Deadly Fire in Older Hawaii High-Rise Causes Sprinkler Law Discussion
July 19, 2017 —
David Suggs – Bert L. Howe & Associates, Inc.Last Friday, at least three people died and twelve were injured during a fire at a Honolulu high-rise that did not have sprinklers, according to CBS News. The fire began on the 26th floor and spread to at least the 28th floor and several units, the Honolulu Fire Department spokesman, Captain David Jenkins, stated.
“Without a doubt if there were sprinklers in this apartment, the fire would be contained to the unit of origin,” Captain Jenkins concluded, as reported by CBS News.
The Marco Polo development “was built four years before Honolulu required fire sprinkler systems in new residential high-rises,” the LA Times reported. “In 2005, the Honolulu City Council created a task force to estimate the cost of retrofitting and installing fire sprinkler systems in about 300 residential condominium buildings. A report estimated that retrofitting the Marco Polo would cost $4,305.55 for each unit.” A separate report estimated the cost would be $4.5 million to retrofit the entire building.
According to Samuel Dannway, chief fire protection engineer for Coffman Engineers in Honoloulu, stated that the owners “lobbied strongly against any retrofitting” due to cost.
Retrofitting sprinklers is more challenging in residential high-rises than office buildings, Glenn Corbett, associate professor of fire science at John Jay College of Criminal Justice in New York told the LA Times. “Wall after wall, you have to penetrate with piping, and that means moving people around in apartments,” Corbett said. “They can’t live there while workers are drilling holes in their walls.”
Mayor Kirk Caldwell stated that Honolulu “needs to look at passing a new law requiring sprinklers in older high-rises.”
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Overtime! – When the Statute of Limitations Isn’t Game Over For Your Claim
August 07, 2022 —
Bradley E. Sands, Jones Walker LLP - ConsensusDocsStatutes of limitations establish the period of time within which a claimant must bring an action after it accrues. An action can be filing a lawsuit and, in some instances, filing a demand for arbitration. But a multi-year construction project could be longer than the applicable statute of limitations. For example, under Delaware or North Carolina law, the statute of limitations for a breach of contract is only three years.1 So a claim for breach of a construction contract that occurred (i.e. accrued) at the beginning of a four-year project under Delaware or North Carolina law may expire before the project is completed.
Generally, a claim accrues at the time of the breach (however, it is important to note that this is not always the case and claim accrual could be the subject of an entirely different article). During the course of a multi-year construction project, proposed change orders or claims for additional compensation can sit, unanswered or unpursued, for months. Or, the parties may informally agree as part of regular project communications to put off dealing with a claim head-on until the end of the project. On certain projects, slow-walking a claim is understandable, as a contractor may be hesitant to sue an owner in the middle of a multi-year project and risk upsetting an otherwise good working relationship. But a delay in formally asserting a put-off claim after it accrues could result in the claim falling subject to a statute of limitations defense.
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Bradley E. Sands, Jones Walker LLP (ConsensusDocs)Mr. Sands may be contacted at
bsands@joneswalker.com
ASCE Statement on Biden Administration Permitting Action Plan
May 23, 2022 —
Dennis D. Truax, President, American Society of Civil Engineers (ASCE)Washington, DC. – ASCE applauds the Biden Administration for the development of their new Permitting Action Plan aimed at accelerating the federal permitting and environmental review process for major infrastructure projects across the country.
The plan leverages permitting provisions that were included in the Infrastructure Investment and Jobs Act and aims to ensure that the federal environmental review and permitting processes will be efficient, transparent, guided by science, and shaped by meaningful input from the public and government agencies.
One of the key recommendations in the 2021 Report Card for America's Infrastructure was to streamline the project permitting process across infrastructure sectors, while ensuring appropriate safeguards and protections are in place. Therefore, ASCE believes that the most recent plan is a step in the right direction to ensure that projects can be delivered on-time, and on-budget, while maintaining the rigorous environmental review process.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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Coverage Rejected Under Owned Property and Alienated Property Exclusions
June 06, 2011 —
Tred R. EyerlyThe insured’s request for a defense when sued in a construction defect action was denied under the owned property exclusion and the alienated property exclusion in1777 Lafayette Partners v. Golden Gate Ins. Co., 2011 U.S. Dist. LEXIS 48562 (N.D. Cal. April 29, 2011).
In 1999, Lafayette Partners purchased an abandoned walnut processing factory to convert into living and working units. The property was developed into a rental property from 2000-2001, and thereafter rented. In May 2003, Lafayette Partners entered into a sales agreement with Wolff Enterprises LLC. The sale closed in February 2005. Wolff then converted the rental units into condominiums.
