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    To Bee or Not to Bee - CA Court Finds Denial of Coverage Based on Exclusion was Premature Where Facts had not been Judicially Determined

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    Fairfield, Connecticut

    UPDATE - McMillin Albany LLC v. Superior Court

    June 05, 2017 —
    The matter has been fully briefed since last year and the construction industry anxiously awaits the California Supreme Court's highly anticipated decision regarding McMillin Albany LLC v. Superior Court (2015) 239 Cal.App.4th 1132. Numerous amicus briefs have also been filed including one by the Association of Southern California Defense Counsel, with the immediate past president of the organization, CGDRB's Glenn T. Barger, Esq., listed as the attorney of record. The Supreme Court will consider the issue of whether the Right to Repair Act (SB800) is the exclusive remedy for all defect claims arising out of new residential construction sold on or after January 1, 2003, thereby resolving the split of authority presented by the Fifth Appellate District's holding in McMillin Albany, which outright rejected the Fourth Appellate District's holding in Liberty Mutual Insurance Co. v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 98, on this particular issue. Oral argument is still pending and CGDRB will continue to closely monitor the progress of this case. Stay tuned. Reprinted courtesy of Chapman Glucksman Dean Roeb & Barger attorneys Richard H. Glucksman, Glenn T. Barger and David A. Napper Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com Mr. Barger may be contacted at gbarger@cgdrblaw.com Mr. Napper may be contacted at dnapper@cgdrblaw.com Read the court decision
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    EEOC Suit Alleges Site Managers Bullied Black Workers on NY Project

    June 15, 2020 —
    Bullying, threats and racial slurs detail alleged “hostile” working conditions for black employees at a now complete cement plant modernization project near Albany, N.Y., in a lawsuit filed June 2 by the U.S. Equal Employment Opportunity Commission against CCC Group Inc., a San Antonio, Texas-based general contractor. Emell D. Adolphus, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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    Reprinted courtesy of

    Research Project Underway to Prepare Water Utilities for Wildfire Events

    January 23, 2023 —
    PORTLAND, Ore., January 17, 2023 — A multi-disciplinary team of utilities, academia, and consultants have convened to develop a study and publish guidance to improve water treatment resilience against the impacts of forest fires. Critical to water security, forested watersheds provide 75 percent of the world’s accessible freshwater (Food and Agriculture Organization of United Nations 2021) and supply drinking water for more than two-thirds of North American consumers (EPA 2019). The frequency and severity of forest fires have been increasing globally with warming temperatures and shifting precipitation patterns due to climate change. Wildfires can cause costly, long-term water treatment issues that push water treatment processes beyond their design and operational response capabilities. Such issues include filtration effectiveness, disinfection efficacy, the elevation of disinfection by-product formation, and increased bioavailable phosphorus leading to problematic cyanobacterial/algal blooms. Led by a principal research team of Lynn Stephens (Brown and Caldwell), Dr. Mac Gifford and Yone Akagi (Portland Water Bureau), and Dr. Monica Emelko (University of Waterloo), Water Research Foundation (WRF) project #5168 is funded by the foundation’s Emerging Opportunities Program and the Portland Water Bureau (PWB). About The Water Research Foundation The Water Research Foundation (WRF) is the leading research organization advancing the science of all water to meet the evolving needs of its subscribers and the water sector. WRF is a nonprofit, educational organization that funds, manages, and publishes research on the technology, operation, and management of drinking water, wastewater, reuse, and stormwater systems—all in pursuit of ensuring water quality and improving water services to the public. For more information, visit www.waterrf.org About Brown and Caldwell Headquartered in Walnut Creek, Calif., Brown and Caldwell is a full-service environmental engineering and construction services firm with 52 offices and more than 1,700 professionals across North America and the Pacific. For over 75 years, our creative solutions have helped municipalities, private industry, and government agencies successfully overcome their most challenging water and environmental obstacles. As an employee-owned company, Brown and Caldwell is passionate about exceeding our clients’ expectations and making a difference for our employees, our communities, and our environment. For more information, visit www.brownandcaldwell.com Read the court decision
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    EEOC Chair Issues New Report “Building for the Future: Advancing Equal Employment Opportunity in the Construction Industry”

    June 05, 2023 —
    WASHINGTON – The U.S. Equal Employment Opportunity Commission (EEOC) Chair Charlotte A. Burrows issued a report today titled, “Building For The Future: Advancing Equal Employment Opportunity in the Construction Industry.” The report provides findings and next steps based on the agency’s enforcement experience, witness testimony presented at the EEOC’s May 2022 hearing on discrimination and harassment in construction and other Commission hearings, and academic research. “The recent historic federal infrastructure investments provide a once-in-a-generation opportunity to break down barriers and expand opportunity in the construction industry,” said EEOC Chair Charlotte A. Burrows. “While discrimination has long been an issue in the industry, we can decide the future. I look forward to working with industry leaders, employers, and unions to help ensure safe and inclusive workplaces for all workers.” Read the court decision
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    Private Project Payment Bonds and Pay if Paid in Virginia

