Liquidating Agreements—Bridging the Privity Gap for Subcontractors
September 03, 2015 —
Craig Martin – Construction Contractor AdvisorWhat is a subcontractor to do when the owner has demanded additional work, but has refused to pay for it? Typically, a subcontractor cannot sue the owner because the subcontractor doesn’t have a contract with the owner. Perhaps the subcontractor and general contractor should enter into a liquidating agreement through which the general contractor can pursue the claim on behalf of the subcontractor.
Liquidating agreements bridge the privity gap between owners and subcontractors who sustain damages because of the others actions. Liquidating agreements or pass-through agreements grant the general contractor a release of its liability to the subcontractor after the general contractor prosecutes the subcontractor’s pass-through claim against the owner and gives the subcontractor any recovery.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Used French Fry Oil Fuels London Offices as Buildings Go Green
December 10, 2015 —
Siobhan Wagner – BloombergPricewaterhouseCoopers LLP’s office above Charing Cross railway station in London is cooled, heated and fueled by an unlikely source: used cooking oil.
The system, which helped the property become the greenest building in the U.K. capital, uses oil refined less than two miles away at London Bridge. It also helps prevent an invisible problem: “fatbergs” formed when oils dumped in drains and pipes congeal with baby wipes and diapers and block the city’s sewers.
“We’re using London’s waste to fuel a London office building,” said Jon Barnes, head of building at PwC. The system contributed toward a one-third reduction in electricity costs after a two-year refurbishment of the One Embankment Place office building that finished last year.
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Siobhan Wagner, Bloomberg
Professional Liability Client Alert: Law Firms Should Consider Hiring Outside Counsel Before Suing Clients For Unpaid Fees
March 31, 2014 —
David W. Evans and Blythe Golay - Haight Brown & Bonesteel LLPLaw firms seeking to recover attorney’s fees as the prevailing party in fee dispute litigation with their former client should hire outside counsel in order to avoid waiving any entitlement to such fees. Evaluating any potential exposure for a professional negligence claim or cross-claim before filing suit should also be considered. In Soni v. Wellmike Enterprise Company, Ltd., et al., No. B242288 (filed March 26, 2014) the California Court of Appeal for the Second District held that a law firm, represented by its own employees and associates, was not entitled to recover attorney fees as the prevailing party, pursuant to the attorney’s fee provision in the retainer agreement. The Soni decision is the latest addition to the general prohibition enunciated by Trope v. Katz (1995) 11 Cal.4th 274 (“Trope”) and its progeny that law firms are precluded from recovering attorney’s fees for self-representation.
In Soni, the law firm obtained a $28,384 judgment for delinquent legal fees against a former client. The firm then filed a motion for attorney’s fees, seeking $120,912 as the fees it incurred as the prevailing party under the retainer agreement. The trial court denied the motion based on the general rule set forth in the Trope line of cases that fees are not recoverable where the firm is represented by attorneys employed by the firm, despite the presence in the applicable retainer agreement of a clause notifying the client that fees the law firm would seek if it prevailed would include those for its in-house personnel.
Reprinted courtesy of
David W. Evans, Haight Brown & Bonesteel LLP and
Blythe Golay, Haight Brown & Bonesteel LLP
Mr. Evans may be contacted at devans@hbblaw.com; Ms. Golay may be contacted at bgolay@hbblaw.com
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Executive Insights 2024: Leaders in Construction Law
August 05, 2024 —
Construction ExecutiveThe key risks that should always be taken into account when a contract is signed are risks associated with uncompensated delays and cost increases. Provisions relating to the scope of work deserve significant attention to help minimize these risks. Defining the scope of work is often put on the backburner while parties focus on negotiating the rest of the terms and conditions of the contract. And when these scopes are inserted, they are often not closely reviewed by attorneys who tend to defer to project personnel on scope. These situations can lead to costly disputes.
