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Construction Law Client Advisory: What The Recent Beacon Decision Means For Developers And General Contractors

August 20, 2014 — Steven M. Cvitanovic and Whitney L. Stefko - Haight Brown & Bonesteel LLP
On July 3, 2014, the California Supreme Court (the “Court”) came out with its decision in Beacon Residential Community Association v. Skidmore, Owings & Merrill, et al. The Beacon decision settled a long-standing dispute in California about whether design professionals such as architects and engineers owe a duty to non-client third parties. In finding that the plaintiffs in Beacon could state a claim against the architects of the Beacon project, the Court also sowed the seeds of change in the way contracts are structured between developers, architects, engineers, and even general contractors. So, how will Beacon change the landscape for developers and general contractors? It is important to understand the factual background in Beacon to predict how the decision may alter the playing field. For a detailed analysis of the Amicus briefs in the Beacon matter from the AIA, the CBIA, and the Consumer Attorneys of California, please click here. The Beacon case arose from a common development model in California: a developer conceives a multi-unit project, maps the project as a condo development but rents as apartments. Shortly after completion of the Beacon project, the developer sold the entire project and the new owner finalized the existing condominium map and placed the units on the market as condominiums. Although the architects always knew they had designed a residential structure, the project ultimately became a condominium development. The newly formed homeowners’ association filed a construction defect suit against the developers, general contractor, the subcontractors and the architects for design and construction defects. Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and Whitney L. Stefko, Haight Brown & Bonesteel LLP Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Ms. Stefko may be contacted at wstefko@hbblaw.com Read the court decision
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Idaho Business Review Names VF Law Attorney Brittaney Bones Women of the Year Honoree

July 31, 2023 — VF Law
Meridian, Idaho: June 23, 2023 – VF Law, a full-service law firm with offices across the Pacific Northwest and the Southwest, is pleased to announce that associate Brittaney Bones has been recognized as an honoree for the 2023 Idaho Business Review Women of the Year Awards. The distinguished recognition celebrates 50 female leaders across Idaho who have made their mark while continuing to pave the path of leaders for the future. When reviewing the applications, the judges considered excellence in leadership and a willingness to advance mentorship opportunities among the other considerations. In her work with the Community Associations Institute (CAI) Idaho, Bones currently serves as Vice Chair for the Legislative Action Committee. She monitors state legislation coming out of Boise. Accordingly, Bones seeks to educate lawmakers specifically on how pending legislation will affect the lives of people living and working throughout the Gem State. She also mentors students at the College of Idaho and has donated her time to the Rock Bottom Foundation, which provides meals to the unhoused. Bones’s other accolades include an International Law Writing Award from Davis Wright Tremaine (DWT) for her 2020 article “Potential Solutions to Concerns over the Treatment of U.S. Investment in China: The Need for a U.S.-China Bilateral Investment Treaty.” She frequently speaks at CAI events, helping to prepare her fellow legal professionals for challenges in the field—and those yet to come. About VF Law VF Law is a full-service, multi-state law firm. At VF, we believe that experience and knowledge are crucial; that’s why every attorney on our staff maintains a high level of expertise to ensure client success. VF possesses unmatched experience in providing HOA guidance, planning for healthy buildings from the ground up, helping small businesses and corporations run smoothly, handling real estate transactions and disputes, creating wills and trusts, and more. Visit www.vf-law.com. Read the court decision
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Scaffolding Purchase Suggests No New Building for Board of Equalization

July 30, 2014 — Beverley BevenFlorez-CDJ STAFF
Employees at California’s Board of Equalization spoke out against the Brown administration after the state purchased new scaffolding for the defect-riddled building, rather than finding a new facility, reported the Sacramento Bee. The existing scaffolding was leased for $10,000 per month, but the lease expired, prompting the purchase of new scaffolding for about $100,000. The board’s Chairman Jerome Horton stated “that while the change may make financial sense in the short term, it sends a signal that the Department of General Services intends to keep Equalization’s 2,200 or so employees in the troubled building,” according to the Sacramento Bee. Building problems include “toxic mold, defective elevators, leaking windows, corroded wastewater pipes, floods, and exterior glass panels that spontaneously break or pop off.” So far, $2.3 million has been paid “in connection with building-related employee injury claims” along with $60 million in repairs. However, an additional $115 million is estimated to completely fix the defects. Read the court decision
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Contractor Manslaughter? Safety Shortcuts Are Not Worth It

August 11, 2011 — Douglas Reiser, Builders Council Blog

It’s been a while since I discussed the importance of safety. But, a recent article on ENR.com compelled this brief article. Don’t shortcut safety — you could be facing serious criminal repercussions.



