Gene Witkin Celebrates First Anniversary as Member of Ross Hart’s Mediation Team
May 23, 2022 —
AMCCLOS ANGELES, California, May 18, 2022 – With a near perfect record of resolving cases, Gene is particularly passionate about helping parties get closure and minimize the significant costs of civil discovery and trial. He attributes the high success rate to empathy for all sides from his diverse prior experience representing both plaintiffs and defendants in civil litigation, as well as his extensive past experience as insurance coverage counsel for both insureds and insurers.
In recent months, two cases in particular were at an impasse due to insurance issues. The parties were able to bridge the gap and resolve the disputes, with mediator help on subtle coverage issues in one case (working through technical policy provisions together) and a creative settlement structure in the other (involving allocation of payments under the insurance policy). Gene also credits the successful resolutions in part to pre-mediation calls with the parties to better define the obstacles to resolution.
Gene, along with Ross Hart and several AMCC neutrals were thrilled to see many of their colleagues and construction defect stakeholders earlier this month at the West Coast Casualty seminar, which certainly heralded a successful return to in person events.
For more information or to schedule a mediation, please contact case administrator Stephanie Felton at admin@amccenter.com.
About AMCC
For more than 30 years the principals of AMCC have been serving the construction, real estate and insurance industries as a full service ADR firm. In addition to administering multiple terms of the CSLB contract for the state, AMCC is the recognized leader in California for administering insurance appraisals under Insurance Code 2071, as well as numerous other related ADR services such as partnering and dispute review boards. For more information please visit www.amccenter.com.
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Wood Product Rotting in New Energy Efficient Homes
January 13, 2014 —
Melissa Zaya-CDJ STAFFBrad Pitt’s Make It Right Foundation may be filing a suit against TimberSIL, a wood manufacturer, as reported by WRAL. The foundation built 100 new homes in the 9th Ward of New Orleans after Hurricane Katrina, and used the TimberSIL wood in 30 of the homes for decks and stairs. Make It Right spokeswoman Taylor Royle told Richard Thompson of WRAL that they chose TimberSIL because of the absence of chemicals, which will allow the wood to be mulched and composted after it has served its purpose.
However, Royle claimed that the wood has begun to rot “despite being guaranteed for 40 years,” according to WRAL. She further alleged that the manufacturer failed to respond to any of the foundation’s attempts to discuss reimbursement of their costs under the forty year product warranty.
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Coverage for Collapse Ordered on Summary Judgment
November 21, 2022 —
Tred R. Eyerly - Insurance Law HawaiiA collapsed floor in a restaurant was found to be covered. J&J Fish on Center Street, Inc. v. Crum & Forster Spec. Ins. Co., 2022 U.S. Dist. LEXIS 163661 (D. Wis. Sept. 12, 2022).
J&J Fish rented property from Vision. Vision was obligated to keep the premises insured under an all-risk policy. Vision was also responsible for maintaining and repairing the property "including the slab flooring exterior walls of the premises." Vision never obtained insurance on the building, but J&J Fish secured a commercial property policy from Crum & Forster.
On May 29, 2020, approximately 25% of the building's slab floor, the section beneath the walk-in cooler, collapsed into the crawl space below. Dr. Daniel Wojnowski inspected the crawl space and observed overall dampness as well as a pool of water in the space. He concluded that the collapse occurred because the steel support beams and steel elements of the floor corroded after prolonged exposure to moisture. Based on this report, Crum & Forster denied coverage. J&J Fish sued and the parties moved for summary judgment.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Retainage: What Contractors Need to Know and Helpful Strategies
June 04, 2024 —
Gerard J. Onorata - ConsensusDocsIntroduction
Most, if not all, construction contracts contain a provision for “retainage.” The origin and concept of retainage dates back to the railroad boom that embraced Great Britain in the 1840s. In its simplest terms, retainage is a mechanism by which an owner or general contractor withholds disbursement of funds from the payment of a requisition in order to secure future performance of a contract and/or to pay for repair of defectively performed work. Retainage typically ranges from five to ten percent, with the amount being reduced as the project progresses to substantial and final completion. One of the reasons for withholding retainage is to incentivize a contractor to complete its work in accordance with the contract terms and conditions. While this may be well-intentioned in concept, it all too often leads to abuse that impacts project cash flow and raises tension between the parties. This typically happens on projects that have delay issues, deficient drawings, and/or claims of defective work. When a project has “gone bad,” the withholding of retainage is one of the first things that an owner will latch onto in order to leverage its position against a contractor. In order for a contractor to put itself in the best position possible, the following negotiation techniques and protective measures should be kept in mind.
Know Your Applicable Statute
Every state except West Virginia has statutes in place that govern the payment of retainage on public projects. On federal projects, the amount of retainage withheld shall not exceed ten percent as set forth in the Federal Acquisition Regulations (“FAR”). The common thread running through these statutes is the payment of interest as a remedy when the retainage is not timely paid. Historically, most retainage statutes were applicable only to publicly funded projects. This has recently changed with a substantial number of state legislatures recognizing that the payment of retainage on private projects was a serious enough problem to warrant regulation. These include Alabama, Arizona, California, Colorado, Connecticut, Idaho, Illinois, Kansas, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, and Vermont. New York’s retainage laws relating to private projects were enacted only this past November.
