High Court Could Alter Point-Source Discharge Definition in Taking Clean-Water Case
March 18, 2019 —
Mary B. Powers - Engineering News-RecordThe U.S. Supreme Court's decision to review lower court rulings on whether a permit is required under the federal Clean Water Act when pollutants originate from a point source but are carried to navigable waters by a non-point source such as groundwater could set some new parameters for compliance, observers say.
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Mary B. Powers, ENRENR may be contacted at
ENR.com@bnpmedia.com
Eleventh Circuit Vacates District Court Decision Finding No Duty to Defend Faulty Workmanship Claims
November 02, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe Eleventh Circuit vacated the district court's grant of summary judgment to the insurer finding there was no duty to defend. Southern-Owners Ins. Co. v. Mac Contractors of Florida, LLC, 2020 U.S. App. LEXIS 23918 (11th Cir. July 29, 2020).
Mac Contractors entered into a contract with homeowners to serve as general contractor for the construction of a custom residence. Problems arose during construction and Mac eventually led the job site before completing the project. The home owners sued, alleging that Mac and its subcontractors had left the residence "replete with construction defects." Damages were sought for having to repair and remediate all defective work performed by Mac.
Mac tendered under its CGL policy to its insurer, Southern-Owners. A defense was granted, but later withdrawn when Southern-Owners filed suit seeking a declaration that it owed no duty to defend or indemnify Mac. On cross-motions for summary judgment, the district court found in favor of Southern-Owners based on the exclusion for "Damage to Your Work." The Eleventh Circuit vacated on appeal, concluding that the underlying complaint could fairly be construed to allege damages that fell outside of the exclusion.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
“A No-Lose Proposition?”
October 07, 2024 —
Daniel Lund III - LexologyA Miller Act payment bond surety and its principal general contractor both sued in federal court in New Orleans by a project subcontractor sought to compel arbitration the claims against both contractor and surety based on an indisputably enforceable arbitration clause in the subcontract. This was urged to avoid separate actions against the contractor (arbitration) and its surety (litigation), even though the surety was not a party to the subcontract and, therefore, not a party to the arbitration clause.
In the face of the lack of an express agreement to arbitrate, the contractor and contractor argued that “no federal statute or policy prohibits all of Plaintiff’s claims from proceeding to arbitration….” Additionally, those parties urged that the surety should be allowed to affirmatively compel arbitration because the surety “would otherwise have the ability to assert the right to compel arbitration as a defense….”
The New Orleans federal district court was unpersuaded:
“[D]istrict courts within this circuit have recognized that ‘Miller Act claims by a subcontractor for unpaid labor and materials are separate and distinct from those for general breach of contract… [and] arbitration and Miller Act suits, are not, per se, inconsistent with one another.’…[A]bsent express contractual intent to subject Miller Act claims to arbitration, the court [will] not force the parties to arbitrate claims against nonparties to the contract at issue…. [C]laims against a surety, which was a non-signatory to the contract, would not be subject to arbitration without any contractual basis to do so.”
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Circuit Court Lacks Appellate Jurisdiction Over Order Compelling Appraisal
August 21, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe Eleventh Circuit determined it lacked appellate jurisdiction over an order issued by the district court compelling an appraisal. Breakwater Commons Association, Inc. v. Empire Indem. Ins. Co., 2023 U.S. App. LEXIS 14459 (11th Cir. June 9, 2023).
Following Hurricane Irma, Breakwater Commons Association filed a claim with Empire Indemnity Insurance Company for property damage. Empire agreed to cover some of the damage to buildings, but a dispute arose over the amount of loss. Breakwater sought to invoke the appraisal provision in the policy. Empire refused to engage in an appraisal. Breakwater sued, and filed a motion to compel appraisal and to stay the proceedings pending the completion of the appraisal process.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Will There Be Construction Defect Legislation Introduced in the 2019 Colorado Legislative Session?
