The New Jersey Theme Park Where Kids’ Backhoe Dreams Come True
April 13, 2017 —
Patrick Clark - BloombergThere is probably only one place in America where an eight-year-old can ride a carousel whose seats look like excavator buckets, then swipe at bowling pins with a mini-digger—where, for a ticket price of less than $40, he or she can operate a backhoe, drive a drum-roller, and ride the telescoping arm of a construction lift 50 feet into the air to admire the Philadelphia skyline.
That place is a small theme park in West Berlin, N.J., called Diggerland USA.
Diggerland opened for the season in March, but even on a recent visit when the park was closed, its discordant appeal was obvious: Small children get to climb into the cabs of heavy-duty construction equipment.
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Patrick Clark, BloombergMr. Clark may be followed on Twitter @pat_clark
Colorado Legislative Update: HB 20-1155, HB 20-1290, and HB 20-1348
August 03, 2020 —
Jean Meyer - Colorado Construction LitigationThis year’s Colorado State Legislative session was cut short. However, in the period of time Colorado’s Legislature was in session, it passed and evaluated important legislation for Colorado homebuilders. This article highlights relevant legislation for Colorado homebuilders.
1. HB 20-1155
This Bill creates new requirements on new homebuilders to offer renewable energy systems to the buyer of a new home. Specifically, the Bill requires homebuilders to offer each of the following:
- A solar panel system, a solar thermal system, or both;
- Prewiring or pre-plumbing for the above solar systems; and,
- A chase or conduit for future installation of such systems.
The Bill further requires Colorado homebuilders to offer homebuyers one of the following:
- An electric vehicle charging system;
- Prewiring for the future installation for such a system; or,
- A plug-in receptacle in a place accessible to a vehicle parking area.
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Jean Meyer, Higgins, Hopkins, McLain & Roswell, LLCMr. Meyer may be contacted at
meyer@hhmrlaw.com
Court Rejects Efforts to Limit Scope of Judgment Creditor’s Direct Action Under Insurance Code Section 11580
May 01, 2019 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Ins. Co. of St. of PA v. Amer. Safety Indemnity Co. (No. B283684, filed 3/1/19) (“ICSOP”), a California appeals court rejected one insurer’s efforts to limit the scope of another insurer’s direct action as a judgment creditor under Insurance Code section 11580(b)(2).
In ICSOP, homeowners filed a claim in arbitration against their general contractor alleging damages from subsidence. While the arbitration was pending, the general contractor filed suit against the grading subcontractor seeking indemnity and contribution. The complaint attached the homeowners’ complaint in arbitration pleading damages of $2.3 million, and alleged that the subcontractors had a duty to indemnify for those damages. The arbitrator awarded the homeowners $1.1 million.
The general contractor was insured by plaintiff ICSOP, which paid the arbitration award. A default judgment was entered against the grading subcontractor for $1.5 million, that included both the arbitration award plus $356,340 for the general contractor’s attorney’s fees. American Safety insured the grading subcontractor but refused to indemnify ICSOP. ICSOP then sued American Safety on the default judgment, pursuant to Insurance Code section 11580(b). The trial court granted summary judgment for ICSOP and the appeals court affirmed.
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
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Appeals Court Overruled Insured as Additional Insured on Subcontractor’s Commercial General Liability Policy
April 02, 2014 —
Beverley BevenFlorez-CDJ STAFFScott R. Murphy and Clifford J. Shapiro of Barnes & Thornburg LLP in the publication National Law Review analyzed the findings of the Mississippi case Carl E. Woodward, LLC v. Acceptance Indemnity Insurance: “the U.S. Court of Appeals for the Fifth Circuit overruled the district court’s determination that a general contractor was insured as an additional insured on its subcontractor’s commercial general liability (CGL) policy for claims arising out of the allegedly defective work performed by the subcontractor.”
“This case underscores the fact that many standard policy forms do not include completed operations coverage for additional insureds,” Murphy and Shapiro declared. “Owners and contractors that desire to have such coverage therefore need to check their contracts to be make sure the contract language requires completed operations coverage for additional insureds, and they also need to obtain and review the actual additional insured endorsement contained in their subcontractors’ insurance policies before work commences to make sure that the required completed operations insurance coverage is provided.”
