Avoiding Disaster Due to Improper Licensing
February 18, 2019 —
Candace Matson - Construction & Infrastructure Law BlogIT’S NOT ENOUGH FOR A CONTRACTOR TO BE LICENSED . . . it must be properly licensed.
We are reminded of this by the recent case of JMS Air Conditioning and Appliance Service, Inc. v. Santa Monica Community College District, Bernards Bros., Inc., 30 Cal. App. 5th 945 (2018). In that case, JMS entered into an $8.2M subcontract with Bernards to install an HVAC system in a new facility being built for the District. JMS held a C-20 warm-air heating, ventilating and air-conditioning license. A year into the project, Bernards sought permission from the District to substitute another subcontractor for JMS (as required under Public Contract Code Section 4107 for listed subcontractors on public works of improvement). Among other things, Bernards contended that JMS was not properly licensed to perform that portion of the work which consisted of hydronic plumbing and hydronic boiler work. JMS countered that this work was an integral part of installing an HVAC system, and relied on Business & Profession Code Section 7059, which permits work that is “incidental and supplemental to the performance of the work for which the specialty contractor is licensed,” and a California State Licensing Board regulation which defines “incidental and supplemental” as meaning “essential to accomplish the work in which the contractor is classified.” (Cal. Code Regs., tit. 16, §831.)
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Candace Matson, Sheppard MullinMs. Matson may be contacted at
cmatson@sheppardmullin.com
Condemnation Actions: How Valuable Is Your Evidence of Property Value?
November 06, 2018 —
Erica Stutman - Snell & Wilmer Real Estate Litigation BlogWhen a government condemns (takes) private property for a public use, the property owner is entitled to receive “just compensation” equal to the property’s market value. Value is typically determined by appraisals, but if the parties cannot agree, a judge or jury will determine the amount in a condemnation lawsuit. The parties may seek to present various forms of evidence of value, though it will be admissible only if the evidence is relevant and its value is not substantially outweighed by the risk of causing unfair prejudice, confusion, undue delay or waste of time, does not mislead the jury, and is not needlessly cumulative. See, e.g., Fed. R. Evid. 403.
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Erica Stutman, Snell & WilmerMs. Stutman may be contacted at
estutman@swlaw.com
Insurers in New Jersey Secure a Victory on Water Damage Claims, But How Big a Victory Likely Remains to be Seen
April 03, 2019 —
Kevin Sullivan - TLSS Insurance Law BlogProperty insurance policies commonly cover water damage caused by an accidental discharge or leakage of water from an on-site plumbing system and commonly exclude water damage caused by a sewer backup. So it’s not surprising that the cause of water damage is a common battleground between policyholders and insurers. In Salil v. Ohio Security Insurance Co., 2018 WL 6272930 (N.J. App. Div. Dec. 3, 2018), insurers scored a victory when the court held that the release of water and sewage into a restaurant was subject to a $25,000 sublimit for water damage caused by a sewer backup. But claims adjusters and policyholders confronted with water damage claims in New Jersey will no doubt continue to do battle over whether the Salil decision was a decisive victory for insurers or a limited one.
In Salil, the insured landlord leased its building to a restaurant operator. After the insured’s tenant reported water and odor at the restaurant, the insured contacted a plumber, who informed the insured that a clog in the restaurant’s toilet caused Category 3 water to flow into the restaurant. The insured allegedly sustained approximately $160,000 in restoration costs and loss of business income. The plumber used a snake to clear the sewer line to remedy the issue. The restoration company confirmed the cause of the loss was a sewer back up. On this basis, the insurer determined that the cause of loss was a sewer backup. The policy excluded coverage for water damage caused by a sewer back-up, but an endorsement restored that coverage, subject to a $25,000 sub-limit for “direct physical loss or damaged caused by water… which backs up into a building or structure through sewers or drains which are directly connected to a sanitary sewer or septic system.” Pursuant to this endorsement, the insurer paid its $25,000 sublimit.
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Kevin Sullivan, Traub LiebermanMr. Sullivan may be contacted at
ksullivan@tlsslaw.com
Are “Green” Building Designations and Certifications Truly Necessary?
January 28, 2019 —
Christopher G. Hill - Construction Law MusingsAs anyone who reads this construction blog on a regular basis knows, I believe that the move to newer sustainable building practices (while bringing about a new or different set of potential risks) is both necessary and laudable. Because of this fact, you may be asking why the headline for today’s post. After all, I am a LEED AP and assisted in the drafting of the LEED/Green Building addendum to the ConsensusDOCS so I must be pro LEED (or any other) certification of buildings. To the extent that such certification encourages best practices and more sustainable building stock, I am pro certification.
