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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Liability Cap Does Not Exclude Defense Costs for Loss Related to Deep Water Horizon
May 01, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe Texas Supreme Court found that Lloyd's endorsement imposing a cap on liability for a joint venture did not exclude coverage for defense costs. Anadarko Petroleum Corp. v. Houston Cas. Co. et al., 2019 Texas LEXIS 53 (Texas Jan. 25 2019j.
Pursuant to a joint venture agreement, Anadarko held a 25% ownership interest in the Macondo Well in the Gulf of Mexico. When the well blew out, numerous third parties filed claims against BP entities and Anadarko. Many of the claims were consolidated into a multi-district litigation (MDL). The MDL court granted a declaratory judgment finding BP and Anadarko jointly and severally liable. BP and Anadarko reached a settlement in which Anadarko agreed to transfer its 25% ownership interest to BP and pay BP $4 billion. In exchange, BP agreed to release any claims it had against Anadarko and to indemnify Anadarko against all other liabilities arising out of the Deepwater Horizon incident. BP did not agree, however, to cover Anadarko's defense costs.
Anadarko had a policy through Lloyd's. The policy provided excess-liability coverage limited to $150 million per occurrence. Lloyd's paid Anadarko $37.5 million (25% of the $150 million limit) based upon Anadarko 25% ownership in the joint venture. Anadarko argued that Lloyd's still owed all of Anadarko's defense expenses, up to the $150 million limit.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Texas Supreme Court Finds Payment of Appraisal Award Does Not Absolve Insurer of Statutory Liability
April 19, 2021 —
Allison Griswold & Sarah Smith - Lewis BrisboisThe Texas Supreme Court recently published its long-awaited decision in the Hinojos v. State Farm Lloyds. In it, the court affirmed its holding in Barbara Technologies, finding that payment of an appraisal award does not absolve an insurer of statutory liability when the insurer accepts a claim but pays only part of the amount it owes within the statutory deadline, and a policy holder can proceed with an action under the Texas Prompt Payment of Claims Act.
In 2013, Louis Hinojos made a claim for storm damage to his home. State Farm’s initial inspection resulted in an estimate below the deductible, but Hinojos disagreed and requested a second inspection. At the second inspection, the adjuster identified additional damage resulting in a payment to Hinojos of $1,995.11. Hinojos then sued State Farm – and State Farm invoked appraisal approximately 15 months after suit was filed. The appraisal resulted in State Farm tendering an additional payment of $22,974.75. State Farm moved for summary judgment, arguing that timely payment of an appraisal award precluded prompt payment (or Chapter 542) damages. The trial court granted summary judgment and Hinojos appealed (notably Barbara Technologies had not yet been decided). The Court of Appeals affirmed State Farm’s victory on the basis that “State Farm made a reasonable payment on Hinojos’s claim within the sixty-day statutory limit….” Hinojos petitioned the Texas Supreme Court for review.
Reprinted courtesy of
Allison Griswold, Lewis Brisbois and
Sarah Smith, Lewis Brisbois
Ms. Griswold may be contacted at Allison.Griswold@lewisbrisbois.com
Ms. Smith may be contacted at Sarah.Smith@lewisbrisbois.com
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You Can Now Build a Multi-Million Dollar Home via Your iPad
January 07, 2015 —
Sara Pepitone – BloombergThere are apps for real estate sales, apps for paint color, apps for arranging furniture, and apps for making the best use of natural light. But until now, there was no app for that most fundamental process of homesteading: creating a new one from scratch. In the coming weeks Al Hamra Real Estate Development will unveil its all-inclusive Home Builder app.
All you need is an iPad and five million UAE Dirham ($1.36 million), to start. Swipe and spend has never been so elite.
Designed by A++ Architecture Design and Communication, Home Builder starts with property acquisition and ends with finishes and furnishings. Well, to be precise, it ends with a form sent to a sales person to calculate a price to purchase. This means less time and fewer people and permits in your way, plus a more gratifying (literal) hands-on experience in the process.
