Certificate of Merit to Sue Architects or Engineers Bill Proposed
May 03, 2011 —
CDJ STAFFNorth Carolina may become the twelfth state to require a Certificate of Merit to sue an architect or engineer. If North Carolina Senate Bill 435 (SB435) passes, then plaintiffs when filing a complaint will need to also attach an affidavit of a third-party licensed professional engineer or architect stating that the case has merit.
SB435 is a short two pages in its current form. The bill states that the “third-party licensed professional engineer or licensed architect shall (i) be competent to testify and hold the same professional license and practice in the same area of practice as the defendant design professional and (ii) offer testimony based upon knowledge, skill, experience, education, training, and practice. The affidavit shall specifically state for each theory of recovery for which damages are sought, the negligence, if any, or other action, error, or omission of the design professional in providing the professional service, including any error or omission in providing advice, judgment, opinion, or a similar professional skill claimed to exist and the factual basis for each such claim. The third-party licensed professional engineer or licensed architect shall be licensed in this State and actively engaged in the practice of engineering or architecture respectively.”
A few of the amendments allude to disciplining design professionals who certify civil actions that are without merit. The bill has been referred to the Committee on Judiciary I.
While North Carolina is considering enacting a Certificate of Merit law, eleven other states already require one, including Arizona, California, Colorado, Georgia, Maryland, Minnesota, New Jersey, Oregon, Pennsylvania, South Carolina, and Texas. Christopher D. Montez, a partner with Thomas, Feldman & Wilshusen, LLP, has written a useful summary for each state’s certificate of merit scheme.
Read the text of SB435
Track the progress of SB435
Read more from Christopher D. Montez’s article on Thomas, Feldman & Wilshusen, LLP site
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Is it the End of the Lease-Leaseback Shootouts? Maybe.
September 07, 2020 —
Garret Murai - California Construction Law BlogIt’s the case that has turned into a modern day Hatfield versus McCoy – McGee v. Torrance Unified School District, Case No. 8298122, 2nd District Court of Appeals (May 29, 2020) – a series of cases challenging the validity of certain lease-leaseback construction contracts in California.
In shootout number one, James McGee sued the Torrance Unified School District challenging the validity of lease-leaseback contracts the District had entered into with general contractor Balfour Beatty Construction, LLC. Under California’s lease-leaseback statute, a school district can lease property it owns to a developer, who in turns builds a school facility on the property and leases the facility back to the school district. The primary benefit of the lease-leaseback method of project delivery is that a school district does not need to come up with money to build the facility because the district pays for the facility over time through lease payments to the developer. In shootout number one, McGee argued that Torrance Unified School District was required to competitively bid the lease-leasebacks projects. The 2nd District Court of Appeals disagreed.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Federal District Court Issues Preliminary Injunction Against Implementation of the Fair Pay and Safe Workplaces Final Rule
November 03, 2016 —
Patrick J. Greene, Jr. & Lori Ann Lange – Peckar & Abramson, P.C. Client AlertOn July 31, 2014, President Barack Obama issued Executive Order 13673. As subsequently amended, the Executive Order purports to “increase efficiency and cost savings in the work performed by parties who contract with the Federal Government by ensuring that they understand and comply with labor laws.” On August 25, 2016 the Federal Acquisition Regulation (“FAR”) Council published the final FAR Rule and the United States Department of Labor (“DOL”) published its Guidance further implementing the Executive Order. The FAR final rule was scheduled to go into effect in stages, starting with solicitations with an estimated value of $50 million or more on October 25, 2016. The potential effect of these new regulations on government contractors has been the subject of prior alerts from this office and much ongoing discussion.
Reprinted courtesy of
Patrick J. Greene, Jr., Peckar & Abramson, P.C. and
Lori Ann Lange, Peckar & Abramson, P.C.
Mr. Greene may be contacted at pgreene@pecklaw.com
Ms. Lange may be contacted at llange@pecklaw.com
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A Special CDJ Thanksgiving Edition
November 21, 2017 —
Beverley BevenFlorez-CDJ STAFFWelcome to the Construction Defect Journal’s special Thanksgiving edition. The CDJ staff has compiled the most important and interesting stories so far from 2017. From Supreme Court decisions to state construction defect law shake ups, this week’s edition showcases significant construction defect industry changes. With a mug of hot spiced cider in hand, relax and reflect on what has happened in our industry so far in 2017.
CDJ wishes to give thanks to its amazing contributors and readers. It’s due to your efforts and support that CDJ is able to present a weekly summary of what is happening in the construction defect industry. We hope you enjoy this special edition, and wish you and your family a fun and festive Thanksgiving holiday.
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Subcontractor Strikes Out in its Claims Against Federal Government
July 08, 2024 —
David Adelstein - Florida Construction Legal UpdatesIs it a good idea for a subcontractor to sue the federal government? A recent case would suggest NO–way too many huge hurdles for the subcontractor to overcome. No matter how creative the arguments may be, it’s a high mountain to climb.
