NY Court Holds Excess Liability Coverage Could Never be Triggered Where Employers’ Liability Policy Provided Unlimited Insurance Coverage
February 28, 2018 —
Theresa A. Guertin and Samantha M. Martino - SDV Blog In a potentially significant development in New York insurance law, a recent appellate level decision held that an excess liability policy was not obligated to provide coverage where the underlying employer’s liability policy provided unlimited coverage pursuant to New York regulations.
The
Arthur Vincent & Sons Construction, Inc. v. Century Surety Insurance Co.1 case arose out of an underlying wrongful death claim. Fordham University hired Arthur Vincent and Sons Construction, Inc. (“AVSC”) to install a new roof on its Lewis Calder Center. As is typical of most construction contracts, AVSC agreed to indemnify the University against any claims arising out of its negligence, and to name the University as an additional insured on its commercial general liability policy. AVSC was insured by three policies: (1) a worker’s compensation and employer’s liability policy issued by Commerce and Industry Insur¬ance Company (“CIIC”); (2) a primary CGL policy issued by Century Surety Insurance Company (“Century”); and (3) an excess liability policy issued by Admiral Insurance Company (“Admiral”).
Reprinted courtesy of
Theresa A. Guertin, Saxe Doernberger & Vita, P.C. and
Samantha M. Martino, Saxe Doernberger & Vita, P.C.
Ms. Guertin may be contacted at tag@sdvlaw.com
Ms. Martino may be contacted at smm@sdvlaw.com
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Presenting a “Total Time” Delay Claim Is Not Sufficient
September 12, 2022 —
David Adelstein - Florida Construction Legal UpdatesWhen presenting a delay-type of claim on a construction project, a claimant MUST be in a position to properly PROVE the claim. Trying to present a delay claim loosey-goosey is not a recipe for success. In fact, it can be a recipe for an easy loss. This is not what you want. To combat this, make sure you engage a delay expert that understands delay methodologies and how to calculate delay and do NOT present a total time claim. Presenting a delay claim using a total time approach, discussed below, makes it too easy to attack the flaws and credibility of the approach. Per the discussion of the case below, a total time claim with a contractor that used its project manager, versus a delay expert, to support its claim turned the contractor’s claim into a loss.
In French Construction, LLC v. Department of Veteran Affairs, 2022 WL 3134507, CBCA 6490 (CBCA 2022), a contractor submitted a delay claim to the government for almost $400,000. The contractor was hired to construct a two-story corridor to connect hospital buildings. The contractor was required to be complete within 365 days. It was not. The contractor was seeking 419 days of delay from the government. The contractor’s “delay expert” was its project manager who compared the contractor’s as-planned schedule to an as-built schedule he prepared for the claim.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Default Should Never Be An Option
June 19, 2023 —
Christopher G. Hill - Construction Law MusingsEvery time I think that the construction industry has learned that failure to respond to a lawsuit is never the correct response, another case of default judgment comes out. I’ve discussed on multiple occasions that failure to respond can only lead to disaster. Aside from being barred from making any substantive response to the allegations against you, there are other consequences including the inability to seek a reasonable settlement because the other side has no reason to negotiate.
One of the more disastrous results recently came about in the Norfolk Division of the Eastern District of Virginia District Court. The case of L & W Supply Corp v. Driven Construction et. al. involved a supplier that sought to enforce its credit agreement against both the corporate entity of the contractor, Driven, and the guarantor, a principal of the company. Needless to say, there was no response to the lawsuit and the Plaintiff filed for default judgment.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
French Laundry Spices Up COVID-19 Business Interruption Debate
April 20, 2020 —
Jeffrey J. Vita & Melanie A. McDonald - Saxe Doernberger & VitaOn March 26, 2020, Michelin-rated Napa Valley restaurants, French Laundry and Bouchon Bistro, and their celebrity chef, Thomas Keller, filed the second known
coronavirus-related declaratory judgment (DJ) lawsuit by a restaurant. The restaurants filed their DJ against Hartford Fire Insurance Company just seven days after Napa County issued a Shelter at Home Order.1 Chef Keller’s suit comes on the heels of the first such suit by a restaurant seeking to recover business income losses, filed by iconic New Orleans French Quarter restaurant Oceana Grill2 on March 17, just four days after the Louisiana governor issued an order prohibiting gatherings of more than 250 people.
As local governments seek to protect their citizens and prevent an onslaught of cases in area hospitals, they are issuing various “stay home,” “shelter at home,” and similar orders to force social distancing and to help flatten the curve of the growth in COVID-19 cases. Restaurants nationwide are especially hard hit by these orders, as many of these orders contain size limitations on gatherings, which have required that restaurants and bars limit capacity (as in the March 13th Louisiana order). Other such orders require non-essential businesses to “cease all activities in the County” (as in the Napa County Shelter at Home order). The Napa County order does not exempt restaurants as “essential businesses,” except when providing food for take-out or delivery. Other orders, still, directly address restaurants and require them to cease allowing public consumption of food and beverages (as in the subsequent, March 17th Louisiana order).
