Texas Allows Wide Scope for Certificate of Merit
January 07, 2025 —
Lian Skaf - The Subrogation StrategistThe purpose of certificate of merit (sometimes referred to as affidavit of merit) statutes is to identify frivolous claims before the court wastes time and resources during litigation. More common in medical malpractice cases, several states have enacted similar requirements for professional negligence claims dealing with construction-related issues. While a subrogation attorney should not be bringing a frivolous case to suit anyway, the requirement adds another step in the process that plaintiffs need to properly navigate.
Chapter 150 of the Texas Civil Practice and Remedies Code requires that in an action arising out of professional services by a licensed or registered professional, claimants must file an affidavit from a qualified expert attesting to the theories of recovery, the negligence and the factual basis for the claims. The expert must be competent, have the same professional license or registration as the defendant and practice in the area of practice of the defendant.
In Janis Smith Consulting, LLC v. Rosenberg, No. 03-23-00370-CV, 2024 Tex. App. LEXIS 7961, the Court of Appeals of Texas, Third District (Court of Appeals) addressed a challenge from the defendant as to the sufficiency of the plaintiff’s certificate of merit in an interlocutory appeal. The Court of Appeals affirmed the lower court’s dismissal of the defendant’s motion to dismiss based on the allegedly improper certificate of merit, holding that the plaintiff’s expert was sufficiently qualified to certify the legitimacy of the case.
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Lian Skaf, White and Williams LLPMr. Skaf may be contacted at
skafl@whiteandwilliams.com
Revisiting the CMO; Are We Overusing the Mediation Privilege?
November 19, 2021 —
Michael T. Kennedy Jr. - BERDING|WEILOne of the most common features in construction defect cases is the Case Management Order (“CMO”) or Pre-Trial Order (“PTO”) to govern pre-trial and mediation procedures. CMOs and PTOs arose in the days when the HOA would sue the developer, the developer would cross-complaint against the subcontractors, and each defendant and cross-defendant might have 2 or 3 insurance carriers defending, each of whom may retain their own panel counsel. In a large case there may have been 20 parties and 30 defense attorneys. In order to avoid the cost and chaos of all of those parties propounding their own discovery, and in order to prepare these cases for mediation well before trial and the associated costs, it became standard practice in California to include provisions in the CMO to stay all discovery until just before trial.
Plaintiff would provide a Defect List or Statement of Claims and the parties experts would meet and exchange information as part of the mediation process. All of the information exchanged would be subject to mediation privileges and inadmissible at trial. The benefit of this practice was that the parties (and carriers) would avoid the cost of formal discovery and allow the experts to discuss compromised scopes of repair to help settle the case while being able to take a more aggressive position at trial. The disadvantages are that each party uses its privileged initial expert reports to stake out negotiating positions more extreme than what they would put on at trial, with each side losing credibility with the other in assessing the value of the case, and for those cases that did not settle, the parties would be faced with having to do all of the depositions and discovery in the last 60 days, or delaying trial, or both.
Over the last 10 or 15 years with the advent of wrap-up insurance policies, these cases now usually involve 2 sides instead of 20; only the HOA and the developer remain in the case. However, old habits die hard, and the standard CMO/PTO hasn’t evolved with other aspects of these cases. The practice of staying all discovery and exchanging information only under mediation privileges remains, and as a result insurance carriers don’t receive the admissible evidence that they need to determine coverage and evaluate the real settlement value of the case until just before trial. On the plaintiff’s side, if most of the experts’ work is done under the guise of mediation privilege, those costs may not be recoverable. Outside the context of mediation, costs incurred in investigation of the defects and preparation of a scope and cost of repair are recoverable.
This reflexive claim of mediation privilege over all information exchanged during the case has outlived its usefulness. The CMO can and should remain to regulate formal discovery and to help the parties prepare for mediation, but regulated discovery should be opened early in the case. In California, the SB800 process already provides for the exchange of admissible information during the prelitigation right to repair process. Continuing that exchange during the early litigation allows the parties to continue to prepare for mediation, but waiving privileges had advantages for both sides.
A senior claims manager once commented that Plaintiff’s mediation-protected Statement of Claims “might as well be a stack of blank paper” for all of its usefulness to the carrier in assessing the value of the case. If the Plaintiff and it expects are free to inflate their claims early in the case without having to worry about every supporting those claims in front of a jury, they have little or no credibility. And if those claims are inflated or not “real,” not only can the carrier not properly assess the verdict range and settlement value of the case, but it may also be hampered in making a coverage determination. Simply put, if the exchange of real information through formal discovery is put off until just before trial, the defense cannot be ready to settle until then. Worse, the cost of defense goes through the roof in the last 60 days before trial as the lawyers’ scramble to take all of the depositions and to all of the other work that had been stayed for the previous year or two.
The Plaintiff is faced with the same question of credibility of defense experts where they are free to take a “low ball” negotiating position without having to support that position through cross-examination in front of the jury. Just as the carrier behind the defense attorney needs the Plaintiff’s “real” evidence to assess the claim, so does the HIOA Board of Directors behind the Plaintiff’s counsel. Additionally, in California as in most states, the cost of experts’ preparation for mediation may not be recoverable as costs or damages, but investigation of the defects and preparation of the scope and cost of repair is recoverable.
The biggest challenge is resolving construction defect claims for both sides is how to resolve these cases quickly while keeping costs under control. Practices that worked 20 years ago are no longer applicable with changes in insurance, and in light of some of the bad habits that arise when all of the information exchanged was confidential.
