Attorney’s Fees Entitlement And Application Under Subcontract Default Provision
May 06, 2019 —
David Adelstein - Florida Construction Legal UpdatesMany subcontracts contain a provision in the default section that reads something to the effect:
“Upon any default, Subcontractor shall pay to Contractor its attorney’s fees and court costs incurred in enforcing this Subcontract or seeking any remedies hereunder.”
Oftentimes, a party may wonder as to the enforceability of the provision and how it is applied in the context of a dispute between a contractor and its subcontractor where both parties have asserted claims against the other.
In an opinion out of the Middle District of Georgia, U.S. f/u/b/o Cleveland Construction, Inc. v. Stellar Group, Inc., 2019 WL 338887 (M.D.Ga. 2019), a subcontractor and prime contractor on a federal construction project each asserted claims against the other in the approximate amount of $4 Million, meaning there was a potential $8 Million swing in the dispute.
The subcontract contained a provision entitling the contractor to recover attorney’s fees incurred in enforcing the subcontract or seeking remedies under the subcontract upon any default, identical to the provision above.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
2017 California Construction Law Update
December 15, 2016 —
Garret Murai – California Construction Law BlogTo say it’s been an exciting year in politics would be an understatement.
While most of the nation’s attention was focused on the presidential election, state legislatures, including California’s, were busy at work. The California State Legislature introduced 3099 bills during the second session of the 2015-2016 session of which 808 bills were signed into law. 2016 saw the enactment of several bills of interest to the construction industry including bills related to alternative project delivery methods, prevailing wages, and licensing. Each of the bills discussed below takes effect on January 1, 2017.
Project Delivery
AB 2126 – Amends Public Contract Code section 6701 to increase the number of projects the Department of Transportation may use the construction manager/general contractor method of project delivery from no more than 6 projects, to 12 projects, of which 8 of the 12 projects would be required to use Department employees or consultants under contract with the Department to perform all project design and engineering services.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
No Trial Credit in NJ Appellate Decision for Non-Settling Successive Tortfeasors – Must Demonstrate Proof of Initial Tortfeasor Negligence and Proximate Cause
January 11, 2021 —
Kevin C. Cottone, Robert Wright, & Monica Doss - White and Williams LLPWhere an initial tortfeasor settles in a successive negligence case, the non-settling tortfeasors do not get a credit at trial, says the New Jersey Appellate Division. The court held in Glassman v. Friedel [1], that non-settling successive tortfeasors are not entitled to a pro tanto credit after the initial tortfeasor settles and its negligence is undetermined. Rather, successive tortfeasors have the burden at trial to demonstrate that (1) the initial tortfeasor was negligent, and (2) the initial tortfeasor’s negligence was the proximate cause of the second event.
In Glassman, the plaintiff, as executor of his deceased wife’s estate, sued a restaurant and property owner of the site where his wife fell and fractured her ankle. Afterwards, the plaintiff added defendants including the doctors and the medical center that cared for his wife after she fractured her ankle. The plaintiff alleged that they had been negligent during his wife’s surgery, which led to postoperative complications and injuries to his wife’s leg, ultimately resulting in a fatal pulmonary embolism.
Reprinted courtesy of
Kevin C. Cottone, White and Williams LLP,
Robert Wright, White and Williams LLP and
Monica Doss, White and Williams LLP
Mr. Cottone may be contacted at cottonek@whiteandwilliams.com
Mr. Wright may be contacted at wrightr@whiteandwilliams.com
Ms. Doss may be contacted at dossm@whiteandwilliams.com
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Traub Lieberman Attorneys Recognized as 2024 New York – Metro Super Lawyers®
November 11, 2024 —
Traub LiebermanTraub Lieberman is pleased to announce that seven Partners from the Hawthorne, NY office have been selected to the 2024 New York - Metro Super Lawyers list.
2024 New York – Metro Super Lawyers
- Copernicus Gaza – Insurance Coverage
- Jonathan Harwood – Professional Liability
- Lisa Rolle – Construction Litigation
- Hillary Raimondi – Employment Litigation
- Christopher Russo – Professional Liability
- Lisa Shrewsberry – Professional Liability
- Stephen Straus – Insurance Coverage
Lisa Shrewsberry was also selected to the Top 25: 2024 Westchester County Super Lawyers® list.
