Five-Year Statute of Limitations on Performance-Type Surety Bonds
December 01, 2017 —
David Adelstein - Florida Construction Legal UpdatesThe statute of limitations on a claim against a performance-type bond is 5 years from the breach of the bond, i.e., the bond-principal’s default (based on the same statute of limitations that governs written contracts / obligations). See Fla. Stat. s. 95.11(2)(b). This 5-year statute of limitations is NOT extended and does NOT commence when the surety denies the claim. It commences upon the default of the bond-principal, which would be the act constituting the breach of the bond. This does not mean that the statute of limitations starts when a latent defect is discovered. This is not the case. In dealing with a completed project, the five-year statute of limitations would run when the obligee (beneficiary of the bond) accepted the work. See Federal Insurance Co. v. Southwest Florida Retirement Center, Inc., 707 So.2d 1119, 1121-22 (Fla. 1998).
This 5-year statute of limitations on performance-type surety bonds has recently been explained by the Second District in Lexicon Ins. Co. v. City of Cape Coral, Florida, 42 Fla. L. Weekly D2521a (Fla. 2d DCA 2017), a case where a developer planned on developing a single-family subdivision.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Not Our Territory: 11th Circuit Dismisses Hurricane Damage Appraisal Order for Lack of Jurisdiction
July 24, 2023 —
Veronica P. Adams & Koorosh Talieh - Hunton Insurance Recovery BlogThe hurdles policyholders have faced with the appraisal process in Florida are far from over. In the past, many Florida courts have limited the scope for appraisal, strictly construing the policy provision against the policyholder. Yet, recently, in
Positano Place at Naples I Condominium Association, Inc., et al. v. Empire Indemnity Insurance Company, the Eleventh Circuit dismissed an insurer’s appeal of the district court’s ruling compelling appraisal and a stay of a pending litigation.
In Positano Place at Naples I Condominium Association, Inc., et al. v. Empire Indemnity Insurance Company, the policyholder Positano filed a claim for property insurance benefits under the policy as a result of damage to the property from Hurricane Irma in 2017. After investigating the claim, Empire found that there was damage to only three of the five properties covered under the policy and disputed the amount of loss.
Reprinted courtesy of
Veronica P. Adams, Hunton Andrews Kurth and
Koorosh Talieh, Hunton Andrews Kurth
Ms. Adams may be contacted at vadams@HuntonAK.com
Mr. Talieh may be contacted at ktalieh@HuntonAK.com
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L.A. Mixes Grit With Glitz in Downtown Revamp: Cities
May 13, 2014 —
James Nash and Nadja Brandt – BloombergNear streets so gritty they were used as the backdrop for a shootout in the next “Fast & Furious” movie, million-dollar condos and $38 racks of lamb beckon the urban pioneers of Los Angeles.
The rehab of warehouses and factories in the Arts District is the latest wave in a revival transforming the core of the second-largest U.S. city. Since 2011, about $7 billion has been poured into downtown. A decade ago its most prominent residents were the homeless. Now condos sell for a median of $523.36 a square foot -- more than in Beverly Hills. Alma, Bon Appetit magazine’s best new U.S. restaurant in 2013, is a few blocks from the convention center the city plans to renovate.
“All of a sudden, overnight, you have more cranes going up in downtown L.A. than any other neighborhood in Southern California, by far,” said Lew Horne, head of the regional CBRE Real Estate Group Inc. (CBG) office.
Mr. Nash may be contacted at jnash24@bloomberg.net; Ms. Brandt may be contacted at nbrandt@bloomberg.net
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James Nash and Nadja Brandt, Bloomberg
Ahead of the Storm: Preparing for Dorian
September 16, 2019 —
Adam P. Handfinger, Stephen H. Reisman & Gary M. Stein - Peckar & Abramson, P.C.While Hurricane Dorian churns in the Atlantic with its sights currently set on the east coast of Florida, storm preparations should be well underway. As you are busy organizing efforts to secure your job sites, we at Peckar & Abramson offer some quick reminders that may prove helpful:
- Review your contracts, particularly the force majeure provisions, and be sure to comply with applicable notice requirements
- Even if not expressly required at this time, consider providing written notice to project owners that their projects are being prepared for a potential hurricane or tropical storm and that the productivity and progress of the work will be affected, with the actual time and cost impact to be determined after the event.
- Consult your hurricane plan (which is often a contract exhibit) and confirm compliance with all specified safety, security and protection measures.
