The Benefits of Trash Talking: A Cautionary Tale of Demolition Gone Wrong
September 02, 2024 —
Joshua Levy, Anne O'Meara & Kimberly Gutierrez - Construction ExecutiveThat sinking feeling has crossed everyone’s mind at some point: "Did I accidentally throw out...?” It can happen to anyone, from valuable jewelry to uncashed checks or even (in the case of one contractor) to fire-pump control cabinets.
Demolishing the wrong equipment is a concern construction and demolition contractors should review before beginning any project. Recently, one general contractor and its demolition subcontractor would have benefitted from a more detailed “trash” talking session, which could have helped them avoid a dumpster-fire of a legal dispute.
In this case, the general contractor was contracted to renovate a hangar for a military base. The company subcontracted the demolition work to a local, family-owned contractor to demolish aspects of the hangar’s fire-suppression room. The two companies met many times, from planning to daily field walk-downs. They discussed that any equipment that was tagged with bright orange tags would remain in the fire-suppression room. The contractor also reviewed the demolition plans with the demolition company, detailing what should and should not be removed.
Reprinted courtesy of
Joshua Levy, Anne O'Meara & Kimberly Gutierrez, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Homeowner Survives Motion to Dismiss Depreciation Claims
September 23, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer's motion to dismiss claims for improper claims handling when considering implementation of depreciation was denied. Morrison v. Indian Harbor Ins. Co, et al., 2024 U.S. Dist. LEXIS 115664 (S. D. W. Va. July 1, 2024).
Plaintiff's home suffered flood damage. The house was insured by Indian Harbor a surplus lines carrier that offered specialized and high risk property policies in West Virginia. Surplus lines policies were procured in West Virginia through a "surplus lines licensee." Here, Neptune Flood Inc. was the surplus lines licensee broker for Indian Harbor. Peninsula Insurance Bureau, Inc. was an administrator and loss adjuster involved in the claim.
After the flood, Plaintiff notified defendants of the damage and immediately cleaned and repaired the house. Plaintiff asserted that Neptune was given notice of the loss and one of its agents made recommendations regarding the coverage available and conveyed the information to Peninsula and Indian Harbour. Plaintiff claimed that defendants misrepresented his policy coverage and made incorrect adjustments for depreciation based on Neptune's statements and recommendations.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
No Coverage for Property Damage That is Limited to Work Completed by Subcontractor
April 25, 2012 —
Tred R. Eyerly - Insurance Law HawaiiThe issue before the 11th Circuit was whether, under Florida law, a general contractor had coverage for a property damage claim limited to the defective work performed by a subcontractor, and not affecting any other portion of the project. The court found no coverage in Amerisure Mut. Ins. Co. v. Auchter Co., 2012 U.S. App. LEXIS 5412 (11th Cir. March 15, 2012).
Amelia Island Company contracted with Auchter Company, a general contractor, for construction of an inn and conference room. Auchter subcontracted with Register Contracting Company to install the Inn’s roof. Pursuant to the Florida Building Code, installation of the roof required that it be able to withstand 110 m.p.h. winds.
Register completed installing the roof tiles in January 1998. Beginning in 2002, the tiles began dislodging from the roof. During the 2004 hurricane season, three hurricanes caused more tiles to come off the roof. Some of these tiles hit other tiles, cracking them.
In 2006, the parties went to arbitration over the costs of repairs for the roof.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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Understanding the Details: Suing Architects and Engineers Can Get Technical
November 02, 2017 —
Steven M. Cvitanovic & Stephen M. Tye - Haight Brown & Bonesteel LLPBefore suing an architect or engineer for professional negligence, a plaintiff must obtain a “certificate of merit” (“Certificate”) under Code of Civil Procedure section 411.35. Boiled down to the basics, the Certificate declares that the attorney consulted with and received an opinion from an expert that a reasonable and meritorious case exists against said design professional. The Certificate must be filed before serving the complaint on any defendant, but can be filed within 60 days under certain circumstances. This rule was recently analyzed against another long-standing rule in California, known as the “relation-back doctrine.” Under the relation-back doctrine, a court will deem a later-filed pleading, such as an amended complaint, to be deemed filed at the time of an earlier complaint.
In Curtis Engineering Corp. v. Superior Court of San Diego County, No. D072046, (Cal. Ct. App. 10/23/17), the Fourth Appellate Court considered the interplay between section 411.35 and the relation-back doctrine, holding that a Certificate filed more than 60 days after filing the original pleading does not relate back to the filing of the original pleading.
Reprinted courtesy of
Steven Cvitanovic, Haight Brown & Bonesteel LLP and
Stephen Tye, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com
Mr. Tye may be contacted at stye@hbblaw.com
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Red Wings Owner, Needing Hockey-Arena Neighborhood, Builds One
August 06, 2014 —
Chris Christoff – BloombergBillionaire Mike Ilitch and his family plan to create an instantaneous neighborhood around Detroit’s new hockey arena and jump-start an economic recovery where other sports ventures fell short.
