Close Enough Only Counts in Horseshoes and Hand Grenades
March 08, 2021 —
Garret Murai - California Construction Law BlogIn
State Farm General Insurance Company v. Oetiker, Inc., Case No. B302348 (December 18, 2020), a manufacturer sued in subrogation action under the Right to Repair Act almost got away. Almost.
The Oetiker Case
James and Jennifer Philson’s home was substantially completed, and a notice of completion was recorded, in 2004. In 2016, the Philsons tendered a claim to their homeowner’s insurance carrier, State Farm General Insurance Company, after their home experienced significant water damage due to a defective stainless steel ear clamp.
In 2018, after paying the Philson’s claim, State Farm filed a subrogation action against the manufacturer of the ear clamp, Oetiker, Inc. State Farm’s complaint, which included causes of action for negligence, strict products liability and breach of implied warranty, alleged that the home was “damaged by a water leak from the failure of a defective stainless steel ear claim on a water PEX fitting” and that the ear clamp was “defective when it left the control of [Oetiker].”
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Florida Governor Signs COVID-19 Liability Shield
May 17, 2021 —
Andrea de Oña - Lewis BrisboisOn March 29, 2021, Florida Governor Ron DeSantis signed into law Florida Statute 768.38, granting significant protections to business entities, educational institutions, governmental entities, and religious institutions from claims related to COVID-19 if they made a good faith effort to follow guidelines to prevent the spread of the coronavirus. The law is effective immediately and applies to actions filed after March 29, 2021.
Recognizing the financial impact that the pandemic has had across the State of Florida, the new law aims to dissuade potential claimants from filing meritless claims for personal injuries, wrongful death, or other damages allegedly due to COVID-19 exposure in a few key ways.
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Andrea de Oña, Lewis BrisboisMs. Oña may be contacted at
Andrea.deOna@lewisbrisbois.com
Explore Legal Immigration Options for Construction Companies
August 29, 2022 —
Megan R. Naughton - Construction ExecutiveAlthough the visa options are limited, there are some that can be explored by construction companies in the United States, including the following.
H-1B
The H-1B visa category may be available for construction positions that require at least a bachelor’s degree in a specific field such as civil engineering, construction management or accounting. The timing can be challenging if an employer is looking to hire a recent graduate or someone outside of the United States for a role because of the H-1B lottery but can work well if the candidate is already in H-1B status and working for another company. These visas are site-specific, so they may need amending if a worker is moved from one site to another.
H-2B
The H-2B visa category is an option if the construction work is seasonal in nature and recurs each year, and if the company can plan its specific needs sufficiently far in advance. Timing is difficult with these; they require proving a shortage of U.S. workers and are subject to a lottery system like the H-1B.
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Megan R. Naughton, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mediating Contract Claims and Disputes at the ASBCA
December 20, 2021 —
Brian Waagner - Construction ExecutiveThe Contract Disputes Act establishes the formal process for resolving nearly all claims and disputes that arise under federal government contracts. It is the source of the requirement that contractors certify claims in excess of $100,000, the contracting officer’s final decision and the deadlines for bringing a dispute to the court of federal claims or an agency board of contract appeals.
It is also the source of the federal government’s authority to use mediation and other forms of alternative dispute resolution. Here are six key factors contractors should know about mediating contract claims and disputes at the Armed Services Board of Contract Appeals (ASBCA).
1. The Parties Control the Parameters of ADR Proceedings
Many commercial contracts and court rules require mediation of every dispute. There is no settlement meeting, mediation or any other type of mandatory ADR proceedings in cases brought to the ASBCA. The parties control the process, and they may adopt any approach to ADR that they believe will be effective. Mediation is nevertheless voluntary. Without the agreement of both parties, it won’t happen.
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Brian Waagner, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Motion to Dismiss Insureds' Counterclaim on the Basis of Prior Knowledge Denied
September 04, 2018 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer unsuccessfully moved to dismiss portions of the insureds' counterclaim based upon prior knowledge. Hudson Spec. Ins. Co. v. Talex Enter., 2018 U.S. Dist. LEXIS 105598 (S. D. Miss. June 25, 2018).
