What Construction Contractors Should Know About the California Government Claims Act
May 28, 2024 —
Garret Murai - California Construction Law BlogIf you work on state or local public works projects in California you should have at least a basic understanding of the Government Claims Act formerly known as the Tort Claims Act (Govt. Code §§ 900 et seq.). In the event of a dispute with a public entity, the Government Claims Act will usually apply, absent contractual provisions providing otherwise (Govt. Code §§930, 930.2) (e.g., in a construction contract), and requires that a “claim” first be presented to a “public entity” before a claimant files a lawsuit against the public entity. Failure to comply with the Government Claims Act can serve as a bar to maintaining a lawsuit against a public entity.
What types of claims does the Government Claims Act apply to?
The Government Claims Act broadly applies to most claims against state and local public entities. This is not limited to construction projects and includes all claims for “money or damage” arising from death, personal injury, breach of contract, and damage to real and personal property, wrongful death, or breach of contract.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Megaproject Savings Opportunities
April 15, 2014 —
Beverley BevenFlorez-CDJ STAFFJoel Levy in Construction Digital interviewed Christopher Dann, a Partner of Booz & Company’s Energy, Chemicals and Utilities practice, regarding how to be more efficient and save money when managing billion dollar construction megaprojects. According to Construction Digital, “Booz & Company, (recently rebranded as Strategy&), is celebrating its 100th anniversary this year, and over a century of working with huge clients in several sectors, has gathered the knowledge to identify what it terms a $40 trillion opportunity for savings in construction megaprojects over the next 20 years as clients combat a 30 percent average figure of overrun in schedule and cost.”
Dann cited several reasons for inefficiencies in megaprojects, including “inefficient advance planning and analysis” and “lack of completion of detail design engineering prior to the start of construction,” reported Construction Digital. The inefficiencies can be countered, according to Dann, “when following a clear strategy.”
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Lewis Brisbois Ranks Among Top 25 Firms on NLJ’s 2021 Women in Law Scorecard
July 25, 2021 —
Jana Lubert - Lewis BrisboisLewis Brisbois has been ranked among the top 25 law firms included in the National Law Journal's (NLJ) 2021 Women in Law Scorecard (Women’s Scorecard), moving up from 27th place to 23rd place this year. In addition, of the top 25 firms in the Women’s Scorecard, Lewis Brisbois had the highest number of female minority partners.
The Women’s Scorecard is produced as part of the annual NLJ 500 firm head count report, and only the largest 350 firms are eligible to be included on the scorecard. A firm’s score is determined by adding the percentage of female attorneys and percentage of female partners. Diversity staffing counts were based on a firm’s average full-time attorneys in 2020, excluding contract and temporary attorneys.
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Jana Lubert, Lewis BrisboisMs. Lubert may be contacted at
Jana.Lubert@lewisbrisbois.com
Pollution Exclusion Found Ambiguous
May 23, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe Mississippi Supreme Court found the pollution exclusion ambiguous under the facts presented. Omega Protein, Inc. v. Evanston Ins. Co., 2022 Miss. LEXIS 90 (Miss. March 31, 2022).
Omega Protein, Inc., entered a contract with Ascu-fab to perform welding and other fabrication work at their facility. Accu-fab was required to have CGL coverage naming Omega as an additional insured. Accu-fab purchased a $1 million primer policy from Colony Insurance Company and a $5 million excess policy issued by Evanston Insurance Company.
Accu-fab performed welding and other fabrication work on a large metal storage tank used for the temporary storage of stickwater, which was a liquid composed of water, fish oil, and fish solids. An explosion occurred at the Omega plant while Accu-fab workers were welding and grinding on a large metal tank that was used for the temporary storage of stickwater. One of Accu-fab's workers , Jerry Lee Tayler, was killed, another was seriously injured, and still others suffered less serous injuries.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Brief Overview of Rights of Unlicensed Contractors in California
September 10, 2014 —
William M. Kaufman – Construction Lawyers BlogUnder California Contractor’s State License Law enumerated in Business and Professions Code Sections 7000 to 7191, a contractor may not “bring or maintain” any action for compensation for performing any act or contract for which a license is required unless the contractor was duly licensed “at all times” during performance. Bus & Prof Code Section 7031(a).
What does this mean and who does it include?
This is a question that often has to be answered on a case by case basis. Basically, California does not want unlicensed contractors to be able to get paid for work that should be performed by a licensed contractor. The law has set forth some general parameters. General contractors, subcontractors, and master developers must be licensed. However, suppliers, manufacturers, laborers and equipment lessors are exempt and do not need a contractor’s license. Essentially, those parties that merely furnish material or supplies without fabricating them into, or consuming them in the performance of work, do not need to be licensed. Bus & Prof Code Section 7052.
