Caltrans to Speak before California Senate regarding Bay Bridge Expansion
August 06, 2014 —
Beverley BevenFlorez-CDJ STAFFThe San Francisco Chronicle reported that at an upcoming California Senate hearing, Caltrans is expected to defend itself against “allegations that they ‘gagged and banished’ engineers who identified construction problems on the new Bay Bridge eastern span and that the agency failed to maintain basic quality control on the project.”
Members of the “Senate Transportation and Housing Committee will question Caltrans Director Malcolm Dougherty, other state officials and the head of the bridge's lead contractor, American Bridge/Fluor, about two reports last week from an investigator and a panel of six engineers who were critical of how the $6.4 billion project was managed.”
Read the court decisionRead the full story...Reprinted courtesy of
Illinois Supreme Court Holds that Constructions Defects May Constitute “Property Damage” Caused By An “Occurrence” Under Standard CGL Policy, Overruling Prior Appellate Court Precedent
January 08, 2024 —
Jason Taylor - Traub Lieberman Insurance Law BlogOn November 30, 2023, the Illinois Supreme Court issued an opinion that overturned precedent in Illinois regarding whether faulty workmanship that only caused damage to the insured’s own work constituted “property damage” caused by an “occurrence” under Illinois law. In Acuity v. M/I Homes of Chicago, LLC, 2023 IL 129087, the Illinois Supreme Court considered whether Acuity, a mutual insurance company, had a duty to defend its additional insured, M/I Homes of Chicago, LLC (M/I Homes), under a subcontractor’s commercial general liability (CGL) policy in connection with an underlying lawsuit brought by a townhome owners’ association for breach of contract and breach of an implied warranty of habitability. The Cook County Circuit Court granted summary judgment in favor of Acuity finding no duty to defend because the underlying complaint did not allege “property damage” caused by an “occurrence” under the initial grant of coverage of the insurance policy. The appellate court reversed and remanded, finding that Acuity owed M/I Homes a duty to defend. The Illinois Supreme Court affirmed, in part, holding construction defects to the general contractor’s own work may constitute “property damage” caused by an “occurrence” under the standard CGL Policy. This is significant as it overrules prior Illinois precedent finding that repair or replacement of the insured’s defective work does not satisfy the initial grant of coverage of a CGL Policy.
By way of background, the underlying litigation stems from alleged construction defects in a residential townhome development in the village of Hanover Park, Illinois. The townhome owners’ association, through its board of directors (the Association) subsequently filed an action on behalf of the townhome owners for breach of contract and breach of the implied warranty of habitability against M/I Homes as the general contractor and successor developer/seller of the townhomes. The Association alleged that M/I Homes’ subcontractors caused construction defects by using defective materials, conducting faulty workmanship, and failing to comply with applicable building codes. As a result, “[t]he [d]efects caused physical injury to the [t]ownhomes (i.e. altered the exterior’s appearance, shape, color or other material dimension) after construction of the [t]ownhome[ ] was completed from repeated exposure to substantially the same general conditions.” The defects included “leakage and/or uncontrolled water and/or moisture in locations in the buildings where it was not intended or expected.” The Association alleged that the “[d]efects have caused substantial damage to the [t]ownhomes and damage to other property.”
Read the court decisionRead the full story...Reprinted courtesy of
Jason Taylor, Traub LiebermanMr. Taylor may be contacted at
jtaylor@tlsslaw.com
Remembering Joseph H. Foster
April 20, 2016 —
White & Williams LLPWe are saddened to share the news of the loss of our longtime partner and good friend, Joseph H. Foster.
Mr. Foster was a nationally recognized trial attorney who began his career at White and Williams LLP in 1958, becoming a partner in 1963, and continued to practice law, coming into the office every day, until he was hospitalized before his passing. A true giant in the Pennsylvania legal community, Joe exemplified the best of the legal profession and was widely admired and respected among the bar and bench for his lasting and impactful contributions.
Mr. Foster served as the Chair of the Litigation Department and a member of the firm’s Executive Committee. During his tenure at White and Williams, he grew to become one of the most respected trial lawyers in Pennsylvania. He promoted a culture of excellence in client services and was the proverbial lawyer’s lawyer, treating his adversaries with courtesy and respect and always looking to find justice in the matters he handled. He was active in training at the firm, mentoring generations of trial lawyers and personally moving for the admission of hundreds of new attorneys at the firm, including an annual ceremony in Federal Court.
Read the court decisionRead the full story...Reprinted courtesy of
White & Williams LLP
Contracts and Fraud Don’t Mix (Even for Lawyers!)
August 24, 2020 —
Christopher G. Hill - Construction Law MusingsIn prior posts here at Construction Law Musings, I have discussed how fraud and contracts are often like oil and water. While there are exceptions, these exceptions are few and far between here in Virginia. The reason for the lack of a mix between these two types of claims is the so-called “source of duty” rule. The gist of this rule is that where the reason money is owed from one party to another (the source of the “duty to pay”) is based in the contract, Virginia courts will not allow a fraud claim. The rule was created so that all breaches of contract, claims that are at base a failure to fulfill a prior promise and could, therefore, be considered to be based on a prior “lie,” would not be expanded to turn into tort claims. This rule has been extended to claims that most average people (read, non-lawyers) would consider fraud because there was no intent to fulfill the contract at the time it was signed.
