As California Faces Mandatory Water Use Reductions How Will the Construction Industry be Impacted?
May 07, 2015 —
Garret Murai – California Construction Law BlogEarlier this month, Governor Jerry Brown issued Executive Order B-29-15, which imposes mandatory water use reductions for the first time in the history of California.
The Executive Order, issued as the state enters its fourth year of severe to exceptional drought, directs the State Water Resources Control Board (“State Water Board”) to impose a 25% reduction on the state’s 400 local water supply agencies which serve 90% of California residents, over the coming year.
The State Water Board has already issued proposed regulations based on informal comments received from the public, and in a “Fact Sheet” issued this weekend, has indicated that it is seeking additional informal comments no later than April 22, 2015, with final proposed emergency regulations to be released on April 28, 2015, which will then be considered by the State Water Board at its meetings on May 5 and 6, 2015.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Viva La France! 2024 Summer Olympics Construction Features Sustainable Design, Including, Simply Not Building at All
August 26, 2024 —
Garret Murai - California Construction Law BlogIf you’re like me and many others you’ve probably been watching the 2024 Summer Olympics in Paris, France. We were in Paris last year and we passed the construction site of the Aquatics Centre, one of only three new permanent facilities that was constructed for this year’s Olympics. On a side note, Parisian Uber drivers are some of the most aggressive drivers I’ve seen, replete with honking, hand gestures, and cursing at other drivers and pedestrians in, of course, French. Putain!
In recent history, Olympic construction costs have skyrocketed, often vastly exceeding the planned budgets of the host cities, and, in recent years, has caused even some host city hopefuls to reconsider
whether to even throwing their hats in the ring. The 2020/2021Summer Olympics in Tokyo, for example, had an original budget of $7.5 billion. The actual cost was over $13 billion and, depending on what beans you count, may have been over twice that! Paris seeks to change all of this.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Nader Eghtesad v. State Farm General Insurance Company
September 28, 2020 —
Michael Velladao - Lewis BrisboisIn Eghtesad v. State Farm Gen. Ins. Co., 51 Cal.App.5th 406 (June 29, 2020), the California Court of Appeal reversed the trial court’s entry of judgment in favor of State Farm General Insurance Company (“State Farm”) based on an order sustaining a demurrer without leave to amend regarding a complaint filed by Nader Eghtesad. Mr. Eghtesad, representing himself, filed a form complaint checking a box for breach of contract. The complaint alleged two paragraphs contending that State Farm had acted in bad faith and concealed benefits due under a policy issued to a former tenant who rented space in a building owned by Eghtesad. Eghtesad was an additional insured under the tenant’s policy. In that regard, the building was damaged during the time that the building was rented and Eghtesad tendered a claim under the State Farm policy contending that he was an additional insured pursuant to the terms of the lease with the tenant. According to Eghtesad, State Farm advised him that he could only make a claim for slander against the former tenant and that coverage was not afforded for his property damage claim.
After Eghtesad filed his form complaint, State Farm demurred to the complaint and argued that it did not state facts supporting a cause of action for breach of contract. Ultimately, the trial court agreed with State Farm and entered an order sustaining the demurrer without leave to amend, such that a judgment was entered in State Farm’s favor. Due to health reasons, Eghtesad was never able to file an opposition to the demurrer, despite two extensions of time provided by the trial court intended to allow Eghtesad time to retain counsel and to recover from injuries sustained as a result of an automobile accident.
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Michael Velladao, Lewis BrisboisMr. Velladao may be contacted at
Michael.Velladao@lewisbrisbois.com
Depreciation of Labor in Calculating Actual Cash Value Against Public Policy
February 16, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe insurer's depreciation of labor in the calculation of actual cash value was found to be against Arkansas public policy. Shelter Mut. Ins. Co. v. Goodner, 2015 Ark. LEXIS 460 (Ark. Dec. 10, 2015).
Shelter Mutual's policy provided that it would pay the insured "the actual cash value of all the damaged parts of the covered property." "Actual cash value" was defined as "total restoration cost less depreciation." The policy explained, "When calculating depreciation, we will include the depreciation of the materials, the labor, and the tax attributable to each party which must be replaced to allow for replacement of the damaged part, whether or not that part is damaged."
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
How Will Today’s Pandemic Impact Tomorrow’s Construction Contracts?
