Property Owner Found Liable for Injuries to Worker of Unlicensed Contractor, Again
September 17, 2018 —
Garret Murai - California Construction Law BlogIt’s not like we didn’t warn you.
In Jones v. Sorenson, Case No. C084870 (August 2, 2018), homeowner Danita Sorenson discovered to her chagrin that she had unwittingly become the employer of Mary Jones, who had been hired by Odette Miranda doing business as Designs by Leo to trim some trees, and was liable for Jones’ injuries when Jones fell off a ladder provided by Miranda. “How can this be?” you might ask. The reason, as it turns out, is simple.
Miranda was required to hold a Class D-49 Tree Service Contractor’s license in order to contract with Sorenson to trim her trees, and because Miranda did not hold that license (or, for that matter, any contractor’s license), Sorenson automatically was deemed the employer of Jones under Labor Code Section 2750.5 and, therefore, liable for her injuries.
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Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Insurer’s Duty to Indemnify Not Ripe Until Underlying Lawsuit Against Insured Resolved
February 03, 2020 —
David Adelstein - Florida Construction Legal UpdatesA liability insurer has two duties: 1) the duty to defend its insured; and 2) the duty to indemnify its insured.
With respect to the second duty – the duty to indemnify – this duty is typically “not ripe for adjudication unless and until the insured or putative insured has been held liable in the underlying action.” Hartford Fire Ins Co. v. Beazer Homes, LLC, 2019 WL 5596237, *2 (M.D.Fla. 2019) (internal quotation omitted).
For instance, Beazer Homes involved an insurance coverage dispute stemming from construction defects. An owner sued its general contractor for construction defects relating to stucco problems. The general contractor paid for the repairs. The general contractor then sued its stucco subcontractor to recover the costs it incurred. The subcontractor tendered the defense of the lawsuit to its commercial general liability insurer which is defending its insured-subcontractor under the commonly issued reservation of rights.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
The General Assembly Adds Some Clarity to Contracts and Unlicensed Contractors
March 28, 2018 —
Christopher G. Hill – Construction Law MusingsFor years, the statute regarding performing construction without a valid license (
Va. Code 54.1-1115) was a bit murky. While that statute listed several prohibited acts, among them contracting without the proper class of license or use of the license of another, the consequences of such activity, in particular the effect that such action would have on the enforcement of a construction contract (Section C of the statute), were less than clear.
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Christopher G. Hill, The Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
All Aboard! COVID-19 Securities Suit Sets Sail, Implicates D&O Insurance
April 27, 2020 —
Lorelie S. Masters, Michael S. Levine & Geoffrey B. Fehling - Hunton Insurance Recovery BlogIn a prior post, we predicted that novel coronavirus (COVID-19) risks could implicate D&O and similar management liability coverage arising from so-called “event-driven” litigation, a new kind of securities class action that relies on specific adverse events, rather than fraudulent financial disclosures or accounting issues, as the catalyst for targeting both companies and their directors and officers for the resulting drop in stock price. It appears that ship has sailed, so to speak, as Kevin LaCroix at D&O Diary reported over the weekend that a plaintiff shareholder had filed a securities class action lawsuit against Norwegian Cruise Line Holdings, Ltd. alleging that the company employed misleading sales tactics related to the outbreak.
The lawsuit alleges that the cruise line made false and misleading statements or failed to disclose in its securities filings sales tactics by the company that purported to provide customers with unproven or blatantly false statements about COVID-19 to entice customers to purchase cruises. Those allegations rely on two news articles reporting on the company sales practices in the wake of COVID-19: a March 11, 2020 Miami New Times article quoting leaked emails in which a cruise employee reportedly asked sales staff to lie to customers about COVID-19 to protect the company’s bookings; and a March 12, 2020 Washington Post article entitled, “Norwegian Cruise Line Managers Urged Salespeople to Spread Falsehoods about Coronavirus.” The lawsuit alleges that the company’s share price was cut nearly in half following these disclosures.
Reprinted courtesy of Hunton Andrews Kurth attorneys
Lorelie S. Masters,
Michael S. Levine and
Geoffrey B. Fehling
Ms. Masters may be contacted at lmasters@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Fehling may be contacted at gfehling@HuntonAK.com
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Design Immunity Defense Gets Special Treatment on Summary Judgment
March 29, 2021 —
Garret Murai - California Construction Law BlogThis may be one that is more for the lawyers than it is for the contractors or owners.
