Cambridge Massachusetts Building Expert Directory

Cyber Security Insurance and Design Professionals

March 29, 2017 — David Adelstein – Florida Construction Legal Updates
Cyber security insurance is a relatively new insurance product that has probably become more popular and important in today’s digital age. Think about it. Almost everything is created, transmitted, shared, and stored digitally. Companies utilize cloud-based platforms to store documents, share documents, and transmit documents. Documents are transmitted via e-mail. Documents are created electronically with various software programs. And, finally, technology has made it convenient to create, access, store, share, and transmit documentation digitally through smartphones, tablets, or laptops (and various applications) – so technology enables things to be done remotely in the moment to maximize efficiency and production. 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

Following Mishaps, D.C. Metro Presses on With Repairs

February 23, 2017 — Jim Parsons - Engineering News-Record
An aggressive effort to overhaul the aging Metro system in Washington, D.C., is producing results as it nears the one-year mark, with more than 28,000 cross-ties and nearly two miles of grout pads now replaced. Read the court decision
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Reprinted courtesy of Jim Parsons, ENR
ENR may be contacted at ENR.com@bnpmedia.com

Intricacies of Business Interruption Claim Considered

January 07, 2015 — Tred R. Eyerly – Insurance Law Hawaii
Reaching into the weeds to analyze a business interruption claim, the Massachusetts Court of Appeals determined the cost of ordinary payroll could be included in the calculation of net profit or loss in determining business loss income when business is resumed quickly after a fire. Verrill Farms, LLC v. Farm Family Cas. Ins. Co., 2014 Mass. App. LEXIS 145 (Mass. App. Ct. Nov. 4, 2014). The insured suffered a fire loss at its farm store. Within two days, the business was reopened at alternate locations at reduced capacity. Within a month, the business had resumed nearly full capacity in temporary locations. No employees were laid off. This allowed the insured to maintain its business and generate income. The insured submitted a claim for loss of business income, based on its loss of net income in the year after the fire. The insurer paid a sum considerably less than the claim based upon its interpretation of what expenses could be included in a calculation of net profit or loss in order to determine loss of business income. The trial court held that the insurer did not have to pay the cost of ordinary payroll beyond the sixty-day limit, and granted summary judgment in the insurer's favor. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Reversing Itself, West Virginia Supreme Court Holds Construction Defects Are Covered

July 31, 2013 — Tred Eyerly, Insurance Law Hawaii
The West Virginia Supreme Court previously held that construction defects were not covered under a CGL policy. The Court, however, reversed itself in Cherrington v. Erie Ins. Prop. & Cas. Co., 2013 W.Va. LEXIS 724 (W.V. June 18, 2013). The underlying complaint against the general contractor alleged various defects in the plaintiff’s recently constructed house, including an uneven concrete floor, water infiltration through the roof and chimney joint, a sagging support beam, and numerous cracks in the drywall walls and partitions throughout the house. Erie Insurance denied coverage. The insured general contractor sued, but the trial court found that faulty workmanship was not sufficient to give rise to an “occurrence.” The West Virginia Supreme Court reversed its prior rulings determining there was no coverage for construction defects. The court recognized its prior position was in the minority, as is Hawaii's position on coverage for construction defects. See Group Builders Inc. v. Admiral Ins. Co., 123 Haw. 142, 148, 231 P.3d 67, 73 (Haw. Ct. App. 2010). Now joining the majority position, the West Virginia Supreme Court found that defective workmanship causing property damage was an “occurrence” under a CGL policy. Further, the homeowner had demonstrated that she sustained "property damage" as a result of the allegedly defective construction of her home. The trial court also determined that the business risk exclusions barred coverage. Again, the West Virginia Supreme Court disagreed. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

Performing Work with a Suspended CSLB License Costs Big: Subcontractor Faces $18,000,000 Disgorgement