The insureds' building collapsed in McComb, Mississippi. Pubic utilities were damaged and traffic disrupted. The City sued the insured, alleging that the building collapsed because there was too much water gathered on its roof. The City further alleged that the insureds knew too much water was on the roof because they had been told by someone hired to clean the drain that it was clogged and by a contractor that the roof was so damaged that it could not safely be repaired.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Coverage Denied for Faulty Blasting and Improper Fill
October 08, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe court found coverage was properly denied based on the subcontractor's failure to follow contract specifications in blasting at the job site. Westfield Ins. Co. v. Carpenter Reclamation, Inc., 2014 U.S. Dist. LEXIS 130752 (S.D. W. Va. Sept. 18, 2014).
Carpenter was hired by the Board of Education (BOE) to perform preliminary site clearing, demolition, rock excavation, and establishment of sub-grade for a building. Carpenter was to excavate to 3.5 feet below the floor subgrade so that plumbing and other utilities could be installed.
Carpenter, however, blasted to depths deeper than required, including some areas that were up to nine feet. The BOE sued, alleging over-blasting and having to pay the cost of remediating the problem, along with breach of contract issues.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Construction Contract Clauses That May or May Not Have Your Vote – Part 3
November 23, 2016 —
Garret Murai – California Construction Law BlogScope, time and cost provisions may be the most important clauses in your construction contract but they’re not the only ones which can impact your bottom line. The third in a multi-part series, here are some other important construction contract clauses that may determine whether you come out a winner.
Provision: Supervisory Personnel, Employees, and Authority to Bind Provisions
- Typical Provision: ”At all times during performance of the Work, Subcontractor shall have at the job site a competent supervisor approved by Owner. Subcontractor’s supervisor shall be deemed a representative of Subcontractor and all communications given to Subcontractor’s supervisor shall be as binding as if such communications were given to Subcontractor. Should Contractor object to Subcontractor’s supervisor’s presence at the job site, or the presence at the job site, or the presence at the job site of any other employee or agent of Subcontractor or any employee or agent of Subcontractor of Subcontractor, Subcontractor shall cause such persons to be replaced immediately as directed by Contractor.”
- What it Means: Higher-tiered parties have a legitimate interest in ensuring that only competent individuals are allowed to perform work on a project and in ensuring that there are peaceable relations at a job site. Higher-tiered parties also have an interest in ensuring that directives and agreements made and reached in the field are followed. However, it is unreasonable for higher-tiered party or to require that such personnel be able to bind that lower-tiered party to agreements best decided by others.
- What You Can Do: Lower-tiered parties should seek to include language which provides that only “reasonable” changes to personnel are allowed and, as necessary, limit by category or issue the types of items on-site personnel can bind the lower-tiered party to.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Differing Rulings On Construction Defect Claims Leave Unanswered Questions For Builders, and Construction Practice Groups. Impact to CGL Carriers, General Contractors, Builders Remains Unclear
March 07, 2011 —
CDJ STAFFIn the past year a number of state and federal courts have rendered a number of conflicting decisions that promise to alter or perhaps shift entirely the paradigm, of how builders manage risk.
According to a report today by Dave Lenckus in Property Casualty 360 “Nine state and federal courts and one state legislature over the past year have addressed whether a construction defect a defective product or faulty workmanship is fortuitous and therefore an occurrence under the commercial general liability insurance policy. Four jurisdictions determined it is; three said no; two ruled that a construction defect that causes consequential damage to property other than the work product is an occurrence; and one federal court contributed its conflicting case law that has developed in Oregon since its high court ruled in 2000 that a construction defect is not an occurrence”.
The article strongly suggests that in the absence of a clear consensus over what the recent rulings mean for builders and contractors coverage disputes will intensify and continue to proliferate.
Doing this on a state-by-state basis has caused a lot of confusion among buyers and sellers, said Jeffrey A. Segall, a Tampa-based senior vice president and the Florida Construction Practice leader at Willis of Florida, a unit of Willis Group Holdings.
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