No Choice between Homeowner Protection and Bankrupt Developers?
February 10, 2012 —
CDJ STAFFDonna DiMaggio Berger, writing in the Sun Sentinel argues those may be the only current choices in Florida. A recent court case, Lakeview Reserve HOA v. Maronda Homes has caused a swift response from the legislators. Ms. Berger notes that the construction defect bill, HB 1013, “would take away a homeowner’s rights to pursue a developer for defects to the driveways, roads, sidewalks, utilities, drainage areas and other so-called ‘off-site’ improvements.” The alternative? She notes that applying the Maronda decision would “bankrupt developers who don’t build defect-free roads and sidewalks.”
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Insured's Claim for Replacement Cost Denied
December 02, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe Illinois Appellate Court affirmed the trial court's ruling that the insured was only entitled to the actual cost value of his loss, not the replacement cost. Lytle v. Country Mutual Ins. Co., 2015 Ill. App. LEXIS 756 (Sept. 30, 2015).
The insured's home was built around 1903. On June 21, 2011, the insured discovered damage to his home because of a severe storm. He made a claim with his insurer, Country Mutual.
The policy contained a depreciation holdback provision. The provision said the insurer would not pay more than the actual cash value until the actual repair or replacement was complete. If the insured elected to accept actual cash value, he would have one year from the date of the loss to repair or replace the damaged property and request the difference between the actual cash value and the replacement cost.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
As California Faces Mandatory Water Use Reductions How Will the Construction Industry be Impacted?
May 07, 2015 —
Garret Murai – California Construction Law BlogEarlier this month, Governor Jerry Brown issued Executive Order B-29-15, which imposes mandatory water use reductions for the first time in the history of California.
The Executive Order, issued as the state enters its fourth year of severe to exceptional drought, directs the State Water Resources Control Board (“State Water Board”) to impose a 25% reduction on the state’s 400 local water supply agencies which serve 90% of California residents, over the coming year.
The State Water Board has already issued proposed regulations based on informal comments received from the public, and in a “Fact Sheet” issued this weekend, has indicated that it is seeking additional informal comments no later than April 22, 2015, with final proposed emergency regulations to be released on April 28, 2015, which will then be considered by the State Water Board at its meetings on May 5 and 6, 2015.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Lost Productivity or Inefficiency Claim Can Be Challenging to Prove
May 02, 2022 —
David Adelstein - Florida Construction Legal UpdatesOne of the most challenging claims to prove is a lost productivity or inefficiency claim. There is an alluring appeal to these claims because there are oftentimes intriguing facts and high damages. But the allure of the presentation of the claim does not compensate for the actual burden of proof in proving the lost productivity or inefficiency claim, which will require an expert. And they really are challenging to prove.
Don’t take it from me. A recent Federal Claims Court opinion, Nova Group/Tutor-Saliba v. U.S., 2022 WL 815826, (Fed.Cl. 2022), that I also discussed in the preceding
article, exemplifies this point.
To determine lost productivity or inefficiency, the claimant’s expert tried three different methodologies.
First, the expert looked at industry standard lost productivity factors such as those promulgated by the Mechanical Contractor’s Association. However, the claimant was not a mechanical contractor and there is a bunch of subjectivity involved when using these factors. The expert decided not to use such industry standard factors correctly noting they provide value when you are looking at a potential impact prospectively, but once you incur actual damages and have real data, it is not an accurate measure.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
2017 California Employment Law Update
January 13, 2017 —
Evelin Y. Bailey - California Construction Law BlogBelow are some of the new laws going into effect this year that affect the construction industry. Unless otherwise noted, the laws go into effect on January 1, 2017.
Public Works and Prevailing Wages
You can read more about the new laws—AB 326, AB 1926 and SB 954—relating to public works and prevailing wages in an earlier blog post.
Employment Contracts
Choice of Forum and Choice of Law. Under SB 1241, an employer cannot require an employee who primarily works and resides in California to agree to file a lawsuit or bring a claim in another state when the claim arises in California. This is usually referred to as the choice of forum clause.