September 17, 2015 — Steven M. Cvitanovic & David A. Harris – Haight Brown & Bonesteel LLP
In what could lead to a draconian result, the Court of Appeal for the First Appellate District held that a contractor who performs work without a valid license can be required to disgorge all payments received, even if the contractor perfectly performed its work. The case, Judicial Council of California v. Jacobs Facilities, Inc. (Ct. of Appeal, 1st App. Dis., Div. One, A140890, A141393), involved an $18,000,000 contract between Jacobs Facilities, Inc. (“Jacobs Facilities”) and the Judicial Council of California (“Judicial Council”). In April 2006, Jacobs Facilities, a wholly owned subsidiary of Jacobs Engineering Group, Inc. (“Jacobs Engineering”) entered into a three year contract with the Judicial Counsel to maintain 121 courthouses and other judicial branch buildings throughout Southern California (the “Contract”). Jacobs Facilities contracted to provide maintenance and oversight services, while retaining subcontractors to perform the actual maintenance and repair work. In December 2006, as part of a corporate reorganization, Jacobs Engineering started winding up Jacobs Facilities and transferred its employees to Jacobs Engineering and then subsequently to another wholly owned subsidiary called Jacobs Project Management Co. (“Jacobs Management”). The work that was performed by Jacobs Facilities was taken over by Jacobs Management. As part of the windup, Jacobs Facilities’ Contractor’s State License Board license was allowed to lapse and the license expired by operation of law in November 2008. Although Jacobs Management was now performing the work, it was not added as a party to the contract. Although it appears Judicial Council was aware of the corporate changes, it was not until November 2009 that the parties assigned the contract to Jacobs Management. Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and David A. Harris, Haight Brown & Bonesteel LLP Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com Mr. Harris may be contacted at dharris@hbblaw.com Read the court decision
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California Statutes Authorizing Public-Private Partnership Contracting

February 01, 2022 — Robert A. James & Shade Oladetimi - Gravel2Gavel Construction & Real Estate Law Blog
Public-private partnerships are often cited as a key pathway to restoring and enhancing the nation’s infrastructure. They can be challenging arrangements to structure. (As a result of the pandemic, they have even suffered the indignity of having their “PPP” acronym coopted by the Paycheck Protection Program. With apologies to Small Business Administration practitioners, we use “PPP” in this article to refer to the infrastructure tool.) One gating condition to setting up a PPP is identifying the authority for a public entity to use a contracting method that does not run afoul of the general requirements that (i) works of improvement be let to the lowest responsive bid by a responsible bidder and (ii) design services be awarded through a qualifications-based selection process. Integrated forms of project delivery that vest in a single concessionaire multiple design, construction, financing, operation, maintenance and entrepreneurial roles must find an exception to any applicable background rules. Reprinted courtesy of Robert A. James, Pillsbury and Shade Oladetimi, Pillsbury Mr. James may be contacted at rob.james@pillsburylaw.com Ms. Oladetimi may be contacted at shade.oladetimi@pillsburylaw.com Read the court decision
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FIFA May Reduce World Cup Stadiums in Russia on Economic Concern

July 16, 2014 — Tariq Panja – Bloomberg
FIFA may reduce the number of stadiums used to host the 2018 World Cup in Russia on concern that their economic viability after the monthlong event ends. FIFA President Sepp Blatter said a day after Germany’s 1-0 win over Argentina in the final that a delegation from soccer’s governing body will meet Russian tournament organizers in September to discuss plans for the next edition. Blatter gave a mark of 9.25 out of 10 to an “exceptional” Brazil World Cup, which cost $11 billion to stage. The tournament is a difficult challenge for organizers, Blatter said, illustrated by construction delays at almost all of the 12 arenas used for the 64 games in Brazil. “The World Cup has taken such a dimension that the organization is hard work for the organizing country and also for FIFA,” Blatter told reporters at Rio de Janeiro’s Maracana stadium, where Germany claimed a fourth title and became the first European country to win the tournament in South America. Read the court decision
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Reprinted courtesy of Tariq Panja, Bloomberg
Mr. Panja may be contacted at tpanja@bloomberg.net

Maybe Supervising Qualifies as Labor After All

May 22, 2023 — Christopher G. Hill - Construction Law Musings
Remember back in 2021 when I “mused” about Dickson v. Fidelity and Deposit Company of Maryland et al.? Remember how the Eastern District of Virginia held that mere supervision does not qualify as “labor” under the federal Miller Act? Well, the 4th Circuit recently weighed in on the appeal of that case and had some interesting things to say about the definition of labor. As a quick reminder, Plaintiff worked as a project manager on a project to repair and upgrade certain stairs at the Pentagon. Plaintiff subcontracted with prime contractor Forney Enterprises Inc. on this project. On Dec. 20, 2018, the prime contract was terminated. Plaintiff filed the Miller Act suit on Feb. 5, 2020. Dickson alleged that Fidelity and Deposit Company of Maryland, or F&D, must pay him, pursuant to the Miller Act, the amount he is owed for the labor he performed on the project. Now before the district court were cross-motions for summary judgment. In evaluating Plaintiff’s claims, the district court examined the defendant’s claims that (1) Dickson’s work did not qualify as “Labor” under the Miller Act, and (2) that the suit was not timely filed. The Eastern District of Virginia court agreed with both arguments. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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