Dispute Among Joint Venture Partners and Joint Venture Agreement
January 28, 2025 —
David Adelstein - Florida Construction Legal UpdatesIn a dispute involving joint venture partners and a joint venture agreement, one of the partners sued a third party (which purchased the assets of the other partner). Claims against the third party included tortious interference of the joint venture agreement between the partners, conspiracy to tortiously interfere with the joint venture agreement between the partners, aiding and abetting a breach of fiduciary duty by the other partner, and conspiracy with the other partner to breach a fiduciary duty.
The dispute was tried in a non-jury trial. The other partner and the third party prevailed. A few key points on the above claims asserted against the third party that failed:
- Tortious interference of the contract -- Since the trial court found that the other partner did NOT breach the joint venture agreement, the cause of action for tortious interference failed. “No cause of action for tortious interference with a contract can exist in the absence of a breach.”
- Conspiracy to tortiously interfere with a contract -- “If an underlying tort [e.g., tortious interference] has not been established, a count for conspiracy to commit that tort will not lie.”
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
What Should Be in Every Construction Agreement
November 04, 2019 —
Patrick Barthet - Construction ExecutiveA detailed and coherent construction agreement in place on every job minimizes confusion, makes clear everyone’s respective responsibilities and reduces disputes. There are six things that should be addressed in every construction agreement.
DEFINE THE SCOPE
Define what the scope of work is that will be provided. Will it be only materials; will it be materials and labor; or will it be just labor? Be very clear and specific in how the scope of work is spelled out. Many contracts state that the contractor is responsible for all work that’s shown on the plans and specifications, as well as that which is reasonably inferable. While subjective—even if not actually on the plans or specifications, someone may believe that something should be part of the contractor’s work. This could expand what has to be done beyond what was understood or priced.
LIST ALL THE EXCLUSIONS
Do the parties each have the same understanding as to what is covered in the contract? How often are contractors faced with customers thinking something was included as part of the work? The contractor may have believed that task, or that material, or that specially fabricated item was excluded. But was it? Did the contractor articulate what was and was not in the scope and price? Specifically listing what is excluded can obviate this problem. Articulate what is not in the price or scope and reduce the chance of one party believing that something is to be done when it isn't.
Reprinted courtesy of
Patrick Barthet, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Barthet may be contacted at
pbarthet@barthet.com
North Carolina Should Protect Undocumented Witnesses to Charlotte Scaffolding Deaths, Unions Say
April 03, 2023 —
Engineering News-RecordCharlotte Observer
More than two months after a scaffolding collapse in Charlotte killed three men, labor unions are urging state leaders to protect undocumented construction workers who witnessed the collapse so they can safely talk to investigators.
Reprinted courtesy of
Engineering News-Record
ENR may be contacted at enr@enr.com
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Ninth Circuit Clears the Way for Review of Oregon District Court’s Rulings in Controversial Climate Change Case
February 27, 2019 —
Anthony B. Cavender - Gravel2GavelOn December 26, a divided panel of the U.S. Court of Appeals for the Ninth Circuit accepted an interlocutory appeal of the presiding District Court’s pre-trial rulings in the novel climate change case that is being tried in Oregon. The case is Juliana, et al. v. United States of America.
In its ruling, the Ninth Circuit held that the District Court certification of this case for interlocutory appeal satisfied the provisions of 28 U.S.C. § 1292(b). Ninth Circuit precedents authorize such an appeal when a District Court order “involves a controlling question of law as to which there is a substantial ground for difference of opinion”—which aptly characterizes the U.S. Supreme Court’s view of this litigation.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Insured's Remand of Bad Faith Action Granted
December 30, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court agreed remand of the insured's bad faith action to state court was appropriate. Kavanaugh v. Nat'l Union Fire Ins. Co., 2019 U.S. Dist. LEXIS 138465 (C.D. Calif. Aug. 15, 2019).
The insured sued National Union and Great American Insurance Company in state court for failing to defend him in three civil actions. In the alternative, claims were brought against Gallagher Risk Management Services, Inc. and Chelsea Laing for professional negligence in failing to broker and procure adequate insurance for him. Laing acted as an "agent and/or broker and procured at least one of the policies at issue."
