Nevada Supreme Court Reverses Decision against Grader in Drainage Case
June 30, 2011 —
CDJ STAFFThe Nevada Supreme Court has issued an opinion in the case of Rayburn Lawn & Landscape Designers v. Plaster Development Corporation, reversing the decision of the lower court and remanding the case for a new trial.
The case originated in a construction defect suit in which Plaster Development Corporation was sued by homeowners. Plaster filed a third-party complaint against its subcontractor, Reyburn. The testimony of Reyburn’s owner was considered to be admission of liability and so the court limited the scope of Reyburn’s closing argument and did not allow the jury to determine the extent of Reyburn’s liability. Reyburn appealed.
Plaster, in their case, cited California’s Crawford v. Weather Sheild MFG, Inc. The court held the application of these standards, but noted that the “an indemnitor’s duty to defend an indemnitee is limited to those claims directly attributed to the indemnitor’s scope of work and does not include defending against claims arising from the negligence of other subcontractors and the indemnittee’s own negligence.”
On the matter of law against Reyburn, the court concluded, “Given the conflicting evidence at trial as to whether Reyburn’s work was implicated in the defective retaining walls and sidewalls, and viewing the evidence and inferences in Reyburn’s favor, we conclude that a reasonable jury could have granted relief in favor of Reyburn.” The Nevada Supreme Court conduced that the district court should not have granted Plaster’s motion for judgement.
Further, the Nevada Supreme Court found that the district court should have apportioned the fees and costs to those claims directly attributed to Reyburn’s scope of work, “if any,” and should not have assigned all attorney costs and court fees to Reyburn.
Read the court’s decision…
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With Trump's Tariff Talk, Time to Negotiate for Escalation Clauses in Construction Contracts
December 17, 2024 —
Richard Korman - Engineering News-RecordRemember 2019? That’s when contractors faced sudden material price surges from tariffs during then-President Donald Trump’s first term in office. How about 2021? That's when contractors saw new price surges and long delivery delays because of Covid-19.
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Richard Korman, ENRMr. Korman may be contacted at
kormanr@enr.com
Disgruntled Online Reviews of Attorney by Disgruntled Former Client Ordered Removed from Yelp.com
June 30, 2016 —
Renata L. Hoddinott & David W. Evans – Haight Brown & Bonesteel LLPThe Court of Appeal of the State of California – First Appellate District in Hassell v. Bird (6/7/16 – Case No. A143233) affirmed an order from a judgment in favor of an attorney and her firm and against a disgruntled former client directing non-party Yelp.com to remove defamatory reviews posted to its site.
Attorney Dawn Hassell (“Hassell”) filed suit against Ava Bird (“Bird”) arising out of Hassell’s brief legal representation. The attorney/client relationship lasted a total of 25 days after which Hassell withdrew from the representation because of difficulties communicating with Bird and Bird expressed dissatisfaction with Hassell. When legal representation terminated, Bird had 21 months before the expiration of the statute of limitations on her personal injury claim.
Reprinted courtesy of
Renata L. Hoddinott, Haight Brown & Bonesteel LLP and
David W. Evans, Haight Brown & Bonesteel LLP
Mr. Evans may be contacted at devans@hbblaw.com
Ms. Hoddinott may be contacted at rhoddinott@hbblaw.com
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The Golden State Commits to Going Green – Why Contractors Will be in High Demand to Build the State’s Infrastructure
November 28, 2018 —
Karla Pascarella & Alexa Magrath - Peckar & Abramson, P.C.On September 10, 2018 California’s Governor took an ambitious stance on environmental policy and signed Senate Bill 100 (“SB100”). The bill accelerates several Renewables Portfolio Standards (“RPS”) deadlines previously established by former Governor Arnold Schwarzenegger. The bill’s most notable effect—it requires that 100 percent of California’s electricity come from renewable and zero-carbon sources by 2045. California is the second state in the nation to pass such legislation; Hawaii passed a similar bill in 2015.
The passage of this bill could not be timelier as wildfires, drought, and record high temperatures continue to make national headlines. California, as it often does, has taken a contrarian position as the federal government attempts to reinvigorate the coal mining industry in America. Coal and other fossil fuels used to produce energy increase air pollution and deplete necessary ozone. California has been experimenting and utilizing renewable energy technology since as early as 1997. According to the California Energy Commission, by the end of 2017 California generated approximately 32 percent of its energy from renewable sources.
Reprinted courtesy of
Karla Pascarella, Peckar & Abramson, P.C. and
Alexa Magrath, Peckar & Abramson, P.C.
Ms. Pascarella may be contacted at kpascarella@pecklaw.com
Ms. Magrath may be contacted at amagrath@pecklaw.com
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Subcontractor Strength Will Drive Industry’s Ability to Meet Demand, Overcome Challenges
October 10, 2022 —
Anwar Ghauche - Construction ExecutiveOwners, developers and general contractors get a lot of notoriety for construction projects, especially in these infrastructure-focused times. However, the subcontractor is truly the one under the microscope, as this group requires the most care and attention to ensure the owners and operators are able to meet accelerating demand and public expectations.
The challenges in the current environment are many. Inflation and supply chain disruptions are highly detrimental to specialty trades in the mechanical, electrical, plumbing, drywall and other areas. Reports show that the construction industry, in particular, has seen an
increase of over 20% in the cost of supplies and building materials in the last year alone and, in some cases, over
90% since the start of the pandemic. While these costs are passed along to the owner, the subcontractor still retains significant cash flow risk. This truth is amplified in a volatile market. As if the cost was not enough, equipment and material shortages coupled with rising interest rates only compound the problem—and tenfold for small businesses.
