Fairfield Connecticut Building Expert Directory

Teaming Agreements- A Contract to Pursue a Solicitation and Negotiate

November 23, 2020 — David Adelstein - Florida Construction Legal Updates
Teaming agreements are practical and useful agreements on public projects where a prime contractor teams with a subcontractor for purposes of submitting a bid or proposal in response to a solicitation. The prime contractor and subcontractor work together to pursue that solicitation and have the government award the contract to the prime contractor. The teaming agreement allows for information to be confidentially shared (estimating and pricing, construction methodologies, systems, and suggestions, value engineering, etc.) where the subcontractor agrees that it will only pursue the solicitation with the prime contractor. In other words, the subcontractor ideally is not going to submit pricing to another prime contractor proposing or bidding on the same project and is not going to share information the prime contractor has furnished to it. Likewise, the prime contractor is not going to use the subcontractor’s information for purposes of finding another subcontractor at a lower price and is agreeing to use its good faith efforts or best attempts to enter into a subcontract with the subcontractor if it is awarded the project. This is all memorialized in the teaming agreement. The potential problem lies with language that requires the parties to use their good faith efforts or best attempts to enter into a subcontract if the project is awarded to the prime contractor. In essence, this can become a disfavored “agreement to agree” to a future contract that could allow either party to create an argument to back out of the deal under the auspice that they could not come to terms with the subcontract. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

The Fifth Circuit, Applying Texas Law, Strikes Down Auto Exclusion

July 11, 2022 — Jeremy S. Macklin - Traub Lieberman Insurance Law Blog
Penn-America Ins. Co. v. Tarango Trucking, LLC, 30 F.4th 440 (5th Cir. 2022), involved a coverage dispute over Penn-America Insurance Company’s (“Penn-America”) duty to defend and indemnify third-party claims against Tarango Trucking, LLC (“Tarango”) for a fatal accident on its property. At the time of the accident, Penn-America insured Tarango under a commercial general liability policy, which included an “Auto Exclusion” and “Parking Exception” provision. The Auto Exclusion stated the policy did not apply to bodily injury or property damage arising out of the use of any automobile, including the operation and loading or unloading. The Parking Exception stated the Auto Exclusion did not apply to parking an auto on Tarango’s premises. The main issues on appeal were whether the Parking Exception restored coverage otherwise precluded by the Auto Exclusion, and whether the district court prematurely decided Penn-America’s duty to indemnify. The appellate court answered yes to both. On March 2, 2020, a truck driver employed by WS Excavation, LLC (“WS”), parked his tractor-trailer on Tarango’s property and proceeded to inspect and off-load heavy equipment. While operating the hydraulic lift, the tractor’s braking system disengaged. The tractor rolled back and struck the WS driver and his personal vehicle, resulting in his death and significant property damage. Notably, WS allegedly failed to properly maintain the tractor’s electronic and braking systems, and Tarango allegedly failed to maintain a level parking and loading facility compliant with industry standards and guidelines. Read the court decision
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Reprinted courtesy of Jeremy S. Macklin, Traub Lieberman
Mr. Macklin may be contacted at jmacklin@tlsslaw.com

Firm Pays $8.4M to Settle Hurricane Restoration Contract Case

December 13, 2022 — James Leggate - Engineering News-Record
An electricity distribution infrastructure contractor that worked for the U.S. Army Corps of Engineers on hurricane restoration in Puerto Rico has agreed to pay the government $8.4 million to resolve allegations that it improperly withheld pricing data. The company denies the charges, agreeing to the settlement in order to avoid lengthy litigation. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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Chattanooga Bridge Collapse Likely Resulted From Impact

April 17, 2019 — Jim Parsons - Engineering News-Record
Tennessee highway officials believe an impact from a vehicle’s oversized load is likely to blame for the April 1 partial collapse of a ramp structure at the I-75/I-24 interchange in Chattanooga. The impact caused the outer box beam and railing of the 148-ft-long bridge’s nearly 51-ft main span to fall onto an access ramp, injuring a motorist whose vehicle collided with the debris. Read the court decision
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Reprinted courtesy of Jim Parsons, ENR
ENR may be contacted at ENR.com@bnpmedia.com

