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    Real Estate & Construction News Round-Up (01/11/23) – Construction Tech, Housing Market Confidence, and Decarbonization

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    No Coverage for Faulty Workmanship Where Underlying Claim is Strictly Breach of Contract

    June 30, 2016 —
    Considering certified questions from the federal district court, the Arkansas Supreme Court followed a prior decision in deciding there was no coverage for property loss caused by faulty workmanship based solely on breach of contract. Columbia Ins. Group, Inc. v. Cenark Project Mgt. Services, Inc., 2016 Ark. LEXIS 185 (Ark. April 28, 2016). The homeowners entered a contract in 2005 with Arkansas Infrastructure, Inc. (AII) to construct pads for the construction of six homes. The contract provided that AII would perform the work in accordance with the plans, specifications, and drawings developed by CENARK Project Management Services, Inc. In 2012, the homeowners sued AII for breach of contract, alleging that AII had failed to construct the pads in accordance with the plans and specifications designed by CENARK. Read the court decision
    Read the full story...
    Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
    Mr. Eyerly may be contacted at te@hawaiilawyer.com

    Payment Bond Claim Notice Requires More than Mailing

    August 04, 2015 —
    It’s been a while since I posted something new relating to Virginia’s “Little Miller Act” and its various notice requirements for a subcontractor to make a payment bond claim. I have posted on the basics of a Virginia payment bond claim previously here at Musings. One of these basics is the 90 day notice requirement for suppliers or second tier subcontractors with no direct contractual relationship to the general contractor. A recent case from the Norfolk, Virginia Circuit Court examined when notice is “given” under the Little Miller Act. In R T Atkinson Building Corp v Archer Western Construction, LLC the Court looked at the question of whether mailing of the notice of claim is enough to constitute notice being “given” in a manner that would satisfy the statutory requirements. In that case, the supplier mailed the notice within the 90 day window, but the defendant argued on summary judgment that it did not receive the notice until 2 days after the 90 day window had closed. In support of this contention, the defendant provided tracking information showing delivery by the USPS on the non-compliant date. Read the court decision
    Read the full story...
    Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
    Mr. Hill may be contacted at chrisghill@constructionlawva.com

    Condo Collapse Spurs Hometown House Member to Demand U.S. Rules

    July 19, 2021 —
    A Florida congresswoman called for stricter federal building-safety standards on Thursday to prevent a repeat of the condominium collapse that killed at least 60 people and left dozens more missing in her state. Representative Debbie Wasserman Schultz, a Democrat whose congressional district includes the condo development in Surfside, said more buildings could collapse or break down as they age and the federal government needed to have a “minimum floor” of safety requirements. “We do have standards that are tangentially related at the federal level and so I do think it’s important to look into what standards should be adopted at the national level, at a minimum, because this is a tragedy of epic proportions,” she said on Bloomberg Television’s “Balance of Power” with David Westin. “We can’t allow this to ever happen again.” Read the court decision
    Read the full story...
    Reprinted courtesy of Parker Purifoy, Bloomberg

    Mediation in the Zero Sum World of Construction

    September 26, 2022 —
    Construction is a zero sum game. What do I mean by that? I mean that even where you, a construction professional with a great construction lawyer, have reviewed and edited a subcontract presented to you or provided a well-drafted contract to the other party that contains an attorney fees provision, every dollar that you spend on litigation is a dollar less of profit. Couple the fact that no construction company can or should bid or negotiate work with an eye toward litigation (aside from having a well written contract that will be enforced to the letter here in Virginia). Particularly on “low bid” type projects, contractors and subcontractors cannot “pad” their bids to take into account the possibility of attorney fees, arbitration, or litigation. Furthermore, the loss of productivity when your “back office” personnel are tied up dealing with discovery, phone calls, and other incidents of litigation that do nothing but rehash a bad project and increase the expense sap money from the bottom line. While the possibility of a judgment including attorney fees may soften this blow, you are still out the cash. All of this said, if you are in commercial construction for any significant period of time disputes will arise and I have discussed the process in some detail at other places here at Construction Law Musings. As a construction litigator, I am fully aware of this fact of life. Efficient management of these disputes is key, particularly when they escalate to the point where some form of outside “help” (read arbitrator or judge) is necessary. Read the court decision
    Read the full story...
    Reprinted courtesy of The Law Office of Christopher G. Hill
    Mr. Hill may be contacted at chrisghill@constructionlawva.com

