COLUMBUS OHIO BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Bound by Group Builders, Federal District Court Finds No Occurrence

August 11, 2011 — Tred R. Eyerly - Insurance Law Hawaii

The homeowners sued their contractor, alleging the contractor had defectively constructed and failed to complete their home.  State Farm Fire and Casualty Co. v. Vogelgesang, 2011 U.S. Dist. LEXIS 72618 (D. Haw. July 6, 2011).  The homeowners' complaint pled, among other things, damage caused by breach of contract and negligence.  State Farm agreed to defend under a reservation of rights.



State Farm filed suit in federal court for declaratory relief.  Judge Mollway granted State Farm's motion for summary judgment.  Relying on the Hawaii Intermediate Court of Appeal's decision in Group Builders, Inc. v. Admiral Ins. Co., 123 Haw. 142, 231 P.3d 67 (Haw. Ct. App. 2010), Judge Mollway determined that the claims asserted in the underlying litigation arose from the contractor's alleged breach of contract.  Group Builders held that breach of contract claims based on allegations of shoddy performance were not covered under CGL policies.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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Power Point Presentation on Nautilus v. Lexington Case

July 23, 2014 — Tred R. Eyerly – Insurance Law Hawaii
Here is our power point from today's presentation to the Hawaii State Bar Association's Litigation and Insurance Coverage Litigation sections. We discussed "other insurance" clauses as addressed by the Hawaii Supreme Court in Nautilus Ins. Co. v. Lexington Ins. Co., 132 Haw. 283, 321 P.3d 634 (2014). Read the full story and view the Power Point presentation... Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Is Privity of Contract with the Owner a Requirement of a Valid Mechanic’s Lien? Not for GC’s

January 04, 2021 — Christopher G. Hill - Construction Law Musings
As any reader of this construction law blog knows, mechanic’s liens make up much of the discussion here at Construction Law Musings. A recent case out of Fairfax County, Virginia examined the question of whether contractual privity between the general contractor and owner of the property at issue is necessary. As a reminder, in most situations, for a contract claim to be made, the claimant has to have a direct contract (privity) with the entity it sues. Further, for a subcontractor to have a valid mechanic’s lien it would have to have privity with the general contractor or with the Owner. The Fairfax case, The Barber of Seville, Inc. v. Bironco, Inc., examined the question of whether contractual privity is necessary between the general contractor and the Owner. In Bironco, the claimant, Bironco, performed certain improvements for a barbershop pursuant to a contract executed by the two owners of the Plaintiff. We wouldn’t have the case here at Musings if Bironco had been paid in full. Bironco then recorded a lien against the leasehold interest of The Barber of Seville, Inc., the entity holding the lease. The Plaintiff filed an action seeking to have the lien declared invalid because Brionco had privity of contract with the individuals that executed the contract, but not directly with the corporate entity. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Subcontractor Allowed to Sue Designer for Negligence: California Courts Chip Away at the Economic Loss Doctrine (Independent Duty Rule)

August 30, 2017 — John P. Ahlers - Ahlers & Cressman PLLC
An architect may have to pay over $1 million to a subcontractor who was contractually obligated to rely on the designer’s plans – even though the architect was not a party to the contract.[1] That was the ruling in U.S. f/u/b/o Penn Air Control, Inc. v. Bilbro Constr. Co., Inc.[2] The dispute involved a $7.3 million design-build contract award to Bilbro Construction (“Bilbro”) to renovate a facility for the Naval Facilities Engineering Command in Monterey, California. Bilbro hired an architect (“FPBA”) to serve as the designer of record and provide all the architectural design services. FPBA’s design team included an acoustical sub-consultant (Sparling). The general contractor (design builder) also retained Alpha Mechanical (Alpha) as the mechanical electrical and plumbing (“MEP”) design/build subcontractor. Alpha, in turn, subcontracted the MEP design to Shadpour Consulting Engineers. During the design phase of this project, Alpha’s MEP design was reviewed by FPBA, Bilbro, and Sparling at the 35, 75, and 100 percent design completion levels. Alpha demonstrated that it regularly received direct communications during design development from Sparling and FPBA, including comments, changes, and revisions. One example Alpha cited was it raised some concerns about anticipated noise level in eight rooms. Sparling made several recommendations to Alpha and Shadpour that were implemented. Read the court decision
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Reprinted courtesy of John P. Ahlers, Ahlers & Cressman PLLC
Mr. Ahlers may be contacted at jahlers@ac-lawyers.com

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Real Estate & Construction News Roundup (07/05/23) – A Hospitality Strike in Southern California, Agencies Step in With Lenders and the Social in ESG

August 14, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, we see promising developments for climate change action in commercial real estate, how homeowners are reacting to new energy concerns, the fallout of the U.S. debt ceiling fight on global M&A deals, and more!

