COLUMBUS OHIO BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Construction Slow to Begin in Superstorm Sandy Cases

March 12, 2014 — Beverley BevenFlorez-CDJ STAFF
U.S. Senator Robert Mendendez of New Jersey, “has called on government officials to speed up the way home rebuilding aid is reaching thousands of New Jersey victims of Superstorm Sandy,” according to CBS New York. Mendendez stated that out of the 12,000 people who have received “preliminary approval for aid” under New Jersey’s “Reconstruction, Elevation and Mitigation program,” only “2,700 have been told they can begin construction.” The storm occurred more than sixteen months ago. “Part of the problem,” Mendendez told CBS New York, “has been that state officials have placed federally required environmental and historic preservation reviews at the end of the lengthy aid application process. That delays rebuilding because federal rules allow reconstruction work to begin once those reviews are completed.” CBS New York reported that the state announced that those “using their own contractors to rebuild homes can request 50 percent of their grant in advance under the change, which went into effect Monday.” Read the court decision
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Protecting Your Business From Liability Claims Stemming From COVID-19 Exposure

June 01, 2020 — Andrew Hamelsky, Jenifer Scarcella & Joshua Tumen - White and Williams
Businesses of every nature – including grocery stores, banks, daycares, gyms and restaurants – may face increasing liability claims from customers and third parties claiming to have been exposed to the novel coronavirus, or COVID-19, while at their location. The novel virus raises issues as to whether businesses have a heightened duty of care to their customers, and what type of exposure businesses face if a customer claims to have been exposed to COVID-19 while at their premises. Recently, a lawsuit was filed against Princess Cruise lines for gross negligence in allowing passengers to be exposed to COVID-19 on a cruise ship. The lawsuit alleges that the cruise ship was allowed to go out to sea knowing that it was infected from two previous passengers who came down with symptoms of COVID-19. It further claims that the passengers were not warned of the potential exposure either before or after they boarded the ship. In other news reports around the country, business owners have reported taking extraordinary precautions to prevent customers’ risk of contracting COVID-19. For example, one grocery store recently reported that it discarded $35,000 worth of food after a customer coughed on fresh produce. Reprinted courtesy of White and Williams LLP attorneys Andrew Hamelsky, Jenifer Scarcella and Joshua Tumen Mr. Hamelsky may be contacted at hamelskya@whiteandwilliams.com Ms. Scarcella may be contacted at scarcellaj@whiteandwilliams.com Mr. Tumen may be contacted at tumenj@whiteandwilliams.com Read the court decision
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Meet the Forum's In-House Counsel: J. PAUL ALLEN

May 28, 2024 — Jessica Knox - The Dispute Resolver
Company: Fischer Homes Email: paul@jpaulallen.com Law School: Chase College of Law at Northern Kentucky University (JD 1992) States Where Company Operates/Does Business: Kentucky, Ohio, Indiana, Georgia, Missouri, Florida Q: Describe your background and the path you took to becoming in-house counsel. A: I started at a large Cincinnati firm straight out of law school. I moved in-house for a client of the firm after about 8 years and have remained in-house ever since. The in-house experience has been rewarding and varied over the last 24 years. I have worked for a Fortune 500, publicly traded steel company, a private equity led construction products company, and, finally, a family-owned residential homebuilder. I had the good fortune to be General Counsel at the last 2 in-house companies and was able to establish a legal department from scratch at Fischer Homes. As time went on and I gained experience, I stayed in-house because of the ability to work for a single client and have a greater impact on the business side of things. Read the court decision
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Reprinted courtesy of Jessica Knox, Stinson LLP
Ms. Knox may be contacted at jessica.knox@stinson.com

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U.S. Construction Value Flat at End of Summer

December 04, 2013 — CDJ STAFF
The Census Bureau has released it numbers for the value of construction put in place for September and October, and while further numbers are forthcoming, this current report shows little change. The value of construction dropped a miniscule 0.3% in September, however, residential construction actually showed a slight increase. October then showed a 0.8% increase, but then private residential construction dropped by 0.5%. In all, however, by the end of October, private residential spending was up 17.8% over the prior year. As with other sectors of public spending, public residential spending dropped 3.4% from the prior year. Read the court decision
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Staying the Course, Texas Supreme Court Rejects Insurer’s Argument for Exception to Eight-Corners Rule in Determining Duty to Defend