    U.S. Firm Helps Thais to Pump Water From Cave to Save Boys

    August 14, 2018 —
    Like much of the world, Patrick Decker has been engrossed in the saga of 12 boys and their soccer coach who became trapped in a flooded cave in Thailand. Unlike most, Decker is in a position to do something about it. As chief executive officer of Xylem Inc., one of the world’s top water technology firms, Decker spent much of last week reaching out to Thai officials and mobilizing his company of 17,000 employees to help. Decker said he sent four engineers to the cave site, and they assisted rescuers by boosting pumping power 40 percent. Thai Navy SEALs and international cave diving experts extracted eight boys over Sunday and Monday. Read the court decision
    Read the full story...
    Reprinted courtesy of Dan Murtaugh, Bloomberg

    What is a Civil Dispute?

    August 07, 2018 —
    Broadly speaking, all lawsuits can be put into one of two categories: criminal or civil. Criminal cases are brought by the government against a private person and/or organization for committing an act that is considered harmful to society as a whole; whereas civil cases involve private disputes between individuals and/or organizations. Civil litigation begins when one person or organization claims that another person or organization has failed to carry out a legal duty owed to the claimant. Legal duties are those prescribed either by contract between the parties, or by the law. In order for a claimant to commence legal action against another party, the claimant must file a summons and complaint with the court and serve a copy of the summons and complaint on the party against whom the lawsuit is being brought. The person who brings the lawsuit is called the “Plaintiff” and the person against whom the lawsuit is brought is called the “Defendant.” Read the court decision
    Read the full story...
    Reprinted courtesy of Bremer Whyte Brown & O’Meara

    Sometimes, Being too Cute with Pleading Allegations is Unnecessary

    June 06, 2018 —
    There are times where being too darn cute with your pleading allegations is unnecessary and does not work. But, the point is really that the cuteness is unnecessary. In a Miller Act payment bond dispute in Boneso Brothers Construction, Inc. v. Sauer, Inc., 2018 WL 2387833 (N.D.Cal. 2018), a claimant asserted claims against a Miller Act payment bond surety for breach of the payment bond, breach of a subcontract, open account, and account stated. The question is why would the claimant sue the payment bond surety for breach of subcontract (when the subcontract was not with the surety), and open account and account stated. I have no clue, other than such claims appeared quite unnecessary when the claimant asserted an action on the Miller Act payment bond (which is what the surety is liable under — actions under the statutory payment bond). Such claims were dismissed. And, they should have been. Read the court decision
    Read the full story...
    Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
    Mr. Adelstein may be contacted at dadelstein@gmail.com

    Client Alert: Design Immunity Affirmative Defense Not Available to Public Entities Absent Evidence of Pre-Accident Discretionary Approval of the Plan or Design

    April 15, 2014 —
    On April 8, 2014, in Martinez v. County of Ventura, Case No. B24476, the Second Appellate District of the California Court of Appeal reversed the jury's defense verdict for the County of Ventura, holding that the County's evidence in support of its Design Immunity defense to a public property dangerous condition claim was insufficient as a matter of law. Plaintiff filed suit against the County of Ventura (the "County") after sustaining paraplegic injuries when his motorcycle struck an asphalt berm abutting a raised drain (the top-hat drain system) on a road in the County. The drain system consisted of a heavy steel cover on three legs elevated eight to ten inches off the ground, with a sloped asphalt berm to channel water into the drain. Plaintiff alleged that the top-hat drain system constituted a dangerous condition of public property pursuant to California Government Code section 835. Under this Section, a public entity is liable for "injury proximately caused by a dangerous condition of its property if the condition created a reasonably foreseeable risk of the kind of injury sustained, and the public entity had actual or constructive notice of the condition a sufficient time before the injury to have taken preventative measures." The jury found the top-hat drain system constituted a dangerous condition of public property. Reprinted courtesy of R. Bryan Martin, Haight Brown & Bonesteel LLP and Melinda M. Carrido, Haight Brown & Bonesteel LLP Mr. Martin may be contacted at bmartin@hbblaw.com; Ms. Carrido may be contacted at mcarrido@hbblaw.com Read the court decision
    Read the full story...
    Reprinted courtesy of