Settlement Reached on Troubled Harbor Bridge in Corpus Christi, Texas
November 16, 2023 —
Daniel Tyson - Engineering News-RecordA $400-million settlement was reached between the Texas Dept. of Transportation and general contractor Flatiron/Dragados over Corpus Christi’s Harbor Bridge in mid-October. The accord ends all disagreements and damage claims concerning the cable-stayed bridge, a project halted multiple times.
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Daniel Tyson, Engineering News-Record
Mr. Tyson may be contacted at tysond@enr.com
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Draft Federal Legislation Reinforces Advice to Promptly Notify Insurers of COVID-19 Losses
April 20, 2020 —
James Hultz - Newmeyer DillionInsurers across the country are nearly universally denying claims for business interruption stemming from the COVID-19 pandemic. Those denials have in turn been met with swift litigation and potential legislative action. The first business interruption coverage lawsuit related to COVID-19 was filed in New Orleans on March 16. There are now no less than 13 such cases nationwide and many more are likely to follow. Further, legislatures in at least seven states are considering legislation that would, to varying degrees, mandate business interruption coverage for COVID-19 losses, notwithstanding any seemingly contrary policy provisions.
From the early stages of the pandemic, we have consistently advised our clients to promptly notify their insurers of all COVID-19 related losses, even where coverage appeared uncertain. The deluge of coverage litigation and contemplated legislation could drastically alter how insurers handle COVID-19 claims. But policyholders who have failed to satisfy policy notice requirements could miss out on the benefits of those changes. Therefore, policyholders would be ill-advised to sit on the sidelines and wait it out.
Now, draft Federal legislation appears to add further impetus to instructions to “tender early.” The contemplated “Pandemic Risk Insurance Act of 2020” would reportedly devote billions of dollars of federal funds through a Department of Treasury administered reinsurance program designed to offset losses sustained by insurers who actually pay business interruption losses. The legislation is still taking shape but would reportedly create “a Federal program that provides for a transparent system of shared public and private compensation for business interruption losses resulting from a pandemic or outbreak of communicable disease.” President Trump is also reportedly pressuring insurers to provide business interruption coverage. The massive influx of federal funds and pressure from the White House could encourage insurers to reconsider denials of COVID-19 business interruption claims.
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James Hultz, Newmeyer DillionMr. Hultz may be contacted at
james.hultz@ndlf.com
Type I Differing Site Conditions Claim is Not Easy to Prove
May 30, 2018 —
David Adelstein - Florida Construction Legal UpdatesA differing site condition claim will almost universally result in both a cost and time impact. There will be additional, unanticipated costs incurred. And there will likely be a delay requiring additional time to perform.
A Type I differing site condition claim is when the contractor encounters conditions at the site different than those indicated in the contract documents. That seems easy enough to prove, right. Nope. And, I mean nope! If you don’t believe me, consider the recent decision in Meridian Engineering Co. v. U.S., 885 F.3d 1351 (Fed.Cir. 2018).
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Rising Construction Disputes Require Improved Legal Finance
November 15, 2022 —
Apoorva Patel - Construction ExecutiveConstruction disputes are famously high stakes, and the industry is currently experiencing an uptick in the value and number of disputes resulting from contractual obligations and third-party or force majeure incidents. While this is not entirely surprising given COVID-19’s disruption of global markets and supply chains, the numbers are noteworthy.
For example, in 2020 alone, the International Chamber of Commerce (ICC)—the leading institution for construction disputes, partly because its clauses feature in many FIDIC standard form contracts—registered 194 construction arbitrations, and construction disputes now comprise over 20% of the ICC caseload.
In addition to the damage to business outcomes that the underlying disputes may present, parties can quickly spend many millions on legal fees and expenses, as well as technical experts and consultants, if and when those disputes progress through the courts or arbitration. According to Norton Rose’s 2020 Global Construction Disputes Report, the average construction dispute value rose sharply from $30.7 million in 2019 to $54.26 million in 2020.
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Apoorva Patel, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Lien Actions Versus Lien Foreclosure Actions
June 02, 2016 —
David R. Cook Jr. – AHHC Construction Law BlogThe lawsuits required to perfect and foreclose upon a lien have confused lien claimants and their attorneys for years. This confusion was recently demonstrated in a recent case entitled Founders Kitchen and Bath, Inc. v. Alexander, No. A15A1262, 2015 WL 6875026 (Ga. App. 2015).
In the case, the trial court granted an owner’s motion for summary judgment against a subcontractor that sought to foreclose on its materialman’s lien. In deciding to reverse the trial court’s decision, the Court held that issues of material fact still existed as to whether the owner and subcontractor were in privity of contract.
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David R. Cook Jr., Autry, Hanrahan, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
Contract Not So Clear in South Carolina Construction Defect Case
November 07, 2012 —
CDJ STAFFThe South Carolina Court of Appeals has reversed a partial summary judgment issued by one of the lower courts in the case of The Retreat at Edisto Co-Owners Association v. The Retreat at Edisto. The underlying issues of the case deal with a construction defect complaint.
