Tenth Circuit Reverses District Court's Ruling that Contractor Entitled to a Defense
October 24, 2023 —
Tred R. Eyerly - Insurance Law HawaiiAfter the district court granted the insured contractor's motion for judgment on the pleadings on the duty to defend, the Tenth Circuit found there was no coverage and reversed. Owners Ins. Co. v. Greenhalgh Planning & Development, Inc., 2023 U.S. App. LEXIS 20137 (10th Cir. Aug. 4, 2023).
Greenhalgh remodeled a house and barn for Michelle and Steven Pickens. After completion of the project, the Pickens sold the property to Teague and Michelle Cowley. The Cowleys later sued the Pickenses asserting various fraud and breach of contract claims. The complaint alleged that the Pickenses misled them into reasonably believing that the barn was a habitable structure, even though it did not qualify as such under the applicable building code because it lacked a fire-sprinkler system.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Contractor Underpaid Workers, Pocketed the Difference
February 10, 2012 —
CDJ STAFFProperty Casualty 360 reports that the owner of a construction company in California’s Bay Area has been arraigned in San Francisco Superior Court. The fifty-seven felony counts include charges of payroll theft and insurance fraud.
San Francisco District Attorney, George Gascon is quoted as saying that Doherty’s actions “hurts the honest businesses that were unable to successfully compete for these projects which the defendant was able to underbid and win as a result of this scheme.”
Frances Ann Doherty, owner of Doherty Painting & Construction has been charged with submitting false documentation as to what wages she paid her workers. It is alleged that over three years she pocketed $600,000. Additionally, she is charged with underpaying her insurer by more than $100,000 by submitting to them the fake payroll information.
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Know What’s Under Ground and Make Smarter Planning Decisions
July 29, 2019 —
Aarni Heiskanen - AEC BusinessA Finnish experimentation project developed a framework for classifying ground conditions for building and infrastructure construction. It will help anticipate the future cost of foundation laying during the early stages of city planning.
The ground conditions of an area can have a substantial effect on the costs and the environmental impacts of constructing buildings and infrastructure. At early stage, urban designers don’t typically have enough data to make smart decisions about zoning in that respect as obtaining that data is time-consuming and hence also costly.
Consequently, an experimentation project called MAKU-digi: Making the costs of land use visible devised a method for automating the analysis of ground conditions. I had the pleasure of interviewing Juha Liukas, Lead Advisor at Sitowise, and Hilkka Kallio, Geologist at Geological Survey of Finland (GTK), about the project.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Hail Damage Requires Replacement of Even Undamaged Siding
February 05, 2015 —
Tred R. Eyerly – Insurance Law HawaiiIn a dispute over the property policy's requirement that lost or damaged property be repaired or replaced, the Minnesota Supreme Court held that the policy language called for replacement of undamaged siding panels to obtain a color match. Cedar Bluff Townhome Condominium Ass'n, Inc. v. Am. Family Mut. Ins. Co., 2014 Minn. LEXIS 661 (Minn. Dec. 17, 2014).
During a hail storm, all 20 of Cedar Bluff's buildings sustained some damage. The roofs on all of the buildings needed to be replaced, and at least one siding panel on each building sustained damage. Eleven of the 20 buildings had three or fewer damaged panels. At the time of the hail storm, the siding was approximately 11 years old, and the color of the panels had faded. Replacement panels were available, but not in the same color.
Cedar Bluff submitted a claim under its business owners' policy to American Family. The policy obligated the insurer to pay for "direct physical loss of or damage to Covered Property at the premises . . . caused by or resulting from any Covered Cause of Loss." "Covered Property" was broadly defined in the policy to include buildings at the premises.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Environmental Justice Legislation Update
May 17, 2021 —
Anthony B. Cavender - Gravel2GavelEnvironmental Justice, as an urgent priority of the Federal Government, dates back to 1994, and President Clinton’s issuance of Executive Order 12898. This order directed federal agencies to identify and address, as appropriate, the disproportionately high and adverse human health and environment effects of its many programs, policies and procedures on minority populations and low-income populations. The primary legal basis for this order was Title VI of the Civil Rights Act of 1964, in particular, Sections 601 and 602, which prohibit discrimination in programs and activities receiving federal financial aid and assistance. Over the years, the Supreme Court has reviewed the scope and importance of Title VI. In Alexander v. Sandoval, decided in 2001, the Court concluded that while private parties could sue to enforce Section 601 or its implementing regulations, as written, Section 601 only prohibits intentional discrimination. Noting that disproportionate impact is not the sole touchstone of invidious racial discrimination. Moreover, the Court also ruled in Sandoval that private parties cannot sue to enforce regulations implementing Section 602. Perhaps as an acknowledgement of these shortcomings, the Environmental Protection Agency (EPA) has established an administrative system to process environmental justice complaints at 40 CFR Part 7. Without strengthening the statutory base of environmental justice, the program may continue to be the subject of countless symposiums and seminars. However, this may change soon.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
How to Make the Construction Dispute Resolution Process More Efficient and Less Expensive
July 09, 2014 —
Beverley BevenFlorez-CDJ STAFFJohn P. Ahlers on the Ahlers & Cressman PLLC blog has posted the first of a two-part series on Ways to Make the Construction Dispute Resolution Process More Efficient and Less Expensive: “In our view, construction is well suited to streamlining the resolution process, particularly when experienced lawyers and judges / arbitrators are involved.”