There are sever fines and penalties for those who improperly perform construction work without a license. A contract between any contractor and an unlicensed subcontractor is a misdemeanor. Lack of a license bars all actions in law or in equity for collection of compensation for the performance of work requiring a license. There are very few exceptions to this rule. A “savvy” unlicensed contractor cannot simply avoid these requirements by “subbing” out all the work to licensed contractors. Any person who uses the services of an unlicensed contractor may file a court action or cross-complaint to recover all payments made to the unlicensed contractor. In addition, a person who uses the services of an unlicensed contractor is a victim of a crime and eligible for restitution of economic losses regardless of whether that person had knowledge that the contractor was unlicensed. Bus. & Prof Code Sections 7028, 7028.16. It goes without saying that performing work without a license on projects is a bad idea.
Reprinted courtesy of
William M. Kaufman, Lockhart Park LP
Mr. Kaufman may be contacted at wkaufman@lockhartpark.com, and you may visit the firm's website at www.lockhartpark.com
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Florida Death Toll Rises by Three, Reaching 27 as Search Resumes
July 05, 2021 —
The Associated Press (Adriana Gomez Licon & Bobby Caina Calvan) - BloombergSurfside, Fla. (AP) -- Rescuers searched through fresh rubble Monday after the last of the collapsed Florida condo building was demolished, which allowed crews into previously inaccessible places, including bedrooms where people were believed to be sleeping at the time of the disaster, officials said.
But they faced a new challenge from thunderstorms that hit the area as Tropical Storm Elsa approached the state.
Four more victims were discovered in the new pile, Miami-Dade Assistant Fire Chief Raide Jadallah told family members, raising the death toll to 28 people. Another 117 people remain unaccounted for.
The demolition late Sunday was crucial to the search-and-rescue effort, officials said, and raised the prospect that crews could increase both the pace of their work and the number of searchers at the site, although the chance of finding survivors 12 days after the June 24 collapse has diminished.
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The Associated Press, Bloomberg
As Natural Gas Expands in Gulf, Residents Fear Rising Damage
July 11, 2022 —
The Associated Press (Cathy Bussewitz & Martha Irvine) - BloombergLake Charles, Louisiana (AP) -- The front lawn of Lydia Larce’s home is strewn with debris: Remnants of cabinets and chunks of pink shower marble lie between dumpsters. She lives in a FEMA trailer out back, her home in shambles more than a year after Hurricane Laura tore through Lake Charles.
Larce, like many in Southwest Louisiana, has what she calls “storm PTSD.” Tornado warnings trigger anxiety. She fidgets and struggles to sleep.
"The fear and the unknown — it has me on an edge,” Larce said. “I’m scared.”
A string of devastating hurricanes has torn through this region in recent years. Nationally, too, there have been more Category 4 and 5 hurricane landfalls in the past five years than in the previous 50 years combined. Larce and her neighbors know they are on the front lines of climate change.
Her region is now the epicenter of a trend that she fears will make those disasters even more destructive.
Developers plan to build a series of liquefied natural gas export facilities across Southwest Louisiana, already the heart of the industry. Even in a state with a heavy industrial base, these facilities are among the largest emitters of greenhouse gases in Louisiana.
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Bloomberg
Hawaii Federal District Court Grants Preliminary Approval of Settlement on Volcano Damage
September 13, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court granted preliminary approval of the class action settlement reached on behalf of insureds who suffered property damage due to the 2018 Kilauea eruption on the Big Island. Aquilina v. Certain Underwriters at Lloyd's London, 2021 U.S. Dist. LEXIS 152614 (D. Haw. Aug. 13, 2021).
After destruction of their homes due to lava flow, plaintiffs sued various insurers and agents as a putative class action. Plaintiffs claimed they purchased surplus lines policies brokered and underwritten by various defendants. The policies each contained an exclusion for the peril of lava flow, which plaintiffs claimed rendered them worthless or unsuitable given that their properties were located in a high-risk lava zone.
Plaintiffs alleged that defendants breached obligations under the Hawaii Surplus Lines Act, which required that surplus lines insurers conduct a diligent search for other available coverage before placing a homeowner with surplus lines coverage. Plaintiffs alleged defendants should have advised them of the availability of lava-damage coverage through the Hawaii Property Insurance Association (HPIA), a statutorily created association of admitted insurers established in part in response to Kilauea's eruption patterns, which made the private insurance market less likely to Insure certain high-risk areas.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com