If you’ve ever filed a motion for summary judgment or summary adjudication you know the standard is clear. You’re going to lose if the court finds a disputed issue of material fact. In other words, since summary judgment or summary adjudication is such an extreme remedy – you win without having to go to trial after all – the standard is pretty high. Thus, if there’s a dispute as to a material fact (was the light green or was it red?) it’s enough that the court will deny your motion.
That is, unless you’re seeking summary judgment or adjudication on a design immunity defense as the next case, Menges v. Department of Transportation, Case No. G057643 (December 24, 2020), reveals.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
CA Supreme Court: Right to Repair Act (SB 800) is the Exclusive Remedy for Residential Construction Defect Claims – So Now What?
January 31, 2018 —
Steven M. Cvitanovic & Omar Parra - Publications & InsightsA torrent of alerts have been flooding e-mail inboxes regarding the California Supreme Court’s decision in
McMillin v. Superior Court, to reverse the Liberty Mutual Insurance Company v. Brookfield Crystal Cove LLC (2013) case, but with little discussion about the practical effects of the ruling. This alert will discuss how this ruling affects litigation of SB 800 Claims and Builders.
Background on Liberty Mutual Case
In 2002, the California Legislature enacted comprehensive construction defect litigation reform referred to as the Right to Repair Act (the “Act”). Among other things, the Act establishes standards for residential dwellings, and creates a prelitigation process that allows builders an opportunity to cure the construction defects before being sued. Since its enactment, however, the Act’s application has been up for debate. Most notably, in
Liberty Mutual Insurance Company v. Brookfield Crystal Cove LLC (2013), the California Court of Appeal for the Fourth District held the Act was the exclusive remedy only in instances where the defects caused only economic loss, and that homeowners could pursue other remedies in situations where the defects caused actual property damage or personal injuries.
Reprinted courtesy of
Steve Cvitanovic, Haight Brown & Bonesteel LLP and
Omar Parra, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com
Mr. Parra may be contacted at oparra@hbblaw.com
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From Singapore to Rio Green Buildings Keep Tropical Tenants Cool
June 07, 2021 —
Andrew Janes & Shawna Kwan - BloombergOn a typically hot and humid afternoon in Singapore, a fresh breeze blows beneath the canopy of the South Beach development, keeping temperatures several degrees cooler than on the surrounding streets.
The rippling 280-meter (919 feet) wave of steel-and-aluminum runs the length of the Norman Foster-designed complex, funneling prevailing winds over outdoor patrons of restaurants and bars and saving on air conditioning for the mixed-use complex. The canopy is covered with solar panels and catches rainwater to irrigate the gardens.
Offices and apartment blocks designed to be green are springing up all over the world as architects reverse almost a century of trying to insulate workers from nature and instead try to adapt structures to their natural surroundings. The change is being driven by stricter building codes, a desire to cut energy costs and, in particular, demands from corporations and startups that need to show shareholders and customers they are meeting environmental standards.
Reprinted courtesy of
Andrew Janes, Bloomberg and
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Deescalating Hyper Escalation
July 05, 2023 —
Paul F. Williamson - Construction Executive Recent years have seen the construction industry get hit by a perfect storm of rising costs, workforce shortages, delivery delays, supply-chain issues, inflation, interest-rate hikes and materials price escalation. The cost of construction has become more expensive, leaving all parties to grapple with the sufficiency of their risk-management strategies and the ramifications of contracts that are ill-equipped to deal with unprecedented cost increases. Of particular concern to industry participants are the volatile price fluctuations that construction materials have undergone and how to appropriately mitigate the risks they present.
Although owners, general contractors and subcontractors may seek to mitigate future risks, many who are party to an existing contract all too often must scramble to divine how to absorb significantly more financial risk than they expected pre-pandemic. Contracts that were bid and entered into prior to the pandemic may have seen, in some instances, double- and triple-digit percent increases in prices due to hyper escalation, with little recourse to address such situations. While parties to private contracts are free to mitigate their risk through contract negotiations, parties to federal or state public procurements are somewhat more constrained.
Reprinted courtesy of
Paul F. Williamson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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