The California Legislature Passes SB 496 Limiting Design Professional Defense and Indemnity Obligations
November 21, 2017 —
Mark Himmelstein & Jenny Guzman – Newmeyer & Dillion LLPOriginally published by CDJ on June 15, 2017
Since 2008 when the California legislature limited subcontractor indemnity obligations, the design professional community has been shouting “what about us?” Well, the legislature finally responded and a new law that limits design professional’s defense and indemnity obligations to their percentage of fault goes into effect on January 1, 2018.
THE NEW LAW – SB 496
SB 496 amends California Civil Code section 2782.8 and states that indemnity agreements must be limited to the negligence, recklessness or willful misconduct of the indemnitee (i.e. no more Type I indemnity with design professionals). The amendment also provides that “in no event shall the cost to defend charged to the design professional exceed the design professional’s proportionate percentage of fault”, with a limited opportunity for reallocation in the event another defendant is judgment proof.
However, the duty to defend still remains and still arises at the time of the tender of the defense (both issues that were unsuccessfully targeted by the design professional lobbyists).
Reprinted courtesy of
Mark Himmelstein, Newmeyer & Dillion LLP and
Jenny Guzman, Newmeyer & Dillion LLP
Mr. Price may be contacted at mark.himmelstein@ndlf.com
Ms. Zucker may be contacted at jenny.guzman@ndlf.com
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Building a Strong ESG Program Can Fuel Growth and Reduce Company Risk
June 19, 2023 —
The Hartford Staff - The Hartford InsightsCompanies are addressing today’s evolving ESG (Environmental, Social and Governance) issues like they never have before. From climate change to diversity, equity and inclusion, these topics are at the forefront of discussion for businesses, with many seeking to understand stakeholder concerns and implement strategies to improve their ESG efforts.
Stakeholders – consumers, investors and employees alike – have recently become more vocal and united in their demand for sustainable corporate behavior. In fact, 83% of consumers think companies should be actively working on Environmental, Social and Governance (ESG) program best practices and 86% of employees prefer to support or work for companies that care about the same issues they do.1 In turn, companies are addressing these issues like they never have before, in recognition of their importance as indicators of long-term value.
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The Hartford Staff, The Hartford Insights
The Ghosts of Tariffs Past May Help Us in the Future
January 07, 2025 —
Kellie Ros - ConsensusDocsThe havoc material tariffs have caused the construction industry is nothing new. President-Elect Donald Trump imposed heavy tariffs on steel and aluminum in his first administration in 2016. While the tariffs themselves were not wholly unexpected, the ripple effect of those tariffs (coupled with the impacts of the COVID-19 pandemic) caused unexpected challenges for the construction industry. Those included allocating the risk of the additional costs caused by tariffs, supply and demand issues, grappling with escalation clauses, and navigating fixed price projects. The industry must now utilize the lessons learned from the rear-view mirror to strategically prepare for what was promised to be a second round of tariffs come January 2025.
Tariffs’ Impacts on Material Prices Everywhere
New or increased tariffs have the potential to raise prices for a wide range of construction inputs. Based on simple supply and demand principles, this includes inputs produced domestically that compete with foreign imports. For example, if a 20% tariff is imposed on Chinese steel, contractors may look to procure Brazil or U.S. steel in an effort to cut their costs. Such a rush to those less-costly alternatives may result in a supply shortage or an increase in prices in the marketplace across the globe. This occurred in 2016 when material prices indirectly related to the inputs on which the tariffs were imposed even increased. Contractors may be well served to get ahead of anticipated price increases and purchase materials now or take other actions in negotiating contracts to protect themselves.
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Kellie Ros, Peckar & Abramson, P.C.Ms. Ros may be contacted at
kros@pecklaw.com
The Impact of the IIJA and Amended Buy American Act on the Construction Industry
May 23, 2022 —
Chad Theriot & Stan Milan - ConsensusDocsContractors working on federally funded construction projects need to be aware of the new Infrastructure Investment and Jobs Act (IIJA) and amendments to the Buy American Act (BAA) which have expanded the requirement that contractors use domestic goods and materials on their projects. Failure to consider these requirements could have far-reaching impacts.
