Texas Legislature Puts a Spear in Doctrine Making Contractor Warrantor of Owner Furnished Plans and Specifications
May 31, 2021 —
Paulo Flores, Timothy D. Matheny & Jackson Mabry - Peckar & Abramson, P.C.The Texas Legislature has just sent Senate Bill 219 (“S.B. 219”) to the Governor for signature; if this legislation is signed by the Governor, it will further erode the Texas legal doctrine that makes the contractor the warrantor of owner-furnished plans and specifications unless the prime contract specifically places this burden on the owner.
Background
49 states follow what is known as the Spearin doctrine (named after the U.S. Supreme Court case of United States v. Spearin) in which owners warrant the accuracy and sufficiency of owner-furnished plans and specifications. Texas, on the other hand, follows the Texas Supreme Court created Lonergan doctrine, which has been an unfortunate presence in Texas construction law since 1907. In its “purest form,” as stated by the Texas Supreme Court, the Lonergan doctrine prevents a contractor from successfully asserting a claim for “breach of contract based on defective plans and specifications” unless the contract contains language that “shows an intent to shift the burden of risk to the owner.” Essentially, this then translates into the contractor warranting the sufficiency and accuracy of owner-furnished plans and specifications, unless the contract between them expressly places this burden on the owner. Over the years some Texas courts of appeal had ameliorated this harsh doctrine, but in 2012, the Texas Supreme Court indicated Lonergan was still the law in Texas, in the case of El Paso v. Mastec. In 2019, the Texas Legislature took the first step toward hopefully abrogating the Lonergan doctrine by implementing a new Chapter 473 to the Texas Transportation Code with respect to certain projects undertaken by the Texas Department of Transportation, and Texas political subdivisions acting under the authority of Chapters 284, 366, 370 or 431 of the Transportation Code, adopting, as it were, the Spearin Doctrine in these limited, transportation projects. Now, the legislature has further chipped away at the Lonergan doctrine with the passage of S.B. 219.
Reprinted courtesy of
Paulo Flores, Peckar & Abramson, P.C.,
Timothy D. Matheny, Peckar & Abramson, P.C. and
Jackson Mabry, Peckar & Abramson, P.C.
Mr. Flores may be contacted at PFlores@Pecklaw.com
Mr. Matheny may be contacted at tmatheny@pecklaw.com
Mr. Mabry may be contacted at jmabry@pecklaw.com
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One More Thing Moving From California to Texas: Wildfire Risk
June 19, 2023 —
Patrick Sisson - BloombergIn early January, Keith Elwell was doing one of the things he does best, swinging chainsaws to help save forests from wildfire. Amid groves of junipers and white oak trees, Elwell led a team of a half-dozen volunteers, clearing brush and dead limbs in Twin Springs Preserve in Williamson County, Texas, a 170-acre county preserve a 40-minute drive north of downtown Austin.
Set on the northeastern edge of Hill Country, a rolling, rocky landscape of natural springs and wild grasses, it’s also adjacent to Georgetown, the fastest-growing city in the United States according to US Census Bureau data. Once a small farming town, it’s now an Austin suburb of more than 75,000 people with 60 subdivisions under construction.
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Patrick Sisson, Bloomberg
Construction Litigation Roundup: “Give a Little Extra …”
July 31, 2024 —
Daniel Lund III - LexologySurplus lines insurers in Louisiana are considered by the state to be “an alternative type of property and casualty insurance coverage for consumers who cannot get coverage on the standard market … for specialty risk or high-risk situations….”
As a quid pro quo for undertaking the exceptional risk, a surplus lines insurer argued to the United States Fifth Circuit Court of Appeals that an arbitration clause within its surplus line policy should be enforceable, notwithstanding a Louisiana statute applying to the insurance industry and prohibiting terms in insurance policies “delivered or issued for delivery” in Louisiana which have the effect of “[d]epriving the courts of this state of the jurisdiction or venue of action against the insurer.” La. R.S. 22:868.
