Construction Litigation Roundup: “Wrap Music to an Insurer’s Ears?”
February 05, 2024 —
Daniel Lund III - LexologyThe general contractor on a New Orleans condominium construction project obtained a Contractor Controlled Insurance Program/CCIP policy or "Wrap-Up" policy for the job.
An accident occurred on the job when a construction elevator/hoist fell, injuring several workers. The elevator/hoist was provided by a subcontractor, pursuant to a rental agreement and related subcontract with the general contractor. Contained within the subcontract was a provision which states that the general contractor "has arranged for the Project to be insured under a controlled insurance program (the "CCIP" or "WrapUp"),” and that the CCIP shall provide "commercial general liability insurance and excess liability insurance, in connection with the performance of the Work at the Project site."
A third-party administrator for the wrap-up policy had been in communication with the subcontractor prior to the commencement of the work, “specifically advising that insurance coverage was not automatic” and providing the subcontractor with an enrollment form for the CCIP. Ultimately, the subcontractor “declined to comply with the request,” stating that the subcontractor would "not participate in paying any wrap insurance premiums" – because the subcontractor had its own insurance.
Read the court decisionRead the full story...Reprinted courtesy of
Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Engineer Proposes Slashing Scope of Millennium Tower Pile Upgrade
January 03, 2022 —
Nadine M. Post - Engineering News-RecordBased on further structural analysis and the success of a pilot program that installed three permanent piles using modified procedures, the structural engineer-of-record for the delayed perimeter pile upgrade of the 645-ft-tall Millennium Tower in San Francisco has proposed a significantly reduced scope for the project that he says would still arrest settlement and allow the slow recovery of some of the condominium building’s tilt.
Reprinted courtesy of
Nadine M. Post, Engineering News-Record
Ms. Post may be contacted at postn@enr.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of
Pile Test Likely for Settling Millennium Tower
October 04, 2021 —
Nadine M. Post - Engineering News-RecordA pilot pile program to prove the efficacy of a less-disruptive method for the paused foundation fix at the ailing Millennium Tower in San Francisco could begin the week of Oct. 4. Accelerated settling and tilt—caused by a pile upgrade intended to correct settlement of the 645-ft-tall residential condominium—ceased after Aug. 20, when the engineer-of-record halted the $100-million fix.
Reprinted courtesy of
Nadine M. Post, Engineering News-Record
Ms. Post may be contacted at postn@enr.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of
Staffing Company Not Entitled to Make a Claim Against a Payment Bond and Attorneys’ Fees on State Public Works Payment Bonds
August 12, 2024 —
Garret Murai - California Construction Law BlogIt’s not quite Baskin Robbin’s “31 Flavors” but the panoply of statutory construction payment remedies available to contractors, subcontractor and material suppliers in California, from mechanics liens to stop payment notices to payment bond claims, can be tempting to reach for when you are not paid. However, some flavors are more readily available than others, as a staffing agency discovered in
K & S Staffing Solutions, Inc. v. The Western Surety Company, Case Nos. C096705 and C097987 (January 2, 2024).
The K & S Staffing Case
The California Department of Transportation awarded VSS International, Inc. two public works construction contracts for road maintenance. Each involved an expenditure of over $25,000 and VSSI obtained a payment bond from Western Surety Company.
Titan DVBE Inc. was a subcontractor on both projects. For most years, Titan employed its own workers. However, when it learned that its insurance carrier would no longer be offering workers’ compensation insurance in California it switched to K & S Staffing Solutions, Inc. to fulfill its staffing needs.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Brief Overview of Rights of Unlicensed Contractors in California
September 10, 2014 —
William M. Kaufman – Construction Lawyers BlogUnder California Contractor’s State License Law enumerated in Business and Professions Code Sections 7000 to 7191, a contractor may not “bring or maintain” any action for compensation for performing any act or contract for which a license is required unless the contractor was duly licensed “at all times” during performance. Bus & Prof Code Section 7031(a).
What does this mean and who does it include?