In December 2007, the Walnut Factory Owners Association sued Wolff for construction defects. In Lafayette Partners was added to the suit in 2009. The suit alleged a variety of defective conditions, including the roofs, exteriors, windows, electrical , plumbing, and mechanical components and systems.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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DOI Aims to Modernize its “Inefficient and Inflexible” Type A Natural Resource Damages Assessment Regulations
March 25, 2024 —
Amanda G. Halter, Jillian Marullo & Ashleigh Myers - Gravel2Gavel Construction & Real Estate Law BlogThe U.S. Department of the Interior (DOI) published a
proposed rule aimed at modernizing and streamlining the “Type A” Natural Resource Damage Assessment (NRDA) regulations under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and the Clean Water Act (CWA). (The comment deadline was later
extended.) The revisions,
first previewed in a January 2023 Advanced Notice of Proposed Rulemaking (ANPR), are intended to fulfill “the original statutory purpose of providing a streamlined and simplified assessment process” with the overarching goal of facilitating settlements and expediting restoration efforts following injury resulting from pollution in a broader range of cases.
The NRDA regulations provide two paths to assessing natural resource damages (NRD): (1) the more complex, site-specific Type B procedures for detailed NRDAs and (2) what is intended to be the standard, simplified Type A assessment procedures requiring minimal field observation. Particularly, the Type A process is reserved for two specific aquatic environments (coastal and marine areas or Great Lakes environments) when a relatively minor release of a single hazardous substance occurs, resulting in a smaller scale and scope of natural resource injury, and the rebuttal presumption for the Type A procedure is limited to damages of $100,000 or less under the current version of the rule.
Reprinted courtesy of
Amanda G. Halter, Pillsbury,
Jillian Marullo, Pillsbury and
Ashleigh Myers, Pillsbury
Ms. Halter may be contacted at amanda.halter@pillsburylaw.com
Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com
Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com
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Eleventh Circuit Finds Professional Services Exclusion Applies to Construction Management Activities
April 29, 2024 —
Ashley Kellgren - Traub Lieberman Insurance Law BlogIn Colony Ins. Co. v. Coastal Constr. Mgmt., LLC, 2024 U.S. App. LEXIS 4809 (11th Cir. Feb. 29, 2024), the Eleventh Circuit found the insurer had no duty to defend or indemnify its insured based on a professional services exclusion. In that case, the underlying claims arose out of the construction of a four-story apartment complex. The owner and project developer contracted with the insured to provide construction management services as a construction manager and construction consultant. Several years after the project was completed, the owner filed suit against the architect, general contractor, and the insured alleging numerous defects and deficiencies with respect to the project. The owner asserted claims against the insured for breach of contract and negligence, alleging various failures by the insured in connection with its supervision of construction and failures to properly and timely complete the project, and correct inadequate, defective, and noncomplying work.
Colony issued two commercial general liability policies to the insured, both of which contained a professional services exclusion. Although the policy did not expressly define “professional services,” the professional services exclusion provided a non-exhaustive list of examples, including:
(2) preparing, approving, or failing to prepare or approve maps, drawings, opinions, reports, surveys, change orders, designs or specifications;
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Ashley Kellgren, Traub LiebermanMs. Kellgren may be contacted at
akellgren@tlsslaw.com
Out of the Black
May 30, 2022 —
John Drentlaw - Construction ExecutiveEven if you previously weren’t familiar with the term “black swan event,” you’ve likely become intimately familiar with what one looks like over the past two years. Coined by author Nassim Taleb in his book The Black Swan: The Impact of the Highly Improbable, the term refers to a rare, unpredictable event—perhaps, say, a pandemic—that has an extreme impact.
“Extreme” certainly seems to be an accurate description of the impact that the COVID-19 pandemic has had on the construction industry, at nearly every level. The Commercial Construction Index (CCI) fell from 74 to 56 during Q2 2020 and remained statistically unchanged through Q3 of that year. Recovery has been slow, with the CCI remaining eight points below pre-pandemic levels through the end of 2021. Prices for raw materials such as lumber and steel have been extremely volatile, reaching historic highs and dramatic lows. March and April of 2020 alone saw 1.1 million jobs disappear from the industry—roughly half as many jobs as were lost throughout the entire Great Recession (although many of these jobs have since returned).
While the industry has persevered through what should be the worst of these effects, many contractors and project owners are now wondering: How can we predict the next black swan event?
Reprinted courtesy of
John Drentlaw, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Summary Findings of the Fourth National Climate Assessment
January 02, 2019 —
Anthony B. Cavender - Gravel2GavelOn November 23, the latest National Climate Assessment, Fourth National Climate Assessment (NCA4), was released by the U.S. Global Research Program, as required by the Clean Air Act. The Assessment, comprising three volumes and 1600 pages, contains some rather bleak findings which the Report usefully summarizes. Here’s a description of these findings.
1.
Communities. The report states that “climate change creates new risks and exacerbates existing vulnerabilities in communities across the United States.” In particular, “more frequent and intense extreme weather and climate-related events” will continue to damage infrastructure , ecosystems and social systems. However, “global action” to significantly cut greenhouse gas emissions can substantially reduce these risks.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com