Instead, make sure: (1) the correct plans and specifications have been referenced in the contract; (2) an attorney or his/her business counterpart is familiar with relevant specifications; (3) the exhibit containing the assumptions and clarifications is clearly written, has been coordinated with language in the body of the contract and can be clearly understood by attorneys and business people beyond the preconstruction personnel who drafted them; and (4) the contract addresses the order of precedence in the event of a conflict between or among contract provisions (including exhibits). With regard to specifications referenced above, an attorney review is advised because many specification sections, including submittal sections, change order sections, payment provisions and construction progress documentation sections, regularly vary from the negotiated sections of the actual contract. Contractors also unwittingly accept design risk through performance specifications, and the accompanying obligations and risks are underestimated by those tasked with the initial review of those documents. In sum, a clear scope is as important as clear terms and conditions.
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Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Assert a Party’s Noncompliance of Conditions Precedent with Particularity
July 26, 2017 —
David Adelstein - Florida Construction Legal UpdatesConstruction contracts oftentimes and should contain conditions precedent to payment. Conditions precedent apply to both progress payments and final payment. The conditions precedent operate such that payment is NOT due until the conditions are satisfied. The satisfaction of the conditions precedent triggers the payor’s obligation to pay.
If a dispute arises due to the payee’s noncompliance with conditions precedent to payment, the noncompliance should be asserted with particularity in the answer and affirmative defenses. For example, if a subcontractor was required to provide lien waivers and releases as a condition precedent to payment, then this should be asserted with particularity as an affirmative defense. If the contractor’s receipt of payment from the owner was a condition precedent to payment to the subcontractor (pay-when-paid), then this should be asserted with particularity as an affirmative defense. Any noncompliance with a condition precedent should be identified as an affirmative defense.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com
Insurer Must Defend and Indemnify Construction Defect Claims Under Iowa Law
February 23, 2017 —
Tred R. Eyerly – Insurance Law HawaiiApplying Iowa law, the federal district court found that the insurer had to defend and indemnify construction defect claims for damage to property caused by the insured's subcontractors. Van Der Weide v. Cincinnati Ins., 2017 U.S. Dist. LEXIS 4469 (N.D. Iowa Jan. 12, 2017).
Van Der Weide contracted with Bouma & Company, Inc. to construct a house in 1996. Before construction began, Bouma purchased a CGL policy and a separate umbrella policy from Cincinnati, which were in effect from January 30, 1996 to January 30, 1999.
Bouma used various subcontractors to build the home, including Elkato Masonry, which did the brick veneer and masonry work. The house was completed in February 1998 and Van Der Weide moved in during August 1998.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Latosha Ellis Joins The National Black Lawyers Top 40 Under 40
January 20, 2020 —
Hunton Insurance Recovery BlogLatosha M. Ellis, an associate in Hunton Andrews Kurth’s Insurance Coverage Practice, was recently named to The National Black Lawyers Top 40 Under 40 class of 2019.
The professional honorary association recognizes attorneys under 40 from each state who demonstrate superior leadership, reputation, influence, stature and profile as a black lawyer. Selection is by invitation only following a multi-phase review process that includes peer nominations and third party research.
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Hunton Andrews Kurth LLP
Court Extends Insurer Rights to Equitable Contribution
October 28, 2015 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Underwriters of Interest v. ProBuilders Specialty Ins. Co. (No. D066615; filed 10/23/15), a California appeals court refused to enforce an “escape” other insurance clause in an insurer versus insurer contribution action, refused to enforce a Contractors Special Conditions endorsement and found that equitable tolling applied to rule that a nondefending insurer was obligated to reimburse defense costs incurred defending the two insurers’ common insured.
Certain Underwriters provided CGL insurance to Pacific Trades Construction & Development in effect between October 23, 2001 and October 23, 2003. ProBuilders Specialty insured Pacific Trades from December 9, 2002 to December 9, 2004. When Pacific Trades was sued in construction defect actions arising out of the development and construction of single family homes, Underwriters provided a defense, while ProBuilders declined to participate. The case was ultimately settled and when Underwriters sued ProBuilders for contribution to the defense costs, the trial court granted summary judgment for ProBuilders, finding its other insurance clause precluded any obligation to contribute or reimburse Underwriters.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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