Cambridge Massachusetts Building Expert Directory

Filing Motion to Increase Lien Transfer Bond (Before Trial Court Loses Jurisdiction Over Final Judgment)

May 15, 2023 — David Adelstein - Florida Construction Legal Updates
If a construction lien is recorded against real property, the lien can be transferred to a lien transfer bond. This transfers the security or collateral of the construction lien from the real property to the lien transfer bond. The lien transfer bond can be a bond posted by a surety company or it can be cash. This is governed by Florida Statute s. 713.24. The amount of the lien does not dictate the amount of the lien transfer bond. Rather, the lien transfer bond needs to be in the amount of the lien, plus interest on that amount for three years, plus $1,000 or 25% of the amount of the lien (whichever is greater so factor in the 25%) to cover attorney’s fees. Fla. Stat. 713.24(1). If you are looking to transfer a construction lien to a lien transfer bond, make sure to consult with counsel. Keep in mind there is a statutory mechanism for a lienor to increase the lien transfer bond to cover attorney’s fees and costs and notice the word “must” in the statute below. Pursuant to Florida Statute s. 713.24(3):

Any party having an interest in such security or the property from which the lien was transferred may at any time, and any number of times, file a complaint in chancery in the circuit court of the county where such security is deposited, or file a motion in a pending action to enforce a lien, for an order to require additional security, reduction of security, change or substitution of sureties, payment of discharge thereof, or any other matter affecting said security. If the court finds that the amount of the deposit or bond in excess of the amount claimed in the claim of lien is insufficient to pay the lienor’s attorney’s fees and court costs incurred in the action to enforce the lien, the court must increase the amount of the cash deposit or lien transfer bond. Nothing in this section shall be construed to vest exclusive jurisdiction in the circuit courts over transfer bond claims for nonpayment of an amount within the monetary jurisdiction of the county courts.

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Properly Trigger the Performance Bond

January 04, 2018 — David Adelstein - Florida Construction Legal Updates
Originally Published by CDJ on January 5, 2017 A performance bond is a valuable tool designed to guarantee the performance of the principal of the contract made part of the bond. But, it is only a valuable tool if the obligee (entity the bond is designed to benefit) understands that it needs to properly trigger the performance bond if it is looking to the bond (surety) to remedy and pay for a contractual default. If the performance bond is not properly triggered and a suit is brought upon the bond then the obligee could be the one materially breaching the terms of the bond. This means the obligee has no recourse under the performance bond. This is a huge downside when the obligee wanted the security of the performance bond, and reimbursed the bond principal for the premium of the bond, in order to address and remediate a default under the underlying contract. A recent example of this downside can be found in the Southern District of Florida’s decision in Arch Ins. Co. v. John Moriarty & Associates of Florida, Inc., 2016 WL 7324144 (S.D.Fla. 2016). Here, a general contractor sued a subcontractor’s performance bond surety for an approximate $1M cost overrun associated with the performance of the subcontractor’s subcontract (the contract made part of the subcontractor’s performance bond). The surety moved for summary judgment arguing that the general contractor failed to property trigger the performance bond and, therefore, materially breached the bond. The trial court granted the summary judgment in favor of the performance bond surety. Why? Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

Don’t Overlook Leading Edge Hazards

May 20, 2019 — Baxter Byrd - Construction Executive
Leading edge hazards are often misunderstood and overlooked on today’s highly visible jobsites. Evidence is readily available via images shared on construction-related social media accounts. In the context of people showing pride for the hard work they do or the extreme conditions under which they work, posts offer glimpses into the methods employed to mitigate fall hazards. Alarmingly, many of these methods do not adhere to industry-accepted standards, especially in the case of leading edge applications. Mincing Words The definition of “leading edge” itself has undergone somewhat of a transformation since its introduction by OSHA to its current use by ANSI in the Z359.14-2014 “Safety Requirements for Self-Retracting Devices for Personal Fall Arrest and Rescue Systems” standard. OSHA defines a leading edge as an “unprotected side or edge during periods when it is actively or continuously under construction,” giving many the impression that a leading edge was a temporary condition found only during the construction of a structure. Reprinted courtesy of Baxter Byrd, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Byrd may be contacted at info@puresafetygroup.com

Missouri Asbestos Litigation Reform: New Bill Seeks to Establish Robust Disclosure Obligations

