Traub Lieberman Partner Lisa M. Rolle Obtains Summary Judgment in Favor of Defendant
April 19, 2021 —
Lisa M. Rolle - Traub LiebermanTraub Lieberman Partner Lisa M. Rolle obtained summary judgment in favor of defendant SRI Fire Sprinkler, LLC, a family-owned and operated fire sprinkler company which generally provides fire sprinkler installation, inspection, and maintenance services throughout the Northeast and New England. The judgment was determined pursuant to CPLR 3211(a)(5) on the grounds that Philadelphia Indemnity Insurance Company’s (Plaintiff) negligent construction claim accrued on the date when work was completed at the premises, not on the date of the incident as alleged in the Plaintiff’s complaint. In the underlying subrogation action, the Plaintiff commenced the action in subrogation of its insured, Bet Am Shalom Synagogue (Bet Am), to recover damages in excess of $173,390.86 which it allegedly paid to Bet Am for water damage cleanup and remodeling after certain sprinkler pipes froze and burst in the recently constructed wing of the Westchester synagogue on January 1, 2019 and January 7, 2019. The Plaintiff alleged that its subrogor, Bet Am, sustained interior water damage on the first floor and basement levels of the premises, including the carpets, drywall, insulation, bathroom, kitchen and appliances, dining room, hallways, closets, basement storage rooms and supplies, and basement classrooms.
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Lisa M. Rolle, Traub LiebermanMs. Rolle may be contacted at
lrolle@tlsslaw.com
Unfair Risk Allocation on Design-Build Projects
June 13, 2022 —
Brian Perlberg, Executive Director of ConsensusDocs Coalition & AGC Senior CounselThe AGC annual convention included a session entitled “Who’s on the Hook for Design Defects in Design-Build Projects.”
Fox Rothschild’s Dirk Haire, Les Synder of Infrastructure Construction Brightline West, and David Hecker of Kiewit presented. Attendees crowded into a standing-only room because more and more builders are facing design liability, especially design-builders on large infrastructure projects. The presentation highlighted how some owners abuse the submittal process on design-build jobs to make changes without compensating the builder with more time, money, or both. One project took a sample of owner comments and extrapolated that just one project generated over 15,000 submittals and generated over 110,000 comments of “concern” or “preference.”
Certain owner-representatives and attorneys for owners have oversold the risk allocation transfer aspect of design-build. The Spearin Doctrine protects a builder from design documents containing errors by entitling them to receive equitable compensation. The design-build project delivery method erodes potential Spearin protections. Ways that an owner may retain some design responsibility and bring Spearin protections back into play for a builder include the following:
- Accuracy of reports prepared by owner’s outside consultants
- Owner’s design approval process
- Viability of owner’s stated design and project criteria
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Brian Perlberg, ConsensusDocs
Investigators Eye Fiber Optic Work in Deadly Wisconsin Explosion
July 18, 2018 —
Jeff Yoders – Engineering News-RecordA hole punched into a 4-in.-dia gas pipeline during fiber-optic line laying is blamed for an explosion that killed a 34-year-old fire captain and injured nine other people, including four firefighters, in downtown Sun Prairie, Wis., on July 10. The injured were treated at nearby hospitals and have since been released.
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Jeff Yoders, ENRMr. Yoders may be contacted at
yodersj@enr.com
Hawaii Federal District Court Compels Appraisal
December 03, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Hawaii federal district court denied the insurers' motion to dismiss on forum non convenient grounds and granted the insured's motion to compel arbitration. BRE Hotels and Resorts LCC, et al. v. Ace Am Ins. Co., et al., 2024 U,.S. Dist. LEXIS 163852 (D. Haw. Sept. 11, 2024).
BRE Hotels & Resorts LLC (BRE) owned the Grand Wailea Resort on Maui and the Turtle Bay Resort on Oahu. Both hotels were damaged by a rainstorm on March 9, 2021. Estimated losses exceeded $55 million. BRE filed a claim with its sixteen insurers. BRE sought $46 million in four categories: business interruption losses at the Grand Wailea ($29.6 million); damaged tiles at the Grand Wailea ($8.3 million); furniture, fixtures, and equipment at Turtel Bay ($6.2 million); and an assortment of ancillary issues at both properties ($1.9 million).
