Construction Litigation Roundup: “Wrap Music to an Insurer’s Ears?”
February 05, 2024 —
Daniel Lund III - LexologyThe general contractor on a New Orleans condominium construction project obtained a Contractor Controlled Insurance Program/CCIP policy or "Wrap-Up" policy for the job.
An accident occurred on the job when a construction elevator/hoist fell, injuring several workers. The elevator/hoist was provided by a subcontractor, pursuant to a rental agreement and related subcontract with the general contractor. Contained within the subcontract was a provision which states that the general contractor "has arranged for the Project to be insured under a controlled insurance program (the "CCIP" or "WrapUp"),” and that the CCIP shall provide "commercial general liability insurance and excess liability insurance, in connection with the performance of the Work at the Project site."
A third-party administrator for the wrap-up policy had been in communication with the subcontractor prior to the commencement of the work, “specifically advising that insurance coverage was not automatic” and providing the subcontractor with an enrollment form for the CCIP. Ultimately, the subcontractor “declined to comply with the request,” stating that the subcontractor would "not participate in paying any wrap insurance premiums" – because the subcontractor had its own insurance.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Traub Lieberman Attorneys Recognized in the 2023 Edition of The Best Lawyers in America®
September 19, 2022 —
Traub LiebermanTraub Lieberman is pleased to announce that five Partners have been selected by their peers for inclusion in the 2023 edition of The Best Lawyers in America®. In addition, four attorneys have been included in the 2023 Best Lawyers®: Ones to Watch list. These recognitions include attorneys from the firm’s Hawthorne, NY; Chicago, IL; Palm Beach Gardens, FL; and St. Petersburg, FL offices.
2023 Best Lawyers®
Hawthorne, NY
- Lisa L. Shrewsberry – Commercial Litigation
Chicago, IL
- Brian C. Bassett – Insurance Law
Palm Beach Gardens, FL
- Rina Clemens – Personal Injury Litigation – Defendants
St. Petersburg, FL
- Scot E. Samis – Appellate Practice
- Lauren S. Curtis – Insurance Law
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Traub Lieberman
Review of Recent Contractors State License Board Changes
February 27, 2023 —
Alexander Moore - Kahana FeldCalifornia’s Contractors State License Board (CSLB) was established in 1929 to protect California residents through licensing and regulating contractors working in the state. Today, the CSLB licenses approximately 290,000 contractors, utilizing forty-four different classifications. Each licensing classification specifies the type of contracting work permitted by that classification.
The CSLB website (www.cslb.ca.gov) contains a wealth of information for contractors and non-contractor consumers alike. Consumers can use the website’s features to check the history and business information of contractors, searching via license number, business name, or individual name. License applicants can use the website for instructions and forms for the application process. Contractors can use the website for renewals, regulations, and various resources.
One the CSLB’s most important roles is assisting contractors with keeping track of the multitude of state regulations, and periodic changes thereto, that apply to those in the construction trades. The CSLB posts periodic Industry Bulletins which provide helpful guidance and reminders of important construction topics. At year end, the CSLB issues a bulletin to update licensees of the changes to California Law that will become effective on the first of January in the coming year. Below are four of the more interesting and impactful statutory changes.
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Alexander Moore, Kahana FeldMr. Moore may be contacted at
amoore@kahanafeld.com
Corporate Formalities: A Necessary Part of Business
February 18, 2020 —
Hannah Kreuser - Porter Law GroupMany benefits exist in choosing to create a corporation or limited liability company (“LLC”) as your business entity. However, what attracts most people to these entities is the protection they afford the business owner(s) against personal liability for the business’ obligations, debts, and other liabilities. Whatever reason prompts your decision to form a corporation or LLC, if you are like many smaller businesses, once the formation process is over its back to business as usual.
However, in order to keep the protection against personal liability associated with a corporation or LLC, the business must engage in, what are known as corporate formalities. Corporate formalities are formal actions that must be taken by a corporation or LLC in order to maintain the benefits associated with that business entity. These corporate formalities may be required under California law, by the bylaws, and/or by the operating agreement of your business.
When your business is formed as a corporation, many of the corporate formalities exist as part of California’s Corporations Code (“CCC”). These formalities include: (1) holding annual meetings (CCC § 600); (2) regularly electing directors (CCC § 301); (3) keeping meeting minutes (CCC § 1500); and (4) maintaining accurate corporate records (CCC § 1500). While these are only a few of the corporate formalities existing for corporations in the State of California, these formalities are often overlooked or put off by smaller businesses because they are either unknown to the business or are intended to be complied with later, as the actual running of the business takes priority.
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Hannah Kreuser, Porter Law GroupMs. Kreuser may be contacted at
hkreuser@porterlaw.com
Summary Judgment in Construction Defect Case Cannot Be Overturned While Facts Are Still in Contention in Related Cases
September 09, 2011 —
CDJ STAFFThe Alabama Court of Civil Appeals has dismissed an appeal of a summary judgment in the case Bella Investments, Inc. v. Multi Family Services, Inc. MFS was hired by Bella to be the general contractor for a hotel in Gardendale, Alabama. MFS hired various subcontractors, including the architect for the project. After completion of the hotel in April, 2006, Bella made requests for MFS to repair cracked floor tiles.
