Columbus Ohio Building Expert Directory

Is it the End of the Lease-Leaseback Shootouts? Maybe.

September 07, 2020 — Garret Murai - California Construction Law Blog
It’s the case that has turned into a modern day Hatfield versus McCoy – McGee v. Torrance Unified School District, Case No. 8298122, 2nd District Court of Appeals (May 29, 2020) – a series of cases challenging the validity of certain lease-leaseback construction contracts in California. In shootout number one, James McGee sued the Torrance Unified School District challenging the validity of lease-leaseback contracts the District had entered into with general contractor Balfour Beatty Construction, LLC. Under California’s lease-leaseback statute, a school district can lease property it owns to a developer, who in turns builds a school facility on the property and leases the facility back to the school district. The primary benefit of the lease-leaseback method of project delivery is that a school district does not need to come up with money to build the facility because the district pays for the facility over time through lease payments to the developer. In shootout number one, McGee argued that Torrance Unified School District was required to competitively bid the lease-leasebacks projects. The 2nd District Court of Appeals disagreed. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Wisconsin Supreme Court Holds that Subrogation Waiver Does Not Violate Statute Prohibiting Limitation on Tort Liability in Construction Contracts

October 21, 2019 — Gus Sara - The Subrogation Strategist
In Rural Mut. Ins. Co. v. Lester Bldgs., LLC 2019 WI 70, 2019 Wisc. LEXIS 272, the Supreme Court of Wisconsin considered whether a subrogation waiver clause in a construction contract between the defendant and the plaintiff’s insured violated Wisconsin statute § 895.447, which prohibits limitations of tort liability in construction contracts. The Supreme Court affirmed the lower court’s decision that the waiver clause did not violate the statute because it merely shifted the responsibility for the payment of damages to the defendant’s insurance company. The waiver clause did not limit or eliminate the defendant’s tort liability. This case establishes that while § 895.447 prohibits construction contracts from limiting tort liability, a subrogation waiver clause that merely shifts responsibility for the payment of damages from a tortfeasor to an insurer does not violate the statute and, thus, is enforceable. In Rural Mutual, the plaintiff’s insured, Jim Herman, Inc. (Herman), entered into a contract with Lester Buildings, LLC (Lester) to design and construct a barn on Herman’s property. The contract included a provision that stated the following: Both parties waive all rights against each other and any of their respective contractors, subcontractors and suppliers of any tier and any design professional engaged with respect to the Project, for recovery of any damages caused by casualty of other perils to the extent covered by property insurance applicable to the Work or the Project, except such rights as they have to the proceeds of such property insurance and to the extent necessary to recover amounts relating to deductibles of self-insured retentions applicable to insured losses. . . . This waiver of subrogation shall be effective notwithstanding allegations of fault, negligence, or indemnity obligation of any party seeking the benefit or production [sic] of such waiver. Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

When Are General Conditions and General Requirements Covered by Builder's Risk

December 18, 2022 — Michael V. Pepe & Grace V. Hebbel - Saxe Doernberger & Vita
General conditions and general requirements are terms of art in the construction industry that describe the indirect costs necessary to complete a construction project. After physical loss or damage to a project, the following question often arises: Are “general conditions” and “general requirements” covered under a builder’s risk policy? General Conditions vs. General Requirements General conditions are usually described as the cost of managing a construction project. Examples include salaries for personnel like project managers, supervisors, engineers, field office staff, as well as the cost of field trailers, office equipment and supplies, and anything necessary to support the staff. General requirements are the non-management indirect costs of executing the project, including items such as pre-development costs, permits, security, dumpsters, fences, temporary lighting, worker amenities, and clean-up costs. Reprinted courtesy of Michael V. Pepe, Saxe Doernberger & Vita and Grace V. Hebbel, Saxe Doernberger & Vita Mr. Pepe may be contacted at MPepe@sdvlaw.com Ms. Hebbel may be contacted at GHebbel@sdvlaw.com Read the court decision
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Defective Sprinklers Not Cause of Library Flooding

