Cambridge Massachusetts Building Expert Directory

Drafting or Negotiating A Subcontract–Questions To Consider

June 21, 2021 — David Adelstein - Florida Construction Legal Updates
When it comes to drafting and negotiating a subcontract, there are provisions that should be important to you from a risk assessment standpoint. From the subcontractor’s standpoint, below are questions you should ask, or issues you should consider, as you go through the subcontract. These are the same questions and issues that are also important to a contractor as the contractor will want to ensure these issues are included in the subcontract. By asking yourself these questions, you can check to see how the subcontract addresses these issues, and how the risk should be negotiated. Hopefully, you are working with counsel to make sure you understand what risk you are assuming and those provisions you want to try to push back on. Asking yourself these questions, or considering these questions, will help you go through the subcontract with a purpose based on the risk profile of the project and certain risk you don’t want to assume.

Prime Contract –> Does the subcontract incorporate the prime contract? Make sure to request the prime contract since the subcontract will identify the prime contract as part of the Subcontract Documents and will require you to assume towards the contractor the same obligations the contractor is required to assume towards the owner.
Scope of Work –> What is the scope of work? Is it clear. Make sure the scope is clear and you understand the scope.

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Illinois Appellate Court Finds That Damages in Excess of Policy Limits Do Not Trigger Right to Independent Counsel

June 22, 2020 — Jason Taylor - Traub Lieberman
Under Illinois law, an insurer’s duty to defend includes the right to control the defense, which allows insurers to protect their financial interest in the outcome of the litigation. However, where a conflict of interest exists, the insured, rather than the insurer, is entitled to assume control of the defense of the underlying action. If this occurs, the insurer satisfies its obligation to defend by reimbursing the insured for the cost of defense provided by independent counsel selected by the insured. What circumstances and situations arise to the level of an actual conflict of interest between the insurer and insured are often grounds for dispute. In Joseph T. Ryerson & Son, Inc. v. Travelers Indemnity Co. of America, 2020 IL App (1st) 182491 (Apr. 7, 2020), the Illinois Appellate Court addressed whether damages awarded by a jury in excess of the policy limits were sufficient to trigger a right to independent counsel for post-trial and appellate proceedings. According to the Illinois Appellate Court, at least under the facts of the Ryerson case, the answer is “no.” In Ryerson, Nancy Hoffman sued Ryerson for injuries sustained in a tractor-trailer accident. Ryerson tendered the suit to its primary insurer, Travelers, and its umbrella insurer, Illinois National. The policy limits were $2 million and $25 million, respectively. A jury found in favor of Hoffman for over $27.6 million in damages, and Ryerson appealed. Read the court decision
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Reprinted courtesy of Jason Taylor, Traub Lieberman
Mr. Taylor may be contacted at jtaylor@tlsslaw.com

Wall Street’s Palm Beach Foray Fuels Developer Office Rush

June 28, 2021 — Natalie Wong - Bloomberg
First came the pandemic migration of New York financiers to West Palm Beach. Now comes the investor rush for offices to accommodate them. With the likes of Goldman Sachs Group Inc. and Steve Cohen’s Point72 Asset Management opening outposts in the Florida city, an area once known for snowbirds and retirees has suddenly become hot market for commercial real estate. At the forefront is Manhattan developer Related Cos., which has been accelerating investments in West Palm Beach and now controls about a third of its downtown office stock. It’s a bet that even as Covid restrictions ebb and New York bankers are called back to their office towers, South Florida’s pandemic boom is here to stay. The region, with its relatively lax virus rules, no state income tax and comparatively cheaper homes, last year saw thousands of people flock to enclaves such as West Palm Beach -- a city that for now has just slightly more downtown office space than a single Empire State Building. Read the court decision
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Reprinted courtesy of Natalie Wong, Bloomberg

Appeals Court Explains Punitive Damages Awards For Extreme Reprehensibility Or Unusually Small, Hard-To-Detect Or Hard-To-Measure Compensatory Damages

November 10, 2016 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Nickerson v. Stonebridge Life Ins. Co. (No. B234271A, filed 11/3/16), (“Nickerson II”) a California appeals court outlined the requirements for complying with the single-digit multiplier annunciated as a Constitutional limitation on punitive damages by the United States Supreme Court in State Farm Mut. Automobile Ins. Co. v. Campbell (2003) 538 U.S. 408, for awards of punitive damages against insurers in cases of extreme reprehensibility or unusually small, hard-to-detect or hard-to-measure compensatory damages. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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Continuing Breach Doctrine

