Eleventh Circuit Reverses Attorneys’ Fee Award to Performance Bond Sureties in Dispute with Contractor arising from Claim against Subcontractor Performance Bond
February 27, 2019 —
CDJ STAFFOn October 26, 2018, the United States Court of Appeals for the Eleventh Circuit (the “Eleventh Circuit”) issued a decision which reversed an award of prevailing party attorneys’ fees to performance bond sureties in their dispute with a contractor arising from the contractor’s claim against a subcontractor’s performance bond. Had the lower court’s decision been affirmed, the performance bond sureties would have been able to recover prevailing party attorneys’ fees against the contractor even though they were not parties to the underlying subcontract and the subcontract did not contain a prevailing party attorneys’ fee provision.
The underlying case is complicated and arose from the construction of Brickell CityCentre in Miami. Americaribe-Moriarty JV (the “Contractor”) asserted a claim against a performance bond procured by a defaulted subcontractor and issued by International Fidelity Insurance Company and Allegheny Casualty Company (collectively, the “Sureties”). The Sureties filed a declaratory judgment action against the Contractor in the United States District Court for the Southern District of Florida (the “District Court”), seeking a declaration that the Contractor failed to perfect its claim against the performance bond.
Reprinted courtesy of
Gary M. Stein, Peckar & Abramson and
K. Stefan Chin, Peckar & Abramson
Mr. Stein may be contacted at gstein@pecklaw.com
Mr. Chin may be contacted at kschin@pecklaw.com
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Eminent Domain Bomb Threats Made on $775M Alabama Highway Project
July 03, 2022 —
Derek Lacey - Engineering News-RecordMultiple bomb threats have been made against Alabama transportation officials, law enforcement and others in reaction to eminent domain plans for a major highway expansion project.
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Derek Lacey, Engineering News-Record
Mr. Lacey may be contacted at laceyd@enr.com
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New Rule Prohibits Use of Funds For Certain DoD Construction and Infrastructure Programs and Projects
May 30, 2018 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogRecently, our colleagues Glenn Sweatt and Alex Ginsberg published their Client Alert titled
DFARS Clause Blocks Funding for Unsafe Projects in Afghanistan, Recently published regulation implements the FY17 NDAA to prohibit use of funds for DoD construction and infrastructure programs and projects in Afghanistan that cannot be safely accessed by U.S. Government personnel. Takeaways include:
New rule prevents Government contracting officers from funding projects that are not able to be safely accessed by Government civilian or military personnel, as these may pose an increased risk of fraud, corruption or waste, or lack efficient oversight.
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Pillsbury's Construction & Real Estate Law Team
Gaps in Insurance Created by Complex Risks
January 22, 2024 —
The Hartford Staff - The Hartford InsightsFrom slips, trips and falls to extreme weather and cyberattacks, businesses are regularly confronted with risks to operations and profitability. In 2023, elevated building costs, increased flooding, and growing ransomware attacks made it compelling for business owners to make sure they had adequate insurance to stay ahead of property and liability exposures. However, if left unchecked, these trends can lead to gaps in coverage. As 2024 approaches, now is the time to assess your risk and collaborate with the right resources to fill any potential voids in insurance.
Economic inflation for example has changed property valuations, which can result in coverage gaps if policyholders have not examined their replacement costs recently.
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The Hartford Staff, The Hartford Insights
School District Client Advisory: Civility is not an Option, It is a Duty
May 13, 2014 —
Gregory J. Rolen - Haight Brown & Bonesteel LLP“I could not but wonder at the Queen’s unprecedented civility, until I realized with a flush of shame that it was my own improved behavior that motivated hers. So it is that we in life determine our own treatment.” - Catherine Gilbert Murdock
I. We Must Actively Encourage Board Civility
Over 20 years of experience representing public entities has taught me there is nothing more important than civility. On April 11, 2014, I was a featured presenter on, "How to Keep School Boards Out Of Trouble!" My initial focus was to educate the board members about open meeting laws, public records, and conflict provisions. Instead, I began by addressing board "civility." The discussion became animated. The audience was transfixed, appalled, and even amused at my examples of how uncivilized board behavior led to lawsuits, bad press, wasted resources and low morale. One attendee asked me to define civility. I meekly responded, "The Golden Rule?" "Disagreeing without being disagreeable?" My answers were inadequate. I then had a humbling epiphany. As an education law specialist, and the General Counsel of one of the largest, most diverse school districts in California, I needed to do more to foster civility among the board members I served. I had underestimated the destructive effects of incivility on my district, my colleagues, and my community.