April 27, 2020 — John C. Eichman, Sergio F. Oehninger, Grayson L. Linyard & Leah B. Nommensen - Hunton Insurance Recovery Blog
In responding to a certified question from the Fifth Circuit in Richards v. State Farm Lloyds, the Texas Supreme Court held that the “policy-language exception” to the eight-corners rule articulated by the federal district court is not a permissible exception under Texas law. See Richards v. State Farm Lloyds, 19-0802, 2020 WL 1313782, at *1 (Tex. Mar. 20, 2020). The eight-corners rule generally provides that Texas courts may only consider the four corners of the petition and the four corners of the applicable insurance policy when determining whether a duty to defend exists. State Farm argued that a “policy-language exception” prevents application of the eight-corners rule unless the insurance policy explicitly requires the insurer to defend “all actions against its insured no matter if the allegations of the suit are groundless, false or fraudulent,” relying on B. Hall Contracting Inc. v. Evanston Ins. Co., 447 F. Supp. 2d 634, 645 (N.D. Tex. 2006). The Texas Supreme Court rejected the insurer’s argument, citing Texas’ long history of applying the eight-corners rule without regard for the presence or absence of a “groundless-claims” clause. The underlying dispute in Richards concerned whether State Farm must defend its insureds, Janet and Melvin Richards, against claims of negligent failure to supervise and instruct after their 10-year old grandson died in an ATV accident. The Richardses asked State Farm to provide a defense to the lawsuit by their grandson’s mother and, if necessary, to indemnify them against any damages. To support its argument that no coverage under the policy existed, and in turn, it had no duty to defend, State Farm relied on: (1) a police report to prove the location of the accident occurred off the insured property; and (2) a court order detailing the custody arrangement of the deceased child to prove the child was an insured under the policy. The federal district court held that the eight-corners rule did not apply, and thus extrinsic evidence could be considered regarding the duty to defend, because the policy did not contain a statement that the insurer would defend “groundless, false, or fraudulent” claims. In light of the extrinsic police report and extrinsic custody order, the district court granted summary judgment to State Farm. Reprinted courtesy of Hunton Andrews Kurth attorneys John C. Eichman, Sergio F. Oehninger, Grayson L. Linyard and Leah B. Nommensen Mr. Oehninger may be contacted at soehninger@HuntonAK.com Mr. Linyard may be contacted at glinyard@HuntonAK.com Ms. Nommensen may be contacted at leahnommensen@HuntonAK.com Read the court decision
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When a Request for Equitable Adjustment Should Be Treated as a Claim Under the Contract Disputes Act

August 29, 2022 — David Adelstein - Florida Construction Legal Updates
In federal contracting, contractors are sometimes torn about submitting a request for equitable adjustment (known as an “REA” under 48 C.F.R. 252.243-7002) or submitting a formal claim under the Contract Disputes Act (41 U.S.C. s. 7103), the latter requiring a final decision by the contracting officer and starts the clock with respect to interest and preserving rights. It is also sometimes not easy for the contracting officer receiving an REA to determine whether the REA is actually a claim under the Contract Disputes Act requiring more immediate action. This recent take by the United States Court of Appeals for the Federal Circuit hits the nail on the head:

We recognize that contracting officers will sometimes face the difficult challenge of determining whether a request for equitable adjustment is also a claim. Contractors must choose between submitting a claim—which starts the interest clock but requires the contracting officer to issue a final decision within 60 days—and submitting a mere request for equitable adjustment—which does not start the interest clock but gives the contractor more time to negotiate a settlement and possibly avoid hefty legal fees. The overlap between these two types of documents might create room for gamesmanship. For example, a contractor could submit a document that is a claim—starting the interest clock—but appears to be a mere request for equitable adjustment—causing the contracting officer to not issue a final decision within the 60-day deadline and allowing interest to accrue for months or years. But the government has tools to address this challenge: The contracting officer can communicate to the contractor that she is going to treat the document as a claim and issue a final decision within 60 days. Or the government can explicitly require the contractor to propose settlement terms and attempt to settle disputes before submitting a claim to the contracting officer for a final decision.

Zafer Construction Company v. U.S., 2022 WL 2793596, *5 (Fed.Cir. 2022).

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Rancosky Adopts Terletsky: Pennsylvania Supreme Court Sets Standard for Statutory Bad Faith Claims

September 28, 2017 — John Anooshian & Sean Mahoney - White & Williams LLP
Earlier today, in a case of first impression, the Pennsylvania Supreme Court adopted the Terletsky two-part test for proving a statutory “bad faith” claim under 42 Pa. C.S.A. § 8371, which requires that a plaintiff present “clear and convincing evidence (1) that the insurer did not have a reasonable basis for denying benefits under the policy and (2) that the insurer knew of or recklessly disregarded its lack of a reasonable basis.” Rancosky v. Washington National Insurance Company, No. 28 WAP 2016 (Pa. Sept. 28, 2017). The court further ruled that proof of an insurer’s “subjective motive of self-interest or ill-will,” while potentially probative of the second prong of the test, is not a requirement to prevail under § 8371. Evidence of an insurer’s “knowledge or reckless disregard for its lack of a reasonable basis” for denying a claim alone, according to the court, is sufficient even in cases seeking punitive damages. Reprinted courtesy of John Anooshian, Saxe Doernberger & Vita, P.C. and Sean Mahoney, Saxe Doernberger & Vita, P.C. Mr. Anooshian may be contacted at anooshianj@whiteandwilliams.com Mr. Mahoney may be contacted at majoneys@whiteandwilliams.com Read the court decision
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New York Converting Unlikely Buildings into Condominiums

July 23, 2014 — Beverley BevenFlorez-CDJ STAFF
The New York Times reported that New York has seen a boom of buildings such as power plants, churches, schools, parking garages, and theaters converted to apartment and condo spaces. Part of the reason for the surge was due to land scarcity—but the New York Times also stated that zoning on the “old-time structures are far bigger than what zoning would allow on their lots today.” Plus, “[a]daptive reuse can also be speedier.” However, Toby Moskovits, president of Heritage Equity Partners, stated that the real reason might be curb appeal: “There’s a general movement now that goes beyond real estate, a reaction to a world that’s become increasingly electronic. People are more comfortable with something that feels authentic.” Heritage Equity Partners is currently converting a church-and-school complex into apartments in Williamsburg, Brooklyn. Read the court decision
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