Cambridge Massachusetts Building Expert Directory

It’s All a Matter of [Statutory] Construction: Supreme Court Narrowly Interprets the Good Faith Dispute Exception to Prompt Payment Requirements in United Riggers & Erectors, Inc. v. Coast Iron & Steel Co.

May 30, 2018 — Erinn Contreras & Joy O. Siu - Sheppard Mullin Construction & Infrastructure Law Blog
On May 14, 2018, the California Supreme Court issued its opinion in United Riggers & Erectors, Inc. v. Coast Iron & Steel Co., No. S231549, slip. op. (Cal. Sup. Ct. May 14, 2018). In it, the Court narrowly construed the “good faith” exception to the general rule that a direct contractor must make retention payments to its subcontractors within 10 days of receiving any retention payment. The exception provides that “[i]f a good faith dispute exists between the direct contractor and a subcontractor, the direct contractor may withhold from the retention to the subcontractor an amount not in excess of 150 percent of the estimated value of the disputed amount.” Cal. Civ. Code section 8814(c). Reprinted courtesy of Erinn Contreras, Sheppard Mullin and Joy O. Siu, Sheppard Mullin Ms. Contreras may be contacted at econtreras@sheppardmullin.com Ms. Siu may be contacted at jsiu@sheppardmullin.com Read the court decision
Read the full story...
Reprinted courtesy of

Texas Supreme Court Holds Stipulated Extrinsic Evidence May Be Considered in Determining Duty to Defend

May 10, 2022 — Tred R. Eyerly - Insurance Law Hawaii
Responding to certified questions from the Fifth Circuit, the Texas Supreme Court held that in limited circumstances, extrinsic evidence may be considered in determining the duty to defend. Monroe Guar. Ins. Co. v. Bitco Gen. Ins. Corp., 2022 Tex. LEXIS 148 (Tex. Feb. 11, 2022). The two insurers each provided CGL coverage to the insured, 5D Drilling & Pump Service, Inc., at different times. BIitco provided two consecutive one-year CGL policies covering October 2013 to October 2015. Monroe's CGL policy covered 5D from October 2015 to October 2016. 5D was sued by David Jones for breach of contract and negligence, seeking damage allegedly resulting from 5D's drilling operations on Jones's property. Jones contracted with 5D in the summer of 2014 to drill a 3600-foot irrigation well on his farmland. The complaint did not detail when 5D's purportedly negligent acts occurred or even when 5D began or stopped the work. Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

2016 California Construction Law Upate

December 10, 2015 — Garret Murai – California Construction Law Blog
The California State Legislature saw the introduction of 2,297 bills during the first half of the 2015-2016 legislative session of which 1,010 bills were signed into law. For contractors, the bill (now law), having the most immediate effect is SB 467, which increases the license bond amount required of all contractors from $12,500 to $15,000. In addition to licensing changes, 2015 saw the enactment of a number of bills providing for alternative project delivery methods from design-build, to CM at risk, to public-private partnerships, and even the expanded use of enhanced infrastructure financing districts as the state enters its fourth year since the abolishment of redevelopment agencies. Read the court decision
Read the full story...
Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

No Subrogation, Contribution Rights for Carrier Defending Construction Defect Claim

December 23, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The Court held that the insurer defending the additional insured general contractor had no right to equitable subrogation or equitable contribution from a separate carrier who also insured the general contractor as an additional insured. Old Republic Gen. Ins. Co. v. Amerisure Ins. Co., 2023 U.S. Dist. LEXIS 170293 (N.D. Ill. Sept. 25, 2023). Tanger Grand Rapids, LLC hired Rockford Construction Company to build the Tanger Outlet Center. Rockford subcontracted with Kamminga & Roodvoeis, Inc. (K&R) to work on the pavement for the outlet mall. Under the subcontract, K&R agreed to maintain primary commercial general liability insurance for itself, with Rockford as an additionial insured. K&R obtained a policy from Amerisure. For additional paving work, Rockford subcontracted with Michigan Paving & Materials, CP. The subcontract also required Michigan Paving to maintain primary coverage, with Rockford as an additional insured. Michigan Paving obtained a policy from Liberty Mutual. Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Insurer Beware: Failure to Defend Ends with Hefty Verdict

June 01, 2011 — Douglas Reiser, Builders Council Blog

Served with a lawsuit that you turned over to your insurer? Insurer refusing to defend you? Well, find some hope in this news. Washington’s IFCA has the claws to ensure that insurers perform their duties.

