Flying Solo: How it Helps My Construction Clients
February 18, 2015 —
Christopher G. Hill – Construction Law MusingsTwo and a half years ago, on July 1, 2010, I opened my solo practice. At the time, I really had no insight into how big this change would be from a positive, customer service, perspective.
When I made the decision to go solo with my construction law practice, I knew I wanted to have flexibility to serve my client base of contractors and subcontractors in Virginia. I started some flat rate billing and had the ability to take cases that were below the dollar value of those that my old firm was willing to take. I also knew that I would be a master of my own destiny for better or worse (and it has been much more of the former than the latter).
What I did not realize is the impact that owning my own business would have on my perspective. I have always believed that, in most cases where construction disputes occur, mediation is a great option. However mediation only occurs with conflict. For any business, whether construction or otherwise, conflict creates expenses that were not likely to have been anticipated or built in to the budget. Litigation is not something that most businesses can, or should, build into their operating budgets.
Read the court decisionRead the full story...Reprinted courtesy of
Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
New York Court Narrowly Interprets “Expected or Intended Injury” Exclusion in Win for Policyholder
May 16, 2022 —
Michael S. Levine, Kevin V. Small & Joseph T. Niczky - Hunton Insurance Recovery BlogNL Industries recently prevailed against its commercial general liability insurers in the New York Appellate Division in a noteworthy case regarding the meaning of “expected or intended” injury and the meaning of “damages” in a liability insurance policy. In Certain Underwriters at Lloyd’s, London v. NL Industries, Inc., No. 2021-00241, 2022 WL 867910 (N.Y. App. Div. Mar. 24, 2022) (“NL Indus. II”), the Appellate Division held that exclusions for expected or intended injury required a finding that NL actually expected or intended the resulting harm; not merely have knowledge of an increased risk of harm. In addition, the court held that the funding of an abatement fund designed to prevent future harm amounted to “damages” in the context of a liability policy because the fund has a compensatory effect. NL Industries II is a reminder to insurers and policyholders alike that coverage is construed liberally and exclusions are construed narrowly towards maximizing coverage.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth,
Kevin V. Small, Hunton Andrews Kurth and
Joseph T. Niczky, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Small may be contacted at ksmall@HuntonAK.com
Mr. Niczky may be contacted at jniczky@HuntonAK.com
Read the court decisionRead the full story...Reprinted courtesy of
The Small Stuff: Small Claims Court and Limited Civil Court Jurisdictional Limits
June 10, 2024 —
Garret Murai - California Construction Law BlogSometimes the small stuff matters.
And when it comes to legal disputes this can pose a problem for clients as well as their attorneys because litigation and arbitration, the two most frequently utilized venues to resolve legal disputes in the United States, can be and usually are expensive.
Data on the cost of civil litigation is sparse. According to a 2013 survey of trial lawyers conducted by the National Center of State Courts, the median cost of litigating a contract dispute – which is the category that most construction disputes would fall under – is $90,575. And this is in 2013 dollars. With inflation, that number rises to nearly $120,000 in 2023, and based upon our experience litigating and arbitrating complex (and even not so complex) construction disputes, it can be many multiples over that.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Alaska Civil Engineers Give the State's Infrastructure a "C-" Grade
February 28, 2022 —
American Society of Civil EngineersJUNEAU, Alaska — The Alaska Section of the American Society of Civil Engineers (ASCE) today released preliminary findings from the 2021 Report Card for Alaska's Infrastructure, with the full report slated to be released in coming weeks. Alaska civil engineers gave 12 categories of infrastructure an overall grade of a 'C-' meaning the state's infrastructure is in mediocre condition and requires attention. Alaska has consistently maintained its transportation infrastructure, solid waste and energy sectors despite omnipresent environmental threats, seismic events, permafrost and shore erosion. However, some sectors such as drinking water, wastewater, and Alaska's marine highways have fallen behind due to a lack of funding to keep up with current and future needs. Civil engineers graded aviation (C), bridges (B-), dams (C), drinking water (D), energy (C-), marine highways (D), ports and harbors (D+), rail (C), roads (C), solid waste (C), transit (B-) and wastewater (D).
"Our systems and state agencies have demonstrated commendable resilience in the face of seismic events and other natural disasters," said David Gamez, co-chair, 2021 Report Card for Alaska's Infrastructure. "Unfortunately, we face many other threats, ranging from shore erosion to permafrost, major temperature fluctuations and avalanches. We must keep our foot on the gas to address current and future challenges to prevent power outages, road closures, suspended drinking water services, and many more vital services."
