Colorado Finally Corrects Thirty-Year Old Flaw in Construction Defect Statute of Repose
March 29, 2017 —
Jesse Howard Witt - The Witt Law FirmThe Colorado Supreme Court has finally settled a decades-old conundrum surrounding the state’s construction defect statute of repose.
A statute of repose is similar to a statute of limitations insofar as both restrict the time a party can bring a claim. A statute of repose period begins on a fixed date (such as the day someone finishes work on a project), while a statute of limitations period begins when someone discovers an injury (such as a defectively installed window).
In 1986, at the height of the so-called “tort reform” movement, the Colorado General Assembly voted to shorten both the statute of repose and the statute of limitations for construction defect claims. Historically, Colorado’s statute of repose had given a homeowner ten years following construction to file an action, and its statute of limitations had required that any such action be filed within three years of the date that the claimant discovered a defect. After 1986, however, these time periods changed; the new statute of repose required suits to be filed within six years of the end of construction, and the new statute of limitations gave claimants only two years following discovery of the physical manifestation of a defect to seek legal relief.[1]
Reprinted courtesy of
Jesse Howard Witt, Acerbic Witt
Mr. Witt may be contacted at www.witt.law
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Partner Lisa M. Rolle and Associate Vito John Marzano Obtain Dismissal of Third-Party Indemnification Claims
December 22, 2019 —
Lisa M. Rolle & Vito John Marzano - Traub Lieberman PerspectivesOn June 1, 2019, Traub Lieberman partner Lisa M. Rolle and associate Vito John Marzano successfully secured dismissal of all third-party claims on behalf of a corporate entity and its principal in a third-party action in the New York State Supreme Court, County of Bronx. The underlying action concerned a trip and fall that occurred on a public sidewalk located in the Bronx. Plaintiff commenced suit against the corporation property owner and its principal. Defendants/third-party plaintiffs commenced the third-party action seeking contractual and common-law indemnification against three third-party defendants, the corporate tenant, another corporate entity that was not a party to the lease and its principal. Traub Lieberman represented the latter two third-party defendants.
On behalf of the corporate entity that was not a party to the lease, Traub Lieberman moved for dismissal on the basis that the lease constitutes documentary evidence establishing as a matter of law that the non-tenant corporation cannot be held liable to third-party plaintiffs. On behalf of the principal, Traub Lieberman sought dismissal for failure to state a cause of action because the principal was shielded from liability by virtue of having incorporated his business, and the complaint did not allege a claim for piercing the corporate veil.
In opposition, third-party plaintiffs sought to amplify their pleadings by alleging that a de facto merger had occurred between the non-tenant corporation and the tenant corporation. Third-party plaintiffs further argued that the corporate principal executed a guaranty to the lease, thus accepting liability on behalf of the tenant corporation.
Reprinted courtesy of
Lisa M. Rolle, Traub Lieberman and
Vito John Marzano, Traub Lieberman
Ms. Rolle may be contacted at lrolle@tlsslaw.com
Mr. Marzano may be contacted at vmarzano@tlsslaw.com
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California Limits Indemnification Obligations of Design Professionals
August 24, 2017 —
William L. Doerler - White and Williams LLPThe California legislature recently enacted legislation – SB 496 – limiting a design professional’s indemnification obligations in private contracts related to design services. The term “design professional” refers to licensed architects, landscape architects and professional land surveyors, and registered professional engineers. As revised, Cal. Civ. Code § 2782.8 states that, for all contracts entered into on or after January 1, 2018 for design professional services, all provisions that purport to have the design professional indemnify the indemnitee for claims against the indemnitee – or require the design professional to provide a defense to the indemnitee – are unenforceable except to the extent that the claims against the indemnitee arise out of, or relate to, the negligence, recklessness or willful misconduct of the design professional. In addition, as revised, § 2782.8 limits a design professional’s liability for the cost of defense to the design professional’s percentage of fault.
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William L. Doerler, White and Williams LLPMr. Doerler may be contacted at
doerlerw@whiteandwilliams.com
Colorado General Assembly Sets Forth Prerequisites for an Insurance Company to Use Failure to Cooperate as a Defense to a Claim for First Party Insurance Benefits
August 10, 2020 —
Christine Kroupa, John Palmeri & Katelyn Werner - Gordon & ReesDespite first party insurance policies generally requiring cooperation from an insured in the investigation of a claim, insurers can no longer rely on the failure to cooperate as a defense in a claim for first party insurance benefits in Colorado unless certain conditions are met.