Subcontractors are likely to feel the greatest pressure from supply-related issues. Inflation combined with supply chain shortages require subcontractors to prepare earlier for projects and, when possible, purchase materials upfront. However, the consequence of this preliminary preparation equates to further strains on cash flow. In an effort to remain aligned on schedules and budgets, subcontractors frequently buy all of a project’s materials as soon as a contract is signed—if not before.
Reprinted courtesy of
Anwar Ghauche, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Consumer Product Safety Commission Recalls
January 21, 2025 —
The Subrogation StrategistIn subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall announced by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On January 16, 2025, the CPSC announced the following recalls related to products that present fire hazards:
- Lexmark International Recalls Specialty Printers Due to Fire Hazard. According to the CPSC’s website, “[a] metal part inside the printer can dislodge, posing a risk of fire.”
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White and Williams LLP
Design and Construction Defects Not a Breach of Contract
February 14, 2013 —
CDJ STAFFThe California Court of Appeals tossed out a breach of contract award in Altman v. John Mourier Construction. The decision, which was issued on January 10, 2013, sent the construction defect case back to a lower court to calculate damages based on the conclusions of the appeals court.
The case involved both design issues and construction issues. According to the plaintiffs’ expert, the design plans did not make the buildings sufficiently stiff to resist the wind, and that the framing was improperly constructed, further weakening the structures, and leading to the stucco cracking. Additionally, it was alleged that the roofs were improperly installed, leading to water intrusion. The contractor’s expert “agreed the roofs needed repair, but disputed what needed to be done to repair the roofs and the cost.”
The jury rejected the plaintiffs’ claims of product liability and breach of warranty, but found in their favor on the claims of breach of contract and negligence. The plaintiffs were awarded differing amounts based on the jury’s conclusions about their particular properties.
Both sides sought new trials. JMC, the contractor, claimed that the jury’s verdicts were “inconsistent in that the relieved JMC of liability for strict products liability and breach of warranty, but found JMC liable for breach of contract and negligence.” The plaintiffs “opposed the setoff motion on the ground that the jury heard evidence only of damages not covered by the settlements.” Both motions were denied. After this, the plaintiffs sought and received investigative costs as damages. JMC appealed this amended judgment.
The appeals court rejected JMC’s claims that evidence was improperly excluded. JMC sought to introduce evidence concerning errors made by the stucco subcontractor. Earlier in the trial, JMC had insisted that the plaintiffs not be allowed to present evidence concerning the stucco, as that had been separately settled. When they wished to introduce it themselves, they noted that the settlement only precluded the plaintiffs from introducing stucco evidence, but the trial court did not find this persuasive, and the appeals court upheld the actions of the trial court. Nor did the appeals court find grounds for reversal based on claims that the jury saw excluded evidence, as JMC did not establish that the evidence went into the jury room. Further, this did not reach, according to the court, a “miscarriage of justice.”
The court rejected two more of JMC’s arguments, concluding that the negligence award did not violate the economic loss rule. The court also noted that JMC failed to prove its contention that the plaintiffs were awarded damages for items that were covered in settlements with the subcontractors.
The appeals court did accept JMC’s argument that the award for breach of contract was not supported by evidence. As the ruling notes, “plaintiffs did not submit the contracts into evidence or justify their absence; nor did plaintiffs provide any evidence regarding contract terms allegedly breached.”
The court also did not allow the plaintiffs to claim the full amount of the investigative costs. Noting that the trial court had rational grounds for its decision, the appeals court noted that “the jury rejected most of the damages claimed by plaintiffs, and the trial court found that more than $86,000 of the costs itemized in plaintiffs’ invoices ‘appear questionable’ as ‘investigation’ costs/damages and appeared to the trial court to be litigation costs nonrecoverable under section 1033.5.”
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Specified Or Designated Operations Endorsement – Limitation of Insurance Coverage
July 15, 2024 —
David Adelstein - Florida Construction Legal UpdatesYour commercial general liability (CGL) policy may contain a specified or designated operations endorsement. This does not operate as an exclusion but as a LIMITATION of coverage. The endorsement may provide that bodily injury or property damage ONLY applies to the operations or business described therein. Similarly, there may be a limitation of coverage for designated classifications or codes which has the same effect—limiting coverage to the classifications/codes listed therein. This is an important consideration, and you need to understand and watch out for such limitations of coverage. (These aren’t the only ones, but it’s important to appreciate that limitations of coverage operate to limit the coverage to which the CGL policy applies.)
The Eleventh Circuit Court of Appeal dealt with this exact issue under Alabama law (although the same analysis would apply in numerous jurisdictions). In this case, a landscaper (the insured) had a CGL policy with a specified operations endorsement that limited coverage to landscaping operations. The landscaper was hired to install an in-ground trampoline in addition to site and landscaping operations at a house. A person got hurt using the trampoline and the landscaper was sued. The CGL insurer denied coverage outright (and, thus, any duty to defend) because the complaint asserted that the injury occurred from the landscaper’s assembly and installation of the trampoline, which was not a landscaping operation. Furthermore, the Eleventh Circuit noted that the landscaper’s insurance application specified that the landscaper did not perform any recreational or playground equipment erection or construction, and the installation and assembly of a trampoline would constitute recreational or playground equipment.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com