Summary Judgment in Construction Defect Case Cannot Be Overturned While Facts Are Still in Contention in Related Cases
September 09, 2011 —
CDJ STAFFThe Alabama Court of Civil Appeals has dismissed an appeal of a summary judgment in the case Bella Investments, Inc. v. Multi Family Services, Inc. MFS was hired by Bella to be the general contractor for a hotel in Gardendale, Alabama. MFS hired various subcontractors, including the architect for the project. After completion of the hotel in April, 2006, Bella made requests for MFS to repair cracked floor tiles.
In August, 2008, Bella sued MFS, the architect, and various fictitiously named defendants. Subsequently, Bella amended its complaint, naming some of the fictitiously named defendants.
MFS in turn claimed that Bella’s claims were void under the statute of limitations and that Bella was in beach of contact by failing to pay MFS the full amount owed. MFS moved for summary judgment under the statute of limitations, which was granted by the court.
Bella requested that the court “alter, amend, or vacate its summary judgment order.” When this was denied, Bella appealed to the Alabama Supreme Court, which transferred the appeal to the Court of Civil Appeals. The Court of Appeals refused to vacate the summary judgment as claims that form part of the case against MFS are also part of Bella’s claims against the other defendants. For this reason, the court upheld the summary judgment.
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Supreme Court Holds Arbitrator can Fully Decide Threshold Arbitrability Issue
March 18, 2019 —
David Adelstein - Florida Construction Legal UpdatesThe United States Supreme Court recently decided parties to a contract can agree, under the Federal Arbitration Act, an arbitrator, rather than a court, can fully resolve the initial arbitrability question. Henry Schein, Inc. v. Archer and White Sales, Inc., 2019 WL 122164 (2019). The arbitrability question is whether the dispute itself is subject to arbitration under an arbitration provision. Parties that do not want to arbitrate try to circumvent this process by filing a lawsuit and asking the court to determine the threshold arbitrability question.
In Henry Schein, Inc., the contract at-issue provided:
This Agreement shall be governed by the laws of the State of North Carolina. Any dispute arising under or related to this Agreement (except for actions seeking injunctive relief and disputes related to trademarks, trade secrets, or other intellectual property) shall be resolved by binding arbitration in accordance with the arbitration rules of the American Arbitration Association. The place of arbitration shall be in Charlotte, North Carolina.
The plaintiff in this case asserted a claim for injunctive relief (among other claims) and argued that, therefore, the dispute is not subject to arbitration based on the exception in the provision. The initial, threshold issue became whether the dispute was subject to arbitration and, importantly, who decides this issue. The Court further looked at whether a trial court can resolve this issue under the “wholly groundless” exception, i.e.,the court can decide the issue if the argument for arbitration is wholly groundless.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Avoid L&I Violations by Following Appropriate Safety Procedures
November 07, 2022 —
Reeya Patel - Ahlers Cressman & Sleight PLLCDepartment of Labor and Industries of the State of Washington v. Roof Doctor, Inc. d/b/a Roof Doctors, Inc. of Tacoma (Unpublished opinion)
Roof Doctor, a company engaging maintenance of roofs, was hired to complete work for a commercial building in Tacoma in February 2018. During the job, Roof Doctor was cited for two violations by a Washington State Department of Labor and Industries’ (L&I) compliance inspector and seven additional asbestos violations. Each citation was rated with a probability of 1 – 3 to determine the likelihood of injury, illness, or disease. The ratings allowed issuance of an appropriate monetary penalty.
The disputes among the parties on appeal were as follows:
First, L&I and Roof Doctor disputed the asbestos probability ratings and calculated penalties. L&I produced as evidence, the fact that nine employees were physically hanging roofing material with asbestos, but none had training or knew that the material contained asbestos. L&I did agree that that most of the employees were experienced in handling roofing material and knew of the dangers that asbestos presented. Roof Doctor explained that because the employees were working outdoors, the danger of asbestos exposure was mitigated due to a low probability that a high concentration of asbestos could be inhaled by the employees when outdoors.
