New OSHA Rule Creates Electronic Reporting Requirement
June 22, 2016 —
John K. Baker & Kevin Conrad – White and Williams LLPThe United States Occupational Safety and Health Administration (OSHA) issued a
Final Rule revising portions of its Recording and Reporting Occupational Injuries and Illnesses regulations (Recording and Reporting Regulations). The revisions take effect August 10, 2016.
Employers subject to the new requirements have until July 1, 2017 to submit electronically the required information for calendar year 2016. OSHA will make electronically-submitted workplace-safety data for each reporting employer available publicly in an online database.
Reprinted courtesy of
John K. Baker, White and Williams LLP and
Kevin Conrad, White and Williams LLP
Mr. Baker may be contacted at bakerj@whiteandwilliams.com
Mr. Conrad may be contacted at conradk@whiteandwilliams.com
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Do Not Pass Go! Duty to Defend in a Professional Services Agreement (law note)
April 03, 2019 —
Melissa Dewey Brumback - Construction Law in North CarolinaRecently a client asked me to review a contract for his Firm. The Owner, who had prepared the draft, had inserted a rather stringent “duty to defend” clause.
As I told my client, a duty to defend clause is not a good idea for a couple of reasons. First, if you agree to provide a defense, what that means is that you are footing the bill for the Owner if the Owner is sued by another party. Think about that for a minute. You are paying legal fees for someone else’s legal defense. You may or may not be able to direct the litigation or have a say in who is hired. Can you say open check book?
Secondly, and more importantly, the duty to defend is almost never insurable. What that means is that your professional liability carrier will not be footing the bill—your Firm will be doing it. This is not a case of adding the Owner as an additional insured, so do not confuse the two. Agreeing to a duty to defend is an extremely burdensome, and potentially costly, mistake.
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
Hawaiian Electric Finalizes $2 Billion Maui Fire Settlement
November 18, 2024 —
Mark Chediak - BloombergHawaiian Electric Industries formalized a $2 billion agreement to settle damage claims from a wildfire that razed the historic town of Lahaina and killed more than 100 people.
The utility-owner had reached a tentative agreement in August in which it, along with other defendants including the state of Hawaii, Maui County and landowners, would pay $4 billion to resolve hundreds of lawsuits stemming from last year’s wildfire, according to a filing Tuesday.
The settlements don’t resolve claims with insurers that are part of separate lawsuits.
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Mark Chediak, Bloomberg
Minnesota Senate Office Building Called Unconstitutional
November 06, 2013 —
CDJ STAFFThe state of Minnesota has plans for a $63 million Senate office building. Not so fast, says a former member of the Minnesota House. Jim Knoblach, the former representative for St. Cloud, has filed a lawsuit claiming that the appropriation for the building violated the state’s constitution.
Funding for the senate office building was included in a tax bill, and Mr. Knoblach claims that violates the state’s requirement that laws have only a single subject. “It was buried deep in the tax bill and passed on the chaotic last day of session,” said Mr. Knoblach.
In Minnesota, public works projects must reach 60% approval in both houses, while the tax bill only required 50% approval. State Republicans oppose the building.
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7 Sustainability Ideas for Modular Classrooms in the Education Industry (guest post)
June 10, 2015 —
Melissa Dewey Brumback – Construction Law in North CarolinaToday, a guest post on sustainable modular classrooms from Kathy Werder, a freelance architect by profession and a researcher by nature. According to Kathy, most of her research papers focus on promoting integration that leads to sustainable and lean design and construction practices. Kathy is obsessed with the latest rage in the construction industry – modular building solutions. She is also an avid writer, and loves blogging about green buildings and portable construction units. Welcome, Kathy!
According to Wikipedia, a sustainable building refers to “ a structure and using process that is environmentally responsible and resource-efficient throughout a building’s life-cycle from sitting, to design, construction, operation, maintenance, renovation, and demolition.”
So if we accept this definition to be true, in order to make an actual sustainable building we have to consider the entire process of building right from the blueprint stage all the way to demolition, and ensure that at every step of the way there is minimal or no negative impact on the environment, especially in terms of resource efficiency.
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Melissa Dewey Brumback, Construction Law in North CarolinaMs. Brumback may be contacted at
mbrumback@rl-law.com
The Contractor’s Contingency: What Contractors and Construction Managers Need to Know and Be Wary Of
December 04, 2023 —
Skyler L. Santomartino - Peckar & Abramson, P.C.Contractors and construction managers who enter into cost reimbursable contracts subject to a guaranteed maximum price (GMP) are responsible for all project costs exceeding the GMP. For this reason, it is imperative that contractors negotiate and incorporate into the GMP a financial buffer that accounts for the unanticipated project costs that are not reimbursable as change orders or costs of the work. This is where the contractor’s contingency comes into play.[
1]
The contractor’s contingency is a vehicle that allows contractors to mitigate some of the risks inherent in GMP contracts. When drafted properly, a contingency clause allows the contractor and only the contractor to access funds set aside by the owner to address unpredictable or unknown project costs.