Reprinted courtesy of
Jeffrey J. Vita, Saxe Doernberger & Vita, P.C. and
Melanie A. McDonald, Saxe Doernberger & Vita, P.C.
Mr. Vita may be contacted at jjv@sdvlaw.com
Ms. McDonald may be contacted at mam@sdvlaw.com
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New Braves Stadium Is Three Months Ahead of Schedule, Team Says
September 03, 2015 —
Michael Buteau – BloombergConstruction of the new $1.1 billion home of Major League Baseball’s Atlanta Braves is about three months ahead of schedule, according to team executives.
“We’ve built a really solid, aggressive, efficient plan,” Mike Plant, head of the team’s business operations, said in an interview Thursday during a brick-laying ceremony. “No one has ever built a ballpark of this scale and scope in 39 months, and we’re going to do it in 36.”
The 41,500-seat stadium, 14 miles northwest of Turner Field and known as SunTrust Park, will be about 20 percent smaller than the existing ballpark and could be completed by mid-November 2016, Plant and Braves Chairman Terry McGuirk said. The complex will include a 250-room Omni hotel, a nine-story corporate office for Comcast Corp. and the Roxy Theatre, a 4,000-seat music venue.
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Michael Buteau, Bloomberg
Breach of an Oral Contract and Unjust Enrichment and Implied Covenant of Good Faith and Fair Dealing
December 23, 2023 —
David Adelstein - Florida Construction Legal UpdatesIn an ideal world, parties would have written contracts. In reality, parties should endeavor to ensure every transaction they enter into is memorialized in a written contract. This should not be disputed. Of course, written contracts are not always the case. Parties enter transactions too often whereby the transaction is not memorialized in a clean written agreement. Rather, it is piecemealing invoices, or texts, or discussions, or proposals and the course of business. A contract can still exist in this context but it is likely an oral contract. Keep in mind if there is a dispute, what you think the oral contract says will invariably be different than what the other party believes the oral contract says. This “he said she said” scenario gets removed, for the most part, with a written contract that memorializes the written terms, conditions, and scope.
A recent federal district court opinion dealt with the alleged breach of an oral contract. In Movie Prop Rentals LLC vs. The Kingdom of God Global Church, 2023 WL 8275922 (S.D.Fla. 2023), a dispute concerned the fabrication and installation of a complex, modular stage prop to be used for an event. But here lies the problem. The dispute was based on an oral contract and invoices. The plaintiff, the party that was fabricating the modular stage prop, sued the defendant, the party that ordered the stage prop for the event, for non-payment under various claims. The defendant countersued under various claims.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Brenda Radmacher to Speak at Construction Super Conference 2024
November 05, 2024 —
Brenda Radmacher - The Construction SeytBrenda Radmacher, partner in Seyfarth’s Construction group, will present and moderate panels at the 38thAnnual Construction Super Conference 2024 on December 9-11. The conference is recognized as the preeminent construction conference developed for mid to senior-level professionals working in legal and commercial construction markets.
Panel – Looking Around Corners: Emerging Trends and Proactive Solutions
Brenda will co-present a panel on innovative ways to engage experts in construction disputes, focusing on early expert involvement to aid in risk management, issue analysis, mitigation, and documentation for potential litigation.
Panel – Top 10 Issues to Address in Your ADR Process for a Better Solution in Construction Disputes
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Brenda Radmacher, SeyfarthMs. Radmacher may be contacted at
bradmacher@seyfarth.com
A New Study: Unexpected Overtime is Predictable and Controllable
January 31, 2022 —
Aarni Heiskanen - AEC BusinessA new study by Dodge Construction Network and Versatile, a construction technology pioneer using artificial intelligence (AI) and the internet of things (IoT) to optimize construction processes, found that unexpected overtime is predictable and controllable through regular job site activity measurement. According to the study, overtime is predictable at an 88% confidence level, if proper measurement is utilized.
Overtime is a persistent feature of construction sites, however, it is often unplanned and unpredictable. Despite the cost of overtime, its impact on skilled workers, and its implications for safety and other key factors on a project site, it is often applied to address immediate concerns rather than planned to maximize its effects. This recent study shows that in order to best understand overtime and its impact, data and measurement of jobsite activities are key.
“Unique insights derived from advanced data and analytics tools will empower construction crews to build better,” said Meirav Oren, co-founder and CEO of Versatile. “Overtime can be a very effective tool on the jobsite. Through the power of data, general contractors gain the ability to minimize unnecessary overtime while maximizing its strategic benefits.”
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi