Columbus Ohio Building Expert Directory

AB5 Construction Exemption - A Checklist to Avoid Application of AB5's Three-Part Test

May 18, 2020 — Blake A. Dillion - Payne & Fears
Construction companies have a unique opportunity to avoid the application of the restrictive new independent contractors' law that took effect this year. This article provides a checklist that will help construction companies determine whether their relationships with subcontractors qualify for this exemption. California’s Assembly Bill 5 (“AB5”), which went into effect Jan. 1, 2020, enacts into a statute last year’s California Supreme Court decision in Dynamex Operations West, Inc. v. Superior Court, 4 Cal. 5th 903 (2018), and the Court’s three-part standard (the “ABC test”) for determining whether a worker may be classified as an employee or an independent contractor. Certain professions and industries are potentially exempt from this standard, including the construction industry. The ABC test does not apply to the relationship between a contractor and an individual performing work pursuant to a subcontractor in the construction industry if certain criteria are met. In order for the “construction exemption” to apply, the contractor must demonstrate that all of the following criteria are satisfied. Read the court decision
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Reprinted courtesy of Blake A. Dillion, Payne & Fears
Mr. Dillion may be contacted at bad@paynefears.com

A Top U.S. Seller of Carbon Offsets Starts Investigating Its Own Projects

April 19, 2021 — Ben Elgin - Bloomberg
Following concerns that it is facilitating the sale of meaningless carbon credits to corporate clients, the Nature Conservancy says it’s conducting an internal review of its portfolio of carbon-offset projects. The nonprofit owns or has helped develop more than 20 such projects on forested lands mostly in the U.S., which generate credits that are purchased by such companies as JPMorgan Chase & Co., BlackRock Inc., and Walt Disney Co., which use them to claim large reductions in their own publicly reported emissions. The self-examination follows a Bloomberg Green investigation last year that found the world’s largest environmental group taking credit for preserving trees in no danger of destruction. The internal review is a sign that it’s at least questioning some practices that have become widespread in the environmental world, and could carry implications for the broader market for carbon credits. Read the court decision
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Reprinted courtesy of Ben Elgin, Bloomberg

United States Supreme Court Limits Class Arbitration

May 13, 2019 — Jeffrey K. Brown & Raymond J. Nhan - Payne & Fears
On April 24, 2019, the United States Supreme Court held that the Federal Arbitration Act ("FAA") bars orders requiring class arbitration when an agreement is ambiguous about the availability of such a procedure. Lamps Plus v. Varela, 587 U.S. __ , 2019 WL 1780275, (2019). In Lamps Plus, the Court clarified a 2010 case in which it held that a court may not compel arbitration on a class-wide basis when an agreement is silent on the availability of class arbitration. Stolt-Nielsen S.A. v. Animal Feeds Int'l Corp., 559 U.S. 662, 687 (2012). In Lamps Plus, a 5-4 decision authored by Chief Justice Roberts, the Court explained that because the FAA envisions the use of traditional individualized arbitration, a party cannot be forced under the FAA to submit to class arbitration unless the parties explicitly agreed to do so. Because class arbitration does not share the benefits of traditional arbitration -- lower costs, greater efficiency and speed, and the parties' choice of a neutral -- the FAA requires more than an "ambiguous" agreement to show that the parties bound themselves to arbitrate on a class-wide basis. Unlike individualized arbitration, or even traditional class actions, class arbitration raises serious due process concerns because absent class members will have limited judicial review. Based on these critical differences between individual and class arbitration, the Court reiterated in Lamps Plus that "courts may not infer consent to participate in class arbitration absent an affirmative contractual basis for concluding that the party agreed to do so." Reprinted courtesy of Jeffrey K. Brown, Payne & Fears and Raymond J. Nhan, Payne & Fears Mr. Brown may be contacted at jkb@paynefears.com Mr. Nhan may be contacted at rjn@paynefears.com Read the court decision
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The Secret to Success Is Doing Things a Little Bit Differently

November 16, 2020 — Charlie Kimmel - Construction Executive
Throughout the 1960s and 1970s, Rick Barry made his mark on the world of college and professional basketball. He was a skilled small forward who averaged 37.4 points per game during his senior year at the University of Miami, and he was the second overall pick in the 1965 NBA draft. But he’s best remembered as a prolific free-throw shooter: he led the NBA in free-throw percentage for several consecutive years. When he retired in 1980, his free-throw percentage (.900) was the highest in NBA history. So what was the secret to his success? He did things a little bit differently. While the vast majority of basketball players shoot overhand free throws, Barry was famous for his unorthodox underhanded shots. This technique was not only incredibly effective, but it also set him apart as a player and contributed to his popularity. Construction companies can learn a lot from Barry’s strategy of doing things a little bit differently to achieve success. Most companies don’t need to worry about their employees’ free-throw techniques. But all of them need to set themselves apart from their competition and establish strong reputations in today’s highly competitive market. Reprinted courtesy of Charlie Kimmel, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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New Insurance Case: Owners' Insurance Barred in Reimbursement Action against Tenant

