BUILD Act Inching Closer To Reality
July 08, 2011 —
Douglas Reiser, Builders Council BlogA select group of Senators have launched a marketing campaign for the BUILD Act. If this is the first you are hearing about the BUILD Act, do not fret. The Act still has a long way to go, but if successful it would bring a national infrastructure bank.
I have been fascinated with the concept of a national infrastructure bank for quite some time. The idea has been around since the Clinton years ? and perhaps beyond. The Act’s purpose is to create a national bank (American Infrastructure Financing Authority) to provide loans and loan guarantees to encourage private investment in upgrading America’s infrastructure. For a number of years, we have seen similar legislation float around Congress. But, none of those initiatives have gained as much traction as BUILD.
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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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Connecticut Crumbling Concrete Cases Not Covered Under "Collapse" Provision in Homeowner's Policy
July 01, 2019 —
Kerianne E. Kane - Saxe Doernberger & Vita, P.C.What do you do when your house falls out from underneath you? Over the last few years, homeowners in northeastern Connecticut have been suing their insurers for denying coverage for claims based on deteriorating foundations in their homes. The lawsuits, which have come to be known as the “crumbling concrete cases,” stem from the use of faulty concrete to pour foundations of approximately 35,000 homes built during the 1980s and 1990s. In order to save their homes, thousands of homeowners have been left with no other choice but to lift their homes off the crumbling foundations, tear out the defective concrete and replace it. The process typically costs between $150,000 to $350,000 per home, and homeowner’s insurers are refusing to cover the costs. As a result, dozens of lawsuits have been filed by Connecticut homeowners in both state and federal court.
Of those cases, three related lawsuits against Allstate Insurance Company were the first to make it to the federal appellate level.1 The Second Circuit Court of Appeals was tasked with deciding one common issue: whether the “collapse” provision in the Allstate homeowner’s policy affords coverage for gradually deteriorating basement walls that remain standing.
The Allstate policies at issue were “all-risk” policies, meaning they covered “sudden and accidental direct physical losses” to residential properties. While “collapse” losses were generally excluded, the policies did provide coverage for a limited class of “sudden and accidental” collapses, including those caused by “hidden decay,” and/or “defective methods or materials used in construction, repair or renovations.” Covered collapses did not include instances of “settling, cracking, shrinking, bulging or expansion.”
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Kerianne E. Kane, Saxe Doernberger & Vita, P.C.Ms. Kane may be contacted at
kek@sdvlaw.com
Thoughts on New Pay if Paid Legislation
March 28, 2022 —
Christopher G. Hill - Construction Law MusingsRecently, the Virginia General Assembly closed its session having passed legislation essentially banning “pay if paid” clauses in construction contracts, both public and private. Assuming that Governor Youngkin signs the bill into law on or before his deadline of April 11, 2022, the following new requirement will be grafted into any Virginia construction contract:
Such contract shall require such higher-tier contractor to pay such lower-tier subcontractor within the earlier of (i) 45 days of the satisfactory completion of the portion of the work for which the subcontractor has invoiced or (ii) seven days after receipt of amounts paid by the owner to the general contractor or by the higher-tier contractor to the lower-tier contractor for work performed by a subcontractor pursuant to the terms of the contract.
This is the main operative language (the 45-day payment requirement is also applied to project owners), but the legislation also imposes certain other notice duties upon both the owner and any higher-tier contractor on a construction project. Interestingly, the legislation does not include a provision making it only effective for those contracts entered into after its effective date. More on that later.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Ahlers Cressman & Sleight PLLC Recognized Among The Top 50 Construction Law Firms by Construction Executive
June 20, 2022 —
Scott R. Sleight - Ahlers Cressman & Sleight PLLCACS is proud to announce it has once again been ranked among The Top 50 Construction Law FirmsTM in the Construction Executive 2022 rankings. ACS is the highest ranked law firm in the US practicing out of a single office.
ACS specializes in delivering the highest quality construction law services. ACS prides itself on providing excellent services to clients in matters relating to contract documents, construction dispute resolution, and government contracts. If resolution efforts fail, ACS has the experience and ability to represent clients in high-stakes litigation. Since 2018, ACS has obtained three significant jury verdicts in favor of its general contractor clients, including awards of prevailing party attorneys’ fees and costs and expenses.
