COLUMBUS OHIO BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Defeating the Ten-Year Statute of Repose For Latent Construction Defects

January 28, 2015 — The Porter Law Group
It is an all-too-common scenario in California construction: Nine and a half years after completion of a major California construction project, immediately before the 10-year “statute of repose” for suing on “latent” construction defects expires, a lawsuit claiming damages for “recently discovered” latent construction defects is filed. The property owner sues the contractor for the alleged defects. The direct contractor sues all its subcontractors for indemnity and defense. The attorneys spontaneously generate. Experts proliferate. Claimed defects are extrapolated. Four or five years later, after a few dozen attorneys earn a small fortune in fees, the insurance companies make payments. Attorneys collect more fees. The owners take what remains. They repair nothing... and buy vacation homes. Perhaps a cynical view, but there are many in the construction defect world who would reach a similar conclusion. The question is: How can you defeat this seemingly inevitable chain of events? Under a case known as Brisbane Lodging L.P. v. Webcor Builders, Inc. 216 Cal.App 4th 1249 (2013) there may be hope. California Code of Civil Procedure sections 337.1 and 337.15 grant a 10-year “statute of repose” for bringing claims for “latent” construction defects. These statutes allow a lawsuit for such claimed defects to be filed in court up until ten years after the project has been completed. Latent defects are generally defined as those which are “not apparent by reasonable inspection” (CCP §337.15(b)). It is extremely common for such claims to be filed immediately before this 10-year deadline expires. When the lawsuit is brought, the cash register begins to ring. Read the court decision
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Reprinted courtesy of The Porter Law Group

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Number of Occurrences Depends on Who is Sued

August 20, 2014 — Beverley BevenFlorez-CDJ STAFF
According to David L. Beck of Pillsbury Winthrop Shaw Pittman LLP (as published by Association of Corporate Counsel), an Oregon court “held that property damage incurred to a condominium project resulting from a myriad of construction defects constituted just one occurrence under the relevant excess general liability policy.” In Chartis Specialty Ins. Co. v. American Contractors Ins. Co Risk Retention Group, et al., Chartis argued that “[b]ecause there were multiple defects/conditions resulting in property damage” there were also “multiple occurrences.” However, “[t]he court disagreed, finding that despite various defects, the property damages at issue arose from just one occurrence: the developers' failure to perform its duties.” Read the court decision
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New York Court of Appeals Takes Narrow View of Labor Law Provisions in Recent Cases

July 03, 2022 — Lisa M. Rolle & Matthew Feinberg - Traub Lieberman
Since 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. Reprinted courtesy of 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 Read the court decision
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Hawaii Construction Defect Law Increased Confusion

August 27, 2013 — CDJ STAFF
Hawaii’s Act 83 put into the law that in determining if a construction defect was due to an occurrence, the courts needed to ignore any case law that arose after the insurance policy was taken out. The hope, according to Bibeka Shrestha, writing at Law360, was to provide certainty to builders. The effect, however, “further muddled the litigation landscape.” Carl Shapiro said of the Hawaii legislature that “instead of solving the problem, they’ve created an even bigger miss.” Tred Eyerly, an insurance attorney says that the state “needs a decision from the Hawaii Supreme Court.” One result is that now the state court and the federal courts have different views on how to look at prior cases. The state courts are holding that “the uncertainly should be resolved in favor of the policyholder,” while the federal courts “pointed to earlier case law that nixed coverage for these types of claims. The legislature seems unlikely to resolve this confusion on its own. One legislative liaison said that “nobody knew how to pass a law saying ‘you will grant coverage.’” Brian Yamane also told Law360 that “there has been no attempt by anybody to introducte legislation to amend the law.” Read the court decision
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Insured Entitled to Defense After Posting Medical Records Online

September 17, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The insurer had a duty to defend the insured contractor's publication of medical records online, making them accessible to anyone. Travelers Indem. Co. of Am. v. Portal Heathcare Solutions, LLC, 2014 U.S. Dist. 110987 (E.D. Va. Aug. 7, 2014). Portal specialized in safekeeping of medical records for hospitals, clinics, and other medical providers. Portal was sued in a class action suit filed in New York state court for failing to safeguard the confidential medical records of patients at Glen Falls Hospital. Two patients of Glen Falls conducted a Google search of their respective names, and found a direct link to their Glen Falls medical records. Travelers provided policies to Portal in 2012 and 2013, obligating Travelers to cover damages because of injury arising from (1) the "electronic publication of material that . . . gives unreasonable publicity to a person's private life" (the 2012 policy) or (2) the "electronic publication of material that . . . disclosed information about a person's private life" (the 2013 policy). 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

