Sustainability Is an Ever-Increasing Issue in Development
November 21, 2022 —
Scott L. Baker - Los Angeles Litigation BlogBusinesses must be open to change. It is essential to survive in the business world, regardless of the industry. This goes hand-in-hand with the necessity to change along with consumer needs and values as well.
With the increasing emphasis on sustainability across industries, many businesses have had to make their processes and products more environmentally friendly. However, in terms of real estate construction, there are some challenges.
SUSTAINABILITY IN NEW CONSTRUCTION IS NOW A MATTER OF LAW – NOT JUST A PREFERENCE
The push to become greener comes from many fronts. Property owners, potential buyers and even lawmakers all expect the real estate industry to go greener. For example, homeowners and businesses often want their properties to meet their personal values of sustainability.
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Scott L. Baker, Baker & AssociatesMr. Baker may be contacted at
slb@bakerslaw.com
New York Office Secures Appellate Win in Labor Law 240(1) Fall in Basement Accident Case
March 20, 2023 —
Nicholas P. Hurzeler & Gregory S. Katz - Lewis BrisboisNew York, N.Y. (March 14, 2023) – New York Appellate Partner Nicholas P. Hurzeler and Managing Partner Gregory S. Katz recently prevailed when the New York Appellate Division, Second Department affirmed the dismissal of a Labor Law 240(1) claim involving an accident that occurred in the basement of a house under construction. Balfe v. Graham, ___ AD3d ___ (2d Dept. 2023), decided March 8, 2023.
In this matter, the plaintiff was installing ductwork in the basement of a house that had been stripped down to its foundation when he stepped backwards into an open hole that had been dug out of a concrete floor to accommodate the installation of an ejector pump. The lower court dismissed the plaintiff’s claim based on Labor Law 240(1), and he appealed. The plaintiff argued that he fell into an unprotected opening that should have been covered or barricaded. He further claimed the accident qualifies as a typical “falling worker” case within the scope of Labor Law 240(1), citing the depth of the hole needed to accommodate the ejector pump, and the size of the pump. Under the case law, a worker who falls into an uncovered opening on a construction site will typically be covered by Labor Law 240(1).
Reprinted courtesy of
Nicholas P. Hurzeler, Lewis Brisbois and
Gregory S. Katz, Lewis Brisbois
Mr. Katz may be contacted at Greg.Katz@lewisbrisbois.com
Mr. Hurzeler may be contacted at Nicholas.Hurzeler@lewisbrisbois.com
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Houses Can Still Make Cents: Illinois’ Implied Warranty of Habitability
March 01, 2011 —
Marisa L. SaberIn a report published earlier this week Marisa L. Saber writes about the implied warranty of habitability in the context of construction defect litigation. The piece speaks of the difficulties in alleging tort theories against builders and vendors in light of Illinois’ expansion of the economic loss doctrine, and how the implied warranty of habitability may provide another avenue for recovery.
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The Ups and Downs of Elevator Maintenance Contractor's Policy Limits
October 03, 2022 —
Richard W. Brown & Sarah J. Markham - Saxe Doernberger & Vita, P.C.The December 2021 First Department decision in Nouveau Elevator Indus. v. New York Marine & General Ins. Co. is pushing some buttons in the elevator industry, given the significant implications it may have on the adequacy of policy limits for elevator service companies operating in New York state.
The Court held in Nouveau that monthly elevator maintenance work performed under an ongoing service agreement is considered “completed operations” for purposes of applying policy limits. Specifically, the Court found that the per location policy limits are not implicated here, and instead held that the products-completed operations aggregate limit applies to completed work, which expressly includes “that part of the work done at a job site [that] has been put to its intended use.”
Facts of the Case
Nouveau provides elevator maintenance and service in the greater New York city region. Its work is done in multiple buildings and locations throughout the city. Nouveau purchased six commercial general liability (CGL) policies from New York Marine for consecutive one-year periods. Each of the CGL policies provides a liability limit of $1 million, with an aggregate limit of $2 million, per accident or occurrence.
Reprinted courtesy of
Richard W. Brown, Saxe Doernberger & Vita, P.C. and
Sarah J. Markham, Saxe Doernberger & Vita, P.C.