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Skyler L. Santomartino, Peckar & Abramson, P.C.Mr. Santomartino may be contacted at
ssantomartino@pecklaw.com
Bremer Whyte Congratulates Nicole Nuzzo on OCBA Professionalism and Ethics Committee Appointment
November 17, 2016 —
Beverley BevenFlorez – CDJ StaffNicole Nuzzo of Bremer Whyte Brown & O’Meara LLP was selected as one of the fifteen members of the Orange County Bar Association’s (OCBA) Professionalism and Ethics Committee, announced the firm. Committee members “are committed to supporting and encouraging OCBA members to engage in the professional and ethical practice of law. Members of the Committee are appointed by the OCBA president.”
Ms. Nuzzo practices Family Law at the firm’s Newport Beach, California office.
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How California’s Construction Industry has dealt with the New Indemnity Law
October 22, 2014 —
Mark S. Himmelstein, Esq. - Newmeyer & DillionIt has been almost two years since the California legislature enacted changes to the state’s indemnity law affecting commercial construction contracts. Although we do not yet have any court opinions analyzing the new statutes, the attorneys at
Newmeyer & Dillion now have real world experience in negotiating such indemnity provisions. It is time to evaluate how the construction community has reacted to the changes. In this article, we examine the practical applications of the new law to various construction agreements.
Enacted on January 1, 2013, the new legislation was the latest in a series of efforts by subcontractors and their insurers to eliminate “Type I” indemnity clauses. Under a Type I provision, a subcontractor has a duty to indemnify the developer or general contractor for the negligence of the developer or general contractor or other subcontractors, in addition to the negligence of the subcontractor itself. In 2006, the law was changed to preclude Type I provisions regarding “For Sale” residential construction defect claims. At that time, there was no such restriction enacted for commercial construction contracts. However, since then, commercial subcontractors have been seeking similar legislation. Their efforts culminated in the 2013 revisions regarding commercial contracts.
Commercial Subcontracts
Pursuant to the new indemnity statute — Civil Code section 2782.05 — we have revised our clients’ commercial subcontracts to:
(a) Eliminate the requirement that the subcontractor indemnify the general contractor for the general contractor’s “active negligence;” and
(b) Include the subcontractor’s options for defending claims for which they have an indemnity obligation.
Many subcontractors have responded: “Hey, wait a minute, the new legislation eliminated Type I indemnity so you (general contractor) cannot still require any indemnification for the general contractor’s negligence”. Well, that might be the rumor in subcontractor circles, but the new statute does not eliminate indemnity for the general contractor’s passive fault. In addition, the Civil Code lists 13 instances where the new indemnity restrictions do not apply.
Residential Subcontracts
The legislature did not make anyone’s job easier by drafting a different indemnity provision for commercial subcontracts than for residential subcontracts. In fact, the residential and commercial statutes are different in several critical respects. First, the restrictions on indemnity in the residential statute apply only to construction defect claims in newly constructed “For Sale” houses. The statute does not preclude Type I indemnity provisions for any other claims arising out of residential subcontracts. In contrast, the indemnity restrictions in the commercial statute apply to all claims arising out of commercial subcontracts. In addition, the commercial statute allows indemnity for the general contractor’s passive fault. Since some subcontractors on “residential” projects perform off-site “commercial” work as well, we have amended even residential subcontracts to address the subcontractors’ various indemnity obligations for different parts of their work (e.g., residential work versus commercial work).
Owner-Contractor Agreements
The January 1, 2013 new indemnity provisions apply not only to subcontracts, but also to owner-contractor agreements. Civil Code section 2782(c)(1) precludes indemnity for an owner’s active negligence. Interestingly, the exclusions contained in Civil Code section 2782.05 for subcontracts do not apply, and the statute does not provide contractors with the option of defending claims set forth in the sections concerning subcontracts. Therefore, we have revised the indemnity provisions in owner-contractor agreements to exclude indemnity for the owner’s active negligence.
Design Professional Agreements
The 2007 revisions with respect to “For Sale” residential contracts (discussed above), and the 2013 revisions for commercial contracts do not apply to design professionals. The new indemnity statute concerning commercial subcontracts specifically excludes design professionals from the “anti-indemnity” benefits provided to subcontractors. Therefore, Type I indemnity provisions are fair game and can still be included in design professional contracts.
Conclusion
In sum, Civil Code sections 2782 et seq. now contain an increasingly complex framework for indemnity rules in construction contracts. For example, there is one set of rules for “For Sale” residential construction defect claims (no indemnity for the developer’s active or passive negligence), another for any other claims arising out of residential construction (Type I indemnity is permitted), another for commercial subcontracts (no indemnity for the general contractor’s active negligence, but indemnity for the general contractor’s passive negligence unless any of the exceptions apply, in which case Type I indemnity is permitted), and yet another for commercial owner contractor agreements (no indemnity for the owner’s active negligence, but indemnity for the owner’s passive negligence with no exceptions).
California’s indemnity laws are complex, and rumors as to the impact of the new legislation have made it even more difficult to negotiate these provisions. It is imperative that indemnity clauses in construction contracts clearly delineate the obligations for the specific type or types of work contemplated by the contract. The legislature’s attempt to simplify indemnity obligations has actually made such provisions lengthier and more cumbersome. As experienced construction attorneys, our task is to draft indemnity provisions that comply with the laws, address potential claims, and are understandable.
Mr. Himmelstein is a partner in the Newport Beach office of Newmeyer & Dillion and practices in the areas of construction, real estate, business and insurance litigation. He also specializes in drafting and negotiating construction and real estate contracts. Mark can be reached at mark.himmelstein@ndlf.com.
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