March 18, 2019 —
David McLain - Colorado Construction Litigation BlogWith the 2019 Colorado legislative session well underway, the construction industry is waiting with bated breath to see what the Democrat controlled legislature might do with respect to construction defect legislation. In recent years, having a split legislature has prevented any attempts to roll back positive changes in the law, either from the legislature or Colorado courts, that have been hailed by the construction community.
This year, odds are good that we will see at least one bill similar to two introduced last year that would hinder the ability to have disputes decided by binding arbitration. While not full frontal assaults on the Colorado Supreme Court decision in the Vallagio case, HB18-1261, the “Colorado Arbitration Fairness Act,” and HB 18-1262, the “Arbitration Services Provider Transparency Act,” would have negatively impacted the ability to resolve any type of case through arbitration. Anything that prevents the resolution of construction defect cases through arbitration will increase the judgments and settlements in such cases, ultimately increasing the costs of construction and for insurance for those in the industry.
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David McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
Contractor Sued for Contract Fraud by Government
December 11, 2013 —
CDJ STAFFA Canton, Ohio construction company, TAB Construction, has been sued by the federal government over claims that the company lied about its location in order to receive contracts from the U.S. government. According to the suit, TAB received about $13 million for contracts with the U.S. Army Corps of Engineers. The firm had gained the contracts through a Small Business Administration program that allowed firms in certain areas to compete for contracts, however, the firm was not located in the appropriate area.
When the SBA found that TAB was not doing business out of an address that qualified for the SBA’s HUBZone program, the company claimed to be working from another address that qualified. Upon investigation, the SBA found this also was not true.
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Lien Law Change in Idaho
December 05, 2022 —
Grace Maldonado - Gordon & Rees Construction Law BlogJuly 1, 2022, the Idaho Legislature’s amendments to I.C. 45-507 came into effect. This statute regulates the steps and requirements to sustain a valid mechanics and materialmen lien. There were three changes to the statute: (1) clarification as to who may personally serve a notice of lien; (2) additional contents that must be included in a lien claim; and (3) authorization for attorney fees.
Prior to the amendments, any person could, on behalf of the entity (contractor) seeking to establish a lien, personally serve the owner of the property with a claim of lien. Now, for personal service to be considered effective, the owner or reputed owner must be personally served by an officer “authorized by law” to serve process. Essentially, a process server needs to be employed for personal service. A contractor may still serve an owner via certified mail
The second change relates to required disclosures. Now, in order to have a valid lien, a contractor must attach a copy of the required disclosures and acknowledgement of receipt of said disclosures with the claim of lien. If the claim does not contain the required documents, it will be considered invalid. This is an important change, because even if the contractor provides all required documents to the owner if there is no copy of the documents attached to the claim of lien the contractor will lose their lien rights – assuming the deficiency is not corrected prior to the statute of limitations running.
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Grace Maldonado, Gordon Rees Scully MansukhaniMs. Maldonado may be contacted at
gmaldonado@grsm.com
Colorado Legislative Update: HB 20-1155, HB 20-1290, and HB 20-1348
August 03, 2020 —
Jean Meyer - Colorado Construction LitigationThis year’s Colorado State Legislative session was cut short. However, in the period of time Colorado’s Legislature was in session, it passed and evaluated important legislation for Colorado homebuilders. This article highlights relevant legislation for Colorado homebuilders.
1. HB 20-1155
This Bill creates new requirements on new homebuilders to offer renewable energy systems to the buyer of a new home. Specifically, the Bill requires homebuilders to offer each of the following:
- A solar panel system, a solar thermal system, or both;
- Prewiring or pre-plumbing for the above solar systems; and,
- A chase or conduit for future installation of such systems.
The Bill further requires Colorado homebuilders to offer homebuyers one of the following:
- An electric vehicle charging system;
- Prewiring for the future installation for such a system; or,
- A plug-in receptacle in a place accessible to a vehicle parking area.
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Jean Meyer, Higgins, Hopkins, McLain & Roswell, LLCMr. Meyer may be contacted at
meyer@hhmrlaw.com