Could This Gel Help Tame the California Fires?
November 28, 2018 —
Gordy Megroz - BloombergIn 2009, Jeff Denholm was making a living as an adventure athlete, competing in stand-up paddleboard races and riding giant waves at Mavericks, the famous surf break near his home in Santa Cruz, Calif. Denholm was sponsored by Patagonia Inc., but to generate extra cash—“Adventure athletes don’t make a ton of money,” he says—he had a side gig leasing a fire truck to state and county crews that had run out of equipment battling wildfires.
One firefighting tool that Denholm kept onboard was retardant, which helps tamp down existing fires and can prevent them; he used a type known as a foam suppressant. Last year the U.S. Forest Service spent about $72 million on retardants, but in researching them, Denholm discovered some discouraging information.
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Gordy Megroz, Bloomberg
Not a Waiver for All: Maryland Declines to Apply Subrogation Waiver to Subcontractors
September 23, 2024 —
Gus Sara - The Subrogation StrategistIn Lithko Contr., LLC v. XL Ins. Am. Inc., No. 31, Sept. Term, 2023, 2024 Md. LEXIS 256, the Supreme Court of Maryland considered whether a tenant who contracted for the construction of a large warehouse facility waived its insurer’s rights to subrogation against subcontractors when it agreed to waive subrogation against the general contractor. The court ultimately decided that the unambiguous language of the subrogation waiver in the development agreement between the parties did not extend to subcontractors. The court also held that the tenant’s requirement that subcontracts include a subrogation waiver did not, in this case, impose a project-wide waiver on all parties. The court, however, found that the requirement that the subcontracts include a similar, but not identical, waiver provision rendered the subcontract’s waiver clauses ambiguous and remanded the case to the lower court to determine if the parties to the development agreement – i.e., Duke Baltimore LLC (“Duke”) and Amazon.com.dedc, LLC (“Amazon”) – intended that the waiver clause in the subcontracts covered claims against subcontractors.
This case involved roof and structural damage to a warehouse in Baltimore, Maryland that Duke owned. In March 2014, Amazon entered into a development agreement with Duke for the construction of the warehouse. Amazon also agreed to subsequently lease the warehouse from Duke. Although Amazon essentially owned and/or developed the project, the development agreement identified Duke as “Landlord” and Amazon as “Tenant.”
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
General Contractors Can Be Sued by a Subcontractor’s Injured Employee
November 05, 2014 —
Craig Martin - Construction Contractor AdvisorGeneral contractors that exercise control over the worksite can be sued by a subcontractor’s injured employee. The Nebraska Supreme Court’s recent opinion, Gaytan v. Wal-Mart, should serve as a reminder that general contractors may be responsible for the safety of all workers on a job site.
In this case, a roofing subcontractor’s employee died after falling through the roof of the under-construction Wal-Mart. The deceased employee’s estate sued Wal-Mart and Gram Construction, the general contractor, alleging that they were negligent in maintaining a safe worksite.
The court initially acknowledged that an owner, the employer of an independent contractor, does not typically owe a subcontractor’s employee a duty because the owner typically has no control over the manner in which the work is to be done by the contractor. This general rule, however, has exceptions, such as where the owner retains control over the contractor’s work. But, for the exception to apply, the owner must have (1) supervised the work that caused the injury, (2) actual or constructive knowledge of the danger that caused the injury, and (3) the opportunity to prevent the injury.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Denver’s Mayor Addresses Housing and Modifying Construction Defect Law
July 16, 2014 —
Beverley BevenFlorez-CDJ STAFFDuring his State of the City Address, Mayor Michael Hancock discussed housing, specifically calling “on the state legislature to modify a construction defects law,” according to KWGN news.
“…it is my sincere hope that the 2015 State Legislature will recognize the chilling effect the construction defects law has on the for sale condo market,” Hancock stated, as reported in The Denver Post. “I encourage lawmakers to modify the law so that we can experience the full potential of housing in metro Denver.”
Hancock also claimed that though the population has increased, the “housing stock has not kept pace,” according to KWGN. “This gap is exacerbated by rising home prices, which are good news for homeowners and our local economy, but a challenge for many residents and families.”
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Traub Lieberman Partner Colleen Hastie and Associate Jeffrey George Successfully Oppose Plaintiff’s Motion to Vacate Dismissal
September 11, 2023 —
Colleen E. Hastie & Jeffrey George - Traub LiebermanTraub Lieberman Partner Colleen Hastie and Associate Jeffrey George successfully opposed Plaintiff’s motion to vacate a prior dismissal of plaintiff’s medical malpractice action brought before the Supreme Court of the State of New York, Bronx County.