    January 05, 2017 —
    One of the many items of construction law that has always been about as clear as mud has been the interaction between a contractual pay if paid clause and payment bond claims either under the Federal Miller Act or Virginia’s “Little Miller Act.” While properly drafted contractual “pay if paid” clauses are enforceable by their terms in Virginia, what has always been less clear is whether a bonding company can take advantage of such a clause when defending a payment bond claim. As always, these questions are very fact specific both under the Federal Act and the state statute. I wish that this post would answer this question, but alas, it will not. A recent case from the City of Roanoke, Virginia looked at the interaction between a payment bond and a “condition precedent” pay if paid clause as it relates to a private project that is not subject to the Little Miller Act. In the case of IES Commercial, Inc v The Hanover Insurance Company, the Court examined a contractual clause between Thor Construction and IES Commercial in tandem with the bond language between Hanover Insurance Company and Thor as it related to a surprisingly familiar scenario. The general facts are these: IES performed, Thor demanded payment from the owner for the work that IES performed and the owner, for reasons that are left unstated in the opinion, refused to pay. IES sues Hanover pursuant to the payment bond and Hanover moves to dismiss the suit because Thor hadn’t been paid by the owner and therefore Hanover could take advantage of the pay if paid language. Read the court decision
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    Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
    Mr. Hill may be contacted at chrisghill@constructionlawva.com

    Former SNC-Lavalin CEO Now Set for Trial in Bribe Case

    December 11, 2018 —
    Pierre Duhaime, the former CEO of Canadian design-build giant SNC-Lavalin—who resigned from the firm in 2012 in the wake of a contracting bribery scandal in which he was arrested for his alleged role—is now set for a February trial start in Quebec Superior Court. The case relates to payoffs on one project, a multibillion-dollar Montreal hospital on which the firm led the public-private construction consortium. Read the court decision
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    Reprinted courtesy of Debra K. Rubin, ENR
    Ms. Rubin may be contacted at rubind@enr.com

    Liability Coverage for Claims of Publishing Secret Data Does Not Require Access by Others

    April 20, 2016 —
    On April 11, 2016, the United States Court of Appeals for the Fourth Circuit concluded that general liability insurance covered claims alleging that an insured was negligent in securing private medical records, even where there was no evidence that any third parties had actually viewed the underlying plaintiffs’ medical records. This “unpublished” decision was issued in Travelers Indemnity Company of America v. Portal Healthcare Solutions, LLC less than three weeks after the court heard oral argument. Portal Healthcare accordingly stands for the proposition that “publication” within the meaning of the standard commercial general liability coverage for “personal and advertising injury” only requires that claims against an insured allege that confidential information was made available to the public, without allegations that any third party actually accessed it, to trigger the insurer’s duty to defend. Reprinted courtesy of Sean Mahoney, White & Williams LLP and Laura Schmidt, White & Williams LLP Mr. Mahoney may be contacted at mahoneys@whiteandwilliams.com Ms. Schmidt may be contacted at schmidtl@whiteandwilliams.com Read the court decision
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    Construction Defect Disputes: Know Your Measure of Damages!!!!!

    January 21, 2025 —
    Remember this: know your measure of damages in a construction defect dispute. If you don’t, as shown below, the outcome can be unforgiving. The measure of damages is one of your most important elements of proof. You are filing suit for damages; thus, knowing what you can reasonably recovery is paramount. In a recent dispute, Bandklayder Development, LLC v. Sabga, 50 Fla.L.Weekly D91e (Fla. 3d DCA 2025), a residential developer sold a single-family house while it was under construction in an as-is purchase agreement. Post-closing, the purchasers claimed defects and served a Florida Statutes Chapter 558 notice of construction defects letter. The purchaser subsequently initiated a construction defect lawsuit. During the nonjury trial, the purchaser’s expert testified that the purchasers suffered damages approximating $323,000 calculated as of January 19, 2022 (which was the date of the expert’s report). The expert further testified that the cost to finish the incomplete/defective work increased by 35% at the date of the May 2023 trial. However, the expert never testified as to the amount of damages as of the date of the contractual breach, which at the latest, would have been in April 2018 when the notice of construction defects letter was sent (or, at its earliest, June 2017 when closing occurred). At trial, the judge entered judgment for the purchasers in the amount of about $425,0000. This was reversed on appeal with judgment to be entered in favor of the developer. Why? Because the purchasers employed the wrong measure of damages and the only thing that prevented them from introducing the right measure of damages was within their control. Harsh outcome for not applying the correct measure of damages! Read the court decision
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    Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
    Mr. Adelstein may be contacted at dma@kirwinnorris.com