Number of Occurrences Is On the Agenda at This Year's ICLC Seminar
February 05, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThis year's Insurance Coverage Litigation Committee's CLE Seminar will be conducted in Tucson, Arizona, from March 4-7, 2015. Each year, the conference offers informative, cutting-edge sessions on a variety of insurance-related topics. Participants from across the country with varying perspectives on insurance coverage, including lawyers, judges, risk managers, and insurance professionals, will be attendance. The seminar's brochure is attached
here.
"Number of Occurrences" will be the topic my panel presents on March 7. We will be honored to have on our panel Alaska Supreme Court Justice Peter Maassen, my old skiing and running buddy from my Alaska days. Justice Maassen's opinion in United Servs. Auto. Ass'n. v. Neary, 307 P.3d 907 (Alaska 2013) was the genesis for our topic.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
California Homeowners Can Release Future, Unknown Claims Against Builders
June 10, 2015 —
Edward A. Jaeger, Jr. and William L. Doerler – White and Williams LLPIn Belasco v. Wells, 183 Cal. Rptr.3d 840, 234 Cal. App. 4th 409 (2015), the California Court of Appeals for the Second District addressed the question of whether a homeowner, when settling an administrative complaint against a licensed homebuilder, can release future, unknown claims. Despite the presence of a California statute, Cal. Civ. Code § 1542, stating that a general release does not extend to claims that the releasor does not know about, the court held that the homeowner’s express release of future claims was enforceable. Thus, the homeowner’s release - signed as part of a 2006 settlement of the homeowner’s construction defect claims against the defendant, a homebuilder - barred the homeowner’s 2012 claims against the builder based on latent defects in the roof of the home that the homeowner discovered in 2011.
Background
The plaintiff, David Belasco, a patent attorney, bought a newly-constructed home from the defendant-builder, Gary Wells, in 2004. Wells holds a Class B General Building Contractor license issued by the Contractors State License Board (the Board). In 2006, Belasco filed a complaint against Wells with the Board based on alleged construction defects in the home.
As a result of Belasco’s complaint to the Board, the parties engaged in arbitration. At the arbitration, both parties were represented by counsel. Wells offered to settle the dispute for the sum of $25,000 and Belasco accepted Wells’ offer.
Reprinted courtesy of
Edward A. Jaeger, Jr., White and Williams LLP and
William L. Doerler, White and Williams LLP
Mr. Jaeger may be contacted at jaegere@whiteandwilliams.com; Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com
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Construction Slow to Begin in Superstorm Sandy Cases
March 12, 2014 —
Beverley BevenFlorez-CDJ STAFFU.S. Senator Robert Mendendez of New Jersey, “has called on government officials to speed up the way home rebuilding aid is reaching thousands of New Jersey victims of Superstorm Sandy,” according to CBS New York. Mendendez stated that out of the 12,000 people who have received “preliminary approval for aid” under New Jersey’s “Reconstruction, Elevation and Mitigation program,” only “2,700 have been told they can begin construction.” The storm occurred more than sixteen months ago.
“Part of the problem,” Mendendez told CBS New York, “has been that state officials have placed federally required environmental and historic preservation reviews at the end of the lengthy aid application process. That delays rebuilding because federal rules allow reconstruction work to begin once those reviews are completed.”
CBS New York reported that the state announced that those “using their own contractors to rebuild homes can request 50 percent of their grant in advance under the change, which went into effect Monday.”
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Best Practices After Receiving Notice of a Construction Claim
July 18, 2022 —
Lauren Meadows - Construction ExecutiveBeing served with a lawsuit is typically not a welcomed experience. However, a construction professional that has been proactive in an early investigation of the claim will be better equipped to defend the case. The following best practices should be used by construction professionals as soon as a potential claim becomes evident.
Notify
Immediately after the receipt of a claim or notice of an incident, efforts should be made to notify all essential parties. This includes any potential insurers that may provide coverage for the claim as well as any parties to whom notice may be required or warranted under the project contract and/or scope of work. Some construction contracts contain an insurance clause that requires one party to provide additional insured coverage under its liability policy to another party. Notice should be given to any insurer that potentially provides additional insured coverage as soon as possible. The failure to provide an insurance company with prompt notice of a potential claim could result in the denial of the claim.
Reprinted courtesy of
Lauren Meadows, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Is a Text a Writing?
