Restaurant Wants SCOTUS to Dust Off Eleventh Circuit’s “Physical Loss” Ruling
February 01, 2021 —
Michael S. Levine & Geoffrey B. Fehling - Hunton Insurance Recovery BlogA South Florida restaurant has asked the US Supreme Court to overturn a federal district court’s ruling that the restaurant is not entitled to coverage under an “all risk” commercial property insurance policy for lost income and extra expenses resulting from nearby road construction. In the underlying coverage action, the policyholder, Mama Jo’s (operating as Berries in the Grove), sought coverage under its all-risk policy for business income losses and expenses caused by construction dust and debris that migrated into the restaurant. Should the Supreme Court grant certiorari, the case will be closely watched by insurers and policyholders alike as an indicator of the scope of coverage available under all-risk policies and whether the principles pertinent to construction dust and debris (at issue in Mama Jo’s claim) have any application to the thousands of pending claims for COVID-19-related business interruption losses pending in the state and federal court systems.
As previously discussed on this blog, the Eleventh Circuit’s decision deviates from Florida precedent on the issue of “direct physical loss” and even its own understanding of that term as described in the August 18, 2020 decision now at issue before the Supreme Court. Mama Jo’s points to this in its petition along with several other errors arguing, for example, that the appellate court’s ruling renders entire areas of coverage nonexistent by requiring “tangible destruction” of property under all-risk policies that expressly afford coverage for types of clean-up costs required to remove debris from covered property.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Geoffrey B. Fehling, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Fehling may be contacted at gfehling@HuntonAK.com
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Make Sure to Properly Perfect and Preserve Construction Lien Rights
December 07, 2020 —
David Adelstein - Florida Construction Legal UpdatesIf you recording a construction lien (referred to as a claim of lien) and looking to perfect your construction lien foreclosure rights, it is imperative that you work with counsel to ensure your rights are properly preserved. This is good practice!
A claim of lien must be served on an owner within 15 days after recording. Florida Statute s. 713.08(4)(c) says: “The claim of lien shall be served on the owner. Failure to serve any claim of lien in the manner provided in s. 713.18 before recording or within 15 days after recording shall render the claim of lien voidable to the extent that the failure or delay is shown to have been prejudicial to any person entitled to rely on the service.”
Florida Statute s. 713.18, hyperlinked for your review, includes the statutory ways to serve “notices, claims of lien, affidavits, assignments, and other instruments permitted or required under [Florida Statutes Chapter 713].”
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Retainage: What Contractors Need to Know and Helpful Strategies
June 04, 2024 —
Gerard J. Onorata - ConsensusDocsIntroduction
Most, if not all, construction contracts contain a provision for “retainage.” The origin and concept of retainage dates back to the railroad boom that embraced Great Britain in the 1840s. In its simplest terms, retainage is a mechanism by which an owner or general contractor withholds disbursement of funds from the payment of a requisition in order to secure future performance of a contract and/or to pay for repair of defectively performed work. Retainage typically ranges from five to ten percent, with the amount being reduced as the project progresses to substantial and final completion. One of the reasons for withholding retainage is to incentivize a contractor to complete its work in accordance with the contract terms and conditions. While this may be well-intentioned in concept, it all too often leads to abuse that impacts project cash flow and raises tension between the parties. This typically happens on projects that have delay issues, deficient drawings, and/or claims of defective work. When a project has “gone bad,” the withholding of retainage is one of the first things that an owner will latch onto in order to leverage its position against a contractor. In order for a contractor to put itself in the best position possible, the following negotiation techniques and protective measures should be kept in mind.
Know Your Applicable Statute
Every state except West Virginia has statutes in place that govern the payment of retainage on public projects. On federal projects, the amount of retainage withheld shall not exceed ten percent as set forth in the Federal Acquisition Regulations (“FAR”). The common thread running through these statutes is the payment of interest as a remedy when the retainage is not timely paid. Historically, most retainage statutes were applicable only to publicly funded projects. This has recently changed with a substantial number of state legislatures recognizing that the payment of retainage on private projects was a serious enough problem to warrant regulation. These include Alabama, Arizona, California, Colorado, Connecticut, Idaho, Illinois, Kansas, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, and Vermont. New York’s retainage laws relating to private projects were enacted only this past November.
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Gerard J. Onorata, Peckar & AbramsonMr. Onorata may be contacted at
gonorata@pecklaw.com
Is the Event You Are Claiming as Unforeseeable Delay Really Unforeseeable?
September 26, 2022 —
David Adelstein - Florida Construction Legal UpdatesIs the item or event you are claiming as an unforeseeable, excusable delay really unforeseeable? This is not a trick question.
Just because your construction contract identifies items or events that constitute unforeseeable, excusable delay does not mean those items can be used as a blanket excuse or crutch for the contractor. That would be unfair.
