Insurer's Motion in Limine to Dismiss Case for Lack of Expert Denied
June 26, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe court denied the insurer's motion in limine seeking to dismiss the insureds' complaint due to the absence of expert testimony. Fabozzi v. Lexington Ins. Co., 2014 U.S. Dist. LEXIS 74069 (E.D. N.Y. May 30, 2014).
During the policy period, the insureds noticed their house had serious structural problems, including cracks in the walls and floors that were pitched toward the rear of the house. The insureds had to move from their house. When they submitted a claim, it was denied by Lexington because the losses were caused by "wear and tear, deterioration, earth movement, settlement, shrinking, bulging or expansion of the property leading to cracking of structural components."
The insureds sued. Lexington filed a motion in limine to preclude the testimony of the insureds' expert and to dismiss the complaint for inability to offer prima facie proof of a covered loss absent such expert testimony.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Is A Miller Act Payment Bond Surety Bound by A Default or Default Judgment Against Its Principal?
February 08, 2021 —
David Adelstein - Florida Construction Legal UpdatesMaguire-O’Hara Construction, Inc. v. Cool Roofing Systems, Inc., 2020 WL 6532852 (W.D. Oklahoma 2020) is an interesting case dealing with suretyship law and the subject of whether a Miller Act payment bond surety is bound by a default or default judgment against its prime contractor (bond principal).
In this case, a subcontractor sued a prime contractor for breach of contract and the contractor’s Miller Act payment bond surety for a breach of the payment bond. The prime contractor did not respond to the lawsuit and the subcontractor obtained a default against the contractor. The Miller Act payment bond surety did engage counsel to defend itself in the dispute. Prior to trial, the subcontractor moved in limine to preclude the surety from raising defenses at trial under the subcontract because a default was entered against the prime contractor. The subcontractor argued that the surety should be bound by the default and, therefore, precluded from raising liability defenses under the subcontract. Such a ruling would leave the surety no defenses disputing liability at trial.
[A] suretys’ liability under the Miller Act coincides with that of the general contractor, its principal. Accordingly, a surety [can] plead any defenses available to its principal but [can]not make a defense that could not be made by its principal.
Maguire-O’Hara Construction, supra, at *2 (internal citations and quotations omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Lien Release Bonds – Remove Liens, But Not All Liability
February 20, 2023 —
Mia Hughes - ConsensusDocsLien Release Bonds – Remove Liens, But Not All Liability
Among owners and contractors, payment and performance bonds are commonly used together in an effort to mitigate future risk against derivative subcontractor claims. But what happens when despite the effort to mitigate risk, a derivative claimant nevertheless files a mechanics’ lien on the owner’s real property? Not all hope is lost. There is another classification of bond, a “lien release bond”—also commonly referred to as an indemnity bond or a mechanics’ lien bond—which provides protections for real property after a mechanics’ lien has already been filed. The purpose of a lien release bond is to remove claims against the relevant real property. Notably, a lien release bond does not necessarily eliminate all liability of an owner or a general contractor. In number of states, an owner or a general contractor can be held personally liable for derivative claims despite a valid lien release bond.
What is a Lien Release Bond?
A lien release bond is a specific type of surety bond that removes an existing mechanics’ lien from an owner’s real property. In an effort to protect real property, an owner, or a general contractor, can obtain a lien release bond that will substitute or take the place of a mechanics’ lien. In the event a lien claimant files suit on the mechanics’ lien and seeks to collect on their claim, any proceeds recovered will come from the lien release bond rather than proceeds from the sale or foreclosure of the real property. The threat of mechanics’ liens is always present on a construction project— it is estimated that over 60,000 mechanics liens were filed in 2021 alone. Lien release bonds are an added layer of protection for an owner’s real property against a pending mechanics’ lien.
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Mia Hughes, Jones Walker LLP (ConsensusDocs)Ms. Hughes may be contacted at
mhughes@joneswalker.com
Berkeley Researchers Look to Ancient Rome for Greener Concrete
June 28, 2013 —
CDJ STAFFWhile modern concrete often crumbles after fifty years, some concrete laid down during the Roman Empire is still strong, even after 2,000 years. Researchers at UC Berkeley have been puzzling over the secrets of Roman concrete, using samples from a breakwater near Naples. The breakwater was built about 37 BC, and the concrete is still strong. Unlike modern concrete, the Romans made theirs with a mixture of lime and volcanic ash.
