Business Risk Exclusions Bar Coverage for Construction Defect Claims
June 28, 2013 —
Tred EyerlyThe federal district court assumed there was "property damage" caused by an "occurrence," but found the business risk exclusions barred coverage for construction defect claims. Hubbell v. Carney Bros. Constr., 2013 U.S. Dist. LEXIS 68331 (D. Colo. May 13, 2013).
The plaintiffs entered a construction contract with the insured general contractor to build a home. After the project was one-third completed, plaintiffs terminated the contract. Experts hired by plaintiffs found a failure to properly site the residence, as the house was constructed 48 feet from the intended location; violations of county height restrictions; failure to follow building plans, which were themselves deficient; and an improperly poured foundation. The experts estimated that the costs of repairing the property to be between $1.3 and $1.5 million, and that the cost of demolishing the structure and rebuilding it would be between $1.1 and $1.3 million.
After plaintiff filed suit, a stipulated judgment of $1.952 million was entered.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Seyfarth Shaw’s Construction Group Receives Top Tier Recognition from Legal 500
July 05, 2023 —
Alison Ashford, Michael McKeeman, Bennett Greenberg, Meghan Douris, Jason Smith, Michael Wagner & Ryan Gilchrist - The Construction SeyfarthSeyfarth Shaw’s Construction group have achieved a top tier ranking in the highly regarded
Legal 500 United States 2023 edition, solidifying their reputation as one of the nation’s top legal teams. This recognition reaffirms Seyfarth’s unwavering commitment to excellence in Real Estate Construction and Construction Litigation.
The Legal 500 United States guide recognizes Seyfarth’s Construction practice as having a “very deep team with extensive construction knowledge as well as experts in related fields such as government contracting and business organization.” Our team is regarded by clients and peers as “collegial, intelligent, direct and adaptable.” The guide specifically recognizes the firm’s former Construction group chair, Bennett Greenberg, in their Hall of Fame. Alison Ashford, the firm’s current Construction group co-chair, is named a Leading Lawyer and Washington, DC Associate, Michael Wagner, made the Rising Stars list. Other notable mentions include, Michael McKeeman, Construction group co-chair, Jason Smith, Meghan Douris, and Ryan Gilchrist.
Reprinted courtesy of
Alison Ashford, Seyfarth,
Michael McKeeman, Seyfarth,
Bennett Greenberg, Seyfarth,
Meghan Douris, Seyfarth,
Jason Smith, Seyfarth,
Michael Wagner, Seyfarth and
Ryan Gilchrist, Seyfarth
Ms. Ashford may be contacted at aashford@seyfarth.com
Mr. McKeeman may be contacted at mmckeeman@seyfarth.com
Mr. Greenberg may be contacted at bgreenberg@seyfarth.com
Ms. Douris may be contacted at mdouris@seyfarth.com
Mr. Smith may be contacted at jnsmith@seyfarth.com
Mr. Wagner may be contacted at mewagner@seyfarth.com
Mr. Gilchrist may be contacted at rgilchrist@seyfarth.com
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Emergency Paid Sick Leave and FMLA Leave Updates in Response to COVID-19
April 06, 2020 —
Yvette Davis & Kyle R. DiNicola - Haight Brown & BonesteelThe Families First Coronavirus Response Act (“FFCRA”) was signed by the President on March 18, 2020 and will become effective no later than April 2, 2020. The law contains numerous updates to the country’s employment regulations in response to the Coronavirus pandemic of which employers should be familiar.
Of particular note, the FFCRA makes limited amendments to the Family and Medical Leave Act. Now, pursuant to the Emergency Family and Medical Leave Expansion Act (“EFMLEA”) employees may take up to 12 weeks of family and medical leave after having worked with the employer for 30 calendar days if the employee is unable to work (or telework) due to the employee’s need to care for a son or daughter under 18 years of age due to the child’s school closure or unavailability of a childcare provider due to a public health emergency, i.e., COVID-19. Unlike the FMLA, which does not apply to many small employers, this requirement applies to any employers with 500 or fewer employees. No mileage radius requirement exists under the EFMLEA.
When an employee utilizes leave pursuant to EFMLEA, the first 10 days of that leave may consist of unpaid leave, but the employee may elect to substitute any accrued paid vacation leave, personal leave, or medical or sick leave, including the Emergency Paid Sick Leave provided for by the Act and described below). All subsequent days of leave taken by the employee after the tenth day must be paid by the employer at a rate of not less than two thirds of the employee’s regular rate of pay and the number of hours the employee would otherwise normally be scheduled to work. The cap is $200 per day or $10,000 in the aggregate.
Reprinted courtesy of
Yvette Davis, Haight Brown & Bonesteel and
Kyle R. DiNicola, Haight Brown & Bonesteel
Ms. Davis may be contacted at ydavis@hbblaw.com
Mr. DiNicola may be contacted at kdinicola@hbblaw.com
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Arbitration is Waivable (Even If You Don’t Mean To)
February 16, 2016 —
Christopher G. Hill – Construction Law MusingsBe careful with how you act with arbitration clauses in your contracts. If you are not careful in how you act to enforce these clauses, you could find yourself stuck in court whether you like it or not.
