Contractors Sued for Slip
June 28, 2013 —
CDJ STAFFA man on his way to a safety meeting slipped fell on a gangway. He’s saying that the roofing paper on the gangway was improperly secured and is now suing the contractor for negligence. Donald Methvien claims that his damages exceed $50,000.
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Design-Build Contracting: Is the Shine Off the Apple?
March 09, 2020 —
John P. Ahlers - Ahlers Cressman & Sleight PLLCThe design-build delivery method offers many benefits to owners. Among the cited benefits are that projects are generally completed faster, at a lower cost, by allowing innovative approaches through early and continual contractor involvement in the design process. The design contractor serves as a single point of contact responsible for both the design and construction of the project.
The Washington State Department of Transportation (“WSDOT”) utilized the design-build procurement method on the largest project ($2 billion) of its type in the state of Washington: the Highway 99 Tunnel, which was finished almost three years late after the tunnel-boring machine (“Bertha”) broke down six years ago. The sorted tale of the SR-99 Tunnel Project was the source of many of this firm’s blog articles.[1] The State of Washington staunchly maintained that the design-build contract protected its taxpayers from covering the repair costs to the tunnel-boring machine when it broke down in 2013. Bertha did not resume tunneling for almost two years, putting on hold removal of the Alaska Way viaduct and rebuilding of the Seattle Waterfront without an elevated highway.
In December 2013, the contractor for the project, Seattle Tunnel Partners (“STP”), contended that a 110-foot long 8” steel pipe which Bertha hit caused the breakdown. That pipe had been installed for groundwater testing by WSDOT in 2002 during its preliminary engineering for the viaduct replacement project. The project’s Dispute Review Board (“DRB”) composed of three tunneling experts found that the pipe constituted a “differing site condition” for which the State was responsible to disclose to contractors. The Board, whose views were non-binding, did not opine about how much damage the undisclosed pipe cost.[2] In other words, the mere fact that a differing site condition occurred did not establish that there was a causal connection between the damages which STP was seeking (in excess of $600 million) and the differing site condition (the 8” steel pipe which WSDOT lawyers at trial derisively referred to as “nothing more than a toothpick for Bertha’s massive cutter head”). STP maintained that Bertha had made steady progress except for three days immediately after hitting the pipe. It didn’t help the contractors’ case that during the discovery phase of the two-month trial, WSDOT lawyers uncovered documents showing that the contractor’s tunnel workers encountered and logged the pipe before digging began.[3]
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John P. Ahlers, Ahlers Cressman & Sleight PLLCMr. Ahlers may be contacted at
john.ahlers@acslawyers.com
Colorado Senate Revives Construction Defects Reform Bill
January 04, 2018 —
BEVERLEY BEVENFLOREZ - CDJ STAFFOriginally Published by CDJ on March 1, 2017
A re-booted construction defects reform bill recently passed its first Senate committee, according to the Denver Business Journal. Next, Senate Bill 156, sponsored by Sen. Owen Hill, R-Colorado Springs, heads to the Senate floor for debate.
SB 156 “would require that condominium owners alleging construction defects take their disputes to arbitration or mediation if requested by builders,” the Denver Business Journal reported. “It also would require that homeowners be informed of the consequences of filing legal actions over purported disputes and that a majority of all owners in a condominium complex vote to proceed with legal action, rather than just a majority of homeowners association board members.”
However, it is almost identical to the failed measures that were introduced in 2014 and 2015.
Homeowners association group members and owners of defective condominiums argued against the measure, stating “that the effort would not improve the quality of building in the state, but simply would block aggrieved Coloradans from taking their complaints before a jury of their peers.”
Proponent of the bill, Tom Clark, CEO of Metro Denver Economic Development Corp., said “that Denver’s housing costs have risen since the first bill was introduced in 2013 to the sixth-most-expensive in the country – and are tops for any metro area not on a coast.”
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Court Concludes That COVID-19 Losses Can Qualify as “Direct Physical Loss”
September 28, 2020 —
Lorelie S. Masters & Jorge R. Aviles - Hunton Andrews KurthIn a victory for policyholders, a federal district court found that COVID-19 can cause physical loss under business-interruption policies. In Studio 417, Inc., et al. v. The Cincinnati Insurance Co., No. 20-cv-03127-SRB (W.D. Mo. Aug. 12, 2020), the court rejected the argument often advanced by insurers that “all-risks” property insurance policies require a physical, structural alteration to trigger coverage. This decision shows that, with correct application of policy-interpretation principles and strategic use of pleading and evidence, policyholders can defeat the insurance industry’s “party line” arguments that business-interruption insurance somehow cannot apply to pay for the unprecedented losses businesses are experiencing from COVID-19, public-safety orders, loss of use of business assets, and other governmental edicts.
