Did You Get a Notice of Mechanic’s Lien after Project Completion? Don’t Panic!
October 20, 2016 —
Christopher G. Hill – Construction Law MusingsSo, you own a piece of property. You decided to have some work done and after what you thought was proper due diligence, you hire a general contractor to build a great office building on the property. Your architect designs the space, you sign the construction contract for a price you find fair and that the bank approves. Construction starts and with a few minor hiccups, a couple of written changes and one minor but slightly annoying change required by the local building inspector, completes relatively on schedule. You write the final check to the general contractor for its final draw and start the process of leasing the space out. All is right with the world as best you can tell.
A month later, you walk to your mailbox and lo and behold, you have a certified mailing containing a notice that the plumbing subcontractor has recorded a mechanic’s lien on your property. After counting to 10 to let the various emotions pass, you call the general contractor to see what is going on. You’re told that there is a dispute regarding a change order about which you knew nothing and that the general contractor feels it is in the right and should not have to pay the money represented in the memorandum of lien so it won’t be paying the subcontractor unless and until it is told to do so by a court or an arbitrator.
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Christopher G. Hill, The Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Anti-Concurrent Causation Endorsements in CGL Insurance Policies: A Word of Caution
August 29, 2022 —
David M. McLain – Colorado Construction LitigationWhile I have not performed exhaustive research into the origin of anti-concurrent causation (“ACC”) endorsements on insurance policies, or how or when they migrated from first-party property policies to commercial general liability (“CGL”) policies, they have done so. The result for Colorado’s construction professionals may rear its ugly head as an unwelcome and surprise outright declination of coverage for construction defect claims.
ACC endorsements state that if there are two causes of damage: one of which is covered by a policy and one of which is not, the carrier can invoke the ACC endorsement to disclaim coverage for all of the damage. An exemplar ACC endorsement is ISO Form CG 21 67, entitled “Fungi or Bacteria Exclusion.”
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Construction Defect Not an Occurrence in Ohio
November 07, 2012 —
CDJ STAFFThe Ohio Supreme Court has concluded that claims of defective construction or workmanship are not an occurrence under a general liability policy. The court looked at appellate decisions and concluded that CGL policies are not intended to insure against risks under the control and management of the insured. These risks should instead be mitigated with performance bonds.
The question was raised in the case Westfield Ins. Co. v. Custom Agri Systems, Inc. The Sixth District Court of Ohio concluded it was an “open question under Ohio law whether a CGL policy covers defective construction claims.” Westfield filed a motion, granted by the Sixth Circuit, to certify the question to the state Supreme Court. The Sixth Court additionally found that the contractual liability exclusion barred coverage in the case, issues a summary judgment to Westfield.
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Lewis Brisbois Listed as Top 10 Firm of 2022 on Leopard Solutions Law Firm Index
March 27, 2023 —
Lewis Brisbois NewsroomLos Angeles, Calif. (March 17, 2023) – Lewis Brisbois has been listed among the top 10 law firms on the 2022 Leopard Law Firm Index. Billed as "the legal industry's most inclusive and up-to-date firm rating system," the index, published by Leopard Solutions, is a dynamic rating system that is updated twice weekly and focuses on law firms' profitability, viability, growth, and potential opportunity. Each year, Leopard Solutions compiles a list of the index firms' overall scores for the previous year. For 2022, Lewis Brisbois ranked 8th, with an aggregate score of 446 out of a possible 500. Other firms in the top 10 include Kirkland & Ellis, Ropes & Gray, and DLA Piper.
The Leopard Law Firm Index provides insights into law firm health and stability, using a robust list of criteria. This includes growth in attorney headcount, average attorney tenure, increases in revenue per lawyer (RPL) over a five-year period, relative success in lateral recruiting, and general retention of partners and associates, as well as the overall diversity within a firm. In an interview with Law360 Pulse, Leopard Solutions VP of Sales & Marketing Phil Flora noted that the top 10 firms are some of the largest firms with above average ethnic diversity.
