Mechanic’s Liens- Big Exception
January 22, 2024 —
Christopher G. Hill - Construction Law MusingsMusings has discussed mechanic’s liens on
numerous occasions.
As we discussed in earlier posts, the general rule is that a
mechanic’s lien jumps to the head of the line of liens when filed. This is true in most instances. In the typical case, a contractor puts up a building and, when the owner refuses payment, it files a mechanic’s lien that takes priority over all other liens on that property, including the construction loan
deed of trust (or
mortgage, depending on your state’s property laws).
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Risk Protection: Force Majeure Agreements Take on Renewed Relevance
November 30, 2020 —
Michael E. Carson - Construction ExecutiveForce majeure clauses have been standard in contracts dating back hundreds of years in the United States—and even longer in Europe. “Force majeure,” which is French for “greater force,” removes liability for unforeseen events that prevent parties from fulfilling contractual obligations.
In a year defined by the COVID-19 pandemic, these clauses have gone from boilerplate basics to something worthy of further examination and attention in order to minimize risk for all parties involved in a construction project. Prior to COVID-19, drafters might have considered a localized or regional event that would lead to invoking a force majeure clause. It is doubtful, however, that anybody envisioned the impact on such a world-wide scale.
UNDERSTANDING THE AGREEMENTS
Force majeure clauses cover unforeseen events, a broad term that encompasses both acts of God and human-caused incidents. These range from natural disasters like earthquakes and hurricanes to acts of terrorism, strikes, political strife, government actions, war and other difficult- or impossible-to-predict disruptions. When such an event occurs, the force majeure clause attempts to remove, or at least reduce, uncertainty as to the rights and liabilities of the parties to the agreement.
Reprinted courtesy of
Michael E. Carson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Carson may be contacted at
michael.carson@nationwide.com
Former NJ Army Base $2B Makeover is 'Buzzsaw' of Activity
June 14, 2021 —
Tom Stabile - Engineering News-RecordTake a developed property the size of New York City’s Central Park with 5 million sq ft of building area, program in new construction or renovation over 20 years and across three dozen parcels for 1,600 housing units, 300,000 sq ft of civic or government space, 500,000 sq ft for retail and 2 million sq ft of offices, and you have a pretty ambitious undertaking. The $2-billion effort to redevelop Fort Monmouth, a decommissioned former U.S. Army base in the thick of New Jersey’s suburban sprawl, is all kinds of ambitious.
Reprinted courtesy of
Tom Stabile, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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Don’t Spoil Me: Oklahoma District Court Rules Against Spoliation Sanctions
January 08, 2024 —
Kyle Rice - The Subrogation StrategistIn Okla. Farm Bureau Mut. Ins. Co. v. Omega Flex, Inc., No. CIV-22-18-D, 2023 U.S. Dist. LEXIS 197755, the United States District Court for the Western District of Oklahoma (the District Court) determined spoliation sanctions were not warranted after a home was demolished for repair following a joint scene examination.
The insurer, Oklahoma Farm Bureau Mutual Insurance Company (Insurer) provided a policy of insurance to Michael and Sondra Diel (the Diels). On July 11, 2020, the Diels’ home was struck by lightning and their attic caught fire. Following the loss, Insurer retained both counsel and fire origin and cause experts to inspect the Diels’ property. Insurer’s counsel informed in-house counsel for Omega Flex, Inc. (Omega Flex) via a letter dated July 14, 2020, that a preliminary investigation indicated the fire may have been caused by an Omega Flex product—specifically, TracPipe Corrugated Stainless Steel Tubing (CSST). Insurer’s counsel invited Omega Flex to inspect the property, noting: “It is anticipated that the loss will exceed $300,000” and stating that any inspection “must be completed during the next two weeks.
At that time, the homeowner will proceed with demolition to rebuild.” (Emphasis added).
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Kyle Rice, White and WilliamsMr. Rice may be contacted at
ricek@whiteandwilliams.com
Connecticut Gets Medieval All Over Construction Defects
February 10, 2012 —
CDJ STAFFThe Hartford Courant reports that Connecticut is trying a very old tactic in a construction defect suit. The law library building at the University of Connecticut suffered from leaks which have now been repaired. The state waited twelve years after was complete to file lawsuit, despite that Connecticut has a six-year statute of limitations on construction defect claims. Connecticut claims that the statute of limitations does apply to the state.
The state is arguing that a legal principle from the thirteenth century allows it to go along with its suit. As befits a medieval part of common law, the principle is called “nullum tempus occurrit regi,” or “time does not run against the king.” In 1874, the American Law Register said that nullum tempus occurrit reipublicae “has been adopted in every one of the United States” and “is now firmly established law.”
