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The G2G Year in Review: 2019

February 03, 2020 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
As we kick off the new decade, we wanted to share the top five most-read articles of 2019 from Gravel2Gavel. The most-read blog posts covered 2019 real estate and construction industry trends ranging from affordable housing to the new State Bill 35 (SB 35) to sustainability in modern real estate. Our posts provided deep insight and detailed case studies, and summarized hot topics that addressed the legal implications and exciting disruptions that are affecting the industry. We hope you enjoy the roundup:

Assessing SB 35—Success or Failure? by Robert Howard, Alexander Walker and Matt Olhausen Robert, Alex and Matt examined the newly implemented SB 35 and highlighted real examples of SB 35 in action.
Update Your California Release Provisions to Include Amended Section 1542 Language by William S. Hale, P.E. Bill Hale encouraged readers to update their California release provisions to include Amended Section 1542 Language, which ensures that the releasing party is consciously releasing both known and unknown claims that may be later discovered.

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Hirers Must Affirmatively Exercise Retained Control to be Liable Under Hooker Exception to Privette Doctrine

September 12, 2023 — Garret Murai - California Construction Law Blog
Don’t drink and drive people. I mean seriously. It’s been over 40 years since California native Candace Lightner formed Mothers Against Drunk Driving in 1980 after her 13-year-old daughter, Candace, was killed by a drunk driver who later served just 9 months in jail before getting out and getting into his sixth (yes, sixth) drunk driving accident. It hurts the victims and their families, makes a mess for the offender (and their family), and, as the next case, Marin v. Department of Transportation, 88 Cal.App.5th 529 (2023), illustrates, can needlessly draw out the pain as the victim’s family seeks financial recourse for their emotional loss from others. Miguel Angel Rodriguez De La Cruz, a highway construction worker, was killed by a drunk driver. I’m not sure what his family did on the legal front after his death – perhaps sued the drunk driver – but among possible others they sued the California Department of Transportation. And they lost. Although there is no such thing as “winning” and “losing” in these types cases. It’s just losing and losing. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Eastern District of Pennsylvania Confirms Carrier Owes No Duty to Defend Against Claims for Faulty Workmanship

April 05, 2021 — Anthony L. Miscioscia & Marianne Bradley - White and Williams LLP
On March 17, 2021, the Eastern District of Pennsylvania issued its decision in Estate Chimney & Fireplace v. IFG Companies & Burlington Insurance Company, 2021 U.S. Dist. LEXIS 50360 (E.D. Pa. March 17, 2021), finding that an insurance carrier had no duty to defend its insured where the allegations in the underlying litigation involved claims of faulty workmanship. Estates Chimney & Fireplace, LLC (Estates Chimney) had performed inspections and replaced chase covers for a number of chimneys in a condominium complex. Chase covers are pieces of metal, which are placed over chimneys in order to keep out environmental elements. Several condominium owners sued Estates Chimney, alleging that Estates Chimney had improperly installed, then improperly replaced, their chimney caps, which caused their chimneys to cease working properly. As a result, the underlying plaintiffs allegedly incurred costs to repair or replace the chimney caps and chimneys. Estates Chimney sought coverage from its carrier, who denied coverage based upon its determination that the claims in the underlying lawsuits arose out of faulty workmanship, which did not result in damage to the property of a third party. Estates Chimney filed a declaratory judgment action, seeking a declaration that it was entitled to coverage under the policy. Both parties moved for summary judgment, and the Eastern District ruled in favor of the carrier. Reprinted courtesy of Anthony L. Miscioscia, White and Williams LLP and Marianne Bradley, White and Williams LLP Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com Ms. Bradley may be contacted at bradleym@whiteandwilliams.com Read the court decision
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VOSH Jumps Into the Employee Misclassification Pool

February 23, 2016 — Christopher G. Hill – Construction Law Musings
The proper classification of workers by construction companies has been on the radar of the Department of Labor for both the US and Virginia governments for quite a while. While most of the misclassification is innocent and not done to create issues, there have been enough instances of purposeful misclassification of certain workers as independent contractors (thus avoiding workers comp and other payroll expenses) that innocent contractors have born the brunt of these issues through increased payroll costs over those that misclassify (in the form of necessarily higher bids, higher overhead, etc.). As an additional deterrent to improper classification of workers, the Virginia Department of Labor and Industry has issued guidelines for what will occur in Virginia Department of Safety and Health (VOSH) cases. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Year and a Half Old Las Vegas VA Emergency Room Gets Rebuilt

