Property Owner’s Defense Goes Up in Smoke in Careless Smoking Case
September 23, 2019 —
Michael J. Ciamaichelo - The Subrogation StrategistProperty owners owe a duty of reasonable care to avoid causing harm to neighboring properties. When a property owner knows or should know about a condition that poses a risk of danger to neighboring properties, the property owner must exercise reasonable care to make the condition safe. The Court of Special Appeals of Maryland recently held that, where hundreds of discarded cigarette butts had accumulated in a bed of mulch over an extended period of time prior to the fire at issue, the owner of the property with the mulch beds owed a duty of care to its neighbors to prevent a foreseeable fire.
In Steamfitters Local Union No. 602 v. Erie Insurance Exchange, 2019 Md. App. LEXIS 430 (May 30, 2019), a fire originated in a strip of mulch at property owned by the Steamfitters Local Union No. 602 (Union) and caused damage to neighboring properties. The fire occurred when an unknown person discarded a cigarette butt into the mulch. Following the fire, investigators found “hundreds, if not thousands of cigarettes” in the mulch where the fire originated. A representative for the Union acknowledged that there were more butts in the mulch “than there should have been” and that, “[i]n the right situation,” a carelessly discarded cigarette could cause a fire. The Union, however, had no rules or signs to prohibit or regulate smoking at the property, where apprentices would often gather prior to class.
The insurance companies for the damaged neighbors filed subrogation actions alleging that the Union, as the property owner, failed to use reasonable care to prevent a foreseeable fire. A jury found in favor of the subrogating insurers and against the Union.
Read the court decisionRead the full story...Reprinted courtesy of
Michael J. Ciamaichelo, White and Williams LLPMr. Ciamaichelo may be contacted at
ciamaichelom@whiteandwilliams.com
Agree First or it May Cost You Later
May 08, 2023 —
Bill Wilson - Construction Law ZoneBusiness relationships often begin before parties execute a written agreement containing the terms and conditions by which the relationship will be governed. With little more than a Letter of Intent (“LOI”) or Letter of Award (“LOA”) one party is typically pressured to begin investing time and money to start preliminary work on a project. If such LOI or LOA contains nothing more than an agreement to agree later, the performing party should minimize its investment until the later agreement is executed. A recent court decision in New York confirmed the danger to the performing party under “agreement to agree” provisions.
In Permasteelia North America Corp. v. JDS Const. Group, LLC, 2022 WL 2954131 (N.Y. Sup. CT. 7/22/22), the plaintiff subcontractor allegedly performed $1.9 million worth of preliminary work under nothing more than a LOA with an agreement to agree provision. Issues arose, and the parties never entered any later written agreement. The general contractor refused to pay the plaintiff anything for its preliminary work. In response, the plaintiff filed suit against the general contractor asserting four counts: foreclosure of its lien, breach of contract, unjust enrichment, and account stated. All four counts were based on an alleged oral “handshake deal” for subcontract work for the project. The general contractor’s LOA stated that neither party would be bound “unless and until the parties actually execute a subcontract.” During discovery, the plaintiff admitted that neither party intended to enter into any contract until its potential terms were negotiated, reduced to writing, and signed. Moreover, the plaintiff only offered one set of meeting minutes and a few project agendas to support its alleged “handshake deal.” Once these necessary undisputed facts were confirmed, the defendant moved for summary judgment on all four counts.
Read the court decisionRead the full story...Reprinted courtesy of
Bill Wilson, Robinson & Cole LLPMr. Wilson may be contacted at
wwilson@rc.com
4 Ways the PRO Act Would Impact the Construction Industry
October 24, 2021 —
Andrew M. MacDonald - ConsensusDocsThe Protecting the Right to Organize Act (the “PRO Act”) is a proposed law that would dramatically rewrite the National Labor Relations Act (“NLRA”). Breathtakingly broad in scope, the PRO Act targets several longstanding features of existing law perceived by unions and labor activists to be unfair to labor and too favorable to employers. The proposed legislation is essentially a grab-bag of grievances that the labor movement has compiled over decades and sought to change through legislation and before the National Labor Relations Board (“NLRB”) without success in the past.
While the PRO Act would affect virtually all private sector employers, it would alter the labor dynamic in the construction industry in four major ways:
1. Removing the current prohibitions on secondary, jurisdictional, and other forms of picketing. Current law attempts to balance the rights of employers to operate their businesses without unnecessary interference with the rights of unions to protest concerning wages and working conditions. As part of this balancing act, the NLRA prohibits unions from picketing under certain conditions or with certain aims. These restrictions include the prohibition on “secondary” picketing by unions of neutral employers, which are employers with which the union does not have a direct labor dispute, and “jurisdictional” picketing by unions to force an employer to assign certain work to a specific trade or group of employees. The elimination of these restrictions in the PRO Act would have a significant impact on the construction industry.
Read the court decisionRead the full story...Reprinted courtesy of
Andrew M. MacDonald, Fox Rothschild LLPMr. MacDonald may be contacted at
amacdonald@foxrothschild.com
Back Posting with Thoughts on Lien Waivers
May 20, 2015 —
Christopher G. Hill – Construction Law MusingsAfter a week of being unable to post due to the rigors of my solo construction practice, I’m back on the blogging train. For those of you that missed my new musings this past week, I hope that you had a chance to look through some of the past Guest Post Friday posts for some good stuff to read.
