Disaster Remediation Contracts: Understanding the Law to Avoid a Second Disaster
August 30, 2017 —
Todd Colvard – Peckar & Abramson, P.C.In the aftermath of Hurricane Harvey, consumers and contractors should be aware of protections prescribed by the Texas Legislature for Disaster Remediation Contracts. Chapter 58 of the Texas Business and Commerce Code includes several important consumer protections. Consumers should be aware of these protections, and contractors should take care to avoid inadvertent violations.
This statute applies to a contractor engaged in “disaster remediation,” in a county subject to a disaster declaration. Those contracts are subject to certain notice provisions and limitations. A violation of Chapter 58 is considered a Deceptive Trade Practice and could subject a violator to both public and private remedies. The full text of Chapter 58 is found here: http://www.statutes.legis.state.tx.us/Docs/BC/htm/BC.58.htm.
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Todd Colvard, Peckar & Abramson, P.C.Mr. Colvard may be contacted at
tcolvard@pecklaw.com
Reinventing the Building Envelope – Interview with Gordon A Geddes
September 01, 2016 —
Aarni Heiskanen – AEC BusinessIn this interview with Gordon A Geddes, CEO of Lynx Systems, we talk about reinventing the building envelope. Gordon also gives great advice to innovators in the construction industry.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aarni@aepartners.fi
KF-103 v. American Family Mutual Insurance: An Exception to the Four Corners Rule
October 29, 2014 —
Zach McLeroy – Colorado Construction LitigationIn Colorado, the “complaint rule,” also known as the “four corners rule,” requires an insurer to provide a defense when an underlying complaint alleges any set of facts that may fall within an insurance policy. This can result in a situation where an insurer has a duty to defend although the underlying facts ultimately do not fall within the policy.
In KF-103 v. American Family Mutual Insurance, 2014 WL 4409876, District Court Judge Richard P. Matsch recognized an exception to the complaint rule. In doing so, Judge Matsch determined that a court may look beyond the complaint to judicial orders preceding the filing of the complaint to determine whether an insurer has a duty to defend. Therefore, a party may not be able to assert unsupported facts in a complaint for the sole purpose of triggering an insurance policy.
KF 103 v. American Family arose out of an underlying easement dispute. In the underlying case, KF 103-CV, LLC (“KF 103”) purchased a piece of property from the Infinity Group. As a condition of the purchase agreement, Infinity Group was required to complete improvements to boundary streets and the intersection of Ski Lane and Sorpresa Lane. Several adjoining property owners (the “neighbors”) objected to the modification of the intersection because it violated an express easement (the “easement”) that provided access to their properties.
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Zach McLeroy, Higgins, Hopkins, McLain & Roswell, LLCMr. McLeroy may be contacted at
McLeroy@hhmrlaw.com
Understand Agreements in Hold Harmless and Indemnity Provisions
June 06, 2022 —
Jeffrey Cavignac - Construction ExecutiveOne of the most important provisions in a construction contract is the indemnity provision. An indemnity provision, which usually includes a requirement to hold harmless and defend another party, is included in nearly all construction contracts. Generally speaking, the upstream party (a general contractor or owner, for example) is attempting to shift risk to a downstream party (the general contractor or a subcontractor). In simple terms, subject to certain parameters, the downstream party is agreeing to be responsible for the upstream parties’ mistakes.
DEFINING INDEMNIFICATION
Insurance brokers focused on development and construction businesses get asked frequently: “If we sign this, are we insured?” It would be great if this could be answered “yes” or “no,” but life is rarely that straightforward. To understand whether a specific indemnification is insurable, we have to drill down on the actual provision. Let’s look at a typical indemnification below:
“To the fullest extent permitted by law the Contractor shall indemnify, defend and hold harmless the owner, architect, architect’s consultants and agents and employees of any of them from and against any claims, damages, losses and expenses, including but not limited to attorneys’ fees, arising out of or resulting from performance of the work whether caused in whole or in part by the contractor, a subcontractor, anyone directly or indirectly employed by them or anyone for whose acts they may be liable.”
Reprinted courtesy of
Jeffrey Cavignac, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Beyond the Statute: How the Colorado Court Upheld Modified Accrual in Construction Contracts
November 13, 2023 —
Hal Baker - Colorado Construction Litigation BlogIn a case of first impression, the First Division of the Colorado Court of Appeals recently reviewed whether parties may contractually alter the accrual time established by Colorado’s statute of limitations for construction defect actions, C.R.S. § 13-80-104, in South Conejos Sch. Dist. RE-10 v. Wold Architects, Inc., 2023 COA 85 (2023), decided on September 21, 2023. The Court held that sophisticated parties may contractually alter the accrual time standards, enlarging the accrual time as was the issue in this case. Notably, the Court’s decision was made in the context of commercial construction, not residential.