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Gerard J. Onorata, Peckar & AbramsonMr. Onorata may be contacted at
gonorata@pecklaw.com
“Details Matter” is the Foundation in a Texas Construction Defect Suit
March 01, 2012 —
CDJ STAFFThe Court of Appeals of Texas has ruled in the case of Barzoukas v. Foundation Design. Mr. Barzoukas contracted with Heights Development to build a house. He subsequently sued Heights Developments and “numerous other defendants who participated in the construction of his house.” Barzoukas eventually settled with all but two defendants, one who went bankrupt and Foundation Design, the defendant in this case. In the earlier phase, Barzoukas made claims of “negligence, negligent misrepresentation, fraud, fraudulent inducement, conspiracy, and exemplary damages in connection with the foundation.”
Foundation Design had been hired to install 15-foot piers to support the foundation. The engineer of record, Larry Smith, sent a letter to Heights Development noting that they had encountered hard clay stone when drilling. Smith changed the specifications to 12-foot piers. Initially, the City of Houston called a halt to work on the home when an inspector concluded that the piers were too shallow. Heights Development later convinced the city to allow work to continue. Subsequently, experts concluded that the piers were too shallow.
Foundation Design filed a motion for summary judgment. The trial court granted this, “without specifying the basis for its ruling.” Barzoukas contends the court was in error. Foundation Design contends that “Barzoukas failed to proffer competent evidence establishing that their conduct proximately caused damages.” Further, they did not feel that Smith’s letter gave “rise to viable claims for fraud and fraudulent inducement.”
One problem the court had was a lack of evidence. The court noted that “the purported subcontract is entirely missing” in the pleadings. The court has no contract between Bazourkas and Heights Development, nor one between Heights Development and either Foundation Design or Smith. The court underscored the importance of this, writing, “details matter.” They found that “the details are largely missing here.” Without the contract, the court found it impossible to determine if “Smith or an entity related to him agreed to indemnify Heights Development for damages arising from Smith’s negligent performance.”
As the material facts are in dispute, the appeals court found that there were no grounds for a summary judgment in the case. “Pointing to the existence of a contract between Heights Development and Barzoukas, or to the existence of a subcontract, is the beginning of the analysis ? not the end.”
Foundation Design and Smith also claimed that Barzoukas’s expert did not proffer competent evidence and that the expert’s opinions were conclusory. The trial court did not rule on these claims and the appeals court has rejected them.
Finally, Barzoukas made a claim that the trial court should not have rejected his argument of fraud and fraudulent inducement. Here, however, the appeals court upheld the decision of the lower court. “Barzoukas did not present evidence supporting an inference that Smith or Foundation Design made a purposeful misrepresentation.
The court remanded the case to the trial court for reconsideration. One member of the panel, Judge Charles Seymore, upheld the entire decision of the trial court. He dissented with the majority, finding that the economic loss rule foreclosed the claim of negligence.
Read the court’s decision…
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Skilled Labor Shortage Implications for Construction Companies
July 15, 2019 —
Tony James & Keith Maciejewski - Construction ExecutiveThe construction industry is facing one of the most significant labor shortages it has ever seen. This labor shortage has far-reaching implications for worker safety and construction quality—both of which could adversely impact a company’s bottom line if investments are not made to address the issue.
What’s causing the labor gap?
There are two underlying trends driving this phenomenon:
- More experienced workers have either not returned to the industry after the Great Recession or are now retiring as they’ve concluded their careers.
- The construction industry has long struggled to attract new, younger workers to the industry, and this problem has only worsened as the broader economy boomed. As a result, construction firms must compete with other industries, such as health care, technology and engineering, for young talent.
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Tony James & Keith Maciejewski, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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“Genuine” Issue of “Material” Fact and Summary Judgments
December 18, 2022 —
David Adelstein - Florida Construction Legal UpdatesThis is short article on summary judgments. A motion for summary judgment, as you may already know, is a procedural vehicle to try to dispose of issues or claims in a lawsuit, either partially or fully. The objective is that the moving party claims that there is no genuine issue of material fact and that they are entitled to a judgment (partially or finally) as a matter of law. See Florida Rule of Civil Procedure 1.510. In May of 2021, Florida adopted the federal summary judgment standard which theoretically means trial courts should grant more summary judgments, not less, based on the more rigorous standard.
There have been many articles that discuss Florida’s new summary judgment standard including how the standard used to be versus how it is supposed to be now that it is modeled after the federal standard. That isn’t the point of this posting. (Here is an article published in the Florida Bar Journal that provides a primer on summary judgments in case you are interested.)
The point of this posting is to understand the words “genuine” and “material” as underlined above when moving for or defending against a summary judgment. These words have important meaning in the context of motions for summary judgment. In other words, what is a genuine issue of material fact? This is a question that should not be overlooked because these are the facts you want to focus on and frame your arguments on when moving for or defending against a summary judgment. Notably, these are also the facts you want to introduce and emphasize at trial.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
New Standard Addresses Wind Turbine Construction Safety Requirements and Identifies Hazards
October 09, 2018 —
Christopher Daniels - Construction ExecutiveAmerican Society of Safety Professionals’ industry consensus standard, ANSI/ASSP A10.21 – 2018 Safety Requirements for Safe Construction and Demolition of Wind Generation/Turbine Facilities, is the first standard to identify and address hazards specific to wind turbine construction. It includes nearly a dozen appendices that provide additional consideration and guidance for hazards that vary between projects, turbines and geographical areas.
The new A10.21 standard starts by requiring a site hazard identification prior to construction commencing. It establishes the general contractor as the responsible party for site hazard identification assessment. This is because the general contractor is usually one of the first entities on site able to assess the various challenges/concerns such as: geography, utilities, environmental, etc. This assessment is usually done by driving the project site and identifying GPS coordinates of specific challenges.
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Christopher Daniels, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Daniels may be contacted at
chris.daniels@mortenson.com