The lawsuit, commenced by Plaintiff in 2015, alleged medical malpractice stemming from treatment Plaintiff received at a New York medical facility after falling out of a window at a rental property owned by Traub Lieberman’s client (“Property Owner”). Property Owner moved to dismiss Plaintiff’s complaint or preclude Plaintiff from offering evidence in support of its claims, or in the alternative, compel plaintiff to produce all outstanding discovery. The Medical Facility cross-moved for the same relief. Defendants agreed to adjourn the motion until after plaintiff’s deposition, but plaintiff made no effort to secure an adjournment with the court and plaintiff filed no opposition to the motion, allowing the motion to be granted on default. Plaintiff waited nearly a year to file a motion to vacate the default judgment, despite receiving notification of the default from defense counsel. Property Owner, in opposing plaintiff’s motion, pointed to plaintiff’s long history of dilatory conduct and failure to comply with discovery orders in support of its position that plaintiff failed to show any good cause for its default on the motion to dismiss.
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Colleen E. Hastie, Traub Lieberman and
Jeffrey George, Traub Lieberman
Ms. Hastie may be contacted at chastie@tlsslaw.com
Mr. George may be contacted at jgeorge@tlsslaw.com
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Montana Federal Court Holds that an Interior Department’s Federal Advisory Committee Was Improperly Reestablished
December 09, 2019 —
Anthony B. Cavender - Gravel2GavelOn August 13, 2019, in a case that may have an impact on the leasing of federal lands for energy development in the future, the U.S. District Court for the Missoula, Montana Division, issued a ruling in the case of Western Organization of Resource Councils v. Bernhardt, which involves the application of the Federal Advisory Committee Act (FACA) to the Department of the Interior’s Royalty Policy Committee. This advisory committee, initially established in 1995 to provide advice to the Secretary on issues related to the leasing of federal and Indian lands for energy and mineral resources production, is subject to the provisions of FACA, codified at 5 U.S.C. app. Sections 1-16. The plaintiffs challenged the operations of this advisory committee, which was reestablished for two years beginning in 2017, because it allegedly “acts in secret and works to advance the goals of only one interest: the extractive industries that profit from the development of public gas, oil, and coal.” More specifically, the plaintiffs alleged that this advisory committee violated FACA because: (a) it was not properly established as provided in the implementing GSA rules (which are located at 41 CFR Section 102-3); (b) did not provide public notice of its meetings and publicly disseminate its materials; (c) ensure that its membership was fairly balanced; and (d) failed to exercise independent judgment without inappropriate influences from special interests.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Is the Sky Actually Falling (on Green Building)?
November 03, 2016 —
Christopher G. Hill – Construction Law MusingsI have spoken on many occasions here at Construction Law Musings and elsewhere about the risks and rewards for contractors found in sustainable construction. The rewards were fairly apparent. New markets, government incentives and the desires of owners to be “green” clearly point toward a need for contractors to get into the sustainable building game.
However, when I was first writing my Eeyore like thoughts most of the thoughts of all us construction attorneys were speculative. Whether because wholesale “green” construction was relatively new or because the court process was relatively slow, there were not many ways to test if our, shall we say “less optimistic,” predictions were going to come to pass.
For better or worse, several of the more dire predictions have come true. One major green construction debacle is the Destiny USA litigation. I cannot possibly set out all of the various issues as well as my friend and colleague Chris Cheatham does in his e-book about the project and its aftermath. I highly recommend this e-book and the posts found at Chris’ Green Building Law Update blog for those of you interested in how the IRS, the USGBC and the Green Bonds Program interact to cause many a pitfall for construction and design professionals.
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Christopher G. Hill, The Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Tort Claims Against an Alter Ego May Be Considered an Action “On a Contract” for the Purposes of an Attorneys’ Fees Award under California Civil Code section 1717
April 12, 2021 —
Tony Carucci - Snell & Wilmer Real Estate Litigation BlogCalifornia Civil Code section 1717 entitles the prevailing party to attorneys’ fees “[i]n any action on a contract,” where the contract provides for an award of attorneys’ fees to the prevailing party, regardless of whether the prevailing party is the party specified in the contract or not. But what about an action that alleges tort causes of action against an alter ego of a contracting party but that does not include a breach of contract claim against the alter ego? This was the question facing the California Court of Appeal in 347 Group, Inc. v. Philip Hawkins Architect, Inc. (2020) 58 Cal.App.5th 209.
In that case, the plaintiff 347 Group sued and obtained a default judgment for breach of contract against defendant Philip Hawkins Architect, Inc. Id. at 211–12. 347 Group had also sued Philip Hawkins individually as well as Design-Build, Inc., the company Hawkins founded after putting Philip Hawkins Architect, Inc. into bankruptcy. Id. at 212. 347 Group originally alleged claims for breach of contract, fraudulent conveyance, and conspiracy against Hawkins and Design-Build, seeking to establish that Hawkins and Design-Build were the alter egos of the contracting party, Philip Hawkins Architect, Inc., but later dismissed the breach of contract claim. Id. Hawkins and Design-Build eventually prevailed on the tort causes of action, and moved for attorneys’ fees. Id.
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Tony Carucci, Snell & WilmerMr. Carucci may be contacted at
acarucci@swlaw.com