Supreme Court Holds That Prevailing Wage Statute is Constitutional
November 28, 2022 —
Cassidy Ingram - Ahlers Cressman & SleightThe Supreme Court recently held
[1] that Senate Bill 5493 (“SSB 5493”), which alters the method for how the Washington State Department of Labor and Industries’ industrial statistician sets the prevailing wages for employees on public works projects, is constitutional. Prior to the enactment of SSB 5493, the industrial statistician set prevailing wages for each trade on a county-by-county basis based on either the majority or average wage rate in that specific county. Following SSB 5493’s enactment, the industrial statistician would be required to adopt the prevailing wage rate for a county solely based on collective bargaining agreements (CBAs) for that trade. If a trade has more than one CBA in a county, the highest wage rate will prevail.
SSB 5493 has negative impacts on employers because it creates the potential for wage rates to be set based on CBAs that represent the minority of hours worked in a county. The International Union of Operating Engineers, Local 302, provides an example of this. AGC began negotiations with an operators’ union for a master labor agreement, which would cover almost all operating engineers in 16 Washington State counties. When they could not reach an agreement, Local 302 called a strike against the employers. After one week of the strike, Local 302 approached small employers and negotiated a side agreement. Some of these employers were also card-carrying members of Local 302. A few weeks later, AGC ratified a new agreement with Local 302 that included lower wages than the side agreements. Because the rates in the side agreement were higher, those wage rates became the prevailing wage in 16 counties even though they represented a minority of the hours worked.
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Cassidy Ingram, Ahlers Cressman & SleightMs. Ingram may be contacted at
cassidy.ingram@acslawyers.com
Indemnity Provision Prevails Over "Other Insurance" Clause
December 06, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe Second Circuit predicted that the New York appellate courts would find the contractual indemnity provision prevailed over the application of an "other insurance" provisions. Cent. Sur. Co. v. Metro. Transit Auth., 2021 U.S. App. LEXIS 29860 (2nd Cir. Oct. 5,2021).
Long Island Railroad (LIRR) contracted with general contractor Rukh Enterprises, Inc. to complete a railroad bridge lead paint removal and repainting project on Metropolitan Transit Authority property. Rukh hired subcontractor, East Coast Painting & Maintenance to complete certain lead-related work on the project.
An employee of East Coast suffered an injury while working on the project. The employee sued LIRR and Rukh. A settlement in the underlying case was reached, implicating three of four policies - Admiral (primary for LIRR), Arch (CGL for Rukh), and Harleysville (primary for East Coast). Century Surety (excess liability for Rukh) did not contribute to the settlement and disclaimed all coverage.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Depreciating Labor Costs May be Factor in Actual Cash Value
April 20, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe Minnesota Supreme Court considered a certified question from the the U.S. District Court regarding consideration of depreciating labor costs in determining the actual cash value of a loss. Wilcox v. State Farm Fire & Cas. Co., 2016 Min. LEXIS 50 (Minn. Feb. 10, 2016).
The insureds' home was damaged by hail. State Farm provided a written estimate that calculated the actual cash value of the loss. To estimate the actual cash value of the damaged property, State Farm first calculated the replacement costs of individual items, such as roof flashing, siding, fascia, gutters, and window screens. Next, State Farm subtracted the pre-loss depreciation of some, but not all, individual items. For example, State Farm depreciated the cost of removing and replacing certain materials, such as siding. State Farm did not depreciate the cost of the new siding separately from the cost of the labor required to install the new siding on the home. Instead, State Farm calculated the removal and replacement of the siding as a single cost, then depreciated the removal-and-replacement cost as a whole. The cost of labor to repair or replace the damaged property was referred to by the court as "embedded labor costs."
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.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
Providing Notice of Claims Under Your Construction Contract
April 02, 2014 —
Beverley BevenFlorez-CDJ STAFFCraig Martin on his blog Construction Contractor Advisor explained the importance of knowing when to provide notice under your construction contract: “Time and time again, courts rule that contractors must follow notice requirements in order to submit a claim for additional time or compensation.”