In Fox Logistics & Construction Co. v. U.S., 2024 WL 2807677 (Fed.Cl. 2024), a subcontractor sued the federal government when it was not paid by the prime contractor. The subcontractor claimed it was a third-party beneficiary under the government’s modifications to the prime contractor’s payment procedure, or alternatively it had an implied-in-fact contract with the government. The Court of Federal Claims granted summary judgment in favor of the government. The subcontractor, while creative, struck out in its claims based on the hurdles in a subcontractor suing the federal government.
This case involved upgrading an air force base. The subcontractor performed most of the work. The prime contractor had cash flow problems and did not pay the subcontractor. The government got involved to enforce provisions of its contract to force the prime contractor to pay subcontractors and even modified the payment procedure by having future payments to the prime contractor deposited into a new bank account that government could monitor. This ultimately did not work, and the prime contractor filed for bankruptcy. The subcontractor claimed it was owed millions–apparently, it was not able to recover the money through the prime contractor’s bankruptcy—and pursued claims against the federal government in an effort to recover money it was owed.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Mandatory Energy Benchmarking is On Its Way
April 22, 2019 —
Christopher G. Hill - Construction Law MusingsWe have discussed the issue of benchmarking and energy reporting on several occasions here at Musings. As the January 18, 2010 issue of ENR Magazine discusses, now cities and states are getting on board in a big way.
Washington, D.C. began requiring building owners to use the EPA Energy Star Portfolio Manager tool on January 1, 2010 and New York City passed a similar measure in December. The D.C. law is the first to require mandatory public disclosure of energy performance. Such disclosure will create a public database of energy performance data.
While I understand that this data and its reporting will create energy accountability in a way that non-disclosure of this data would not, the possibilities for misuse or uses that impact the construction world abound. This energy reporting is a step beyond that of the LEED program in that the data is not just reported to the USGBC, but to a public database. As such, the ease of access will impact contracts and contractors in an even bigger way than the USGBC requirements.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Partner Bradley T. Guldalian Secures Summary Judgment Win for National Hotel Chain
August 26, 2019 —
Bradley T. Guldalian - Traub LiebermanOn June 26, 2019, Traub Lieberman Straus & Shrewsberry LLP Partner Bradley T. Guldalian secured summary judgment on behalf of a national hotel chain in a slip and fall accident filed in Osceola County Circuit Court in Kissimmee, Florida. The underlying loss occurred when the Plaintiff slipped and fell in a puddle of water allegedly existing in the hotel’s laundry room and suffered a partial thickness rotator cuff tear involving the distal infraspinatus tendon for which he underwent surgery and incurred over $70,000 in medical bills. The Plaintiff filed a premises liability action against the hotel claiming the hotel had failed to maintain its premises in a reasonably safe condition proximately causing the Plaintiff’s fall and resulting injuries.
After discovery closed, Mr. Guldalian filed a motion for summary judgment on behalf of the hotel arguing that to prevail in a negligence claim involving a “transitory foreign substance”, such as water on a floor, an injured party must plead and prove pursuant to Florida Statute 768.0755 that the business establishment had actual or constructive knowledge of the dangerous condition and should have taken action to remedy it prior to the time of the alleged fall. Constructive knowledge may be proven by circumstantial evidence showing that (1) the dangerous condition existed for such a length of time that, in the exercise of ordinary care, the business establishment should have known of the condition or (2) that the condition occurred with such regularity that it was foreseeable that the condition would be present on the day the injury occurred.
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Bradley T. Guldalian, Traub LiebermanMr. Guldalian may be contacted at
bguldalian@tlsslaw.com
Florida Court Gives Parties Assigned a Subrogation Claim a Math Lesson
August 04, 2021 —
Lian Skaf - The Subrogation StrategistAlthough the focus of most subrogation cases is usually on proving liability, determining the appropriate measure of damages is just as important. Sometimes turning on a nuanced argument for recoverability, an adverse holding can significantly boost or reduce the total damages in a case. The Court of Appeal of Florida, Fourth District (Court) recently decided such an issue in a case involving subrogation, holding that the defendants owed much more than they originally anticipated.
In Five Solas v. Ram Realty Servs., No. 4D19-2211 2021, 2021 Fla. App. LEXIS 7546, the Court reviewed the appropriate setoff in damages that the defendants were entitled to when measuring the recoverable damages. The Court reversed the lower court’s holding, which held that the defendants were entitled to a setoff that limited the jury’s award to $104,481.75. Instead the Court held that the defendants were only entitled to a setoff equal to the excess recovery over replacement cost.
The case involves, among other things, property damage sustained by building owner Five Solas (Owner) and its lessee William Price, P.A. from a collapsed wall originating from the property of the defendants, Ram Realty Services, LLC and Sodix Fern, LLC d/b/a Alexander Lofts (collectively referred to as Defendants). Owner’s carrier, Foremost Insurance Company (Foremost), paid out its policy limit of $430,518.25 to Owner for damage to the building. Owner then pursued its claim against the tortfeasors for the remaining damages not paid by its carrier.[1] Foremost also pursued a subrogation claim, but settled its subrogation claim with Defendants, assigning its subrogation rights to Defendants.
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Lian Skaf, White and Williams LLPMr. Skaf may be contacted at
skafl@whiteandwilliams.com