A Bill for an Act Concerning Workers’ Compensation – 2014 Edition
January 13, 2014 —
W. Berkeley Mann, Esq. - Higgins, Hopkins, McLain & Roswell, LLCWorkers’ compensation (“WC”) costs are a significant portion of the labor costs experienced by construction companies. These costs have typically risen over time due to the “experience modification factor.” This term means the amortized cost of past claims recovered through future premiums charged by an insurer to an employer. As a company’s claims go up in both number of claims and total expense of claims over time, the experience modifier increases as a multiplier of the base WC premium. As with other general medical costs, the question is not whether the cost of claims with a medical component will go up, but rather the rate at which they will increase from year to year.
It is with these facts of life in mind that it is reported that the Colorado legislature will take up a bill concerning WC benefits in the 2014 session. This bill, if passed, will have the likely effect of dramatically increasing the cost of WC claims to the construction industry - along with all other Colorado employers.
The draft bill has three distinct changes for the current law, each of which serves to change the delicate balance of rights and obligations of employers and employees under existing law.
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W. Berkeley Mann, Esq.W. Berkeley Mann, Esq. can be contacted at
mann@hhmrlaw.com
Sinking Floor Does Not Meet Strict Definition of Collapse
August 17, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe court determined that the sinking of the insured's floor caused by termites and rot deterioration did not meet the homeowners policy's definition of collapse. Stewart v. Metro. Lloyds Ins. Co., 2020 U.S. Dist. LEXIS 111527 (S.D. Tex. June 24, 2020).
Beatrice Stewart, the homeowner, heard a loud bang one night as she lay in bed. The next day, she found that the floor near her bathroom and hallway had sunk and the house was sitting lower. She admitted the house never completely fell down. Upon investigation, Lloyds found that rot in the floor joists and subfloor decking were caused by a combination of termite damage and exposure to moisture. Lloyds denied the claim.
Stewart sued. Lloyds argued the policy required an "entire collapse" of the building or any part of a building, which did not occur here. The policy defined "collapse" as "an abrupt falling down or caving in of a building or any part of a building." The record did not show that any part of Stewart's floor caved in.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
The Road to Rio 2016: Zika, Super Bacteria, and Construction Delays. Sounds Like Everything is Going as Planned
July 28, 2016 —
Garret Murai – California Construction Law BlogAthletes began to arrive at the Olympic Village in Rio de Janeiro on Sunday in anticipation of the 2016 Summer Olympics which begin on August 5th.
Perhaps the most closely watched event, however, has already begun; and it has no medals. And that is whether Brazil can successfully pull off the Olympics at all.
For a city known for its Carnival the months leading up to the Olympics have been just as crazy and chaotic as the days leading up to Mardi Gras. There’s the Zika virus, the discovery of a “super” bacteria, the impeachment of its President, and Brazil’s worst recession in 100 years. And that’s just a partial list.
And then, of course, there’s the construction.
Cities bidding to host the Olympics often cite revenue from tourism and long-term capital improvements which will benefit its populace long after the games have ended as economic justification for hosting the Olympics. However, the cost to host the Olympics is often underestimated and Rio is no exception, running an estimated $6 billion over budget.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Water Drainage Case Lacks Standing
March 28, 2012 —
CDJ STAFFThe Texas Court of Appeals has ruled in the case La Tierra de Simmons Familia Ltd. V. Main Event Entertainment, LP. The trial court had found for Main Event. On appeal, the court threw out some of the grounds on which the trial court had reached its decision.
The case involved two commercial lots in northwest Austin, Texas. The uphill tract (Phase III of the Anderson Arbor development) diverts its runoff onto the lower tract (the “Ballard tract”). The owners of the Ballard tract claim that “the drainage system was designed or constructed in a manner that has damaged and continues to damage the Ballard tract.”
Both tracts have undergone changes of ownership since the construction of the drainage system in 2004. At the time the drainage system was constructed, the parcel was owned by Sears Roebuck and Co. Sears later sold the property. Main Event Entertainment is the current tenant. Likewise, the Ballard tract was previously owned by the Ballard Estate which sold the property to La Tierra on an “as is” basis in 2007.
After La Tierra bought the Ballard tract, La Tierra’s engineer “witnessed and videotaped what he described as ‘flooding’ on the Ballard tract caused by storm water discharge from the Anderson Arbor drainage system during a rainfall event.” La Tierra determined that an adequate drainage system would cost about $204,000. Development plans were put on hold.
La Tierra sued Main Event and various other parties associated with the uphill tract, seeking “actual damages for (1) decrease and loss in rental income due to delay in obtaining the development permit, (2) interest on carrying costs during that time period, (3) the cost to build a water conveyance system on the Ballard tract, (4) engineering fees incurred to redesign the water conveyance system, (5) unspecified out-of-pocket real estate expenses, and (6) property devaluation occasioned by the need to construct an expensive water conveyance system.” The trial court never reached these claims, ruling instead that La Tierra lacked standing, that its claims were barred under the statute of limitations, and that there was no evidence of damage.
