New England Construction Defect Law Groups to Combine
November 13, 2013 —
CDJ STAFFThe lawyers of Little Bulman Medeiros & Whitney PC will be joining Pierce Atwood on December 9, 2013. The combined firm will have a larger construction litigation practice. Little Bulman is already recognized for its handling of construction disputes. Pierce Atwood is one of the largest firms in New England. Their combined forces intended to create a strong presence in construction litigation throughout New England.
Gloria Pinza, a managing partner at Pierce Atwood said of Little Bulman that “their exceptional credentials in the construction law area will combine with our strong construction practice to create a regional practice that will provide highly competitive expertise, depth and value throughout New England and beyond.
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A Bill for an Act Concerning Workers’ Compensation – 2014 Edition
January 13, 2014 —
W. Berkeley Mann, Esq. - Higgins, Hopkins, McLain & Roswell, LLCWorkers’ compensation (“WC”) costs are a significant portion of the labor costs experienced by construction companies. These costs have typically risen over time due to the “experience modification factor.” This term means the amortized cost of past claims recovered through future premiums charged by an insurer to an employer. As a company’s claims go up in both number of claims and total expense of claims over time, the experience modifier increases as a multiplier of the base WC premium. As with other general medical costs, the question is not whether the cost of claims with a medical component will go up, but rather the rate at which they will increase from year to year.
It is with these facts of life in mind that it is reported that the Colorado legislature will take up a bill concerning WC benefits in the 2014 session. This bill, if passed, will have the likely effect of dramatically increasing the cost of WC claims to the construction industry - along with all other Colorado employers.
The draft bill has three distinct changes for the current law, each of which serves to change the delicate balance of rights and obligations of employers and employees under existing law.
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W. Berkeley Mann, Esq.W. Berkeley Mann, Esq. can be contacted at
mann@hhmrlaw.com
You Don’t Have To Be a Consumer to Assert a FDUTPA Claim
February 22, 2018 —
David Adelstein – Florida Construction Legal UpdatesA few years ago, the Fourth District Court of Florida rendered an opinion in
Caribbean Cruise Line, Inc. v. Better Business Bureau of Palm Beach County, Inc., 169 So.3d 164 (Fla. 4th DCA 2015) regarding
Florida’s Deceptive and Unfair Trade Practices Act (referred as to “FDUTPA”) (Florida Statute s. 501.201et seq.).
This case held that a party can assert a FDUTPA claim even though the party is NOT a consumer. The party still has to prove there was an injury to consumers in filing such claim, but again, the party can bring the claim even though it is NOT a consumer. Caribbean Cruise Line, 169 So.3d at 169 (“[W]hile the claimant would have to prove that there was an injury or detriment to consumers in order to satisfy all of the elements of a FDUTPA claim, the claimant does not have to be a consumer to bring the claim.”).
See also Cemex Construction Materials Florida, LLC v. Armstrong World Industries, Inc., 2018 WL 905752, *15 (M.D.Fla 2018) (relying on
Caribbean Cruise Line to find that even though the plaintiff does not need to be a consumer, the plaintiff still must prove an injury to consumers to satisfy elements of a FDUTPA claim).
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Product Defect Allegations Trigger Duty To Defend in Pennsylvania
August 31, 2020 —
Stacy M. Manobianca - Saxe Doernberger & VitaThe Third Circuit Court of Appeals recently concluded, in Nautilus Insurance Co. v. 200 Christian Street Partners, LLC., that a duty to defend is triggered when product-related allegations are pled in connection with a claim for defective construction.
In Nautilus, the coverage dispute arose out of two independent underlying lawsuits in which homeowners alleged that the homes built by 200 Christian Street Partners (“Christian Street”) were defectively constructed. Christian Street tendered the claim to its insurer, Nautilus Insurance Co. (“Nautilus”), for defense and indemnity.1
Nautilus filed a lawsuit in the United States District Court for the Eastern District of Pennsylvania, seeking a declaration that it was not obligated to defend Christian Street in the underlying actions.2 Specifically, Nautilus asserted that it was not required to provide a defense in the underlying actions because Pennsylvania law does not consider faulty workmanship to constitute an “occurrence” and, therefore, to trigger the policy’s insuring agreement and the insurer’s duty to defend.3
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Stacy M. Manobianca, Saxe Doernberger & VitaMs. Manobianca may be contacted at
smm@sdvlaw.com
Library to Open with Roof Defect Lawsuit Pending
December 04, 2013 —
CDJ STAFFRepairs to the Medina County District Library in Lodi, Ohio should be complete next spring. The library’s lawsuit over the roof is just beginning. The library building was a $3 million project in 2005, but the building had to close in 2011 when it was determined that the roof was not structurally sound.
