Pennsylvania Supreme Court Reaffirms Validity of Statutory Employer Defense
March 31, 2014 —
Michelle Coburn and Michael Jervis – White and Williams LLPIn Patton v. Worthington Associates, Inc., the Pennsylvania Supreme Court reaffirmed the continuing validity of the longstanding statutory employer doctrine and related five-part test of McDonald v. Levinson Steel Co. In doing so, the court overruled the Superior Court and held that Worthington was immune from tort liability as the statutory employer of plaintiff Earl Patton.
Worthington was the general contractor for a project to construct an addition to a church. Worthington subcontracted with Patton Construction, Inc. to perform carpentry work. Earl Patton was an employee and the sole owner of Patton Construction, Inc. He was injured in a scissor lift accident while performing work on the church. Patton sued Worthington alleging failure to maintain safe conditions at the worksite. After a trial, a jury awarded Patton and his wife a little more than $1.5 million in damages.
Before trial, Worthington had moved for summary judgment arguing that it was Patton’s statutory employer and thus immune from tort liability under Pennsylvania’s Workers’ Compensation Act. Under that law, general contractors are secondarily liable for payment of workers’ compensation benefits to employees of subcontractors. Like traditional employers, statutory employers are immune from tort liability for work-related injuries in situations where they are secondarily liable for workers’ compensation payments.
Reprinted courtesy of
Michelle Coburn, White and Williams LLP and
Michael Jervis, White and Williams LLP
Ms. Coburn may be contacted at coburnm@whiteandwilliams.com; Mr. Jervis may be contacted at jervism@whiteandwilliams.com
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Of Pavement and Pandemic: Liability and Regulatory Hurdles for Taking It Outside
September 21, 2020 —
Jeff Clare - Gravel2Gavel Construction & Real Estate Law BlogAs the COVID-19 pandemic continues to ravage the U.S. economy, restaurateurs and bar owners are feeling the brunt of business closures and adaptations necessary to combat the disease. Where cozy and intimate dining was once de rigueur for the restaurant industry, these businesses must now shift to outdoor dining with adequate space and airflow between parties. In response to these concerns, many cities across the country who once fought against the loss of any parking have turned to a post-automobile tactic: outdoor dining in thoroughfares and parking lots. While at first glance it might seem a simple enough prospect—throw some chairs and a table out front, and voilà—property owners and restaurateurs must remain cognizant of various liability and regulatory hurdles for operating outside.
With Great Space Comes Great … Potential Liability.
One of the largest concerns for landowners in operating in a new space for business is liability. Who is on the hook if someone gets hurt dining in an impromptu dining space in a parking lot? Prior to beginning new outdoor dining operations, landowners and restaurateurs should contact their insurance providers to ensure that the new space is included in their insurance coverage. This is a particular concern for larger commercial landowners who may have various businesses vying to use their parking lot for business. Many leases have carefully crafted clauses limiting where a business may operate and where their liability ceases. Landowners and business owners should review their leases for any such clauses and negotiate with one another to ensure that liability in these new spaces is clearly defined.
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Jeff Clare, PillsburyMr. Clare may be contacted at
jeff.clare@pillsburylaw.com
Hurricane Laura: Implications for Insurers in Louisiana
October 19, 2020 —
Jennifer Michel & Tabitha Durbin - Lewis BrisboisJust two days before the 15th Anniversary of Hurricane Katrina, Category 4 Hurricane Laura made landfall near Cameron, Louisiana. Although the “unsurvivable” 20-foot storm surge, which had been predicted ahead of the storm, thankfully was significantly less, the impact of Laura on the Southwest Coast of Louisiana and Southeast Coast of Texas and its neighboring parishes and counties, most notably Cameron Parish, was quite severe. Lake Charles, Louisiana suffered widespread flooding and sustained catastrophic wind damage. Although the storm moved quickly, it retained its strength longer than expected such that even areas well inland sustained considerable damage. Preliminary estimates for insured losses from storm surge, flooding, and winds range from $8 to $12 billion for residential and commercial properties. Insurers providing residential or commercial property insurance in Louisiana should keep the following statutory claims handling requirements in mind.
Louisiana Statutory Provisions
Under Louisiana law, an insurer is expected to comply with certain statutory requirements in investigating and handling claims submitted by its insureds and third-party claimants. The majority of these requirements, and the consequences of their violation, are codified by La. R.S. 22:1892, which governs the payment and adjustment of claims, and La. R.S. 22:1973, which delineates an insurer’s duty of good faith. Together, the statutes impose three requirements on insurers: timely initiation of loss adjustment, timely payment of claims, and a duty of good faith and fairness in the adjustment and payment of said claims.
Reprinted courtesy of
Jennifer Michel, Lewis Brisbois and
Tabitha Durbin, Lewis Brisbois
Ms. Michel may be contacted at Jenny.Michel@lewisbrisbois.com
Ms. Durbin may be contacted at Tabitha.Durbin@lewisbrisbois.com
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How is Negotiating a Construction Contract Like Buying a Car?
