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DIRECTORY AND CAPABILITIES

Fifth Circuit Asks Texas Supreme Court to Clarify Construction Defect Decision

November 07, 2012 — CDJ STAFF
The Fifth Circuit Court has withdrawn its decision in Ewing Construction Company v. Amerisure Insurance Company, pending clarification from the Texas Supreme Court of its decision in Gilbert Texas Construction, L.P. v. Underwriters at Lloyd’s London. The Fifth Circuit had applied the Gilbert case in determining that a contractual liability exclusion barred coverage for faulty workmanship. The Insurance Journal reports that this decision was both applauded and criticized, with a concern noted that “an insurer would now have its pick of either the ‘your work’ exclusion or the contractual liability exclusion without the exception for subcontracted work.” The Fifth Circuit is now asking the Texas Supreme Court two questions to clarify Gilbert, which Brian S. Martin and Suzanne M. Patrick see as a sign that the Court has realized that it overly expanded the scope of the earlier ruling. A response is expected from the Texas Supreme Court by spring 2013. Read the court decision
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Beware of Personal-Liability Clauses – Even When Signing in Your Representative Capacity

January 31, 2018 — David R. Cook Jr. – Autry, Hall & Cook, LLP
When a contract is drafted by a party, the other party expects some level of one-sidedness in favor of the drafter. But there are times when a contract goes too far. There are certain provisions that most persons in the construction industry would find unacceptable, unfair, and beyond the pale – even for a one-sided contract. Such a provision was arguably found in an electrical subcontract at issue in a 2014 opinion by a three-judge panel of the Georgia Court of Appeals. Unfortunately, due to long-standing Georgia law, the panel was forced to apply the provision as written. In the case, a contractor hired a subcontractor to perform the electrical scope of work. When the subcontractor failed to pay a sub-subcontractor, the sub-subcontractor filed suit against the subcontractor, contractor, and the payment-bond surety. The contractor asserted a claim of indemnity against the subcontractor based on the sub-subcontractor’s claim. Read the court decision
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Reprinted courtesy of David R. Cook Jr., Autry, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

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Rikus Locati Selected to 2024 Northern California Rising Stars!

August 05, 2024 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Congratulations to BWB&O’s 2024 Northern California Super Lawyers Rising Stars! BWB&O is proud to announce that Walnut Creek Associate Rikus Locati has been selected to the 2024 Northern California Super Lawyers list as Rising Stars for his work in Personal Injury. Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The objective of Super Lawyers’ patented multiphase selection process is to create a credible, comprehensive, and diverse listing of outstanding attorneys that can be used as a resource for attorneys and consumers searching for legal counsel. Read the court decision
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Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

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Out of Eastern Europe, a Window Into the Post-Pandemic Office

September 28, 2020 — Andra Timu & Irina Vilcu - Bloomberg
Special quarantine rooms. Floor-to-ceiling walls in bathroom stalls. Touchless entrances that take your temperature. This is what telecommunications company Ericsson’s office building in Bucharest looks like after coronavirus. The space has become the pilot for a 100-prong coronavirus standard that a real estate investor in Eastern Europe is pitching as a new global “immune” building standard. Liviu Tudor, president of the Brussels-based European Property Federation, hopes the standard will convince more employees to go back to work. He’s gathered a team of experts in construction, health care and engineering, such as such as Adrian Streinu-Cercel, the head of Bucharest's biggest infectious diseases hospital, to develop three tiers of “immune” building certifications that he says are intended to make indoor spaces “pandemic proof.” Read the court decision
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Reprinted courtesy of Andra Timu & Irina Vilcu, Bloomberg

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Insurers' Motion to Knock Out Bad Faith, Negligent Misrepresentation Claims in Construction Defect Case Denied

