Engineer TRC Fends Off Lawsuits After Merger
August 17, 2017 —
Scott Van Voorhis - Engineering News-RecordIn the wake of its merger with an investment fund, TRC Cos. has been busy swatting away pesky shareholder lawsuits driven by law firms who specialize in such litigation.
Read the court decisionRead the full story...Reprinted courtesy of
Scott Van Voorhis, ENRENR may be contacted at
ENR.com@bnpmedia.com
City of Aspen v. Burlingame Ranch II Condominium Owners Association: Clarifying the Application of the Colorado Governmental Immunity Act
June 17, 2024 —
David McLain - Higgins, Hopkins, McLain & Roswell, LLCOn June 17, 2024, the Colorado Supreme Court delivered a significant opinion in the case of City of Aspen v. Burlingame Ranch II Condominium Owners Association (Case No. 22SC293). This decision provides crucial guidance on the interplay between the Colorado Governmental Immunity Act (“CGIA”) and the economic loss rule in the context of construction defect claims.
Background of the Case
The case arose from a construction defect dispute between the City of Aspen, which served as the developer and declarant for the affordable housing condominiums at issue, and the Burlingame Ranch II Condominium Owners Association, the HOA created by Aspen to manage the association after the period of declarant control. The Association alleged that Aspen breached various warranties related to the construction of affordable housing units, leading to structural deficiencies. Aspen argued that the CGIA barred these claims because they could lie in tort.
The Lower Court’s Decision
The district court initially agreed with Aspen, holding that the Association’s claims sounded in tort and were therefore barred by the CGIA. The court relied on the principle that governmental immunity protects public entities from liability for claims that ‘lie in tort or could lie in tort,’ as established by the CGIA.
Read the court decisionRead the full story...Reprinted courtesy of
David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Commonwealth Court Holds That Award of Attorney's Fees and Penalties is Mandatory Under the Procurement Code Upon a Finding of Bad Faith
October 29, 2014 —
William J. Taylor and Michael Jervis – White and Willams LLPIn a decision regarding a payment claim by a highway contractor against the City of Allentown, the Commonwealth Court of Pennsylvania has held that an award of attorney's fees and penalties is mandatory under the terms of the Pennsylvania Procurement Code, 62 Pa.C.S. § 3901 et seq., upon a finding of bad faith by the non-paying government agency, even though the statute only states that a court “may” award such fees and penalties.
In A. Scott Enterprises, Inc. v. City of Allentown, Cmwlth. Ct. No. 2163 C.D. 2013, the plaintiff, A. Scott Enterprises, Inc. (Scott), won a contract with the City of Allentown (City) to construct a one mile roadway. Several weeks after commencing work, Scott learned that soil at the construction site was potentially contaminated with arsenic, and was instructed by the City to suspend its work. Because of the soil contamination, additional work would be required to complete the project and Scott submitted proposals for the additional work plus its suspension costs. However, the City never approved the additional work and the project was never completed. The City never paid Scott for costs incurred due to the suspension of the work and Scott filed suit to recover its losses. The jury found that the City had breached the contract with Scott and had acted in bad faith in violation of the Procurement Code, and awarded damages to Scott for its unreimbursed suspension costs. However, the trial court denied Scott’s request for an award of attorney's fees and penalty interest. Both Scott and the City appealed the final judgment to the Commonwealth Court, which reversed the trial court’s refusal to award attorney's fees and penalties.
Reprinted courtesy of
William J. Taylor, White and Williams LLP and
Michael Jervis, White and Williams LLP
Mr. Taylor may be contacted at taylorw@whiteandwilliams.com; Mr. Jervis may be contacted at jervism@whiteandwilliams.com
Read the court decisionRead the full story...Reprinted courtesy of
The Ghosts of Projects Past
December 17, 2015 —
Craig Martin – Construction Contractor AdvisorSean Minahan, one of my partners, and I were discussing a construction dispute the other day and we commented again and again about the significant organization required to get a construction project to completion. From the contracts, to the schedule, to the funding—everything has to be in lock step or there will be problems that could bring the project to a halt, or worse yet litigation.
The same is true of construction claims. To present a claim effectively, it has to be simple. But, to make it simple will require substantial documentation and organization of all aspects of a claim.
This point was driven home this week when I received Long International’s Construction Claims Analysis Checklist Long International. The Checklist is 11 pages long and identifies various aspects of a claim, from the simple to the complicated.
