Breach of an Oral Contract and Unjust Enrichment and Implied Covenant of Good Faith and Fair Dealing
December 23, 2023 —
David Adelstein - Florida Construction Legal UpdatesIn an ideal world, parties would have written contracts. In reality, parties should endeavor to ensure every transaction they enter into is memorialized in a written contract. This should not be disputed. Of course, written contracts are not always the case. Parties enter transactions too often whereby the transaction is not memorialized in a clean written agreement. Rather, it is piecemealing invoices, or texts, or discussions, or proposals and the course of business. A contract can still exist in this context but it is likely an oral contract. Keep in mind if there is a dispute, what you think the oral contract says will invariably be different than what the other party believes the oral contract says. This “he said she said” scenario gets removed, for the most part, with a written contract that memorializes the written terms, conditions, and scope.
A recent federal district court opinion dealt with the alleged breach of an oral contract. In Movie Prop Rentals LLC vs. The Kingdom of God Global Church, 2023 WL 8275922 (S.D.Fla. 2023), a dispute concerned the fabrication and installation of a complex, modular stage prop to be used for an event. But here lies the problem. The dispute was based on an oral contract and invoices. The plaintiff, the party that was fabricating the modular stage prop, sued the defendant, the party that ordered the stage prop for the event, for non-payment under various claims. The defendant countersued under various claims.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Insurance Law Client Alert: California Appeals Court Refuses to Apply Professional Services Exclusion to Products-Completed Operations Loss
March 19, 2014 —
Valerie A. Moore and Chris Kendrick - Haight Brown & Bonesteel LLPIn North Counties Engineering v. State Farm (No. A133713, filed 3/13/14), State Farm insured an engineering company under CGL insurance that had a professional services exclusion and included products-completed operations (PCO) coverage. The owner of the engineering company, NCE, contracted with a winery to construct a dam and associated works. Also on the project was the owner's son, who had his own construction company, NCD. There were multiple contracts, both oral and written, variously naming one company or the other. The evidence later showed that the father performed hands-on work for the project.
After completion, the winery was sued over sediment and erosion caused by the dam. State Farm denied coverage on the ground that the professional services exclusion applied, as well as a mistaken belief that the policy had no PCO coverage. State Farm then changed its position and agreed to defend, but only going forward. The insured sued State Farm over past defense fees, alleging breach of contract and bad faith. The case went to trial and after testimony detailing State Farm's claim handling, the trial judge granted a nonsuit, finding that the professional services exclusion barred all coverage:
"[I]f you look at the pleadings, the legal pleadings and the contracts, the NCE role is, as the engineering company, the support company, and that company was overseeing the [sic] NCD to make sure that whatever they did was done right.... NCE is the expert on the job, the professional providing professional services, design and construction, and also overseeing the work of NCD, the son’s business, which is doing more of the physical activity.... That takes professional expertise and I think all of what Mr. Akerstrom did was professional.... It was this professional work, and not 'something incidental to their professional involvement' that gave rise to the underlying actions. In this situation, it’s not a malpractice or E and O policy. It’s a business policy, which has good benefits, but is subject to the professional services exclusion."
Reprinted courtesy of
Valerie A. Moore and
Chris Kendrick of Haight Brown & Bonesteel LLP
Ms. Moore may be contacted at vmoore@hbblaw.com; Mr. Kendrick may be contacted at ckendrick@hbblaw.com
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Angels Among Us
June 21, 2024 —
Maggie Murphy - Construction ExecutiveIn the early morning hours of March 26, 2024, an outbound cargo ship in the Port of Baltimore unexpectedly lost power as it churned toward the Francis Scott Key Bridge. Authorities had just minutes to stop vehicular traffic before the massive vessel—985 feet long and 157 feet wide, nearly as tall as the Eiffel Tower if stood on end—crashed headlong into one of the bridge’s support piers. Quick-acting dispatchers were able to stop the flow of traffic in time, but overnight work crews filling potholes on the bridge didn’t have enough warning. Six workers lost their lives when the bridge collapsed.
On top of bringing immense grief, construction fatalities can be financially devastating to the surviving families. Enter Construction Angels, a nonprofit that provides financial assistance, grief counseling and scholarships to families of fallen construction workers. When founder Kristi Ronyak first heard news of the Key Bridge collapse, she immediately jumped into action. “We started getting calls just hours after the crash,” Ronyak says. “When I first heard the news, my heart sank, and I just started crying.