Historically in Louisiana, arbitration clauses have been understood to divest courts of jurisdiction, and, consequently, §22:868 has been held to memorialize an “anti-arbitration policy,” although the statute does not specifically mention arbitration.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Skilled Labor Shortage Implications for Construction Companies
July 15, 2019 —
Tony James & Keith Maciejewski - Construction ExecutiveThe construction industry is facing one of the most significant labor shortages it has ever seen. This labor shortage has far-reaching implications for worker safety and construction quality—both of which could adversely impact a company’s bottom line if investments are not made to address the issue.
What’s causing the labor gap?
There are two underlying trends driving this phenomenon:
- More experienced workers have either not returned to the industry after the Great Recession or are now retiring as they’ve concluded their careers.
- The construction industry has long struggled to attract new, younger workers to the industry, and this problem has only worsened as the broader economy boomed. As a result, construction firms must compete with other industries, such as health care, technology and engineering, for young talent.
Reprinted courtesy of
Tony James & Keith Maciejewski, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Some Coastal Cities Are Sinking Even Faster Than Seas Are Rising
June 20, 2022 —
Ditas B Lopez - BloombergRising seas have long been a threat to coastal cities. New research suggests that cities—particularly in Asia—are sinking as well, compounding the risks of frequent and severe flooding.
In Karachi, land is sinking five times as fast as the sea level is rising, according to the study published this month in Geophysical Research Letters. Manila and Chittagong, Bangladesh’s second-largest city, are sinking at 10 times the rate of the rising waters.
In China’s Tianjin, a coastal city about 150 kilometers southeast of Beijing, the ground is giving way at 20 times that speed.
In those four cities alone, the phenomenon could affect roughly 59 million residents.
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Ditas B Lopez, Bloomberg
Design Immunity Defense Gets Special Treatment on Summary Judgment
March 29, 2021 —
Garret Murai - California Construction Law BlogThis may be one that is more for the lawyers than it is for the contractors or owners.
If you’ve ever filed a motion for summary judgment or summary adjudication you know the standard is clear. You’re going to lose if the court finds a disputed issue of material fact. In other words, since summary judgment or summary adjudication is such an extreme remedy – you win without having to go to trial after all – the standard is pretty high. Thus, if there’s a dispute as to a material fact (was the light green or was it red?) it’s enough that the court will deny your motion.
That is, unless you’re seeking summary judgment or adjudication on a design immunity defense as the next case, Menges v. Department of Transportation, Case No. G057643 (December 24, 2020), reveals.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
City of Seattle Temporarily Shuts Down Public Works to Enforce Health and Safety Plans
April 13, 2020 —
Masaki J. Yamada - Ahlers Cressman & Sleight BlogThe Governor’s Stay Home, Stay Safe Order mandates that essential businesses must establish and implement social distancing and sanitation measures established by OSHA and the WA State DOH:
With construction work continuing on essential construction projects, some jurisdictions, such as the City of Seattle, are taking additional steps to enforce and oversee the establishment and implementation of updated Health and Safety plans on construction projects. The City of Seattle’s Mayor Jenny Durkan announced yesterday a two-day temporary suspension of Public Works construction beginning on Thursday, April 9th, to conduct health and safety training for workers and update protocols. The announcement may be viewed here. The City of Seattle also sent a letter in this regard and asked all contractors and owners provide project-specific responses to the Washington Building Trades COVID-19 Construction Industry Emergency Requirements. Herein are the links to the
letter and attached
requirements.
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Masaki J. Yamada, Ahlers Cressman & SleightMr. Yamada may be contacted at
masaki.yamada@acslawyers.com
Georgia State and Local Governments Receive Expanded Authority for Conservation Projects
May 31, 2021 —
David R. Cook Jr. - Autry, Hall & Cook, LLPIn the 2020-2021 session, the Georgia General Assembly amended existing laws to expand state and local governments’ authority to enter conservation projects. In connection with these projects, the contractor guarantees that cost savings or revenue increases will cover any payments for the project.
Read more about
conservation projects, including
Guaranteed Energy Savings Performance Contracts
With regard to school systems, conservation projects had previously included facility alterations designed to reduce energy or water consumption or operation costs. But the new law expands the permitted projects to include equipment purchases used in new construction or building retrofit, addition, or renovation. It also adds training programs incidental to the contract.
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David R. Cook Jr., Autry, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com