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Rulemaking to Modernize, Expand DOI’s “Type A” Natural Resource Damage Assessment Rules Expected Fall 2023

December 23, 2023 — Amanda G. Halter, Jillian Marullo & Ashleigh Myers - Gravel2Gavel Construction & Real Estate Law Blog
The U.S. Department of the Interior (DOI) anticipates proposing a new rule that would revise its “Type A” Natural Resource Damage Assessment (NRDA) regulations under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) in Fall 2023. The proposed rule would modernize DOI’s rarely used simplified Type A procedures for assessing damages for natural resource injuries tailored at sites involving minor releases of hazardous substances, with a smaller scale and scope of natural resource injury occurring in either coastal and marine areas or Great Lakes environments (the “Type A Rule”). (See 88 Fed. Reg. 3373; see 43 C.F.R. Pt. 11 Subpt. D.) The Type A Rule was last updated in 1997. DOI previewed the proposal in January 2023 in its Office of Restoration and Damage Assessment’s (ORDA) Advanced Notice of Proposed Rulemaking (ANPR). In the ANPR, the ORDA surmised that the Type A Rule was rarely used in part because of its restricted scope, but also because “the model equation for each Type A environment is the functional part of the rule itself—with no provisions to reflect evolving toxicology, ecology, technology, or other scientific understanding without a formal amendment to the Type A Rule each time a parameter is modified.” Calling the existing rule “inefficient and inflexible,” the ORDA stated that its proposal to reformulate the rule “as a procedural structure” would “modernize the Type A process and develop a more flexible and enduring rule than what is provided by the two existing static models” (88 Fed. Reg. 3373). Reprinted courtesy of Amanda G. Halter, Pillsbury, Jillian Marullo, Pillsbury and Ashleigh Myers, Pillsbury Ms. Halter may be contacted at amanda.halter@pillsburylaw.com Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com Read the court decision
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HOA Coalition Statement on Construction-Defects Transparency Legislation

May 12, 2016 — David M. McClain – Colorado Construction Litigation
FOR IMMEDIATE RELEASE Contact: Bill Ray / 303-885-1881 DENVER—The Homeownership Opportunity Alliance—a broad coalition of business groups, builders, elected officials and affordable housing advocates—provided the following statements on reports that there will be no construction-defects transparency legislation this session: “We are disappointed that negotiations broke down today and that event was immediately turned into an effort to use the media to score political points. The Homeownership Opportunity Alliance has worked on this issue for three years, and we are committed to finding a resolution that will address Colorado’s housing needs, especially through the development of attainable condominiums,” said Tom Clark, Chief Executive Officer of the Metro Denver Economic Development Corporation. “We understand the importance of this issue for our state, for working families, for first-time homebuyers and for anyone along the housing spectrum who is struggling to find a home. That's why we will remain committed to working on this issue.” The Homeownership Opportunity Alliance’s diverse coalition includes more than 50 organizations from across Colorado. The coalition also includes individual mayors and 14 different communities that have passed local ordinances to address attainable condominium development. Read the court decision
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Reprinted courtesy of David M. McClain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McClain may be contacted at mclain@hhmrlaw.com

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Scaffolding Purchase Suggests No New Building for Board of Equalization

July 30, 2014 — Beverley BevenFlorez-CDJ STAFF
Employees at California’s Board of Equalization spoke out against the Brown administration after the state purchased new scaffolding for the defect-riddled building, rather than finding a new facility, reported the Sacramento Bee. The existing scaffolding was leased for $10,000 per month, but the lease expired, prompting the purchase of new scaffolding for about $100,000. The board’s Chairman Jerome Horton stated “that while the change may make financial sense in the short term, it sends a signal that the Department of General Services intends to keep Equalization’s 2,200 or so employees in the troubled building,” according to the Sacramento Bee. Building problems include “toxic mold, defective elevators, leaking windows, corroded wastewater pipes, floods, and exterior glass panels that spontaneously break or pop off.” So far, $2.3 million has been paid “in connection with building-related employee injury claims” along with $60 million in repairs. However, an additional $115 million is estimated to completely fix the defects. Read the court decision
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Nondelegable Duty of Care Owed to Third Persons

May 29, 2023 — David Adelstein - Florida Construction Legal Updates
Although a personal injury case, the recent opinion in Garcia v. Southern Cleaning Service, Inc., 48 Fla.L.Weekly D977a (Fla. 1stDCA 2023) raises an interesting issue regarding nondelegable duties owed to third persons applicable in negligence actions. Remember, in order for there to be a negligence claim, the defendant MUST owe a duty of care to the plaintiff. No duty, no negligence claim. What if a defendant’s duty was delegated to, say, an independent contractor?

