HB24-1014: A Warning Bell for Colorado Businesses Amid Potential Consumer Protection Changes
February 26, 2024 —
Jennifer Brockel - Colorado Construction Litigation BlogHB24-1014 stands to eliminate the longstanding public impact requirement found within C.R.S. § 6-1-105(2) of the Colorado Consumer Protection Act (“CCPA”). While this proposed change professes the noblest intentions of “public peace, health or safety,” its effect portends a large detriment to Colorado business and an astronomical payday for Colorado plaintiffs’ attorneys.
Brief History
For over 100 years, Colorado recognized the need to protect its citizens from deceptive trade practices through a mechanism akin to the Federal Trade Commission Act that preceded it. In 1915, Colorado passed legislation prohibiting “untrue, deceptive, or misleading” advertising. C.L. 1921 § 6942 evolved into the broader protections afforded in the more recent consumer protection law from 1969 that prohibited “deceptive trade practices, and included protections from unfair, unconscionable, and deceptive acts or practices.”
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Jennifer Brockel, Higgins, Hopkins, McLain & Roswell, LLCMs. Brockel may be contacted at
brockel@hhmrlaw.com
An Occurrence Under Builder’s Risk Insurance Policy Is Based on the Language in the Policy
April 03, 2023 —
David Adelstein - Florida Construction Legal UpdatesBuilder’s risk insurance coverage is a vital property insurance coverage during the course of construction. Builder’s risk insurance is not a one-size-fits-all product so please make sure you are working with your insurance broker to procure this product that factors in and covers risk associated with the project.
Builder’s risk insurance is typically an occurrence-based policy. No different than other occurrence-based policies (such as commercial general liability), a dispute may arise as to the occurrence. This could be due to the triggering of the actual policy during the coverage period or it could be due deductible obligations, as in the case discussed below. When dealing with a builder’s risk insurance policy–again, no different than any policy–the language in the policy matters. Definitions used in the policy to define specific terms matter and, in numerous cases, the ordinary dictionary meanings of terms matter. But it all starts with the policy language.
In KT State & Lemon, LLP v. Westchester Fire Insurance Co., 2023 WL 2456499 (M.D.Fla. 2023), a builder’s risk policy provided coverage from April 2018 through the end of November 2019. There was a $50,000 per occurrence deductible for loss caused by or from water damage. An extension to the builder’s risk policy was negotiated through the end of January 2020 that increased this water damage deductible to $250,000 per occurrence. During construction and the testing of the fire suppression (sprinkler) system, leaks started to occur resulting in water damage. Two leaks occurred in September 2019, one leak in October 2019, one leak in November 2019, and two leaks in December 2019 (during the extension and higher water damage deductible period).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
How Long is Your Construction Warranty?
February 26, 2015 —
Craig Martin – Construction Contractor AdvisorThe Nebraska Court of Appeals threw a wrench into the calculation of your warranty earlier this year in Adams v. Manchester Park, LLC and Southfork Homes, Inc. In that case, the court found that the statute of limitations for a warranty claim started running after the homebuilder’s warranty expired. So, the four year breach of warranty statute of limitations did not begin until after the one year homebuilder warranty expired.
In this case, the homeowner purchased a home from Southfork in September, 2007. The purchase agreement provided for a one-year New Home Limited Warranty which covered material defects in workmanship and materials. The homeowner noticed cracks in the drywall and problems with windows within 6 months of the purchase. The builder told the homeowner to keep track of all the problems and they would be fixed at the yearend walk through.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
UK Agency Seeks Stricter Punishments for Illegal Wastewater Discharges
August 07, 2022 —
Peter Reina - Engineering News-RecordBosses of U.K. water and wastewater utilities that are responsible for illegal, serious pollution should be jailed, said Emma Howard Boyd, head of the government's Environment Agency. She made the recommendation along with release of the agency’s annual report on the nine major companies, which recorded the worst environmental performance in a decade.