Paulo Monteiro, a professor of civil and environmental engineering at Berkeley, noted that one of the drawbacks of Roman cement was that it hardens more slowly than modern concrete. An advantage is that it is more environmentally friendly, and the researchers are trying to determine if volcanic ash cement would be a good substitute. Professor Montiero hopes that fly ash and volcanic ash cements “could replace 40 percent of the world’s demand for Portland cement.”
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When Coronavirus Cases Spike at Construction Jobsites
July 27, 2020 —
Richard Korman, Scott Judy & Jeff Rubenstone - Engineering News-RecordWhen Covid-19 took hold in several US states in early spring, Choate Construction responded, as many contractors did, by quickly adopting federal workplace safety guidelines for disinfecting surfaces and maintaining social distancing. Enhanced by various state lockdown measures for businesses and the general public, the new safety system seemed to work with only a handful of workers on Choate’s projects testing positive.
Reprinted courtesy of Engineering News-Record reporters
Richard Korman,
Scott Judy and
Jeff Rubenstone
Mr. Korman may be contacted at kormanr@enr.com
Mr. Judy may be contacted at judys@enr.com
Mr. Rubenstone may be contacted at rubenstonej@enr.com
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Action Needed: HB24-1230 Spells Trouble for Colorado Construction Industry and its Insurers
March 25, 2024 —
David McLain - Higgins, Hopkins, McLain & Roswell, LLCIn an apparent gift to plaintiffs’ construction defect lawyers, Representatives Parenti and Bacon introduced House Bill 24-1230 on February 12, 2024. The bill was assigned to the House Judiciary Committee and is scheduled for hearing on March 6th, during the afternoon session beginning at 1:30 pm. To date, the bill does not have any senate sponsors, perhaps because the senators are more interested in serving their constituents’ needs for attainable housing than in lining the pockets of their plaintiffs’ construction defect attorney friends.
According to the bill’s summary, HB 24-1230 contains the following provisions:
Current law declares void any express waivers of or limitations on the legal rights or remedies provided by the “Construction Defect Action Reform Act” or the “Colorado Consumer Protection Act.” Sections 1 and 4 make it a violation of the “Colorado Consumer Protection Act” to obtain or attempt to obtain a waiver or limitation that violates the aforementioned current law.
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Miami's Condo Craze Burns Out on Strong Dollar
June 10, 2015 —
Prashant Gopal and John Gittelsohn – BloombergThe sales office for condominiums at Miami’s Brickell City Centre attracted more than 100 visitors daily last year, with prospective buyers crowding in and snapping selfies beside a scale model of the $1 billion project.
Now, the flow of people has trickled to about a quarter of what it once was.
“Buyers are asking really good questions” instead of rushing into deals, said Stephen Owens, president of the U.S. unit of Hong Kong-based Swire Properties Ltd., the developer of the 9-acre (3.6-hectare) condo, hotel, office and shopping complex. “Two years ago, it was, ‘Where can I sign?’”
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Prashant Gopal, Bloomberg and
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Housing Starts Plunge by the Most in Four Years
March 19, 2015 —
Bloomberg News(Bloomberg) -- Housing starts plummeted in February by the most since 2011 as plunging temperatures and snow became the latest hurdles for an industry struggling to recover.
Work began on 897,000 houses at an annualized rate, down 17 percent from January and the fewest in a year, the Commerce Department reported Tuesday in Washington. The pace was slower than the most pessimistic projection in a Bloomberg survey of 81 economists.
“Today’s report leaves me a little concerned,” said Michelle Meyer, deputy head of U.S. economics at Bank of America Corp. in New York. “While the initial reaction is to dismiss much of the drop because of the bad weather, the level of home construction continues to be depressed.”
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Bloomberg NewsMichelle Jamrisko may be contacted at
mjamrisko@bloomberg.net