Columbus Ohio Building Expert Directory

Construction Litigation Roundup: “It’s None of Your Business.”

May 22, 2023 — Daniel Lund III - Lexology
“It’s none of your business.” So said a construction surety resisting discovery of its underwriting file in the context of the surety’s affirmative $2 million indemnity claim (on a $25M bond), and a Missouri federal court agreed. In response to the surety’s indemnity suit, the defaulted principal contractor and additional corporate indemnitors offered up defenses of “lack of consideration and the doctrine of unclean hands, laches, waiver and/or estoppel, among others.” The indemnitors also issued written discovery to the surety seeking to obtain the surety’s underwriting file – which would reveal the underpinnings of the surety’s decision to issue the bond to the contractor – asserting “that the underwriting and due diligence documents are relevant to the[] lack of consideration defense. [Indemnitors] claim that ‘[t]his defense is based on Defendants' belief that Plaintiff did not conduct any reasonable inquiry into any Defendants' ability to pay or financial resources and therefore Plaintiff did not rely on the financial condition of each Defendant in determining whether to issue the bonds.’" Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

New Highway for Olympics Cuts off Village near Sochi, Russia

February 07, 2014 — Beverley BevenFlorez-CDJ STAFF
A new highway costing $635 million was built in Sochi, Russia to support this month’s Winter Olympic Games—but the “shining” highway has cut off residents of the Village of Akhtyr, according to The Spokesman-Review. The online publication reports that while the Olympics will showcase the “luxury malls, sleek stadiums and high-speed train links, thousands of ordinary people in the Sochi area put up with squalor and environmental waste: villagers living next to an illegal dump filled with Olympic construction waste, families whose homes are sinking into the earth, city dwellers suffering chronic power cuts despite promises to improve electricity.” One of the Sochi residents told KPAX News that what was once a “15-minute walk to get the bus to work has become a two-hour, cross-country trek. Military guards block their way to the rickety footbridge they used to use.” Furthermore, KPAX News claimed, “Heavy construction and traffic have chewed up the road through town and turned it into a dust bowl.” Read the full story at The Spokesman-Review... Read the full story at KPAX News... Read the court decision
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How Long does a Florida Condo Association Have to File a Construction Defect Claim?

September 17, 2014 — Beverley BevenFlorez-CDJ STAFF
According to a post on Orlando Sentinel’s HOA & Condo Blog, sponsored by the firm Becker & Poliakoff, generally a Condominium Association has “4 years from turnover of control of the Condominium Association from the developer” to file a lawsuit for construction defects. However, the association may have additional time to file. If defects from the original construction were discovered after the 4 years have lapsed, “[a] condominium association may still pursue a claim for latent defects,” which is one that “is hidden, and not discovered despite the exercise of due diligence, for the period of 4 years from turnover.” The Statute of Repose in Florida is “10 years from the date the building received its original Certificate of Occupancy.” Read the court decision
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Intricacies of Business Interruption Claim Considered

January 07, 2015 — Tred R. Eyerly – Insurance Law Hawaii
Reaching into the weeds to analyze a business interruption claim, the Massachusetts Court of Appeals determined the cost of ordinary payroll could be included in the calculation of net profit or loss in determining business loss income when business is resumed quickly after a fire. Verrill Farms, LLC v. Farm Family Cas. Ins. Co., 2014 Mass. App. LEXIS 145 (Mass. App. Ct. Nov. 4, 2014). The insured suffered a fire loss at its farm store. Within two days, the business was reopened at alternate locations at reduced capacity. Within a month, the business had resumed nearly full capacity in temporary locations. No employees were laid off. This allowed the insured to maintain its business and generate income. The insured submitted a claim for loss of business income, based on its loss of net income in the year after the fire. The insurer paid a sum considerably less than the claim based upon its interpretation of what expenses could be included in a calculation of net profit or loss in order to determine loss of business income. The trial court held that the insurer did not have to pay the cost of ordinary payroll beyond the sixty-day limit, and granted summary judgment in the insurer's favor. 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

California Supreme Court Rights the “Occurrence” Ship: Unintended Harm Resulting from Intentional Conduct Triggers Coverage Under Liability Insurance Policy