October 26, 2020 —
Levi W. Barrett, Nathan A. Cohen & Mark A. Snyder - Peckar & AbramsonThe emergence of COVID-19 has created a new set of challenges in the already complex world of negotiating construction contracts. In the pre-COVID-19 era, general contractors, construction managers and those negotiating on their behalf, needed to balance a variety of fairly well-established legal risks and exposures and commercial realities with the need to maintain a positive relationship with their counterparty. While many are rightfully concerned with addressing the impacts of COVID-19 to their on-going projects, those negotiating new contracts now are undoubtedly cognizant that they are negotiating in the midst of an unpredictable future that is tipping the historical negotiating balance. The following presents some crucial areas to focus on when negotiating and drafting your contracts in this new era.
Contract Terms Through the COVID-19 Lens
Contractors should examine proposed new contracts carefully to identify rights that afford COVID-19 protections and identify contractual obligations that create COVID-19 commercial risks.
Specific attention should be paid to those sections relating to force majeure/excusable delay, emergencies, changes (including changes in law), contingency, suspension and termination, site investigation as well as all representations and warranties. The paramount concern in examining these provisions is to ensure that they not only entitle the contractor to relief for those unknown events, emergencies and changes, but that they also contain sufficient entitlement for the contractor to obtain both time extensions and financial compensation for unknown impacts of a known event – the COVID-19 pandemic.
Reprinted courtesy of
Levi W. Barrett, Peckar & Abramson, P.C.,
Nathan A. Cohen, Peckar & Abramson, P.C.and
Mark A. Snyder, Peckar & Abramson, P.C.
Mr. Barrett may be contacted at lbarrett@pecklaw.com
Mr. Cohen may be contacted at ncohen@pecklaw.com
Mr. Snyder may be contacted at msnyder@pecklaw.com
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“You Can’t Climb a Tile Wall”
February 03, 2025 —
Daniel Lund III - Lexology… or, in certain circumstances, walk on a tile floor.
A Louisiana appellate court reversed a trial court’s summary judgment in favor of a project architect in a case involving liability for a slip-and-fall incident at a pool area and a casino in Lake Charles, Louisiana. The plaintiff alleged that travertine tile on which she slipped was unsuitable for wet areas, thus failing to meet the necessary safety standards.
The architect – the professional of record for the original design of the casino – attempted to deflect responsibility by arguing that a landscape architect which specified the travertine was an independent contractor and thus solely liable for any issues related to the tile. Ultimately, however, the court held that the absence of a contract between the architect and landscape architect left unresolved questions about the nature of their relationship and the degree of control the former exercised over the work of the latter.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
The Importance of the Recent Amendment to Rule 702 of the Federal Rules of Evidence
January 22, 2024 —
Andrew G. Vicknair - The Dispute ResolverEvery litigator understands that expert witnesses play a key role in litigation, especially when dealing with construction issues. Expert testimony at trial can be a deciding factor in persuading a judge or jury in your client’s favor. It is so important that, as parties get closer to trial, litigators often spend considerable time filing motions to limit or disqualify certain aspects of expert testimony in an effort to gain an advantage at trial. Because experts are a key aspect of the trial process, it is important to understand the various rules governing use of expert testimony, primarily Rule 702 of the Federal Rules of Evidence.
On December 1, 2023, amendments to Rule 702 of the Federal Rules of Evidence went into effect which added the language in underline below and removed the language which is crossed out:
Rule 702. Testimony by Expert Witness
A witness who is qualified as an expert by knowledge, skill, experience, training, or education may testify in the form of an opinion or otherwise if the proponent demonstrates to the court that it is more likely than not that:
(a) the expert’s scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue;
(b) the testimony is based on sufficient facts or data;
(c) the testimony is the product of reliable principles and methods; and
(d) the expert has reliably applied expert’s opinion reflects a reliable application of the principles and methods to the facts of the case.
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Andrew G. Vicknair, D'Arcy Vicknair, LLCMr. Vicknair may be contacted at
agv@darcyvicknair.com
Landmark San Diego Hotel Settles Defects Suit for $6.4 Million
March 04, 2011 —
Beverley BevenFlorezCDJ STAFFAfter five years of legal battles, the condo owners of the El Cortez Hotel building in downtown San Diego settled for $6.4 million, as reported by The San Diego Union-Tribune on March 28, 2011. The Homeowners Association will net just over $3 million from the settlement.
The litigation may have had an adverse effect on the value of the condos within the El Cortez Hotel building. According to an article by Kelly Bennett of Voice of San Diego, “Many condos in the building originally sold for more than $600,000. Currently, the three units on the market are asking for just more than $200,000, the U-T said.”
Andrew Berman, the owners’ attorney, told The San Diego Union-Tribune that the five years of litigation included six lawsuits, 200 depositions, and multiple construction tests.
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