As I stated in a recent update to a post last month, the Fourth Circuit Court of Appeals recently weighed in on the issue of a contractor’s waiver of its rights to arbitration under a contract. Briefly, the facts of Forrester v. Penn Lyon Homes, et. al., No. 07-2171 are as follows. The Forrester’s sued Penn Lyon and its warranty company alleging among other things a breach of express warranty based upon a warranty contract containing a mandatory arbitration clause. Instead of immediately alleging an affirmative defense based upon the arbitration clause, the defendants removed the case to federal court and litigated for 18 months before raising the arbitration defense for the first time.
The 4th Circuit (correctly in my opinion) affirmed the lower court and held that the defendants defaulted their right to arbitration because of their actions in defense of the court action and the prejudice to the plaintiffs caused by those actions.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Europe’s Satellites Could Help Catch the Next Climate Disaster
February 15, 2021 —
Jonathan Tirone - BloombergSpain began the new year battling Storm Filomena, a once-in-a-generation weather event that blanketed Madrid in snow and paralyzed the economy. Health workers were stranded, supermarkets shut, and the army was called in. At least four people died.
“Now, consider a government or company that knew two weeks ago there was a risk that this would happen,” said Francisco Doblas-Reyes, a physicist at Barcelona’s Supercomputing Center. “Knowing the risk that a 1-in-20-year event was going to happen would have given more possibilities to prepare.”
Doblas-Reyes and his team are working on complex models that they hope can better detect the next Filomena, a job that’s become increasingly important as climate change makes weather more unpredictable — and extreme. The data collected by European satellites is at the heart of the continent’s multibillion-euro Destination Earth program seeking to develop the world’s best digital simulation of Earth.
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Jonathan Tirone, Bloomberg
New Notary Language For Mechanics Lien Releases and Stop Payment Notice Releases
January 21, 2015 —
Garret Murai – California Construction Law BlogThanks to Scott Wolfe, Jr. over at ZLien for bringing this to my attention:
Effective January 1, 2015, the notary language required for Certificates of Acknowledgment – used by notaries for mechanics lien releases and stop payment notice releases in California – now require the following new wording to appear at the top of the notary certificate in a box:
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Arizona Contractor Designs Water-Repellant Cabinets
September 09, 2011 —
CDJ STAFFDubbing his product “Baltic Duck,” a Mesa, Arizona building contractor is offering household cabinets made with specially treated water-repellent plywood instead of the usual particle board. Pete Celano calls his product Baltic Duck because the plywood is made in the Baltic region of Eastern Europe. To further protect the cabinets from moisture, a silicone-based sealant is applied to the corners and edges.
Celano’s cabinets use standard decorative fronts. The design of the cabinets allows spilled liquids to drain away without encountering the decorative wood.
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COVID-19 Response: Environmental Compliance Worries in the Time of Coronavirus
April 20, 2020 —
Karen Bennett, Jane Luxton, William Walsh & Amanda Tharpe - Lewis BrisboisEarlier this week, a rumor made the rounds that a forthcoming Presidential Executive Order would impose a nationwide mandate that all employees work remotely. While the rumor proved baseless, it raised questions about manufacturers’ abilities to comply with environmental permit obligations in the event of a COVID-19 precipitated operational shutdown due to federal or state mandates or workforce depletion resulting from widespread illness. Previous emergencies offer some insights on what to expect as companies and their counsel assess environmental business risk.
In the wake of Hurricane Katrina, several bills were introduced in Congress that would have allowed the Environmental Protection Agency (EPA) to waive or modify requirements, issue emergency permits, or expedite permits as needed to respond to disaster and recovery needs. In the end, no new legislation was enacted, because existing emergency powers under environmental statutes proved sufficient to allow for waiver of regulatory requirements or exercise of enforcement discretion. Key provisions include the following:
- The Clean Water Act’s (CWA) affirmative defense for “upset” conditions. This provision excuses non-compliance with technology-based permit effluent limitations due to factors outside the permittee’s control. Criteria for establishing the defense include: 1) the upset occurred and the permittee can identify the cause, 2) the permitted facility was at the time being properly operated, 3) the permittee submitted notice of the upset (24 hour notice), and 4) the permittee complied with any remedial measures required under 40 C.F.R. §122.41(d).
Reprinted courtesy of Lewis Brisbois Bisgaard & Smith attorneys
Karen Bennett,
Jane Luxton,
William Walsh and
Amanda Tharpe
Ms. Bennett may be contacted at Karen.Bennett@lewisbrisbois.com
Ms. Luxton may be contacted at Jane.Luxton@lewisbrisbois.com
Mr. William may be contacted at William.Walsh@lewisbrisbois.com
Ms. Amanda may be contacted at Amanda.Tharpe@lewisbrisbois.com
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