Construction Materials Company CEO Sees Upturn in Building, Leading to Jobs
November 05, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Washington Post reported that Mesa Industries Inc. (a construction equipment and materials company), are "prepping for significant growth," which suggests that the construction industry is poised for growth. Terry Segerberg, CEO of Mesa Industries Inc., "is seeing enough nonresidential orders to suggest a sustained jobs recovery is underway in the industry — and in firms like hers that supply it."
A Bureau of Labor Statistics report predicted that 1.6 million construction jobs will be added through 2022, according to the Washington Post.
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Commencing of the Statute of Repose for Construction Defects
November 08, 2021 —
David Adelstein - Florida Construction Legal UpdatesFlorida has a ten-year statute of repose which applies predominantly to construction defect claims. This can be found in Florida Statute s. 95.11(3)(c). After ten years, any rights relative to a construction defect claim are time-barred. However, the statute of repose date has been watered down and can be made to be more of a factual question due to the lack of objectivity as to the date that starts the ten-year repose clock. The watering down of the statute of repose date benefits parties asserting construction defect claims provided they strategically appreciate the question of fact that can be created when up against the statute of repose. Stated differently, when up against the clock to assert a construction defect claim, strategically develop those facts, evidence, and arguments to maximize creating a question of fact as to when the statute of repose clock commenced. Conversely, as a defendant sued for construction defects, you want to maximize the facts, evidence, and arguments to fully establish the date the statute of repose clock had to commence for purposes of a statute of repose defense.
The recent opinion in Spring Isle Community Association, Inc. v. Herme Enterprises, Inc., 46 Fla. L. Weekly D2306b (Fla. 5th DCA 2021) demonstrates the factual question associated with the clock that starts the statute of repose date. This factual question is created by Florida Statute s. 95.11(3)(c) that provides:
[T]he action [founded on the design, planning, or construction of an improvement to real property] must be commenced within 10 years after the date of actual possession by the owner, the date of the issuance of a certificate of occupancy, the date of abandonment of construction if not completed, or the date of completion or termination of the contract between the professional engineer, registered architect, or licensed contractor and his or her employer, whichever date is latest.
Spring Isle Community Association, supra. (Note, see also current s. 95.11(3)(c) version in effect per hyperlink above.)
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Where Standing, Mechanic’s Liens, and Bankruptcy Collide
September 17, 2018 —
Christopher G. Hill - Construction Law MusingsI have spoken often about mechanic’s liens and the implications of such liens as they relate to bankruptcy here at Construction Law Musings. A recent case out of Loudoun County, Virginia added another wrinkle to this discussion, that of standing and what happens on conveyance of the property and what interest in the property is required to allow a party to seek removal of the mechanic’s lien.
In Leesburg Bldg. P’rs LLC v. Mike Berger Inc. the Loudoun County Circuit Court faced the following scenario. Leesburg Building Partners developed certain condominiums and hired Lansdowne Construction to perform the work as general contractor and paid Landsdowne in full for the work. Lansdowne hired Mike Berger, Inc. (“MBI”) to perform concrete work for the project. Landsdowne didn’t pay MBI approximately $48,000.00 and subsequently filed for bankruptcy. MBI, seeking to protect it’s interest in the money it was owed, recorded a mechanic’s lien on the property. Leesburg Building Partners filed an action to declare the lien invalid and have it removed from the property based upon its “payment defense” and the fact that it had paid Landsdowne in full. A relatively simple scenario and one that has been discussed before here at Musings. Not so fast. . .
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Colorado Court of Appeals holds that insurance companies owe duty of prompt and effective communication to claimants and repair subcontractors
March 01, 2011 —
Colorado Construction LitigationIn Dunn v. American Family Insurance, 09CA2173, 2010 WL 4791948 (Colo. App. Nov. 24, 2010), the Dunns reported a claim to American Family on their homeowners insurance policy after sewer and water backup caused sewage to flood their basement. American Family gave the Dunns contact information for a contractor (ICA) to remediate the flooding. However, ICA was unsuccessful and sewage began to infiltrate the Dunns’ HVAC system. Subsequently, black mold was detected in the HVAC system, the Dunns suffered health and respiratory problems, and they soon after vacated the home. The Dunns hired and fired two more contractors for unsatisfactory work throughout the winter before hiring a fourth to finish the job. Because the home remained vacant and unheated throughout the winter, the water pipes ruptured. The mold spread throughout the entire home and all of the contents needed to be replaced, which amounted to a claim of $340,000 on the policy.
American Family agreed to pay the full $340,000. However, the Dunns brought suit claiming that American Family breached the implied duty of good faith and fair dealing by: 1) failing to screen ICA for expertise; 2) failing to screen ICA for liability insurance coverage; 3) failing to monitor ICA’s work; 4) failing to advise them that flooding can cause further damage, including freezing pipes and mold; and, 5) failing to adequately and promptly communicate with them and remediation subcontractors in the course of investigating and handling their claim.The trial court found no duty owed by American Family beyond adjustment and timely payment of claims. Because American Family paid timely and in full, they dismissed all of the Dunns’ claims. However, the Court of Appeals reversed in part.
