Cultivating a Company Culture Committed to Safety, Mentorship and Education
March 19, 2024 —
David Frazier - Construction ExecutiveThe construction industry is aging. Valuing the significance of promoting a culture that enhances safety, mentorship and educational opportunities is essential to recruiting and retaining top talent to keep the industry thriving.
According to the U.S. Department of Labor, one in five worker deaths in the U.S. occurs in the construction industry. Additionally, construction workers are statistically at a higher risk for mental-health issues than virtually every other profession. According to a study conducted by CIRP, 83% of construction workers have struggled with mental-health disorders.
Today’s leaders must be dedicated to listening to employees' voices to shape the construction industry, as future leaders will be formed by a culture committed to employees' mental and physical health, safety, professional growth and overall workplace culture.
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David Frazier, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Reversing Itself, Alabama Supreme Court Finds Construction Defect is An Occurrence
April 08, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe Alabama Supreme Court withdrew is prior opinion and authored a new decision finding that construction defects are an "occurrence." Owners Ins. Co. v. Jim Carr Homebuilder, No. 1120764 (Ala. March 28, 2014) [decision here].
Jim Carr Homebuilder (JCH) contracted to build a home for the Johnsons. After completion of the construction and moving in, the Johnsons noticed several problems with the house, including water leaking through the roof, walls, and floors, resulting in water damage to those and other areas of the house. When JCH was unable to satisfactorily fix the problems, the Johnsons sued, alleging breach of contract, fraud, and negligence.
Owners, JCH's insurer, defended under a reservation of rights. The matter went to arbitration, where an award of $600,000 was made to the Johnsons.
Owners filed a declaratory judgment action against the Johnsons and JCH. Owners argued that the property damage upon which the award was based was not the result of an "occurrence." The trial court determined that the entire arbitration award was covered under the policy.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
New Jersey Supreme Court Upholds $400 Million Award for Superstorm Sandy Damages
February 22, 2021 —
Kerianne E. Kane - Saxe Doernberger & Vita In New Jersey Transit Corp. v. Certain Underwriters at Lloyd’s London,1 New Jersey’s highest court upheld an appellate decision2 finding that New Jersey Transit Corporation (“NJT”) was entitled to full coverage under its property insurance policy for damages caused by Superstorm Sandy.
In July 2012, NJT secured a multi-layered “all risks” property insurance program from eleven insurers for the policy period of July 1, 2012, to July 1, 2013. The policies covered all perils and damage to NJT’s property unless specifically excluded. The primary layer, issued by Lexington Insurance Company, provided the first $50 million of coverage. The second layer provided coverage up to $100 million, the third layer provided an additional $175 million, and the fourth layer provided coverage of $125 million, for a total of $400 million in coverage.
The excess layer insurers included Certain Underwriters At Lloyd’s, London, Torus Specialty Insurance Company, and several other carriers. All participating insurers’ policies included a standard policy form and separate endorsements, some of which were included in all policies and some of which were unique to specific insurers.
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Kerianne E. Kane, Saxe Doernberger & VitaMs. Kane may be contacted at
kkane@sdvlaw.com
Facebook Posts “Not Relevant” Rules Florida Appeals Court
February 07, 2014 —
Beverley BevenFlorez-CDJ STAFFA Cape Coral, Florida resident is suing the city and construction companies over alleged negligence “for failing to use reasonable care in keeping the construction site safe for pedestrians,” according to News-Press. The lawsuit was filed after a three-year old boy “jumped out of a wagon pulled by his aunt and darted across the construction zone before being” hit and dragged by a vehicle. The boy “suffers neurological problems from the crash.” The defendants wanted to use Facebook posts made by the Plaintiff about the city, contractors, and subcontractors, as evidence. However, the 2nd District Court of Appeals ruled that the Facebook posts were irrelevant to the case.
Todd Robert Falzone, the Plaintiff attorney, said that “it’s becoming more common for defense lawyers to try and introduce social media into any case, but the law is new and there isn’t a lot of guidance for lawyers or judges,” according to News-Press. The defendants’ attorneys did not return News-Press’s calls asking for comments.
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Understanding Lien Waivers
September 03, 2015 —
Beverley BevenFlorez-CDJ STAFFZlien on their Construction Payment Blog explained how to read a lien waiver. According to Zlien, “Lien waivers are meant to function as a sort of receipt – if a party is paid a certain amount that party waives his or her right to claim a lien for that amount. “ The blog post breaks down the types of lien waivers, including Conditional Waivers, Unconditional Waivers, Final Payment, and Progress Payment.