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Lewis Brisbois
New York Developers Facing Construction Defect Lawsuit
June 26, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to The Real Deal, L Lofts condominium developers are involved in an eight million dollar lawsuit for “allegedly failing to correct extensive construction defects in the” Brooklyn, New York “building, including water leaks, defective roof construction and other alleged code violations.”
The L Lofts’ board filed suit against the American Development Group on June 19th. However, Perry Finkelman, partner and managing director at American Development Group claimed that the building had been hit by a tornado, making the allegations baseless: “While there may be issues, they weren’t properly addressed at the time. That’s not a sponsor’s responsibility to handle,” as quoted by The Real Deal.
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Standard For Evaluating Delay – Directly from An Armed Services Board Of Contract Appeal’s Opinion
October 04, 2021 —
David Adelstein - Florida Construction Legal UpdatesSometimes, it is much better to hear it from the horse’s mouth. That is the case here. The Armed Services Board of Contract Appeal’s (ASBCA) opinion in Appeals of -GSC Construction, Inc., ASBCA No. 59402, 2020 WL 8148687 (ASBCA November 4, 2020) includes an informative discussion of a contractor’s burden when it encounters excusable delay and, of importance, the standard for evaluating delay. It’s a long discussion but one that parties in construction need to know, appreciate, and understand. EVERY WORD IN THIS DISCUSSION MATTERS.
Construction projects get delayed and with a delay comes money because time is money. Many claims are predicated on delay. These can be an owner assessing liquidated damages due to a delayed job or a contractor seeking its costs for delay. Either way, the standard for evaluating delay and the burdens imposed on a party cannot be understated and, certainly, cannot be overlooked. For this reason, here is the discussion on evaluating delay directly from the horse’s mouth in the Appeal of-GSC Construction, Inc.:
The critical path is the longest path in the schedule on which any delay or disruption would cause a day-for-day delay to the project itself; those activities must be performed as they are scheduled and timely in order for the project to finish on time. Wilner v. United States, 23 Cl. Ct. 241, 245 (1991). In Yates-Desbuild Joint Venture, CBCA No. 3350 et al., 17-1 BCA ¶ 36,870, our sister board compiled an excellent and very helpful synopsis of the standards for evaluating delay claims, which I adopt nearly verbatim among the discussion that follows.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
New York Preserves Subrogation Rights
September 06, 2023 —
Lian Skaf - The Subrogation StrategistThe insurer’s right of subrogation is equitable in nature, even if not based in contract. However, since the insurer steps into the shoes of its insured and is limited to the rights of its insured, an integral part of the investigation process is determining what rights the insured has. Whether or not the insured can settle with the tortfeasor and that whether the settlement would also apply to the subrogated carrier is a question the Supreme Court of New York, a trial court, recently addressed.
In Utica First Ins. Co. v. Homeport I LLC, et al., No. 150448/2022, 2023 N.Y. Misc. LEXIS 3087 (N.Y. Sup. Ct.), the plaintiff insurance carrier’s insured, SI Waterfront Management Inc. (SI Waterfront), owned and operated a restaurant called Wynwood at 24 Navy Pier Court in Staten Island, New York. The owner of the property was Homeport I LLC (Homeport). Significant construction work pertaining to plumbing and draining lines at the property was done by Ironstate Holdings, LLC (Ironstate), the plumbing portion of which was conducted by subcontractor Claire Construction Corp. (Claire). As a result of the construction work, on June 8, 2021, SI Waterfront allegedly sustained property damage from flooding.
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Lian Skaf, White and Williams LLPMr. Skaf may be contacted at
skafl@whiteandwilliams.com
State Farm to Build Multi-Use Complex in Dallas Area
December 30, 2013 —
CDJ STAFFState Farm in Insurance is building a new office complex which will have space for thousands of State Farm employees in the Dallas area, according to The Dallas Morning News. That’s not all the $1.5 billion development, CityLine, will include. The first phase of the complex will include three office towers, a shopping center, a hotel, and apartments. Opening is expected in early 2015.
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