Injured Subcontractor Employee Asserts Premise Liability Claim Against General Contractor
March 22, 2021 —
David Adelstein - Florida Construction Legal UpdatesIn an interesting opinion, an injured employee of an electrical subcontractor sued the general contractor of a parking garage project under a premise liability theory after being injured when stepping on an uncovered floor drain at the project site. There is no discussion in the opinion as to workers compensation immunity. Rather, the discussion centers on the injured employee’s premise liability claim as to whether the general contractor “breached its duty to maintain the premises in a reasonably safe condition by leaving the drain uncovered and failing to warn of the danger of the uncovered drain.” Pratus v. Marzucco’s Construction & Coatings, Inc., 46 Fla.L.Weekly D186a (Fla. 2d DCA 2021)
The trial court granted summary judgment in favor of the general contractor finding that the drain was open and obvious on the site. The Second District Court of Appeal reversed the summary judgment with a discussion as to premise liability claims, particularly as it pertains to a business invitee, which is what the injured employee of the electrical subcontractor was.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Bank of America’s Countrywide Ordered to Pay $1.3 Billion
July 30, 2014 —
Patricia Hurtado – BloombergBank of America Corp.’s Countrywide unit was ordered to pay $1.3 billion in penalties for defective mortgage loans it sold to Fannie Mae (FNMA) and Freddie Mac in the run-up to the 2008 financial crisis, a little more than half of what the U.S. had requested.
U.S. District Judge Jed Rakoff in Manhattan issued the civil penalty against the Charlotte, North Carolina-based bank today in the first mortgage-fraud case brought by the federal government to go to trial.
Countrywide and Rebecca Mairone, a former executive with the mortgage lender, were found liable in October for selling thousands of bad loans to the two government-sponsored enterprises. Mairone was ordered today to pay $1 million.
Read the court decisionRead the full story...Reprinted courtesy of
Patricia Hurtado, BloombergMs. Hurtado may be contacted at
pathurtado@bloomberg.net
California Home Sellers Have Duty to Disclose Construction Defect Lawsuits
October 21, 2013 —
CDJ STAFFIf you’re selling a home in California that has been the subject of a construction defect lawsuit, you probably have to disclose this, according to Steven G. Lee, an attorney at Reid & Hellyer. Mr. Lee notes that California law mandates the disclosure of “any lawsuits by or against the Seller threatening to or affecting the Property, including any lawsuits alleging a defect or deficiency.” He further notes that “for those selling units in a condominium or townhouse development, this includes defects in the common areas.”
He notes that failure to disclose will not invalidate the sale, but the seller may be “liable for actual damages suffered by the buyer.” Merely disclosing the former defect may not be enough. Mr. Lee notes that the California Court of Appeals ruled in one case that although buyers had been informed of past water intrusion, knowledge of the construction defect lawsuit may have affected the buyer’s decision.
Read the court decisionRead the full story...Reprinted courtesy of
ASCE Statement On White House "Accelerating Infrastructure Summit"
October 17, 2022 —
Maria Lehman, President-elect - American Society of Civil Engineers (ASCE)WASHINGTON, D.C. –We thank the Administration for convening the Accelerating Infrastructure Summit, which highlighted the possibilities stemming from the bipartisan infrastructure law. Nearly one full year since it was passed into law, this transformative legislation is beginning to kickstart vital infrastructure projects nationwide that will improve the country's economic efficiency and prioritize public health and safety.
We know that together, builders, engineers, planners, and those entrusted with infrastructure projects must meet the moment and deliver projects on time, on task, and on budget for communities to make the most of these new resources. This generational investment in infrastructure is much needed - the 2021 Report Card for America's Infrastructure assigned the nation's infrastructure a cumulative grade of "C-" across 17 categories of infrastructure.
ASCE is ready to help optimize these investments for communities across the country and make sure all will benefit, whether it is providing contract templates to expedite the process or offering peer support to smaller and rural agencies.
ASCE is also focused on education in our industry to better equip civil engineers with the knowledge and expertise to execute alternative project delivery methods with a March 2023 Construction Institute Summit in St. Louis, which will provide a dedicated track to highlight innovations that help reduce the time for construction projects.
The bipartisan infrastructure law has provided us the opportunity to transform America and bring our infrastructure into the 21st century, and we will need diverse perspectives, innovative technologies and processes, and a robust workforce to make the most of this once-in-a-generation investment.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
Read the court decisionRead the full story...Reprinted courtesy of
If a Defect Occurs During Construction, Is It an "Occurrence?"
