Connecticut Reverses Course for Construction Managers on School Projects
August 05, 2024 —
Anand Gupta - Construction Law Zone BlogOn June 6, 2024, Connecticut Governor Ned Lamont signed into law Public Act 24-151 (H.B. 5524) (Bill 5524). Bill 5524 authorized and adjusted bonds of the state and provisions related to state and municipal tax administration, as well as addressed school building projects. Notably, Bill 5524 removed the ban on construction managers self-performing work on public school construction projects, effective July 1, 2024. Allowing construction managers to self-perform certain portions of the work, such as general trades, subject to the standard bidding requirements, is a common industry practice that, theoretically, reduces total project costs by reducing the amount of subcontracted work. However, proponents of banning self-performance argue that construction managers have too much information to bid fairly and competitively.
Reprinted courtesy of
Anand Gupta, Robinson+Cole
Mr. Gupta may be contacted at agupta@rc.com
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Washington Court Limits Lien Rights of Construction Managers
August 17, 2011 —
Douglas Reiser, Builders Council BlogA newly filed, yet unpublished, court opinion opines that a construction manager cannot file a construction lien in Washington state. So, how far reaching is this opinion?
In the case of Blue Diamond Group Inc. v. KB Seattle 1, Inc., et al, a New York construction manager filed a lien against the Westfield Southcenter Mall in Tukwila, Washington. The lien was filed after the owner of a coffee stand failed to pay Blue Diamond for consulting services used in the construction of a kiosk.
Blue Diamond served as the owner’s agent, assisting with managing subcontractors, vendors and other tasks. The manager’s tasks also included paying invoices, managing deliveries, setting schedules and other site managerial tasks. Blue Diamond was not registered as a contractor under Washington’s RCW 18.27.
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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com
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May Heat Wave Deaths Prompt New Cooling Rules in Chicago
July 25, 2022 —
The Associated Press (Don Babwin) - BloombergChicago (AP) -- A month after three women were found dead inside their stifling hot apartments at a Chicago senior housing facility, the City Council on Wednesday passed new cooling requirements for residential buildings.
Under the rules approved by the Council's Zoning Committee on Tuesday and the full Council on Wednesday, any new construction of senior facilities and larger residential buildings must include permanent air conditioning, giving them the same requirements already in place for nursing homes.
Any time the heat index climbs above 80 degrees, those buildings must run their air conditioning systems. Existing housing for older people can use portable cooling and dehumidification until May 2024, when they will be required to have permanent equipment installed.
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Bloomberg
Ambiguous Application Questions Preclude Summary Judgment on Rescission Claim
July 19, 2017 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Duarte v. Pacific Specialty Ins. (No. A143828; filed 6/12/17, ord. pub. 6/29/17) a California appeals court held that an insurer was not entitled to summary judgment on its rescission claim because the disputed questions in the insurance application were ambiguous.
In Duarte, the insured/owner purchased a tenant-occupied property in Oakland. Several years later the tenant’s daughter moved in, and continued living there after the tenant died. The insured/owner served the daughter with an eviction notice and shortly thereafter applied for Owners, Landlords & Tenants (“OLT”) liability coverage. The tenant/daughter responded to the eviction notice by filing a habitability lawsuit, claiming emotional distress and physical injury, among other things.
The insurer denied coverage and a defense, drawing a bad faith lawsuit for failure to defend and “wrongful cancellation” of the policy. The insurer answered and raised rescission as an affirmative defense, based on alleged fraud and misrepresentation in the OLT policy application.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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Nine ACS Lawyers Recognized as Super Lawyers – Including One Top 10 and Three Top 100 Washington Attorneys
August 14, 2023 —
Travis Colburn - Ahlers Cressman & SleightOur blog articles usually cover construction-related issues, but Ahlers Cressman & Sleight, PLLC – once again – is honored to announce nine members of our firm were awarded the distinction of being a “Super Lawyer” in Washington.
To become a Super Lawyer, only the top attorneys are nominated by their peers. Once nominated, candidates are researched and evaluated by an independent third-party across twelve key categories, such as experience, honors/awards, verdicts/settlements, and others. Next potential Super Lawyers are evaluated by a highly-credentialed “Blue Ribbon Panel” of peers before final selection. The process is extremely competitive and only 5 percent of the total lawyers in Washington are nominated as Super Lawyers. The following – including one Top 10 and three Top 100 attorneys – are Ahlers Cressman & Sleight, PLLC’s Super Lawyers:
John P. Ahlers, one of the firm’s founding partners, was again recognized as a Top 10 Super Lawyer in Washington State for 2023 – this is his seventh year in a row in the Top 10. A founding member of Ahlers Cressman & Sleight, PLLC, he has been named a Super Lawyer in Construction Litigation since 2001—23 years in a row. To read Mr. Ahlers’ full profile, click
here.