Just so you don’t think that lawyers are exempt from this legal analysis, I point you to a recent case where a law firm sued a construction client of theirs for failure to pay legal fees. In EvansStarrett PLC v. Goode & Preferred General Contracting, the Fairfax County Circuit Court considered a motion by the Plaintiff law firm seeking to add a count of fraud to its breach of contract lawsuit. The Court considered the following facts.
Read the court decisionRead the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Can an Architect, Hired by an Owner, Be Sued by the General Contractor?
September 10, 2014 —
Craig Martin – Construction Contractor AdvisorAs is often the answer in this blog, maybe. And, it will likely depend on which state’s law is applied. Over the last few weeks, courts around the country have reached differing conclusions on whether a general contractor may sue an architect that it did not hire.
Here’s the situation: The owner hires an architect to draft plans for a project. The project is then put out for bid and the owner hires a general contractor for the work. The general contractor and architect do not enter into a contract with each other.
If, during construction, the general contractor finds fault with the plans, it may seek Request for Information and Change Orders, to shore up the perceived problems with the plans. Ultimately, the general contractor may sue the architect to recover damages it suffered in completing the project.
Read the court decisionRead the full story...Reprinted courtesy of
Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Subcontractor’s Claim against City Barred by City’s Compliance with Georgia Payment Bond Statute
March 29, 2017 —
Chadd Reynolds – Autry, Hanrahan, Hall & Cook, LLPIn a recent Georgia Court of Appeals case, the Court was tasked with determining whether the City of Atlanta’s compliance with the Georgia Payment Bond Statutes barred a subcontractor from recovery against it after the general contractor failed to pay and the surety became insolvent.
Squared Plumbing Co., LLC (J. Squared), was a subcontractor on a project to clean up sewage spills in approximately 100 dwellings for the City of Atlanta. As required by the contract executed with the City, the general contractor, Scott and Sons Holdings, LLC (Scott and Sons), obtained a $200,000 payment bond from its surety, First Seaford Surety, Inc. (First Seaford). J. Squared sought to collect on the payment bond when Scott and Sons failed to pay J. Squared for the work it performed on the project. However, First Seaford became insolvent. J. Squared subsequently filed a claim against Scott and Sons and the City to recover $140,000 for its work on the project.
Read the court decisionRead the full story...Reprinted courtesy of
Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLPMr. Reynolds may be contacted at
reynolds@ahclaw.com
Pallonji Mistry, Indian Billionaire Caught in Tata Feud, Dies at 93
August 15, 2022 —
Bhuma Shrivastava - BloombergPallonji Mistry, the Indian-born billionaire whose engineering empire built luxury hotels, stadiums, palaces and factories across Asia and whose family’s epic showdown with the Tata Group sparked India’s biggest corporate feud, has passed away in Mumbai. He was 93.
A company spokesperson confirmed the death of the Indian tycoon after social media posts on the news spread.
Mistry and his family control the Shapoorji Pallonji Group, which started more than 150 years ago and today employs more than 50,000 people in over 50 countries, according to its website. Its landmark projects include the Reserve Bank of India and the Oberoi Hotel in Mumbai and the blue-and-gold Al Alam palace for the Sultan of Oman.
Read the court decisionRead the full story...Reprinted courtesy of
Bhuma Shrivastava, Bloomberg
Traub Lieberman Attorneys Lisa M. Rolle and Vito John Marzano Secure Dismissal of Indemnification and Breach of Contract Claims Asserted against Subcontractor
November 24, 2019 —
Lisa M. Rolle & Vito John Marzano - Traub Lieberman PerspectivesOn August 7, 2019, TLSS Partner Lisa M. Rolle and associate Vito John Marzano obtained a dismissal of all claims on behalf of their client, the subfloor subcontractor at the worksite, in a severed action filed in the Supreme Court of the State of New York, County of Kings.
In April 2014, plaintiff commenced suit against several defendants, including the general contractor, after he sustained an injury when he fell through temporary plywood while installing a staircase at a worksite in Brooklyn. In May 2018, plaintiff filed a note of issue and certified the matter as ready for trial. Immediately thereafter, the general contractor initiated a second third-party action against the subcontractor seeking common-law and contractual indemnification and breach of contract. The Court subsequently granted Traub Lieberman’s motion to sever the second third-party action and instructed the general contractor to file a new action.
After the general contractor recommenced suit, Traub Lieberman, on behalf of its client, the subcontractor, immediately moved to dismiss for failure to state a cause of action. In relevant part, Traub Lieberman pointed to the deposition testimony of the general contractor’s principal to establish that the subcontractor had finished its work on the permanent subfloor no less ten months to over a year prior to plaintiff’s accident, and that the subfloor required no alteration, repair or maintenance prior to or as a result of plaintiff’s accident. Further, the general contractor’s testimony pointed to work performed by another subcontractor that directly resulted in plaintiff’s injuries. It was also brought to the Court’s attention that plaintiff had testified that he fell through a temporary plywood floor, and that the subcontractor had only installed a permanent subfloor.
Reprinted courtesy of
Lisa Rolle, Traub Lieberman and
Vito John Marzano, Traub Lieberman
Ms. Rolle may be contacted at lrolle@tlsslaw.com
Mr. Marzano may be contacted at vmarzano@tlsslaw.com
Read the court decisionRead the full story...Reprinted courtesy of