August 27, 2013 — Tred Eyerly - Insurance Law Hawaii
Having previously decided that construction defect claims did not arise from an occurrence and were consequently not covered under Hawaii law, the Hawaii Federal District Court refused to dismiss the insured's second amended counterclaim alleging various claims for relief. Ill. Nat'l Ins. Co. v. Nordic PCL Construc., Inc., 2013 U.S. Dist. LEXIS 108932 (D. Haw. July 31, 2013). In earlier proceedings, the court determined that the Nordic's allegedly deficient performance on construction contracts was not an "occurrence." The court also rejected Nordic's argument that the Hawaii legislature's Act 83 required the court to deviate from the Ninth Circuit's opinion in Burlington Ins. Co. v. Oceanic Design & Constr., Inc., 383 F.3d 940 (9th Cir. 2004) or the Hawaii Intermediate Court of Appeals' decision in Group Builders, Inc. v. Admiral Ins. Co., 123 Haw. 142, 231 P.3d 67 (Haw. Ct. App. 2010). Admiral now moved for summary judgment on its complaint and for dismissal of Nordic's second amended counterclaim, alleging bad faith and negligent misrepresentation, among other counts. Summary judgment as to the Safeway claim was denied. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

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De-escalating The Impact of Price Escalation

August 10, 2021 — Brian C. Padove - ConsensusDocs
What happens when construction material prices abruptly rise by 15%, 35%, 50%? Moreover, what happens to a construction project when such volatility occurs? While there is no definite answer, delays in procuring such materials and associated cost overruns will likely impact the construction project. The last 15 months contractors have had to work through extraordinary construction material price increases, such as a 90% price increase for lumber from April 2020 to April 2021. While there is no statistic quantifying the impact these increases have had on the construction industry, the increases surely have had an influence, whether it has been through lost profits, delays, or damage to contractors’ otherwise strong reputation for timely performance. Considerations Prior To Contract Execution The first way to mitigate price escalation is identifying materials most susceptible to price volatility during the bidding process and then having an open discussion with upstream parties regarding the potential price volatility. Additionally, the bid may also include either (1) an allowance for the materials providing additional funds, if necessary, should the material price increase, or (2) a shortened timeframe in which the bid is open, which would lessen the time in which a price shift may occur. Read the court decision
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Reprinted courtesy of Brian C. Padove, Watt, Tieder, Hoffar & Fitzgerald, LLP
Mr. Padove may be contacted at bpadove@watttieder.com

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Supreme Court’s New York Harbor Case Isn’t a ‘Sopranos’ Episode

August 03, 2022 — Stephen L. Carter - Bloomberg
The long-simmering harbor dispute between New York and New Jersey has observers reaching for illustrations from “The Sopranos” and “On the Waterfront.” But now that the US Supreme Court has agreed to adjudicate the spat, I wonder whether a more useful resource might be “The Paper Chase.” The disagreement stems from New Jersey’s determination to exit the Waterfront Commission of New York Harbor, an entity established by the two states back in 1953 in response to news reports of widespread corruption and violence among those who loaded and unloaded ships. New Jersey argues that as a sovereign state, it can’t be forced to remain in the pact forever. New York replies that the deal has the force of law and neither state can quit without the permission of the other. (And Congress!) The Supreme Court is now involved because that’s the venue the Constitution prescribes when one state sues another. Four days before New Jersey’s announced departure date of March 28, the justices issued an injunction preventing the move. This week they agreed to adjudicate the dispute and set an accelerated schedule for briefs and oral argument. Read the court decision
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Reprinted courtesy of Stephen L. Carter, Bloomberg

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Nevada Bill Aims to Reduce Legal Fees For Construction Defect Practitioners

March 21, 2011 — CDJ STAFF

Assemblyman Ira Hansen and twelve additional members of Nevada’s Assembly are sponsoring Assembly Bill 285. AB 285 Revises provisions governing an award of attorney’s fees in causes of action for constructional defects. Existing law generally provides that a claimant may recover reasonable attorney’s fees as part of the claimant’s damages in a cause of action for constructional defects. (NRS 40.655)



This bill removes this provision and instead authorizes a court to award reasonable attorney’s fees to a prevailing party involved in such a cause of action if an independent basis for the award exists pursuant to existing law which authorizes a court to award attorney’s fees in certain circumstances, or Rule 68 of the Nevada Rules of Civil Procedure, which provides for the payment of reasonable attorney’s fees by an offeree who rejects an offer and subsequently fails to obtain a more favorable judgment.



In an AP report published in Business Week it is suggested that the target objective of legislators centers on what it refers to as Nevada’s "Rampant construction defect lawsuits".



According to Business Week "The suits bring in hundreds of millions of dollars for lawyers and have put construction companies out of business. Hansen says fewer construction firms mean higher prices for Nevada consumers."



Click Here To Read Full Text and Revisions of Assembly Bill 285

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