2017 Susan G. Komen Race for the Cure

March 01, 2017 — Haight Brown & Bonesteel LLP
As a part of our 80 acts of Kindness commitment, Haight has registered a team to walk/run in the Susan G. Komen Race for the Cure Event taking place Saturday, March 11, 2017 at Dodger Stadium from 7:00 a.m. - 11:30 a.m. We have a great group of partners, associates, and staff joining the Haight team to walk or run in support of the Susan G. Komen Foundation. For over 30 years, the Foundation’s efforts have funded life-saving breast cancer research and provided support to the thousands of women and men battling the disease. For 80 years, Haight Brown & Bonesteel has been one of California’s leading full service law firms. To commemorate our 80 years in business, we are giving back to the community. Throughout 2017, we will demonstrate our commitment to those in need through 80 different acts of kindness. Read the court decision
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Reprinted courtesy of Haight Brown & Bonesteel LLP

Insurer Not Responsible for Insured's Assignment of Policy Benefits

February 21, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The Florida Court of Appeals affirmed the lower court's granting summary judgment to the insurer after failing to abide by an assignment to which it was not a party. Expert Inspections, LLC v. United Property & Cas. Ins. Co., 2022 Fla. App. LEXIS 88 (Fla. Ct. App. Jan. 5, 2022). The insured's property sustained damage from Hurricane Irma resulting in a covered loss. The insured retained Expert Inspections to perform mold-related services. As payment, the insured assigned her policy benefits pursuant to an assignment of benefits agreement. Under the agreement, the insured agreed to cooperate with the assignee to ensure that payments were made by the insurer upon completion of work. The insured gave authority to the assignee to endorse any checks with her name listed on the check. 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

Fall 2024 Legislative Update:

October 28, 2024 — Joshua Lane - Ahlers Cressman & Sleight PLLC
Review of (a) RCW 60.30.010-020, (b) RCW 49.17.530, (c) RCW 19.95.020, (d) RCW 39.116.005, et seq., (e) RCW 36.70B.080, and (f) RCW 39.12.010 and .13 While much of the focus on the recent legislative updates has been on RCW 39.04.360, a number of other legislative changes may also have significant impacts on Washington’s construction industry. Six of these changes are summarized below. A. RCW 60.30.010 and .020 (SSB 6108) – Concerning Retainage on Private Construction, Effective June 6, 2024 Last year, ESSB 5528 imposed restrictions and obligations related to retainage and timing of final payment on private (non-public works) projects. It capped retainage at 5%, required prompt payment on final payments, and required owners to accept a retainage bond on private construction projects, excluding single-family residential construction less than 12 units. This year, SSB 6108 adds suppliers to the statutes (RCW 60.30.010 and 0.020) pertaining to retainage on private construction projects. Read the court decision
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Reprinted courtesy of Joshua Lane, Ahlers Cressman & Sleight PLLC
Mr. Lane may be contacted at joshua.lane@acslawyers.com

When an Insurer Proceeds as Subrogee, Defendants Should Not Assert Counterclaims Against the Insured/Subrogor

June 14, 2021 — Gus Sara - The Subrogation Strategist
In a subrogation action, one party is substituted to the rights and remedies of another with respect to a lawful claim. The substituted party (the subrogee) is legally able to pursue any right or seek any remedy that would be available to the subrogor regarding that claim. But can a defendant in a subrogation action assert any claim against the subrogee that it would have against the subrogor? In Federated Mut. Inc. Co. v. Kosciusko County, No. 3:20-CV-960, 2021 U.S. Dist. Lexis 88735, the United States District Court for the Northern District of Indiana considered whether a defendant could assert counterclaims against the insureds/subrogors in an action filed in the name of their subrogee. The court held that since the insurerds/subrogors were not a party to the action and the defendant could assert the substance of its counterclaim as a defense, the defendant could not file counterclaims against the insureds/subrogors in the insurer’s subrogation action. Kosciusko County arose from a motor vehicle accident involving a semi-tractor trailer owned by Bellman Oil Company, Inc. (Bellman) and B & B Transport, Inc. (B & B). The accident occurred on a highway in Kosciusko County in October of 2019. The accident caused the semi-tractor trailer containing ethanol fuel to roll over four times and burst into flames. Federated Mutual Insurance Company (FMIC) insured Bellman and B & B for the semi-tractor trailer and issued payments as a result of the accident. 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

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