Anti-Fracking Win in N.Y. Court May Deal Blow to Industry
July 01, 2014 —
Chris Dolmetsch, Freeman Klopott and Jim Efstathiou Jr. – BloombergNew York’s cities and towns can block hydraulic fracturing within their borders, the state’s highest court ruled, dealing a blow to an industry awaiting Governor Andrew Cuomo’s decision on whether to lift a six-year-old statewide moratorium.
The case, closely watched by the energy industry, may invigorate local challenges to fracking in other states and convince the industry to stay out of New York even if Cuomo allows drilling. Pennsylvania’s highest court issued a similar ruling last year, striking down portions of a state law limiting localities’ ability to regulate drillers.
“This sends a really strong and clear message to the gas companies who have tried to buy their way into the state that these community concerns have to be addressed,” Katherine Nadeau, policy director for Environmental Advocates of New York, an anti-fracking group, said in a phone interview. “This will empower more communities nationwide.”
Mr. Dolmetsch may be contacted at cdolmetsch@bloomberg.net; Mr. Klopott may be contacted at fklopott@bloomberg.net; and Mr. Efstathiou Jr. may be contacted at jefstathiou@bloomberg.net
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Chris Dolmetsch, Freeman Klopott and Jim Efstathiou Jr., Bloomberg
Cutting the Salt Out: Tips for Avoiding Union Salting Charges
January 10, 2018 —
Wally Zimolong - Zimolong LLCThe strategy to avoid union salts is rather simple. But, simplicity does not mean easy. The process requires discipline. A salt is a paid union organizer that attempts to gain employment with a non-union employer for the purpose of either (a) organizing the employers workforce or (b) bringing a costly unfair labor practice charge for discriminatory hiring practices.
A “covert salt” is someone who conceals his union affiliation in order to gain employment with a non-union employer for the purpose of starting a union organizing campaign. Actually, conceal is an understatement. Covert salts actively lie to gain employment with a non-union employer. Covert salts apply for jobs under false names, social security numbers, and use bogus resumes.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Mitigate Construction Risk Through Use of Contingency
April 26, 2021 —
Laurie A. Stanziale - Construction ExecutiveMitigation of risk and costs in a construction project are always priorities for owners. In some contracts, in particular, Guaranteed Maximum Price contracts, some of those monetary risks are shifted to the contractor. Contingency is important because it allows for money to be in the budget for the unexpected and to keep the project moving, which benefits everyone.
WHAT IS CONTINGENCY?
Contingency is an amount of money built into the contractor’s price to complete the project to address unforeseen (although sometimes very common) costs that arise. This sum of money is generally referred to as the contractor’s contingency. The amount of the contingency is a balance struck between having money on hand to address the unexpected while also not unnecessarily tying up money that could otherwise be used for the project. Contingency is typically 5-10% of the hard costs. However, how the money is actually allocated during the project is not always well thought out, which can be the source of problems during the project.
The contractor’s contingency is not to be confused with an owner’s contingency (or reserve) which is outside of the contractor’s budget and generally used for owner driven changes to the project, such as changes to scope, design and schedule.
Reprinted courtesy of
Laurie A. Stanziale, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Hawaii Court of Appeals Affirms Broker's Liability for Failure to Renew Coverage
July 16, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe Hawaii Intermediate Court of Appeals affirmed the jury's finding that the broker was liable for failing to secure coverage for the insureds' home. Certain Underwriters at Lloyd's London v. Vreeken, 2014 Haw. App. LEXIS 322 (Haw. Ct. App. June 30, 2014).
Based upon their dealings with the broker, the insureds thought they had coverage for their home from March 3, 2004 to March 3, 2005 and from May 9, 2005 to May 8, 2006. The house was elevated nine feet above the ground for structural renovation, but collapsed on May 23, 2005. The original policy had lapsed on March 3, 2005. The second policy was voided because the application prepared by the broker stated there was no renovation work underway on the property.