The policyholders in Studio 417 operate hair salons and restaurants asserting claims for business interruption. In suing to enforce their coverage, the policyholders allege that, over the last several months, it is likely that customers, employees, and/or other visitors to the insured properties were infected with COVID-19 and thereby infected the insured properties with the virus. Their complaint asserts that the presence of COVID-19 “renders physical property in their vicinity unsafe and unusable.” Unlike some other complaints seeking to enforce such coverage, it also alleges that the presence of COVID-19 and government “Closure Orders” “caused a direct physical loss or direct physical damage” to their premises “by denying use of and damaging the covered property, and by causing a necessary suspension of operations during a period of restoration.”
Reprinted courtesy of
Lorelie S. Masters, Hunton Andrews Kurth and
Jorge R. Aviles, Hunton Andrews Kurth
Ms. Masters may be contacted at lmasters@HuntonAK.com
Mr. Aviles may be contacted at javiles@HuntonAK.com
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Index Demonstrates Increase in Builders’ Sentiment
September 17, 2014 —
Beverley BevenFlorez-CDJ STAFFThe National Association of Home Builders’ Eye on Housing reported that “[b]uilders’ sentiment jumped four points to 59, the highest level since November 2005, according to the September NAHB/Wells Fargo Housing Market Index.” Furthermore, builders mentioned “renewed interest by potential home buyers and higher traffic in their models and through their phone calls.”
Eye on Housing also reported that the “inventory of new home for sale has increased to over 200,000.” While still lower than the 300,000 typical in 1990s and early 2000s, “the steady increase has provided a better selection for consumers.”
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Appreciate The Risks You Are Assuming In Your Contract
February 10, 2020 —
David Adelstein - Florida Construction Legal UpdatesAPPRECIATE THE RISKS YOU ARE ASSUMING IN YOUR CONTRACT. Otherwise, those risks will come back and bite you in the butt. This language is not capitalized for naught. Regardless of the type of contract you are entering into, there are risks you will be assuming. You need to appreciate those risks because there may be insurance you can obtain to cover that risk.
For instance, exculpatory provisions (or get-out-of-jail provisions) in contracts are enforceable if they are unambiguous. “Such provisions are deemed to be unambiguous and enforceable when the language unequivocally demonstrates a clear and understandable intention for the defendant to be relieved from liability such that an ordinary and knowledgeable person will know what he or she is contracting away.” Pillay v. Public Storage, Inc., 44 Fla.L.Weekly D2744c (Fla. 4th DCA 2019).
An example of an exculpatory provision can be found in the public storage rental contract found in Pillay that read:
(1) ALL PERSONAL PROPERTY IS STORED BY OCCUPANT AT OCCUPANT’S SOLE RISK.
(2) Owner and Owner’s agents . . . will not be responsible for, and Tenant releases Owner and Owner’s agents from any responsibility for, any loss, liability, claim, expense, damage to property . . . including without limitation any Loss arising from the active or passive acts, omission or negligence of Owner or Owner’s agents.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
A Court-Side Seat: As SCOTUS Decides Another Regulatory “Takings” Case, a Flurry of Action at EPA
July 19, 2021 —
Anthony B. Cavender - Gravel2GavelThis is a brief account of some of the important environmental and administrative law cases recently decided.
THE U.S. SUPREME COURT
Pakdel v. City and County of San Francisco
On June 28, 2021, the Supreme Court decided this regulatory “takings” case, and, in a Per Curium opinion, reversed the Ninth Circuit’s ruling that that petitioners had to exhaust their state administrative remedies before they could file this lawsuit under 42 USC Section 1983. The City government had already come to a sufficient regulatory conclusion, and the Constitution does not require additional processing. In so ruling, the Ninth Circuit ignored last term’s decision in Knick v. Township of Scott.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Haight’s Kristian Moriarty Selected for Super Lawyers’ 2021 Southern California Rising Stars
June 14, 2021 —
Kristian B. Moriarty - Haight Brown & Bonesteel LLPCongratulations to partner Kristian Moriarty who was selected to the Super Lawyers 2021 Southern California Rising Stars list. Each year, no more than 2.5% of the lawyers in the state are selected by the research team at Super Lawyers to receive this honor.
Reprinted courtesy of
Kristian B. Moriarty, Haight Brown & Bonesteel LLP
Mr. Moriarty may be contacted at kmoriarty@hbblaw.com
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