New York Court Rejects Owner’s Bid for Additional Insured Coverage
September 06, 2021 —
Eric D. Suben - Traub LiebermanTenders for additional insured coverage in construction accidents are frequently litigated in New York courts. Although the past few years have seen changes in the law regarding the causal nexus between the named insured’s work and coverage for the purported additional insured, courts often find there is at least a duty to defend the additional insured where there are allegations of the employer/subcontractor’s presence at the site.
An exception is the recent decision in Gemini Insurance Company v. Certain Underwriters at Lloyd’s, London, Index No. 652669/20 in the Supreme Court of the State of New York, County of New York (Lebovits, J.). In that case, Gemini insured the owner and general contractor of a construction project, and Lloyd’s insured the injured claimant’s employer under a policy endorsed to provide additional insured coverage to entities who “have agreed in writing in a contract or agreement” with the named insured that they must be “added as additional insured.” Although the court found that the contracts here satisfied this requirement for additional insured coverage, the court’s analysis did not end there.
Noting that even where such contract exists, the Lloyd’s policy would not provide additional insured coverage “in all circumstances” (emphasis in original), the court next considered whether the underlying injury was “caused in whole or in part by: 1. [The named insured’s] acts or omissions, or 2. The acts or omissions of those acting on [the named insured’s] behalf,” as required under the endorsement’s wording.
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Eric D. Suben, Traub LiebermanMr. Suben may be contacted at
esuben@tlsslaw.com
UK Court Rules Against Bechtel in High-Speed Rail Contract Dispute
March 29, 2021 —
Peter Reina - Engineering News-RecordThe U.K. subsidiary of Bechtel Inc. has lost its legal challenge against the owner of the U.K. London-Birmingham high-speed railroad project, HS2, over its failed bid for a roughly $140-million Construction Partner (CP) contract in early 2019.
Reprinted courtesy of
Peter Reina, Engineering News-Record
Mr. Reina may be contacted at reina@btinternet.com
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Developer's Novel Virus-killing Air Filter Ups Standard for Indoor Air Quality
April 12, 2021 —
Nadine M. Post - Engineering News-RecordLast April 13, as an ambulance sped him to the hospital, Monzer Hourani overheard the emergency medical technicians say they didn’t think he was going to make it. Immediately, the 77-year-old medical-building developer started praying: “God, give me time to finish this.”
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Nadine M. Post, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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No Rest for the Weary: Project Completion Is the Beginning of Litigation
June 18, 2019 —
Albert Li & Bob Fitzsimmons - Construction ExecutiveIn today’s environment, most construction projects end up in some form of litigation. Construction is full-time employment for lawyers – from contract negotiation to project management, lien and payment issues. Years after project completion, a company still can face construction defect litigation and be served with a Notice of Opportunity to Repair, which in most states is now codified into statute. This is the beginning of what most likely will become a lawsuit, involving many of the subcontractors.
Watch Out for the Construction Contract Blame Game
The first phase of post construction litigation involves the review of contract and insurance policy language in an attempt to transfer responsibility in the litigation to other parties.
Before construction began, contract negotiation focused on budget and timeline. In the post-construction phase, two less noticed provisions of the contract are critical – indemnity and insurance.
Reprinted courtesy of
Albert Li & Bob Fitzsimmons, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Fitzsimmons may be contacted at rfitzsimmons@rumberger.com
Mr. Li may be contacted at ali@rumberger.com
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Review of Recent Contractors State License Board Changes
February 27, 2023 —
Alexander Moore - Kahana FeldCalifornia’s Contractors State License Board (CSLB) was established in 1929 to protect California residents through licensing and regulating contractors working in the state. Today, the CSLB licenses approximately 290,000 contractors, utilizing forty-four different classifications. Each licensing classification specifies the type of contracting work permitted by that classification.
The CSLB website (www.cslb.ca.gov) contains a wealth of information for contractors and non-contractor consumers alike. Consumers can use the website’s features to check the history and business information of contractors, searching via license number, business name, or individual name. License applicants can use the website for instructions and forms for the application process. Contractors can use the website for renewals, regulations, and various resources.
One the CSLB’s most important roles is assisting contractors with keeping track of the multitude of state regulations, and periodic changes thereto, that apply to those in the construction trades. The CSLB posts periodic Industry Bulletins which provide helpful guidance and reminders of important construction topics. At year end, the CSLB issues a bulletin to update licensees of the changes to California Law that will become effective on the first of January in the coming year. Below are four of the more interesting and impactful statutory changes.
