Understanding Lien Waivers
September 03, 2015 —
Beverley BevenFlorez-CDJ STAFFZlien on their Construction Payment Blog explained how to read a lien waiver. According to Zlien, “Lien waivers are meant to function as a sort of receipt – if a party is paid a certain amount that party waives his or her right to claim a lien for that amount. “ The blog post breaks down the types of lien waivers, including Conditional Waivers, Unconditional Waivers, Final Payment, and Progress Payment.
Once the type of waiver has been identified, Zlien suggests checking the length: “Because the party signing the lien waiver may feel obligated to sign whatever document is presented in order to get paid, unscrupulous or oblivious parties may attempt to use the lien waiver as a legal positioning tool and cram all sorts of other language into the lien waiver that really has no legitimate right or reason to be there.” Zlien recommends that if the document is long or confusing to consult an attorney.
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Utilities’ Extreme Plan to Stop Wildfires: Shut Off the Power
October 28, 2024 —
Mark Chediak - BloombergA growing number of utilities are resorting to an extreme measure to prevent their equipment from sparking catastrophic wildfires: turning off the power.
Electric companies serving about 24 million homes and businesses across the fire-prone US West now have plans to preemptively cut electricity during dangerous fire conditions, according to an analysis of
data compiled by researchers at Stanford University. The proactive blackouts, however, run counter to the power companies’ main mission — which is to keep the lights on. And that’s angering customers and officials.
Lawsuits — and the
billions of dollars of damage claims that come with them — are an
increasing concern among utilities, said Michael Wara, who leads the Climate and Energy Policy Program at Stanford University.
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Mark Chediak, Bloomberg
Green Home Predictions That Are Best Poised to Come True in 2014 and Beyond (guest post)
July 16, 2014 —
Melissa Dewey Brumback – Construction Law in North CarolinaToday, a guest post on the green design issues that are becoming realities from Penny Olmos, who is associated with Holloway Houston, Inc. a leading industrial lifting equipment manufacturing company. Welcome, Penny!
The scorching heat singed us and the winter wave chilled us — more than ever before. What are we heading to? Earthquakes, volcanoes, tsunamis, tornadoes and extreme temperatures? Mother Nature is warning us in myriad ways. And the good news is that we are heeding her calls after long. Saving our natural resources and going green has found many takers. We have seen many eco-friendly homes and buildings designed and created in the last decade. Green homes are here to stay. We look at the popular green home design and construction trends in 2014 that are about to transform the landscape of green realty.
Rise of Net Zero Energy Homes
It seemed impossible until a couple of years ago but 2014 will witness a rise in net zero energy homes. These are homes with zero net energy consumption. The total amount of energy used by these buildings annually equals the amount of renewable energy created on the property. This is the greenest and the most energy efficient house you can possess. And you do not need to cut down on any of your comforts. There are heating, cooling, entertainment and utility appliances functioning in the house like they would in any other home.
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Melissa Dewey Brumback, Construction Law in North CarolinaMs. Brumback may be contacted at
mbrumback@rl-law.com
Handling Construction Defect Claims – New Edition Released
February 11, 2013 —
CDJ STAFFA lot has changed in the twenty-seven years since the Miller Law firm first released Handling Construction Defect Claims: Western States, and those changes are reflected in the recent publication of the fourth edition. Frank H. Wu, the Chancellor and Dean of UC Hastings College of Law describes the work as “more than a scholar’s treatise, it is the first resource for construction defect plaintiff and defense attorneys; as well as mediators, arbitrators and judges — or ought to be!” In the time since the first edition, the number of homeowner associations has grown nearly ten-fold. Further, as Rachel M. Miller, a Senior Partner at the firm and one of the authors, notes, “thousands of construction defect claims are filed every year, and in most cases, the developers insurance pick up these claims.”
The book is available at Amazon at a price of $299.
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When Can a General Contractor’s Knowledge be Imputed to a Developer?