Overview of Domestic-Procurement Laws and Regulations
A number of domestic-preference laws exist today, which generally require that certain goods purchased with federal funds must be produced primarily in the United States. Projects affected include Department of Transportation (DOT)-funded highways, public transportation, airports, aviation, and rail, and Environmental Protection Agency (EPA)-funded water infrastructure initiatives, among others.
Reprinted courtesy of
Chad Theriot, Jones Walker (ConsensusDocs) and
Stan Millan, Jones Walker (ConsensusDocs)
Mr. Theriot may be contacted at ctheriot@joneswalker.com
Mr. Millan may be contacted at smillan@joneswalker.com
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Former Sponsor of the Lenox Facing Suit in Supreme Court
January 13, 2014 —
Melissa Zaya-CDJ STAFFLewis Futterman, former sponsor of the Lenox condominium in Harlem, New York, is being sued by the condo board for alleged “building code violations, construction defects, and fraud” according to New York Curbed. The residents claim that Futterman filed for bankruptcy in 2010 to avoid paying for repairs. The Lenox condo board filed suit in the New York Supreme Court last December 31st.
The Lenox’s condo board claims that the building has “fundamental structural flaws, a defective roof and pervasive leakage,” reports Rowley Amato of New York Curbed. The board also claims the original offering plans were not the same as the units purchased by residents in 2006. Residents paid an estimated two hundred and sixty thousand to repair defects within the condominium, and they are pursuing a minimum of four million in damages.
Katherine Clarke of The Real Deal stated that Futterman would only “say that the issue was between the residents and the construction company which built the project.”
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Court Addresses HOA Attempt to Restrict Short Term Rentals
December 11, 2018 —
Kevin J. Parker - Snell & Wilmer Real Estate Litigation BlogIn a recent case, the Texas Supreme Court addressed an attempt by a homeowners’ association (“HOA”) to restrict short-term rentals based upon recorded Covenants, Conditions, and Restrictions (“CC&Rs”) applicable to a residential subdivision. The property was a single-family home. The homeowner rented the home through websites such as VRBO. The HOA issued notices of violation; the homeowner kept renting; the HOA assessed fines against the property. The property owner then sought a declaration from the court that the CC&Rs did not impose a minimum duration on occupancy or leasing. The trial court agreed with the HOA. The Texas Court of Appeals also agreed with the HOA. The Texas Supreme Court reversed, holding that the CC&Rs, as properly interpreted, did not prohibit short-term rentals. In arriving at its holding, the Texas Supreme Court analyzed the CC&Rs in detail and came to an interpretation different than the trial court and the Court of Appeals.
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Kevin J. Parker, Snell & WilmerMr. Parker may be contacted at
kparker@swlaw.com
‘Hallelujah,’ House Finally Approves $1T Infrastructure Funding Package
November 15, 2021 —
Tom Ichniowski - Engineering News-RecordAfter nearly three months in a holding pattern and a long day of back-and-forth negotiations among House Democrats, the chamber approved a sweeping, multi-year infrastructure funding package late on Nov. 5 that will provide an estimated $1 trillion for a wide range of infrastructure categories, including highways, transit, rail, water, power and broadband.
Reprinted courtesy of
Tom Ichniowski, Engineering News-Record
Mr. Ichniowski may be contacted at ichniowskit@enr.com
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Vincent Alexander Named to Florida Trend’s Legal Elite
August 10, 2020 —
Vincent Alexander - Lewis BrisboisFort Lauderdale Partner Vincent F. Alexander has been named to Florida Trend’s Legal Elite as both a Legal Leader and an Up & Comer. In receiving this recognition, Mr. Alexander joins the less than 2% of active Florida Bar members who appear on this exclusive list. In addition, as a Legal Elite Up & Comer, Mr. Alexander is among only 112 attorneys who received the most votes in a special category for attorneys under the age of 40 who have exhibited leadership in the law and in their community.
Florida Trend’s Legal Elite, now in its 17th year, presents the state’s top licensed and practicing attorneys selected by their peers. In composing its 2020 edition of Legal Elite, Florida Trend invited all in-state Florida Bar members to name attorneys who they hold in high regard or who they would recommend to others. The publication also asked voters to name three up and coming attorneys. Nominated attorneys were then scored based on the number of votes that they received, with more weight assigned to votes from outside of their own firms.
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Vincent Alexander, Lewis BrisboisMr. Alexander may be contacted at
Vincent.Alexander@lewisbrisbois.com