What to Do Before OSHA Comes Knocking
December 19, 2018 —
Parker Rains - Construction ExecutiveEvery year, the U.S. Occupational Safety and Health Administration (OSHA) inspects workplaces around the country for safety and occupational hazards. In 2017 alone, OSHA conducted 32,408 inspections – more than half of which were unprogrammed inspections.
There are six reasons OSHA might come knocking on the door. They are (in order of priority):
- imminent danger situations;
- severe injuries and illnesses;
- worker complaints;
- referrals;
- targeted inspections; and
- follow-up inspections.
Reprinted courtesy of
Parker Rains, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Mr. Rains may be contacted at
prains@fbbins.com
Background Owner of Property Cannot Be Compelled to Arbitrate Construction Defects
November 07, 2012 —
CDJ STAFFIn Truppi v. Pasco Engineering, John Quattro sued Property Management Contractors, Inc. over construction defects in William Truppi’s home. All parties are named in the suit. The California Court of Appeals ruled that Property Management Contractors, Inc. (PMCI) could not compel Mr. Quattro to arbitration.
The background of the case involves two houses built in Encinitas, California by PCMI: one for Mr. Truppi at 560 Neptune, and one for Mr. Quattro at 566 Neptune. Both contracts contained an arbitration provision. Mr. Quattro signed the contract for his residence and Mr. Truppi signed the other. Mr. Quattro then sued PCMI and its principal, William Gregory. Mr. Quattro claimed to be the true contracting party for the 560 Neptune residence and a third party beneficiary of the contract Mr. Truppi signed, and stated that PCMI was aware of this.
PCMI in a demurrer stated that Quattro “had only a ‘prospective beneficial interest in the property upon its eventual sale or lease.’” Mr. Quattro amended his complaint to account for the issues raised by PCMI. The court rejected PCMI’s demurrer to the amended complaint.
Finally, PCMI and Gregory asserted that Quattro was “not the real party in interest” and could not sue. PCMI continues to assert that Quattro lacks standing, but their attorney sent Quattro an e-mail stating, “While my client disputes that you are a party, and that you lack standing to assert the claim, to the extent you do so I believe you are obligated to proceed by way of arbitration.”
The court did not cover the issue of Quattro’s standing in the case, only if he could be compelled to arbitration. The court affirmed the lower court’s finding that Quattro could not be compelled to arbitrate the construction defect claim as neither he nor Gregory signed the contract in an individual capacity. Further, the court noted that PCMI and Gregory “denied the existence of an agreement between themselves and Quattro on the 560 contract,” and cannot compel arbitration on a non-existent agreement. And while non-signatories can, in some situations be compelled to arbitrate, the court found that “these cases are inapplicable because here they seek to have the alleged third party beneficiary (Quattro) compelled by a nonsignatory (Gregory).” The arbitration clause in question “expressly limited its application to persons or entities that signed the 560 contract.”
As Mr. Quattro was not a signatory to that agreement, the court found that he could not be held to its arbitration provision.
Read the court decisionRead the full story...Reprinted courtesy of
Court finds subcontractor responsible for defending claim
May 18, 2011 —
CDJ STAFFIn an unpublished decision, the California Fourth Appellate District Court has reversed the judgment of Judge Linda B. Quinn of the Superior Court of San Diego. In the case Inland California, Inc. v. G.A. Abell, Inland, a general contractor had subcontracted with Apache Construction and Precision Electric Company (G.A. Abell).
Apache alleged that extra demolition and drywall work was needed due to Precision’s electrical work. Inland tendered a defense of Apache’s claims. However, Precision did not provide any defense. Inland withheld payment from Precision.
At trial, Inland “conceded Precision earned the $98,000 in progress payments Inland withheld.†They were obligated to additionally pay Precision’s costs and attorney fees.
The Fourth Appellate District court has overturned this and remanded the case back to the lower court. The judges determined that Precision was obligated to defend itself against the claims raised by Apache and therefore vacated the judgment against Inland.
Read the court’s decision…
Read the court decisionRead the full story...Reprinted courtesy of
Mercury News Editorial Calls for Investigation of Bay Bridge Construction
July 01, 2014 —
Beverley BevenFlorez-CDJ STAFFEditors at the San Jose Mercury News called for investigations of the construction of the new eastern span of the Bay Bridge: “It's time for public officials, especially members of the Metropolitan Transportation Commission, state legislators and Gov. Jerry Brown, to demand thorough independent analyses.”
Problems with the $6.5 billion structure were found about nine months ago, which led to questions regarding the “integrity and maintenance costs” that were allegedly covered up by Caltrans officials. Issues raised included questions “about the strength of thousands of bolts, including at the base of the tower and the connections of the main cable; cracked welds in the suspension span; and rusting of the single cable holding up the bridge.”