March 15, 2021 — Jennifer B. Pigeon - Lewis Brisbois
Missouri State Senator Eric Burlison is reviving attempts to reform asbestos litigation in the State of Missouri through the introduction of SB 331. This bill was pre-filed on December 29, 2020 and first read on January 6, 2021. The bill establishes disclosure procedures for claimants in asbestos-related lawsuits. Specifically, the bill, if passed, would require claimants in civil asbestos-related lawsuits to file a sworn information form within 30 days of filing an asbestos-related lawsuit. The required disclosures under SB 331 include, but are not limited to (1) each asbestos-containing product to which the exposed person was exposed and each physical location at which the exposure occurred; (2) the identity of the manufacturer or distributor of specific asbestos-containing products for each named exposure; (3) the specific location and manner of each exposure; (4) the beginning and end dates of each exposure, the frequency and length of each exposure, and the proximity of the asbestos-containing product or its use to the exposed person; and (5) a certification that any claim that can be made with a bankruptcy trust concerning any asbestos injury to the exposed person has been filed. Read the court decision
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Reprinted courtesy of Jennifer B. Pigeon, Lewis Brisbois
Ms. Pigeon may be contacted at Jenna.Pigeon@lewisbrisbois.com

Towards Paperless Construction: PaperLight

June 02, 2016 — Aarni Heiskanen – AEC Business
I just toured the newly built headquarters of a financial corporation. Our guide, a M&A specialist, boasted that they have completely removed paper from their offices. Could paperless construction become feasible any time soon? PaperLight is a portable smart board that could replace paper drawings on many occasions. Rollout, Inc., the developer of PaperLight, says that 90% of contractors still use paper plans. AEC firms spend, on average, $1600 per employee on printing annually. Over 37 million construction drawings are printed every year. Finding a usable solution that reduces these numbers makes economic sense. Even more so if you consider all the costs of errors that result from using outdated paper drawings. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aarni@aepartners.fi

Bridges Crumble as Muni Rates at Least Since ’60s Ignored

June 26, 2014 — William Selway and Brian Chappatta – Bloomberg
No state is needier than West Virginia when it comes to fixing crumbling highways, airports and water works, with annual repair needs of $1,035 per resident that’s three times the national average. Yet even with borrowing costs hovering close to four-decade lows, lawmakers rejected a January proposal to sell $1 billion of bonds to repair roads that run through the Appalachian Mountains. Budget cuts were a more immediate concern, they said. Across the U.S., localities are refraining from raising new funds in the $3.7 trillion municipal-bond market after the worst financial crisis since the Great Depression left them with unprecedented deficits. Rather than take advantage of Federal Reserve (FDTR) policy that’s held benchmark interest rates at historic lows since December 2008, they’re repaying obligations by the most on record. Mr. Selway may be contacted at wselway@bloomberg.net; Mr. Chappatta may be contacted at bchappatta1@bloomberg.net Read the court decision
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Reprinted courtesy of William Selway and Brian Chappatta, Bloomberg

A Lawyer's Perspective on Current Issues Dominating the Construction Industry

March 28, 2022 — Melanie A. McDonald - Saxe Doernberger & Vita
Some of the hot topics dominating the construction industry today include the impacts of COVID-19, government testing and vaccine mandates, cyber security, and the evolving role of general counsel. This article provides a summary review of those topics. a. The Economic Impact of COVID-19 for Project Owners Project owners have been placed in a precarious position because courts across the country have almost unanimously ruled that insurance carriers are not liable for COVID-19-related business income losses.1 While project owners have sought alternative ways to mitigate losses resulting from COVID-19, many of these efforts have been negated by the exponential increase in materials costs.2 Thus, it remains unclear what, if any, solutions project owners have at their disposal. Read the court decision
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Reprinted courtesy of Melanie A. McDonald, Saxe Doernberger & Vita
Ms. McDonald may be contacted at MMcDonald@sdvlaw.com

Fatal Crane Collapse in Seattle Prompts Questions About Disassembly Procedures

July 09, 2019 — Jeff Rubenstone - Engineering News-Record
A tower crane being dismantled collapsed Saturday, April 27 in Seattle, killing four people, including two ironworkers on the crane and two bystanders on the street below. The jobsite, located in a Google office development in Seattle's bustling South Lake Union neighborhood, is adjacent to a busy intersection where traffic had not been blocked off during the crane’s disassembly. It is the first fatal crane accident in the Puget Sound region since a crane collapse in Bellevue, Wash., in 2006 that killed one person. Read the court decision
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Reprinted courtesy of Jeff Rubenstone, ENR
Mr. Rubenstone may be contacted at rubenstonej@enr.com

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