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Alexander Moore, Kahana FeldMr. Moore may be contacted at
amoore@kahanafeld.com
Construction Litigation Roundup: “Just Hanging Around”
August 14, 2023 —
Daniel Lund III - LexologyA subcontractor asserting a payment bond claim for “standby” time for its equipment on the Cline Avenue bridge project (over Indiana Harbor and Ship Canal in East Chicago, Indiana) received pushback from the payment bond surety.
In fact, the duration of the standby time occurred after the surety’s principal, the general contractor, had been placed in default and terminated on the general contract. According to the surety: “After termination of the contract… it is impossible for labor, materials, and equipment to have been furnished for use in performing the terminated contract.” The surety filed a motion for summary judgment.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
New Evidence Code Requires Attorney to Obtain Written Acknowledgement that the Confidential Nature of Mediation has been Disclosed to the Client
January 02, 2019 —
Steven J. Pearse, Esq. & David A. Napper, Esq. – Chapman Glucksman Dean Roeb & BargerSenate Bill 954: MEDIATION CONFIDENTIALITY DISCLOSURES.
California regards mediation as a beneficial process for parties to resolve disputes in an expeditious and economical fashion. To assure open and candid participation, there is a longstanding policy in California to maintain confidentiality during the mediation process. However, the mediation confidentiality statutes have prevented some clients from suing their·attorneys for alleged malpractice that occurred during the mediation process. (see Cassel v. Superior Court, (2011) 51 Cal.4th 113). Senate Bill ("SB") 954, was recently passed and thereafter approved by the Governor on September 11, 2018 to address this concern.
SB 954, which will amend California Evidence Code section 1122 and add California Evidence Code section 1129, requires that an attorney representing a client participating in a mediation or a mediation consultation provide that client with a written disclosure and acknowledgement containing the mediation confidentiality restrictions as set forth in the California Evidence Code.
This written disclosure and acknowledgement requirement does not apply to class or representative actions. Additionally, the failure of an attorney to follow the new requirement will not be a basis to set aside an agreement prepared in the course of, or pursuant to, a mediation. Any communication, document, or writing related to an attorney's compliance with the disclosure requirement will not be considered confidential and may be used in a disciplinary proceeding if the communication, document, or writing does not disclose anything said or done or any admission made in the course of the mediation.
California Evidence Code section 1129 sets forth the exact language that must be used in the disclosure. It even informs the client that all communications between the client and the attorney made in preparation for a mediation, or during a mediation, are confidential and cannot be disclosed or used (except in extremely limited circumstances), even if the client later decides to sue the attorney for malpractice because of something that happens during the mediation.
The new disclosure requirement will allow mediation to maintain the confidentiality that encourages open and candid communications during the process while ensuring that before clients agree to mediation that the clients are made aware of how that confidentiality can potentially impact them. SB 954, will take effect on January 1,2019.
Reprinted courtesy of
Stephen J. Pearce, Chapman Glucksman Dean Roeb & Barger and
David A. Napper, Chapman Glucksman Dean Roeb & Barger
Mr. Pearce may be contacted at dnapper@cgdrblaw.com
Mr. Napper may be contacted at jpaster@HuntonAK.com
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Year and a Half Old Las Vegas VA Emergency Room Gets Rebuilt
March 07, 2014 —
Beverley BevenFlorez-CDJ STAFFLess than two years have passed since the billion dollar Las Vegas VA Medical Center construction was completed, and “earthmovers have begun churning the site again, this time to expand the hospital’s emergency room because the existing one is inadequate,” according to the Las Vegas Review-Journal. The new emergency room project is estimated to cost $16 million.
The current emergency room’s design is flawed. “VA officials this week couldn’t explain why the ambulance parking area was designed to be roughly 50 yards from the emergency room’s south entrance, a distance that adds critical seconds to a lifesaving situation,” reported the Las Vegas Review-Journal. Furthermore, VA officials did not confirm “who drew up the flawed design” or who “was responsible for checking the blueprints.”
The Las Vegas Review-Journal also reported that another reason for the expansion is that the current emergency room is too small. A VA spokesman had told the journal that “the emergency room ‘was built based on the workload and the funding that was available at the time,’” yet the journal pointed out that “the number of potential veterans projected to use the center” has remained constant.
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