In the case of Connecticut, Connecticut Solicitor General Gregory D’Auria said that “the statute of limitations does not apply to the state.” He also noted that “the state did not ‘wait’ to file the lawsuit. The lawsuit was filed only after all other options and remedies were exhausted.”
Connecticut also argued that “nullus tempus occurrit regi” applied in another construction defect case at the York Correctional Institution. The judge in that case ruled in December 2008 to let the case proceed. But in the library case, Judge William T. Cremins ruled in February 2009 that the statute of limitations should apply to the state as well. Both cases have been appealed, with the library case moving more quickly toward the Connecticut Supreme Court.
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The Cross-Party Exclusion: The Hazards of Additional Named Insured Provisions
July 19, 2021 —
Laurie A. Stanziale - ConsensusDocsMost construction contracts contain insurance provisions setting forth the insurance required of the contractor or other downstream parties. Some provisions are detailed and lengthy while others are short and sweet, but all are of critical importance and should be fully understood by the contractor before signing the contract. Also, every insured should understand not only what the contract requires but more importantly what the actual policy states, as the policy, not the contract, will govern whether or not there is coverage. It is possible that certificates received will match the contractual requirements, but much of what the policy covers is not reflected on a certificate. Lurking behind the certificate is the policy, which is where the actual coverage lies. The endorsements or exclusions to the policy can make the certificates worthless pieces of paper.
There are many exclusions that can cancel coverage for the work a contractor may perform. Height exclusions, residential exclusions, EFIS exclusions and many more, focus on the type of work or materials that the contractor is performing or using. One exclusion, however, focuses on who is insured and that exclusion alone can eliminate all coverage.
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Laurie A. Stanziale, Fox Rothschild LLP (ConsensusDocs)Ms. Stanziale may be contacted at
lstanziale@foxrothschild.com
¡AI Caramba!
January 07, 2025 —
Daniel Lund III - LexologyYou can’t make this up.
That’s what a federal judge in Texas told an attorney whom it was sanctioning for impermissible reliance on artificial intelligence in preparing a brief to the court.
“Pending before the court is the question of whether Plaintiff's counsel… should be sanctioned for submitting a response brief to the court that includes case cites generated by artificial intelligence that refer to nonexistent cases as well as to nonexistent quotations.”
Counsel for the defendant in the case – pursuing summary judgment for a tire manufacturer in a wrongful termination lawsuit – pointed up in a reply brief that the opposition brief of the plaintiff cited two purported – and as it turned out, nonexistent – unpublished decisions: Roca v. King's Creek Plantation, LLC, 500 F. App'x 273, 276 (5th Cir. 2012) and Beets v. Texas Instruments, Inc., No. 94-10034, 1994 WL 714026, at *3 (5th Cir. Dec. 16, 1994), and quotations from as many as six other apparently-existing cases but which were unable to be found within the reported decisions.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Update Regarding New York City’s Climate Mobilization Act (CMA) and the Reduction of Carbon Emissions in New York City
July 05, 2021 —
Caroline A. Harcourt, Natalie S. Starkman & Nika Bederman - Gravel2Gavel Construction & Real Estate Law BlogIn a previous post, we described how the New York City Climate Mobilization Act, 2019 (the CMA, or Local Laws 92, 94, 95, 96, 97, and 147 enacted in 2019) was passed with the goal of reducing New York City’s carbon emissions by 40 percent by 2030 and by 80 percent by 2050 (as against a 2005 baseline as provided for in item 3 of Local Law 97). It is the most ambitious building emissions law to be enacted by any city in the world. The CMA impacts “Covered Buildings” (described below) and, besides contemplating the retrofitting of Covered Buildings to achieve energy efficiency and establishing a monitoring program for Covered Buildings, the CMA contemplates compliance by means of the purchase of carbon offset credits or renewable energy. (Note the new NYC Accelerator program, launched in 2012 by the Mayor’s Office of Sustainability, provides guidance regarding energy-efficient upgrades to properties and emission reductions.)
Pursuant to the CMA:
- Beginning in 2024, Covered Buildings will have to meet the first emission targets, which are calculated by multiplying the gross floor area of each Covered Building by the occupancy classification as set forth in Local Law 97; and
- In 2025, owners of Covered Buildings will need to establish compliance by submitting a report establishing such compliance (prepared by a certified design professional) to the newly created Office of Building Energy and Emissions Performance.
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Caroline A. Harcourt, PillsburyMs. Harcourt may be contacted at
caroline.harcourt@pillsburylaw.com