April 17, 2019 — Jason Adams - Gibbs Giden
The Western Heritage Ins. Co. v. Frances Todd, Inc. (2019 Cal.App. LEXIS 299 / 2019 WL 1450731) case has potential implications for insurance carriers, policyholders, condominium associations, unit owners, landlords and tenants. The case involves a fire at a commercial condominium complex (the “Association”). The Association’s CC&Rs required the Association to purchase a master fire insurance policy for the benefit of the Association and owners, with a waiver of subrogation endorsement that stated the insurance company could not seek reimbursement from the Association, its officers, owners or occupants of the units in the event of a covered fire. The CC&Rs also prohibited individual owners from obtaining their own fire insurance. The Association purchased the required fire insurance policy from Western Heritage Insurance Company (“Western Heritage”). One of the owner’s tenants, Frances Todd, Inc. (“Frances Todd”), allegedly caused a fire that damaged several units. Although the unit owner was covered as an additional named insured under the Western Heritage fire policy, the tenant, Frances Todd, was not. Western Heritage paid for the common area fire damage caused by Francis Todd, and then sued Frances Todd in a subrogation action to recover the amounts paid. Read the court decision
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Reprinted courtesy of Jason M. Adams, Gibbs Giden
Mr. Adams may be contacted at jadams@gibbsgiden.com

Insurer's Motion to Dismiss Business Interruption, COVID-19 Claims Under Pollution Policy Fails

January 11, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The insurer was unsuccessful in seeking to dismiss business interruption claims due to COVID-19 under a pollution policy. New York Botanical Garden v. Allied World Assur., 2021 N.Y. Misc. LEXIS 6012 (N.Y. Sup. Ct. Oct.15, 2021). The insured was forced to cease operation after executive orders by the governor and mayor were issued in March 2020. The insured also had to reduce its in-person workforce by 100%. The insured's claim for business interruption and contingent business interruption were denied by Allied. The insured sued for a declaratory judgment. Allied moved to dismiss, arguing that the executive orders were issued for prophylactic reasons in an effort to mitigate the spread of the virus. They were not issued solely to address the presence of COVID-19 at any non-insured owned location, but were issued broadly to limit the risk of spreading the COVID-19 virus. The insured responded that its broader pollution liability policy was not a typical civil authority policy that required the physical loss or damage to property. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

How the Cumulative Impact Theory has been Defined

November 30, 2020 — David Adelstein - Florida Construction Legal Updates
Largely in the federal contract arena, there is a theory referred to as “cumulative impacts” used by a contractor to recover unforeseeable costs associated with a multitude of changes that have an overwhelming ripple effect on its efficiency, particularly efficiency dealing with its original, base contract work. In other words, by dealing with extensive changes, there is an unforeseeable impact imposed on the contractor relative to its unchanged or base contract work. Under this theory, the contractor oftentimes prices its cumulative impact under a total cost approach with an examination on its cost overrun. However, this is not an easy theory to prevail on because there needs to be a focus on the sheer number of changes, causation supporting the impact, and whether there were concurrent impacts or delays that played a role in the ripple effect. See, e.g., Appeals of J.A. Jones Const. Co., ENGBCA No. 6348, 00-2 BCA P 31000 (July 7, 2000) (“However, in the vast majority of cases such claims are routinely denied because there were an insufficient number of changes, contractor-caused concurrent delays, disruptions and inefficiencies and/or a general absence of evidence of causation and impact.”). To best articulate how the cumulative impact theory has been defined, I want to include language directly from courts and board of contract appeals that have dealt with this theory. This way the contractor knows how to best work with their experts with this definition in mind–and, yes, experts will be needed–to persuasively package and establish causation and damages stemming from the multitude of changes. While many of these definitions are worded differently, you will see they have the same focus dealing with the unforeseeable ripple effect of the extensive changes. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Insurer Not Entitled to Summary Judgment on Water Damage Claims

January 22, 2014 — Tred R. Eyerly – Insurance Law Hawaii
Issues of fact surrounding the applicability of various exclusions prevented the insurer from securing summary judgment on claims for water damage. Babai v. Allstate Ins. Co., 2013 U.S. Dist. LEXIS 175336 (W.D. Wash. Dec. 13, 2013). The insured noticed water damage to various areas of her home during remodeling. Allstate denied the claim because the loss was "not sudden and accidental," but rather progressive. Allstate cited the policy provision for "wear and tear, aging, . . . deterioration," etc., to exclude coverage. Plaintiff filed suit and Allstate moved for summary judgment. First, Allstate argued that construction defects were excluded from coverage based upon the exclusion for "latent defects." "Latent defects" were those that would not be discovered by a reasonable person. There was no evidence that the water damage was readily discoverable, so Allstate's argument failed. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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