June 13, 2018 — Scott S. Thomas - Payne & Fears Legal Alert
SUMMARY In a ruling that bodes well for policyholders, the California Supreme Court provides much-needed clarity on the question of when a so-called "intentional act" may give rise to insurance coverage under a liability insurance policy. In Liberty Surplus Insurance Corp. v. Ledesma & Meyer Construction Co., Case No. S23765 (Cal. June 4, 2018), the Court holds that an employer's potential liability for negligent hiring, after its employee allegedly abused a 13-year old student, is the result of an "occurrence" and is thus covered under the employer's liability insurance policy. COURT OPINION The court's opinion dispels the misguided notion that an intentional act resulting in unintended harm is never an "occurrence" and can never trigger coverage. What matters, according to the Court, is that, from the insured's point of view, the consequences of its conduct are "unexpected, unforeseen, or undesigned" - even if the conduct is intentional. And in a concurring opinion, Justice Liu rightfully questions the legitimacy of the notion that intentional conduct cannot trigger coverage, even when it produces an unintended result, unless, in the words of a 1989 appellate court decision, some "additional, unexpected, independent, and unforeseen happening occurs that produces the damage." As Justice Liu explains, this intervening "happening" may be something as simple as the insured's mistaken belief that he was acting in self-defense, or that the victim had consented to the insured's conduct. This much-needed clarification restores vitality to the fundamental principle that injuries are "accidental" when they are "unexpected, unforeseen, or undesigned," regardless of their cause. Read the court decision
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Reprinted courtesy of Scott S. Thomas, Payne & Fears
Mr. Thomas may be contacted at sst@paynefears.com

Lightstone Committing $2 Billion to Hotel Projects

February 26, 2015 — Nadja Brandt – Bloomberg
(Bloomberg) -- David Lichtenstein, whose real estate company owned Extended Stay Hotels when the chain went bankrupt, is committing $2 billion to developing and investing in lodging properties. Lightstone Group is choosing “top-branded” select-service properties, those with limited amenities, in proven U.S. markets for its projects, Lichtenstein said in an interview. As part of the strategy, Lightstone has teamed up with Marriott International Inc. to build five Moxy hotels in New York -- four in Manhattan and one in Brooklyn. The “micro” lodgings, with high-tech features and smaller-than-average rooms, are geared toward younger travelers. Read the court decision
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Reprinted courtesy of Nadja Brandt, Bloomberg
Ms. Brandt may be contacted at nbrandt@bloomberg.net

Going Digital in 2019: The Latest Technology for a Bright Future in Construction

February 18, 2019 — Jim Romeo - Construction Executive
The spectrum of technology available to today’s contractors is wide and deep. This techno-ecosystem will change just about every operational tick and tock needed to build world-class projects—from where and how people work to what equipment they use and how they record payments. “Generally speaking, the use of technology in construction is surging, particularly in the past three to five years,” says Chris Amato, principal and national advisory leader for the Chicago-based management consultancy Grant Thornton. “It’s becoming the cost of doing business; every player, at some point or another, is going to need to embrace it to some degree. The key questions are where to start, where to invest and how to minimize risk.” Reprinted courtesy of Jim Romeo, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Traub Lieberman Attorneys Burks Smith and Katie Keller Win Daubert Motion Excluding Plaintiff’s Expert’s Testimony in the Middle District of Florida

September 20, 2021 — Burks A. Smith, III & Kathryn Keller - Traub Lieberman
Traub Lieberman Partner, Burks Smith, and Associate, Katie Keller, represented a national property insurer in a breach of contract action brought by a homeowner in the Middle District of Florida for substantial property damage alleged to have been caused by hail and wind. Throughout the course of litigation, the homeowner disclosed his expert, which is the same individual that prepared the homeowner’s estimate of damages and causation report. The expert’s credentials list that he is a general contractor, independent adjuster, and inspector. Mr. Smith and Ms. Keller moved under Daubert v. Merrell Dow Pharm., Inc., 509 U.S. 579 (1993) and Federal Rule of Evidence 702 to exclude testimony and introduction of any evidence prepared by the homeowner’s expert. Mr. Smith and Ms. Keller argued that the homeowner’s expert was not qualified to render expert testimony in this case, as he did not have the requisite qualifications to render an expert opinion, the methodology utilized by the expert to form his opinion was not sufficiently reliable, and his anticipated testimony was not helpful in the case, as it is imprecise and unspecific. Therefore, the expert’s opinions did not meet the standards for admission of expert testimony as set forth in Daubert v. Merrell Dow Pharm., Inc., 509 U.S. 579 (1993), and should not be admitted as expert testimony at trial. Reprinted courtesy of Burks A. Smith, III, Traub Lieberman and Kathryn Keller, Traub Lieberman Mr. Smith may be contacted at bsmith@tlsslaw.com Ms. Keller may be contacted at kkeller@tlsslaw.com Read the court decision
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