Gallagher removed the action based on federal diversity jurisdiction. Although Laing was a citizen of California, Gallagher argued she was fraudulently joined and was a sham defendant, so her citizenship should be disregarded for purposes of diversity jurisdiction. The insured moved to remand because Laing was a proper defendant.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Identifying and Accessing Coverage in Complex Construction Claims
September 29, 2021 —
Jeffrey J. Vita & Michael V. Pepe - Saxe Doernberger & Vita, P.C.I. Introduction
First-party, third-party, builder’s risk, professional liability, commercial general liability, wrap-ups, and additional insured status are all potential sources of insurance coverage for a large construction loss. Therefore, it is critical for construction industry participants, from owners and developers to general contractors and their subcontractors, to have a functional knowledge of the different types of insurance coverage available to them and how those coverages intersect to respond to a loss. This paper presents a brief overview of the various types of coverage available to contractors, construction managers, and owners in a large construction loss and the risks each coverage is designed to insure.
In general, there are two forms of coverage: (1) First-party liability coverage, which protects an insured’s own losses on a project during construction; and (2) Third-party liability coverage, which insures the project participants for losses that become the subject of claims or suits brought against the project participants by third parties. When a loss occurs, such as property damage, both types of coverage can be implicated. For example, if a fire burns down a building under construction, the contractor likely would incur first-party losses such as cleanup costs. The contractor may also have third-party exposure if the owner alleges that the contractor was responsible for the fire. On the other hand, when a bodily injury occurs, all losses to the contractor will be third-party losses. A broad overview of each of these policies is provided below.
Reprinted courtesy of
Jeffrey J. Vita, Saxe Doernberger & Vita and
Michael V. Pepe, Saxe Doernberger & Vita
Mr. Vita may be contacted at JVita@sdvlaw.com
Mr. Pepe may be contacted at MPepe@sdvlaw.com
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Pancakes Decision Survives Challenge Before Hawaii Appellate Court
March 12, 2015 —
Tred R. Eyerly – Insurance Law HawaiiIn 1997, the Hawaii Intermediate Court of Appeals (ICA) decided Pancakes of Hawaii, Inc. v. Pomare Prop. Corp., 85 Haw. 286, 944 P.2d 83 (Haw. Ct. App. 1997). Although not an insurance coverage case, Pancakes addressed the duty to defend in terms of a contractual indemnity obligation. Under challenge in a recent appeal before the ICA, the Court reaffirmed the holding in Pancakes. Arthur v. State of Hawaii, Dept. of Hawaiian Home Lands, 2015 Haw. App. LEXIS 109 (Haw. Ct. App. Feb. 27, 2015).
The decision is long with detailed facts complicated and many indemnities running in favor of various parties. This post focuses on the decision's discussion of Pancakes.
A resident, Mona Arthur, of the Kalawahine Streamside Housing Development, was killed when she apparently slipped and fell from a hillside adjacent to the project. She was on the hillside tending to her garden there. At the bottom of the hill was a two foot fence in front of a drainage ditch, where Mona allegedly hit her head.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Not so Fast! How Does Revoking Acceleration of a Note Impact the Statute of Limitations?
July 30, 2018 —
Ben Reeves - Snell & Wilmer Real Estate Litigation BlogIntroduction
Lenders routinely accelerate notes after a default occurs, calling the entire loan due immediately. Less regularly, a lender may change its mind and unilaterally revoke the acceleration. Rarely, however, does a lender fail to foreclose on its real property collateral before the statute of limitations expires. In Andra R. Miller Designs, LLC v. U.S. Bank, N.A., 244 Ariz. 265, 418 P.3d 1038 (Ct. App. 2018), a unique set of facts involving these issues led the Arizona Court of Appeals to hold that proper revocation of acceleration resets the statute of limitations.
The Facts
In Miller, a lender made a $1,940,000 loan evidenced by a promissory note and secured by a deed of trust against a home in Paradise Valley, Arizona. The borrower defaulted in September 2008. The default prompted the lender to notice a default, accelerate the note, and initiate a trustee’s sale of the home in 2009. After the lender accelerated the note, the six year statute of limitations began to run. See A.R.S. § 12-548(A)(1) and A.R.S. § 33-816. Pretty standard facts so far, right? Don’t worry, it gets a bit more convoluted.
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Ben Reeves, Snell & WilmerMr. Reeves may be contacted at
breeves@swlaw.com