Storm Breaches California River's Levee, Thousands Evacuate
March 20, 2023 —
Associated Press - Engineering News-RecordWATSONVILLE, Calif. (AP) — A Northern California agricultural community famous for its strawberry crop was forced to evacuate early Saturday after the Pajaro River’s levee was breached by flooding from a new atmospheric river that pummeled the state.
Across the Central Coast's Monterey County , more than 8,500 people were under evacuation orders and warnings Saturday, including roughly 1,700 residents — many of them Latino farmworkers — from the unincorporated community of Pajaro.
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Engineering News-Record
ENR may be contacted at enr@enr.com
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Policy Reformed to Add New Building Owner as Additional Insured
July 10, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe lower court correctly reformed the policy to replace the prior owner with the new owner as an additional insured under the policy. Wesco Ins. Co. v. Fulmont Mut. Ins. Co., 2023 N.Y. App. Div. LEXIS 2650 (N. Y. App. Div. May 11, 2023).
Beyond was sued as owner of the building in a personal injury lawsuit. The former owners leased the building to the tenant who included the then-owners as additional insureds under the tenant's policy. When the deed to the building was transferred to Beyond, the additional insured endorsement in the tenant's policy was not updated to reflect the change in ownership.
Beyond's insurer, Wesco, tendered the lawsuit to the tenant's insurer, Fulmont. Coverage was denied because Beyond was not an additional insured under the tenant's policy.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
TOP TAKE-AWAY SERIES: The 2023 Fall Meeting in Washington, D.C.
November 13, 2023 —
Marissa L. Downs & Jennifer M. Kanady - The Dispute ResolverOver 500 construction lawyers, experts, and consultants descended on Washington last week for the Forum’s 2023 Fall Meeting. Newly minted Forum Chair John Cook and Program Coordinators Catherine Delorey and Brian Zimmerman put together a stellar program focused on navigating government construction. For this installation of the post-meeting post, I'm teaming up with guest contributor, Jennifer Kanady, to bring you 10 of our top take-aways from this unique program.
10. Contracting with the government is replete with risk that could easily trap the unwary. Nobody likes to be taken advantage of. But hell hath no fury like the U.S. Government scorned. Erin Cannon-Wells and Aaron Silberman, gave a (truly) delightful, Indiana-Jones-inspired presentation on the regulations that can doom the unwitting contractor who is less than perfectly forthright in its dealings. The government has created financial incentives for members of the public to report your company’s violations as part of a qui tam action. When you consider the number of potential whistleblowers in the bidding process and the contracting chain, a qui tam action would seem more likely than not. Add to that the sanctions contractors might face for even innocent errors either by their own companies or their downstream subs, and government contracting begins to sound increasingly like the Temple of Doom. Oh, and in case you were only focused on affirmative claims, beware the “reverse false claim” which is concealing information that would rightfully entitle the government to a credit…
Reprinted courtesy of
Marissa L. Downs, Laurie & Brennan, LLP and
Jennifer M. Kanady, FAC Services, LLC
Ms. Downs may be contacted at mdowns@lauriebrennan.com
Ms. Kanady may be contacted at JKanady@facfin.com
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Michigan Court Waives Goodbye to Subrogation Claims, Except as to Gross Negligence
March 13, 2023 —
Lian Skaf - The Subrogation StrategistIn Ace American Insurance Company, et. al. v. Toledo Engineering Co., Inc., et. al., No. 18-11503, 2023 U.S. Dist. LEXIS 15222 (Ace American), the United States District Court for the Eastern District of Michigan determined whether insurers could pursue their subrogation claims against the defendants despite a waiver of subrogation in each of the contracts the insured had with the respective defendants. Based on the language of the contracts and the circumstances leading up to the loss, the court held that the insurers could not pursue their subrogation claims – other than their claims for gross negligence – due to waivers of subrogation in the applicable contracts.
In Ace American, the insured, Guardian Industries, LLC (Guardian), retained Toledo Engineer Co., Inc. (TECO) and Dreicor, Inc. (Dreicor) to renovate a glass furnace in the insured’s glass manufacturing plant. Guardian and TECO entered into a contract on December 6, 2016. Guardian and Dreicor entered into a contract on September 29, 2013, that the parties later updated on June 3, 2016. Both defendants began work on the project in the spring of 2017 and were finished with the portion of the work known as the “Cold Tank Repair” prior to the loss.