February 12, 2024 —
Brendan J. Witry - The Dispute ResolverEstablishing insurance coverage for construction defects is almost as important as establishing liability in the underlying construction defect litigation itself.
The risk to the defendant contractor of defending a construction claim can place significant burdens on a contractor’s operations and an uninsured judgment might even put the contractor out of business.
For owners, suing a contractor for construction defects can become academic if there is no prospect of insurance coverage; obtaining a $1 million judgment against a contractor with limited assets would be a pyrrhic victory.
Commercial General Liability (CGL) carriers are obligated to defend claims that potentially fall within the coverage granted by the policy.[1] When presented with a claim, CGL insurers typically have three options: (1) assume the defense without reservation; (2) assume the defense asserting defenses to coverage, and depending on the state, reserving the right to recover defense costs if it later determines there is no duty to defend; or (3) deny the claim outright and seek a declaratory judgment holding that the insurer has no duty to defend or indemnify. An insurer may deny the claim outright and not seek a declaratory judgment, but does so at its peril because it can expose the insurer to significant liability if the insured later shows the insurer in fact had a duty to defend.
Read the court decisionRead the full story...Reprinted courtesy of
Brendan J. Witry, Laurie & Brennan LLPMr. Witry may be contacted at
bwitry@lauriebrennan.com
Caveat Emptor (“Buyer Beware!”) Exceptions
May 10, 2021 —
David Adelstein - Florida Construction Legal UpdatesThere is value to a seller when it comes to entering into an as-is transaction and stating that the seller has NOT made any representation or warranty, all such representations or warranties are disclaimed, the buyer is NOT relying on any representation of the seller, and that the buyer is relying on its own inspection of the property. This shifts the onus to the buyer to undertake the inspection or due diligence it needs to take relating to the property it wants to buy.
With respect to commercial property transactions:
The doctrine of caveat emptor, which Florida courts continue to apply, “places the duty to examine and judge the value and condition of the property solely on the buyer and protects the seller from liability for any defects.” There are, however, three exceptions to this doctrine, including: “1) where some artifice or trick has been employed to prevent the purchaser from making independent inquiry; 2) where the other party does not have equal opportunity to become apprised of the fact; and, 3) where a party undertakes to disclose facts and fails to disclose the whole truth.”
Florida Holding 4800, LLC v. Lauderhill Mall Investment, LLC, 46 Fla. L. Weekly D785b (Fla. 4th DCA 2021).
These three exceptions to caveat emptor, or the doctrine of buyer beware, are not easy to prove because it places a burden on a buyer to prove an active effort from the seller to conceal a material fact to skirt around the as-is language. Again, this is not an easy burden to prove.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
California Contractor License Bonds to Increase in 2016
December 02, 2015 —
Garret Murai – California Construction Law BlogThe post, which originally appeared on
The Surety Bond Insider, was written by Jon Gottschalk, a member of the SuretyBonds.com Educational Outreach team. on
SuretyBonds.com helps contractors fulfill their bonding requirements.
The Contractors State License Board (CSLB) is requiring all California contractors to purchase a $15,000 bond by January 1, 2016— a $2,500 increase from the $12,500 amount that was previously required. The additional $2,500 was previously accounted for by an additional requirement to obtain a contractor’s license. Those applying for the license had to post the $12,500 surety bond and proof of financial solvency in the amount of $2,500. Essentially, contractors were required to show that their current assets were greater than their liabilities by no less than $2,500. By increasing the bond amount to include that additional $2,500, the CSLB has removed the burden of proving financial solvency from those who wish to obtain their license.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Contractors: Revisit your Force Majeure Provisions to Account for Hurricanes
September 20, 2017 —
David Adelstein - Florida Construction Legal UpdatesWe now know and can appreciate the threat of hurricanes. Not that we did not appreciate the reality of hurricanes–of course we did–but Hurricane Harvey and Hurricane Irma created the type of actual devastation we fear because they hit close to home. The fear came to life, creating panic, anxiety, and uncertainty. It is hard to plan for a force majeure event such as a hurricane because of the capriciousness of Mother Nature. But, we need to do so from this point forward. No exception! And, I mean no exception!!
A force majeure event is an uncontrollable event that cannot be anticipated with any degree of definitiveness. The force majeure event will excusably delay or hinder performance obligations under a contract. One type of force majeure event is a hurricane—an uncontrollable and unforeseen act of Mother Nature.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com