• There are new ways the commercial real estate sector can grow its commitment to climate goals and contributions to reducing its carbon footprint. (Mahesh Ramanujam, Forbes)
• Thousands of hospitality workers in Southern California went on strike to demand higher wages, access to affordable family health care benefits and stronger workplace protections. (Julianne McShane, NBC)

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Surprising Dismissal of False Claims Act Case Based on Appointments Clause - What Does It Mean?

October 15, 2024 — Steven H. Lee - Lewis Brisbois Newsroom
Atlanta, Ga. (October 1, 2024) - In a surprising turn of events, the U.S. District Court for the Middle District of Florida recently dismissed a False Claims Act (FCA) lawsuit brought by relator Clarissa Zafirov against Florida Medical Associates, LLC, and other defendants. U.S. District Judge Kathryn Kimball Mizelle ruled that the FCA’s qui tam provisions, which allow private individuals to bring lawsuits on behalf of the government, violate the Constitution’s Appointments Clause. This decision follows another unexpected ruling by U.S. District Judge Aileen Cannon in the Southern District of Florida, where the court similarly dismissed an indictment against former President Donald Trump based on the same constitutional clause. At the heart of these rulings is the argument that FCA relators - who decide whom to sue, which legal theories to pursue, and how to proceed - exercise significant executive authority. Because they are not appointed by the President, a department head, or a court, the judges concluded that these relators hold their positions unconstitutionally. As a result, Judge Mizelle dismissed the case entirely. Read the court decision
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Reprinted courtesy of Steven H. Lee, Lewis Brisbois
Mr. Lee may be contacted at Steven.Lee@lewisbrisbois.com

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Righting Past Wrongs Through Equitable Development

January 17, 2022 — Bruce Buckley & Pam Radtke Russell - Engineering News-Record
Standing on a dead-end street in Spartanburg, S.C., Harold Mitchell can plainly see the history of injustice in his community. On one side lies the remains of his childhood home. On the other, a shuttered fertilizer plant that was operational when Mitchell was growing up. He distinctly recalls smells of ammonia and sulfur emanating through the neighborhood that “were so pervasive, you didn’t even think about it.” He remembers his father regularly cleaning white dust off their cars, and workers emerging from the plant gates “looking like the Pillsbury Doughboy” covered in fertilizer dust from head to toe. Sometimes, he’d walk with the plant’s night watchman, strolling alongside neon green sewage lagoons located not far from his bedroom window. Reprinted courtesy of Bruce Buckley, Engineering News-Record and Pam Radtke Russell, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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$1.9 Trillion Stimulus: Five Things Employers Need to Know

March 15, 2021 — Matthew C. Lewis & Rana Ayazi - Payne & Fears
On March 11, 2021, President Biden signed H.R.1319 - American Rescue Plan Act of 2021 (“Rescue Plan”) into law—a $1.9 trillion stimulus bill. Here are five things every employer should know about the bill. 1. FFCRA Tax Credits Have Been Extended The Rescue Plan extends the Families First Coronavirus Response Act (FFCRA) tax credit provisions—again—through September 30, 2021. (The ability to recoup the cost of FFCRA leave was previously extended in December 2020 through March 31, 2021: See related article here. Employers that opt to voluntarily provide FFCRA leave will be credited 100 percent for all qualifying wages paid under the FFCRA. Any employer already providing FFCRA-like leave to employees under state, county, and/or local paid sick leave ordinances, especially if their business is located in California (e.g., Cal/OSHA’s COVID-19 Prevention Emergency Temporary Standards) should consider opting to voluntarily provide FFCRA-compliant leave, as by doing so they may be able at least partially to recoup the cost of leave they are otherwise already required to provide. Reprinted courtesy of Matthew C. Lewis, Payne & Fears and Rana Ayazi, Payne & Fears Mr. Lewis may be contacted at mcl@paynefears.com Ms. Ayazi may be contacted at ra@paynefears.com Read the court decision
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