March 07, 2014 — Beverley BevenFlorez-CDJ STAFF
Less than two years have passed since the billion dollar Las Vegas VA Medical Center construction was completed, and “earthmovers have begun churning the site again, this time to expand the hospital’s emergency room because the existing one is inadequate,” according to the Las Vegas Review-Journal. The new emergency room project is estimated to cost $16 million. The current emergency room’s design is flawed. “VA officials this week couldn’t explain why the ambulance parking area was designed to be roughly 50 yards from the emergency room’s south entrance, a distance that adds critical seconds to a lifesaving situation,” reported the Las Vegas Review-Journal. Furthermore, VA officials did not confirm “who drew up the flawed design” or who “was responsible for checking the blueprints.” The Las Vegas Review-Journal also reported that another reason for the expansion is that the current emergency room is too small. A VA spokesman had told the journal that “the emergency room ‘was built based on the workload and the funding that was available at the time,’” yet the journal pointed out that “the number of potential veterans projected to use the center” has remained constant. Read the court decision
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California Supreme Court Adopts “Vertical Exhaustion” in the Long-Storied Montrose Environmental Coverage Litigation

June 08, 2020 — Gregory S. Capps & Michael E. DiFebbo - White and Williams LLP
On April 6, 2020, the California Supreme Court issued a decision that held a policyholder is entitled to access available excess coverage under any excess policy once it has exhausted directly underlying excess policies for the same policy period in Montrose Chemical Corporation v. the Superior Court of Los Angeles County, Supreme Court of California, case number S244737. In its unanimous decision adopting this “vertical exhaustion” requirement, the court rejected the “horizontal exhaustion” rule urged by the policyholder’s excess insurers, under which the policyholder would have been able to access an excess policy only after it had exhausted other policies with lower attachment points from every policy period in which the environmental damage resulting in liability occurred. In 1990, Montrose sought coverage under primary policies and multiple layers of excess policies issued for periods from 1961 through 1985 for environmental damage liabilities arising from its production of insecticide in the Los Angeles area between 1947 and 1982. The ongoing dispute currently arises out of Montrose’s Fifth Amended Complaint which was filed in 2015 seeking declarations concerning exhaustion and the manner in which Montrose may allocate its liabilities across the policies. Each of the excess policies at issue contained a requirement of exhaustion of underlying coverage. The various policies described the applicable underlying coverage in four main ways: (1) some policies contained a schedule of underlying insurance listing all of the underlying policies in the same policy period by insurer name, policy number, and dollar amount; (2) some policies referenced a specific dollar amount of underlying insurance in the same policy period and a schedule of underlying insurance on file with the insurer; (3) some policies referenced a specific dollar amount of underlying insurance in the same policy period and identified one or more of the underlying insurers; and (4) some policies referenced a specific dollar amount of underlying insurance that corresponds with the combined limits of the underlying policies in that policy period. The excess policies also provided, in various ways, that “other insurance” must be exhausted before the excess policy can be accessed. Reprinted courtesy of Gregory S. Capps, White and Williams LLP and Michael E. DiFebbo, White and Williams LLP Mr. Capps may be contacted at cappsg@whiteandwilliams.com Mr. DiFebbo may be contacted at difebbom@whiteandwilliams.com Read the court decision
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Connecticut Reverses Course for Construction Managers on School Projects

August 05, 2024 — Anand Gupta - Construction Law Zone Blog
On June 6, 2024, Connecticut Governor Ned Lamont signed into law Public Act 24-151 (H.B. 5524) (Bill 5524). Bill 5524 authorized and adjusted bonds of the state and provisions related to state and municipal tax administration, as well as addressed school building projects. Notably, Bill 5524 removed the ban on construction managers self-performing work on public school construction projects, effective July 1, 2024. Allowing construction managers to self-perform certain portions of the work, such as general trades, subject to the standard bidding requirements, is a common industry practice that, theoretically, reduces total project costs by reducing the amount of subcontracted work. However, proponents of banning self-performance argue that construction managers have too much information to bid fairly and competitively. Reprinted courtesy of Anand Gupta, Robinson+Cole Mr. Gupta may be contacted at agupta@rc.com Read the full story... Read the court decision
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Lessons Learned from Implementing Infrastructure BIM in Helsinki

February 07, 2018 — Aarni Heiskanen – AEC Business Blog
Finland’s capital is currently experiencing a construction boom. Old industrial citadels are turning into residential areas with new commercial centers. Consequently, Helsinki needs to build new infrastructure. To improve the efficiency and quality of infrastructure construction, the city has started using BIM, and is now learning how to get the most value from it. Ville Alajoki, Team Leader in Helsinki’s Urban Development Division, is a keen proponent of BIM. “Infrastructure construction is still in its early stages when it comes to using BIM. For the most part, BIM implementation has not been systematic in our city yet. We tend to use it in our own structural design and often in building construction. However, in infrastructure project management, its active individuals who have set the pace,” Ville admits. He believes that the city’s strategy for 2017–2021 will spur the use of new technologies, including BIM. “Helsinki aims to be the city in the world that makes the best use of digitalization,” Mayor Jan Vapaavuori has declared. A good start, but there’s room for improvement. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business Blog
Mr. Heiskanen may be contacted at info@aepartners.fi

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