“Discovery can take vast amounts of time and cost a company significant resources,” Ahlers wrote. “Many times, only small portions of a deposition might actually be used at the hearing in cross examination. The question then becomes whether the cost of the discovery is providing a return.”
Ahlers listed several steps and requirements that arbitrators, judges, or the parties themselves can impose to make the process more efficient, such as client involvement, avoiding too much process at the expense of practical outcomes, discovery limitations, among others.
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Georgia Appellate Court Supports County Claim Against Surety Company’s Failure to Pay
August 30, 2017 —
David R. Cook Jr. - Autry, Hanrahan, Hall & Cook, LLPIn 2015, Hall County (Georgia) brought legal action against Selective Insurance Company of America, Inc., the surety company for contractor Ruby Forrest. Hall County had contracted Ruby Forrest to complete and maintain sidewalk systems within three residential subdivisions that Ruby Forrest owned and was developing. Ruby Forrest did not complete the work as promised, and Hall County brought action against the contractor’s surety to recover under performance / maintenance bonds for uncompleted work and to assert bad faith claim for punitive damages and attorney fees.
Selective Insurance did not dispute that it had issued the bonds, that Ruby Forrest did not complete the sidewalk systems within the bond periods or their extensions, or that Hall County provided Selective Insurance with timely notice of Ruby Forrest’s failure to complete the work. Instead, Selective Insurance asserted that the original claim by Hall County was time-barred under a provision in the bonds that stated that “the Issuer will have no more liability after” the expiration date of the bond.
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David R. Cook, Autry, Hanrahan, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
School District Client Advisory: Civility is not an Option, It is a Duty
May 13, 2014 —
Gregory J. Rolen - Haight Brown & Bonesteel LLP“I could not but wonder at the Queen’s unprecedented civility, until I realized with a flush of shame that it was my own improved behavior that motivated hers. So it is that we in life determine our own treatment.” - Catherine Gilbert Murdock
I. We Must Actively Encourage Board Civility
Over 20 years of experience representing public entities has taught me there is nothing more important than civility. On April 11, 2014, I was a featured presenter on, "How to Keep School Boards Out Of Trouble!" My initial focus was to educate the board members about open meeting laws, public records, and conflict provisions. Instead, I began by addressing board "civility." The discussion became animated. The audience was transfixed, appalled, and even amused at my examples of how uncivilized board behavior led to lawsuits, bad press, wasted resources and low morale. One attendee asked me to define civility. I meekly responded, "The Golden Rule?" "Disagreeing without being disagreeable?" My answers were inadequate. I then had a humbling epiphany. As an education law specialist, and the General Counsel of one of the largest, most diverse school districts in California, I needed to do more to foster civility among the board members I served. I had underestimated the destructive effects of incivility on my district, my colleagues, and my community.
On some level I realized that the coarsening of the discourse was taking its toll. However, I was so involved in performing my duties; I forgot to do my job. I should have taken a step back and implemented training, policies, initiatives and protocols to promote civility. I realize that it is unfortunate that we have to establish standards for adult interactions, especially for people who have promised to place service over self. As I learned, you can never fully anticipate human interactions or the complexities of the human condition. That is why I believe proactive measures to promote civility are so critical. This is not being nice for the sake of being nice. But instead, it is an absolutely vital component of effective governance. Therefore, in this essay I will discuss civility and its importance to school boards and districts. I will address the deleterious effects of board incivility. More importantly, I hope to present no-nonsense methods to cultivate civility. It is my sincere desire that others will learn from my experiences, and this time I want to do better!
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Gregory J. Rolen, Haight Brown & Bonesteel LLPMr. Rolen may be contacted at
grolen@hbblaw.com