Climate Change a Factor in 'Unprecedented' South Asia Floods
July 18, 2022 —
The Associated Press (Aniruddha Ghosal & Al-Emrun Garjon) - BloombergSylhet, Bangladesh (AP) -- Scientists say climate change is a factor behind the erratic and early rains that triggered unprecedented floods in Bangladesh and northeastern India, killing dozens and making lives miserable for millions of others.
Although the region is no stranger to flooding, it typically takes place later in the year when monsoon rains are well underway.
This year's torrential rainfall lashed the area as early as March. It may take much longer to determine the extent to which climate change played a role in the floods, but scientists say that it has made the monsoon — a seasonable change in weather usually associated with strong rains — more variable over the past decades. This means that much of the rain expected to fall in a year is arriving in a space of weeks.
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Bloomberg
A Lien Might Just Save Your Small Construction Business
April 04, 2011 —
Douglas Reiser, Builders Council BlogMany owners incorrectly believe that payment to the general contractor gets the owner off the hook for payment to subcontractors and suppliers. This assumption sometimes fosters the irresponsible owner, who fails to ensure that everyone is getting paid. Fortunately for those contractors further down the contracting chain, this assumption is incorrect.
Suppliers and subcontractors can file a lien to secure payment for their labor and materials. A filing party must offer proper notice (if applicable) and file an adequate and timely lien in the County where the work is performed. You can read our earlier posts on these topics by following this link.
A lien notice and a lien put an owner on notice that your business has provided labor and/or materials for the improvement of the owner’s property (See RCW 60.04.031 for more info). If the owner fails to take care to ensure that your business is paid the law mandates that the owner may have to pay twice.
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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com
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Construction Defects Are Occurrences, Says South Carolina High Court
December 20, 2012 —
CDJ STAFFThe South Carolina Supreme Court has left the legislature’s new, expanded definition of “occurrence” in place, declining to declare it unconstitutional. South Carolina included faulty workmanship as an occurrence in response to a Supreme Court decision, which the court later reversed. One of the parties in that earlier decision, Harleysville Insurance, challenged the new law, claiming that the legislature didn’t have the power to pass a law to overturn a court ruling. The court did not concur.
However, the court did determine that the law was not retroactive and covered only claims filed after the law became effective in May 2011. The Chief Justice of South Carolina noted that “insurance coverage for construction liability lacks clarity, particularly with respect to whether construction defects constitute ‘occurrences’ under construction general insurance policies.”
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Real Estate & Construction News Roundup (6/18/24) – Cannabis’ Effect on Real Estate, AI’s Capabilities for Fund Managers and CRE’s Exposure on Large Banks
July 15, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, hotel-to-apartment conversions take big leap, state governments pass squatting legislation, US regional banks risk having debt ratings downgraded, and more!
- Reclassifying cannabis as a lower-risk substance could bring significant changes to the real estate sector associated with cannabis. (Margaret Jackson, Yahoo)
- More than 60 of the largest banks in the country are at increased risk of failure due to their commercial real estate (CRE) exposures. (Florida Atlantic University).
- As extreme weather grows in frequency and intensity, the nation’s patchwork of building codes have not kept up with modern conditions and if something goes wrong, contractors are not off the hook if they simply build to code. (Julie Strupp, Construction Dive)
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Pillsbury's Construction & Real Estate Law Team
Construction Contract Terms Matter. Be Careful When You Draft Them.
February 01, 2022 —
Christopher G. Hill - Construction Law MusingsIn a prior post, I discussed the case of Fluor Fed. Sols., LLC v. Bae Sys. Ordinance Sys in the context of the interplay between fraud, contract, and statutes of limitation. Some cases just keep on giving. This time the case illustrates the need for careful drafting of those
pesky, and highly important, clauses in your construction documents.
In the
current iteration of this ongoing saga, the Court considered the contractual aspects of the matter. As a reminder, the facts are as follows: In May 2011, the United States Army (“Army) awarded BAE Systems Ordnance Systems, Inc. (“BAE”) a contract to design and construct a natural gas-fired combined heating and power plant for the Radford Army Ammunition Plant (“RAAP”). On October 7, 2015, BAE issued a request for a proposal from Fluor Federal Solutions, LLC (“Fluor”) to design and build a temporary boiler facility at a specific location on the RAAP property. On October 13, 2015, the Army modified the prime contract to change the location of the boiler facility. On December 10, 2015, the Army modified the prime contract to require BAE to design and construct a permanent boiler facility. On December 30, 2015, Fluor and BAE executed a fixed-price subcontract for Fluor to design and construct the temporary boiler. Throughout 2016, BAE issued several modifications to Fluor’s subcontract to reflect the modifications BAE received from the Army on the prime contract. On March 23, 2016, BAE directed Fluor to build a permanent – rather than temporary – boiler facility. On March 28, 2016, Fluor began construction of the permanent facility and began negotiations with BAE about the cost of the permanent facility. On September 1, 2016, the parties reached an agreement on the cost for the design of the permanent facility, but not on the cost to construct the permanent facility. On November 29, 2016, the parties executed a modification to the subcontract, officially replacing the requirement to construct a temporary facility with a requirement to construct a permanent facility and agreeing to “negotiate and definitize the price to construct by December 15, 2016.” The parties were unable to reach an agreement on the construction price.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Is the Obsession With Recordable Injury Rates a Deadly Safety Distraction?
