Chicago Aldermen Tell Casino Bidders: This Is a Union Town
June 13, 2022 —
Shruti Singh - BloombergSeveral Chicago aldermen on Monday sent gaming companies that are bidding on building the city’s first casino a message: this is a union town.
During a special casino committee of the city council hearing on Monday, the aldermen expressed concerns that the three bidders -- Bally’s Corp., Hard Rock International and Rush Street Gaming -- that are seeking to construct and operate a gaming and entertainment complex don’t have a deal with local labor groups. Chicago Chief Financial Officer Jennie Bennett said during the hearing that a deal with labor was part of the requirements laid out in the city’s request for proposals.
None of the three bidders have committed to labor standards, and moving forward without an agreement on items such as a living wage “is a slap in the face,” Robert Reiter Jr., president of the Chicago Federation of Labor, said during the public testimony portion of the meeting. The federation represents 300 affiliated unions and their half a million members.
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Shruti Singh, Bloomberg
Fifth Circuit Finds Duty to Defend Construction Defect Case
March 14, 2022 —
Tred R. Eyerly - Insurance Law HawaiiReversing the judgment of the district court, the Fifth Circuit found the insurer owed a defense in a construction defect case. Siplast, Inc. v. Emplrs Mut. Cas. Co., 2022 U.S. App. LEXIS 795 (5th Cir. Jan. 11, 2022).
The Archdiocese of New York sued various parties for a roofing project at a high school in the Bronx. Siplast, the roofing manufacturer, was included as a defendant. The underlying lawsuit arose from the Archdiocese purchase of a roof membrane system from Siplast. Siplast guaranteed that the roof membrane system would remain "in a watertight condition for a period of 20 years . . . or Siplast will repair the Roof Membrane System at its own expense."
After installation of the roof, school officials noticed water damage in the ceiling tiles throughout the school after a rain storm. Siplast attempted to repair the damage, but was unsuccessful. Siplast later informed the Archdiocese that the guarantee would not be honored regarding any permanent improvements of the roof. The Archdiocese filed suit against Siplast and the installing contractor. The cause of action against Siplast was for breach of the guarantee.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Public Policy Prevails: Homebuilders and Homebuyers Cannot Agree to Disclaim Implied Warranty of Habitability in Arizona
November 01, 2022 —
Ryan Bennett - The Subrogation StrategistIn Zambrano v. M & RC II LLC, et al., 2022 Ariz. LEXIS 309, the Supreme Court of Arizona held that a homebuilder and homebuyer could not waive or disclaim the implied warranty of workmanship and habitability. While the court would normally enforce a contract between two parties – even if one side made a “bad deal” – they will not do so if the contract’s terms are against public policy.
In this case, Tina Zambrano (Zambrano) signed a purchase agreement with the homebuilder to buy a newly built home. The agreement included provisions which expressly disclaimed any implied warranties, including the warranty of habitability and workmanship. After the purchase, Zambrano claimed that there were construction defects within the home, including popped nails in the drywall and issues with the home’s foundation. Zambrano sued the homebuilder for breach of the implied warranty of workmanship and habitability. The homebuilder moved for summary judgment based on the waivers within the contract and the trial court, agreeing that the waivers applied, dismissed the case. Zambrano appealed and the appellate court reversed the trial court’s decision. The appellate court specifically explained that Arizona has a public policy interest in protecting consumers.
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Ryan Bennett, White and Williams LLPMr. Bennett may be contacted at
bennettr@whiteandwilliams.com
Subcontractor Sued for Alleged Defective Work
June 11, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Louisiana Record reported that “[a] construction company is suing a subcontractor for alleged defective work on two construction projects” in New Orleans, Louisiana.
New Beginnings Enterprises and J. Fernando Arriola are “accused of providing defective labor and materials, failing to properly supervise construction on the properties, failing to obtain inspections required under building codes, failing to construct dwellings in accordance with plans and specifications and failing to perform agreements in a workmanlike manner,” according to the Louisiana Record.
Plaintiffs including Bartel Construction LLC seek $209,500 in damages “as additional sums for defective and incomplete work, lost profits, consequential damages and attorney’s fees.”