[A] party that hires an independent contractor may be liable for the contractor’s negligence where a nondelegable duty is involved. Such a duty may be imposed by statute, contract, or the common law. In determining whether a duty is nondelegable, the question is whether the responsibility at issue is so important to the community that an employer should not be allowed to transfer it to a third party. Garcia, supra, (internal citations omitted).

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

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Nevada Legislature Burns Insurers' Rights to Offer Eroding Limits

August 28, 2023 — William S. Bennett - Saxe Doernberger & Vita, P.C.
Nevada’s legislature recently passed a groundbreaking law imposing two prohibitions on insurers. First, the law prohibits insurers from issuing or renewing any liability insurance policy with an “eroding limits” provision. While the first section of the law will have the most immediate effects, the statute goes further, generally prohibiting insurers from limiting the availability of coverage for the costs of defense, legal costs and fees, and other claim expenses. This second section leaves a great deal to interpretation, with the potential to massively expand policyholder rights, and may throw the traditional structure of liability insurance policies into question. Nevada Statute §679a provides as follows: Notwithstanding any other provision of law, an insurer, including, without limitation, an insurer listed in NRS 679A.160, shall not issue or renew a policy of liability insurance that contains a provision that:

1. Reduces the limit of liability stated in the policy by the costs of defense, legal costs and fees and other expenses for claims; or
2. Otherwise limits the availability of coverage for the costs of defense, legal costs and fees and other expenses for claims.

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Reprinted courtesy of William S. Bennett, Saxe Doernberger & Vita, P.C.
Mr. Bennett may be contacted at WBennett@sdvlaw.com

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#11 CDJ Topic: Cortez Blu Community Association, Inc. v. K. Hovnanian at Cortez Hill, LLC, et al.

December 30, 2015 — Beverley BevenFlorez-CDJ STAFF
Scott Calkins and Anthony Gaeta of Collinsworth, Specht, Calkins & Giampaoli, LLP obtained a defense verdict in a breach of fiduciary duty action involving a high-rise condominium in downtown San Diego, California. The Association asked for excess of over $3 million, however, the jury returned with a 10-2 defense verdict in favor of K. Hovnanian. “While it is now becoming ever more common for attorneys representing homeowners associations to allege a breach of fiduciary duty by the developer, there has been little actual litigation of the issues surrounding those claims which test the viability of the allegations or the defenses to them,” defense attorney Anthony Gaeta stated. “A breach of a fiduciary duty by a developer, which is demonstrated to damage the viability of an HOA either to perform regularly scheduled maintenance, or replace building components from its reserves, has the potential in economic terms to surpass the damages from purported construction defects.” Read the full story... Read the court decision
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Massachusetts High Court to Decide if Insurers Can Recoup Defense Costs

February 07, 2018 — Craig O'Neill - Complex Insurance Coverage Reporter
The Massachusetts Supreme Judicial Court (SJC) is set to hear argument on February 6 in a case that will decide whether insurers can recoup defense costs if it is later determined that they owed no duty to defend an underlying claim. At issue in Holyoke Mut. Ins. Co. v. Vibram USA, Inc., No SJC-12401, is Read the court decision
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Reprinted courtesy of Craig O'Neill, White and Williams, LLP
Mr. O'Neill may be contacted at oneillc@whiteandwilliams.com

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Pennsylvania Supreme Court’s Ruling On Certificates Of Merit And “Gist Of Action” May Make It More Difficult For An Architect Or Engineer To Seek An Early Dismissal

January 07, 2015 — Jerrold P. Anders and Michael W. Jervis - White and Williams LLP
In Bruno v. Erie Ins. Co., the Pennsylvania Supreme Court clarified the gist of the action doctrine that distinguishes between tort and contract claims. In doing this, the Court also ruled that a Certificate of Merit in a professional liability claim is necessary only if the plaintiff is in a direct client relationship with the licensed professional. This clarification of the Certificate of Merit requirement may limit the ability of architects and engineers to obtain an early dismissal in lawsuits. Bruno v. Erie Ins. Co. involves a common scenario. The Brunos filed a claim with their homeowners’ insurer after discovering mold in their home during remodeling. The policy included an endorsement providing coverage for mold. As part of the claim adjustment, Erie hired an engineer to inspect the mold and to provide an opinion on its severity to determine the extent of remediation required. The engineer hired by Erie reported to Mr. Bruno that the mold was harmless, that concern over health problems due to mold was merely a “media frenzy,” and that the Brunos should continue with their renovations. Reprinted courtesy of Jerrold P. Anders, White and Williams LLP and Michael W. Jervis, White and Williams LLP Mr. Anders may be contacted at andersj@whiteandwilliams.com Mr. Jervis may be contacted at jervism@whiteandwilliams.com Read the court decision
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