The CMO/PTO process can still be useful to regulate the discovery and mediation schedule given the volume of documents and other information to be exchanged but exchanging “real” information in a form that may come into evidence at trial should foster earlier resolution, resulting in cost savings for the parties. The CMO can provide for the parties to respond to controlled discovery, and the exchange of expert reports and potentially depositions can and should be done earlier in the case, well before the eve of trial. The parties can then assess the true value of each case and prepare for more substantive mediation without waiting until they are on the figurative courthouse steps.
Construction defect cases have a pattern, and it is tempting for busy lawyers to just put each case through the same algorithms that they have used for years. However, these cases have evolved and those of us handling these cases need to reevaluate our approach to these cases. Taking aggressive negotiating positions that no longer have any credibility with the other side has become counterproductive, and the exchange of real evidence earlier in the case would better serve our clients and carriers.
BERDING|WEIL is the largest and most experienced construction defect and common interest development law firm in California. For more information, please visit https://www.berding-weil.com
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Michael T. Kennedy Jr., BERDING|WEILMr. Kennedy may be contacted at
mkennedy@berdingweil.com
Four Companies Sued in Pool Electrocution Case
June 26, 2014 —
Beverley BevenFlorez-CDJ STAFFBack in April of this year, a seven-year old boy was electrocuted while swimming in his family’s pool in North Miami, Florida, according to CBS Miami. Now, the family is suing four companies in a wrongful death suit.
The complaint claims that the victim “was electrocuted due to a faulty pool light and electrical grounding and bonding on the pool’s lighting system.”
Pentair Water Pool and Spa, Inc., manufactured and designed the pool light. Florida Pool & Spa Center “provided periodic cleaning, maintenance and inspections of the pool,” while Gary B Electric and Construction Consultant is being sued for “improper bonding and grounding.” Also, Jorge Perez Enterprises Inspection Company is listed in the lawsuit since they conducted the inspection when the family purchased the home.
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Wearable Ways to Work in Extreme Heat
July 15, 2024 —
Clare Epstein - Construction ExecutiveEarth experienced its hottest months yet in summer 2023, and
NASA scientists are expecting 2024 to be even hotter. Rising temperatures and high humidity aren’t just uncomfortable for those outside during the summer months: They can cause serious health consequences, including death. While employers are working to find ways to combat the heat, the extreme variability in weather conditions continues to pose threats to employees.
Recently, company leaders have turned to new methods and technologies to help their teams stay safe while working both indoors and outdoors. A balance of methods and technology is necessary to keep everyone safe while they work. As summer approaches, is important to remember that the time to review and update current heat-stress safety plans is in the spring—or better yet, year-round—in order to prioritize employee safety and determine both proactive and reactive measures needed to withstand the hottest months of the year.
TRIED AND TRUE
While we are all navigating new ways of working safely in extreme temperatures, the tried-and-true measures are still extremely useful in preventing heat stress among employees. Employers can support their employees working outdoors by ensuring there are proper amenities available at all times, including shady areas, a water source and electrolyte drinks.
Reprinted courtesy of
Clare Epstein, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Japan Quake Triggers Landslides, Knocks Power Plant Offline
September 10, 2018 —
Jeff Rubenstone - Engineering News-RecordA magnitude 6.7 earthquake occurred on the northern Japanese island of Hokkaido on Sept. 6, leaving at least seven dead and damaging buildings and structures in the region, including a 1,650MW coal-fired thermal power plant that was taken offline.
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Jeff Rubenstone, ENRMr. Rubenstone may be contacted at
rubenstonej@enr.com
Real Estate & Construction News Roundup (11/8/23) – New Handling of Homelessness, Decline in Investments into ESG Funds, and Shrinking of a Homebuyer’s Dollar
December 11, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogOur latest roundup includes two large flood control projects in New Jersey, how residential REITs could benefit from higher interest rates, how the downfall of WeWork could cause expansive collateral damage, and more!
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Pillsbury's Construction & Real Estate Law Team
Congratulations to our 2019 Southern California Super Lawyers Rising Stars
July 30, 2019 —
John Arbucci, Frances Brower, Lisa Hsiao, Kristian Moriarty & Michael Parme - Haight Brown & Bonesteel LLPCongratulations to attorneys John Arbucci, Frances Brower, Lisa Hsiao, Kristian Moriarty and Michael Parme who were selected to the 2019 Southern California Rising Stars list. Each year, no more than 2.5 percent of the lawyers in the state are selected by the research team at Super Lawyers to receive this honor.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
T. Giovanni “John” Arbucci,
Frances Brower,
Lisa Hsiao,
Kristian Moriarty and
Michael Parme
Mr. Arbucci may be contacted at jarbucci@hbblaw.com
Ms. Brower may be contacted at fma@hbblaw.com
Ms. Lisa may be contacted at lhsiao@hbblaw.com
Mr. Kristian may be contacted at kmoriarty@hbblaw.com
Mr. Parme may be contacted at mparme@hbblaw.com
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U.S. Firm Helps Thais to Pump Water From Cave to Save Boys
August 14, 2018 —
Dan Murtaugh - BloombergLike much of the world, Patrick Decker has been engrossed in the saga of 12 boys and their soccer coach who became trapped in a flooded cave in Thailand. Unlike most, Decker is in a position to do something about it.
As chief executive officer of Xylem Inc., one of the world’s top water technology firms, Decker spent much of last week reaching out to Thai officials and mobilizing his company of 17,000 employees to help. Decker said he sent four engineers to the cave site, and they assisted rescuers by boosting pumping power 40 percent. Thai Navy SEALs and international cave diving experts extracted eight boys over Sunday and Monday.
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Dan Murtaugh, Bloomberg