La Tierra appealed, arguing that “(1) the summary-judgment evidence does not conclusively establish that property damage claims accrued or were discovered prior to September 11, 2007, which is within the limitations period and was after La Tierra purchased the property; (2) even if the property was damaged before La Tierra acquired ownership of the Ballard tract, standing exists based on the assignments of interest from the Ballard Estate heirs, and the discovery rule tolls limitations until the injury was discovered on September 11, 2007; (3) limitations does not bar La Tierra's request for injunctive relief; (4) La Tierra's water code claim against Main Event and M.E.E.P. is viable based on their control over the drainage system, which makes them necessary and indispensable parties for injunctive relief; (5) La Tierra presented more than a scintilla of evidence to raise a fact issue on damages, causation, and other essential elements of its causes of action; and (6) the trial court abused its discretion when it sustained the defendants' objections to La Tierra's summary-judgment evidence.”
The appeals court concluded that La Tierra’s second claim was irrelevant to standing, as La Tierra “obtained assignments from the Ballard Estate heirs ? nearly one year after the lawsuit was initially filed.” Nor did the court accept their first point. The water system had been operating unaltered since January, 2004, with monthly maintenance and inspection to maintain its designed operation. Further, a feasibility report La Tierra received stated that “over sixteen acres drain into those ponds, and thus onto this site.” The court noted that “the underlying facts giving rise to a cause of action were known before La Tierra acquired ownership of the Ballard tract.”
The court concluded that the drainage issue is a permanent injury, but that it “accrued before La Tierra acquired an ownership interest in the property.” As La Tierra has standing, the appeals court ruled that it was improper for the trial court to rule on the issues. The appeals court dismissed the questions of whether the case was barred under the statute of limitation and also the question of whether or not La Tierra had damages.
As the issue of standing would not allow La Tierra to bring the suit, the appeals court found for the defendants, dismissing the case for this single reason, and otherwise affirming the ruling of the lower court.
Read the court’s decision…
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Out of Eastern Europe, a Window Into the Post-Pandemic Office
September 28, 2020 —
Andra Timu & Irina Vilcu - BloombergSpecial quarantine rooms. Floor-to-ceiling walls in bathroom stalls. Touchless entrances that take your temperature. This is what telecommunications company Ericsson’s office building in Bucharest looks like after coronavirus. The space has become the pilot for a 100-prong coronavirus standard that a real estate investor in Eastern Europe is pitching as a new global “immune” building standard.
Liviu Tudor, president of the Brussels-based European Property Federation, hopes the standard will convince more employees to go back to work. He’s gathered a team of experts in construction, health care and engineering, such as such as Adrian Streinu-Cercel, the head of Bucharest's biggest infectious diseases hospital, to develop three tiers of “immune” building certifications that he says are intended to make indoor spaces “pandemic proof.”
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Andra Timu & Irina Vilcu, Bloomberg
Endorsement to Insurance Policy Controls
March 28, 2022 —
David Adelstein - Florida Construction Legal UpdatesI’ve said this before, and I’ll say it again: an insurance policy is a complicated reading and this reading gets compounded with endorsements that modify aspects of the policy.
What you think may be covered may in fact not be covered by virtue of an endorsement to the insurance policy. This is why when you request an insurance policy you want to see the policy PLUS all endorsements to the policy. And when you analyze a policy, you need to do so with a full reading of the endorsements.
An endorsement to an insurance policy will control over conflicting language in the policy. Geovera Speciality Ins. Co. v. Glasser, 47 Fla.L.Weekly D436a (Fla. 4th DCA 2022) (citation omitted).
The homeowner’s insurance coverage dispute in Glasser illustrates this point. Here, the policy had a water loss exclusion. There was an exception to the exclusion for an accidental discharge or overflow of water from a plumbing system on the premises. But there was an endorsement. The endorsement modified the water loss exclusion to clarify that the policy excluded water damage “in any form, including but not limited to….” Examples were then given which did not include the accidental discharge or overflow of water from a plumbing system.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
A General Contractors Guide to Bond Thresholds by State
June 13, 2018 —
Wally Zimolong – Supplemental Conditions Author: Eric Weisbrot is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry under several different roles within the company, he is also a contributing author to the surety bond blog.
For general contractors in construction, there are many facets of business management that must be considered and then accomplished over time. Operating a successful general contractor business regardless of size or niche requires an understanding of bookkeeping, personnel management, regulatory compliance, as well as revenue potential for each project. However, one often overlooked aspect of being a general contractor – having the appropriate contractor license and minimum surety bond – correlates to each of these required fragments of the business from the start.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Construction Litigation Group Listed in U.S. News Top Tier
November 06, 2013 —
CDJ STAFFIn the U.S. News & World Reports annual ranking of law firms, the construction litigation practice of Williams Mullen was included in the nationwide first-tier rankings. Additionally, their Hampton Roads, Virginia office was in the Metropolitan first-tier ranking for a variety of practices, including construction lititgation.
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