August 06, 2014 —
Zach McLeroy – Colorado Construction LitigationThe Colorado Court of Appeals recently handed down an opinion clarifying when the knowledge of a general contractor can be imputed to a developer. In the case of Jehly v. Brown, 327 P.3d (Colo. App. 2013), the Court of Appeals held that a developer cannot be held liable for fraudulent concealment when the developer has no actual knowledge of the fact or facts allegedly being concealed even if the general contractor had knowledge.
In this case, Brown, the developer, owned real property in Teller County and hired a general contractor to build a single-family house. Sometime before or during the construction, the general contractor became aware that part of the home site was located in a designated floodplain. Although the general contractor was aware that part of the home site was located in a floodplain, he continued to build the home without informing Brown of the floodplain designation.
Once the home was complete, Brown sold the property to the Jehlys. Brown completed a Seller’s Property Disclosure Form regarding the condition of the house and property, but failed to identify that the home site was located in a governmentally designated floodplain.
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Zack McLeroy, Higgins, Hopkins, McLain & Roswell, LLCMr. McLeroy may be contacted at
McLeroy@hhmrlaw.com
Economic Damages Cannot be Based On Speculation
October 16, 2018 —
David Adelstein - Florida Construction Legal UpdatesEconomic damages, unlike non-economic damages (such as those in personal injury disputes), need to rest on a reasonable basis. Economic damages are those routinely seen in a construction dispute. These damages cannot be based on conjecture or guesswork and need to be supported by competent substantial evidence. Otherwise, the economic damages will be deemed too speculative because they are not reasonably quantifiable. I recently discussed a case involving the professional boxer Canelo Alvarez that was sued by a former promoter for unjust enrichment. Although the promoter recovered a jury verdict for unjust enrichment damages against Canelo Alvarez, the verdict was reversed because the methodology utilized by the promoter to demonstrate damages was speculative. This is definitely not what a plaintiff wants to happen after prevailing at the trial level!
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Top 10 Lessons Learned from a Construction Attorney
February 18, 2015 —
Craig Martin – Construction Contractor AdvisorI have had the pleasure of working with
Cordell Parvin, who in his earlier career was a preeminent construction attorney, and now,
coaches attorneys. Cordell has shared countless construction guides and presentations with me over the years, for which I am extremely grateful. Below is Cordell’s Lesson’s Learned list, that is as true today as when he drafted it years ago.
1. Contracts and owners are not all alike. Some are fairer than others. Some create greater risks of making the budget if we encounter changes, delays and impacts. We should appreciate the risks before bidding and not underestimate indirect costs of staff to deal with these situations.
2. It is important to have a thorough understanding of the Contract Administration requirements of complex contracts. Identifying specifically what must be done when changes, delays and differing site conditions are encountered is one way to establish the understanding.
3. If a project ever ends up in court, every letter, note, e-mail and memo is evidence and will be taken out of context by the opposing lawyer. Recording every mistake, miscalculation, problem or lesson learned during construction of the project will come back to haunt you.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Federal Court Holds that Demolition Exclusion Does Not Apply and Carrier Has Duty to Defend Additional Insureds
September 02, 2024 —
Craig Rokuson - Traub LiebermanIn the recent case of
Travelers Indem. Co. v. Trisura Specialty Ins. Co., 2024 U.S. Dist. LEXIS 101953 (S.D.N.Y. June 7, 2024), the court had occasion to consider the classic additional insured fact pattern of a construction accident. Travelers insured the general contractor and provided a defense to the general contractor as well as its wholly owned subsidiary. Trisura insured the subcontractor, who employed the injured worker. Travelers brought suit, alleging that Trisura is obligated to defend and indemnify the general contractor, its subsidiary, the owner of the building (The City of New York), and the tenant.
Trisura denied any obligation to provide coverage due to the application of the “Demolition Exclusion” to the Trisura policy, which provides, in part, that there is no coverage for injury or damage arising out of the demolition of any building or structure which has original ground height in excess of three stories. The accident occurred during the interior demolition of the fifth floor of the building. The court held that the Demolition Exclusion applies only when there is a complete tearing down, razing, or destruction of an entire building. As the accident occurred during interior demolition, the exclusion did not apply.
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Craig Rokuson, Traub LiebermanMr. Rokuson may be contacted at
crokuson@tlsslaw.com