- Provide written notice to your subcontractors and suppliers of the actions they are required to take to secure and protect their portions of the work and the timetable for completion of their storm preparations.
Reprinted courtesy of Peckar & Abramson, PC attorneys
Adam P. Handfinger,
Stephen H. Reisman and
Gary M. Stein
Mr. Handfinger may be contacted at ahandfinger@pecklaw.com
Mr. Reisman may be contacted at sreisman@pecklaw.com
Mr. Stein may be contacted at gstein@pecklaw.com
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Appeals Court Affirms Civil Engineer Owes No Duty of Care to General Contractor
August 20, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Shareholder Karen Holmes and Law Clerk Justin Reid of Balestreri Potocki & Holmes, in Atlas-Allied v. SD Community College District, the California Court of Appeal “confirmed that a civil engineer owes no duty of care to the General Contractor absent privity of contract.” The Appellate court considered Beacon Residential Community Association v. Skidmore, Owings & Merrill LLP to reach that conclusion.
Holmes and Reid commented that the Atlas-Allied decision “can assist in clarifying the extent liability is owed when no contract exists. Here, while unpublished, the 4th District clearly refused to extend a duty by the civil engineer to the general contractor on a public works project, giving counsel guidance on the application of Beacon and prior decisions on design professionals’ liability.”
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Guidance for Construction Leaders: How Is the Americans With Disabilities Act Applied During the Pandemic?
September 28, 2020 —
Molly Gwin - Construction ExecutiveWith the spread of the COVID-19 pandemic, numerous cities and states have mandated infection control practices, including social distancing, mask requirements and sanitization of work areas and tools. As a result, many construction leaders now have questions as to how government guidance related to COVID-19 interacts with the Americans with Disabilities Act (ADA). For example, can a project manager enforce a mask mandate when a construction worker presents a doctor’s excuse noting breathing difficulties? Or, what if the employer is aware that an individual presents a higher risk for severe illness because of an underlying health condition, but that employee does not request an accommodation?
Thankfully, the United States Equal Employment Opportunity Commission (EEOC) recently published guidance relating to these requests that construction leaders can reference. While our goal is to summarize that guidance and provide practical advice for the construction sector, this article does not substitute for situation specific legal counsel.
SCENARIO 1: AN EMPLOYEE REFUSES TO WEAR A MASK AND PRODUCES A DOCTOR’S NOTE CITING BREATHING DIFFICULTIES. MUST THE EMPLOYER ACCOMMODATE SUCH A REQUEST?
Potentially. Since the request to not wear a mask is considered an accommodation under the ADA, the employer can still require a doctor’s note when considering the accommodation.
Reprinted courtesy of
Molly Gwin, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Ms. Gwin may be contacted at
mgwin@isaacwiles.com
Third Circuit Holds No Coverage for Faulty Workmanship Despite Insured’s Expectations
November 21, 2018 —
Brian Margolies - TLSS Insurance Law BlogIn its recent decision in Frederick Mut. Ins. Co. v. Hall, 2018 U.S. App. LEXIS 31666 (3d Cir. Nov. 8, 2018), the United States Court of Appeals for the Third Circuit had occasion to consider Pennsylvania’s doctrine of reasonable expectations in the context of a faulty workmanship claim.
Hallstone procured a general liability policy from Frederick Mutual to insure its masonry operations. Notably, when purchasing the policy through an insurance broker, Hallstone’s principal stated that he wanted the “maximum” “soup to nuts” coverage for his company. Hallstone was later sued by a customer for alleged defects in its masonry work. While Frederick agreed to provide a defense, it also commenced a lawsuit seeking a judicial declaration that its policy excluded coverage for faulty workmanship. The district court agreed that the business risk exclusions applied, but nevertheless found in favor of Hallstone based on the argument that Hallstone had a reasonable expectation that when applying for an insurance policy affording “soup to nuts” coverage, it this would include coverage for faulty workmanship claims.
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Brian Margolies, Traub Lieberman Straus & Shrewsberry LLPMr. Margolies may be contacted at
bmargolies@tlsslaw.com
NTSB Sheds Light on Fatal Baltimore Work Zone Crash
April 25, 2023 —
Justin Rice - Engineering News-RecordThe National Transportation Safety Board recently released conclusions of a preliminary investigation into a March 22
crash that killed six construction workers when an errant car sped through a work zone along the Interstate-695 Beltway in Baltimore.
Reprinted courtesy of
Justin Rice, Engineering News-Record
Mr. Rice may be contacted at ricej@enr.com
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