Determining Occurrence for Injury Under Commercial General Liability Policy Without Applying “Trigger Theory”
July 19, 2021 —
David Adelstein - Florida Construction Legal UpdatesOftentimes an occurrence in a commercial general liability policy is defined as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions.” It is this occurrence that causes the bodily injury or property damage that may be covered by the policy.
An interesting non-construction case determined an occurrence under a commercial general liability policy occurred when the negligent act occurred irrespective of the date of discovery or the date the claim was discovered or asserted. See Certain Underwriters at Lloyd’s, London Subscribing to Policy No. J046137 v. Pierson, 46 Fla.L.Weekly D1288c (Fla. 4thDCA 2021). This is interesting because the appellate court did NOT apply a “trigger theory” to first determine the occurrence’s policy period. The appellate court found it did not need to determine which “trigger theory” applied to determine the occurrence for the injury and relied on a cited case: “trigger theories are generally used in the context of deciding when damage occurred ‘in cases involving progressive damages, such as latent defects, toxic spills, and asbestosis’ because the time between the ‘injury-causing event (such as defective construction, a fuel leak, or exposure to asbestos), the injury itself, and the injury’s discovery or manifestation can be so far apart.” Pierson, supra, citing and quoting Spartan Petroleum Co. v. Federated Mut. Ins. Co., 162 F.3d 805, 808 (4th Cir. 1998).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Construction Litigation Roundup: “A Fastball Right to the Bean!”
May 06, 2024 —
Daniel Lund III - LexologyThe Metropolitan Municipality of Lima, Peru, filed suit in federal court in Washington DC to vacate two separate arbitration awards rendered against the city in international arbitration proceedings subject to the Federal Arbitration Act.
The city had contracted to build, improve, and maintain various highways in and around the city. To pay for this infrastructure, Lima agreed that the contractor would “receive revenues from existing and new toll booths.”
Apparently, the City of Lima forgot how much citizens of the area loathed tolls, and, according to the court, the local public officials “quickly truckled” (how apropos for a road project!) to the pressure. As a result, revenues promised to the contractor were not forthcoming, and the city did nothing about it.
The contractor initiated arbitration, and the city countered by arguing that the contractor had bribed its way into the contract. The city lost and was held in breach.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
CA Supreme Court Expands Scope of Lawyers’ Statute of Limitations to Non-Legal Malpractice Claims – Confusion Predicted for Law and Motion Judges
August 26, 2015 —
David W. Evans & Stephen J. Squillario – Haight Brown & Bonesteel LLPIn Lee v. Hanley (S220775 – Filed 8/20/2015), the California Supreme Court clarified the meaning of Code of Civil Procedure section 340.6 by holding that its limitations period applies to claims against attorneys “whose merits necessarily depend on proof that an attorney violated a professional obligation in the course of providing professional services.” Although it resolved a district split by finding that the statute governs for non-legal malpractice claims against attorneys including those of non-clients, by having the statute’s applicability “turn on the conduct alleged and ultimately proven, not on the way the complaint was styled,” this 5-2 decision also increased the specter of creative pleading and lengthy litigation.
In Lee, the client had advanced $120,000 to cover attorney’s fees, costs and expert witness fees for the underlying litigation. After the case settled, the attorney advised the client that she had a credit balance of approximately $46,000. In response to her demand for a refund, the attorney then advised the client that she did not have a credit balance. More than one year later, the client filed suit to recover the $46,000, plus interest. The trial court sustained the attorney’s demurrer based on the one-year statute of limitations in section 340.6. The appellate court, however, reversed, reasoning that the client’s claim could be construed as one for conversion, in which case section 340.6 would not apply.
Reprinted courtesy of
David W. Evans, Haight Brown & Bonesteel LLP and
Stephen J. Squillario, Haight Brown & Bonesteel LLP
Mr. Evans may be contacted at devans@hbblaw.com
Mr. Squillario may be contacted at ssquillario@hbblaw.com
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A Brief Discussion – Liquidating Agreements
June 27, 2022 —
Gerard J. Onorata - Peckar & Abramson, P.C.During a construction project, it is not uncommon for disputes to arise between a general contractor and a subcontractor. Frequently, these disputes involve claims for extra work and delay damages that can be attributed to the owner of the project due to deficient design or unforeseen conditions. When these occasions arise, the parties can often resolve these claims without the need for litigation or arbitration by entering into a “liquidating agreement.”