To view the report card and all 12 categories, visit https://infrastructurereportcard.org/state-item/alaska/.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
Read the court decisionRead the full story...Reprinted courtesy of
Negligent Construction an Occurrence Says Ninth Circuit
June 30, 2011 —
CDJ STAFFOne June 27, the US Court of Appeals has rejected an appeal from Mid-Continent Casualty Company. Mid-Continent had appealed a summary judgment granted to Titan Construction Company.
Titan Construction had built condominiums for the Williamsburg Condominium Association, which later filed a construction defect lawsuit against Titan and other defendants. Titan settled with the developer, Kennydale, assigning its rights against Mid-Continent to Kennydale. Mid-Continent filed suit, claiming that “it had no obligation to indemnify or defend Titan, Kennydale, or various other defendants.” The district court found in favor of Mid-Continent, granting a summary judgment, concluding that Titan’s insurance covered “occurrences,” and none had taken place.
On appeal, the court found that the negligent construction of the condominiums constituted an “occurrence” The case was remanded and the district court this time found in favor of Titan, “concluding that Mid-Continent failed to raise a triable issue as to the applicability of the remaining policy exclusions.
The Ninth Circuit Court of Appeals has now affirmed that decision and Titan’s summary judgment stands.
Read the court’s decision…
Read the court decisionRead the full story...Reprinted courtesy of
Even Fraud in the Inducement is Tough in Construction
November 06, 2023 —
Christopher G. Hill - Construction Law MusingsI have discussed how hard it is in the Commonwealth of Virginia to make out a claim for fraud when a construction contract is involved. On limited exception is where a claim for “fraud in the inducement” is involved. Essentially, such a claim states that one party was hoodwinked into entering the contract in the first place. Because of the initial fraud (for instance misrepresenting the class or existence of a contractor’s license), the courts may bypass the terms of the contract and allow a claim for fraud to go forward.
While you may think that this would lead to many claims making it past a Motion to Dismiss, at least one court here in Virginia makes it clear that such claims will not be taken lightly and must be supported by specific and substantial allegations that would support more than just “advertising” or opinion. In County of Grayson v. Ra-Tech Services Inc., the U. S. District Court for the Western District of Virginia reviewed an amended complaint from the Plaintiff seeking to make out a claim for fraud in the inducement based upon the defendant’s statements in support of a proposal that certain brands of equipment would be used. The Court further considered general allegations that the Defendant never intended to provide those particular brands of equipment.
Read the court decisionRead the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Security on Large Construction Projects. The Payment Remedy You Probably Never Heard of
May 07, 2015 —
Garret Murai – California Construction Law BlogCalifornia has a number of statutory payment remedies available on construction projects. Some, such as the mechanics lien, are relatively well known and often utilized. Others, such as the stop payment notice, are somewhat less so.
However, there’s one statutory payment remedy you may not have heard of at all.
And that is, security requirements for large projects.
What is security for large projects?
Security is required on certain large construction projects to guarantee the payment by owners to direct contractors, and applies if either:
1.
Fee Interest and Contract of Greater Than $5 million: The owner contracting for a work of improvement holds a
fee interest in the property being improved and enters into a construction contract for the improvement of the property greater than
$5 million; or
2.
Less Than Fee Interest, Including Leasehold Interest, and Contract of Greater Than $1 million: The owner contracting for a work of improvement holds less than a fee interest (including a
leasehold interest) in the property being improved and enters into a construction contract for the improvement of the property greater than
$1 million.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Florida Passes Tort Reform Bill
April 10, 2023 —
William Doerler - The Subrogation StrategistOn Friday, March 24, 2023, Florida’s governor, Ron DeSantis, signed into law a tort reform bill, HB 837. The bill impacts, among other things, bad faith actions and attorney’s fee awards. Of particular importance to subrogation professionals are provisions impacting comparative fault, the statute of limitations and premises liability with respect to the criminal acts of third persons.
With respect to the statute of limitations, the bill amended Fla. Stat. § 95.11(3) and (4), to reduce the statute of limitations for negligence actions from four (4) years to two (2) years.
As for comparative fault, Fla. Stat. § 768.81 was amended to move Florida from a pure comparative fault jurisdiction for negligence actions to a modified comparative fault jurisdiction. Pursuant to § 768.81(6), as revised, in a negligence action subject to that section, “any party found to be greater than 50 percent at fault for his or her own harm may not recover any damages.” Section 768.81(6), however, does not apply to actions for damages for personal injury or wrongful death arising out of medical negligence.
Read the court decisionRead the full story...Reprinted courtesy of
William Doerler, White and Williams LLPMr. Doerler may be contacted at
doerlerw@whiteandwilliams.com