Construction Picks Up Post-COVID and So Do Claims (and A Construction Lawyer Can Help)
September 12, 2022 —
Christopher G. Hill - Construction Law MusingsI’m a construction attorney and proud to be one. Over the past couple of years, my expertise (and that of my fellow members of the Virginia construction bar) has been challenged by everything from COVID-related shutdowns to supply chain issues to unanticipated price increases. With each of these obstacles placed in front of my clients and friends in the Virginia construction industry, I have gotten calls and questions as to how to best handle the various issues facing the construction world.
Needless to say, changes in price or material availability occurring between the date of a contract’s signing and the (likely delayed) start or completion of the contractual scope of work have caused some consternation and claims. Many of these claims did not come forward or reach my, or others, desk until after the world reopened post-COVID and construction began to speed up and money started to be owed. While one “easy” answer, particularly for those “upstream” in the payment chain, is “tough luck, you gave me a fixed price, signed a contract, and we expect you to honor it,” this may not be the best and most practical way to get the job done.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Sweet News for Yum Yum Donuts: Lost Goodwill is Not an All or Nothing Proposition
October 07, 2019 —
Josh Cohen - California Construction Law BlogLast month a California Court of Appeals clarified that a property owner facing eminent domain is only required to prove partial loss of goodwill, not total loss of goodwill, to be entitled to a trial on the amount of goodwill lost.
Yum Yum Donuts operated a shop in Los Angeles that was subject to eminent domain by the Los Angeles Metropolitan Transportation Authority (MTA) to make way for light railway track. At trial, Yum Yum sought loss of goodwill as part of its condemnation damages under Code of Civil Procedure section 1263.510.
At trial the MTA’s expert testified that Yum Yum could have reduced its goodwill loss if it relocated to one of three alternative locations rather than simply closing the shop. But the expert conceded that even if Yum Yum had relocated, it would have lost some goodwill. Yum Yum refused to relocate, arguing that its relocation costs would render the move unprofitable. The trial court found that Yum Yum’s failure to mitigate its damages barred Yum Yum from having a jury trial to recover any goodwill damages.
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Josh Cohen, Wendel, Rosen, Black & Dean LLPMr. Cohen may be contacted at
jcohen@wendel.com
Illinois Insureds are Contesting One Carrier's Universal Denial to Covid-19 Losses
May 11, 2020 —
Anna M. Perry - Saxe Doernberger & VitaIn response to the large number of COVID-19-related losses that businesses are experiencing, insurers have begun issuing statements informing their insureds of whether their policies will respond to the losses, and if so, what coverage will be afforded. Insurers cannot take a “one-size-fits-all” approach to the COVID-19 losses because, besides factual differences, the losses are occurring within all fifty states which means 50 different state law interpretations will apply.
Recently, on March 27, 2020, a number of restaurants and movie theaters located in and around Chicago (the “Insureds”) filed a declaratory judgement action, titled Big Onion Tavern Group, LLC et al. v. Society Insurance, Inc., against their property insurance carrier, Society Insurance, Inc. (“Society”), seeking coverage for business interruption resulting from the shutdown order issued by the governor of Illinois. The suit alleges that Society improperly denied their business interruption claims by using a boiler plate denial. The denial issued by Society is allegedly used for all COVID-19 losses regardless of the applicable jurisdiction’s interpretation of the policy language and the specific coverage purchased by the insured. Further, in its denial, Society takes the position that any loss related to a government-issued closure order is uncovered, even though the Insureds specifically purchased business interruption coverage and their policies did not contain an exclusion for losses caused by viruses.
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Anna M. Perry, Saxe Doernberger & VitaMs. Perry may be contacted at
amp@sdvlaw.com
Recent Federal Court Decision Favors Class Action Defendants
October 26, 2020 —
Amber Karns & Dan Pipitone - Construction ExecutiveThe commercial construction contracting and subcontracting industry in general is unique under the law for industry professionals, as they’re typically limited to wage and hour litigation under provisions of the Fair Labor Standards Act.
The majority of FLSA cases seek class action status or collective classification, while other FLSA litigation is initiated by individuals seeking damages. For the former, past and current employees can opt into class action litigation and seek collective damages against a construction company. The looming financial burden of class action or collective litigation against construction companies consume time, money and resources to the extent it’s often advisable for Defendants to negotiate an unfair settlement.