May 16, 2022 —
Richard Korman - Engineering News-RecordOn the first morning of 2021, laborer Mason Mack Harris, 25, reported for work that would have qualified for extra holiday pay. On that New Year’s Day, the onsite manager for his employer, Midwest Demolition Co., assigned Harris and a workmate to complete demolition of a 9-ft-high concrete balcony slab at a children’s home renovation project in Lincoln, Neb. According to U.S. Labor Dept. records, they used a concrete saw since neighbors had complained about jackhammer noise from earlier work.
Reprinted courtesy of
Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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Michigan Court Waives Goodbye to Subrogation Claims, Except as to Gross Negligence
March 13, 2023 —
Lian Skaf - The Subrogation StrategistIn Ace American Insurance Company, et. al. v. Toledo Engineering Co., Inc., et. al., No. 18-11503, 2023 U.S. Dist. LEXIS 15222 (Ace American), the United States District Court for the Eastern District of Michigan determined whether insurers could pursue their subrogation claims against the defendants despite a waiver of subrogation in each of the contracts the insured had with the respective defendants. Based on the language of the contracts and the circumstances leading up to the loss, the court held that the insurers could not pursue their subrogation claims – other than their claims for gross negligence – due to waivers of subrogation in the applicable contracts.
In Ace American, the insured, Guardian Industries, LLC (Guardian), retained Toledo Engineer Co., Inc. (TECO) and Dreicor, Inc. (Dreicor) to renovate a glass furnace in the insured’s glass manufacturing plant. Guardian and TECO entered into a contract on December 6, 2016. Guardian and Dreicor entered into a contract on September 29, 2013, that the parties later updated on June 3, 2016. Both defendants began work on the project in the spring of 2017 and were finished with the portion of the work known as the “Cold Tank Repair” prior to the loss.
On June 3, 2017, there was an explosion and fire at the plant that caused significant property damage. The plaintiff insurers (Plaintiffs) made payments in the amount of $80 million and became subrogated to its insured’s rights. Plaintiffs then initiated this action.
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Lian Skaf, White and Williams LLPMr. Skaf may be contacted at
skafl@whiteandwilliams.com
Poor Pleading Leads to Loss of Claim for Trespass Due to Relation-Back Doctrine, Statute of Limitations
April 13, 2017 —
Brett G. Moore & Lawrence S. Zucker II - Haight Brown & Bonesteel LLPIn Scholes v. Lambirth Trucking Co. (No. C070770, Filed 4/6/2017), the California Court of Appeal for the Third Appellate District held that the relation-back doctrine could not save a property owner’s trespass claim against an adjacent neighbor where the property owner’s original complaint was factually devoid and was later amended to include the trespass claim after the statute of limitations had run.
The relation-back doctrine is a well-settled legal principle which allows a plaintiff to amend a complaint to add a cause of action which would otherwise be barred by the statute of limitations. As long as the factual allegations “relate back” to the those alleged in the original complaint, an additional cause of action will not be subject to the applicable statute of limitations. The policy behind statutes of limitation is to put a defendant on notice of the need to defend against a claim in time to prepare an adequate defense.
On May 21, 2007, a fire broke out at defendant Lambirth Trucking Company’s (“Lambirth”) soil enhancement facility adjacent to plaintiff Vincent Scholes’ (“Scholes”) property. Scholes had previously notified Lambirth that wood chips and rice hulls were accumulating on his property as a result of Lambirth’s operations. Local authorities also warned Lambirth of the hazards presented by storage of those materials.
Reprinted courtesy of
Brett G. Moore, Haight Brown & Bonesteel LLP and
Lawrence S. Zucker II, Haight Brown & Bonesteel LLP
Mr. Moore may be contacted at bmoore@hbblaw.com
Mr. Zucker may be contacted at lzucker@hbblaw.com
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