Georgia Court Reaffirms Construction Defect Decision
August 27, 2013 —
CDJ STAFFIn 2011, the Georgia Supreme Court ruled that construction defects could count as “occurrences” under a general liability policy. John Watkins, writing in Law360, notes that the ruling “has potentially broad implications for Georgia insureds.” He goes on to look at a later Georgia Supreme Court case, in which the court reaffirmed its decision in the 2011 Hathaway case.
In the 2013 case, Taylor Morrison Services Inc. v. HDI-Gerlins Ins., the court held that the property damage had to happen to something other than the work performed by the insured, and that a breaches of warranty without fraud claims may be covered. But Watkins notes that this points to “the continuing efforts of insurers to deny coverage for construction defects under CGL policies.”
This overruled some of the past decisions of the United States District Court for the Northern District of Georgia. Watkins noted that the Eleventh Circuit seemed to wonder about the scope of Hathaway, but with Taylor Morrison, “the Georgia Supreme Court provided a clearly stated response.”
Looking at the implications, he gives an example in which if a window installer work causes a window to leak and the water intrusion damages a floor, the floor, but not the window would be covered. But he cautions, “the result may turn on the policy language and the particular facts.” In any case, he assures us that “coverage disputes regarding construction defects are sure to continue.”
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Trump Administration Announces New Eviction Moratorium
October 12, 2020 —
Zachary Kessler - Gravel2GavelWith the financial impacts of the COVID-19 pandemic continuing to be felt by the American public, the Trump Administration has taken steps to try to allay a coming eviction crisis by enacting a moratorium on evictions through the end of 2020. With the first eviction moratorium instituted by the CARES Act expiring, lawmakers have been pushing to include eviction protections in the next COVID-19 relief package. However, with Congressional leaders still far from an agreement on the next bill, the Centers for Disease Control and Prevention (CDC) has now used its emergency pandemic powers under the Public Health Service Act to temporarily halt residential evictions.
Under the Order, a landlord, owner of a residential property, or other person with a legal right to pursue eviction or possessory actions will not be permitted to evict any covered person through December 31, 2020. Under the Order, “covered persons,” are any tenant, lessee, or resident of a residential property who meets the five-part test included in the order and delivers the executed declaration to their landlord. The five requirements in the declaration, which must be certified under the penalty of perjury are:
- The individual has used best efforts to obtain all available government assistance for rent or housing;
- The individual either (i) expects to earn no more than $99,000 in annual income for Calendar Year 2020 (or no more than $198,000 if filing a joint tax return), (ii) was not required to report any income in 2019 to the U.S. Internal Revenue Service, or (iii) received an Economic Impact Payment (stimulus check) pursuant to Section 2201 of the CARES Act;
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Zachary Kessler, PillsburyMr. Kessler may be contacted at
zachary.kessler@pillsburylaw.com
Insurer Waives Objection to Appraiser's Partiality by Waiting Until Appraisal Issued
October 21, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Eleventh Circuit affirmed the district court's denial of the insurer's objections on partiality grounds to the insured's appraiser. Biscayne Beach Club Condominium Association, Inc. v. Westchester Surpus Lines Ins. Co., 2024 U.S. App. LEXIS 19663 (11th Cir. Aug. 6. 2024).
Storms damaged buildings at Biscayne Beach Club Condominium. Biscayne Beach filed claims with its insurer, Westchester. Unsatisfied with Westchester's payments, Biscayne Beach sued. Westchester then invoked the appraisal provision in the policy. The district court abated the action so the parties could pursue appraisal.
Biscayne Beach appointed Lester Martin, its public adjuster, as its appraiser on a 10 percent contingency fee. Westchester objected because Martinez's retainer created a conflict of interest that would hinder his impartiality. Biscayne Beach then retained Blake Pyka as its appraiser. Westchester appointed its appraiser and and umpire was selected by the parties' two appraisers.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Indemnification Provisions Do Not Create Reciprocal Attorney’s Fees Provisions
November 21, 2018 —
CDJ STAFFIn a good, recent decision, the Eleventh Circuit in International Fidelity Insurance Co. v. Americabe-Moriarity, JV, 2018 WL 5306683 (11th Cir. 2018), held that Florida Statute s. 57.105(7) cannot be used to shift attorney’s fees in a contractual indemnification clause in a dispute between a general contractor and subcontractor’s performance bond surety, when the dispute does not involve an actual indemnification claim stemming from a third-party.
In this case, a prime contractor terminated a subcontractor and looked to the subcontractor’s performance bond surety to pay for the completion work. The subcontractor had a standard AIA A312 performance bond that requires the prime contractor to comply with the terms of the bond, as well as the incorporated subcontract, in order to trigger the surety’s obligations under the bond. The surety filed an action for declaratory relief against the prime contractor arguing that the prime contractor breached the terms of the performance bond through non-compliance thereby discharging the surety’s obligations. The trial court agreed and the surety moved for attorney’s fees.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
COVID-19 Business Closure and Continuity Compliance Resource
March 30, 2020 —
Adam Chelminiak, Joshua Mooney & Ryan Udell - White and Williams LLPIn less than a few weeks’ time, COVID-19 has changed the way we live and work. Businesses, large and small, have had to grapple with unprecedented challenges, including orders to close or significantly curtail operations in order to stem the transmission of the coronavirus. Often, these orders have not been clear or businesses are unsure whether they fit in a category that is deemed essential, life sustaining or other similar category that permits them to continue to operate. Or, the business believes that it is necessary for it to continue to operate for reasons that may not have been apparent to the governmental authority issuing the order.