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Traub Lieberman
ASCE Statement on Calls to Suspend the Federal Gas Tax
June 27, 2022 —
Tom Smith, Executive Director, American Society of Civil Engineers (ASCE)WASHINGTON, D.C. –
ASCE strongly opposes the recent announcement from the Biden Administration to suspend the current 18.4 cents-per-gallon federal gasoline tax for three months. Even at the same modest figure of 18 cents per gallon for over 25 years since 1993, the motor fuel tax has represented a reliable federal revenue source for communities to fix and modernize their network of roads, bridges, and transit systems.
Suspending the gas tax would result in the loss of billions in revenue from the Highway Trust Fund (HTF), significantly diminishing much of the progress made in the Bipartisan Infrastructure Law at a time when Americans expect improvements to the nation's roads, bridges, and transit systems. Replacing this lost revenue with funds from other sources is not a viable long-term solution and sets a damaging precedent. Encouraging states to follow suit will compound this bad idea and further exacerbate our nation's infrastructure funding challenges. Our transportation system, including roadways, bridge spans, and transit networks, can't rely on novel, unpredictable funding.
Further, there is little guarantee that motorists will see any real relief at the pump. Gas holidays aren't price controls; the manager at the gas station still gets to set their price. Oil producers have benefited significantly in the past from previous state-level gas tax holidays. There is no mechanism to ensure that these "savings" are passed on to consumers, but there is a virtual guarantee of disrupting transportation dollars and the HTF. While it sounds like an enticing solution when pocketbooks are strained, Congress knows that a variety of factors, including plain supply and demand, affect the prices that people see at fuel stations.
Now is the time to build on the momentum of the Bipartisan Infrastructure Law which, for the first time in decades, takes significant steps to revitalize our nation's aging infrastructure, improve public safety, strengthen our economy, and deliver well-paying jobs.
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Addressing the Defective Stucco Crisis
November 28, 2018 —
Wally Zimolong - Supplemental ConditionsI received several emails regarding the expose by Caitlin McCabe and Erin Arvedlund in the Philadelphia Inquirer titled “Rotting Within.” The story outlines the epidemic of defective stucco and other “building envelope” issues in Southeastern Pennsylvania that is causing homes to literally rot from within. Having litigated several of these cases, they are frustrating for both the attorneys that handle them and the homeowners who must deal with the reality that their home is rotting away. The story points to the multiple (and all too common) causes for the epidemic: unskilled subcontractors, lack of oversight and care, and poor construction drawings. The is no quick solution to the crisis and litigation regarding these defects is sure to proliferate.
However, there is one potential solution that the story does not cover and which could help alleviate some of the challenges homeowners face in recovering damages for their claims. The Pennsylvania Legislature must act to change the insurance laws in Pennsylvania to make defective construction covered by a developer’s, contractor’s, and subcontractor’s commercial general liability policy (“CGL”). Most homeowners and many attorneys incorrectly assume that defective construction is covered by insurance. This assumption makes sense. If someone operates a car in a negligent manner and hits your car and causes damage, the negligent driver’s insurance company with cover your loss. In reality, Pennsylvania courts follows a minority of states that holds that generally speaking defective workmanship is not a “covered occurrence” under an insurance policy. (There are several exceptions to this rule and thorough discussion is beyond this blog post and would probably bore you.)
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Is the Obsession With Recordable Injury Rates a Deadly Safety Distraction?
May 16, 2022 —
Richard Korman - Engineering News-RecordOn the first morning of 2021, laborer Mason Mack Harris, 25, reported for work that would have qualified for extra holiday pay. On that New Year’s Day, the onsite manager for his employer, Midwest Demolition Co., assigned Harris and a workmate to complete demolition of a 9-ft-high concrete balcony slab at a children’s home renovation project in Lincoln, Neb. According to U.S. Labor Dept. records, they used a concrete saw since neighbors had complained about jackhammer noise from earlier work.
Reprinted courtesy of
Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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Work without Permits may lead to Problems Later
September 10, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to the Los Angeles Register, “Southern California homeowners often have repairs or improvements done to their property without getting the required building permits,” which sometimes, may be fine, but other times it leads to disastrous problems.
The Register used an example of a San Clemente couple who had issues selling their home when a building inspector found that weep screeds were covered up by a cement deck installed by a contractor. The contractor also failed to get building permits for the work that was done. The buyer stated that repairs needed to be done prior to the sale.
According to Mac MacKenzie, an agent at Coldwell Banker in Irvine, the situation is not uncommon: “We’ve had (permit problems) kill deals before, and we’ve had them almost kill deals. If it’s serious enough, it can stop a transaction from closing.”
Permits are generally required “for any alteration, major repairs or new construction,” according to the Register, while they are not necessary “for minor repairs, such as fixing leaky pipes, painting, new carpeting or new kitchen countertops.”
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