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Reprinted courtesy of Chad Johnson, Higgins, Hopkins, McLain & Roswell, LLC. Mr. Johnson can be contacted at johnson@hhmrlaw.com
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Be Sure to Dot All of the “I’s” and Cross the “T’s” in Virginia
August 02, 2017 —
Christopher G. Hill - Construction Law MusingsAs a construction company from outside of Virginia that wants to work here in the Commonwealth, there are numerous “hoops” that you need to jump through to be able to perform work and most importantly get paid. Among these are obtaining a Virginia contractors license, find a registered agent here in Virginia, hopefully find a local construction lawyer to help with your contracts, and (the subject of this post), register with the Virginia State Corporation Commission for the authority to do business in the Commonwealth of Virginia.
Aside from it being a requirement of state law, the real world consequence of failing to register to do business is that, while you could file a lawsuit to enforce a claim (such as a mechanic’s lien), failure to register could cost you the ability to enforce or obtain any judgment on that lien. In other words, you could go through the costly litigation process, “win” and then be barred from any recovery simply because you did not follow this step.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
The Families First Coronavirus Response Act: What Every Employer Should Know
April 06, 2020 —
Donald A. Velez, Karissa L. Fox & Sarah K. Carpenter - Smith CurrieSmith Currie provides this update regarding the Families First Coronavirus Response Act as part of its continuing effort to monitor developments concerning the Coronavirus disease (“COVID-19”) and provide guidance as to potential issues that may arise in businesses across the United States.
On March 18, 2020, President Trump signed into law the Families First Coronavirus Response Act (the “Act”), which contains provisions requiring certain private employers to provide paid leave to employees who cannot work because of Coronavirus, expanding Family and Medical Leave Act coverage, providing for federal tax credits to affected employers, and providing eligible states the ability to further fund their unemployment trust fund accounts. The Act is effective as of April 2, 2020 and will remain in place through December 31, 2020.
Below, we provide a summary of the Act and several of its key components, including the Emergency Family and Medical Leave Expansion Act (“EFMLEA”), the Emergency Paid Sick Leave Act, and the Emergency Unemployment Insurance Stabilization and Access Act.
Reprinted courtesy of Smith Currie attorneys
Donald A. Velez,
Karissa L. Fox and
Sarah K. Carpenter
Mr. Velez may be contacted at davelez@smithcurrie.com
Ms. Fox may be contacted at klfox@smithcurrie.com
Ms. Carpenter may be contacted at skcarpenter@smithcurrie.com
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Read the Property Insurance Policy to be Sure You are Complying with Post Loss Obligations
January 04, 2021 —
David Adelstein - Florida Construction Legal UpdatesI have discussed this before in prior postings, but it is worth repeating. It is imperative for an insured to comply with post loss obligations in a property insurance policy. Not doing so gives the insurer the argument that its insured forfeited coverage under the policy. Naturally, this is never what an insured wants as this is contrary to submitting an insurance claim to begin with. To avoid this situation, an insured should consult with counsel and read the policy including endorsements issued to the policy to be sure that post loss obligations are complied with and, if they are not, there is a basis supported by case law.
In a recent case, Goldberg v. Universal Property and Casualty Ins. Co., 45 Fla. L. Weekly D2118b (Fla. 4th DCA 2020), the property insurance policy for hurricanes and windstorms contained the following through an endorsement issued to the policy:
You must give notice of a claim, a supplemental claim, or reopened claim for loss or damage caused by the peril of windstorm or hurricane, with us in accordance with the terms of this policy and within three years after the hurricane first made landfall or the windstorm caused the covered damage. For purposes of this Section, the term “supplemental claim” or “reopened claim” means any additional claim for recovery from us for losses from the same hurricane or windstorm which we have previously adjusted pursuant to the initial claim. . . .
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Environmental Roundup – May 2019
July 09, 2019 —
Anthony B. Cavender - Gravel2GavelFederal Courts of Appeal
Dam Claims Collapse
On May 7, 2019, the U.S. Court of Appeals for the Eleventh Circuit decided the case of Navelski, et al. v. International Paper Company. After a major storm, a dam constructed by International Paper to serve the operations of its local paper mill, was breached, releasing millions of gallons of water into a nearby creek resulting in the flooding of many homes located downstream from the creek. IP was sued by the homeowners in a class action, alleging negligence and strict liability for conducting an abnormally dangerous activity. The trial court dismissed the strict liability claim, and the jury found IP was not negligent in the operation of the dam. On appeal, the court upheld the jury verdict, agreeing that the verdict was supported by the evidence heard by the jury. The appeals court also agreed that the strict liability claim was properly dismissed as a matter of law because the operation of this dam was not an abnormally dangerous activity under Florida law. The plaintiffs had also argued that the jury should not have been advised that the home county, Escambia County, has applied for a FEMA grant which apparently made the case that some of the downstream homes were naturally prone to flooding. A redacted version of the application was allowed to be shown to the jury, but the appeals court held that the plaintiffs had not demonstrated that the court ruling was prejudicial.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com