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US Secretary of Labor Withdraws Guidance Regarding Independent Contractors
June 21, 2017 —
Tanya Salgado - White and Williams LLPThe United States Secretary of Labor has withdrawn an informal guidance regarding independent contractors issued in 2015. We reported on the 2015 Administrator’s Interpretation here. The 2015 Interpretation provided a detailed explanation of the economic realities test, which is used to determine whether a worker is to be classified as an independent contractor or an employee under the Fair Labor Standards Act (FLSA).
While the 2015 Interpretation did not change existing case law on independent contractor status, it was seen as sending a signal from the Department of Labor (DOL) regarding the agency’s focus. The DOL concluded the 2015 Interpretation with the statement, “most workers are employees under the FLSA’s broad definitions…” Just as the DOL’s 2015 Interpretation did not change existing case law, the DOL’s withdrawal of the Interpretation does not change the law in any way. The economic realities test remains the legal standard for determining independent contractor status under the FLSA.
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Tanya Salgado, White and Williams LLPMs. Salgado may be contacted at
salgadot@whiteandwilliams.com
How You Plead Allegations to Trigger Liability Insurer’s Duties Is Critical
November 01, 2021 —
David Adelstein - Florida Construction Legal UpdatesHow you plead allegations in your lawsuit to trigger duties of a liability insurance carrier is a critical consideration. If the complaint is not pled appropriately, it can result in the carrier NOT owing a duty to defend its insured, which is the party(ies) you are suing. If there is no duty to defend, there will be no duty to indemnify the insured to cover your damages. For this reason, in a number of circumstances, this is NOT what you want because you want to trigger insurance coverage and potential proceeds to be paid by a carrier to cover your damages. There are times when you are confronted with a case that just is not a good insurance coverage case. This may result in you coming up with creative arguments to maximize insurance coverage. Even in these times, you want to plead the complaint to best maximize coverage under the creative arguments you have developed.
An example of not pleading allegations in a complaint to trigger an insurer’s duties can be found in the Eleventh Circuit Court of Appeal’s decision in Tricon Development of Brevard, Inc. v. Nautilus Insurance Co., 2021 WL 4129373 (11th Cir. 2021). This case involved a general contractor constructing condominiums. The general contractor hired a subcontractor to fabricate and install metal railings. The subcontractor had a commercial general liability (CGL) policy that named the general contractor as an additional insured with respect to liability for property damage “caused in whole or in part” by the subcontractor’s direct or vicarious acts or omissions. (This is a good additional insured endorsement.)
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
OIRA Best Practices for Administrative Enforcement and Adjudicative Actions
November 23, 2020 —
Anthony B. Cavender - Gravel2GavelOn March 2, 2020, the Environmental Protection Agency revised its “On-Site Civil Inspection Procedures” in accordance with Executive Order 13892 . (The rules are located at 40 CFR Part 31.) These rules set forth the components of an appropriate inspection procedure. Briefly, the rules require that, after the inspector’s credential are made available, the object of the inspection will be discussed (and most inspections will be held during regular working hours), consent to enter must be obtained, there should be an opening and a closing conference with facility representatives, safety protocols must be observed, confidential business information must be protected, and there will be an opportunity for split sampling. Once the report is completed, it will be shared with the facility.
A few months later, on August 31, 2020, the Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA) circulated a memo to the heads of all federal agencies to implement the principles of fairness in administrative enforcement and adjudication. This directive implements Executive Order 13924, and includes a comprehensive list of “best practices” that should be employed in their administrative enforcement and adjudicative actions. Briefly, these best practices (which are framed in broad terms) are:
1. The government has the burden of proving a violation of the rules or other authorities;
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Is It Time to Get Rid of Retainage?
June 15, 2020 —
David K. Taylor - Construction ExecutiveMany debate the pros, cons and claims of retainage—when one party to a construction contract withholds a percentage (typically 5%-10%) from an otherwise approved contractor pay application, and which typically is not paid until a project is substantially complete. If an owner withholds retainage from a prime contractor, typically the contractor will in turn withhold retainage from its subcontractors.
While retainage has been part of the construction industry for decades, its concept, use (and abuse) have been under more discussion during the past 10 years.
Based on heavy lobbying from primary subcontractor groups, state legislatures have passed laws to regulate retainage in commercial projects. Lenders have become more careful about loans and are frequently involved in retainage discussions. Bonded projects are subject to criticism when a surety does not step in and, like the mythical insurance company, write a check.
Reprinted courtesy of
David K. Taylor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Taylor may be contacted at
dtaylor@bradley.com