What I Love and Hate About Updating My Contracts From an Owners’ Perspective
July 25, 2022 —
ConsensusDocsThe Construction Owners Association of America
(COAA) is the largest association of construction owners in the United States. COAA just held its Spring Connect conference in downtown Baltimore on the University of Maryland, Baltimore (UMB) campus. One session featured “What I Love and Hate About Updating My Contracts from an Owners’ Perspective.”
ConsensusDocs’ Executive Director & Senior Counsel Brian Perlberg spoke on a panel with Joe Cleves of Taft Law and Pen Wolf from the Cleveland Clinic.
Pen Wolf from Cleveland Clinic outlined the process he used to update his contracts recently. The Cleveland Clinic builds facilities annually and owns different facilities at different locations. The clinic employs over 75,000 employees. For an owner with a broad reach like the Cleveland Clinic, Wolf recommended using outside counsel with construction expertise to update contracts. He concluded that while it was a significant effort, the endeavor to update the Clinic’s contracts was absolutely worth the time commitment and expense. Wolf shared that updating the Clinic’s contracts has generated positive reviews internally and externally. Now their written agreements better reflect their business practices in their construction design and construction program.
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ConsensusDocs
"Decay" Found Ambiguous in Collapse Case
August 31, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court granted, in part, the insured's motion for summary judgment seeking coverage for a collapse of a church's ceiling. Derbyshire Baptist Church v. Church Mut. Ins. Co., 2020 U.S. Distl LEXIS 113346 (E.D. Va. June 29, 2020).
A large portion of the sanctuary ceiling of the insured's church collapsed. A claim was filed with the insurer. The insurer hired a forensic engineer who found the collapse was caused by the disconnection of wire support hangers from the wood roof beams. Further, "the redistribution of load on the hangers resulted in a progressive failure of the hangers and their supported components." Based on these findings, the insurer denied coverage.
The policy excluded coverage for collapse, but in the Additional Coverage portion of the policy, collapse caused by "decay that is hidden from view" was covered. The court pondered the meaning of "decay," which was not defined in the policy.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Newport Beach Partners Jeremy Johnson, Courtney Serrato, and Associate Joseph Real Prevailed on a Demurrer in a Highly Publicized Shooting Case!
November 11, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara’s Partners Jeremy Johnson, Courtney Serrato, and Associate Joseph Real prevailed on a Demurrer in a highly publicized shooting case.
Plaintiffs filed a lawsuit alleging negligence, negligent hiring, supervision and retention, and public nuisance against BWB&O’s clients, a highly recognized hospitality and lifestyle company with nightlife and restaurant venues, in addition to other celebrity defendants. Plaintiffs were the victims of a shooting that occurred by an unknown individual(s) outside and near the restaurant/venue owned by BWB&O’s clients.
Plaintiffs alleged it was BWB&O’s clients that were responsible for the third parties’ criminal acts because BWB&O’s clients attracted more people than the venue’s capacity, causing people to occupy the street, sidewalk, and property nearby. Plaintiffs further alleged that BWB&O’s client should have anticipated or known that criminal conduct, including gun violence, would take place.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
How to Make the Construction Dispute Resolution Process More Efficient and Less Expensive
July 09, 2014 —
Beverley BevenFlorez-CDJ STAFFJohn P. Ahlers on the Ahlers & Cressman PLLC blog has posted the first of a two-part series on Ways to Make the Construction Dispute Resolution Process More Efficient and Less Expensive: “In our view, construction is well suited to streamlining the resolution process, particularly when experienced lawyers and judges / arbitrators are involved.”
“Discovery can take vast amounts of time and cost a company significant resources,” Ahlers wrote. “Many times, only small portions of a deposition might actually be used at the hearing in cross examination. The question then becomes whether the cost of the discovery is providing a return.”
Ahlers listed several steps and requirements that arbitrators, judges, or the parties themselves can impose to make the process more efficient, such as client involvement, avoiding too much process at the expense of practical outcomes, discovery limitations, among others.
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Separation of Insureds Provision in CGL Policies
August 31, 2020 —
David Adelstein - Florida Construction Legal UpdatesCGL policies contain a “Separation of Insureds” provision. This provision oftentimes states:
Except with respect to the Limits of Insurance, and any rights or duties specifically assigned this Coverage Part to the first Named Insured, this insurance applies:
- As if each named insured were the only Named Insured; and
- Separately to each insured against whom claim is made or “suit” is brought.
