Settlement Conference May Not Be the End in Construction Defect Case
February 21, 2013 —
CDJ STAFFThe builder has been sentenced to jail for theft. The building has been condemned over construction defects. And the settlement conference probably won’t bring an end to the case. The building in question is a condominium complex, located at 770 Sandy Street in Norristown, Pennsylvania. Bruce Fazio took out a $2.5 million construction loan to build it. And when it was done, there were inspections over construction defects, the building was condemned, and then the court ordered repair work. The city of Norristown has sued Fazio to recover the more than $1.5 million it took to repair the building and allow at least some condominium owners to move back in.
The suit alleges that Norristown officials failed to properly inspect the construction work, and that inspectors were not properly certified. Further, it is alleged that secretaries and clerks signed off on inspection reports and certificates of occupancy.
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Florida's New Pre-Suit Notification Requirement: Retroactive or Prospective Application?
February 05, 2024 —
Holly A. Rice - Saxe Doernberger & Vita, P.C.Florida’s newly formed Sixth District Court of Appeal (“Sixth DCA”) recently certified conflict with Florida’s Fourth District Court of Appeal on the issue of retroactive application of the pre-suit notice requirement contained in Florida Statute §627.70152.1 Earlier this year, the Fourth District Court of Appeal (“Fourth DCA”) held that the pre-suit notice provision applies retroactively, meaning, it applies to all suits filed after July 1, 2021, regardless when the insurance policy was issued.2 The Sixth DCA, in
Hughes v. Universal Property & Casualty Insurance Company,3 directly rejected the Fourth DCA’s interpretation and instead found a retroactive application of the pre-suit notice to be unconstitutional under Florida law. Prior to the Fourth DCA’s ruling, most trial courts had found no retroactive application for the pre-suit notice provision.4
In August 2021, shortly after Florida Statutes Section 627.70152 went into effect on July 1, 2021, Rebecca Hughes (“Hughes”) sued Universal Property & Casualty Insurance Company (“Universal Property”) for breach of contract after Universal Property denied her insurance claim. Hughes did not file a pre-suit notice under Section 627.70152. Universal Property moved to dismiss based on Hughes’ failure to file the pre-suit notice, arguing that the pre-suit notice requirement applies to all lawsuits filed after July 1, 2021, even if the claimant’s insurance policy was issued before the statute’s effective date. The trial court agreed with Universal Property and dismissed the lawsuit.
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Holly A. Rice, Saxe Doernberger & Vita, P.C.Ms. Rice may be contacted at
HRice@sdvlaw.com
Construction Contract Clauses That May or May Not Have Your Vote – Part 3
November 23, 2016 —
Garret Murai – California Construction Law BlogScope, time and cost provisions may be the most important clauses in your construction contract but they’re not the only ones which can impact your bottom line. The third in a multi-part series, here are some other important construction contract clauses that may determine whether you come out a winner.
Provision: Supervisory Personnel, Employees, and Authority to Bind Provisions
- Typical Provision: ”At all times during performance of the Work, Subcontractor shall have at the job site a competent supervisor approved by Owner. Subcontractor’s supervisor shall be deemed a representative of Subcontractor and all communications given to Subcontractor’s supervisor shall be as binding as if such communications were given to Subcontractor. Should Contractor object to Subcontractor’s supervisor’s presence at the job site, or the presence at the job site, or the presence at the job site of any other employee or agent of Subcontractor or any employee or agent of Subcontractor of Subcontractor, Subcontractor shall cause such persons to be replaced immediately as directed by Contractor.”
- What it Means: Higher-tiered parties have a legitimate interest in ensuring that only competent individuals are allowed to perform work on a project and in ensuring that there are peaceable relations at a job site. Higher-tiered parties also have an interest in ensuring that directives and agreements made and reached in the field are followed. However, it is unreasonable for higher-tiered party or to require that such personnel be able to bind that lower-tiered party to agreements best decided by others.
- What You Can Do: Lower-tiered parties should seek to include language which provides that only “reasonable” changes to personnel are allowed and, as necessary, limit by category or issue the types of items on-site personnel can bind the lower-tiered party to.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Kahana Feld Receives 2024 OCCDL Top Legal Organizations for DEI Award
September 30, 2024 —
Linda Carter - Kahana FeldIRVINE, CA – Sep. 12, 2024 – Kahana Feld is pleased to announce that the firm received the 2024 Top Legal Organizations for DEI Award from the Orange County Coalition for Diversity in the Law (OCCDL). The firm will be recognized at an awards gala at The Westin South Coast Plaza on October 3.
