VOSH Jumps Into the Employee Misclassification Pool
February 23, 2016 —
Christopher G. Hill – Construction Law MusingsThe proper classification of workers by construction companies has been on the radar of the Department of Labor for both the US and Virginia governments for quite a while. While most of the misclassification is innocent and not done to create issues, there have been enough instances of purposeful misclassification of certain workers as independent contractors (thus avoiding workers comp and other payroll expenses) that innocent contractors have born the brunt of these issues through increased payroll costs over those that misclassify (in the form of necessarily higher bids, higher overhead, etc.).
As an additional deterrent to improper classification of workers, the Virginia Department of Labor and Industry has issued guidelines for what will occur in Virginia Department of Safety and Health (VOSH) cases.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Enhanced Geothermal Energy Could Be the Next Zero-Carbon Hero
June 10, 2024 —
Sidney L. Fowler, Robert A. James & Clarence H. Tolliver - Gravel2Gavel Construction & Real Estate Law BlogHydrogen, solar, wind—and even microwave beams from outer space—are a few of the alternative energies being explored as the world strives to cut the cord on carbon emissions. Recently, advancements in geothermal energy technologies appear poised to significantly expand geothermal’s reach. These new methods, varyingly referred to as enhanced, engineered or advanced geothermal systems (collectively referred to here as EGS), have recently made strides in scalability and grabbed the attention of changemakers. If successful, EGS may play a major role in the clean energy transition. The technique creates no emissions and is virtually limitless (it pulls from heat generated by the Earth’s core), and can provide constant baseload power, making it appealing to green-minded investors. This article calls attention to the progress and variety of EGS projects and proposals that Pillsbury sees as part of the ongoing energy transition.
People have long been drawn to geothermal energy, with Paleo-Americans settling at hot springs some 10,000 years ago. In 1892, Boise, Idaho, became the first town to establish a district heating system that piped naturally occurring hot water from underground and into homes. It would take another 70 years for other cities to replicate the feat, but now 17 U.S. districts use such systems, along with dozens more worldwide.
Reprinted courtesy of
Sidney L. Fowler, Pillsbury,
Robert A. James, Pillsbury and
Clarence H. Tolliver, Pillsbury
Mr. Fowler may be contacted at sidney.fowler@pillsburylaw.com
Mr. James may be contacted at rob.james@pillsburylaw.com
Mr. Tolliver may be contacted at clarence.tolliver@pillsburylaw.com
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Requesting an Allocation Between Covered and Non-Covered Damages? [Do] Think Twice, It’s [Not Always] All Right.
October 12, 2020 —
Todd Likman - Colorado Construction LitigationAs is often the case in construction defect and other insurance defense litigation, a plaintiff’s claims for relief typically encompass both covered and uncovered damages. Obviously, it is in the insured’s best interests to have as many damages covered by insurance as possible. From the insurer’s perspective and against the backdrop of owing duty of good faith and fair dealing to its insureds, however, it is generally better to have an allocation of covered vs. non-covered damages. This places the insurer, insured, and insurance retained defense counsel in a difficult position.
A recent opinion from U.S. District Court for the District of Colorado, Rockhill Ins. Co. v. CFI-Global Fisheries Mgmt, Civil Action No. 1:16-CV-02760-RM-MJW, 2020 U.S. Dist. LEXIS 35209 (D. Colo. Mar. 2, 2020), sheds light on the issue, even though some may feel it only further muddies already murky waters.
Rockhill involved review of an arbitration proceeding that property-owner, Heirloom I, LLC (“Heirloom”) filed against CFI-Global Fisheries Management (“CFI”). Rockhill Insurance Company (“Rockhill Insurance”) was asked to defend the arbitration as CFI’s professional and general liability insurer. At issue in the arbitration was Heirloom’s claim that CFI defectively designed and constructed a fisheries enhancement that was destroyed by natural processes four times in three years.
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Todd Likman, Higgins, Hopkins, McLain & RoswellMr. Likman may be contacted at
likman@hhmrlaw.com
City Council Authorizes Settlement of Basement Flooding Cases
March 12, 2014 —
Beverley BevenFlorez-CDJ STAFFLast July in Dearborn, Michigan, “torrential rain” caused flooding to hundreds of basements, according to Press & Guide. Of the 250 claims filed by residents, “the city determined that about 150 were caused by defects in its water or sewer lines. About 125 of the claims to be settled are for more than $3,000; 26 are for $3,000 or less.”
Press & Guide reported that “Attorney Tarek Baydoun, who is representing some clients whose basements flooded, asked about recourse for ‘botched’ claims, and was concerned because the city hasn’t released the list of those with whom it is settling.” The Mayor, Jack O’Reilly, stated that the law department would release the list to the city council.