The lawsuit names six defendants, including the contractor, the framing subcontractor, and the engineering firm. The library seeking damages, legal expenses, and attorney fees. The cost of replacing the roof was $1.5 million.
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Not All Work is Covered Under the Federal Miller Act
May 24, 2021 —
David Adelstein - Florida Construction Legal UpdatesThe recent opinion out of the Eastern District Court of Virginia, Dickson v. Forney Enterprises, Inc., 2021 WL 1536574 (E.D.Virginia 2021), demonstrates that the federal Miller Act is not designed to protect ALL that perform work on a federal construction project. This is because NOT ALL work is covered under the Miller Act.
In this case, a professional engineer was subcontracted by a prime contractor to serve on site in a project management / superintendent capacity. The prime contractor’s scope of work was completed by January 31, 2019. However, the prime contractor was still required to inventory certain materials on site, which was performed by the engineer. The engineer claimed it was owed in excess of $400,000 and filed a Miller Act payment bond lawsuit on February 5, 2020 (more than a year after the project was completed).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Ensuring Efficient Arbitration of Construction Disputes Involving Mechanic’s Liens
February 18, 2020 —
Robert G. Campbell & Trevor B. Potter - Construction ExecutiveThere may be tension between the enforcement of statutory mechanic’s lien claims when a contractual dispute resolution provision calls for arbitration. Once the parties are in arbitration, it may not be clear whether the arbitrator has authority to make factual determinations regarding amount and validity of mechanic’s liens, and whether courts are bound by these determinations. This uncertainty stems from the fact that in most states a mechanic’s lien can only be enforced by a court of competent jurisdiction. Indeed, many mechanic’s liens statutes define foreclosure as a “judicial process,” and courts generally have exclusive jurisdiction to issue orders foreclosing on real property1.
The risk for contractors and owners is that they will spend time and money re-litigating factual issues related to proving elements of a mechanic’s lien claim, including the proper lien amount, timeliness and other prerequisites. Without a clear understanding of what issues and elements are arbitrable, the parties run the risk that an arbitrator will rule on certain elements only to find out during post-arbitration lien foreclosure proceedings that the arbitrator lacked authority to make determinations on those elements. Questions therefore arise whether a court will enforce the arbitrator’s determinations and whether the parties must relitigate mechanic’s lien issues creating a further risk of inconsistent rulings.
These risks can be minimized through arbitration provisions which address these issues, express requests in arbitration demands and by ensuring that arbitration awards contain explicit determinations of mechanic’s liens issues.
Reprinted courtesy of
Robert G. Campbell & Trevor B. Potter, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Potter may be contacted at tpotter@coxcastle.com
Mr. Campbell may be contacted at rcampbell@coxcastle.com
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Read Before You Sign: Claim Waivers in Project Documents
July 06, 2020 —
William E. Underwood - ConsensusDocsNot all claim waivers are appropriately titled “Waiver of Claims.” In fact, claim waivers can be found “hiding” without any advertisement or fanfare in a number of project documents, including change orders and applications for payment. So although getting work quickly approved and paid for is important, taking time to read the specific language in your project documents is just as important. Failure to pay close attention to this language could result in the waiver of key, unresolved project claims.
Further, and although it should go without saying, it is also just as important to read all of the terms of your contract. Important waiver language might not exist on the face of form project documents, but rather might be contained in the general and/or supplemental conditions of your contract and automatically incorporated into your form project documents. And these types of incorporated waivers can be just as enforceable.
So it is critically important to understand what you are signing and the implications it might have on future claims. This article will explore some of the common types of claim waivers that can be found in project documents so that you are better positioned to avoid inadvertently waiving claims in the future.
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William E. Underwood, Jones Walker LLPMr. Underwood may be contacted at
wunderwood@joneswalker.com