October 30, 2013 — CDJ STAFF
Sprinklers are important in any public building, but libraries with their large collections of nicely flammable paper. Of course, you also want to keep those books dry. The Hilton Head Island library investigated its sprinklers after a malfunctioning sprinkler head flooded the Friends of the Library bookshop, ruining thousands of books. The investigation found that, apart from the malfunction, the sprinklers had a defect that could have lead to their failure to operate in the event of a fire. The sprinklers had been the subject of a voluntary recall in 2001, however the 220 sprinkler heads were not replaced at that time. The county claimed that they were unaware of the recall at the time, and so failed to take advantage of program under which the manufacturer would pay for the recall. That program ended in 2007. Read the court decision
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Insurer's Refusal to Consider Supplemental Claim Found Improper

June 17, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Eleventy Circuit reversed the district court's finding that the insurer had properly rejected the insured's supplemental claim. Great Lakes Ins. SE v. Concourse Plaza A Condomiium Association, Inc., 2024 U.S. App. LEXIS 8958 (11th Cir. April 15, 2024). On September 10, 2017, Hurrican Irma struck Concourse Plaza's building, causing wind and water damage. Great Lakes sent a adjuster to inspect the property. The adjuster found damages to the building were $31,035.21, well below the policy's deductible. Accordingly, Great Lakes advised that the net amount of the claim was zero. Concourse Plaza responded on September 4, 2020, just shy of three years after the cliam accured. Concourse Plaza disputed the damages estimate, but did not include a competing estimate. The letter said an estimate was being prepared and Great Lakes should consider the letter as notice of the intent to pursue additional benefits for the loss pursuant to the policy's notice provisions and Florida law. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Remodel Leads to Construction Defect Lawsuit

October 16, 2013 — CDJ STAFF
The Sacramento, California law firm Anderson Shoech has announced that it will be filing a construction defect lawsuit concerning a single-family home in Sonora, California. The remodel is alleged to have lead to roof leaks and mold growth. Anderson Schoech will have the home inspected by a general contractor who will be retained as an expert witness. Read the court decision
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Flood Sublimit Applies, Seawater Corrosion to Amtrak's Equipment Not Ensuing Loss

November 10, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The insurers were granted summary judgment on three issues regarding Amtrak's claim for damages caused by Hurricane Sandy. Amtrak v. Aspen Sec. Ins. Co., 2016 U.S. App. LEXIS 16074 (2nd Cir. Aug. 31, 2016). Hurricane Sandy caused flooding which damaged two of Amtrak's tunnels under the East and Hudson Rivers. Seawater from the flooding caused extensive damage to equipment in the tunnels. The district court granted summary judgment to the insurers on the following issues: (1) the damage caused by an inundation of water in the tunnels was subject to the policies' $125 million flood sublimit; and (2) the corrosion of equipment after Amtrak pumped out the seawater was not an "ensuing loss" and therefore was also subject to the flood sublimit. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

White and Williams recognized with Multiple Honorees in the Chambers 2023 USA Guide

June 26, 2023 — White and Williams LLP
Chambers has released their 2023 USA guide and ranked White and Williams as a leader among national law firms. The firm was recognized for recent achievements in Real Estate Finance and Insurance in Pennsylvania, and Construction in Maryland. “We are very pleased to have some of our most talented attorneys recognized again by Chambers”, said Andrew Susko, the Firm’s Managing Partner. In addition, to practice area recognition, nine lawyers were recognized and ranked highly in the 2023 Chambers USA guide from Connecticut, Pennsylvania, and Maryland. In Philadelphia, Timothy E. Davis, Partner and Chair of the Business Department, and Nancy Sabol Frantz, Chair of the Real Estate and Finance practice were recognized for their achievements in Real Estate: Finance; and, Stephen Coury, Connecticut Office Managing Partner, was ranked among the top Real Estate professionals in Connecticut. Read the court decision
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Reprinted courtesy of White and Williams LLP

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