Appellate Division Confirms Summary Judgment in Favor of Property Owners in Action Alleging Labor Law Violations
June 19, 2023 —
Lisa M. Rolle - Traub LiebermanIn this action brought before the State of New York, Appellate Division, Traub Lieberman Partner Lisa Rolle represented Defendant Property Owners in an appeal asserting Labor Law violations. In the underlying case, Plaintiff allegedly was injured while working on a construction project at a property owned by the Defendants, alleging violations of Labor Law §§240(1) and 241(6). The Defendants moved for summary judgment dismissing the causes of action alleging violations of Labor Law §§ 240(1) and 241(6), arguing that they could not be held liable for such violations due to the exemption set forth in those statutes for owners of one- and two-family dwellings. The Supreme Court of the State of New York granted the motion for summary judgment, and the Plaintiffs appealed.
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Lisa M. Rolle, Traub LiebermanMs. Rolle may be contacted at
lrolle@tlsslaw.com
Pennsylvania Supreme Court Reaffirms Validity of Statutory Employer Defense
March 31, 2014 —
Michelle Coburn and Michael Jervis – White and Williams LLPIn Patton v. Worthington Associates, Inc., the Pennsylvania Supreme Court reaffirmed the continuing validity of the longstanding statutory employer doctrine and related five-part test of McDonald v. Levinson Steel Co. In doing so, the court overruled the Superior Court and held that Worthington was immune from tort liability as the statutory employer of plaintiff Earl Patton.
Worthington was the general contractor for a project to construct an addition to a church. Worthington subcontracted with Patton Construction, Inc. to perform carpentry work. Earl Patton was an employee and the sole owner of Patton Construction, Inc. He was injured in a scissor lift accident while performing work on the church. Patton sued Worthington alleging failure to maintain safe conditions at the worksite. After a trial, a jury awarded Patton and his wife a little more than $1.5 million in damages.
Before trial, Worthington had moved for summary judgment arguing that it was Patton’s statutory employer and thus immune from tort liability under Pennsylvania’s Workers’ Compensation Act. Under that law, general contractors are secondarily liable for payment of workers’ compensation benefits to employees of subcontractors. Like traditional employers, statutory employers are immune from tort liability for work-related injuries in situations where they are secondarily liable for workers’ compensation payments.
Reprinted courtesy of
Michelle Coburn, White and Williams LLP and
Michael Jervis, White and Williams LLP
Ms. Coburn may be contacted at coburnm@whiteandwilliams.com; Mr. Jervis may be contacted at jervism@whiteandwilliams.com
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Ex-Pemex CEO Denies Allegations of Involvement in Brazil Scandal
April 13, 2017 —
Carlos M Rodriguez & Juan Pablo Spinetto - Bloombergormer Petroleos Mexicanos Chief Executive Officer Emilio Lozoya denied participating in an alleged bribery scheme involving Brazilian construction company Odebrecht SA in Mexico, after Veja magazine reported the executive was mentioned in connection with an ongoing corruption probe.
"I haven’t requested nor have I received illegal money," Lozoya said in an emailed response to questions by Bloomberg News on Wednesday. "I reiterate my interest in having this matter investigated and penalties issued, but without dishonoring and defaming without proof along the way."
In a report this week, Brazilian magazine Veja cited court documents suggesting the former Pemex CEO allegedly requested a $5 million illegal payment to Odebrecht, Latin America’s biggest construction company, to obtain benefits in Mexico. Veja says it based its reporting on portions of a plea-bargain agreement between prosecutors and a former top executive at Odebrecht. The allegations are part of a three-year, sweeping corruption probe in Brazil known as Operation Carwash.
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Carlos M Rodriguez, Bloomberg and
Juan Pablo Spinetto, Bloomberg Read the court decisionRead the full story...Reprinted courtesy of
A Retrospective As-Built Schedule Analysis Can Be Used to Support Delay
May 23, 2022 —
David Adelstein - Florida Construction Legal UpdatesDelay claims are part of construction. There should be no surprise why. Time is money. A delay claim should be accompanied by expert opinions that bolster evidence that gets introduced. The party against whom the delay claim is made will also have an expert – a rebuttal expert. Not surprisingly, each of the experts will rely on a different critical path as to relates to the same project. The party claiming delay will rely on a critical path that shows the actions of the other party impacted their critical path and proximately caused the delay. This will be refuted by the opposing expert that will challenge the critical path and the actions claimed had no impact on the critical path (i.e., did not proximately cause the delay). Quintessential finger pointing!
This was the situation in CTA I, LLC v. Department of Veteran Affairs, CBCA 5826, 2022 WL 884710 (CBCA 2022), where the government terminated the contractor for convenience and the contractor claimed equitable adjustments for, among other things, delay. The contractor’s expert relied on an as-built critical path analysis by “retrospectively creating updates to insert between the contemporaneous updates.” Id., supra, n.3. The government’s expert did not do a retrospective as-built analysis and relied on only contemporaneous schedule updates. Id.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Property Damage Caused By Construction Next Door Covered as Ensuing Loss
July 16, 2014 —
Tred R. Eyerly – Insurance Law HawaiiDamage to the insureds' property caused by construction undertaken on the adjacent lot was covered under the insureds' property policy. Chubb Indem. Ins Co. v. 21 E. Cedar, 2014 U.S. Dist. LEXIS 79906 (N.D. Ill. June 12, 2014).