May 28, 2024 — David Adelstein - Florida Construction Legal Updates
Have you ever heard of the “continuing breach” doctrine? Probably not. It is not a doctrine commonly discussed. It’s a doctrine used to try to argue around the statute of limitations. In an older Southern District Court of Florida case, Allapattah Services, Inc. v. Exxon Corp., 188 F.R.Ed. 667, 679 (S.D.Fla. 1999), the court explained: “Under this [continuing breach] doctrine, a cause of action for breach of a contract does not begin to accrue upon the initial breach; rather, on contracts providing serial performance by the parties, accrual of a breach of contract cause of action commences upon the occurrence of the last breach or upon termination of the contract.” Recently, this doctrine came up in an opinion by Florida’s Fifth District Court of Appeal. In Hernando County, Florida v. Hernando County Fair Association, Inc., 49 Fla.L.Weekly D947b (Fla. 5th DCA 2024), a plaintiff appealed the trial court’s dismissal with prejudice of its breach of contract claim based on the statute of limitations. The plaintiff claimed the defendant breached the contract by its failure to substantially redevelop property. The trial court dismissed based on the statute of limitations. However, the complaint alleged the defendant’s failure to comply “with numerous other intertwined, ongoing, and continuing contractual duties and obligations.” Hernando County, supra. The Fifth District reversed based on the continuing breach doctrine: “Where the nature of the contract is continuous, statutes of limitations do not typically begin to run until termination of the entire contract.” Id. quoting and citing Allapattah Servs., Inc. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Indiana Court of Appeals Rules Against Contractor and Performance Bond Surety on Contractor's Differing Site Conditions Claim

April 03, 2013 — Brian M. Falcon - Frost Brown Todd LLC
Earlier this year, the Indiana Court of Appeals issued an important opinion that impacts contractors and sureties alike. The decision should give contractors in Indiana pause before ceasing work while a dispute with the owner is pending. Sureties also have been placed on notice that strict compliance with the terms of their bonds is amongst their best defenses to claims made by owners and bond claimants. In Dave's Excavating, Inc. and Liberty Mutual Insurance Co. v. City of New Castle, Indiana, 959 N.E.2d 369 (Ind. Ct. App. 2012), the contractor (“Dave’s”) was the successful bidder on a public sanitary sewer and water main extension project. Dave's procured a performance bond from Liberty Mutual to guarantee its performance obligations to the owner (the "City"). After encountering what it deemed different subsurface conditions—and indeed after having been previously granted a change order to use excavated materials as backfill in light of the subsurface conditions on site—Dave’s placed the project engineer on notice of a differing site conditions claim. The total claim amounted to an 84% increase in the total contract price. With the claim, Dave's advised the project engineer it was ceasing further work until the project engineer provided direction. While the project engineer reviewed the claim, it reminded Dave's of its contractual obligation to "carry on the work and adhere to the progress schedule during all disputes or disagreements with the OWNER." A dispute immediately occurred regarding whether Dave's was required to continue to work while the project engineer resolved the differing site condition claim. After Dave's maintained its position that it was not required to continue to work, the project engineer placed it on notice of default and copied the letter to Liberty Mutual. Read the court decision
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Reprinted courtesy of Brian M. Falcon
Brian M. Falcon can be contacted at http://www.frostbrowntodd.com/contact.html

This Is the Most Remote and Magical Hotel on Earth

May 12, 2016 — Sarah Hepola – Bloomberg
There are no signs leading to the Fogo Island Inn. That’s how hard it is to miss the place. Designed by architect Todd Saunders, who grew up in nearby Gander, the building takes its inspiration from the fishing shacks that dot the shoreline, sagging on old wooden stilts, but it was also made with the dimensions of a cruising vessel. Three hundred feet long by 30 feet wide. Like a ship that’s just sailed into harbor. For decades, the flow of traffic in this community off the Newfoundland coast had moved in one direction: away. Fewer than 2,500 people live on an island four times the size of Manhattan. But the inn, the brainchild of Fogo Island native and tech millionaire Zita Cobb, reversed that trend when it was completed in 2013. Strangers now come from around the world to see the island, whose unspoiled landscape makes it a coveted spot for the under-the-radar traveler. Read the court decision
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Reprinted courtesy of Sarah Hepola, Bloomberg

What Is a Construction Defect in California?

October 25, 2013 — CDJ STAFF
William Naumann answers that question for the site SuperLawyers. Mr. Naumann notes that a construction defect “is a deficiency in the design or construction of a building or structure,” with specific examples of including “significant cracks in the slab and/or foundation; unevenness in floor slabs caused by abnormal soils movement; leaky roofs, windows, or door,” though he admits that he has not provided an all-inclusive list. He also discusses the deadlines for various types of construction defects, which in California range from 1 year to 10 years, depending on what the defect is. Untreated wood posts only get two years, while steel fences must be free of defects for four. Read the court decision
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