Contractual Waiver of Consequential Damages
January 02, 2019 —
David Adelstein - Florida Construction Legal UpdatesContractual waivers of consequential damages are important, whether they are mutual or one-sided. I believe in specificity in that the types of consequential damages that are waived should be detailed in the waiver of consequential damages provision. Standard form construction agreements provide a good template of the types of consequential damages that the parties are agreeing to waive.
But, what if there is no specificity in the waiver of consequential damages provision? What if the provision just states that the parties mutually agree to waive consequential damages or that one party waives consequential-type damages against the other party? Let me tell you what would happen. The plaintiff will argue that the damages it seeks are general damages and are NOT waived by the waiver of consequential damages provision. The defendant, on the other hand, will argue that the damages are consequential in nature and, therefore, contractually waived. FOR THIS REASON, PARTIES NEED TO APPRECIATE WHAT DAMAGES ARE BEING WAIVED OR LIMITED, AND POTENTIALLY THOSE DAMAGES NOT BEING WAIVED OR LIMITED, WHEN AGREEING TO A WAIVER OF CONSEQUENTIAL DAMAGES PROVISION!
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Construction Recovery Still Soft in New Hampshire
May 10, 2013 —
CDJ STAFFThe latest building news out of New Hampshire is somewhat mixed. Yes, there has been an increase of seventeen percent in the value of future residential construction on the state. But that’s not enough to offset the general slide in the value of future construction overall. The New Hampshire Business Review reports that the state saw a four percent drop in the cost of planned construction, comparing March 2012 to March 2013.
The total value of the drop was shared between the twelve percent drop in nonresidential construction and the fifty-two percent drop in infrastructure building, each of which were more than $4 million less than in the prior year. The rise in residential construction could not make up the loss in other areas.
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Real Estate & Construction News Round-Up (03/01/23) – Mass Timber, IIJA Funding, and Distressed Real Estate
March 13, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogThis week’s round-up explores how Infrastructure Investment and Jobs Act (IIJA) funding is being deployed, mass timber is on the rise as decarbonization efforts continue, and commercial real estate remains distressed.
- With a flurry of high-profile projects, mass timber is gaining traction. (Jeffrey Steele, Commercial Property Executive)
- Commercial real estate is experiencing high levels of distress, with multiple owners defaulting on loans across the country. (Ted Glanzer, The Real Deal)
- Even with the recent downturn in cryptocurrency value, the metaverse real estate market is expected to continue to grow. (The Real Deal)
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Pillsbury's Construction & Real Estate Law Team
New Hampshire’s Statute of Repose for Improvements to Real Property Does Not Apply to Product Manufacturers
April 22, 2019 —
Gus Sara - The Subrogation StrategistIn United Services Automobile Association v. Broan-Nutone, LLC, No. 218 2017 CV 01113, [1] the Superior Court of Rockingham County, New Hampshire recently considered whether the eight-year statute of repose for improvements to real property applied to the manufacturer of a ceiling ventilation fan that was installed in the property during its original construction. The court held that New Hampshire’s statute of repose did not apply to the manufacturer because it was not involved in incorporating its product into the property.
In 2012, Chad St. Francis purchased a home in Northwood, New Hampshire. The home was originally constructed in 2008, at which time a Broan-Nutone ceiling ventilation fan was installed in the first-floor bathroom. In 2016, a fire occurred at the home. United Services Automobile Association (USAA) provided property casualty insurance for the home and paid Mr. St. Francis for the damage. In 2017, USAA filed a subrogation lawsuit against Broan-Nutone, alleging that its ceiling fan caused the fire due to a design defect within the product. Broan-Nutone filed a motion for summary judgment on grounds that USAA’s action was barred by New Hampshire’s statute of repose for improvements to real property.
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Gus Sara, White and Williams LLPMr. Sara may be contacted at
sarag@whiteandwilliams.com
CISA Clarifies – Construction is Part of Critical Infrastructure Activities
April 20, 2020 —
Brenda Radmacher & Ernest Isola - Gordon & Rees Construction Law BlogAfter ongoing confusion by many over whether construction should be considered part of the “essential business,” during the COVID-19 pandemic, the Cybersecurity and Infrastructure Security Agency (CISA) issued an updated Coronavirus Guidance for America on March 28, 2020 to clarify construction’s critical role in supporting essential infrastructure. CISA’s initial advisory list referenced construction in regard to some areas such as energy and wastewater treatment, but it was unclear as to the whole of the construction industry. CISA’s update clarified that construction activities are included in its list of essential critical infrastructure workers. This new federal guidance should remove the ambiguity that led to varying responses by state and local officials halting some construction. The guidance clarifies that construction and related activities – including the manufacture and supply/delivery of supplies and equipment, permitting, safety, and inspections of projects – are covered as part of the critical infrastructure and economic activities.