Reprinted courtesy of
Maggie Murphy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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FEMA Administrator Slams Failures to Prepare, Evacuate Before Storms
October 23, 2018 —
Christopher Flavelle - BloombergFederal Emergency Management Agency Administrator Brock Long angrily criticized the failure of citizens to heed evacuation warnings and leaders to better prepare for natural disasters such as Hurricane Michael.
"It's frustrating to us because we repeat this same cycle over and over again," Long said during a press briefing Friday at FEMA headquarters in Washington. "If you want to live in these areas, you've got to do it in a more resilient fashion."
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Christopher Flavelle, Bloomberg
Quick Note: Insurer Must Comply with Florida’s Claims Administration Act
September 14, 2017 —
David Adelstein - Florida Construction Legal UpdatesAs an insured, know YOUR rights under Florida’s Claims Administration Act (Florida Statute s. 627.426). I wrote an article on this exact topic. If a third-party claim is asserted, or in the process of being asserted, against you, do yourself a favor and consult a lawyer that can assist you with preserving your insurance coverage rights. You pay liability insurance premiums for a reason so make sure you are not doing anything that could jeopardize rights under applicable insurance policies.
A liability insurer must comply with the Claims Administration Act if it wants to deny coverage based on a coverage defense (e.g., the insured’s failure to cooperate with the insurer).
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com
MBS’s $500 Billion Desert Dream Just Keeps Getting Weirder
August 29, 2022 —
Vivian Nereim - BloombergOne day last September, a curious email arrived in Chris Hables Gray’s inbox. An author and self-described anarchist, feminist, and revolutionary, Gray fits right into Santa Cruz, Calif., where he lives. He’s written extensively about genetic engineering and the inevitable rise of cyborgs, attending protests in between for causes such as Black Lives Matter.
While Gray had taken some consulting gigs over the years, he’d never received an offer like this one. The first shock was the money: significantly more than he’d earned from all but one of his books. The second was the task: researching the aesthetics of seminal works of science fiction such as Blade Runner. The biggest surprise, however, was the ultimate client: Mohammed bin Salman, the 36-year-old crown prince of Saudi Arabia.
MBS, as he’s known abroad, was in the early stages of one of the largest and most difficult construction projects in history, which involves turning an expanse of desert the size of Belgium into a high-tech city-region called Neom. Starting with a budget of $500 billion, MBS bills Neom as a showpiece that will transform Saudi Arabia’s economy and serve as a testbed for technologies that could revolutionize daily life. And as Gray’s proposed assignment suggested, the crown prince’s vision bears little resemblance to the cities of today. Intrigued, Gray took the job. “If I can be honest with how I see the world, I’ll pretty much put my work out to anyone,” he says.
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Vivian Nereim, Bloomberg
OSHA COVID-19 Vaccination and Testing ETS Unveiled
November 19, 2021 —
Donna Reichle - Construction ExecutiveAssociated Builders and Contractors today released the following statement on the Occupational Safety and Health Administration’s issuance of its COVID-19 vaccination and testing Emergency Temporary Standard, which applies to employers with 100 or more employees as required by President Biden’s Path Out of the Pandemic COVID-19 Action Plan.
“The OSHA ETS is likely to increase compliance costs and cause regulatory burdens that will exacerbate several headwinds facing the construction industry—which is currently facing a workforce shortage of 430,000, escalating materials prices and supply chain bottlenecks—and the American economy,” says Ben Brubeck, ABC vice president of regulatory, labor and state affairs. “We are currently reviewing the 490-page rule and related documents from the Biden-Harris administration in order to thoroughly evaluate its impact on our membership and the construction industry.”
Reprinted courtesy of
Donna Reichle, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Ms. Reichle may be contacted at
reichle@abc.org
Harvey's Aftermath Will Rattle Construction Supply Chain, Economists Say
September 07, 2017 —
Tim Grogan - Engineering News-RecordHurricane Harvey’s immediate impact on the construction sector will be a disruption in the supply chain for key materials, along with scheduling problems for projects that were under construction. As the cleanup and eventual rebuilding proceed, increased demand for materials and labor will push costs upward and contractors will be scrambling to secure supplies and workers.
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Tim Grogan, ENRENR may be contacted at
ENR.com@bnpmedia.com