During the course of my busy week last week, a question came up regarding the mechanic’s lien waivers that commercial construction companies routinely execute as part of the payment process. The waiver forms vary, but each essentially states that in exchange for payment the payee, whether a subcontractor or supplier (or even general contractor) waives its future rights to record a mechanic’s lien for the work that is covered by the payment received. Most if not all of these forms further require a certification that the funds paid will either be used to pay suppliers or that suppliers have already been paid. This general description is not the reason for this post.
As is always the case in the Commonwealth of Virginia where the contract is king and a court is unlikely to reinterpret any written contractual document, the devil is in how that waiver is worded. Some waivers are worded in such a way that they essentially require a payee to certify receipt of the funds prior to payment being received. These same forms require the same pre-payment certification that all suppliers and subcontractors of the payee have already been paid. In short they require a payee to both place complete trust in the payor that the check will be paid and that the check will not bounce while in many cases (often with an unstated “wink and nod”) claiming payment was already made when all know the likelihood is that it has not.
Read the court decisionRead the full story...Reprinted courtesy of
Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Is the Manhattan Bank of America Tower a Green Success or Failure?
April 15, 2014 —
Beverley BevenFlorez-CDJ STAFFConstruction Digital reported that the Bank of America tower in Manhattan, New York, “has been conversely hailed as both the greenest skyscraper in the world and an energy-guzzling toxic tower that exposes the charade of the LEED rating system.” It is the first skyscraper to ever achieve the highest LEED Platinum rating. However, a critic alleged that the eighty-year old Empire State Building “uses half the energy” of the new Bank of America tower.
The Bank of America tower, designed by architects Cook and Fox, was built with “local and recycled materials,” as well as “floor-to-floor insulated glazing” that maximizes “natural light and traps heat, and lights are automatically dimmed in daylight.” Rainwater is captured for reuse, and “waterless urinals save an estimated 8,000,000 US gallons of water per year.”
However, Construction Digital reported that Sam Roudman in New Republic Magazine “pointed out that buildings contribute more to global warming than any other sector of the economy, consuming more energy and producing more greenhouse gas emissions in America than every car, bus, jet, and train combined; and furthermore, than every factory combined.”
Joel Levy writing for Construction Digital declared, “We can call LEED a failed artifice and even suggest abandoning it as a pointless charade, but unless we want to live in caves and go back to using candles for light, we must accept the fact that the 155,000,000 people that make up America’s workforce power the country and indeed the world’s economy…need somewhere to work.”
Read the court decisionRead the full story...Reprinted courtesy of
Construction Site Blamed for Flooding
November 08, 2013 —
CDJ STAFFA neighborhood in Pflugerville, Texas was during some recent heavy rains, and the residents blame the nearby construction of a new elementary school. During the rains, a retention wall around the site collapsed, leading to the water discharging to their neighborhood.
One resident noted that he had about $16,000 worth of damage to his home and it has also cost him work. “I fix computers for a living, but I don’t have internet right now, and a lot of my stuff is wet,” said Erik Goeser, one of the Shallow Creek neighborhood residents.
The county is looking into the situation but notes that “the construction site in question had recently been inspected and met all Travis County expectations, requirements and codes.”
Read the court decisionRead the full story...Reprinted courtesy of
Recent Amendments and Caselaw Affecting the Construction Industry in Texas
April 19, 2022 —
Frederick H. Wen - Gordon Rees Scully Mansukhani, LLPHere are some recent Texas legislative amendments and Texas Supreme Court cases from the past year concerning the construction industry in Texas.
1) Recent Legislative Amendments Concerning the Construction Industry:
a) The Texas Legislature throws a “Spear” in the Lonergan Doctrine to reduce general/subcontractor liability for owner-provided plans and specs:
Forty-nine out of the fifty states follow the Spearin Doctrine under which owners warrant the accuracy and sufficiency of owner-provided plans and specs in construction contracts. On the other hand, for over a century, Texas has followed the Lonergan Doctrine under which, absent contractual language to the contrary, a general contractor/subcontractor, instead of the owner, bears the risk of deficiencies in owner-provided design documents, once they started construction. Texas Senate Bill 219, which went into effect on September 1, 2021, finally changed that and brought Texas in line with the rest of the country, with a few exceptions.
Read the court decisionRead the full story...Reprinted courtesy of
Frederick H. Wen, Gordon Rees Scully Mansukhani, LLPMr. Wen may be contacted at
fhwen@grsm.com
California’s Labor Enforcement Task Force Continues to Set Fire to the Underground Economy
February 16, 2016 —
Evelin Y. Bailey – California Construction Law BlogIf you’re a fan of the Hunger Games trilogy, either the books or the movies, you’re likely familiar with “The Hob,” the black market in District 12 where people buy and sell banned items. It’s where bow-wielding protagonist Katniss Everdeen and her childhood friend Gale Hawthorne sell their poached game and where, in the movie but not the book (what can we say, we’re fans), Katniss obtains the “mockingjay” pin which she is later associated with. While The Hob is largely ignored by soldiers of the totalitarian “Capitol,” in the third book Catching Fire, the Hob is reduced to a pile of rubbish and ash by the Capital as an example to punish the insurrectionists led by Katniss.
The Labor Enforcement Task Force (LETF), a joint task force composed of several of California’s agencies including the Contractors State License Board, Department of Industrial Relations and Employment Development Department is also setting fire, at least figuratively, to California’s underground economy. See our earlier post Joint Labor Task Force Targets Underground Economy for further background on LETF.
Read the court decisionRead the full story...Reprinted courtesy of
Evelin Y. Bailey, Wendel Rosen Black & Dean LLPMs. Bailey may be contacted at
ebailey@wendel.com