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Ahlers Cressman & Sleight PLLC
Delays Caused When Government (Owner) Pushes Contractor’s Work Into Rainy / Adverse Weather Season
January 13, 2020 —
David Adelstein - Florida Construction Legal UpdatesThere are a number of horizontal construction projects where a contractor’s sequence of work and schedule is predicated on avoiding the rainy season (or certain force majeure events). The reason is that the rainy season will result in delays due to the inability to work (and work efficiently) during the adverse weather (including flooding caused by the weather). If the work is pushed into the rainy season, is such delay compensable if the government (or owner) delayed the project that pushed work out into the rainy season? It very well can be.
For example, in Meridian Engineering Co. v. U.S., 2019 WL 4594233 (Fed. Cl. 2019), a contractor was hired by the Army Corps of Engineers to construct a flood control project for a channel in Arizona. Due to delays, including those caused by the government, the project was pushed into the monsoon season, which caused additional delays largely due to flooding caused by the heavy rain. One issue was whether such delays were compensable to the contractor – the government raised the argument that the contractor assumed the risk of potential flooding from the rainy season. The Court found this argument unconvincing:
[The contractor’s] initial construction schedule planned for a completion of the channel invert work, a necessary step in protecting the site from flooding, to be completed by late June 2008…[M]any issues arose in the project’s early stages that led to cumulative substantial delay, including those caused by the government’s failure….The government cannot now claim that [the contractor] assumed the risk of flooding from monsoon season when the government was largely responsible for [the contractor’s] inability to complete the project prior to the beginning of the monsoon season. Simply put, the government cannot escape liability for flood damages when the government is responsible for causing the contractor to be working during the flood-prone season.
Meridian Engineering, 2019 WL at *7 (internal citations omitted)
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Fewer NYC Construction Deaths as Safety Law Awaits Governor's Signature
July 25, 2022 —
Richard Korman - Engineering News-RecordThe hoped-for progress in New York City construction safety is coming too late for laborer Jose Fortina Armenta Hernandez. At 8:37 a.m. on May 27, 2021, while jackhammering a roof section on a Brooklyn building, the section on which Armenta stood gave way and he fell 60 ft. When last year his family sent his body from New York City to Mexico to be buried, they used a GoFundMe page to raise money for the laborer's funeral.
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Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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Denver Airport's Renovator Uncovers Potential Snag
March 04, 2019 —
Nadine M. Post - Engineering News-RecordThe renovation of the Great Hall of Denver International Airport’s iconic Jeppesen Terminal, roofed by a series of peaked tensile tents that echo the nearby mountains, has hit a bump. Routine but limited concrete testing of the nearly quarter-century-old terminal’s elevated floor slab, to determine whether the floor could support crane loads, shows the compressive strength of the concrete in certain sections is lower than was specified for the original project, more than 25 years ago.
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Nadine M. Post, ENRMs. Post may be contacted at
postn@enr.com
Claims for Negligence? Duty to Defend Triggered
July 09, 2019 —
Michael S. Levine & Adriana A. Perez - Hunton Andrews KurthOn June 17, 2019, the First Circuit held that an insurer’s duty to defend was triggered because the underlying complaint set forth claims that required a showing of intent as well as claims that sought recovery for conduct that “fits comfortably within the definition of an ‘accident.’” In Zurich American Ins. Co v. Electricity Maine, LLC, Zurich sought declaratory judgment that, under a D&O policy, it had no duty to defend the insured, Electricity Maine, an electrical utility company being sued in the underlying class action. Zurich argued it had no duty to defend because the underlying complaint failed to allege that Electricity Maine engaged in conduct that qualified as an “occurrence” or that caused “bodily injury” under the terms of the policy. The First Circuit disagreed.
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Michael S. Levine, Hunton Andrews Kurth and
Adriana A. Perez, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Ms. Perez may be contacted at aperez@HuntonAK.com
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Travelers Insurance Sues Chicago for $26M in Damages to Willis Tower
May 15, 2023 —
Annemarie Mannion - Engineering News-RecordTravelers Property Casualty Co. is suing the City of Chicago and its water district for $26 million in damages caused when more than 1 million gallons of Chicago River water flooded into a 110-story skyscraper during a 2020 storm.
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Annemarie Mannion, Engineering News-Record
Ms. Mannion may be contacted at manniona@enr.com
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