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Evelin Y. Bailey, Wendel Rosen Black & Dean LLP Ms. Bailey may be contacted at
ebailey@wendel.com
The Dangers of an Unlicensed Contractor from Every Angle
January 11, 2021 —
William L. Porter - Porter Law GroupThe State of California requires that contractors in the building trades be licensed. Individuals and business entities obtain their contractors licenses by demonstrating to the California Contractors State License Board that they have the requisite knowledge, skill, and experience to be licensed. The CSLB issues licenses to those meeting requirements. As a construction attorney of longstanding tenure, I have witnessed the impact of unlicensed building contractors from every point of view. If you are considering hiring an unlicensed contractor, acting as an unlicensed contractor or even working for an unlicensed contractor as an employee, please consider the following perils:
To the Owner Considering Hiring an Unlicensed Contractor:
On the positive side for owners considering hiring an unlicensed contractor, the general rule in California is that an owner can escape the obligation to pay an unlicensed contractor for work performed and materials supplied because unlicensed contractors are prohibited from bringing legal actions against owners for payment. The law even goes so far as to allow the Owner to bring a legal action against the unlicensed Contractor for reimbursement of anything the owner paid to the unlicensed contractor. This is done through a “disgorgement” action (see, Business and Professions Code 7031. See also, the following article: Disgorgement Article). Despite this, there are a great many negative potential consequences to be considered by any owner who might consider hiring an unlicensed contractor. Among them are the following:
- If you are considering not paying your unlicensed contractor because Business and Professions Code 7031 allows it, please consider that unlicensed contractors, who have clearly demonstrated a disinclination to follow legal obligations in the first place, may resort to “less than socially acceptable” means of exacting retribution against those who do not pay them or who demand the return of money paid through a disgorgement action I am sorry to say this. Let us leave it at that.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
New York Court of Appeals Takes Narrow View of Labor Law Provisions in Recent Cases
July 03, 2022 —
Lisa M. Rolle & Matthew Feinberg - Traub LiebermanSince the end of March, the New York State Court of Appeals has issued decisions in favor of the defense concerning New York Labor Law §240 and §241. These pro-defendant decisions take a narrow view of the scope of the Labor Law provisions. However, while it remains to be seen how the Court’s below will apply the Court of Appeal’s reasoning, these recent decisions are beneficial for the defense bar going forward.
In Toussaint v Port Auth. of N.Y. & N.J March 22, 2022 N.Y. LEXIS 391 | 2022 NY Slip Op 01955 | 2022 WL 837579, the Court held that 12 NYCRR 23-9.9 (a), does not set forth a concrete specification sufficient to give rise to a non-delegable duty under Labor Law § 241 (6). In Toussaint Plaintiff, who was an employee of Skanska USA Civil Northeast, Inc., brought the lawsuit against the Port Authority asserting claims under Labor Law § 200 (1) and Labor Law § 241 (6) after he was struck by a power buggy while operating a rebar-bending machine at the World Trade Center Transportation Hub construction site owned by the Port Authority of New York and New Jersey. Power buggies are small, self-operated vehicles used to move materials on construction sites. On the day of the accident, a trained and properly designated operator drove the buggy into the area near the plaintiff's workstation. That vehicle operator got off the vehicle, but short time thereafter, another worker—who was not designated or trained to do so—drove the buggy a short while prior to losing control and striking plaintiff. Plaintiff relied upon 12 NYCRR 23-9.9(a) which states that “[no person other than a trained and competent operator designated by the employer shall operate a power buggy.” In rejecting plaintiff’s argument the Court held that the "trained and competent operator" requirement is general, as it lacks a specific requirement or standard of conduct.
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Lisa M. Rolle, Traub Lieberman and
Matthew Feinberg, Traub Lieberman
Ms. Rolle may be contacted at lrolle@tlsslaw.com
Mr. Feinberg may be contacted at mfeinberg@tlsslaw.com
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The End of Eroding Limits Policies in Nevada is Just the Beginning
August 28, 2023 —
Payne & Fears LLPOn June 3, 2023, Nevada Gov. Joe Lombardo signed into law
AB 398 (the Act) which modifies the Nevada insurance code by restricting the types of liability policies that can be offered in the state.
The End of Eroding Limits Policies in Nevada
First, the Act prohibits liability insurers from issuing “eroding limits” or “burning limits” policies. These are insurance policies under which defense costs decrease policy limits. Most professional liability policies are eroding limits policies. As of Oct. 1, 2023, insurers in Nevada may no longer issue or renew any policy where policy limits are eroded by defense costs.
This change may result in higher premiums on these types of policies to compensate for the higher payouts they will now have to provide in Nevada.
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Payne & Fears LLP