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Travis Colburn, Ahlers Cressman & SleightMr. Colburn may be contacted at
travis.colburn@acslawyers.com
Lawsuit Gives Teeth to Massachusetts Pay Law
September 16, 2024 —
Joseph Barra - Robinson+Cole“The Massachusetts Legislature passed the state’s Prompt Pay Act 14 years ago to improve the downstream flow of money on most large-scale private construction projects. While the act established detailed protocols for administering applications for payment and other important construction phase processes, several questions about its interpretation and impact remained unanswered.
Over the years, I watched as a significant portion of the Massachusetts design and construction community either ignored the law’s exacting requirements or were unaware of their applicability. The first indication of how the act would be interpreted came in 2022, when the state appeals court decided Tocci Building Corp. v. IRIV Partners LLC. In that case, the court strictly construed the act. It held that an owner (and its agent) who failed to promptly advise the project’s general contractor of specific factual and legal reasons why it was withholding payment, coupled with a failure to certify that funds were being withheld in good faith, violated the law—making the contractor liable for the unpaid funds.
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Joseph Barra, Robinson+ColeMr. Barra may be contacted at
jbarra@rc.com
The Metaphysics of When an Accident is an “Accident” (or Not) Under Your Insurance Policy
August 02, 2017 —
Garret Murai - California Construction Law BlogAs an undergrad, I remember taking an introductory philosophy class. When we came to the chapter on metaphysics our professor asked what makes an apple an apple? “We have a specific name for it, presumably, to distinguish it from other things,” she said. “But what makes an apple an apple?”
From there we went into a rabbit hole. With some students describing an apple by its colors, shape, size, smell and that it grows on trees and others trying to distinguish an apple from other things, which in turn led to further discussions such as why we believe apples come in red, green and yellow, whether an apple is still an apple if a person was colorblind, etc. In the end, we were questioning whether we were even in existence and sitting in a university classroom.
Insurance can be a bit like that sometimes. When is an accident an accident? If you engage in an intentional act that results in an unintended consequence, is it an accident? In Navigators Specialty Insurance Company v. Moorefield Construction, Inc. (December 27, 2016) 6 Cal.App.5th 1258, the Court of Appeals for the Fourth District, while not answering the question of the nature of existence, did shed some light on when an accident is an accident.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Pennsylvania Court Finds that Two Possible Causes Can Prove a Product Malfunction Theory of Liability
September 29, 2021 —
Gus Sara - The Subrogation StrategistIn Allstate Ins. Co. v. LG Elecs. USA, Inc., No. 19-3529, 2021 U.S. Dist. LEXIS 127014, the United States District Court for the Eastern District of Pennsylvania considered whether plaintiff’s expert engineer’s opinion that there were two possible causes of a fire—both related to alleged product defects within a refrigerator manufactured by the defendant—was sufficient to support the malfunction theory of products liability. The court found that because both potential causes imposed liability on the product manufacturer and the expert ruled out misuse of the product, as well as all external causes of the fire, it was not necessary for the engineer to identify a specific cause under the malfunction theory. The court also found that the expert’s investigation and opinions met the criteria set forth in Daubert v. Merrell Dow Pharms., Inc., 509 U.S. 579 (1993) and the Federal Rules of Evidence and, thus, were admissible.
LG Electronics arose from a fire at the home of Thomas and Lisa Ellis. The public sector fire investigator identified the area of fire origin as the top of a refrigerator manufactured by LG Electronics USA, Inc. (LG). The Ellises filed a claim with their homeowner’s insurance carrier, Allstate Insurance Company (Insurer). Insurer retained a fire investigator and an electrical engineer to investigate the origin and cause of the fire. The fire investigator agreed with the public sector investigator that the fire originated at the top of the refrigerator. The engineer conducted a forensic inspection of the scene and ruled out all potential external ignition sources. He then examined the internal components of the refrigerator. He found arcing activity on a wire at the front top of the refrigerator. He opined that there were two possible causes of the fire: either the heater circuit insulation failed over time due to mechanical damage, or the heat from the internal light fixture ignited combustible components of the refrigerator. Since the engineer ruled out improper use of the refrigerator, he opined that the damage was caused by a manufacturing defect.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com