Court Retained Jurisdiction to Enforce Settlement Under Code of Civil Procedure Section 664.6 Despite Dismissal of Complaint
October 21, 2024 —
Garret Murai - California Construction Law BlogAttorneys will commonly add a Code of Civil Procedure section 664.6 provision in their settlement agreements to ensure that courts have continuing jurisdiction to enforce the terms of a settlement, as opposed to having to file a new complaint in the event of a breach of a settlement agreement.
Oral settlements before a trial court are also enforceable under Section 664.6, but as discussed in Eagle Fire and Water Restoration, Inc. v. City of Danuba, Case No. F086052 (May 30, 2024), in cases involving a complaint and multiple cross-complaints, questions can arise as to whether a trial court has in fact retained jurisdiction under Section 664.6 to enforce an oral settlement and even what the terms of the settlement were.
The Eagle Fire Case
Eagle Fire and Water Restoration, Inc. was hired by the City of Dinuba to reroof the City’s police station and courthouse building. The contract was for approximately $500,000. Before completion of the project, a rainstorm caused significant water damage to the interior of the building. The City incurred over $330,000 in clean-up and repair costs and withheld approximately $319,000 from Eagle as an offset.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Building a Case: Document Management for Construction Litigation
October 07, 2019 —
Robert A. Gallagher, Jane Fox Lehman, & Michael I. Frankel, Pepper Hamilton LLP - ConsensusDocsSuccess in construction litigation often turns less on counsel’s ability to craft legal arguments and more on counsel’s ability to gather, master and present the often complex set of facts underlying the case. In construction matters, most of the key facts are found in documents: contract documents, drawings, plans and specifications, schedules, submittals, progress reports, daily logs, change orders, invoices and payment records. Nowadays, these documents will almost certainly be created, exchanged and stored electronically; many will never exist in hard copy. As such, timely collection, organization and analysis of electronically stored information (ESI) is crucially important in construction litigation.
The construction industry has always involved a large quantity of records. Today, the majority of those records exist only as ESI: Design professionals use computer-aided design (CAD) software to create construction plans. Construction managers use Primavera or similar software to create schedules and workflows. Estimators use job cost control programs. Innovative firms capture digital photos of the project, from mobilization through the punch process.
Because ESI is created and exchanged at a higher rate than hard-copy documents, ESI has facilitated a dramatic increase in the volume of records associated with construction projects. Further compounding the increase is the proliferation of mobile devices. With a smartphone in every pocket, ESI creation has moved out of the home office and the site trailer and onto the site itself. As the volume of ESI expands, so too does the time and expense associated with storing, processing, reviewing and producing these records. This article will cover strategies for balancing time and expense with the requirements of the rules and the needs of the case.
Reprinted courtesy of Pepper Hamilton LLP attorneys
Robert A. Gallagher,
Jane Fox Lehman and
Michael I. Frankel
Mr. Gallagher may be contacted at gallagherr@pepperlaw.com
Ms. Lehman may be contacted at lehmanj@pepperlaw.com
Mr. Frankel may be contacted at frankelm@pepperlaw.com
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Construction Litigation Roundup: “It’s One, Two… Eight Strikes: You’re Out!”
May 28, 2024 —
Daniel Lund III - LexologyIn a matter handled by this writer and the Phelps firm for various insurance companies, the insurers sought to be extricated from a $51,000,000+ arbitration and prevailed, securing a preliminary injunction from a federal district court in New Orleans.
The dispute centers on the contract between the designer for the new terminal facility at the Louis Armstrong New Orleans International Airport and a claim by the airport board against the designer team as well as the insurers for the designers.
The principal design contract – to which the insurers were not parties – contains an arbitration clause. The airport board initiated an American Arbitration Association arbitration against the designers and their insurers, and the insurers sought relief from the court.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
California Appellate Court Confirms: Additional Insureds Are First-Class Citizens
May 04, 2020 —
Scott S. Thomas - Payne & FearsMany businesses shift risk by requiring others with whom they do business – e.g., vendors, subcontractors, suppliers, and others – to procure insurance on their behalf by making the business an “additional insured” under the other person’s liability insurance policy. Unfortunately, insurance companies sometimes treat these additional insureds as second-class citizens, refusing to acknowledge that the additional insured has the same rights as the policyholder, who paid the premium. In Philadelphia Indemnity Insurance Company v. SMG Holdings, a California appellate court removes any doubt whether these additional insureds are third-party beneficiaries entitled to the same rights – and bound by the same duties – as the entity that bought the policy.