The issue in South Conejos Sch. Dist. RE-10 arose from the construction of a school in Antonito, Colorado. Prior to construction, the South Conejos School District RE-10 (the “School District”) and Wold Architects, Inc. (“Wold”) entered a contract that provided:
Unless a longer period is provided by law, any action against [Wold] brought to recover damages for deficiency in the design, planning, supervision, inspection, construction or observation of construction or for injury to person or property shall be brought within two years after the claim for relief arises and is discovered by [the District]; … “Discovered” as used herein means detection and knowledge by [the District] of the defect in the improvement that ultimately causes the injury, when such defect is of a substantial or significant nature.
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Hal Baker, Higgins, Hopkins, McLain & Roswell, LLCMr. Baker may be contacted at
baker@hhmrlaw.com
Housing Affordability Down
November 20, 2013 —
CDJ STAFFIn what Rick Judson, the chairman of the National Association of Home Builders, describes as a “‘perfect storm’ scenario,” home prices and interest rates are up “at the same time that the cost of building homes is rising due to tightened supplies of building materials, developable lots and labor.” Residential housing is becoming less affordable.
David Crowe, the Chief Economist for the NAHB, attributes this to “higher mortgage rates and the more than year-long steady increase in home prices,” but he notes that “a family earning a median income can afford 65% of homes recently sold.”
For the last four quarters, the San Francisco-San Mateo-Redwood City area in California holds the dubious distinction of being the nation’s least affordable area. There, a family earning the area’s median income of $101,200 (nearly double the national median) could only afford 16% of the homes sold in the area.
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SCOTUS, Having Received Views of Solicitor General, Will Decide Whether CWA Regulates Indirect Discharge of Pollutants Into Navigable Water Via Groundwater
April 17, 2019 —
Anthony B. Cavender - Gravel2GavelPrior to deciding whether to review an important February 1, 2018, U.S. Court of Appeals for the Ninth Circuit decision involving the jurisdictional reach of the Clean Water Act (CWA), Hawai’i Wildlife Fund, et al., v. County of Maui, the Supreme Court asked the Solicitor General for the views of the U.S. on the holdings of this case and the April 12, 2018 U.S. Court of Appeals for the Fourth Circuit decision, Upstate Forever, et al., v. Kinder Morgan Energy Partners, L.P., et al.
On February 19, the Supreme Court confirmed that certiorari was granted to Question 1 presented by the Petition,
Whether the CWA requires a permit when pollutants originate from a point source but are conveyed to navigable waters by a nonpoint source, such as groundwater. (33 U.S.C. § 1362 (12)
In County of Maui , the Ninth Circuit held that indirect discharges to navigable waters through groundwater may be subject to the Environmental Protection Agency’s (EPA) CWA the National Pollutant Discharge Elimination System (NPDES) permitting authority, and in Kinder Morgan, the Fourth Circuit held that such an indirect discharge may be subject to regulation under the CWA when there is a direct hydrological connection between the discharge into groundwater and the direct discharge into navigable, surface waters.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
United States Supreme Court Grants Certiorari in EEOC Subpoena Case
March 29, 2017 —
Jeffrey M. Daitz & Rashmee Sinha - Peckar & Abramson, P.C.On September 29, 2016, the United States Supreme Court granted certiorari in McLane Co. Inc. v. EEOC, case number 15-1248, a case that asks the Court to resolve a split in the Circuit Courts of Appeals on the proper standard of review applied to a district court decision to quash or enforce a subpoena issued by the United States Equal Employment Opportunity Commission ("EEOC"). The decision by our highest court on the correct standard of review will have important implications for businesses, because if a litigant is displeased with a lower court's decision, it may get two bites at the apple. Such an outcome will likely encourage more appeals, drawn-out investigations and increase legal fees.
On the other hand, if the Supreme Court decides that the Ninth Circuit was wrong and that a deferential standard of review (as opposed to a de nova standard) is appropriate, the losing side in future cases is more likely to accept the decision of the lower district court, knowing its chances of winning on appeal are slim.
Reprinted courtesy of
Jeffrey M. Daitz, Peckar & Abramson, P.C. and
Rashmee Sinha, Peckar & Abramson, P.C.
Mr. Daitz may be contacted at jdaitz@pecklaw.com
Ms. Sinha may be contacted at rsinha@pecklaw.com
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