The Mercury editors, however, do not show much optimism about the situation: “It's likely that, absent a political outcry, Caltrans will sign off. From the start, agency officials have failed to adequately oversee the construction and thrown public money at problems while trying to cover-up their own failures. Brown, ultimately responsible for Caltrans, has dismissed concerns about the bridge's integrity.”
Read the court decisionRead the full story...Reprinted courtesy of
If You Can’t Dazzle Em’ With Brilliance, Baffle Em’ With BS: Apprentices on Public Works Projects
October 24, 2023 —
Garret Murai - California Construction Law BlogThe “Big Four” when it comes to public works contracting on state and local projects in California are:
- Registration with the California Department of Industrial Relations (“DIR”);
- Payment of prevailing of wages and maintenance and submission of certified payroll;
- Compliance with the “skilled and trained workforce” requirements on certain projects; and
- Hiring apprentices on state and local public works projects with a value of $30,000 or more.
The next case,
GRFCO, Inc. v. Superior Court, 89 Cal.App.5th 1295 (2023), discusses the last of these requirements. The case also reminded me of W.C. Field’s old saying – “If you can’t dazzle em’ with brilliance, baffle em’ with bullshit” – and which ended with expected results.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Florida Continues Enacting Tort Reforms, This Time Shortening the Statute of Repose
May 01, 2023 —
William L. Doerler - The Subrogation StrategistOn April 13, 2023, Florida’s governor, Ron DeSantis, signed into law
SB 360 which, among other things, shortens the statute of repose period for improvements to real property. The law also revises the date on which the statute of limitations period runs for these types of damage claims. Florida’s revision of this law provides further evidence of the state’s tort reform efforts.
The new law went into effect upon signing and includes the following changes:
- Shortens the statute of repose period set forth in Fla. Stat. § 95.11(3)(c) for actions founded on the design, planning or construction of improvements to real estate from ten (10) to seven (7) years. The statute of repose period runs from the earliest (rather than the latest) of the date: a) the authority having jurisdiction issues a temporary certificate of occupancy; b) a certificate of occupancy; c) a certificate of completion; or d) of abandonment of construction if not completed. Of note, the revised repose period eliminates that date of actual possession by the owner as one of the accrual dates.
Read the court decisionRead the full story...Reprinted courtesy of
William L. Doerler, White and Williams LLPMr. Doerler may be contacted at
doerlerw@whiteandwilliams.com
Alabama Still “An Outlier” on Construction Defects
October 14, 2013 —
CDJ STAFFWhile many state Supreme Courts have determined that faulty construction work can be an occurrence under a standard commercial liability policy, the Alabama Supreme Court has taken the contrary view. Writing on the Kilpatrick Townsend blog, Carl A. Salisbury and Edmund M. Kneisel point out that the decision makes Alabama “an outlier,” and they ask, “how much longer will the outliers hold out?”
They note that in the underlying construction defect case, “the arbitrator awarded $3 million in compensatory damages to the homeowners because of improperly installed flashing; improperly installed brick; the lack of weep holes in the brick; improperly installed doors and windows; improper construction of the upper porches; faulty construction of the roof; improper installation of a bathtub.” They summarize: “the house must have leaked like a colander.”
When the insurer denied coverage, the contractor sued. The insurer argued that “the CGL policy form does not cover construction-related acts or omissions because such acts are not an insured ‘occurrence.’” Mr. Salisbury and Mr. Kneisel point out that “the Alabama Supreme Court agreed.”
The problem they see is that “if there is no insurance for any intentional act, then insurance is simply a rip-off — it covers nothing.” They quote Justice Benjamin Cardozo to this effect: “To restrict insurance to cases where liability is incurred without fault of the insured would reduce indemnity to a shadow.” Their argument is that the Alabama decision was not the “correct position,” as exemplified by recent decisions from West Virginia, North Dakota, Connecticut and Georgia. The case “was a prime opportunity for the Alabama Supreme Court to leave the ranks of the outliers and join the majority view.”
Read the court decisionRead the full story...Reprinted courtesy of
Strict Liability or Negligence? The Proper Legal Standard for Inverse Condemnation caused by Water Damage to Property
March 30, 2016 —
Charles S. Krolikowski – Newmeyer & Dillion, LLPFiling a lawsuit against a government entity can be a daunting task given the complexities of tort claims requirements and governmental immunities. A recent decision by the Court of Appeal in Pacific Shores Property Owners Association v. Department of Fish & Wildlife, Case No. C07020 (Jan. 20, 2016), provided welcome clarification as to the proper legal standard for an inverse condemnation action based upon activities of a government entity which cause water damage to private property.
Read the court decisionRead the full story...Reprinted courtesy of
Charles S. Krolikowski, Newmeyer & Dillion, LLPMr. Krolikowski may be contacted at
charles.krolikowski@ndlf.com