Once the type of waiver has been identified, Zlien suggests checking the length: “Because the party signing the lien waiver may feel obligated to sign whatever document is presented in order to get paid, unscrupulous or oblivious parties may attempt to use the lien waiver as a legal positioning tool and cram all sorts of other language into the lien waiver that really has no legitimate right or reason to be there.” Zlien recommends that if the document is long or confusing to consult an attorney.
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Colorado House Bill 1279 Stalls over 120-day Unit Owner Election Period
April 20, 2017 —
Luke Mecklenburg - Snell & Wilmer Real Estate Litigation BlogWith the session more than halfway through, the Colorado Legislature’s 2017 attempts at meaningful construction defect reform may fail again. This year, the Legislature did not attempt a single-bill construction defect overhaul like those that have failed over the last half-decade. Rather, it has sought to enact reforms on a piecemeal basis, with several smaller bills addressing specific issues that have been affecting condominium construction along Colorado’s booming Front Range.
This new approach appears to be headed towards much the same outcome as the failed efforts of the past. House Bill 1169 would have given developers a statutory right to repair before being sued by homeowners, and Senate Bill 156 would mandate arbitration or mediation. Both have been assigned to the House State, Veterans, and Military Affairs Committee (often viewed as the “bill-kill committee”), and have little chance of being resuscitated this session.
This was also the fate of House Bill 1279, but bipartisan support had many believing that it still had a chance of passing—at least until last week. House Bill 1279 would require an executive board of a homeowners association to satisfy several prerequisites before suing a developer or builder, namely to (1) notify all unit owners and the developer or builder against whom the lawsuit is being considered; (2) call an association meeting where the builder or developer could present relevant facts and arguments; and (3) get approval from the majority of the unit owners after providing detailed disclosures about the lawsuit, including the potential costs and benefits thereof.
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Luke Mecklenburg, Snell & WilmerMr. Mecklenburg may be contacted at
lmecklenburg@swlaw.com
Insurance Policy’s “No Voluntary Payment” Clauses Lose Some Bite in Colorado
October 22, 2013 —
Brady Iandiorio — Higgins, Hopkins, McLain & Roswell, LLC.The Colorado Court of Appeals recently handed down an opinion dulling the teeth of the “no voluntary payment” clauses found in many contractors’ insurance policies. In the case of Stresscon Corporation v. Travelers Property Casualty Company of America, 2013 WL 4874352 (Colo. App. 2013), the Court of Appeals found that an insured’s breach of the “no voluntary payment” clause does not always bar the insured from receiving benefits from its insurance company.
In July 2007, at a construction project run by Mortenson (the “GC”), a partially erected building collapsed, killing one worker and gravely injuring another. The collapse was caused by a crane hook pulling a concrete component off of its supports. The GC contracted with Stresscon Corporation (“Stresscon”) to build pre-cast concrete components for the project, and in turn Stresscon hired two sub-subcontractors, RMS and Hardrock (the “Crane Team”) to work together to erect those concrete components. Stresscon and the Crane Team had liability insurance, and Stresscon was insured by Travelers Property Casualty Company of America (“Travelers”).
The accident led to three separate lawsuits: 1) one brought by the deceased worker; 2) one brought by the injured worker; and 3) one brought by the GC against Stresscon claiming it was entitled to contract damages incurred because the project was delayed.
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Brady IandiorioBrady Iandiorio can be contacted at
Iandiorio@hhmrlaw.com
Guessing as to your Construction Damages is Not the Best Approach
November 18, 2019 —
David Adelstein - Florida Construction Legal UpdatesArbitrarily guessing as to your construction damages is NOT the best approach. Sure, experts can be costly. No doubt about it. Having an expert versus guessing as to your construction damages caused by another party’s breach of contract is a no brainer. Engage an expert or, at a minimum, be in a position to competently testify as to your damages caused by another party’s breach of contract. Otherwise, the guessing is not going to get you very far as a concrete subcontractor found out in Patrick Concrete Constructors, Inc. v. Layne Christensen Co., 2018 WL 6528485 (W.D. New York 2018) where the subcontractor could not competently support its delay-related damages or change orders and, equally important, could not support that the damages were proximately caused by the general contractor’s breach of the subcontract.
In this case, the concrete subcontractor entered into a subcontract to perform concrete work for a public project. The project was delayed and the general contractor was required to pay liquidated damages to the owner. Not surprisingly, the subcontractor disputed liability for delays and sued the general contractor for all of its delay-related damages “in the form of labor and materials escalation, loss of productivity, procurement and impact costs, field and home office overhead, idle equipment, inability to take on other work, lost profits, and interest.” Patrick Concrete Constructors, 2018 WL at *1.
The general contractor moved for summary judgment as to the plaintiff’s delay-related damages – the subcontractor’s damages were nothing but guesses and the subcontractor could not prove the general contractor was the cause of the subcontractor’s damages.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com