On some level I realized that the coarsening of the discourse was taking its toll. However, I was so involved in performing my duties; I forgot to do my job. I should have taken a step back and implemented training, policies, initiatives and protocols to promote civility. I realize that it is unfortunate that we have to establish standards for adult interactions, especially for people who have promised to place service over self. As I learned, you can never fully anticipate human interactions or the complexities of the human condition. That is why I believe proactive measures to promote civility are so critical. This is not being nice for the sake of being nice. But instead, it is an absolutely vital component of effective governance. Therefore, in this essay I will discuss civility and its importance to school boards and districts. I will address the deleterious effects of board incivility. More importantly, I hope to present no-nonsense methods to cultivate civility. It is my sincere desire that others will learn from my experiences, and this time I want to do better!
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Gregory J. Rolen, Haight Brown & Bonesteel LLPMr. Rolen may be contacted at
grolen@hbblaw.com
Fifth Circuit Rules that Settlements in Underlying Action Constitute "Other Insurance"
April 17, 2019 —
Tiffany Casanova - Saxe Doernberger & Vita, P.C.The Fifth Circuit ruled that settlements between an insured and its subcontractors qualified as “other insurance” to the extent those settlements were used to pay for damages covered by an excess insurance policy. Policyholders should note the outcome of this case as it demonstrates the significant impact that settlements can have on coverage.
Satterfield & Pontikes Construction, Inc. v. Amerisure Mutual Ins. Co.1 was the result of a construction project gone wrong. Zapata County, Texas hired Satterfield & Pontikes (“S&P”) as a general contractor for the construction of a courthouse building. When the project did not go as planned, Zapata County terminated S&P, hired new subcontractors to complete the project, and sued S&P.
S&P, in turn, sought indemnification from its subcontractors, who were contractually obligated to indemnify S&P and procure insurance for any damage the subcontractors caused at the project. S&P also sought coverage from its own primary insurers, American Guarantee and Liability Insurance Company (“AGLIC”) and Amerisure Mutual Insurance Company (“Amerisure”), and its excess insurer, U.S. Fire Insurance Company (“U.S. Fire”) who provided liability coverage for S&P’s potential liabilities at the project. The policies contained exclusions for losses arising from mold and did not provide coverage for attorney’s fees or similar legal costs.
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Tiffany Casanova, Saxe Doernberger & Vita, P.C.Ms. Casanova may be contacted at
tlc@sdvlaw.com
Safety Data: Noon Presents the Hour of Greatest Danger
April 20, 2017 —
Richard Korman - Engineering News-RecordUnlike previous research into construction fatalities, a new review of three years of Labor Dept. data found that most occur between 10 am and 3 pm, with a peak at noon.
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Richard Korman, ENRMr. Korman may be contacted at
kormanr@enr.com
Potential Coverage Issues Implicated by the Champlain Towers Collapse
March 21, 2022 —
Theresa A. Guertin & Holly A. Rice - Saxe Doernberger & Vita, P.C.In June 24, 2021, the Champlain Towers South in Surfside, Florida collapsed, killing nearly 100 individuals (the “Collapse”). As experts uncover more information regarding the cause of the Collapse, those individuals who have filed lawsuits as well as the potentially culpable defendants are looking to insurers for coverage of their bodily injury and property damage claims.
Contractors, engineers, and other professionals are or anticipate being sued for their roles in the Collapse. Those professionals have professional liability policies and/or director and officer liability policies. Likewise, the condominium association’s commercial general liability (CGL) policies and its business property policy may have a duty to defend and/or indemnify their insureds as well. Finally, individual unit owners/renters may look to their homeowners’ insurance, auto insurance, health insurance, and/or life insurance policies for coverage.1
The potential breadth of insurance coverage issues raised by the Collapse is beyond the scope of this article. The article will consider some concerns that could impact insurance coverage under a standard CGL policy in the case of a building collapse.
Reprinted courtesy of
Theresa A. Guertin, Saxe Doernberger & Vita, P.C. and
Holly A. Rice, Saxe Doernberger & Vita, P.C.
Ms. Guertin may be contacted at TGuertin@sdvlaw.com
Ms. Rice may be contacted at HRice@sdvlaw.com
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