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Condominium Construction Defect Resolution in the District of Columbia
October 26, 2017 —
Nicholas D. Cowie - Maryland Condo Construction Defect Law BlogNewly constructed and newly converted condominiums in the District of Columbia often contain concealed or “latent” construction defects. Left undetected and unrepaired, defects in the construction of a condominium can cause extensive damage over time, requiring associations to assess their members substantial repair costs that could have been avoided by making timely developer warranty claims.
This article provides a general overview of how Washington DC condominium associations transitioning from developer control can proactively and successfully identify defects and resolve construction defect claims with condominium developers and builders.
Condominium Association Responsibility for Timely Evaluation of Common Element Construction
Condominium associations are charged with the responsibility of overseeing and maintaining condominium common element facilities, typically consisting of building roofs, exterior walls, foundations, lobbies, common hallways, elevators, surrounding grounds, and the common structural mechanical, electrical, and plumbing systems. Following the period of developer control, it is incumbent upon a condominium association’s first unit owner elected board of directors to evaluate the construction of the condominium common element facilities and determine whether the existing, developer-created, budget and reserve fund are adequate to cover the cost of maintaining, repairing, and ultimately replacing the condominium facilities over time.
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Nicholas D. Cowie, Cowie & Mott, P.A.Mr. Cowie may be contacted at
ndc@cowiemott.com
The Privette Doctrine, the Hooker Exception, and an Attack at a Construction Site
July 05, 2023 —
Garret Murai - California Construction Law BlogYou don’t often hear about workers being attacked by ne’er-do-wells on a construction project. But, as they say, shite happens . . .
Construction contracts often address health and safety issues, as well as site security to protect the improvement, materials, equipment and tools, as well as to protect the public from getting hit by say a large crane with a demolition ball, but site security to protect the workers from thugs, not so much.
This is exactly what happened to a construction worker in Degala v. John Stewart Company (2023) 88 Cal.App.5th 158 who was jumped and injured by three hoodlums who attacked him while he was working at a job site. The injured worker, an employee of a subcontractor, was covered by workers’ compensation insurance, but also brought claims against the general contractor and project owner for negligence and premises liability and they, in turn, argued they were immune from liability under the Privette doctrine.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Veolia Agrees to $25M Settlement in Flint Water Crisis Case
February 19, 2024 —
James Leggate - Engineering News-RecordEngineering firm Veolia North America agreed to a $25-million settlement to resolve a federal class action case related to its work for the city of Flint, Mich., during the city’s lead-in-water crisis, the company and attorneys for the plaintiffs announced Feb. 1. Veolia is the second engineering firm that worked for the city to settle with city residents, and the deal came ahead of a class-action trial scheduled to start later this month.
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James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
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Florida Court of Appeals Holds Underlying Tort Case Must Resolve Before Third-Party Spoliation Action Can Be Litigated
December 04, 2018 —
Lian Skaf - The Subrogation StrategistIn Amerisure Ins. Co. v. Rodriguez, 43 Fla. L. Weekly 2225 (Fla. Dist. Ct. App., Sept. 26, 2018), the Third District Court of Appeals of Florida addressed whether a third-party spoliation claim should be litigated and tried at the same time as the plaintiff’s underlying tort case. The court held that since the third-party spoliation claim did not accrue until the underlying claim was resolved, the spoliation cause of action could not proceed until the plaintiff resolved his underlying claim.
The underlying matter in Amerisure involved a personal injury claim by plaintiff Lazaro Rodriguez. While working as an employee for BV Oil, Inc. (BV), Mr. Rodriguez was knocked from the top of a gasoline tanker he was fueling at a gasoline storage warehouse owned by Cosme Investment (Cosme). Mr. Rodriguez filed a personal injury lawsuit against Cosme. He also collected worker’s compensation benefits from Amerisure Insurance Company (Amerisure), BV’s worker’s compensation carrier, while his lawsuit was pending.
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Lian Skaf, White & Williams LLPMr. Skaf may be contacted at
skafl@whiteandwilliams.com