This is a question that often has to be answered on a case by case basis. Basically, California does not want unlicensed contractors to be able to get paid for work that should be performed by a licensed contractor. The law has set forth some general parameters. General contractors, subcontractors, and master developers must be licensed. However, suppliers, manufacturers, laborers and equipment lessors are exempt and do not need a contractor’s license. Essentially, those parties that merely furnish material or supplies without fabricating them into, or consuming them in the performance of work, do not need to be licensed. Bus & Prof Code Section 7052.
There are sever fines and penalties for those who improperly perform construction work without a license. A contract between any contractor and an unlicensed subcontractor is a misdemeanor. Lack of a license bars all actions in law or in equity for collection of compensation for the performance of work requiring a license. There are very few exceptions to this rule. A “savvy” unlicensed contractor cannot simply avoid these requirements by “subbing” out all the work to licensed contractors. Any person who uses the services of an unlicensed contractor may file a court action or cross-complaint to recover all payments made to the unlicensed contractor. In addition, a person who uses the services of an unlicensed contractor is a victim of a crime and eligible for restitution of economic losses regardless of whether that person had knowledge that the contractor was unlicensed. Bus. & Prof Code Sections 7028, 7028.16. It goes without saying that performing work without a license on projects is a bad idea.
Reprinted courtesy of
William M. Kaufman, Lockhart Park LP
Mr. Kaufman may be contacted at wkaufman@lockhartpark.com, and you may visit the firm's website at www.lockhartpark.com
Read the court decisionRead the full story...Reprinted courtesy of
Recycling Our Cities, One Building at a Time
December 13, 2022 —
Aaron Clark & Erica Yokoyama - BloombergTakumi Osawa kneels on the narrow balcony of a wooden house outside Tokyo and describes how, 140 years ago, workers would have hoisted baskets of mulberry leaves to the second floor to feed silkworms. When they ate, it sounded like rain.
Known in Japan as minka, these locally crafted structures with characteristic pitched roofs were built for hundreds of years to accommodate farmers, artisans and merchants. This one was originally constructed in 1879 and housed a family on the first floor who tended silkworms on the second and third. Minka are typically designed like an interlocking puzzle, without nails or screws, which allowed Osawa and a team of craftsmen to take the building apart, move it about 90 kilometers (56 miles) east and reassemble it closer to Tokyo, where a couple now live in it.
The number of empty homes in Japan is rising as the population shrinks and younger generations gravitate toward the city. Government data suggests as many as 8 million houses, many built during a post-World War II construction boom that lasted into the 1980s, now lie unoccupied.
Reprinted courtesy of
Aaron Clark, Bloomberg and
Erica Yokoyama, Bloomberg Read the court decisionRead the full story...Reprinted courtesy of
Electrical Subcontractor Sues over Termination
November 13, 2013 —
CDJ STAFFMillennium Plus, Inc. has sued the contractor for the Efrain A. Duran Water Treatment Plant Facility and Rio Grande City for failing to pay money due to them and terminating the contract. According to the lawsuit, Millennium is claiming that they are owed $161,781 for their work on the water treatment facility.
According to the city, the project’s contractor was “very unsatisfied with Millennium’s work.” Although the city disclaims any involvement, Millennium claims it was a “joint enterprise.”
Read the court decisionRead the full story...Reprinted courtesy of
Contractors Prepare for a Strong 2021 Despite Unpredictability
April 05, 2021 —
Kenny Ingram - Construction ExecutiveA recent IFS study found many construction and engineering companies are reimagining their business models to ensure a secure future, using the pandemic-induced lull in business to prepare themselves to get back to operations on a strong footing.
The research shows 70% of businesses have increased or maintained digital transformation spend, despite the COVID-19 pandemic. In the infrastructure, engineering and construction sectors the figure is more than 75%.
There are many challenges the industry will face in the new year following the unpredictability of 2020, but there are also many opportunities. Despite the uncertainties that lay ahead, here are the few trends predicted to impact the sector 2021 and beyond.
Reprinted courtesy of
Kenny Ingram, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of