Mr. Brown may be contacted at RBrown@sdvlaw.com
Ms. Markham may be contacted at SMarkham@sdvlaw.com
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Points on Negotiating Construction Claims
December 30, 2013 —
CDJ STAFFEugene Heady of Smith Currie and Hancock offers some pointers on the effective negotiation of construction claims. He notes that “claims and disputes in the construction industry are commonplace,” but that “settlement usually comes after much pain, suffering, and expense.” He offers nine points to consider when negotiating construction claims.
His first two points are to develop a claim position and then document that claim. He says that “the facts underlying the claim should be nonnegotiable.” The documentation “suggests to your opponent that you have done your homework and are serious about the pursuit of your claim.” He also notes that you need to understand the strengths and weaknesses of your position.
On the other side, you need to “understand your opponent’s positions,” and also “your opponent’s strengths.” He points out that “an appreciation for what is truly important to your opponent is the starting point for the development of creative solutions to the dispute.
Further, bargaining should be done in good faith, negotiation should be done on the merits, and you are well advised to “choose a seasoned and skilful negotiator. “A prolonged and expensive legal battle is not likely to change the outcome,” he warns.
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There is No Presumptive Resumption!
January 21, 2025 —
Daniel Lund III - LexologyA Louisiana school board filed suit in court in 2018 on a construction project but was rebuffed based upon arguments by the general contractor and surety defendants. Those defendants asserted that the court filings were premature, based upon an arbitration clause in the general contract. The trial court agreed and stayed the litigation, “pending completion of arbitration.”
Arbitration was never filed. Interestingly, within the arbitration clause, the following language existed: “For statute of limitations purposes, receipt of written demand for arbitration shall constitute the institution of legal or equitable proceedings based upon the Claim.”
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Changes and Extra Work – Is There a Limit?
October 09, 2018 —
Joseph R. Young - Smith CurrieDesign and construction changes can be a challenge for everyone involved in a construction project. Designers and contractors endeavor to deliver a project that meets the owner’s needs, budget, and aesthetic considerations. As a project comes to fruition, the project frequently changes, and the parties must address and resolve the financial considerations of those changes and implement the changes at the project level. Often times the most critical aspect of a contractor’s financial success or failure of a construction project is its ability to manage changes. Contractors are sometimes faced with changes that are beyond the reasonable expectation of the original undertaking and have significant planning, scheduling, and cost implications that may not be considered or addressed in the contract’s changes clause. Changes of this magnitude may be considered “cardinal changes” and provide the contractor with recourse beyond restrictions imposed by the contract’s changes clause. But cardinal change is a risky basis for a contractor to refuse to perform additional or changed work. Even major changes can probably be more safely handled within the terms of the contract’s changes clause.
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Joseph R. Young, Smith CurrieMr. Young may be contacted at
jryoung@smithcurrie.com
Florida Enacts Sweeping Tort Reform Legislation, Raising Barriers to Insurance Coverage Claims
April 18, 2023 —
Walter J. Andrews, Andrea DeField & Jae Lynn Huckaba - Hunton Insurance Recovery BlogAs discussed in a recent
client alert, on March 24, 2023, Florida Governor Ron DeSantis signed House Bill (HB) 837 into law, making it more difficult and costly for insurance policyholders of all sizes to sue insurers for bad faith by eliminating fee-shifting for most policyholders and requiring something “more than” negligence for bad faith claims.
HB 837’s Impact on Insurance Coverage Claims:
HB 837 is another in a series of reform legislation recently passed in Florida that significantly impacts policyholders’ ability to hold their insurers accountable for the wrongful failure to pay benefits due under the insurance contract. Recent efforts include last year’s repeal of the one-way fee-shifting statute for claims brought under residential and commercial property insurance policies. Previously, the fee-shifting statute allowed policyholders to recover attorneys’ fees from their insurers when the policyholder prevailed in a coverage action. HB 837 repeals
Section 627.428 of the Florida Statutes entirely, extending the repeal of the one-way fee-shifting statute to all types of insurance coverage disputes—not just those under residential and commercial property insurance policies.
Reprinted courtesy of
Walter J. Andrews, Hunton Andrews Kurth,
Andrea DeField, Hunton Andrews Kurth and
Jae Lynn Huckaba, Hunton Andrews Kurth
Mr. Andrews may be contacted at wandrews@HuntonAK.com
Ms. DeField may be contacted at adefield@HuntonAK.com
Ms. Huckaba may be contacted at jhuckaba@HuntonAK.com
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