A New York crane company owner and one of his employees are each facing a second-degree manslaughter charge for the death of two construction workers.  The charges stem from the collapse of a crane in New York City. The district attorney determined that the crane owner cut a few corners to reduce its operation costs, significantly sacrificing safety.



Another example was the 2010 trial of another New York crane operator who was charged with manslaughter. In that case, the criminal charges failed to stick, but an administrative judge found that the contractor used a damaged sling to support the steel collar binding the tower-crane mast to the 18th floor of a high-rise building being constructed. The company also used four slings instead of the eight, as specified by the crane manufacturer; improperly attached the slings and failed to pad or soften them.

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

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Policing Those Subcontractors: It Might Take Extra Effort To Be An Additional Insured

June 14, 2011 — Douglas Reiser, Builders Council Blog

I just came across a case that I think truly paints the insurance dilemma for contractors. Thanks to this recent Illinois case, I don’t have to make up any factual scenarios—so kudos to Attorney Robert Boylan for posting it.



In reading over my RSS feeds this weekend, I noticed a great writeup on long-time blogger Josh Glazov’s Construction Law Today. Attorney Robert Boylan’s post describes a recent Illinois case where a general contractor was denied its additional insured status on a second-tier subcontractor’s insurance. The reason for the denial: the general contractor failed to procure an agreement in writing with the second-tier subcontractor, requiring it to be listed as an additional insured.



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

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Presenting a “Total Time” Delay Claim Is Not Sufficient

September 12, 2022 — David Adelstein - Florida Construction Legal Updates
When presenting a delay-type of claim on a construction project, a claimant MUST be in a position to properly PROVE the claim. Trying to present a delay claim loosey-goosey is not a recipe for success. In fact, it can be a recipe for an easy loss. This is not what you want. To combat this, make sure you engage a delay expert that understands delay methodologies and how to calculate delay and do NOT present a total time claim. Presenting a delay claim using a total time approach, discussed below, makes it too easy to attack the flaws and credibility of the approach. Per the discussion of the case below, a total time claim with a contractor that used its project manager, versus a delay expert, to support its claim turned the contractor’s claim into a loss. In French Construction, LLC v. Department of Veteran Affairs, 2022 WL 3134507, CBCA 6490 (CBCA 2022), a contractor submitted a delay claim to the government for almost $400,000. The contractor was hired to construct a two-story corridor to connect hospital buildings. The contractor was required to be complete within 365 days. It was not. The contractor was seeking 419 days of delay from the government. The contractor’s “delay expert” was its project manager who compared the contractor’s as-planned schedule to an as-built schedule he prepared for the claim. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Thinking About a Daubert Motion to Challenge an Expert Opinion?

February 06, 2023 — David Adelstein - Florida Construction Legal Updates
When you receive an expert opinion, one of the first things you are considering is whether it is worth filing a Daubert motion / challenge. A Daubert motion is a generally a pretrial motion you are using to challenge the admissibility of the expert opinion. Keep in mind this deals with the admissibility, not the credibility, of the expert opinion. A Daubert motion is based on three prongs that must be answered: 1) is the witness qualified to render the expert opinion?; 2) is the expert’s opinion reliable?; and 3) is the expert’s opinion relevant?. A Daubert motion is premised after Federal Rule of Evidence 702 that provides: A witness who is qualified as an expert by knowledge, skill, experience, training, or education may testify in the form of an opinion or otherwise if:

1. the expert’s scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue;
2. the testimony is based on sufficient facts or data;
3. the testimony is the product of reliable principles and methods; and
4. the expert has reliably applied the principles and methods to the facts of the case.

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Making the World’s Longest Undersea Railway Tunnel Possible with BIM

December 11, 2018 — Aarni Heiskanen - AEC Business
Finland and Estonia are Baltic sea neighbors separated by the Gulf of Finland. Over eight million travelers and 1.2 million cars travel between Helsinki and Tallinn every year by boat. However, a consortium of companies is now planning to build the Finest railway tunnel between the two countries. The vision of such a tunnel has been around since the 1990s. In June 2016, Peter Vesterbacka, previously known as the marketer behind Rovio’s Angry Birds, made the latest endeavor public in his AEC Hackathon presentation. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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