However, certification is not a necessary carrot to bring builders around to such practices. As a recent article in EcoHome Magazine (thanks to Todd Hawkins at BuilderFish for alerting me to the article) points out, companies are already moving toward these practices with or without certification and it’s added layer of expense. Economic, air quality, and moral (“its the right thing to do”) factors are pushing executives to such practices. According to EcoHome Magazine, while LEED retains the lions share of green certifications, more and more companies are either using internal standards or trying out other certification programs, including Energy Star.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Settling with Some, But Not All, of the Defendants in a Construction Defect Case
March 28, 2018 —
David Adelstein – Florida Construction Legal UpdatesConstruction defect lawsuits can be complex multi-party disputes, especially when the plaintiff is doing what is necessary to maximize recovery. This means the plaintiff may sue multiple defendants associated with the defects and damage. For example, the owner (e.g., plaintiff) may sue the contractor, subcontractors, design professionals, etc. due to the magnitude of the damages. In many instances, the plaintiff is suing multiple defendants for overlapping damages. The law prohibits a plaintiff from double-recovering for the same damages prohibiting the windfall of a plaintiff recovering twice for the same damages. Perhaps this sentiment is straight common sense, but this sentiment is a very important consideration when it comes to settling with one or more of the defendants, while potentially trying the construction defect case as to remaining defendants.
Analysis and strategy is involved when settling with some but not all of the defendants in a construction defect case (and, really, for any type of case). Time must be devoted to crafting specific language in the settlement agreements to deal with this issue. Otherwise, the settlement(s) could be
set-off from the damage awarded against the remaining defendants.
The recent decision in
Addison Construction Corp. v. Vecellio, 43 Fla.L.Weekly D625(a) (Fla. 4th DCA 2018) details the analysis and strategy required when settling with some but not all of the defendants in a construction defect case, and the concern associated with a trial court setting-off the settlement amount from the damage awarded against the remaining defendants.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com
Part I: Key Provisions of School Facility Construction & Design Contracts
May 16, 2018 —
David R. Cook Jr. - Autry, Hall & Cook, LLPWe all expect our school construction projects will go smoothly, on time and under budget. But despite our best efforts, some projects will encounter speed bumps, detours or outright roadblocks. While there are many precautions a school facility manager may take, one of the best precautions is to have solid construction and design contracts.
A good contract will account for the known risks and specify an outcome in favor of the school authority. School construction risks can be categorized into a few categories: performance risk, time risk, cost risk and political risk. Some risks are typical to all construction projects, while others are peculiar to the unique needs of school authorities.
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David R. Cook Jr., Autry, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
Some Coastal Cities Are Sinking Even Faster Than Seas Are Rising
June 20, 2022 —
Ditas B Lopez - BloombergRising seas have long been a threat to coastal cities. New research suggests that cities—particularly in Asia—are sinking as well, compounding the risks of frequent and severe flooding.
In Karachi, land is sinking five times as fast as the sea level is rising, according to the study published this month in Geophysical Research Letters. Manila and Chittagong, Bangladesh’s second-largest city, are sinking at 10 times the rate of the rising waters.
In China’s Tianjin, a coastal city about 150 kilometers southeast of Beijing, the ground is giving way at 20 times that speed.
In those four cities alone, the phenomenon could affect roughly 59 million residents.
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Ditas B Lopez, Bloomberg
Waiving Consequential Damages—What Could Go Wrong?
March 19, 2024 —
Curtis W. Martin & Kellie M. Ros - Peckar & Abramson, P.C.You are inexcusably late with construction of a football stadium, a casino, or similar project that generates large income for the owner. The indirect damages, often referred to as consequential damages, that flow from the delay can be astronomical to the point of breaking your company if it must pay them. As a result, many construction contracts, at every tier, contain a provision that waives consequential damages. By this waiver, a party seeks to limit its risk for these damages.
Over the years, courts have interpreted these provisions in a widely variable and inconsistent manner. The courts typically start with the specific language of the waiver to discern the parties’ intent. Thus, the language of the provision itself is critical. But construction professionals should not overlook other provisions in the contract that may have an impact on a court’s analysis of the parties’ intent. As one of my colleagues likes to say, “the large print giveth and the small print taketh away.”
Reprinted courtesy of
Curtis W. Martin, Peckar & Abramson, P.C. and
Kellie M. Ros, Peckar & Abramson, P.C.
Mr. Martin may be contacted at cmartin@pecklaw.com
Ms. Ros may be contacted at kros@pecklaw.com
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