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Sara Pepitone, Bloomberg
French Laundry Spices Up COVID-19 Business Interruption Debate
April 20, 2020 —
Jeffrey J. Vita & Melanie A. McDonald - Saxe Doernberger & VitaOn March 26, 2020, Michelin-rated Napa Valley restaurants, French Laundry and Bouchon Bistro, and their celebrity chef, Thomas Keller, filed the second known
coronavirus-related declaratory judgment (DJ) lawsuit by a restaurant. The restaurants filed their DJ against Hartford Fire Insurance Company just seven days after Napa County issued a Shelter at Home Order.1 Chef Keller’s suit comes on the heels of the first such suit by a restaurant seeking to recover business income losses, filed by iconic New Orleans French Quarter restaurant Oceana Grill2 on March 17, just four days after the Louisiana governor issued an order prohibiting gatherings of more than 250 people.
As local governments seek to protect their citizens and prevent an onslaught of cases in area hospitals, they are issuing various “stay home,” “shelter at home,” and similar orders to force social distancing and to help flatten the curve of the growth in COVID-19 cases. Restaurants nationwide are especially hard hit by these orders, as many of these orders contain size limitations on gatherings, which have required that restaurants and bars limit capacity (as in the March 13th Louisiana order). Other such orders require non-essential businesses to “cease all activities in the County” (as in the Napa County Shelter at Home order). The Napa County order does not exempt restaurants as “essential businesses,” except when providing food for take-out or delivery. Other orders, still, directly address restaurants and require them to cease allowing public consumption of food and beverages (as in the subsequent, March 17th Louisiana order).
Reprinted courtesy of
Jeffrey J. Vita, Saxe Doernberger & Vita, P.C. and
Melanie A. McDonald, Saxe Doernberger & Vita, P.C.
Mr. Vita may be contacted at jjv@sdvlaw.com
Ms. McDonald may be contacted at mam@sdvlaw.com
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Sanctions Issued for Frivolous Hurricane Sandy Complaint Filed Against Insurer
February 26, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe federal district court for the district of New Jersey cracked down on a Texas law firm that filed 250 Hurricane Sandy related cases against insurers without adequate investigation. Lighthouse Point Marina & Yacht Club, LLC v. Int'l Marine Underwriters, 2015 U.S. Dist. LEXIS 6430 (D. N.J. Jan. 20, 2015).
The Texas firm filed more that 250 actions in New Jersey courts against insurers to recover for alleged property damage caused by Hurricane Sandy. The original complaints were nearly identical with the same typos. The complaint in this case alleged that the insurer did not pay benefits under the policy for "extreme external and internal damages, as well as other wind-related loss," but did not specify the value or nature of the damage. The insurer answered that it sent an adjuster to the property soon after the storm and found wind damages to two fences, but no damage to any building on the property. The adjuster valued the claim at $1,612.00 and recommended a payment of $612.00, after applying the $1000 deductible.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Remodel Leads to Construction Defect Lawsuit
October 16, 2013 —
CDJ STAFFThe Sacramento, California law firm Anderson Shoech has announced that it will be filing a construction defect lawsuit concerning a single-family home in Sonora, California. The remodel is alleged to have lead to roof leaks and mold growth. Anderson Schoech will have the home inspected by a general contractor who will be retained as an expert witness.
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A Quick Virginia Mechanic’s Lien Timing Refresher
February 27, 2023 —
Christopher G. Hill - Construction Law MusingsAs those who read Construction Law Musings on a regular basis know,
mechanic’s liens are a big part of my construction law practice. These
tricky and strictly enforced statutory collection tools are very powerful when correctly recorded and utterly useless if they aren’t recorded in a timely fashion and with the correct information contained within them. Couple that fact with recent
changes to the mechanic’s lien form in 2019, and I feel the need to give a quick refresher.
If you’ve kept up with Musings, you know about the two big numbers for Virginia mechanic’s lien timing, 90 and 150. These should be kept in mind for every general contractor, subcontractor, or supplier on any construction project in Virginia.
Virginia Code Section 43-4 sets out the reasons to keep these numbers in mind. The code section sets out why you need to know these numbers.
The 90 refers to the deadline for recording a lien. This number affects the right to a lien in Virginia. In order to preserve lien rights, a construction contractor must record the lien within ninety days of the last day of the last month in which the last work was performed or no later than ninety days from the date of completion of the project or other termination of work. The short version is that most general contractors on commercial projects have 90 days from the last work in which to record their lien and most subcontractors have 90 days from the last day of the last month of work. However, the best practice is to simply calculate the 90 days from the last work performed or material supplied to avoid issues and arguments between attorneys regarding timing.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com