Naughty or Nice. Contractor Receives Two Lumps of Coal in Administrative Dispute
January 21, 2019 —
Garret Murai - California Construction Law BlogSo, how were your holidays? Hopefully you were good and didn’t receive a lump of coal from Santa. For one contractor, 2018, wasn’t such a good year. And as its name, Black Diamond, suggests, it did indeed receive a black diamond from the courts. Actually, two of them.
Contractors’ State License Board v. Superior Court (Black Diamond No. 1)
In Contractors’ State License Board v. Superior Court, Court of Appeals for the First District, Case No. 1154476 (October 11, 2018), the Contractors State License Board (“CSLB”) brought disciplinary proceedings against Black Diamond Electric, Inc. (“Black Diamond”), a C-10 Electrical Contractor, for violating: (1) Labor Code section 108.2, which requires individuals performing work as electricians to be certified; and (2) Labor Code section 108.4, which permits uncertified persons seeking on-the-job experience to perform electrical work so long as they are under the direct supervision of a certified electrician.
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Garret Murai, Wendel RosenMr. Murai may be contacted at
gmurai@wendel.com
Mitigate Construction Risk Through Use of Contingency
April 26, 2021 —
Laurie A. Stanziale - Construction ExecutiveMitigation of risk and costs in a construction project are always priorities for owners. In some contracts, in particular, Guaranteed Maximum Price contracts, some of those monetary risks are shifted to the contractor. Contingency is important because it allows for money to be in the budget for the unexpected and to keep the project moving, which benefits everyone.
WHAT IS CONTINGENCY?
Contingency is an amount of money built into the contractor’s price to complete the project to address unforeseen (although sometimes very common) costs that arise. This sum of money is generally referred to as the contractor’s contingency. The amount of the contingency is a balance struck between having money on hand to address the unexpected while also not unnecessarily tying up money that could otherwise be used for the project. Contingency is typically 5-10% of the hard costs. However, how the money is actually allocated during the project is not always well thought out, which can be the source of problems during the project.
The contractor’s contingency is not to be confused with an owner’s contingency (or reserve) which is outside of the contractor’s budget and generally used for owner driven changes to the project, such as changes to scope, design and schedule.
Reprinted courtesy of
Laurie A. Stanziale, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Lorelie S. Masters Nominated for Best in Insurance & Reinsurance for the Women in Business Law Awards 2021
November 08, 2021 —
Adriana A. Perez & Andrea DeField - Hunton Insurance Recovery BlogWe are pleased to announce that Hunton Andrews Kurth LLP insurance coverage partner
Lorelie S. Masters is one of only eight attorneys throughout the nation shortlisted for the Best in Insurance & Reinsurance category for the
Women in Business Law Awards 2021. The award honors “the outstanding achievements of women in over thirty different practice areas in business law from across Americas. These are individuals who stand out as leaders amongst their peers and who have been instrumental to innovative approaches in their field.”
A nationally recognized insurance coverage litigator, Ms. Masters has handled and tried cases in state and federal trial and appellate courts across the country and in arbitrations in the United States and abroad. At issue in these cases, typically, have been millions of dollars of insurance coverage for product and environmental liability, like silicone gel breast implant and asbestos claims. She regularly advises clients on a wide range of liability coverages, including insurance for environmental, cyber, directors and officers, property damage, and other liabilities and loss. Most recently, she has advised clients in a variety of industries on COVID-19 losses under a wide variety of first-party property, business-interruption policies and “package policies,” and obtained multi-million dollar settlements under D&O, Side-A Only D&O and E&O policies.
Reprinted courtesy of
Adriana A. Perez, Hunton Andrews Kurth and
Andrea DeField, Hunton Andrews Kurth
Ms. Perez may be contacted at pereza@HuntonAK.com
Ms. DeField may be contacted at adefield@HuntonAK.com
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Toddler Crashes through Window, Falls to his Death
January 24, 2014 —
Beverley BevenFlorez-CDJ STAFFTwo-year old Alijah Glenn fell 17 stories to his death after crashing through “a floor-to-ceiling window” at the Crystal Tower apartments in East Cleveland, Ohio, on January 13th, according to The Plain Dealer. Solandra Wallace, East Cleveland’s building and housing manager, told The Plain Dealer that “the city inspects the building whenever a complaint is filed and does not have regular inspections.” The apartment complex “was built in 1966 and would have to adhere to that era's building code standards,” according to the article.
The Plain Dealer reports that three complaints have been filed at the Crystal Tower since 2010. A resident complained in 2012 that “her apartment was falling apart, causing water damage and emitting a foul odor,” however, by the time an inspector arrived the ceiling was being fixed. In 2011, an “unspecified roof leak” turned out to be “condensation from a hot pipe.” An elevator was reported inoperable in 2010, however the claim was deemed “invalid” since the elevator worked when inspectors arrived.