The ongoing challenge will be for construction activities to proceed in a way that protects workers and the general public from the spread of coronavirus. However, contractors are always resourceful and have been implementing safety measures effectively on projects with an unwavering commitment to safety and are ready to meet this challenge. In addition to following the guidance from the CDC, we recommend that contractors implement a comprehensive safety program for their employees as well as for all parties that come onto the jobsite. It is critical that contractors have clear a clear plan for communications with their teams to ensure compliance with the CDC recommendations. This should include what has recently become standard protocol or social distancing, not hosting large group meetings and conducting meetings online or via conference call, maintaining a six-foot distance between people, discouraging hand-shaking or other contact, not sharing tools, and sanitizing reusable PPE. Contractors also should also be sure to place safety posters about “How to Protect Yourself” where they can be readily seen and encourage staying home when sick, cough and sneeze etiquette, and hand hygiene at the entrance of a jobsite. We also recommend heightened site security including interviewing anyone coming to the jobsite.
Reprinted courtesy of
Brenda Radmacher, Gordon & Rees and
Ernest Isola, Gordon & Rees
Ms. Radmacher may be contacted at bradmacher@grsm.com
Mr. Isola may be contacted at eisola@grsm.com
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Although Property Damage Arises From An Occurrence, Coverage Barred By Business Risk Exclusions
July 08, 2011 —
Tred R. Eyerly - Insurance Law HawaiiThe homeowners hired the insured to raise the structure of their home twenty-four inches above the flood zone. Lafayette Ins. Co. v. Peerboom, 2011 U.S. Dist. LEXIS 58985 (S.D. Miss. June 2, 2011). When the insured’s crew returned from lunch one day, they found the house had fallen from hydraulic jacks being used to raise the structure a few inches at a time. There was substantial damage to the entire structure.
The homeowners sued, asserting several claims, including negligence and breach of contract. The complaint alleged the homeowners entered a contract with the insured to raise their structure while maintaining its integrity. However, the insured failed to use proper equipment, which caused the house to fall and be completely destroyed.
The insured tendered the claim to its insurer, Lafayette Insurance Company. Lafayette defended under a reservation of rights and filed suit for a declaratory judgment. Lafayette’s subsequent motion for summary judgment contended there was no “occurrence” alleged in the underlying complaint and, even if there was, the business risk exclusions barred coverage.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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Subcontractor Not Liable for Defending Contractor in Construction Defect Case
February 10, 2012 —
CDJ STAFFThe California Court of Appeals has ruled on January 9, 2012 in Hensel Phelps Construction Company v. Urata & Sons Cement, upholding the judgment of the lower court.
Hensel Phelps was the general contractor for a high-rise in Sacramento. They were sued by the owners of the building after problems were discovered in the concrete slabs of the building’s parking garage. Instead of welded steel wire mesh, the slabs had been constructed with fiber mesh. Hensel Phelps filed a cross-complaint against Urata Cement, the subcontractor that had performed the cement work. Urata refused to defend Hensel Phelps. The owners’ case was subsequently dismissed due to the statute of limitations.
Although the original case was over, Hensel Phelps continued in their claims against Urata. “Urata argued that a handwritten interlineation required Hensel Phelps to prove Urata was at fault for the injury alleged in the building owners’ complaint before Urata was obliged to defend Hensel Phelps in that action.”
The lower court concluded that Urata would have been obligated to defend Hensel Phelps if the owners’ lawsuit had alleged that the damage was due to the subcontractor’s work or if evidence at trial established this. The lower court found neither of these true. Instead, the use of the fiber mesh was a design issue and “that decision was outside the scope of the subcontractor’s work.”
During the trial, Hensel Phelps conceded that Urata was not at fault. The appeals court could find no reading of the contract that would cause Urata to be obligated to defend Hensel Phelps, calling Hensel Phelps’s reading of the contact as “grammatically infeasible.”
Judges Nicholson, Raye, and Butz upheld the decision of the lower court and awarded costs on appeal to Urata.
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Best Lawyers Recognizes Hundreds of Lewis Brisbois Attorneys, Honors Four Partners as ‘Lawyers of the Year’
September 19, 2022 —
Lewis Brisbois(August 18, 2022) - Best Lawyers has selected 149 Lewis Brisbois attorneys across 46 offices for inclusion in its list of 2023 Best Lawyers in America. It has also recognized four Lewis Brisbois partners on its "Lawyers of the Year" list: Chairman & Founding Partner Robert F. Lewis (Insurance Law); Portland Managing Partner Eric J. Neiman (Litigation - Health Care); Akron Managing Partner David Kern (Tax Law); and Roanoke Partner Paul C. Kuhnel (Medical Malpractice Law - Defendants).
Please join us in congratulating these four partners and the following attorneys on their Best Lawyers recognition.
- Nashville Partner Tara Aaron-Stelluto:
Copyright Law
- Pittsburgh Partner Andrew F. Adomitis:
Mass Tort Litigation / Class Actions - Defendants
- Fort Lauderdale Partner Vincent F. Alexander:
Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law
- Miami Partner Seth Alhadeff:
Litigation - Insurance
- Seattle Partner Randy J. Aliment:
Commercial Litigation
- Phoenix Partner Dina Anagnopoulos:
Medical Malpractice Law - Defendants
- Madison County Partner Charles S. Anderson:
Mass Tort Litigation / Class Actions – Defendants
- Reno Managing Partner Jack G. Angaran:
Insurance Law, Litigation – Construction, Litigation - Real Estate
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Lewis Brisbois