White and Williams has been busy assisting our clients in Connecticut, Delaware, Massachusetts, New Jersey, New York, Pennsylvania, Rhode Island and other states in understanding these orders. Below are government orders, and related resources, that have been announced and/or are currently in effect. White and Williams will continue to monitor these orders and add additional orders and resources as they are announced.
Reprinted courtesy of White and Williams LLP attorneys
Adam Chelminiak,
Joshua Mooney and
Ryan Udell
Mr. Chelminiak may be contacted at chelminiaka@whiteandwilliams.com
Mr. Mooney may be contacted at mooneyj@whiteandwilliams.com
Mr. Udell may be contacted at udellr@whiteandwilliams.com
Read the full story for government orders, and related resources, that have been announced and/or are currently in effect.
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NYC’s First Five-Star Hotel in Decade Seen at One57 Tower
July 02, 2014 —
Heather Perlberg – BloombergHyatt Hotels Corp. (H) is seeking to make its Park Hyatt New York, opening next month at the base of the ultra-luxury One57 condominium tower, Manhattan’s first new five-star hotel in more than a decade.
The 25-floor property is making its debut on West 57th Street in the area known as Billionaires Row for its residential skyscrapers with apartments costing tens of millions of dollars. Plans for the Park Hyatt call for 210 guest rooms starting at $795 a night, spa-treatment suites with private balconies, and amenities such as an indoor pool with underwater speakers that pipe in music from neighboring Carnegie Hall.
Hyatt is seeking a competitive edge in Manhattan, where it already operates seven properties, none rated five stars, said Steve Haggerty, global head of real estate and capital strategy for the Chicago-based company. The new Park Hyatt would be the city’s first hotel with the coveted distinction since 2003, when the Mandarin Oriental opened in the nearby Time Warner Center. Since then, most growth in the city’s lodging market has been in the select-service category, hotels that offer few amenities and cost less to operate.
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Heather Perlberg, BloombergMs. Perlberg may be contacted at
hperlberg@bloomberg.net
New York’s Highest Court Weighs in on N.Y. Labor Law
September 23, 2024 —
Bill Wilson - Construction Law ZoneN.Y. Labor Law § 241(6) requires owners and contractors to provide reasonable and adequate protection and safety to persons employed at or lawfully frequenting a construction site. If a worker is injured on a construction site and establishes a violation of a specific and applicable Industrial Code regulation, both the owner and contractor will be held vicariously liable for the worker’s injury, without regard to their fault and even in the absence of control or supervision of the worksite. The Court of Appeals of New York recently addressed the broad scope of the Labor Law in the context of slipping hazards.
In Bazdaric v. Almah Partners, LLC, 41 N.Y.3d 310 (2024), the plaintiff, an injured painter, slipped and fell on a plastic covering placed over an escalator in an area he was assigned to paint. The plaintiff claimed that the plastic covering was a foreign substance for purposes of Industrial Code 12 NYCRR 23-1.7(d) because it was not part of the escalator. Industrial Code 12 NYCRR 23-1.7(d) states:
Slipping hazards. Employers shall not suffer or permit any employee to use a floor, passageway, walkway, scaffold, platform or other elevated working surface which is in a slippery condition. Ice, snow, water, grease and any other foreign substance which may cause slippery footing shall be removed, sanded or covered to provide safe footing.
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Bill Wilson, Robinson & Cole LLPMr. Wilson may be contacted at
wwilson@rc.com
Project Labor Agreements Will Now Be Required for Large-Scale Federal Construction Projects
February 14, 2022 —
Lori Ann Lange, Aaron C. Schlesinger & Lauren Rayner Davis - Peckar & Abramson, P.C.On February 4, 2022, President Biden issued an Executive Order on Use of Project Labor Agreements for Federal Construction Projects (EO), which will require the use of project labor agreements (PLAs) on large-scale federal construction projects with a total estimated cost of $35 million or more unless a senior official within the agency grants an exception. Agencies also may require the use of PLAs on projects that are less than $35 million.
While the EO is effective immediately, it will only apply to solicitations issued on or after the effective date of final regulations issued by the FAR Council. The FAR Council has 120 days to propose regulations implementing the EO. Often there is a significant period of time between the publication of proposed regulations, evaluation of public comments, and publication of final regulations.
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Lori Ann Lange, Peckar & Abramson, P.C.,
Aaron C. Schlesinger, Peckar & Abramson, P.C. and
Lauren Rayner Davis, Peckar & Abramson, P.C.
Ms. Lange may be contacted at llange@pecklaw.com
Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com
Ms. Davis may be contacted at ldavis@pecklaw.com
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