This provision is designed to “create separate insurable interests in each individual insured under a policy, such that the conduct of one insured will not necessarily exclude coverage for all other insured.” Evanson Ins. Co. v. Design Build Interamerican, Inc., 569 Fed.Appx. 739 (11th Cir. 2014). This provision also allows one insured under the policy (e.g., additional insured) to sue another (e.g., named insured) without violating potential coverage because there are separate insurable interests. This is a valuable provision in CGL policies.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Blackstone Suffers Court Setback in Irish Real Estate Drama
August 20, 2014 —
Donal Griffin and Dara Doyle – BloombergAt 11:15 a.m. on July 29, Irish property developer Michael O’Flynn realized that Blackstone Group LP (BX) was trying to gain control of his real estate empire, which includes the country’s tallest residential tower.
Ten weeks earlier, the private equity firm had bought 1.8 billion euros ($2.4 billion) of loans to O’Flynn’s companies and the developer personally. Coming out of a meeting, he learned Blackstone was demanding the immediate repayment of 16 million euros of personal loans secured on his shareholdings -- even though he wasn’t in default. By the end of the day he had lost control of the business he’d spent more than 30 years building.
“I was shocked that they’d made this demand,” O’Flynn, 57, said in an interview. “It took time to understand the gravity of it because I’ve never been served with a demand in my 36 years of business. I was very recently transferred to Blackstone and I was doing my damnedest to work with them.”
Mr. Doyle may be contacted at ddoyle1@bloomberg.net; Mr. Griffin may be contacted at dgriffin10@bloomberg.net
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Donal Griffin and Dara Doyle, Bloomberg
Suppliers of Inherently Dangerous Raw Materials Remain Excluded from the Protections of the Component Parts Doctrine
December 02, 2015 —
Leah B. Mason & Michael J. Worth – Haight Brown & Bonesteel, LLPIn Brady v. Calsol, Inc. 2015 No. B262028, the California Court of Appeal, Second District, reversed summary judgment for a raw materials supplier where there was a triable issue of fact as to whether the benzene levels contained in the supplier’s mineral spirits could have caused plaintiffs’ leukemia.
Plaintiffs were mechanics Ernest Brady and David Gibbs, who used Safety-Kleen solvent to degrease automotive parts. Brady and Gibbs were diagnosed with leukemia allegedly caused by exposure to Safety-Kleen solvent during the course of their employment. In 2008, Plaintiffs sued Calsol, Inc., a distributor of mineral spirits for the ultimate manufacturer, Safety-Kleen Systems, Inc. Plaintiffs asserted negligence and strict products liability claims. Specifically, plaintiffs alleged that benzene, a carcinogen found in mineral spirits, caused their leukemia. Benzene is only carcinogenic to humans at certain levels. The parties dispute the levels of benzene found in the mineral spirits supplied to Safety-Kleen. Calsol contended the benzene levels were present only in low concentrations. Plaintiffs alleged the benzene levels were capable of causing injury.
Reprinted courtesy of
Leah B. Mason, Haight Brown & Bonesteel LLP and
Michael J. Worth, Haight Brown & Bonesteel LLP
Ms. Mason may be contacted at lmason@hbblaw.com
Mr. Worth may be contacted at mworth@hbblaw.com
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Proposed Changes to Federal Lease Accounting Standards
January 19, 2017 —
Susan Elliott & Lori A. Lange - Peckar & Abramson, P.C.The Federal Accounting Standards Advisory Board (FASAB) has proposed amendments to federal lease accounting standards found within Statement of Federal Financial Accounting Standard (SFFAS) 5, ‘Accounting of Liabilities of the Federal Government,’ and SFFAS 6, ‘Accounting for Property, Plant, and Equipment,’ promulgated by FASAB. The proposals would require entities leasing property to the federal government, such as private landlords, to recognize a lease receivable and deferred revenue at the beginning of the lease term (except on intragovernmental or short-term leases). The proposals are slated to take eff ect in reporting periods following September 30, 2018.
PUBLIC COMMENTS ARE DUE JANUARY 6, 2017.
The federal government is one of the largest tenants in the country. The General Services Administration (GSA) alone leases space to house over 600,000 government workers. GSA has over 8,000 leases throughout the U.S.
Reprinted courtesy of
Susan Elliott, Peckar & Abramson, P.C. and
Lori A. Lange, Peckar & Abramson, P.C.
Ms. Elliott may be contacted at selliott@pecklaw.com
Ms. Lange may be contacted at llange@pecklaw.com
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