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    It’s a Bird, It’s a Plane . . . No, It’s a Drone. Long Awaited FAA Drone Regulations Finally Take Flight

    September 22, 2016 —
    It’s a bird. It’s a plane. No, it’s a drone. Also known as an unmanned aerial vehicle (UAV) or unmanned aircraft (UA). And, technically, they’ve been around a long time, since at least 1849 when the Australians attacked Italy with unmanned balloons loaded with explosives. Even a young Marilyn Monroe, when she was known simply as “Norma Jean,” worked at a company called Radioplane making unmanned aircrafts during World War II. Since then, as technology has advanced, which, in turn, has made the cost of older technology go down, what was once old, is now new again. Drones are making regular appearances in the movies (think the Divergent Series: Allegiant). The paparazzi (who are apparently tired of getting punched in the face) are using them. And some day, perhaps very soon, they may just be delivering your packages (think Amazon Prime Air). One of the earliest adopters of drones outside the military, however, has been the construction industry which has used drones to track the progress of construction projects and conduct site surveys such as this one showing the progress of Apple’s new campus in Cupertino[.] Read the court decision
    Read the full story...
    Reprinted courtesy of Garret Murai, Wendel, Rosen, Black & Dean LLP
    Mr. Murai may be contacted at gmurai@wendel.com

    Legal Matters Escalate in Aspen Condo Case

    January 28, 2014 —
    On January 3rd of this year, Chad Abraham reported in the Aspen Daily News that the Ute City building—a condominium on Hopkins Avenue in Aspen, Colorado—“lacks proper entryways to apartments and a basement-level nightclub space for both tenants and the disabled.” The owners, Michael Sedoy and Natalia Shvachko, have been sued by the city after refusing “to allow access to an eastside staircase and elevator for other building residents and disabled patrons of a basement restaurant,” according to the Aspen Daily News. “Their stance has forced the other tenants and the disabled to use a westside, alleyway service entrance, according to the city.” Sedoy and Schvachko’s attorney retorts in court documents “that the city approved of a building map and declarations that allow access through the westside entry in the alley.” Furthermore, in another article by Abraham published in the Aspen Daily News on January 25th, he relates that the owners had filed more than “more than 30 noise complaints with the police and the city’s environmental health department about eateries and bars around their home on Restaurant Row. That led to a trial for the Aspen Brewing Co., which a jury acquitted in about 10 minutes last week.” In addition, the couple is being sued by Mountain Home Window Fashions, the Ute City building general contractor. According to the lawsuit as reported by the Daily Aspen News, Mountain Home claims they are owed $12,332. The owners have counter-sued, alleging “that there were defects in Mountain Home Window Fashions’ work” and that one of the employees “made unauthorized charges on Sedoy’s credit card.” Read the full story, January 3rd article ... Read the full story, January 25th article ... Read the court decision
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    Reprinted courtesy of

    Common Law Indemnification - A Primer

    April 12, 2021 —
    “Common law indemnification is generally available ‘in favor of one who is held responsible solely by operation of law because of his relationship to the wrongdoer.’” McCarthy v. Turner Constr., Inc., 17 N.Y.3d 369, 375 (2011), quoting Mas v. Two Bridges Assocs., 75 N.Y.2d 680, 690 (1990). What is Common Law Indemnification and Who Can Assert it? Indemnification, in general terms, is the right of one party to shift a loss to another and may be based upon an express contract or an implied obligation. Bellevue S. Assoc. v. HRH Constr. Corp., 78 N.Y.2d 282 (1991). Based on a separate duty owed the indemnitee by the indemnitor, common law indemnification, or implied indemnification, permits one who was compelled to pay for the wrong of another to recover from the wrongdoer the damages paid to the injured party. D’Ambrosio v. City of New York, 55 N.Y.2d 454, 460 (1982); Curreri v. Heritage Prop. Inv. Trust, Inc., 48 A.D.3d 505, 507 (2d Dept. 2008). The premise of common law indemnification is vicarious liability, defined as “liability that a supervisory party (such as an employer) bears for the actionable conduct of a subordinate or associate (such as an employee) based on the relationship between the two parties” Black’s Law Dictionary (11th ed. 2019). Common law indemnification “reflects an inherent fairness as to which party should be held liable for indemnity.” McCarthy, 17 N.Y.3d at 375. It is a restitution concept which permits shifting the loss because, to fail to do so, would result in the unjust enrichment of one party at the expense of the other. Mas, 75 N.Y.2d at 680, 690; Kingsbrook Jewish Medical Center v. Islam, 172 A.D.3d 1342, 1343 (2d Dept. 2019). Read the court decision
    Read the full story...
    Reprinted courtesy of Brian F. Mark, Hurwitz & Fine, P.C.
    Mr. Mark may be contacted at bfm@hurwitzfine.com