The insureds' home sustained damage contemporaneous with demolition, excavation, and construction taking place on a adjacent lot. Chubb paid benefits to the insureds for their loss, and then sought to recover as subrogee from the defendants who performed the construction.
The defendants argued there was no coverage under Chubb's policy. Faulty planning, construction or maintenance were excluded. An exception to the exclusion stated, however, "we do insure ensuing covered loss unless another exclusion applies." Defendants argued characterizing the damages as ensuing losses was purely semantic and self-serving, designed to involve the ensuing loss provision in order to protect Chubb's coverage determination. Chubb contended the exclusion applied only to the specific property being insured and not to a neighbor's property where work is being performed. Therefore, the faulty construction exclusion did not apply and the ensuing loss provision was triggered.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Delaware River Interstate Bridge Shut to Assess Truss Fracture
January 26, 2017 —
Justin Rice - Engineering News-RecordThe Delaware River Bridge, which runs between Pennsylvania and New Jersey, was shut down indefinitely over the Jan. 22-23 weekend, after a large fracture was discovered in the bridge that connects the turnpikes of the two states. The fracture on a steel truss below the bridge deck on the Pennsylvania side was discovered during a routine check as part of a painting operation. Steel plates were installed to temporarily reconnect the fracture and stabilize the 1.5-mile bridge, which is located in Bucks County on I-276 and accommodates 42,000 vehicles a day. As engineers assess how the damage will impact the entire bridge, a sample from the fractured truss was sent to a forensic lab to determine the cause of the crack. A high-definition video survey is being used to monitor the bridge.
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Justin Rice, ENRMr. Rice may be contacted at
ricej@enr.com
California Contractor Spills Coffee on Himself by Failing to Stay Mechanics Lien Action While Pursuing Arbitration
August 14, 2018 —
Garret Murai - California Construction Law BlogIt bugs the Mrs. that I have a habit of reading the directions. “Just plug the darn thing in!” said the Mrs. when we got a new coffee maker to replace our old one which we’ve had since I think before we were married (Life Lesson No. 347: Get a coffee maker you really, really like because they last forever). “But . . . the directions?,” I said.
By the time I had finished reading the instruction manual I could smell the coffee brewing in the kitchen. Granted, the Mrs. is more practical than I am in many ways (e.g., “You know, you didn’t need to buy 10 cans of corn to get the 10 for $10 discount. I guess you’re going to be eating a lot of corn”). But still. What might have happened if there was a serious coffee mishap?
And worrier as I may be mishaps can happen if you don’t read the directions. James Zenovic didn’t read the directions, and here’s his story . . .
Von Becelaere Ventures, LLC v. Zenovic
In Von Becelaere Ventures, LLC v. Zenovic, Case No. D072620 (June 6, 2018), James Zeonovic doing business as James Zeonovic Construction entered into a construction contract to build a single-family house for Von Becelaere Ventures, LLC in Laguna Beach, California. The construction contract included an arbitration provision that stated:
If any dispute arises concerning this Contract or the interpretation thereof, of concerning construction of the Improvements, or the Limited Warranty, customer service, defects, damages, or obligations therewith (a “Construction Dispute”), such Construction Dispute will be settled by binding arbitration. Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Critical Materials for the Energy Transition: Of “Rare Earths” and Even Rarer Minerals
September 12, 2022 —
Robert A. James, Ashleigh Myers, Shellka Arora-Cox & Amanda G. Halter - Gravel2Gavel Construction & Real Estate Law BlogAs the world pursues ambitious net-zero carbon emission goals, demand is soaring for the critical materials required for the technologies leading the energy transition. Lithium may be the most well-known of these inputs due to its usage in batteries for vehicles and consumer electronics, but roughly 50 other minerals are central to energy transition technologies. During the coming years, producers, manufacturers and end-users will be increasingly exposed to the roles played by “rare earth” elements (roughly, atomic numbers 57 to 71), platinum group metals, and other materials.
The reasons for this heightened interest are simple—even if the underlying environmental, political and technological forces at play are complex:
- Lower-carbon technologies use different materials than carbon-intensive technologies.
The mineral requirements of power and mobility systems driven by renewable, nuclear, hydrogen and fusion energy are profoundly different from those forming the backbone of fossil fuel systems. Minerals such as lithium, nickel, copper, cobalt, and rare earth elements are vital for electric vehicles (EVs), batteries, fuel cells, electricity grids, wind turbines, smart devices, and many other essential and proliferating civilian and military technologies. For example, an offshore wind plant needs 13 times more mineral resources than a gas power plant of a similar size.
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Robert A. James, Pillsbury,
Ashleigh Myers, Pillsbury,
Shellka Arora-Cox, Pillsbury and
Amanda G. Halter, Pillsbury
Mr. James may be contacted at rob.james@pillsburylaw.com
Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com
Ms. Arora-Cox may be contacted at shellka.aroracox@pillsburylaw.com
Ms. Halter may be contacted at amanda.halter@pillsburylaw.com
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