Federal Court Strikes Down 'Persuader' Rule
November 23, 2016 —
Pam Hunter McFarland – Engineering News-RecordIn a victory for construction industry groups, a federal court has permanently blocked a U.S. Dept. of Labor rule requiring attorneys and other outside groups to disclose publicly that they provide advice to employers on how to comply with federal labor laws.
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Pam Hunter McFarland, Engineering News-RecordMs. McFarland may be contacted at
mcfarlandp@enr.com
Builder and County Tussle over Unfinished Homes
November 13, 2013 —
CDJ STAFFRivard, Florida has been trying to get rid of a group of unfinished homes destroyed. Now Hernando County officials have decreed that the partially-built homes are unsafe and must be demolished. However, after the building permits were withdrawn, Costa Homes filed a lawsuit asking that they be reinstated. The county had given the builder a deadline to file new permits, but were met with a lawsuit.
Costa Homes seeks to be relived of the county’s requirement that each of the six homes be provided with $10,000 bond and also finds the county’s completion schedule to be “so short it constitutes a prescription for failure.” Building officials had declared the structures unsafe in August and had stipulated that they had to be made safe.
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Trump Administration Announces New Eviction Moratorium
October 12, 2020 —
Zachary Kessler - Gravel2GavelWith the financial impacts of the COVID-19 pandemic continuing to be felt by the American public, the Trump Administration has taken steps to try to allay a coming eviction crisis by enacting a moratorium on evictions through the end of 2020. With the first eviction moratorium instituted by the CARES Act expiring, lawmakers have been pushing to include eviction protections in the next COVID-19 relief package. However, with Congressional leaders still far from an agreement on the next bill, the Centers for Disease Control and Prevention (CDC) has now used its emergency pandemic powers under the Public Health Service Act to temporarily halt residential evictions.
Under the Order, a landlord, owner of a residential property, or other person with a legal right to pursue eviction or possessory actions will not be permitted to evict any covered person through December 31, 2020. Under the Order, “covered persons,” are any tenant, lessee, or resident of a residential property who meets the five-part test included in the order and delivers the executed declaration to their landlord. The five requirements in the declaration, which must be certified under the penalty of perjury are:
- The individual has used best efforts to obtain all available government assistance for rent or housing;
- The individual either (i) expects to earn no more than $99,000 in annual income for Calendar Year 2020 (or no more than $198,000 if filing a joint tax return), (ii) was not required to report any income in 2019 to the U.S. Internal Revenue Service, or (iii) received an Economic Impact Payment (stimulus check) pursuant to Section 2201 of the CARES Act;
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Zachary Kessler, PillsburyMr. Kessler may be contacted at
zachary.kessler@pillsburylaw.com
Library to Open with Roof Defect Lawsuit Pending
December 04, 2013 —
CDJ STAFFRepairs to the Medina County District Library in Lodi, Ohio should be complete next spring. The library’s lawsuit over the roof is just beginning. The library building was a $3 million project in 2005, but the building had to close in 2011 when it was determined that the roof was not structurally sound.
The lawsuit names six defendants, including the contractor, the framing subcontractor, and the engineering firm. The library seeking damages, legal expenses, and attorney fees. The cost of replacing the roof was $1.5 million.
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Court of Appeals Discusses the Difference Between “Claims-Made” and “Occurrence-Based” Insurance Policies
May 31, 2021 —
Garret Murai - California Construction Law BlogAs most contractors know, scope, price and time are the “big” three in any construction contract. Nearly as important, however, are the insurance provisions. Patricularly, when things go bad on a construction project. As the next case, Guastello v. AIG Specialty Insurance Company 61 Cal.App.5th 97 (2021) discusses, the difference between “claims-made” versus “occurrence-based” coverage can be extremely important.
The Guastello Case
In 2003 and 2004, subcontractor C.W. Poss Inc. built retaining walls in the Pointe Monarch housing development in Dana Point, California. Poss performed all related excavation, ground and grading work.
In 2006, Thomas Guastello purchased a home in the development, and in January 2010, a retaining wall close to his lot suffered a massive failure that causing over $700,000 in damages.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Ensuring Efficient Arbitration of Construction Disputes Involving Mechanic’s Liens
February 18, 2020 —
Robert G. Campbell & Trevor B. Potter - Construction ExecutiveThere may be tension between the enforcement of statutory mechanic’s lien claims when a contractual dispute resolution provision calls for arbitration. Once the parties are in arbitration, it may not be clear whether the arbitrator has authority to make factual determinations regarding amount and validity of mechanic’s liens, and whether courts are bound by these determinations. This uncertainty stems from the fact that in most states a mechanic’s lien can only be enforced by a court of competent jurisdiction. Indeed, many mechanic’s liens statutes define foreclosure as a “judicial process,” and courts generally have exclusive jurisdiction to issue orders foreclosing on real property1.
The risk for contractors and owners is that they will spend time and money re-litigating factual issues related to proving elements of a mechanic’s lien claim, including the proper lien amount, timeliness and other prerequisites. Without a clear understanding of what issues and elements are arbitrable, the parties run the risk that an arbitrator will rule on certain elements only to find out during post-arbitration lien foreclosure proceedings that the arbitrator lacked authority to make determinations on those elements. Questions therefore arise whether a court will enforce the arbitrator’s determinations and whether the parties must relitigate mechanic’s lien issues creating a further risk of inconsistent rulings.
These risks can be minimized through arbitration provisions which address these issues, express requests in arbitration demands and by ensuring that arbitration awards contain explicit determinations of mechanic’s liens issues.
Reprinted courtesy of
Robert G. Campbell & Trevor B. Potter, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Potter may be contacted at tpotter@coxcastle.com
Mr. Campbell may be contacted at rcampbell@coxcastle.com
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Court Finds That Limitation on Conditional Use Permit Results in Covered Property Damage Due to Loss of Use
November 06, 2018 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Thee Sombrero, Inc. v. Scottsdale Ins. Co. (No. E067505, filed 10/25/18), a California appeals court held that a property owner’s loss of the ability to use his property as a nightclub, based on revocation of a city’s conditional use permit (“CUP”), constituted covered property damage.
In Sombrero, lessees operated a nightclub under the property owner’s conditional use permit from the City of Colton. A company hired to provide security negligently allowed admission to an armed patron, who shot and killed another patron. The City revoked the owner’s permit, and the owner was only able to negotiate the reinstatement of a limited permit, for use as a banquet hall only.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. 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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Does the Russia Ukraine War Lead to a Consideration in Your Construction Contracts?
April 04, 2022 —
David Adelstein - Florida Construction Legal UpdatesMaterial costs are still affecting the construction industry. Supply chain impacts too. The volatility started with COVID-19 (and, in certain cases, before with the imposition of tariffs) and has continued through present date.
But what about the war between Russia and Ukraine and the impact this has had or may have on the supply chain? I think the spillover from the war (with oil, gas, the energy sector, etc.), including the imposition of any sanctions, is not fully realized other than the concern exists in an economy that is already battling through material costs and supply chain disruptions.
How does this affect you?
It may not.
Or you may regularly enter into construction contracts in which you would be smart to address material costs and supply chain impacts. The reason being is that everything from a risk standpoint should begin with your construction contract. Not addressing an issue does not actually mitigate the risk. Confronting the issue does mitigate the risk because you are contractually addressing a concern and know where the other party stands relating to that concern so that business decisions can be made.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com