The lower court had concluded “Developer’s ‘First Amendment’ to the Master Deed required the Developer to satisfy the provision in the paragraph labeled ‘Master Deed Amendment or Phase II’ as a condition precedent to its election to proceed with the development of Phase II.”
The appeals court found that “the language of the First Amendment to the Master Deed is susceptible to more than one interpretation.” The court additionally concluded that the “Developer presented the requisite scintilla of evidence on the question of its intent in order to establish a genuine issue of material fact. As the material facts were in dispute, the appeals court reversed the summary judgment and remanded the case to the circuit court for further proceedings.
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California Contractor Spills Coffee on Himself by Failing to Stay Mechanics Lien Action While Pursuing Arbitration
August 14, 2018 —
Garret Murai - California Construction Law BlogIt bugs the Mrs. that I have a habit of reading the directions. “Just plug the darn thing in!” said the Mrs. when we got a new coffee maker to replace our old one which we’ve had since I think before we were married (Life Lesson No. 347: Get a coffee maker you really, really like because they last forever). “But . . . the directions?,” I said.
By the time I had finished reading the instruction manual I could smell the coffee brewing in the kitchen. Granted, the Mrs. is more practical than I am in many ways (e.g., “You know, you didn’t need to buy 10 cans of corn to get the 10 for $10 discount. I guess you’re going to be eating a lot of corn”). But still. What might have happened if there was a serious coffee mishap?
And worrier as I may be mishaps can happen if you don’t read the directions. James Zenovic didn’t read the directions, and here’s his story . . .
Von Becelaere Ventures, LLC v. Zenovic
In Von Becelaere Ventures, LLC v. Zenovic, Case No. D072620 (June 6, 2018), James Zeonovic doing business as James Zeonovic Construction entered into a construction contract to build a single-family house for Von Becelaere Ventures, LLC in Laguna Beach, California. The construction contract included an arbitration provision that stated:
If any dispute arises concerning this Contract or the interpretation thereof, of concerning construction of the Improvements, or the Limited Warranty, customer service, defects, damages, or obligations therewith (a “Construction Dispute”), such Construction Dispute will be settled by binding arbitration. Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
President Trump Nullifies “Volks Rule” Regarding Occupational Safety and Health Administration (OSHA) Recordkeeping Requirements
April 13, 2017 —
Louis “Dutch” Schotemeyer – Newmeyer & Dillion LLPOSHA requires employers to maintain safety records for a period of five years. The Occupational Safety and Health Act contains a six month statute of limitations for OSHA to issue citations to employers for violations. In an effort to close the gap between the five years employers are required to keep records and the six month citation window, the Obama Administration implemented the “Volks Rule,” making recordkeeping requirements a “continuing obligation” for employers and effectively extending the statute of limitations for violations of recordkeeping requirements from six months to five years.
On March 22, 2017, the Senate approved a House Joint Resolution (H.J. Res. 83) nullifying the “Volks Rule” and limiting the statute of limitations to six months for recordkeeping violations. President Trump signed the resolution nullifying the “Volks Rule” on April 3, 2017. The nullification appears to be in line with President Trump’s stated goal of generally eliminating governmental regulations.
What Does This Mean for California Employers?
California manages its own OSHA program, which generally follows the federal program, but is not always in lock-step with Federal OSHA. Cal/OSHA, under its current rules, may only cite employers for recordkeeping violations that occurred during the six months preceding an inspection or review of those records. To date, there has been no indication that California’s Division of Occupational Safety and Health (DOSH) has plans to adopt the “Volks Rule.” Barring a change, California employers will continue to operate under the status quo and be required to maintain safety records for five years, but will only be exposed to citations for recordkeeping violations occurring within the last six months.
Current Cal/OSHA Recordkeeping Requirements
Cal/OSHA form 300 (also known as the “OSHA Log 300”) is used to record information about every work-related death and most work-related injuries that cannot be treated with onsite first aid (specific requirements can be found in the California Code of Regulations, Title 8, Sections 14300 through 14300.48). Currently, California Code of Regulations, Title 8, Section 14300.33 requires employers to retain OSHA Log 300 for a period of five years following the end of the calendar year during which the record was created, despite the fact that Cal/OSHA can only cite employers for failing to maintain such records for up to six months preceding an inspection.
Looking to the Future
Cal/OSHA is working on regulations that would require electronic submission of OSHA Log 300 records in California. This would bring Cal/OSHA more in line with Federal OSHA, which already requires electronic submission.
About Newmeyer & Dillion
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Louis "Dutch" Schotemeyer, Newmeyer & Dillion LLPMr. Schotemeyer may be contacted at
dutch.schotemeyer@ndlf.com