The Unpost, Post: Dynamex and the Construction Indianapolis
July 10, 2018 —
Garret Murai - California Construction Law BlogIt’s been three months since the California Supreme Court issued its landmark decision in Dynamex Operations West, Inc. v. Superior Court, Case No. S222732 (April 30, 2018) and I’ve had a couple of readers (perhaps my only two) ask whether I was going to write about the decision.
I’m not. Well, obviously, that’s not quite true if you’re reading this. Rather, I’ll tell you why I’m writing about not writing about the decision.
Dynamex is certainly an important decision and one that will likely be cited for decades to come. In short, Dynamex changed the nearly 30-year old test, first elucidated in S.G. Borello & Sons Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 341, for determining whether a worker is properly classified as an independent contractor or an employee.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Gloria Gaynor Sues Contractor over Defective Deck Construction
October 22, 2013 —
CDJ STAFFGloria Gaynor, known for her 1978 disco hit, “I Will Survive” is suing the firm that renovated her second-floor deck, alleging that the work lead to water intrusion into her home. Ms. Gaynor also accuses the company of consumer fraud, alleging that Diaz Landscape Design & Tree Service LLC lacked registration as a home improvement contractor and failed to obtain a building permit for the structure.
Ms. Gaynor paid about $38,000 for the replacement of her deck and other renovations to her property in 2007. Subsequently, the singer noticed “ponding of water on the deck, water damage to wood sills and supports, and the formation of mold,” according to the lawsuit. Diaz Landscape attempted repairs, but “the problems persisted and continue to persist causing further damage.”
The lawsuit claims that the cost of replacing the defective deck construction would cost about $120,000.
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New York Revises Retainage Requirements for Private Construction Contracts: Overview of the “5% Retainage Law”
January 22, 2024 —
Levi W. Barrett, Patrick T. Murray, Skyler L. Santomartino & Mark A. Snyder - Peckar & Abramson, P.C.On November 17, 2023, the State of New York enacted the “5% Retainage Law.” This legislation effectively limits the amount of retainage that can be held from general contractors and subcontractors to no more than 5%. It applies to many but not all construction contracts. In addition, the new law revises late stage billing requirements, enabling contractors to invoice for retainage at substantial completion. Previously, the parties to a construction contract were free to negotiate any retainage amount, limited only by an unspecified “reasonable amount” that would be released as the parties contractually set forth.
Summary
The new law amends Sections 756-a and 756-c of the General Business Law (part of Article 35E of the GBL, known as the “Prompt Pay Act”), and applies to private construction contracts “where the aggregate cost of the construction project, including all labor, services, materials and equipment to be furnished, equals or exceeds one hundred fifty thousand dollars.”
Reprinted courtesy of
Levi W. Barrett, Peckar & Abramson, P.C.,
Patrick T. Murray, Peckar & Abramson, P.C.,
Skyler L. Santomartino, Peckar & Abramson, P.C. and
Mark A. Snyder, Peckar & Abramson, P.C.
Mr. Barrett may be contacted at lbarrett@pecklaw.com
Mr. Murray may be contacted at pmurray@pecklaw.com
Mr. Santomartino may be contacted at ssantomartino@pecklaw.com
Mr. Snyder may be contacted at msnyder@pecklaw.com
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Good Indoor Air Quality Keeps Workers Healthy and Happy
June 10, 2024 —
Ellie Gabel - Construction ExecutiveMost people primarily think of air conditioners as appliances to keep people cool. However, a 2024 study of office air conditioners shows that they promote indoor air quality by minimizing the harmful effects of bushfire smoke.
The research indicated air conditioners used in office environments can trap particles and reduce people’s exposure to harmful elements such as sulfates and nitrates. The researchers collected particulate matter from commercial air conditioner filters during the peak bushfire season in Australia. Evaluations showed the daily particulate matter levels were usually two to three times the average amount. However, some hourly maximums were 10.5 times the usual.
The team took samples for four months, finding the specimens exceeded national air quality standards 19% of the time. Analyses performed in a university showed commercially available air filters captured significant amounts of bushfire smoke, reducing the associated hazards for building occupants.