Read the court decisionRead the full story...Reprinted courtesy of
Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
California Senator Proposes Bill to Require Contractors to Report Construction Defect Cases
January 04, 2018 —
David Suggs - Bert L. Howe & Associates, Inc.According to Renne Schiavone’s of Patch.com in her article “Sen. Hill Wants Contractors to Report Construction Defect Cases”, Senator Jerry Hill of San Mateo County proposed a bill on December 21st, 2017 requiring construction defect settlements to be reported by contractors to the licensing board. This proposal comes after the tragic incident that took place back on June 16, 2015 during which a balcony on the fifth floor of a Berkeley apartment complex collapsed. This resulted in the death of six students and serious injuries for an additional seven individuals.
An investigation revealed that three years prior to the balcony collapse, Segue Construction, who built the apartment complex, had paid $26.5 million in construction defect lawsuit settlements. Since the law doesn’t require these settlements to be reported by contractors, the Contractors State License Board (CSLB) wasn’t aware of the case.
"Working together we can take even stronger steps to protect the public by ensuring that this critically important data is accessible to the Contractors State License Board," said Senator Hill. Senate Bill 465 will aim to protect consumers with more regulation and transparency. Senator Hill is also working on Senate Bill 721 which would require periodic condo and apartment building inspections of exterior elevated walking surfaces, stairwells, and balconies.
Read the court decisionRead the full story...Reprinted courtesy of
Denver Condo Development Increasing, with Caution
January 21, 2015 —
Beverley BevenFlorez-CDJ STAFFAccording to Aldo Svaldi of The Denver Post, condo development has increased in the Denver metro area, though builders stated they are carefully documenting each step of construction as well as vetting contractors and materials.
"We are being ultra-careful about everything," Roy Kline, a managing director at Western Development Group, told the Denver Post. Western Development is behind the 250 Columbine development. Svaldi reported that Western Development Group has been “photographing or filming every step of construction.”
Brian Levitt and Trevor Hines of NAVA Real Estate Development “have spent the past year crafting a detailed three-page, 18-point action plan to deal with any contingency they could think of arising from the state's constructions-defects law.” Levitt told Svaldi that he “estimates all the safeguards being put in place will add 5 percent to 10 percent to the costs of the units at NAVA Sloan Lake, whose final price points are being determined.”
Read the court decisionRead the full story...Reprinted courtesy of
Blackouts Require a New Look at Backup Power
April 06, 2020 —
John McBride - Construction ExecutiveRecent blackouts on both East and West coasts are causing commercial property owners to reassess their need for backup power. The likelihood of more-frequent blackouts means backup power must evolve from ensuring the safe exit of office workers to enabling core business functions to continue uninterrupted. That’s a major shift in preparedness that construction executives should consider in future planning.
In New York City on July 13, 2019, a Con Edison blackout left 72,000 customers in Manhattan and Queens without power primarily because of a flawed connection at an electrical substation. Eight days later, a second Con Edison blackout left more than 50,000 customers, mostly in Brooklyn, without power due to high usage during a heat wave. These events occurred even though, as Con Edison stated, the New York City grid is one of the most complex and technologically advanced in the world and contains multiple layers of redundancy.
In northern and central California in late October, 2019, intentional blackouts were implemented by Pacific Gas and Electric (PG&E) on a massive scale in response to out-of-control wildfires. “Never before in California history have more than 2 million people gone five days without electrical power because of the intentional safety policy of a utility,” reported the Los Angeles Times. It was the second massive blackout in California in two weeks, after PG&E had earlier shut off power to almost 2 million people in rolling blackouts.
The blackouts on both coasts are remarkable not only for their breadth but for the range of causes—from limiting wildfires sparked in part by faulty, above-ground, power lines to a flawed connection at a substation to overuse during a heat wave. The conditions creating those causes are not likely to subside, and Con Edison warned this summer of more service outages to come. In California, The Washington Post writes, “blackouts are redefining the prosperous state.”
Reprinted courtesy of
John McBride, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Construction Bidding for Success
May 22, 2023 —
The Hartford Staff - The Hartford InsightsWhen construction companies develop a history of successful projects, they often consider bidding on larger projects. However, larger projects can carry greater risks.
If your company has successfully completed numerous $10 million projects and is considering a bid on a $100 million project, there are several factors to consider before submitting a proposal. That is because bidding on the wrong project could potentially put you out of business.
“When a contractor bids a larger project, there is a greater financial risk,” says Tim Holicky, a senior executive underwriter at The Hartford. There are more subcontractors to manage and additional materials to purchase, which all leads to greater financial risk.
Read the court decisionRead the full story...Reprinted courtesy of
The Hartford Staff, The Hartford Insights