June 10, 2024 —
Michael Yelle - Ahlers Cressman & Sleight PLLCIs a text message a writing? Project communication is constantly evolving, and text messages are an increasingly common way teams share pictures, video, and provide project updates. When texting is part of the communication flow on a project, contractors and owners might text approvals for extra work, notices of changed conditions, or other information that could be a basis for a change order.
In a text exchange about a compensable event, the notice, reply, and approval are all saved on the phone. But contracts often contain specific requirements for a contractor or subcontractor to request changes and authorization to proceed may be specifically required in writing.
For example, the Associated General Contractors of Washington – 2018 Standard Subcontract says the “Subcontractor shall make no claims for extras unless the same shall be agreed upon
in writing by Contractor prior to performance of any such extra work.” (emphasis added).
The AGC subcontract doesn’t define “writing,” so the subcontractor and contractor might wonder if a text message exchange about a potentially compensable event was an “agreement in writing.”
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Michael Yelle, Ahlers Cressman & Sleight PLLCMr. Yelle may be contacted at
michael.yelle@acslawyers.com
No Coverage for Contractor's Faulty Workmanship
July 10, 2018 —
Tred R. Eyerly - Insurance Law HawaiiThe Kentucky Supreme Court determined there was no coverage for the contractor's faulty workmanship in digging the existing basement of a building to make it deeper. Martin v. Acuity, 2018 Ky. LEXIS 188 (Ky. April 26, 2018).
Martin Elias/Properties, LLC (MEP) purchased an older home to renovate and resell for profit. MEP hired Tony Gosney to renovate and expand the basement. Gosney agreed to dig the existing basement deeper, pour new footers and pour a new concrete floor. While performing his work, Gosney failed to support the existing foundation adequately before digging around it. Within days, the old foundation began to crack and eventually the entire structure began to sag. Gosney stopped work and notified his insurer, Acuity.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Colorado Senate Bill 15-177: This Year’s Attempt at Reasonable Construction Defect Reform
February 18, 2015 —
Zach McLeroy – Colorado Construction LitigationOn February 10, 2015, Senators Scheffer and Ulibarri introduced Senate Bill 15-177, which is sponsored in the House by Representatives DelGrosso and Singer. SB 15-177 amends the prerequisites, found in the Colorado Common Interest Ownership Act (“CCIOA”), for an association to file a construction defect action. The bill has been assigned to the Senate Committee on Business, Labor, and Technology but not yet scheduled for hearing.
The major points of the bill include: 1) enforcement of a mediation or arbitration provision contained in the original governing documents of a common interest community, even if subsequently amended or removed; 2) the addition of a requirement that mediation take place before a construction defect action can be filed; 3) heightened requirements that an association board provide advanced notice to all unit owners, together with a disclosure of projected costs, duration, and financial impact of the construction defect claim; 4) the addition of a requirement that the board obtain the written consent of a majority of the owners of units, and; 5) a requirement that prior to the purchase and sale of a property in a common interest community, the purchaser receive notice that binding arbitration may be required for certain disputes.
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Zach McLeroy, Higgins, Hopkins, McLain & Roswell, LLCMr. McLeroy may be contacted at
mcleroy@hhmrlaw.com
Court Throws Wet Blanket On Prime Contractor's Attorneys' Fees Request In Prompt Payment Case
September 03, 2015 —
Steven M. Cvitanovic & Abigail E. Lighthart – Haight Brown & Bonesteel LLPPrompt payment penalty cases do not come around very often, but when they do, there is bound to be fireworks.
In James L. Harris Painting & Decorating, Inc. v. West Bay Builders, Inc., et al. (No. C072169, filed 8/27/15), the California Court of Appeal for the Third Appellate District upheld the trial court's discretion to not award prevailing party attorneys' fees to the party who won a prompt payment dispute. California Business and Professions Code §7108.5 and Public Contract Code §§7107 and 10262 are the mechanisms for obtaining prompt payment relief in California. As shown by the outcome, it is possible to win and lose at the same time.
West Bay Builders, Inc. (“West Bay”) was the prime contractor on a school construction project for Stockton Unified School District. West Bay entered into a subcontract agreement with James L. Harris Painting & Decorating, Inc. (“Harris”) on the project. During construction there were disagreements between West Bay and Harris regarding the contractual scope of work, and Harris performed work it believed was outside the contract, believing it would be paid for the additional work. After West Bay refused to pay for the additional work, Harris left the project, and West Bay hired another subcontractor to complete the work.
Reprinted courtesy of
Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and
Abigail E. Lighthart, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com
Ms. Lighthart may be contacted at alighthart@hbblaw.com
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