Reprinted courtesy of
Ellie Gabel, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Oregon Supreme Court Confirms Broad Duty to Defend
January 13, 2017 —
Theresa A. Guertin - Saxe Doernberger & Vita, P.C. BlogThe Supreme Court of Oregon issued a decision at the end of last year which perfectly illustrates the lengths to which a court may go to grant a contractor’s claim for defense from its insurer in a construction defect suit. In West Hills Development Co. v. Chartis Claims, Inc.,1 the Court held that a subcontractor’s insurer had a duty to defend a general contractor as an additional insured because the allegations of a homeowner’s association’s complaint could be interpreted to fall within the ambit of coverage provided under the policy—despite the fact that the policy only provided ongoing operations coverage, and despite the fact that the subcontractor was never mentioned in the complaint. The decision is favorable to policyholders but also provides an important lesson: that contractors may avoid additional insured disputes if those contractors have solid contractual insurance requirements for both ongoing and completed operations risks.
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Theresa A. Guertin, Saxe Doernberger & Vita, P.C. Ms. Guertin may be contacted at
tag@sdvlaw.com
“Good Faith” May Not Be Good Enough: California Supreme Court to Decide When General Contractors Can Withhold Retention
March 22, 2018 —
Erinn Contreras and Joy O. Siu – Construction & Infrastructure Law BlogIt is industry standard in California for owners of a construction project to make monthly payments to a contractor for work it has completed, less a certain percentage that is withheld as a guarantee of future satisfactory performance. This withholding is called a retention. Contractors generally pass these withholdings on to their subcontractors via a retention clause in the subcontract. Under such clause, if a subcontractor fails to complete its work or correct deficiencies in its work, the owner and the general contractor may use the retention to bring the subcontractor’s work into conformance with the requirements of the contract.
When and how retention payments must be released are governed by, among other statutes, Civil Code section 8800
et seq. Specifically, Civil Code section 8814, subdivision (a), states that a direct contractor must pay each subcontractor its share of a retention payment within ten days after the general contractor receives all or part of a retention payment. Failure to make payments in accordance with Section 8814 can subject an owner or a contractor to a (1) two percent penalty per a month on the amount wrongfully withheld, and (2) claim for attorney’s fees for any litigation required to collect the wrongfully withheld retention payments. (Civ. Code, § 8818.)
Reprinted courtesy of
Erinn Contreras, Sheppard, Mullin, Richter & Hampton LLP and
Joy Siu, Sheppard, Mullin, Richter & Hampton LLP
Ms. Contreras may be contacted at econtreras@sheppardmullin.com
Ms. Siu may be contacted at jsiu@sheppardmullin.com
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6 Ways to Reduce Fire Safety Hazards in BESS
January 02, 2024 —
The Hartford Staff - The Hartford InsightsRenewable energy sources, such as solar and wind, are projected to generate 44% of all power in the U.S. by 2050, which is increasing the need for battery energy storage systems (BESS).1
BESS are electrochemical devices that collect energy from a power grid, power plant or renewable source, hold it, and then discharge that energy later to provide electricity on demand.
“A BESS does not itself create or produce energy, it is a storage system. The energy is produced by other means, including different types of renewable sources. Think of a cellphone – you charge it overnight and then it runs throughout the day off that battery power,” says Stacie Prescott, head of energy for middle and large commercial at The Hartford.
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The Hartford Staff, The Hartford Insights
Arkansas Federal Court Fans the Product Liability Flames Utilizing the Malfunction Theory
September 14, 2020 —
Michael J. Ciamaichelo - The Subrogation StrategistTo establish a product liability claim in Arkansas, the plaintiff must prove that the product was supplied in a defective condition, which rendered it unreasonably dangerous and that the defective condition was the proximate cause of the claimed damage or injury. Ordinarily, a plaintiff relies upon direct evidence of a product defect to establish its product liability claim. However, in some cases, the product sustains so much damage that it is impossible for a plaintiff to obtain direct evidence of a defect.
The malfunction theory allows a plaintiff in a product liability action to establish a defect through circumstantial evidence, when direct evidence of a defect no longer exists. In order to utilize the malfunction theory, a plaintiff must present evidence that an unspecified product defect was the most likely cause of the damage/accident and rule out all other possible causes of the damage/accident. In Am. Nat’l Prop. & Cas. Co. v. Broan-Nutone, No. 5:18-CV-5250, 2020 U.S. Dist. LEXIS 117116, the United States District Court for the Western District of Arkansas ruled that the plaintiff offered sufficient evidence under “the malfunction theory” to defeat a summary judgment motion in a product liability action involving a bathroom fan that was destroyed in a fire.
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Michael J. Ciamaichelo, White and Williams LLPMr. Ciamaichelo may be contacted at
ciamaichelom@whiteandwilliams.com