The Bill:
On July 2, 2020, Colorado Governor Jared S. Polis signed House Bill 20-1290 which addresses the ability of an insurer to use a failure to cooperate defense in an action where the insured has made a claim for benefits under an insurance policy. This bill bars an insurer from raising the failure to cooperate unless the following conditions are met:
- The insurer submitted a written request to the insured or the insured’s representative for the information (via electronic means if consent was given by insured or insured’s representative, or via certified mail);
- The information is not available to the insurer without the assistance of the insured;
- The written request provides the insured 60 days to respond;
- The written request is for information a reasonable person would determine the insurer needs to adjust the claim filed by the insured or to prevent fraud; and
- The insurer gives the insured an opportunity to cure, which must:
- Provide written notice to the insured of the alleged failure to cooperate, describing with particularity the alleged failure within 60 days after the alleged failure; and
- Allow the insured 60 days after receipt of the written notice to cure the alleged failure to cooperate.
Reprinted courtesy of Gordon & Rees attorneys
Christine Kroupa,
John Palmeri and
Katelyn Werner
Ms. Kroupa may be contacted at ckroupa@grsm.com
Mr. Palmeri may be contacted at jpalmeri@grsm.com
Ms. Werner may be contacted at kwerner@grsm.com
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New York Public Library’s “Most Comprehensive Renovation” In Its History
May 13, 2014 —
Beverley BevenFlorez-CDJ STAFFManhattan’s New York Public Library’s renovation plans have been revised after being “the subject of at least three lawsuits and repeated protests by academics, activists, writers and historians,” according to Construction Digital. The previous $300 million plan by Foster & Partners would have required the circulation collections to be relocated during the renovation process. Now, that plan has been abandoned for one that New York Public Library President Anthony Marx calls “the most comprehensive renovation in its history.”
“Instead of removing the central stacks and placing the Mid-Manhattan Library in that space, we are proposing to renovate Mid-Manhattan Library at its current site,” Marx told Construction Digital. “This renovation will add much-needed computer labs and an adult education center, and an inspiring, comfortable space for browsing our largest circulating collection.”
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San Francisco Airport’s Terminal 1 Aims Sky High
January 06, 2020 —
Aileen Cho - Engineering News-RecordEach night, a prancing robotic dog roves the site of Terminal 1 at San Francisco International Airport (SFO), taking photographs of construction on the new terminal, which replaces a 1960s-era building with nearly 900,000 sq ft of state-of-the-art space. The $2.6-billion Harvey Milk terminal is the highlight of a $7.2-billion capital plan. “We are about halfway through,” says Geoff Neumayr, chief development officer for SFO. The program includes a 3,600-space parking garage, a consolidated office campus, a new hotel, a waste treatment plant, improvements to Terminal 2 and the international terminal, and a new on-airport train station. This summer the first nine gates opened at Terminal 1, with nine more slated to open next year and a completion date of 2023 with 25 total gates, including two that will accommodate Airbus A380s double-decker planes.
Aileen Cho, Engineering News-Record
Ms. Cho may be contacted at choa@enr.com
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Benefit of the Coblentz Agreement and Consent Judgment
August 26, 2024 —
David Adelstein - Florida Construction Legal UpdatesIf you are not familiar with the concept of what is commonly known as a Coblentz agreement relative to an insurance coverage dispute, review these prior postings (
here and
here and
here). This is a good-to-know agreement if you are a claimant and need to consider an avenue of collection if the insured’s carrier denies coverage out of the gate (meaning the carrier has denied both the duty to defend and the duty to indemnify).
A recent Eleventh Circuit Court of Appeals opinion demonstrates the Coblentz agreement concept. In Barrs v. Auto-Owners Ins. Co., 2024 WL 3673089 (11th Cir. 2024), an owner asserted a construction defect claim against its contractor. The owner hired the contractor to deconstruct a building and the contractor hired a demolition subcontractor. The owner noticed work was not being performed and materials (e.g., lumber) were missing; the demolition subcontractor had stolen materials. The subcontractor was terminated, and the owner claimed the contractor’s negligence allowed the theft and delayed his project. The contractor’s commercial general liability (CGL) insurer notified the insured-contractor that coverage did not exist and refused to defend the contractor. The owner sued the contractor under various theories of liability. The owner and contractor entered into a settlement agreement (i.e., the Coblentz agreement) where the contractor “admitted liability in the amount of $557,500.00….A consent judgment was entered against [the contractor] that closely tracked the settlement agreement but did not indicate which portion of the damages award was attributed to which claims. The agreement also assigned [owner] and all of [the contractor’s] rights to claim coverage and to recover available funds under [the contractor’s CGL policy].”
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Corps Proposes $4.6B Plan to Steel Miami for Storm Surge
June 22, 2020 —
Pam Radtke Russell - Engineering News-RecordA $4.6-billion U.S. Army Corps of Engineers proposal to protect Miami from future storm surge, largely by building massive sea walls and elevating infrastructure systems, is the latest of such plans the agency has developed for East Coast communities.
Pam Radtke Russell, Engineering News-Record
Ms. Russell may be contacted at Russellp@bnpmedia.com
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