Dump Site Provider Has Valid Little Miller Act Claim
October 19, 2020 —
Christopher G. Hill - Construction Law MusingsYou may have thought that a Virginia “Little Miller Act” bond claim, like a mechanic’s lien, could only be brought by those that provide materials and labor incorporated into the construction project. If you did, you aren’t alone.
In fact, Safeco Insurance Co. of America, a surety, made exactly the above argument in Yard Works LLC v. GroundDown Constructors LLC. In that case, a debris hauling company failed to pay Yard Works, the company that provided the dumping site for the debris. Yard Works sued pursuant to the Little Miller Act to get paid. In response, the surety sought to have the claim against the payment bond dismissed and argued that because Yard Works did not actually improve the property or provide improvements and that Yard Works only passively provided a dump site, Yard Works could not claim under the payment bond.
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The Law Office of Christopher G. HillMr. Eyerly may be contacted at
te@hawaiilawyer.com
Federal Court Rejects Insurer's Argument that Wisconsin Has Adopted the Manifestation Trigger for Property Policy
April 03, 2013 —
Tred Eyerly - Insurance Law HawaiiThe federal district court disagreed with the insurer's strident claim that Wisconsin followed the manifestation trigger for deciding coverage under a homeowner's policy. Strauss v. Chubb Indem. Ins. Co., 2013 U.S. Dist. LEXIS 224 (E.D. Wis. Jan. 2, 2013).
Several years after their house was constructed, the insureds discovered water damage. Chubb denied the claim. The insureds sued. Chubb moved for summary judgment and argued that the loss first manifested many years after its policy expired. Further, Chubb argued that Wisconsin followed the manifestation trigger for first-party property insurance, meaning that only the insurance policy in effect when the loss manifested was required to respond.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
A Court-Side Seat: May Brings Federal Appellate Courts Rulings and Executive Orders
June 29, 2020 —
Anthony B. Cavender - Gravel2GavelHere are a few interesting new rulings from the federal appellate courts.
COURT ORDERS
Like a Good Neighbor …? —
State of Maryland v. EPA
On May 19, 2020, the D.C. Circuit decided a Clean Air Act case involving the use of the “Good Neighbor Provision” of the Act, which is triggered when one state has a complaint about emissions generated in a neighboring upwind state that settle in the downwind state. Here, Maryland and Delaware filed petitions with EPA seeking relief from the impact of emissions from coal-fired power plants that allegedly affect their states’ air quality. EPA largely denied relief, and the court largely upheld the agency’s use and interpretation of the Good Neighbor Provision. The opinion is valuable because of its clear exposition of this complicated policy.
A Volatile Underground Issue —
Wayne Land and Mineral Group v. the Delaware River Basin Commission
Also on May 19, 2020, the U.S. Court of Appeals for the Third Circuit issued a ruling involving the Delaware River Basin Commission. Established in 1961, the Commission oversees and protects the water resources in the Basin. Not long ago, the Executive Director of the Commission, citing a rule of the Commission, imposed very strict limitations on fracking operations in the Basin. This decision has been very controversial with the Third Circuit opining that the Commission’s authority to regulate fracking operations—thought to be a province of state authority—was not clear-cut. In this case, three Pennsylvania state senators filed motions to intervene in the case, but the lower court rejected their request. The Third Circuit has directed the lower court to take another look at their standing to participate in this litigation. This is a volatile issue in Pennsylvania.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Narrow Promissory Estoppel Exception to Create Insurance Coverage
August 07, 2022 —
David Adelstein - Florida Construction Legal UpdatesThere is an affirmative claim known as promissory estoppel. (Whereas equitable estoppel is used an affirmative defense, promissory estoppel is used as an affirmative claim.)
To prove promissory estoppel, a plaintiff must plead and prove the following three elements: “(1) a representation as to a material fact that is contrary to a later-asserted position; (2) a reasonable reliance on that representation; and (3) a change in position detrimental to the party claiming estoppel caused by the representation and reliance thereon.” Romo v. Amedex Ins. Co., 930 So.2d 643, 650 (Fla. 3d DCA 2006) (citation and quotation omitted). Stated differently: “A party will be estopped from denying liability under the principle of promissory estoppel when the party makes ‘[a] promise which the promisor should reasonably expect to induce action or forbearance of a definite and substantial character on the part of the promisee and which does induce such action or forbearance…[and] injustice can be avoided only by enforcement of the promise.’” Criterion Leasing Group v. Gulf Coast Plastering & Drywall, 582 So.2d 799, 800 (Fla. 1st DCA 1991).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
U.S. Supreme Court Halts Enforcement of the OSHA Vaccine or Test Mandate
January 17, 2022 —
Stephen E. Irving, Kevin J. O’Connor, Aaron C. Schlesinger & Lauren Rayner Davis - Peckar & AbramsonThe United States Supreme Court today stayed enforcement of the OSHA emergency temporary standard (ETS) requiring employers with 100 or more employees to require employees either be “fully vaccinated” against COVID-19 or submit to weekly testing. The ruling immediately stops enforcement of the rule which had gone into effect on January 10, 2022.