The Cuyahoga County Medical Examiner ruled Glenn’s death accidental.
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The Importance of the Recent Amendment to Rule 702 of the Federal Rules of Evidence
January 22, 2024 —
Andrew G. Vicknair - The Dispute ResolverEvery litigator understands that expert witnesses play a key role in litigation, especially when dealing with construction issues. Expert testimony at trial can be a deciding factor in persuading a judge or jury in your client’s favor. It is so important that, as parties get closer to trial, litigators often spend considerable time filing motions to limit or disqualify certain aspects of expert testimony in an effort to gain an advantage at trial. Because experts are a key aspect of the trial process, it is important to understand the various rules governing use of expert testimony, primarily Rule 702 of the Federal Rules of Evidence.
On December 1, 2023, amendments to Rule 702 of the Federal Rules of Evidence went into effect which added the language in underline below and removed the language which is crossed out:
Rule 702. Testimony by Expert Witness
A witness who is qualified as an expert by knowledge, skill, experience, training, or education may testify in the form of an opinion or otherwise if the proponent demonstrates to the court that it is more likely than not that:
(a) the expert’s scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue;
(b) the testimony is based on sufficient facts or data;
(c) the testimony is the product of reliable principles and methods; and
(d) the expert has reliably applied expert’s opinion reflects a reliable application of the principles and methods to the facts of the case.
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Andrew G. Vicknair, D'Arcy Vicknair, LLCMr. Vicknair may be contacted at
agv@darcyvicknair.com
Structural Failure of Precast-Concrete Span Sets Back Sydney Metro Job
January 04, 2018 —
Chris Webb - Engineering News-RecordOriginally Published by CDJ on February 23, 2017
A key component of Australia’s biggest public transport infrastructure project—Sydney’s $6.3-billion Metro North West—is the subject of a critical and detailed technical report describing how an elevated viaduct span failed at a stitch joint between two precast segments during construction last September. Project officials say the affected span, which did not suffer a progressive collapse, has since been removed and its replacement fast-tracked to avoid further delays. Little additional detail was provided.
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Chris Webb, ENR
Miami Building Boom Spreads Into Downtown’s Tent City
October 29, 2014 —
Nadja Brandt – BloombergA building boom that transformed Miami into a destination for the global elite left out the city core, better known for its empty lots filled at night with tents for the homeless. Now the area awaits a $2 billion face lift.
Worldcenter, a 27-acre (11-hectare) development that languished for almost a decade, won city approval last month and is slated to break ground next year near Miami’s business district. The project will include almost 1,000 luxury condominiums and apartments, a Marriott Marquis hotel with convention space, and stores such as Macy’s and Bloomingdale’s.
Developers CIM Group, Falcone Group and Centurion Partners are seeking to breathe life into a neighborhood often referred to as the “hole in the doughnut,” an area of blight and weedy lots surrounded by luxury properties that are attracting South American, European and Asian buyers. Its revival reflects both the strong investor demand in Miami and a national trend toward a mix of real estate in an urban center catering to people who want to live, work and play in close proximity.
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Nadja Brandt, BloombergMs. Brandt may be contacted at
nbrandt@bloomberg.net
Fifth Circuit: Primary Insurer Relieved of Duty to Defend Without Release of Liability of Insured
March 02, 2020 —
Bethany L. Barrese & Ashley McWilliams - Saxe Doernberger & Vita, P.C.In Aggreko, LLC v. Chartis Specialty Ins. Co.,1 the Fifth Circuit affirmed a decision by the Texas District Court and held that a Covenant Not to Execute constituted a “settlement” sufficient to exhaust policy limits and terminate a primary insurer’s duty to defend.
This case arose out of a wrongful death suit filed by the parents of James Brenek II (“Brenek”). In 2014, Brenek was fatally electrocuted by an electrically energized generator housing cabinet while performing work on a rig in Texas for Guichard Operating Company, LLC (“Guichard”), a Louisiana-based drilling subcontractor. Guichard had leased the generator from Aggreko, LLC (“Aggreko”). A rental agreement between Guichard and Aggreko required Guichard to maintain commercial general liability insurance during the lease period and list Aggreko and the rig owner, Rutherford Oil Corporation (“Rutherford”), as additional insureds under
the policy.
Guichard’s primary insurance carrier, The Gray Insurance Company (“Gray”), agreed to defend and indemnify Aggreko and Rutherford in the wrongful death suit. The Gray policy had a limit of $1,000,000, subject to a $50,000 self-insured retention.
Reprinted courtesy of
Bethany L. Barrese, Saxe Doernberger & Vita, P.C. and
Ashley McWilliams, Saxe Doernberger & Vita, P.C.
Ms. Barrese may be contacted at blb@sdvlaw.com
Ms. McWilliams may be contacted at amw@sdvlaw.com
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