Founded in 2007, ACS’ vast knowledge and industry experience led our lawyers to hold many leadership positions. Three of our lawyers are past chairs of the Washington State Bar Association’s Construction Law Section, five of our lawyers have served as the Chair of the Associated General Contractors of Washington’s Legal Affairs Committee, and many of our lawyers are recognized as Super Lawyers and Rising Stars in Super Lawyers Magazine/Thomson Reuters. We have represented construction firms before the Supreme Court and the Court of Appeals in numerous precedent-setting cases, and have testified before the Legislature. ACS’ commitment to the construction industry shows in our results.
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Scott R. Sleight, Ahlers Cressman & Sleight PLLCMr. Sleight may be contacted at
scott.sleight@acslawyers.com
New York’s Second Department Holds That Carrier Must Pay Judgment Obtained by Plaintiff as Carrier Did Not Meet Burden to Prove Willful Non-Cooperation
November 23, 2020 —
Craig Rokuson - Traub LiebermanIn the recent case of DeLuca v. RLI Insurance Company, 2020 WL 5931054 (October 7, 2020), the Supreme Court, Appellate Division, Second Department held that RLI had a duty to pay a judgment obtained by an underlying plaintiff against RLI’s insured, MLSC. The underlying plaintiff brought the action directly against the carrier after obtaining a judgment against MLSC, and when the judgment remained unsatisfied, serving RLI with the judgment. As an initial matter, the court found that the direct action by the plaintiff was proper under New York Insurance Law 3420(a), which allows for an injured plaintiff to maintain a direct action against a carrier if a judgment against that carrier’s insured remains unsatisfied for a period of 30 days and the carrier is served with that judgment. In that event, the plaintiff steps into the shoes of the insured and is entitled to the rights of the insured (and is also subject to the carrier’s coverage defenses).
Reprinted courtesy of
Craig Rokuson, Traub Lieberman
Mr. Rokuson may be contacted at crokuson@tlsslaw.com
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Cooperating With Your Insurance Carrier: Is It a Must?
January 02, 2024 —
Susana Arce - Saxe Doernberger & Vita, P.C.A majority of insurance policies require the insured to cooperate with the insurer. The cooperation clause generally states, “the insured agrees to Cooperate with us in the investigation, settlement or defense of the suit.”
The “cooperation clause” is often an afterthought because once litigation has ensued an insured is focused on other important considerations. However, insureds should not forget that complying with the cooperation clause can make the difference between the insurer covering or denying a claim.
The Cooperation Clause in Action
The Court in
HDI Glob. Specialty SE v. PF Holdings, LLC,1 highlighted the importance of cooperating with an insurance carrier. In the underlying litigation, residents of an apartment complex sued four entities, all insured by the same insurance policy: two were named insureds and two were additional insureds. The primary insurer provided a defense for the named insureds.
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Susana Arce, Saxe Doernberger & Vita, P.C.Ms. Arce may be contacted at
SArce@sdvlaw.com
Mexico's Richest Man Carlos Slim to Rebuild Collapsed Subway Line
November 01, 2021 —
The Associated Press - BloombergMexico City (AP) -- Mexico’s richest man reached an agreement with Mexico City authorities Wednesday to rebuild or reinforce an elevated subway line that collapsed in May, killing 26 people.
Telecom and construction magnate Carlos Slim said his Grupo Carso’s construction subsidiary would pay the cost of rebuilding the span that collapsed, and reinforcing other parts of the elevated line to meet higher standards in a city plagued with severe earthquakes.
Grupo Carso said in a statement to the country’s stock market that the outlay did not constitute any admission of responsibility for the collapse, and would not “materially affect” the company’s business.
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Bloomberg
Forecast Sunny for Solar Contractors in California
June 06, 2018 —
Amy Pierce - Gravel2Gavel Construction & Real Estate Law BlogOn May 9, the California Energy Commission announced that it has “adopted building standards that require solar photovoltaic systems starting in 2020.” The 2019 Building Energy Efficiency Standards are expected to “reduce greenhouse gas emissions by an amount equivalent to taking 115,000 fossil fuel cars off the road.” California will be the first in the nation to require solar. The new standards take effect on January 1, 2020.
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Amy L. Pierce, Pillsbury Winthrop Shaw Pittman LLPMs. Pierce may be contacted at
amy.pierce@pillsburylaw.com