Federal Court Ruling Bolsters the “Your Work” Exclusion in Standard CGL Policies
October 27, 2016 —
Daniel E. Levin – Florida Construction Law NewsIn Evanston Insurance Company v. Dimucci Development Corportion of Ponce Inlet, Inc., the United states District Court for the Middle District of Florida further clarified the standard CGL policy exclusion (L) – the “Your Work” exclusion, one of the several business risk exclusions in a standard CGL policy which insurers and insureds are most likely to encounter in a typical construction defect claim. No. 6:15-cv-486-Orl-37DAB, 2016 U.S. Dist. LEXIS 123678, at *26 (M.D. Fla. Sep. 13, 2016).
The lawsuit between Evanston Insurance Company and DiMucci Development Corp. of Ponce Inlet Inc. (“DiMucci”) arose out of initial claims by the homeowners’ association at the Towers Grande high rise in Daytona Beach Shores, Florida, against DiMucci for various construction defect related issues. The lawsuit alleged that DiMucci’s work was defective on a portion of the high rise condominium project, which caused property damage to other elements of the building that DiMucci was also responsible for constructing. Specifically, pertinent here, the Association alleged water damage as a result of DiMucci’s improper waterproofing of the building.
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Daniel E. Levin, Cole, Scott & Kissane, P.A.Mr. Levin may be contacted at
daniel.levin@csklegal.com
Naples, Florida, Is Getting So Expensive That City Workers Can’t Afford It
April 10, 2023 —
Amanda Albright - BloombergThe city of Naples on Florida’s Gulf Coast is paradise on Earth, if you believe those slick websites that rank the best US cities to live in or retire in. But if you talk with the people who work in its hospitals, restaurants and city government, you’ll get another story. They’d like to live in Naples, too, but most of them can’t afford to.
The city of 19,000 is home to the second-richest ZIP code in the US, after Miami Beach. Median household income stood at about $125,000 in 2021, compared with about $62,000 in Florida overall, according to the Census Bureau. Naples landed on a 2022 list of least affordable places for renters compiled by the National Apartment Association.
Amid a dearth of reasonably priced housing, at least 90% of city employees live outside Naples. Job vacancies are going unfilled, leading to chronic staffing shortages. The shortfall among firefighters, police officers and other essential workers in Collier County, which includes Naples, verges on unsafe, according to one local advocate. Private-sector employers have converted a hotel into apartments for workers as a temporary fix.
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Amanda Albright, Bloomberg
Construction Defect Leads to Death of Worker
January 28, 2013 —
CDJ STAFFThe family of a Florida man has received $2.4 million in damages as a result of his death. Victor Lizarraga was killed when a steel column fell due to the anchor bolts being improperly secured. The general contractor on the project, R. L. Haines, told subcontractors that the epoxy had sufficient time to cure. An OSHA investigation determined that the epoxy was not used properly. Mr. Lizarraga worked for a subcontractor on the project.
Mr. Lizarraga and his coworkers were hired to erect steel columns. The epoxy failed, sending a 1,750-pound column down onto Mr. Lizarraga. According to the lawsuit, "due to the sudden and unexpected nature of this incident Mr. Lizarraga had no ability, opportunity or time to get out of the way of the falling column."
Other parties in the lawsuit settled with the family. R. L. Haines was the only defendant to go to a jury trial.
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“Time Is Money!” In Construction and This Is Why There Is a Liquidated Damages Provision
February 01, 2022 —
David Adelstein - Florida Construction Legal UpdatesIn construction, the adage “Time is Money!” rings true for all parties involved on a project. This includes an owner of a project that wants a project completed on time, i.e., by a substantial completion date. While substantial completion is often defined as when an owner can use a project for its intended purpose, this intended purpose typically equates to beneficial occupancy (in new construction) and other factors as identified in the contract.
The best mechanism for an owner to reinforce time and the substantial completion date is through a liquidated damages provision (also known as an LD provision) that includes a daily monetary rate for each day of delay to the substantial completion date.
A liquidated damages provision is not designed, and should NEVER be designed, to serve as a penalty because then it would be unenforceable. Instead, it should be designed to reasonably compensate an owner for delay to the substantial completion date that cannot be ascertained with any reasonable degree of certainty at the time the contract is being negotiated and executed. (Liquidated damages are MUCH easier to prove than actual damages an owner may incur down the road.) As an owner, you don’t really want to assess liquidated damages because that means the project is not substantially completed on time. And, in reality, a timely completed and performing project should always be better and more profitable than a late and underperforming project. However, without the liquidated damages provision, there isn’t a great way to hold a contractor’s feet to the fire with respect to the substantial completion date.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
The ALI Restatement – What Lies Ahead?
July 30, 2018 —
Adam M. Berardi & Sara C. Tilitz - Complex Insurance Coverage ReporterThe American Law Institute voted on May 22, 2018 to approve the final draft of its “Restatement of the Law of Liability Insurance.” This was the culmination of an eight-year project that evolved through 29 drafts resulting in a nearly 500-page final product. At least nine courts cited to the Restatement while it was still in draft form. On June 28, 2018, White and Williams LLP had the privilege of hosting a seminar about the Restatement, chaired by the Reporter for the Restatement, University of Pennsylvania Law Professor Tom Baker, and Randy Maniloff of White and Williams, author of “General Liability Insurance Coverage, Key Issues In Every State.” The seminar was geared toward assisting members of the liability insurance community in navigating the key provisions of the Restatement, including how they compare and contrast with existing case law and the role the Restatement may play in courts’ decision-making processes going forward.
Reprinted courtesy of
Adam M. Berardi , White and Williams, LLP and
Sara C. Tilitz, White and Williams, LLP
Mr. Berardi may be contacted at berardia@whiteandwilliams.com
Ms. Tilitz may be contacted at tilitzs@whiteandwilliams.com
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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.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Release Language Extended To Successor Entity But Only Covered “Known” Claims
August 06, 2019 —
David Adelstein - Florida Construction Legal UpdatesA recent case contains valuable analysis that has impact on whether a “successor” entity will be bound by a settlement agreement it was not a direct party to. This case contains arguments for contractors that can be raised in a number of different contexts if it is sued by a successor or related entity.
The same case discusses the difference between releasing a party for “known” claims without releasing the same party for “unknown” claims. This is an important distinction because unknown claims refer to latent defects so a release that only releases a party for known claims is not releasing that party for latent defects.
In MBlock Investors, LLC v. Bovis Lend Lease, Inc., 44 Fla. L. Weekly D1432d (Fla. 3d DCA 2019), an owner hired a contractor to construct a project. At completion, the owner transferred the project to an affiliated entity (collectively, the “Owner”). The contractor sued the Owner for unpaid work, the Owner claimed construction defects with the work, and a settlement was entered into that released the contractor for KNOWN claims. Thereafter, the Owner defaulted on the construction loan and agreed to convey the property through a deed in lieu of foreclosure to an entity created by the lender (the “Lender Entity”).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Town Sues over Defective Work on Sewer Lines
January 13, 2014 —
CDJ STAFFThe Handy Sanitary District in North Carolina has filed a lawsuit against one of the subcontractors on the Badin Lake Sewer Project, which the Lexington Dispatch describes as “delay riddled.” The town claims that the materials used by Hobbs, Upchurch and Associates “were not adequate for the project.” Additionally, the town claims that valves were improperly installed or damaged, and that pipes were of the incorrect type and improperly connected.
The Sanitary District Board of Commissioners has additionally settled a lawsuit over non-payment for work on the sewer project. The Handy Sanitary District has settled claims brought by Monroe Roadways Contractors and Young Construction with a payment of $250,000.
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