Martin cited the case JEM Contracting v. Morrison-Maierle, where the contractor provided verbal notice of a claim to the engineer, but failed to submit in writing until eighteen days later, which was past the notice requirement as stated in the contract. The judge denied the contractor’s claim and sided with the engineer and county.
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In Florida, Exculpatory Clauses Do Not Need Express Language Referring to the Exculpated Party's Negligence
October 02, 2015 —
Edward Jaeger & William Doerler – White and Williams LLPIn Sanislo v. Give Kids the World, Inc., 157 So.3d 256 (Fla. 2015), the Supreme Court of Florida considered whether a party to a contract, in order to be released from liability for its own negligence, needs to include an express reference to negligence in an exculpatory clause. The court held that, unlike an indemnification clause, so long as the language in an exculpatory clause is clear, the absence of the terms “negligence” or “negligent acts” in an exculpatory clause does not, for that reason alone, render the exculpatory clause ineffective.
Background
Give Kids the World, Inc. (“GKW”) is a non-profit organization that provides free vacations to seriously ill children and their families at GKW’s resort village. To use the resort, vacationers have to fill out an application. Stacy and Eric Sanislo filled out an application to bring their seriously ill child to the village for a vacation and GKW accepted their application. Upon arriving at the resort, the Sanislos filled out a liability release form.
Reprinted courtesy of
Edward Jaeger, White and Williams LLP and
William Doerler, White and Williams LLP
Mr. Jaeger may be contacted at jaegere@whiteandwilliams.com
Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com
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No Entitlement to Reimbursement of Pre-Tender Fees
April 28, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe Federal District Court for the District of Hawaii determined that the insured was not entitled to pre-tender defense fees. The Hanover Ins. Co. v. Anova Food, LLC, 2016 U.S. Dist. LEXIS 38947 (D. Haw. March 24, 2016).
Anova sold and marketed fish. It was insured under policies issued by Hanover that covered claims of "personal and advertising injury."
A patent infringement and false advertising case was filed against Anova in the District Court for the District of Hawaii.The underlying complaint alleged Anova falsely, misleadingly, and deceptively advertised, promoted, and sold fish. The allegations covered a period of time between 1999 and 2012, a portion of which time Anova was covered by the Hanover policies.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Microwave Transmission of Space-Based Solar Power: The Focus of New Attention
July 24, 2023 —
Robert A. James & William E. Fork - Gravel2Gavel Construction & Real Estate Law BlogScientists have long proposed that solar electricity generation in space could be an integral component of the world’s carbon-free future. In the 1970s, a U.S. Navy experiment showed that it might be possible to capture solar power and wirelessly transmit it from outer space using microwave beams. Progress stalled after that early test—the models used were at such a massive scale that creating a real-world system felt like science fiction. Recently, amid growing concerns about power grid security and intensifying legislation around carbon emissions, renewed attention focused on a smaller, more lithe microwave transmission system. This time around, the military is not the only interested party. Scientists around the world are conducting similar research. As investors and governments stand at the edge of a fresh green power opportunity, we look at microwave power transmission and some of the projects in this emerging field.
The basic premise of space-based solar power technology is simple enough: photovoltaic panels on a satellite in space convert the sun’s energy to electromagnetic waves at microwave frequencies. The satellite then beams the microwave energy to a receiver on Earth that transforms it into direct current. Until recently, this technique had been performed on the ground over short distances, but nobody had attempted to launch a solar panel into space. The status quo has shifted over the past few years as researchers have begun to send prototypes into orbit. In early 2023, CalTech was the first to report a breakthrough. Its model successfully beamed power from space back to their receiver atop a building in California.
Reprinted courtesy of
Robert A. James, Pillsbury and
William E. Fork, Pillsbury
Mr. James may be contacted at rob.james@pillsburylaw.com
Mr. Fork may be contacted at william.fork@pillsburylaw.com
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