Slavin Doctrine and Defense from Patent Defects
June 13, 2018 —
David Adelstein - Florida Construction Legal UpdatesThe Slavin doctrine is an affirmative defense primarily geared to the personal injury context designed to protect contractors from third-party negligence-type claims when an owner accepts a patent defect.
The Slavin doctrine protects contractors from liability for injuries to third parties by presuming that the owner has made a “reasonably careful inspection” of the contractor’s work prior to accepting it as completed; if the owner accepts the contractor’s work as complete and an alleged defect is patent, then the owner “accepts the defects and the negligence that caused them as his own,” and the contractor will no longer be liable for the patent defect.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Another Colorado City Passes Construction Defects Ordinance
February 18, 2015 —
Beverley BevenFlorez-CDJ STAFFLone Tree, Colorado’s City Council passed an ordinance to distinguish its construction defect laws from the state’s, according to the Denver Business Journal. The city of Lakewood passed a similar ordinance last October.
The Denver Business Journal reported that the new “ordinance makes changes such as establishing time frames for notifying the builder of a construction defect, allowing the builder to inspect the property and allowing the builder to repair the problem, with the homeowners' agreement.”
Read the court decisionRead the full story...Reprinted courtesy of
Alaska Supreme Court Finds Insurer Owes No Independent Duty to Injured Party
December 14, 2020 —
Tred R. Eyerly - Insurance Law HawaiiAfter the victim incurred injury inflicted by an insured party, the Alaska Supreme Court determined that the insurer owed no duty to the injured party. Martinez v. Government Employees Ins. Co., 2020 Alaska LEXIS 111 (Alaska Sept. 4, 2020).
Joshua Martinez lost control of his truck and crashed into Charles Burnett's cabin. The cabin's heating fuel tank was damaged, and fuel drained onto the property and under the cabin. Burnett further alleged he suffered bodily injuries.
Martinez was insured by GEICO under an auto policy. Two days after the accident, the state Department of Environmental Conservation (DEC) advised GEICO to hire a qualified environmental consultant and crew to clean up the fuel spill. Burnett told GEICO he wanted to do the cleanup himself and offered to do so for $25,000, the approximate amount of the consultant retained by GEICO. DEC did not consider Burnett qualified to handle the cleanup.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Unrelated Claims Against Architects Amount to Two Different Claims
July 30, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe Second Circuit found that two claims arising from the same project were unrelated, creating two separate payments by the insurer for the two separate claims. Dormitory Auth. of New York v. Continental Cas. Co., 2014 U.S. App. 12088 (2nd Cir. June 23, 2014).
In 1995, the State agency contracted with the insured architectural firm to design and oversee the construction of a new dormitory at City University of New York. Plans drawn by the architects erred in their estimate of the steel requirement. To recover losses from the resulting delay and expense, the agency sent a demand letter in May 2002 to the architects detailing the Steel Girt Tolerance issue.
After the project was finished in 2001, another problem was discovered: excess accumulations of snow and ice were sliding off the building onto sidewalks a considerable distance away. The Ice Control Issue was studied during the winter of 2003-04. The conclusion was that the design of the facade failed to account for temperature variations appropriate for a building in New York. The problem could not be resolved by adding canopies, which would have been a cheaper fix. Study of the problem continued into 2005.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Courts Take Another Swipe at the Implied Warranty of the Plans and Specifications
December 15, 2016 —
John P. Ahlers – Ahlers & Cressman PLLCImplied warranties are warranties created by law, legislation, or courts. In the construction industry, one of the most prominent implied warranties is that owners who provide plans and specifications to their contractors impliedly warrant the adequacy of their plans and specifications.[i] That implied warranty had its beginning in the 1918 US Supreme Court decision of U.S. v. Spearin[ii] and is, therefore, popularly known as the Spearin Doctrine. Under the Spearin Doctrine, if the contractor completes the work in accordance with the owner’s plans and specifications, but there is a deficiency or failure, the owner, not the contractor, is responsible. When the owner breaches its implied warranty, in most instances, the contractor is entitled to additional compensation for extra work performed, delays experienced, and other additional expense or loss occasioned by the warranty breach. A recent case demonstrates that this implied warranty is not “immunity.” The contractor must still act reasonably and diligently, particularly when the contract provisions so require.
In the recent Fifth Circuit case of Dallas/Ft. Worth International Airport v. INet Airport Systems,[iii] the court, despite the implied warranty that existed, did not grant the contractor summary judgment on claims involving admitted plan deficiencies, since factual issues existed regarding the contractor’s cooperation and participation in the solution to the defects.