Contractors heavily rely on the defense provisions of their Commercial General Liability (CGL) policies. In construction, a legal dispute can easily rear its head when you least expect it. Luckily, Washington registered contractors are required to maintain CGL insurance. That insurance often provides contractors with adequate legal defense in the event that they are sued.

But, what if your insurer turns down the defense request? They might be staring at massive damages. A current Reiser Legal client, Australia Unlimited, Inc., recently won a large verdict against Hartford Insurance, after the insurer unreasonably denied their claim. The firm who represented Australia Unlimited Inc. in that case, Hackett Beecher and Hart, were successful in procuring a $5.43 Million verdict

Read the full story…

Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

Read the court decision
Read the full story...
Reprinted courtesy of

Contractor's Agreement to Perform Does Not Preclude Coverage Under Contractual Liability Exclusion

January 31, 2014 — Tred R. Eyerly – Insurance Law Hawaii
In a much anticipated decision, the Texas Supreme Court ruled that a general contractor who agrees to perform its work in a good and workmanlike manner does not "assume liability" for damages arising out of its defective work so as to trigger the Contractual Liability Exclusion. Ewing Constr. Co., Inc. v. Amerisure Ins. Co., 2014 Tex. LEXIS 39 (Tex. Jan.17, 2014). Ewing signed an agreement with the School District to serve as general contractor to renovate and build additions to a school, including tennis courts. After construction was completed, the tennis courts started flaking, crumbling, and cracking. The School District filed suit, alleging breach of contract and negligence. Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Lump Sum Subcontract? Perhaps Not.

August 20, 2019 — David Adelstein - Florida Construction Legal Updates
Lump sum subcontract? Perhaps not due to a recent ruling where the trial court said “No!” based on the language in the subcontract and contract documents generally incorporated into the subcontract. This is a ruling on an interpretation of a subcontract and contract documents incorporated into the subcontract that I do not agree with and struggle to fully comprehend. The issue was whether the subcontract amount was a lump sum or subject to an audit, adjustment, and definitization based on actual costs incurred. Of course, the subcontractor (or any person in any business) is not just interested in recouping actual costs, but there needs to be a margin to cover profit and home office overhead that does not get factored into field general conditions. In United States v. Travelers Casualty and Surety Company, 2018 WL 6571234 (M.D.Fla. 2018), a prime contractor was hired to perform work on a federal project. During the work, the Government issued the prime contractor a Modification that had a not-to-exceed value and required the prime contractor to track its costs for this Modification separate from other contract costs. In other words, based on this Modification, the prime contractor was paid its costs up to a maximum amount and the prime contractor would separately cost-code and track the costs for this work differently than other work it was performing under the prime contract. Read the court decision
Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

ADA Compliance Checklist For Your Business

February 06, 2019 — Danielle Carter - Bremer Whyte Brown & O'Meara LLP
The Americans with Disabilities Act (ADA) protects people with disabilities against discrimination in three important settings: 1. Employment (ADA Title I) 2. Government Services and Public Transportation (ADA Title II) 3. Commercial Facilities and Places of Public Accommodation (ADA Title III) Since business owners typically act as both employers and facility managers, they must pay careful attention to Title I and Title III of the ADA. A business owner’s ADA compliance checklist should include the following: 1. ADA Compliance Audit for Structural Accessibility. The ADA and its accompanying regulations set forth detailed legal standards and requirements for accessible design, which specify, for example, the minimum width of doors to conference rooms, the maximum height of public drinking fountains, and the maximum thickness of hallway carpeting. Many older buildings were built without features that accommodate people with disabilities, such that the ADA may require improvements to be made to existing facilities. Read the court decision
Read the full story...
Reprinted courtesy of Danielle Carter, Bremer Whyte Brown & O'Meara LLP
Ms. Carter may be contacted at info@bremerwhyte.com

CAMBRIDGE MASSACHUSETTS BUILDING EXPERT DIRECTORY AND CAPABILITIES