On June 3, 2017, there was an explosion and fire at the plant that caused significant property damage. The plaintiff insurers (Plaintiffs) made payments in the amount of $80 million and became subrogated to its insured’s rights. Plaintiffs then initiated this action.
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Lian Skaf, White and Williams LLPMr. Skaf may be contacted at
skafl@whiteandwilliams.com
Banks Rejected by U.S. High Court on Mortgage Securities Suits
January 12, 2015 —
Greg Stohr – BloombergThe U.S. Supreme Court dealt a blow to Royal Bank of Scotland Group Plc and Nomura Holdings Inc. (8604), refusing to derail federal government lawsuits that seek billions of dollars over the sale of risky mortgage-backed securities.
The justices today turned away an appeal by four banks, including units of RBS and Nomura, in a case stemming from the collapse of two credit unions that owned more than $1.7 billion in those securities.
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Greg Stohr, BloombergMr. Stohr may be contacted at
gstohr@bloomberg.net
Seven Former North San Diego County Landfills are Leaking Contaminants
April 07, 2011 —
Beverley BevenFlorez CDJ STAFFDeborah Sullivan Brennan of the North County Times reported that seven former dumps in San Diego are leaking contaminants into the surrounding groundwater. John R. Odermatt, a senior engineering geologist for the California Regional Water Quality Control Board s San Diego region, told the North County Times, “the risk to most county residents is very small or negligible, while local water supplies located in more rural areas may be at a somewhat elevated but unquantified level of risk.”
This issue is causing heavy scrutiny of a new proposed landfill in Gregory Canyon. The landfill would be located on 308 acres of undeveloped land near Pala, alongside the San Luis Rey River. The group “Save Gregory Canyon” has been speaking out against the landfill, stating that “the project threatens major detrimental impacts to both surface and groundwater, as well as a potential compromise of the two major San Diego Water Authority pipelines nearby.” Richard Felago, a Gregory Canyon Ltd. Consultant, told the North County Times that the 8-foot-thick liner, composed of layers of gravel and synthetic material, would not leak.
The appeal hearing is being rescheduled later this month after one of the three panelists recused himself due to having a competing interest in the property, according to the article by Gary Warth in the North County Times.
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Traub Lieberman Partner Colleen Hastie Wins Summary Judgment in Favor of Sub-Contracted Electrical Company
February 14, 2023 —
Colleen E. Hastie - Traub LiebermanIn a case brought before the New York State Supreme Court, Kings County, Plaintiff alleged injury while performing work at a commercial premises in Brooklyn when he rolled his ankle on a jackhammered/chopped cellar floor slab while carrying a metal pipe from the main floor to the cellar on the subject premises. The property was owned by New York City entities, who were listed as Defendants in the underlying suit. A Construction Company was hired as the general contractor and construction manager for the work, who hired the Electrical Contractor to perform the main electrical fit out for the subject premises. The Electrical Contractor then hired Traub Lieberman’s client, the Electrical Subcontractor, to work on cellar-level conduit, cabling, backboxes, and lighting control systems. The Electrical Contractor, as Second Third-Party Plaintiff, brought suit against the Electrical Subcontractor, as Second Third-Party Defendant, for damages related to the underlying suit.
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Colleen E. Hastie, Traub LiebermanMs. Hastie may be contacted at
chastie@tlsslaw.com
Another Reminder to ALWAYS Show up for Court
July 20, 2020 —
Christopher G. Hill - Construction Law MusingsI have discussed the need to always respond to a lawsuit on multiple occasions here at Construction Law Musings. However, I keep reading cases where the defendant fails to appear either by pleading or in person. Such action is never a good idea as demonstrated once again in the case of Balfour Beatty Infrastructure, Inc. v. Precision Constr. & Mgmt. Group, LLC, a case out of the Eastern District of Virginia.
The basic facts are not a surprise and are taken from the magistrates report that was adopted by the District Court. Balfour Beatty and Precision entered into a subcontract for some electrical work at a project located in Loudoun County. The subcontract included an attorney fees provision and provided for liquidated damages for late performance and the typical damages for default. The project began in July of 2016 with substantial completion July 5, 2018. Precision failed to supply sufficient manpower and sent a letter to Precision stating the same. After an agreement between the parties regarding supplementation by Balfour Beatty and to the accompanying back charge, Balfour Beatty informed Precision by letter that it would be liable for any liquidated damages. The Owner began assessing liquidated damages and Balfour Beatty subsequently terminated the subcontract and discovered defective work by Precision.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com