Reprinted courtesy of
Peter Reina, Engineering News-Record
Mr. Reina may be contacted at reina@btinternet.com
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Labor Under the Miller Act And Estoppel of Statute of Limitations
May 08, 2023 —
David Adelstein - Florida Construction Legal UpdatesIf you want a case that goes into history of the federal Miller Act, check out the Fourth Circuit Court of Appeal’s opinion in U.S. ex rel. Dickson v. Fidelity and Deposit Company of Maryland, 2023 WL 3083440 (4th Cir. 2023). While I am not going to delve into this history, it’s a worthwhile read. It is also a worthwhile read for two other points.
First, it discusses what constitutes “labor” under the Miller Act.
Second, it discusses doctrine of estoppel to prevent a surety from raising the statute of limitations to bar a Miller Act payment bond claim, which is a doctrine you do NOT want to rely on, as this case reinforces.
Both of these points applicable to Miller Act claims are discussed below.
This case dealt with a prime contractor renovating staircases that was terminated by the federal government. The prime contractor hired a professional engineer as its subcontractor to serve as its project manager and supervise labor on the project. The engineer/subcontractor also had “logistical and clerical duties, taking various field measurements, cleaning the worksite, moving tools and materials, and sometimes even watering the concrete himself.” Dickson, supra, at *1.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
The Future of Construction Tech Is Decision Tech
August 06, 2019 —
Bassem Hamdy - Construction ExecutiveIt doesn’t take much to be catastrophically wrong in construction; some bad information, a touch of misleading intel, a few biased opinions mixed with human error and perhaps a little bad luck to top it off. A poor decision early in a project plants itself like a weed—it grows benignly at first, and becomes gravely pervasive at the end.
Being wrong in construction is dangerous. Error leads to leaning towers and broken buildings. Poorly-built structures can hinder economic growth and deprive communities of good infrastructure. For the enterprise, bad decisions can lead to massive financial loss and—worse—human loss on a jobsite.
Despite knowing all the dangers, it seems that flawed data, misleading intel and human error have become traits the industry can’t shake. To be clear, construction is one of—if not the most—complex industry in today’s economy. Companies walk a tight rope between a 2% margin on one side and ruinous loss on the other. Under such conditions, it’s easy to see why sustained good judgement is difficult.
Reprinted courtesy of
Bassem Hamdy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Court Holds That Property Insurance Does Not Cover Economic Loss From Purchasing Counterfeit Vintage Wine
March 22, 2018 —
Christopher Kendrick and Valerie A. Moore – Publications & InsightsIn
Doyle v. Fireman's Fund Insurance Co. (No. G054197, filed 3/7/18), a California appeals court held that financial loss from purchasing counterfeit vintage wine was not direct and accidental loss or damage to covered property within the coverage of a valuable possessions property policy.
In
Doyle, the insured was a collector of rare, vintage wine that was housed in a wine storage facility. He had purchased nearly $18 million of purportedly rare, vintage wine from a dealer, and insured the collection under a valuable possessions policy. But a law enforcement investigation revealed that the dealer had been filling empty wine bottles with his own wine blend and affixing counterfeit labels. The dealer was convicted of fraud and was sent to prison for 10 years.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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Property Damage to Insured's Own Work is Not Covered
May 27, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe Michigan Court of Appeals found there was no coverage for a lawsuit filed against the insureds for faulty workmanship. Skanska United States Bldg. v M.A.P. Mech. Contrs., 2019 Mich App. LEXIS 529 (Mich. Ct. App. March 19, 2019).
Contractor Skanska United States Building was the construction manager on a renovation project for the medical center. The heating and cooling portion of the project was subcontracted to M.A.P. Mechanical Contractors (MAP). MAP had a CGL policy from Amerisure Insurance Company. Skanska and the medical center were named as additional insureds on the policy.
After installation of the steam boiler and related piping, it was discovered that the heating system did not function property. Skanska discovered that MAP had installed some of the expansion joints backward, causing damage to concrete, steel, and heating system. The medical center sent a demand to MAP. Skanska performed the repairs and replaced the damaged property. Skanska then submitted a claim to Amerisure, which was denied.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com