Each year, the OCCDL recognizes individuals and organizations who have advanced diversity, equity, and inclusion in the Orange County legal community, whether through their excellence in the law or their direct efforts to promote DEI. Kahana Feld was recognized for programs such as its DEI book club and its regular webinars on topics like implicit bias. The firm supports various DEI organizations and initiatives in the Orange County area, including the Orange County Asian American Bar Association, the Orange County Women Lawyers Association, and the Jewish Federation of Orange County.
The OCCDL is a collaborative effort of professionals from leading Orange County law firms and other community partners promoting the advancement of diverse attorneys in Orange County. The OCCDL partners with local schools and organizations to increase community involvement and provides education focused on diversity to students and attorneys.
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Linda Carter, Kahana FeldMs. Carter may be contacted at
lcarter@kahanafeld.com
Spearin Doctrine: Alive, Well and Thriving on its 100th Birthday
January 15, 2019 —
John P. Ahlers - Ahlers Cressman & Sleight PLLCOn December 9, 2018, United States v. Spearin, [1] a landmark construction law case, will be 100 years old. The Spearin “doctrine”[2] provides that the owner impliedly warrants the information, plans and specifications which an owner provides to a general contractor. The contractor will not be liable to the owner for loss or damage which results from insufficiencies or defects in such information, plans and specifications.
Some construction lawyers questioned whether the Spearin doctrine was still viable in Washington after the Washington Court of Appeals decided the recent case of King County v. Vinci Constr. Grand Projets.[3] Some concerned contractor industry groups even considered a “statutory fix” in the wake of the Court of Appeals Vinci decision. It is our opinion that the facts in the Vinci case are distinguishable and the Spearin doctrine is alive and thriving in Washington.
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John P. Ahlers, Ahlers Cressman & Sleight PLLCMr. Ahlers may be contacted at
john.ahlers@acslawyers.com
Hyundai to Pay 47M to Settle Construction Equipment's Alleged Clean Air Violations
November 04, 2019 —
Tom Ichniowski - Engineering News-RecordHyundai Construction Equipment Americas Inc. and its parent company are paying a $47-million civil penalty to settle federal allegations that the company sold construction vehicles that weren't certified to meet the appropriate Clean Air Act emissions standards, federal agencies say.
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Tom Ichniowski, Engineering News-Record
Mr. Ichniowski may be contacted at ichniowskit@enr.com
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California Court of Appeal Clarifies Intent of Faulty Workmanship Exclusions
October 26, 2017 —
Tiffany Casanova – Saxe Doernberger & Vita, P.C.Last month, in Global Modular, Inc. v. Kadena Pacific, Inc., 1 a California Court of Appeal clarified the meaning of the frequently asserted j.(5) and j.(6) exclusions of the standard commercial general liability policy; an issue the court deemed one of “first impression” for the state. The court took a close look at how courts nationwide handle the exclusions and relied on the policy language to come to a policyholder-friendly decision.
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Tiffany Casanova, Saxe Doernberger & Vita, P.C.Ms. Casanova may be contacted at
tlc@sdvlaw.com
Is There a Conflict of Interest When a CD Defense Attorney Becomes Coverage Counsel Post-Litigation?
September 01, 2011 —
Chad Johnson of Higgins, Hopkins, McLain & Roswell, LLCIn Weitz Co., LLC v. Ohio Cas. Ins. Co., the U.S. District Court for the District of Colorado was asked to rule on a motion to disqualify counsel in an insurance coverage action. 11-CV-00694-REB-BNB, 2011 WL 2535040 (D. Colo. June 27, 2011). Motions to disqualify counsel are viewed with suspicion, as courts “must guard against the possibility that disqualification is sought to ‘secure a tactical advantage in the proceedings.’” Id. at *2 (citing Religious Technology Center v. F.A.C.T. Net, Inc., 945 F. Supp. 1470, 1473 (D. Colo. 1996).
Weitz Company, LLC (“Weitz”) is a general contractor and defendant in an underlying construction defect suit which had concluded before the action bringing rise to this order. In the underlying action, Weitz made third-party claims against subcontractors, including NPW Contracting (“NPW”). Weitz was listed as an additional insured under NPW’s policies with both Ohio Casualty Insurance Company and Mountain States Mutual Casualty Company (collectively “the Carriers”). The Carriers accepted Weitz’s tender of defense under a reservation of rights. However, neither insurance carrier actually contributed to Weitz’s defense costs in the underlying action. At the conclusion of the construction defect action, the parties unsuccessfully attempted to apportion the attorney’s fees and costs. Eventually, Weitz brought suit against the recalcitrant carriers. The Lottner firm, which had previously represented Weitz in the underlying construction defect action, continued to represent Weitz in this coverage action.
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Reprinted courtesy of Higgins, Hopkins, McLain & Roswell, LLC. Mr. Johnson can be contacted at johnson@hhmrlaw.com
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