What is a Liquidating Agreement?
Because there is no direct contractual relationship between a subcontractor and an owner, there does not exist a legal basis for a subcontractor to assert a breach of contract claim against a project owner. In legal parlance, this is known as “lack of contractual privity.” A liquidating agreement bridges this contractual gap and allows a subcontractor to pass its claim against the owner through the general contractor. Essentially, with a liquidating agreement, the general contractor acts as a conduit for passing through the subcontractor’s claim.
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Gerard J. Onorata, Peckar & Abramson, P.C.Mr. Onorata may be contacted at
gonorata@pecklaw.com
Prefabrication Contract Considerations
March 08, 2021 —
David Adelstein - Florida Construction Legal UpdatesPrefabrication (also referred to as modular construction in instances), is a form of offsite construction where certain construction activities occur at an offsite manufacturing facility or location. Construction components or units are preassembled (prefabricated) at this offsite location prior to being delivered to the project site and then integrated into the project.
When preparing a prefabrication contract (including a prefabrication subcontract), there are a number of complex considerations that need to be weighed, and these considerations are bullet-pointed below. The purpose of these bullet-points is to give you considerations to discuss and vet when preparing, negotiating, and agreeing to a prefabrication contract or subcontract.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Spearin Doctrine: Alive, Well and Thriving on its 100th Birthday
January 15, 2019 —
John P. Ahlers - Ahlers Cressman & Sleight PLLCOn December 9, 2018, United States v. Spearin, [1] a landmark construction law case, will be 100 years old. The Spearin “doctrine”[2] provides that the owner impliedly warrants the information, plans and specifications which an owner provides to a general contractor. The contractor will not be liable to the owner for loss or damage which results from insufficiencies or defects in such information, plans and specifications.
Some construction lawyers questioned whether the Spearin doctrine was still viable in Washington after the Washington Court of Appeals decided the recent case of King County v. Vinci Constr. Grand Projets.[3] Some concerned contractor industry groups even considered a “statutory fix” in the wake of the Court of Appeals Vinci decision. It is our opinion that the facts in the Vinci case are distinguishable and the Spearin doctrine is alive and thriving in Washington.
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John P. Ahlers, Ahlers Cressman & Sleight PLLCMr. Ahlers may be contacted at
john.ahlers@acslawyers.com
Injured Subcontractor Employee Asserts Premise Liability Claim Against General Contractor
March 22, 2021 —
David Adelstein - Florida Construction Legal UpdatesIn an interesting opinion, an injured employee of an electrical subcontractor sued the general contractor of a parking garage project under a premise liability theory after being injured when stepping on an uncovered floor drain at the project site. There is no discussion in the opinion as to workers compensation immunity. Rather, the discussion centers on the injured employee’s premise liability claim as to whether the general contractor “breached its duty to maintain the premises in a reasonably safe condition by leaving the drain uncovered and failing to warn of the danger of the uncovered drain.” Pratus v. Marzucco’s Construction & Coatings, Inc., 46 Fla.L.Weekly D186a (Fla. 2d DCA 2021)
The trial court granted summary judgment in favor of the general contractor finding that the drain was open and obvious on the site. The Second District Court of Appeal reversed the summary judgment with a discussion as to premise liability claims, particularly as it pertains to a business invitee, which is what the injured employee of the electrical subcontractor was.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Focusing on Design Elements of the 2014 World Cup Stadiums
June 30, 2014 —
Beverley BevenFlorez-CDJ STAFFWhile Garret Murai on his California Construction Law blog admits that the construction of Brazil’s World Cup stadiums has been problematic (construction worker deaths, delays, and cost overruns), he focused on the design work: “…there’s no denying that the venues are stunning, and for a country known for its beauty as well as beauties (think the Girl From Ipanema), dare I say even sexy.”
For instance, Murai described the Estadio do Maracana (constructed in 1950 and renovated in 2013) as looking “a bit like the front of the USS Enterprise.” He goes onto explain how the stadium was originally constructed for the 1950 World Cup, and “famous” attendees include Frank Sinatra and the Pope.
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