Yet, thanks to a recent federal court decision on March 27, 2020, the legal maneuvering behind unreasonable Plaintiff demands may soon be counter-balanced by the class action Defendants’ right to due process review. A recent legal opinion in a recent FLSA case has potentially wide-ranging implications for Defendant employers mired in future class action litigation. Moreover, as the FLSA applies to all employers, this decision potentially applies to all ownership groups representing the commercial construction industry, extending to partners, contractors and subcontractors.
Reprinted courtesy of
Amber Karns & Dan Pipitone, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Pipitone may be contacted at dpipitone@munsch.com
Ms. Karns may be contacted at akarns@munsch.com
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Traub Lieberman Partner Adam Joffe Named to 2022 Emerging Lawyers List
February 01, 2022 —
Adam P. Joffe, Traub LiebermanTraub Lieberman is pleased to announce that Adam Joffe has been selected by his peers as a 2022 Emerging Lawyer in Leading Lawyers Magazine in the area of Insurance, Insurance Coverage & Reinsurance Law. Those selected as Emerging Lawyers have been identified by their peers to be among the TOP LAWYERS who are age 40 or younger unless they have practiced for no more than 10 years. Less than 2% of all lawyers licensed in each state have received the distinction of Emerging Lawyer.
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Adam P. Joffe, Traub Lieberman
Mr. Joffe may be contacted at ajoffe@tlsslaw.com
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A Recession Is Coming, But the Housing Market Won't Trigger It
June 12, 2023 —
Edward Harrison - BloombergOne big reason to continue to believe this is no 2008-style financial crisis in the making is the housing market, which has held up well. That means, we’re more likely to experience a garden-variety recession, and I think it will happen sometime later this year.
Why this isn’t another 2008-style crisis
Residential property was famously the trigger for a cataclysmic global financial crisis a decade and a half ago. That’s because residential property is one of the principal assets of the middle classes across the globe. And it’s a leveraged investment to boot because of the money borrowed through mortgages. That makes large and pervasive house-price declines toxic for the economy.
But not that many people are worrying about house prices today. So I thought I’d take a breather from the doom and gloom surrounding commercial real estate, banks and the debt ceiling to focus on house prices and why they aren’t worrying us this go round. And I’ll use one of the pricier markets, the UK, as a first example.
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Edward Harrison, Bloomberg
Professional Services Exclusion Bars Coverage Where Ordinary Negligence is Inseparably Intertwined With Professional Service
August 17, 2017 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Energy Ins. Mutual Ltd. v. Ace American Ins. Co. (No. A140656, filed 7/11/17, ord. Pub. 8/10/17), a California appeals court found that a professional services exclusion barred coverage for wrongful death and other claims blamed on pipeline inspectors’ failure to identify and properly mark a gas pipeline that was ruptured during construction of another pipeline, resulting in an explosion and fire.
In Energy Ins. Mutual, a pipeline owner hired two temporary construction inspectors through a staffing company. The inspectors had to ensure compliance with engineering and safety standards, practices and procedures for pipeline construction, and understand construction drawings and blueprints. They worked together with one of the owner’s employees to perform daily surveillance to ensure the integrity of the pipeline and avoid third party damage.
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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Employees Versus Independent Contractors
February 23, 2017 —
Chadd Reynolds – Autry, Hanrahan, Hall & Cook, LLPAre the workers you employ on the job site considered employees or independent contractors? This is an important distinction that contractors and subcontractors must understand for many purposes, including federal taxes. The classification of your workers can affect their federal income, social security, and Medicare taxes, and the type of benefits they can receive.
When determining whether workers should be classified as employees or independent contractors, courts generally look at three key factors: behavioral control, financial control, and the relationship of the parties.
Behavior Control
Behavior control concerns the business’s right to direct or control how the worker does its work. A worker is likely to be considered an employee when the business maintains behavior control. Such control can be exercised by giving instructions. This would include instructions on how, when, or where to do the work, what tools or equipment to use, who to hire to help with the work, or where to purchase the supplies to be used. Behavioral control can also occur through training. If the business provides training to tell the worker to do the work in a certain manner then the worker is more likely to be an employee.
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Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLPMr. Reynolds may be contacted at
reynolds@ahclaw.com