The insureds sued. The jury found the broker and its agent liable for general, special and punitive damages. An appeal was filed. The ICA largely affirmed after addressing the many points raised on appeal.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
No Coverage Under Anti-Concurrent Causation Clause
October 02, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe policy's anti-concurrent causation clause blocked coverage for damage to the home caused by wind and flood. Clarke v. Travco Ins. Co., 2015 U.S. Dist. LEXIS 104267 (S.D.N.Y. Aug. 7, 2015).
The insured's home was located about twenty feet from the Hudson River. Hurricane Sandy caused the river to rise, creating damage to the insured's home. The insured did not have flood insurance. During the storm, water flooded the lower level of the house to a level of about four feet. Further, a wooden dock from another property, approximately fifteen feet by ten feet, entered the property and came to rest within the lower level.
The insured submitted a claim under his homeowner's policy to Travco Insurance Company. An investigator concluded that the cause of damage to the home was flood/water. The claim was denied.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
CGL Policies and the Professional Liabilities Exclusion
August 14, 2018 —
David Adelstein - Florida Construction Legal UpdatesCommercial general liability (CGL) policies for contractors traditionally contain a professional liabilities exclusion. This exclusion is generally added through a specific endorsement to eliminate coverage for professional services. Read the endorsement The point of the exclusion, in a nutshell, is simply to eliminate a CGL policy for a contractor serving as a professional liability policy.
Contractors need to appreciate a professional liabilities exclusion added through endorsement because oftentimes there are delegated design components they are responsible for. Perhaps the contractor value engineered a system and is responsible for engineering and signing and sealing the engineered documents (through its subcontractor) associated with that system. Perhaps there is a performance specification that requires the contractor to engineer a system. Perhaps there is a design-build component. Regardless of the circumstance, this professional liabilities exclusion can certainly come into play, particularly if a defect is raised with the design or professional services associated with the engineered system.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Court of Appeal: Privette Doctrine Does Not Apply to Landlord-Tenant Relationships
March 20, 2023 —
Garret Murai - California Construction Law BlogWe’ve talked a fair bit about the Privette doctrine which provides for a rebuttable presumption that a hirer is not liable for workplace injuries sustained by employees of hired parties.
We’ve also talked about its two exceptions: (1) The Hooker exception which provides for liability if the hirer retained control over the work being performed, negligently exercised that control, and its negligent exercise of that control contributed to an employee’s injury; and (2) the Kinsman exception which provides for liability if the hirer knew or should have known of a concealed hazard, that the hired party did not know of and could not have reasonably discovered, and the hirer failed to warn the hired party of the hazard.
The Privette doctrine is not the end all be all of landowner liability, however, as discussed in
Ramirez v. PK 1 Plaza 580 SC LP, 85 Cal.App.5th 252 (2022).
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Sub-Limit Restricts Insured's Flood Damage Recovery
March 15, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe insured's recovery for flood damage was controlled by the policy's sub-limit. David S. Brown Enters. v. Affiliated FM Ins. Co., 2020 U.S. Dist. LEXIS 239208 (D. Md. Dec. 18, 2020).
Roughly 6.6 inches of rain fell in Ellicott City, Maryland, causing extensive flooding. During the storm, a water main broke on Main Street, in relatively close proximity to the insured's two properties on Main Street. The foundations of the two properties washed away.
The insured, David S. Brown Enterprises (DSB), had a business owners' policy with Affiliated with covered 204 named locations. The Main Street Properties were not listed, but the policy also provided certain coverage for unnamed locations. The sub-limit applicable to unnamed locations was $1,000,000. The sub-limit for flood, however, was $50,000, annual aggregate "as respects Errors & Omissions, Off-Premises Service Interruption, Unnamed Locations and Supply Chain combined." Affiliated paid $50,000 for the loss based upon the $50,000 Flood annual aggregated Sub-Limit for Unnamed Locations. DSB disagreed that the $50,000 sub-limit applied and filed suit.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com