March 01, 2017 —
Christopher G. Hill – Construction Law MusingsI know, you’re probably looking for a punchline, and likely thinking something along the lines of “only a construction attorney would be sitting in his office and come up with such an analogy,” but I really do think it’s a good one.
When you are buying a car, you look for priorities. Is the color what you want? Is the motor a hybrid or a v-6? Does it have Android Auto? What is the fuel mileage? All of these things may be more or less important to you. If you can get your priorities for a price that is attractive, you will likely let some other less important items, e. g. trunk space or rear seat leg room, slide and purchase the car anyway. Furthermore, you may use these minor items as negotiating points to either get one of the priorities or a lower price. Of course the dealership will want to get its priorities, likely a sale and a profit, when negotiating and will have certain items that it won’t move on just as you have terms that you won’t move on.
Much like when you walk onto the car lot, and particularly as a subcontractor looking at a contract from a general contractor, or a GC looking at the contract from the owner of a project, a construction contract presented to you is the starting point. When looking at the contract, be sure to have some non-negotiable items in mind when taking a critical eye to the terms of that contract. Some of these terms may be more or less negotiable depending on your experience with the other party to the construction contract. For instance, striking a pay if paid clause may be less important with a paying party with whom you have a 10 year history without payment problems. On the other hand, if it is your first contract with the other party, a stricter list may be required. So, much like a dealer that you know will stand behind its cars, you may be more willing to take more “risk” in entering a construction contract with a trusted/known owner or GC.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Gatluak Ramdiet Named to The National Black Lawyers’ “Top 40 Under 40” List
February 20, 2023 —
Lewis BrisboisNew York, N.Y. (February 2, 2023) - New York Associate Gatluak Ramdiet was recently named to The National Black Lawyers (NBL) “Top 40 Under 40” list.
The NBL “Top 40 Under 40” recognizes the most talented Black attorneys under the age of 40 who have an outstanding reputation among peers, the judiciary, and the public. The honorees on this list are nominated from leading lawyers, current members, and Executive Committee members.
Mr. Ramdiet is a member of Lewis Brisbois' Medical Malpractice, Healthcare, Life Sciences, General Liability, Construction, and Toxic Tort & Environmental Litigation Practices. He represents individual and institutional clients in complex and high exposure claims, with particular experience handling matters involving catastrophic injuries and serious medical conditions. As part of the New York Medical Malpractice team, he regularly represents individual healthcare providers, including physicians, physician assistants, and nurse practitioners.
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Lewis Brisbois
Florida Construction Defect Decision Part of Lengthy Evolution
August 05, 2013 —
CDJ STAFFLawyers are still working out all the implications of Florida Supreme Court’s ruling in Maronda Homes. Three members of the firm Lowndes, Drosdick, Doster, Kantor & Reed PA, Alexander Dobrev, Michael S. Provenzale, and Tara L. Tedrow on the firm’s web site. They characterize it as a “consumer-protection oriented decision,” quoting the court that the “house is the fondest dream and largest investment, both emotionally and financially, for Florida families.”
The court found that Section 553.835 of the Florida laws could not be applied to construction that occurred before the statute become effective in July, 2012. They describe the underlying issue as “the culmination of forty years of evolution to the implied warranty of habitability that is granted by the builder of a new home to the purchaser.” This lead to a 2010 District Court decision that expanded the area covered from “merely the structure itself, along with improvements ‘immediately supporting the residence’” but also those “which provide ‘essential services’ which support the home, make it habitable, or are necessary for living accommodations.”
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North Carolina Learns More Lessons From Latest Storm
October 16, 2018 —
Pam Radtke Russell - Engineering News-RecordThere’s no big wall planned to protect North Carolina’s coast from storm surge. There’s no massive tunnel system proposed to keep floodwaters away from populated areas. There are no grant-funded resilience competitions to help the state plan to manage water more effectively.
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Pam Radtke Russell, ENRMs. Russell may be contacted at
Russellp@bnpmedia.com
What Contractors Can Do to Address Rising Material Costs
August 23, 2021 —
Garret Murai - California Construction Law BlogFrom lumber to used cars to pastrami sandwiches, prices are rising. This past month, at a town hall meeting in Cincinnati, Ohio, President Biden acknowledged that inflation was increasing, responding to a question from a restaurant owner about labor shortages, “I think your business and the tourist business is really going to be in a bind for a little while.”
Although construction companies typically don’t work in the same small margins that restaurants do, labor shortages and material price increases have nevertheless impacted the construction industry. According to a recent report by Cumming, the cost of construction materials from lumber to steel to gypsum have gone up over the last 12 months, in some cases nearly double:
For contractors entering into construction contracts and those performing work under existing contracts, the increasing cost of materials and shortage of labor creates challenges, some of which can be addressed through contractual provisions and the framework of those contracts.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com