For instance, it is not uncommon for a construction contract to list as unforeseeable, excusable delay the following events or items: “(i) acts of God or of the public enemy, (ii) act of the Government in either its sovereign or contractual capacity, (iii) acts of another Contractor in the performance of a contract with the Government, (iv) fires, (v) floods, (vi) epidemics, (vii) quarantine restrictions, (viii) strikes, (ix) freight embargoes, (x) unusually severe weather, or (xi) delays of subcontractors or suppliers at any tier arising from unforeseeable causes beyond the control and without the fault or negligence of both the Contractor and the subcontractors or suppliers.” See, e.g., F.A.R. 52.249-10(b)(1). While the itemization of excusable delay may be worded differently, the point is there may be a listing as to what items or events constitute excusable delay. An excusable delay would justify additional time and, potentially, compensation to the contractor.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
David Uchida Joins Kahana Feld’s Los Angeles Office as Partner
December 31, 2024 —
Linda Carter - Kahana FeldKahana Feld is pleased to announce that David M. Uchida recently joined the firm as a partner in the firm’s Los Angeles Office. He is a member of the firm’s General Liability group.
A client-focused and seasoned litigator, David has defended product manufacturers and suppliers in complex toxic tort and environmental litigation. David also has extensive experience defending clients in alleged asbestos, benzene, and silica exposure claims.
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Linda Carter, Kahana FeldMs. Carter may be contacted at
lcarter@kahanafeld.com
Final Furnishing Date is a Question of Fact
November 10, 2016 —
David Adelstein – Florida Construction Legal UpdatesConstruction liens need to be recorded within 90 days from the lienor’s final furnishing date on the project. This date is exclusive of punchlist or warranty work. The final furnishing date needs to be proven at trial to establish that the construction lien was timely recorded. If there is an evidentiary dispute as the final furnishing date (the contractor claims the date was “x” to establish the lien was timely and the owner claims the date was “y” to establish the lien was untimely), then the date is a question of fact to be determined by the jury.
For instance, in Best Drywall Services, Inc. v. Blasczyk, 2016 WL 6246701 (Fla. 2d DCA 2016), a contractor and owner entered into an oral agreement for a residential renovation project. The contractor recorded a construction lien after its final two invoices went unpaid. During trial, the contractor offered conflicting evidence as to when its final furnishing date on the project was. Numerous dates were offered in the record including dates that were more than 90 days prior to the date the contractor recorded its lien, meaning the lien was arguably untimely. As a result, the trial judge entered a directed verdict in favor of the owner and against the contractor on the contractor’s lien claim finding the lien was untimely recorded.
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David Adelstein, Katz, Barron, Squitero, Faust, Friedberg, English & Allen, P.A.Mr. Adelstein may be contacted at
dma@katzbarron.com
Ninth Circuit Affirms Dismissal Secured by Lewis Brisbois in Coverage Dispute Involving San Francisco 49ers’ Levi Stadium
May 31, 2021 —
Kristen Perkins & Jordon Harriman - Lewis Brisbois NewsroomFort Lauderdale Partner and Vice Chair of Lewis Brisbois’ Insurance Coverage & Bad Faith Litigation Practices Kristen D. Perkins and Los Angeles Partner Jordon E. Harriman had their district court victory confirmed by the U.S. Court of Appeals for the Ninth Circuit when it affirmed the lower court’s ruling that Lewis Brisbois’ client, an excess insurer, had no duty to defend or indemnify a construction joint venture in a lawsuit filed by San Francisco 49ers fans.
Underlying Case and Lewis Brisbois’ Successful Motion to Dismiss
In the underlying matter, 49ers fans filed a proposed class action against the team, alleging that the team’s home venue, Levi Stadium, violated the Americans with Disabilities Act and the state's Unruh Civil Rights Act because it contained physical barriers that hindered access for disabled people. The 49ers subsequently filed a third-party complaint against the construction joint venture that built the stadium, contending that the joint venture’s negligence caused the inaccessibility, and that if the team was held liable for the fans' claims, the joint venture should be obligated to indemnify the team under the terms of the stadium contract.
Reprinted courtesy of
Kristen Perkins, Lewis Brisbois and
Jordon Harriman, Lewis Brisbois
Ms. Perkins may be contacted at Kristen.Perkins@lewisbrisbois.com
Mr. Harriman may be contacted at Jordon.Harriman@lewisbrisbois.com
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BHA has a Nice Swing: Don’t Forget to Visit BHA’s Booth at WCC to Support Charity
May 13, 2014 —
Beverley BevenFlorez-CDJ STAFFAt this week's West Coast Casualty Construction Defect Seminar, for every hole-in-one made at the golf putting game at the Bert L. Howe & Associates (BHA) booth, the firm will make a $25.00 cash donation in the golfer’s name to the Construction Defect Community Charitable Foundation (CDCCF). Each winner will also receive a $25.00 Best Buy gift card.
BHA’s traditional golf game has been technologically reimagined. As the putter steps onto the artificial turf, he or she is plunged into a virtual golf course through an animated video projected on a giant 23 feet wide by 8 feet tall screen!
While at the booth, don’t forget to test out BHA’s industry leading data collection and inspection analysis systems. BHA has recently added video overviews to their data collection process, as well as next-day viewing of inspection data via their secured BHA Client Access Portal. Discover meaningful cost improvements that translate to reduced billing while providing superior accuracy and credibility.
Attendees can also enter to win Dodger baseball tickets, a new iPad Air, or a trip to the Del Mar Race Track! Other BHA giveaways include water bottles, pocket tape measures, multi-tools, flashlight fans, foam footballs, and Godiva chocolates.
Bert L. Howe & Associates strongly supports the goals and principles of the CDCCF, and is honored to assist the foundation in fulfilling its mandate of assisting those in the construction defect community who are in need.
Read how the CDCCF assists the construction defect community...
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