In August, 2008, Bella sued MFS, the architect, and various fictitiously named defendants. Subsequently, Bella amended its complaint, naming some of the fictitiously named defendants.
MFS in turn claimed that Bella’s claims were void under the statute of limitations and that Bella was in beach of contact by failing to pay MFS the full amount owed. MFS moved for summary judgment under the statute of limitations, which was granted by the court.
Bella requested that the court “alter, amend, or vacate its summary judgment order.” When this was denied, Bella appealed to the Alabama Supreme Court, which transferred the appeal to the Court of Civil Appeals. The Court of Appeals refused to vacate the summary judgment as claims that form part of the case against MFS are also part of Bella’s claims against the other defendants. For this reason, the court upheld the summary judgment.
Read the court’s decision…
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Chapman Glucksman Press Release
October 17, 2022 —
Chapman GlucksmanChapman Glucksman Dean & Roeb, a Los Angeles based law firm, has unveiled a dynamic new brand. The firm will now be known as “Chapman Glucksman.” The name change reflects the forward thinking and creative approach that the firm brings to its client service. “Chapman Glucksman has always been a firm of innovative thinkers with a keen focus on obtaining very favorable results for our clients. Our new brand captures the firm’s energy and focus,” said Craig Roeb, a shareholder who has spent his entire legal career with the firm. “We are excited about the growth of Chapman Glucksman, with the recent addition of new shareholder, Greg Sabo, partners, Chelsea Zwart and David Weinberger, as well as six new associate attorneys. The continued growth of Chapman Glucksman is a reflection of our strong client loyalty and growth,” said Randall Dean, shareholder and head of the Professional Liability Practice Group.
Founded in 1985, Chapman Glucksman is a multi-faceted law firm with offices in Los Angeles, Orange County, Bay Area and Palm Springs. Our AV rated firm has diverse practice groups consisting of highly skilled, experienced, insightful, responsive, pragmatic and creative lawyers who vigorously advocate our client’s interests, and secure result-oriented, favorable and creative solutions to complex issues. Our achievements derive directly from our commitment to providing our clients with an unparalleled level of attention, exceptional work product and a strong work ethic with outstanding results achieved.
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Chapman Glucksman
Massachusetts Judge Holds That Insurer Breached Its Duty To Defend Lawsuit After Chemical Spill
October 16, 2018 —
Lawrence J. Bracken, II & Alexander D. Russo - Hunton Insurance Recovery BlogA District Court Judge for the District of Massachusetts recently ruled that Ace Property and Casualty Insurance Co. breached its duty to defend its insured in a lawsuit brought by Plaistow Project, LLC, after a family owned laundromat leaked chemicals onto Plaistow Project’s property. Plaistow Project, LLC v. ACE Prop. & Cas. Ins. Co., No. 16-CV-11385-IT, 2018 WL 4357480, (D. Mass. Sept. 13, 2018). Plaistow Project sued State Line Laundry Services in state court, and ACE denied coverage under the pollution exclusion in State Line Laundry’s insurance policy. Plaistow Project then settled with State Line Laundry. Under the settlement terms, Plaistow Project was assigned State Line Laundry’s rights against ACE.
In the subsequent coverage litigation, Plaistow Project alleged that ACE had breached its duty to defend State Line Laundry under its insurance policy. ACE argued that (1) the burden was on the policyholder to demonstrate that the policy’s “sudden and accidental” exception applied to the policy’s pollution exclusion; and (2) the policyholder could not show the “sudden and accidental” exception applied based on the complaint.
Reprinted courtesy of
Lawrence J. Bracken, II, Hunton Andrews Kurth and
Alexander D. Russo, Hunton Andrews Kurth
Mr. Bracken, may be contacted at lbracken@HuntonAK.com
Mr. Russo may be contacted at arusso@HuntonAK.com
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Timely and Properly Assert Affirmative Defenses and Understand Statutory Conditions Precedent
August 05, 2024 —
David Adelstein - Florida Construction Legal UpdatesA recent case serves as a reminder to TIMELY and PROPERLY assert affirmative defenses and to understand statutory conditions precedent to construction lien claims. Failing to do one or the other could be severely detrimental to the position you want to take in a dispute, whether it is a lien foreclosure dispute, or any other dispute.
In Scherf v. Tom Krips Construction, Inc., 2024 WL 3297592 (Fla. 4th DCA 2024), the president of a construction company and his wife were building a residence. They orally accepted the proposal from the concrete shell contractor and asked for invoices to be submitted to the president’s construction company. No written contract was memorialized. The president and his wife did not pay the concrete shell contractor and the contractor recorded a lien and sued to foreclose on the lien. Years later (the case had been stayed because the president and his wife filed for bankruptcy and the shell contractor had to get leave of the automatic bankruptcy stay to pursue the lien foreclosure), the shell contractor moved for summary judgment. The president and his wife moved for leave to file an amended answer and affirmative defenses. They claimed the oral contract was with the construction company and the shell contractor was required to serve a Notice to Owner under
Florida Statute s. 713.06. Alternatively, they argued that if the oral contract was with the president and his wife, the shell contractor was required to serve a Final Contractor’s Payment Affidavit at least 5 days before filing its lien foreclosure claim, and did not, as required by s. 713.06.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