The 250-acre (101-hectare) project near downtown sets the arena apart from other U.S. stadiums where little or no related development occurred, or arose long after construction. The Ilitches, owners of the National Hockey League’s Detroit Red Wings, will spend $200 million on apartments and retail space to attract residents by the time the arena opens for the 2017 season. They’ll also pay 44 percent of cost to build the arena.
“This isn’t, ‘Build it and they will come.’ This is, ‘We’re coming and we’re building it,” said Mark Morante, a manager for the Michigan Strategic Fund, which must authorize a $450 million bond sale to build the arena, the largest by the state’s economic development arm.
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Chris Christoff, BloombergMr. Christoff may be contacted at
cchristoff@bloomberg.net
Warning! Danger Ahead for Public Entities
July 30, 2019 —
Michael J. Baker - Snell & Wilmer Under Construction BlogPublic entities are known to assert False Claims actions “to up the ante” to intimidate and aggressively address contractor construction claims. This strategy in the case of John Ross of Industrial Sheet Metal, Inc. (JRI) V. City of Los Angeles Department of Airports (LAWA), 29 Cal. App. 5th 378 (2018), backfired on the public entity, LAWA, in a big way and should serve as a warning to public entities about expanding claims to include False Claim actions. In this case, LAWA was awarded $1 in contract damages, its California False Claims Act (CFCA) claim was rejected by the jury as were JRI’s claims against LAWA. Despite losing on the substantive contract claims, the trial court found that JRI “prevailed in the action” under the relevant CFCA fee provision, Government Code 12652, subd. (g)(9)(B), regardless of JRI’s failure to prevail in the action as a whole. The California Appellate Court (hereinafter “Court”) affirmed the trial court’s finding.
The CFCA is analogous to the federal False Claims Act (FFCA; 31 U.S.C. 3729 et seq.). Since the CFCA is patterned on similar federal legislation, it was appropriate for the Court to look to precedent construing this similar federal act in interpreting the CFCA provisions. Accordingly, the Court looked at the False Claims Act cases for guidance in upholding the trial court’s decision in its determination that JRI was the “prevailing party” for determining an attorney’s fees award against LAWA.
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Michael J. Baker, Snell & WilmerMr. Baker may be contacted at
mjbaker@swlaw.com
ASCE Statement on Congress Passage of WRDA 2024
January 07, 2025 —
Feniosky Peña-Mora - American Society of Civil EngineersWASHINGTON, DC. – ASCE applauds Congress for passing the bipartisan Water Resources Development Act (WRDA) for 2024, Congress's biennial authorization for new U.S. Army Corps of Engineers (USACE) projects. WRDA 2024 authorizes 21 USACE water resources projects across 15 states, Washington, D.C., and Puerto Rico, with a focus on waterway navigation, hurricane and storm damage risk reduction, flood risk management, and ecosystem restoration. This legislation will support vital port and inland waterways projects through provisions such as an adjustment of the cost share formula for the Inland Waterways Trust Fund (IWTF), which helps pay for major rehabilitation and construction efforts along navigation channels, and an increase in the depth at which federal port and harbor projects can receive federal assistance for construction and maintenance. These provisions can help raise the ports (B-) and inland waterways (D+) grades reflected in ASCE's 2021
Report Card for America's Infrastructure, and we are thrilled to see WRDA 2024 prioritizing policies that will improve the nation's infrastructure systems.
The latest agreement includes the reauthorization of the National Dam Safety Program (NDSP) through 2028, a top legislative priority for ASCE and a critical program needed to improve the "D" grade that dams received in the 2021 Report Card for America's Infrastructure. The NDSP is the primary source of federal funding supporting state dam safety programs with inspection and monitoring activities, emergency preparedness, and staffing needs. The agreement also incorporates low-head dams into the National Inventory of Dams. These small structures can have deadly consequences when unaccounted for because they produce dangerous, undetectable currents. Incorporating them into the National Inventory of Dams will increase awareness and lead to more safety precautions that could save lives.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 160,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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Insurers' Motion to Void Coverage for Failure to Attend EUO Denied
January 04, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer's motion for summary judgment and disposal of the insureds' claim due to failure to attend an examination under oath (EUO) was denied. Perkins v Syndicate 4242 of Lloyd's of London, 2022 U.S. Dist. LEXIS 196922 (W.D. La. Oct. 28, 2022).
The insureds' home suffered damage from Hurricane Laura on August 27, 2020, and Hurricane Delta on October 9, 2020. The insureds reported damage after Hurricane Laura under the homeowners policy. They filed suit in August 2021, alleging that Lloyds failed to adequately inspect their claims. The court issued a Case Management Order (CMO) that governed initial disclosures and the parties' participation in a streamlined settlement process for hurricane claims. The dispute did not settle, however, so the matter was set for a bench trial.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com