beethoven, including a celebratory exhibition at the Bowers Museum.
Soulful Creatures: Animal Mummies In Ancient Egypt
Mar 22 – June 15, 2014
Soulful Creatures: Animal Mummies in Ancient Egypt is the first major exhibition to focus on one of the most fascinating aspects of ancient Egyptian culture and religion—the mummification of animals.
Chuck Jones: Doodles of a Genius
Apr 26 - August 3, 2014
This exhibition contains original drawings, most never publicly displayed, including a section of 50 so‐called "Doodles," perhaps best described as coming from one artist's very far side.
The Lure Of Chinatown: Painting California's Chinese Communities
Apr 12 - August 31, 2014
The unique cultural customs, fascinating architecture, and rich aesthetic of the Chinese communities in San Francisco and Los Angeles inspired many 19th and 20th century artists.
Museum Days/Hours: Tuesday – Sunday (Closed Mondays) / 10 am to 4 pm
For More Information on Events at BOWERS MUSEUM...
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Indiana Federal Court Holds No Coverage for $50M Default Judgment for Lack of Timely Notice of Class Action
August 26, 2019 —
Anthony L. Miscioscia and Timothy A. Carroll - White and Williams LLPIn Greene v. Kenneth R. Will, a CGL insurer recently prevailed in a declaratory judgment action arising from an underlying class action alleging pollution and nuisance claims against the insured, VIM Recycling LLC, an Indiana-based waste-recycling facility.[1] “[T]his case has some whiskers on it,” the Indiana federal district court recounted in its exhaustive decision granting the insurer relief. The court relieved the insurer of indemnifying a $50 million default judgment against the insured, which, the court observed, “proved to be a bad neighbor” and “nuisance in both the legal and colloquial sense.” The court held that the insured failed to provide timely notice of the class action.
“The judgment against the [insured] came about when a group of nearby homeowners decided that they had had enough of VIM’s polluting behavior and brought this class action to recover damages for environmental violations, nuisance and negligence based on the impact of the waste facility on their homes and property,” the court explained. Eventually, the court entered a default judgment against the insured for $50,568,750, plus an award of $273,339.85 in attorney’s fees. Because the insured was “judgment-proof,” the class action plaintiffs “aligned” with the insured “hoping to collect on their monumental judgment” from the insured’s CGL insurer. Within a few weeks’ time, the class action plaintiffs sued the insurer seeking a declaration of coverage for the default judgment against the insured.
Reprinted courtesy of
Anthony L. Miscioscia, White and Williams LLP and
Timothy A. Carroll, White and Williams LLP
Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com
Mr. Carroll may be contacted at carrollt@whiteandwilliams.com
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Hawaii Federal District Court Rejects Insurer's Motion for Summary Judgment on Construction Defect Claims
November 06, 2018 —
Tred R. Eyerly - Insurance Law HawaiiTaking into consideration a "Revised Occurrence Endorsement," the federal district court determined the insurer had a duty to defend. Gemini Ins Co. v. Constrx Ltd., 2018 U.S. Dist. LEXIS 163453 (D. Haw. Sept. 24, 2018).
Constrx Ltd. (CRX) contracted with the AOAO to perform remedial construction repairs to condominium buildings and apartment units. CRX asserted that it completed all work, including charge orders and punch list items and it left the site. CRX was paid less that the contract amount and demanded arbitration against the AOAO. In the arbitration the AOAO relied upon a report by Posard Brock & Associates (PBA) Report which set forth the AOAO's claims against CRX, including corrective work, remaining punch list work, construction delay costs, cost overruns, and other items justifying its payment than less that the contract amount.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Leaky Wells Spur Call for Stricter Rules on Gas Drilling
September 17, 2014 —
Jim Snyder, Jim Polson and Bradley Olson – BloombergA study that found natural gas drilling polluted drinking water is fueling calls for stricter standards for well construction that could increase costs for energy companies.
The analysis by academic researchers backed the oil and gas industry in one respect: the authors said “fracking” wasn’t to blame for harmful methane seeping into groundwater studied in Texas and Pennsylvania. Some environmentalists contend that by blasting underground rock with a mix of water, chemicals and sand, producers can force the gas into drinking water near the surface.
The bigger concern, according to the analysis published yesterday by the peer-reviewed Proceedings of the National Academy of Sciences, are leaks in the steel-and-cement casings surrounding the well bore. They let gas escape before it gets to the surface, making water undrinkable and in some cases explosive.
Reprinted courtesy of Bloomberg journalists
Jim Snyder,
Jim Polson and
Bradley Olson
Mr. Snyder may be contacted at jsnyder24@bloomberg.net; Mr. Polson may be contacted at jpolson@bloomberg.net; Mr. Olson may be contacted at bradleyolson@bloomberg.net
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