    Effectively Managing Project Closeout: It Ends Where It Begins

    August 06, 2019 —
    Project closeout is sometimes one of the last things on a contractor’s mind at the beginning of a project, but project closeout can have a huge impact on a contractor’s overall profitability and success. Effectively managing the closeout process is critical, and it all begins with the negotiation and execution of the project contract. This contract can, and should, provide a complete roadmap for project closeout, as addressing these issues on the front end can set up the parties for successful project completion. It is then equally important to re-review the terms of the contract as project closeout approaches to ensure that everyone, including the owner, adheres to all contractual requirements. This article examines several pertinent issues related to project closeout that should be addressed during the contracting stage, including defining substantial and final completion, inspection and acceptance, punch lists, and warranties. Defining Substantial and Final Completion Having clear definitions for both substantial and final completion in your construction contract is an important and necessary early step in achieving successful project closeout. Read the court decision
    Read the full story...
    Reprinted courtesy of William E. Underwood, Jones Walker LLP
    Mr. Underwood may be contacted at wunderwood@joneswalker.com

    NYC Building Explosion Kills Two After Neighbor Reports Gas Leak

    March 12, 2014 —
    Fifteen minutes after a New York City resident reported the pervasive smell of gas in her East Harlem neighborhood, a massive explosion destroyed two buildings, killing two people and injuring at least 18. Utility workers arrived too late. The explosion at 1644 and 1646 Park Ave., near 116th Street, reported about 9:30 a.m., was heard miles away and turned into a five-alarm fire. Windows were blown out as far as 10 blocks away, and cars across the street were wrecked. The blast sent debris onto adjacent elevated train tracks, halting commuter rail service in and out of Grand Central Terminal. Minor wounds were too numerous to count, said Frank Gribbon, a spokesman for the New York City Fire Department. “This is a tragedy of the worst kind,” Mayor Bill de Blasio said during a news conference near the scene. He said residents are still missing from the buildings, which had a total of 15 units, and crews would search for them when the fire is extinguished. Ms. Kaske may be contacted at mkaske@bloomberg.net; Mr. Goldman may be contacted at hgoldman@bloomberg.net Read the court decision
    Read the full story...
    Reprinted courtesy of Michelle Kaske and Henry Goldman, Bloomberg

    Construction in the Time of Coronavirus

    March 30, 2020 —
    One cannot look look at one’s phone, computer or even the road outside the window without seeing signs of the impact that coronavirus (COVD-19) is having on the world at large. Schools are shut down, traffic is lighter and there is the daily count of new confirmed cases, in Virginia and elsewhere. “Social distancing” is the buzzword of the day. I am writing this post from a home office because of CDC and other guidance regarding the best way to “flatten the curve.” We have all been told to avoid large groups and stay close to home. All of this is well and good, but construction must go on. In travelling around Richmond, I see construction vehicles on the road quite a bit. This is a good thing. It seems that most of the Richmond, Virginia area contractors are trying to stay as close to “business as usual” as possible while still remaining vigilant and careful to follow CDC and OSHA guidelines on workplace activity and COVD-19. However, the situation is ever changing and government and other outside forces could lead to project slowdowns, project shutdowns or other virus related impacts to everything from permitting to staffing of a project. As I have discussed, likely ad nauseam, any commercial or residential construction project is controlled by a series of contracts (hopefully well drafted) that control the relationships on the job. Subcontractors in particular have the provisions of their subcontract and those of the prime contract to worry about. One of the major provisions that could trip up any construction professionals on these jobs is the notice provision of the subcontract (thanks for the reminder go to a friend and fellow construction lawyer Mark Cobb at his blog). 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

    Federal Court Rejects Insurer's Argument that Wisconsin Has Adopted the Manifestation Trigger for Property Policy

    April 03, 2013 —
    The 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. Read the court decision
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    Reprinted courtesy of Tred Eyerly
    Tred Eyerly can be contacted at te@hawaiilawyer.com

    Cerberus, Blackstone Loosening Credit for U.S. Landlords

    July 09, 2014 —
    U.S. property owners with just one rental house can now get cash from Wall Street to buy more. Cerberus Capital Management LP, which initially targeted landlords with multimillion-dollar loans, is financing low-volume deals for small investors through its FirstKey Lending, with looser terms than government-backed mortgages from Fannie Mae and Freddie Mac, said Randy Reiff, the business’s chief executive officer. Blackstone Group LP (BX)’s rental lending arm, B2R Finance LP, is making a similar push to mom-and-pop landlords. “Our premise has always been to be able to lend to the middle market and entrepreneurial borrowers in the space, not just the institutional borrowers,” Reiff said. “The biggest guys have always enjoyed access to capital. The largest part of this market is really the entrepreneurial owners.” The companies are competing to lend to owners of the almost 14 million rental houses in the U.S. at a time when many Americans are struggling to get a mortgage and homeownership is declining. Cerberus and Blackstone, along with Colony Capital LLC, also are racing to package debt on homes managed by separate landlords for the first multiborrower bond sale. Ms. Perlberg may be contacted at hperlberg@bloomberg.net; Mr. Gittelsohn may be contacted at johngitt@bloomberg.net Read the court decision
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    Reprinted courtesy of Heather Perlberg and John Gittelsohn – Bloomberg