Today’s order raises significant doubt as to whether the ETS requirement will ever take effect in its current form. A 6 to 3 majority of the Supreme Court justices issued the profound statement that the parties opposed to the rule “are likely to succeed on the merits of their claim that the Secretary lacked authority to impose the mandate.” The Court went on to state that the OSH Act does not authorize the agency to “set . . . broad public health measures,” such as the found in the current emergency standard.
Reprinted courtesy of
Stephen E. Irving, Peckar & Abramson,
Kevin J. O’Connor, Peckar & Abramson,
Aaron C. Schlesinger, Peckar & Abramson and
Lauren Rayner Davis, Peckar & Abramson
Mr. Irving may be contacted at sirving@pecklaw.com
Mr. O'Connor may be contacted at koconnor@pecklaw.com
Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com
Ms. Davis may be contacted at ldavis@pecklaw.com
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White and Williams Defeats Policyholder’s Attempt to Invalidate Asbestos Exclusions
January 28, 2014 —
White and Williams LLPWhite and Williams attorneys scored a significant victory for the insurance industry on January 15, 2014, when a federal jury of four men and four women rejected a policyholder’s novel efforts to invalidate asbestos exclusions contained in insurance policies issued between February 1, 1979 and August 1, 1985.
In General Refractories Co. v. First State Ins. Co., Civil Action No. 04-CV-3509 (E.D. Pa.), General Refractories Company contended that asbestos exclusions in insurance policies issued by various insurance companies in the late 1970s and 1980s had not been submitted to the Pennsylvania Department of Insurance for approval prior to use and, therefore, were unenforceable. Holding a failure to obtain approval, by itself, would not be sufficient to render the exclusions unenforceable, the Honorable Edmund Ludwig sent the matter to trial to determine whether the Pennsylvania Insurance Commissioner implemented a policy that was uniformly executed by the Insurance Department to disapprove all asbestos exclusions between February 1, 1979 and August 1, 1985, such that the exclusions violated a “dominant public policy.”
Reprinted courtesy of Gregory LoCasale, White and Williams LLP
and
Patricia Santelle , White and Williams LLP
Ms. Santelle may be contacted at santellep@whiteandwilliams.com and Mr. LoCasale may be contacted at locasaleg@whiteandwilliams.com.
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When Coronavirus Cases Spike at Construction Jobsites
July 27, 2020 —
Richard Korman, Scott Judy & Jeff Rubenstone - Engineering News-RecordWhen Covid-19 took hold in several US states in early spring, Choate Construction responded, as many contractors did, by quickly adopting federal workplace safety guidelines for disinfecting surfaces and maintaining social distancing. Enhanced by various state lockdown measures for businesses and the general public, the new safety system seemed to work with only a handful of workers on Choate’s projects testing positive.
Reprinted courtesy of Engineering News-Record reporters
Richard Korman,
Scott Judy and
Jeff Rubenstone
Mr. Korman may be contacted at kormanr@enr.com
Mr. Judy may be contacted at judys@enr.com
Mr. Rubenstone may be contacted at rubenstonej@enr.com
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2022 Construction Outlook: Continuing Growth But at Slower Pace
January 24, 2022 —
Garret Murai - California Construction Law BlogIn the midst of a pandemic that has lasted far longer than I think many of us thought it would, it’s been a study in contrasts:
- There has been over 305 million COVID-19 cases and 5.5 million deaths worldwide since the start of the pandemic.
- The U.S. stock market gained a whopping 26.9% in 2021.
- The annual rate of inflation in the U.S. hit 6.8% in November 2021 the highest it has been in nearly 40 years.
- The U.S. unemployment rate stood at 4.2% at the end of 2021, down from 14.7% in April 2020, the second highest unemployment rate since the Great Depression.
- The Doomsday Clock struck 100 seconds before midnight in 2021 as scientists warn that global leaders are doing too little too late to combat climate change that has seen global temperatures rise roughly 2 degrees Fahrenheit since the pre-industrial era.
- 2021 saw the launch of the first all-civilian spaceflight by Elon Musk’s Space X which was just one of 16 private spaceflights by tech billionaires Richard Branson’s Virgin Galactic and Jeff Bezos’ Blue Origin.
For the construction industry, when we started out in 2021, economists were estimating that construction starts would be up just 4% in 2021 after taking a 14% free-fall in 2020. As it turned out, construction starts increased 12% in 2021. That’s why economic forecasts should be viewed less like a marksmanship competition and more like horseshoes and hand grenades. Close is about the best you can realistically hope for.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com