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Insurer Could Not Rely on Extrinsic Evidence to Circumvent Its Duty to Defend
February 14, 2023 —
Lorelie S. Masters & Yaniel Abreu - Hunton Insurance Recovery BlogIn
First Mercury Insurance Co. v. First Florida Building Corp., et al., a federal district court ordered that an insurer had a duty to defend its insured against an underlying personal injury lawsuit. 2023 WL 23116, at *1 (M.D. Fla. Jan. 3, 2023). First Mercury is a cautionary tale about how insurers may try to circumvent their obligations by improperly considering extrinsic evidence when determining whether they have a duty to defend their insureds.
First Mercury is a coverage dispute over an underlying personal injury lawsuit that was filed against the insured, a construction company, for injuries the claimant allegedly sustained at a construction site. Id. The claimant alleged that he was at the construction site as an invitee who was “working with” the insured. Id. The insurer agreed to defend the insured against the personal injury lawsuit under a reservation of rights. Id. However, the insurer filed a coverage action seeking a declaration that coverage for the personal injury lawsuit was excluded under the policy. Id. Specifically, the insurer, on summary judgment, argued that the claimant was an employee of the insured who was injured in the course of his employment, thus falling within the employer’s liability and workers’ compensation exclusions in the policy. Id. Although the insurer acknowledged that the personal injury complaint against the insured triggered its duty to defend under the policy, the insurer argued that those exclusions relieved its duty to defend or indemnify the insured. Id.
Reprinted courtesy of
Lorelie S. Masters, Hunton Andrews Kurth and
Yaniel Abreu, Hunton Andrews Kurth
Ms. Masters may be contacted at lmasters@HuntonAK.com
Mr. Abreu may be contacted at yabreu@HuntonAK.com
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Effective July 1, 2022, Contractors Will be Liable for their Subcontractor’s Failure to Pay its Employees’ Wages and Benefits
July 25, 2022 —
Edward O. Pacer & David J. Scriven-Young - Peckar & AbramsonOn June 10, 2022, Illinois Governor J.B. Pritzker signed two House Bills that amend the Illinois Wage Payment & Collections Act, 820 ILCS 115 et. seq. (“Wage Act”), to provide greater protection for individuals working in the construction trades against wage theft in a defined class of projects. Pursuant to this new law, every general contractor, construction manager, or “primary contractor,” working on the projects included in the Bill’s purview will be liable for wages that have not been paid by a subcontractor or lower-tier subcontractor on any contract entered into after July 1, 2022, together with unpaid fringe benefits plus to attorneys’ fees and costs that are incurred by the employee in bringing an action under the Wage Act.
These amendments to the Wage Act apply to a primary contractor engaged in “erection, construction, alteration, or repair of a building structure, or other private work.” However, there are important limitations to the amendment’s applicability. The amendment does not apply to projects under contract with state or local government, or to general contractors that are parties to a collective bargaining agreement on a project where the work is being performed. Additionally, the amendment does not apply to primary contractors who are doing work with a value of less than $20,000, or work that involves only the altering or repairing of an existing single-family dwelling or single residential unit in a multi-unit building.
Reprinted courtesy of
Edward O. Pacer, Peckar & Abramson and
David J. Scriven-Young, Peckar & Abramson
Mr. Pacer may be contacted at epacer@pecklaw.com
Mr. Scriven-Young may be contacted at dscriven-young@pecklaw.com
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Eight Things You Need to Know About the AAA’s New Construction Arbitration Rules
August 19, 2015 —
Garret Murai – California Construction Law BlogI just finished a construction arbitration this past week, which also explains my sporadic posts as of late, sorry.
Coincidentally, on July 1, 2015, the American Arbitration Association (“AAA”) implemented their newly revised Construction Industry Arbitration and Mediation Procedures.
For those of you who follow our blog, you know I’m not a big fan of arbitration, which, from my experience, doesn’t deliver on its promise of better, faster, or cheaper, and ends up being pretty much the same thing as trial without the benefit of discovery, the rules of evidence, or appealability.
The AAA is trying to change all of that though and in a news release announced that its new “Rules” “directly address preferences of users for a more streamlined, cost-effective, and tightly managed arbitration process that avoids the high costs of litigation.” Which makes you wonder whether they had to survey their “users” to come to this realization. But I digress.
With the AAA’s new Rules come eight new changes, as follows:
1.Fast Track Procedures: Newly revised Rule F-1 now applies to two-party cases where no party’s claim or counterclaim exceeds $100,000. Under old Rule F-1 the monetary cap was $75,000.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
No Entitlement to Reimbursement of Pre-Tender Fees
April 28, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe Federal District Court for the District of Hawaii determined that the insured was not entitled to pre-tender defense fees. The Hanover Ins. Co. v. Anova Food, LLC, 2016 U.S. Dist. LEXIS 38947 (D. Haw. March 24, 2016).
Anova sold and marketed fish. It was insured under policies issued by Hanover that covered claims of "personal and advertising injury."
A patent infringement and false advertising case was filed against Anova in the District Court for the District of Hawaii.The underlying complaint alleged Anova falsely, misleadingly, and deceptively advertised, promoted, and sold fish. The allegations covered a period of time between 1999 and 2012, a portion of which time Anova was covered by the Hanover policies.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com