The insurers investigated and took issued with BRE's estimates. The insurers contended that most of the tiles suffered from an independent defect and were not damaged by the storm, that the insurance policies did not cover the replacement of undamaged furniture, and that the claimed business interruption losses were too high. The insurers paid $4 million.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Subcontractor’s Miller Act Payment Bond Claim
September 07, 2017 —
David Adelstein - Florida Construction Legal UpdatesSince I wrote my ebook on the application of federal Miller Act payment bonds, I have not discussed a case applying the Miller Act. Until now!
Below is a case that reinforces two important points applicable to Miller Act payment bond claims. First, the case reinforces what a claimant needs to prove to establish a Miller Act payment bond claim. Very important. Second, the case reinforces that a subcontractor is going to be governed by its subcontract. This means that those provisions regarding payment and scope of work are very important. Not that you did not already know this, but ignoring contractual requirements will not fly.
In U.S.A. f/u/b/o Netplanner Systems, Inc. v. GSC Construction, Inc., 2017 WL 3594261 (E.D.N.C. 2017), a prime contractor hired a subcontractor to run cabling and wiring at Fort Bragg. The subcontractor claimed it was owed a balance and filed a lawsuit against the general contractor the Miller Act payment bond.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com
A Quick Virginia Mechanic’s Lien Timing Refresher
February 27, 2023 —
Christopher G. Hill - Construction Law MusingsAs those who read Construction Law Musings on a regular basis know,
mechanic’s liens are a big part of my construction law practice. These
tricky and strictly enforced statutory collection tools are very powerful when correctly recorded and utterly useless if they aren’t recorded in a timely fashion and with the correct information contained within them. Couple that fact with recent
changes to the mechanic’s lien form in 2019, and I feel the need to give a quick refresher.
If you’ve kept up with Musings, you know about the two big numbers for Virginia mechanic’s lien timing, 90 and 150. These should be kept in mind for every general contractor, subcontractor, or supplier on any construction project in Virginia.
Virginia Code Section 43-4 sets out the reasons to keep these numbers in mind. The code section sets out why you need to know these numbers.
The 90 refers to the deadline for recording a lien. This number affects the right to a lien in Virginia. In order to preserve lien rights, a construction contractor must record the lien within ninety days of the last day of the last month in which the last work was performed or no later than ninety days from the date of completion of the project or other termination of work. The short version is that most general contractors on commercial projects have 90 days from the last work in which to record their lien and most subcontractors have 90 days from the last day of the last month of work. However, the best practice is to simply calculate the 90 days from the last work performed or material supplied to avoid issues and arguments between attorneys regarding timing.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Construction Contract Basics: Attorney Fee Provisions
November 13, 2023 —
Christopher G. Hill - Construction Law MusingsI have discussed the need for
attorney fee provisions in your construction contracts in prior posts here at Construction Law Musings, but thought it merited a restatement of the reasons for the inclusion of such fee provisions (and changing of such provisions when presented) here with the second of my
construction contract basics posts.
Why would you want such a provision? The answer is that without it, or a statute specifically allowing for such fees, a Virginia court will not award your attorney fees without such a provision. Virginia, and a lot of other states, follow the so-called “American Rule” when it comes to attorney fees and costs. In short, that rule states that the parties to litigation pay their own way unless they agree otherwise. While it may seem unfair to make a successful litigant pay for the privilege of being right, that is the rule in Virginia. Throw in the fact that Virginia courts
strictly construe construction contracts and voila we have a situation where without a provision in the contract stating that one party or both will be able to collect attorney fees should that contractor or subcontractor prevail, a construction professional that gets sued (whether rightly or wrongly) will be left with a hefty attorney fees bill and no way to recoup those fees through the courts or any other method.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
New Executive Orders Expedite the Need for Contractors to Go Green
August 22, 2022 —
Vince Calio - Construction ExecutiveThe importance of going green just became even more crucial for small construction companies, as President Joe Biden signed three executive orders on June 6, 2022, aimed at boosting clean energy construction projects and the use of domestically manufactured clean energy technology.
Specifically, the orders require the U.S. Department of Energy to deploy the use of the Defense Production Act of 1950 to expand American manufacturing of solar panel parts, environmentally friendly building insulation, heat pumps, equipment for making clean power-generating fuels and critical power grid infrastructure. Federal construction contracts will also require local contractors to use eco-friendly materials.
According to an announcement from the White House, the order will encourage the use of project labor agreements that offer wages “above and beyond the prevailing rate and include local hire provisions.” The order will also encourage clean construction projects in low-income areas burdened by legacy pollution.
Reprinted courtesy of
Vince Calio, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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