Read the court decisionRead the full story...Reprinted courtesy of
John P. Ahlers, Ahlers & Cressman, PLLCMr. Ahlers may be contacted at
jahlers@ac-lawyers.com
Chapman Glucksman Press Release
October 17, 2022 —
Chapman GlucksmanChapman Glucksman Dean & Roeb, a Los Angeles based law firm, has unveiled a dynamic new brand. The firm will now be known as “Chapman Glucksman.” The name change reflects the forward thinking and creative approach that the firm brings to its client service. “Chapman Glucksman has always been a firm of innovative thinkers with a keen focus on obtaining very favorable results for our clients. Our new brand captures the firm’s energy and focus,” said Craig Roeb, a shareholder who has spent his entire legal career with the firm. “We are excited about the growth of Chapman Glucksman, with the recent addition of new shareholder, Greg Sabo, partners, Chelsea Zwart and David Weinberger, as well as six new associate attorneys. The continued growth of Chapman Glucksman is a reflection of our strong client loyalty and growth,” said Randall Dean, shareholder and head of the Professional Liability Practice Group.
Founded in 1985, Chapman Glucksman is a multi-faceted law firm with offices in Los Angeles, Orange County, Bay Area and Palm Springs. Our AV rated firm has diverse practice groups consisting of highly skilled, experienced, insightful, responsive, pragmatic and creative lawyers who vigorously advocate our client’s interests, and secure result-oriented, favorable and creative solutions to complex issues. Our achievements derive directly from our commitment to providing our clients with an unparalleled level of attention, exceptional work product and a strong work ethic with outstanding results achieved.
Read the court decisionRead the full story...Reprinted courtesy of
Chapman Glucksman
Insurance Client Alert: Mere Mailing of Policy and Renewals Into California is Not Sufficient Basis for Jurisdiction Over Bad Faith Lawsuit
January 28, 2015 —
Valerie A. Moore and Christopher Kendrick – Haight Brown & Bonesteel LLPIn Greenwell v. Auto-Owners Ins. Co. (No. C074546, filed 1/27/15), a California appeals court held that the use of a mailing address to send policies and renewals into California did not support jurisdiction for a California resident's bad faith lawsuit against a Michigan insurer over property coverage for a fire loss to a building in Arkansas.
In Greenwell, the insured was a California resident engaged in real estate investment. He purchased an apartment building in Little Rock, Arkansas. Using the services of an insurance broker in Little Rock, he purchased a package of general liability and commercial property insurance for the building from Auto-Owners Insurance Company, a Michigan insurer not licensed in California. The policy listed the insured's business address in California, the policy was mailed there, and renewed three times via the insured's California address.
Reprinted courtesy of
Valerie A. Moore, Haight Brown & Bonesteel LLP and
Christopher Kendrick, Haight Brown & Bonesteel LLP
Ms. Moore may be contacted at vmoore@hbblaw.com, Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Read the court decisionRead the full story...Reprinted courtesy of
In All Fairness: Illinois Appellate Court Finds That Arbitration Clause in a Residential Construction Contract Was Unconscionable and Unenforceable
August 22, 2022 —
Gus Sara - The Subrogation StrategistIn Bain v. Airoom, LLC, No. 1-21-001, 2022 Ill. App. LEXIS 241, the Appellate Court of Illinois (Appellate Court) considered whether the lower court erred in enforcing an arbitration clause in a construction contract between the parties and, as a result, dismissing the plaintiff’s lawsuit. The Appellate Court found that even if the arbitration clause was enforceable, the appropriate action would have been for the court to stay the lawsuit, as opposed to dismissing the case entirely. The Appellate Court then considered the language of the arbitration clause and found that several provisions were substantively unconscionable, which rendered the entire arbitration clause unenforceable. The Appellate Court reversed the lower court’s decision compelling arbitration and reinstated the plaintiff’s complaint.
In 2018, the plaintiff, Ms. Bain, a disabled senior citizen, hired the defendant, Airoom, LLC (Airoom), to renovate her home. Airoom provided its “Cash Sales Contract,” which included a binding arbitration clause. The clause required that any dispute arising or relating to the contract be resolved by binding arbitration through the American Arbitration Association (AAA), using the Construction Industry Arbitration Rules and Mediation Procedures (Construction Industry Rules).
Read the court decisionRead the full story...Reprinted courtesy of
Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com