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EPA Expands Energy Star, Adds Indoor airPLUS

February 05, 2015 — Beverley BevenFlorez-CDJ STAFF
Builder Magazine reported that the EPA has added a new energy certification program, Indoor airPLUS. Builder Beazer Homes has “embraced the initiative,” according to Builder, and all of its homes in the Phoenix division is Indoor airPLUS certified. Brian Shanks, purchasing manager for Beazer, explained to builder about some of the additional requirements: “It requires some additional air-sealing techniques and other HVAC and ventilation things.” According to Builder, the indoor air quality program is designed to especially help those who suffer from respiratory issues. Read the court decision
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Contractors Liable For Their Subcontractor’s Failure To Pay Its Employees’ Wages And Benefits

November 01, 2022 — Edward O. Pacer & David J. Scriven-Young - ConsensusDocs
Recently, Illinois Governor J.B. Pritzker signed two House Bills that amend the Illinois Wage Payment & Collections Act, 820 ILCS 115 et. seq. (“Wage Act”), to provide greater protection for individuals working in the construction trades against wage theft in a defined class of projects. Pursuant to this new law, every general contractor, construction manager, or “primary contractor,” working on the projects included in the Bill’s purview will be liable for wages that have not been paid by a subcontractor or lower-tier subcontractor on any contract entered into after July 1, 2022, together with unpaid fringe benefits plus attorneys’ fees and costs that are incurred by the employee in bringing an action under the Wage Act. This new wage theft law follows several other states that have considered and passed similar legislation. These amendments to the Wage Act apply to a primary contractor engaged in “erection, construction, alteration, or repair of a building structure, or other private work.” However, there are important limitations to the amendment’s applicability. The amendment does not apply to projects under contract with state or local government, or to general contractors that are parties to a collective bargaining agreement on a project where the work is being performed. Additionally, the amendment does not apply to primary contractors who are doing work with a value of less than $20,000, or work that involves only the altering or repairing of an existing single-family dwelling or single residential unit in a multi-unit building. Reprinted courtesy of Edward O. Pacer, Peckar & Abramson, P.C. (ConsensusDocs) and David J. Scriven-Young, Peckar & Abramson, P.C. (ConsensusDocs) Mr. Pacer may be contacted at epacer@pecklaw.com Mr. Scriven-Young may be contacted at dscriven-young@pecklaw.com Read the court decision
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Application of Set-Off When a Defendant Settles in Multiparty Construction Dispute

January 05, 2017 — David Adelstein – Florida Construction Legal Updates
The defense of set-off is an important defense in construction disputes, particularly multiparty disputes. For more information on this defense, please check out this article as it explains the application of set-off in civil disputes in detail. The issue of set-off will come up in a multiparty dispute when a plaintiff settles with one or more of the defendants. The remaining defendant(s) wants the benefit of that settlement to set-off and reduce any judgment against it. An example of this scenario can be found in Escadote I Corp. v. Ocean Three Limited Partnership, 42 Fla. L. Weekly D23a (Fla. 3d DCA 2016). In this case, an owner of a condominium unit sued the condominium association, the developer, and the general contractor for water intrusion and mold infestation. The claim against the condominium association was the only claim that entitled the owner to attorney’s fees pursuant to its lawsuit (thus, attorney’s fees were isolated to only that claim against the association). During trial, the owner settled with the association. In entering a settlement, the owner smartly allocated the settlement amount such that $500 was allocated to its principal damages and $374,500 was allocated to its attorney’s fees. The owner then obtained a jury verdict against the contractor and developer for approximately $2M, jointly and severally, and the contractor and developer wanted the entire $375,000 settlement amount with the association to be set-off from the $2M verdict. The trial court set-off the entire $375,000 from the jury verdict when entering judgment. The appellate court reversed. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dma@katzbarron.com

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