While the dispute at issue in SMG Holdings was a narrow one – i.e., whether the additional insured was bound by the policy’s arbitration clause – the implications of its holding are far ranging in ways that, in some instances, may benefit the additional insured. For example, because the additional insured is an intended beneficiary under the policy, neither the insurer nor the policyholder may do anything to impair the additional insured’s rights under the policy; if they do, they may be liable for tortiously interfering with the additional insured’s contract rights. This means that (again, by way of example) if the insurer attempts to rescind, or cancel, or amend the policy in a way that impairs the additional insured’s rights, the additional insured may have recourse. It also means that if the policyholder does something untoward that jeopardizes the additional insured’s rights under the policy, the policyholder may be liable to the additional insured for any resulting harm.
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Scott S. Thomas, Payne & FearsMr. Thomas may be contacted at
sst@paynefears.com
Mandatory Energy Benchmarking is On Its Way
April 22, 2019 —
Christopher G. Hill - Construction Law MusingsWe have discussed the issue of benchmarking and energy reporting on several occasions here at Musings. As the January 18, 2010 issue of ENR Magazine discusses, now cities and states are getting on board in a big way.
Washington, D.C. began requiring building owners to use the EPA Energy Star Portfolio Manager tool on January 1, 2010 and New York City passed a similar measure in December. The D.C. law is the first to require mandatory public disclosure of energy performance. Such disclosure will create a public database of energy performance data.
While I understand that this data and its reporting will create energy accountability in a way that non-disclosure of this data would not, the possibilities for misuse or uses that impact the construction world abound. This energy reporting is a step beyond that of the LEED program in that the data is not just reported to the USGBC, but to a public database. As such, the ease of access will impact contracts and contractors in an even bigger way than the USGBC requirements.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Insurers Can Sue One Another for Defense Costs on Equitable Indemnity and Equitable Contribution Basis
March 21, 2022 —
Garret Murai - California Construction Law BlogSince I don’t do insurance defense work, fights between insurers isn’t something I have to deal with. It’s good sport nonetheless. In the next case, Travelers v. Navigators Specialty Insurance Company, Case No. D078852 (October 15, 2021), three of the biggies – Travelers, Navigators and Mt. Hawley – got into it over indemnity.
The Travelers Case
General contractor TF McGukin, Inc. was involved in a construction defect lawsuit with respect to a condominium project. TFM entered into subcontracts with several subcontractors including F&F Steel and Stairway, Inc and Calvac Paving which required the subcontractor to defend and indemnify TFM against any claims arising out of the subcontractor’s work. The subcontracts also required the subcontractors to name TFM as an additional insured.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Forcible Entry and Detainer Actions: Courts May Not Consider Tenant’s Hardship
December 08, 2016 —
Erica Stutman – Snell & Wilmer Real Estate Litigation BlogIf you own property and a tenant wrongfully refuses to vacate the premises (for example when the lease expires or after proper written notice of termination), you may have a quick and easy remedy to have the tenant removed. Arizona’s forcible entry and detainer (FED) statute allows a person to bring a speedy, summary action to obtain an order that the person must leave the property immediately. See A.R.S. § 12-1171 – 1183. To allow for quick resolution, the only question a court may consider in a FED action is who has the right of possession of the property. A.R.S. § 12-1177(A) (“On the trial of an action of forcible entry or forcible detainer, the only issue shall be the right of actual possession and the merits of title shall not be inquired into.”). Counterclaims and cross-claims are not permitted in a FED action, and must be addressed in a separate civil action between the parties. If factual questions bear on the right of possession, they will also need to be resolved in a regular civil action.
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Erica Stutman, Snell & Wilmer Ms. Stutman may be contacted at
estutman@swlaw.com
Notice of Claim Sufficient to Invoke Coverage
August 06, 2014 —
Tred R. Eyerly – Insurance Law HawaiiIndirect notice to the insurer was sufficient to trigger coverage for the additional insured under a liability policy. Spoleta Constr., LLC v. Aspen Ins. UK Ltd., 2014 N.Y. App. Div. LEXIS 5174 (N.Y. App. Div. July 11, 2014).
An employee of the subcontractor was injured at the construction project on October 20, 2008. The general contractor was named as an additional insured on the subcontractor's CGL policy with Aspen. Under the subcontract, the subcontractor also agreed to defend and indemnify the general contractor for all claims arising out of the subcontractor's work.
The general contractor did not receive notice of the accident until late December 2009 in a letter from the injured employee's attorney. On January 27, 2010, the general contractor's liability carrier sent a letter to the subcontractor giving notice of the employee's claim and requesting that the subcontractor put its carrier on notice. On February 9, 2010, the subcontractor sent to Aspen a claim form with the January 2010 letter attached.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com