Application Of Two Construction Contract Provisions: No-Damages-For-Delay And Liquidated Damages
February 14, 2022 —
David Adelstein - Florida Construction Legal UpdatesA recent Florida opinion between a prime contractor and a Florida public body touches upon two important issues: (1) the application of a no-damage-for-delay provision; and (2) the application of a liquidated damages provision. Both provisions find there way into many construction contracts. Unfortunately, the opinion is sparse on facts. Nevertheless, the application of these provisions is worthy of consideration.
In this opinion, Sarasota County v. Southern Underground Industries, Inc., 2022 WL 162977 (Fla. 2d DCA 2022), a county hired a contractor to install sanitary and water piping underneath a waterway. During construction, a nearby homeowner complained that vibration from the drilling caused damage to his home. As a result, the county stopped the contractor’s work to address a potential safety issue, as it was contractually entitled to do. The contractor hired a structural engineer to inspect the house and the engineer issued a report determining that any alleged damage was cosmetic and that there was sufficient monitoring of the vibrations to prevent future damage. The contractor also had an insurance policy to cover any homeowner claim for damage. However, upon receipt of the engineer’s report, the county did not lift its stop work order. Rather, the stop work order remained in place for an additional 71 days.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Factual Issues Prevent Summary Judgment Determination on Coverage for Additional Insured
May 01, 2014 —
Tred R. Eyerly – Insurance Law HawaiiNumerous factual issues prevented the court from deciding at the summary judgment stage whether the additional insured was covered for a personal injury claim that happened on a construction site. Paynes Cranes v. Am States Ins. Co., 2014 U.S. Dist. LEXIS 40485 (E.D. N.Y. March 26, 2014).
Intermetal Fabricators, Inc. hired Paynes to provide a crane and driver for the construction of a store. A construction worker was injured while working with the crane. The injured worker sued several defendants, including Paynes.
Intermetal had coverage for the project that included additional insureds. The policy provided, “Any person or organization . . . for whom you [Intermetal] are required by written contract, agreement or permit to provide insurance is an insured, subject to the following additional provisions: a. The contract, agreement or permit must be in effect during the policy period . . . and must have been executed prior to the ‘bodily injury,’ ‘property damage,’ 'person and advertising injury.’”
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
More Business Value from Drones with Propeller and Trimble – Interview with Rory San Miguel
August 10, 2017 —
Aarni Heiskanen - AEC BusinessHere’s my interview with Rory San Miguel, CEO of Propeller Aerobotics, a UAV tech company. We’re discussing the use of drones in construction and the company’s recently announced collaboration with Trimble to deliver efficient UAV workflows.
You’re a co-founder of Propeller. How did your company come about?
I met Francis (Propeller co-founder) in 2013 at a drone delivery startup called Flirtey. There we worked closely on drone technology as engineers but ultimately felt like there were nearer term revenue opportunities for drones in the mapping/surveying space. We quickly spun out to start Propeller and have focussed on making drone data easy for construction, mining, quarries and landfills since then.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
info@aepartners.fi
The Coronavirus, Zoom Meetings and Now a CCPA Class Action
April 13, 2020 —
Jeffrey M. Dennis & Heather H. Whitehead - Newmeyer DillionWith the ongoing COVID-19 (commonly referred to as the Coronavirus) pandemic and orders to “stay at home” in place across the United States, most organizations have been and continue to utilize remote arrangements. The software program known as “Zoom Meetings”, has become immensely popular as a means to facilitate meetings amongst employees, team members and other consultants rather than meeting in person.
Despite such status, Zoom Video Communications, Inc. (Zoom) has been named as a defendant in one of the first, and certainly the most high-profile, class action lawsuits to be filed in California alleging violations of the California Consumer Privacy Act of 2018 (CCPA).
The Class Action
The complaint filed alleges that Zoom did not protect the personal information of its users as it collected personal information and then shared such information to third parties, including Facebook, without adequate disclosures to users. The allegations specifically refer to Zoom’s boasting about its maintenance of users’ privacy and that they can be trusted with user data. Further, it is noted that there is no disclosure provided in the Zoom Privacy Policy that disclosed that personal information was being shared with Facebook and other third parties.
Reprinted courtesy of
Jeffrey M. Dennis, Newmeyer Dillion and
Heather H. Whitehead, Newmeyer Dillion
Mr. Dennis may be contacted at jeff.dennis@ndlf.com
Ms. Whitehead may be contacted at heather.whitehead@ndlf.com
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Fourth Circuit Rejects Application of Wrap-Up Exclusion to Additional Insured
December 11, 2018 —
K. Alexandra Byrd & Samantha M. Oliveira - Saxe Doernberger & Vita, P.C.Utilizing an owner-controlled or contractor-controlled insurance program (collectively known as “wrap-ups”) can reduce claims, save costs, and give owners and general contractors comfort in knowing their project is adequately insured. However, problems often arise when a subcontractor doesn’t enroll in the wrap-up and, instead, agrees to provide additional insured coverage to the owner and general contractor on the subcontractor’s own general liability policy. One of those problems is the prevalence of wrap-up exclusions on subcontractors’ general liability policies. If the wrap-up exclusion is too broadly drafted, the exclusion can eliminate coverage for the general contractor and owner even when the subcontractor is not enrolled in the wrap-up.
Reprinted courtesy of
K. Alexandra Byrd, Saxe Doernberger & Vita, P.C. and
Samantha M. Oliveira, Saxe Doernberger & Vita, P.C.
Ms. Byrd may be contacted at kab@sdvlaw.com
Mr. Oliveira may be contacted at smm@sdvlaw.com
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A Game of Texas Hold’em: How Texas Stopped Wage Increases for Salaried Exempt Employees Nationwide
December 03, 2024 —
Matthew DeVries - Best Practices Construction LawConstruction contractors often have to deal with classification of employees, particularly those who work in the home office. Today’s guest post by
Alexandra Shulman and
Leah Lively addresses a recent court decision affecting the wage protection of employees under the the Fair Labor Standards Act (FLSA).
On November 15, 2024, a federal court in Texas vacated a U.S. Department of Labor (DOL) rule (the “2024 Rule”) that increased the minimum salary threshold for employees classified as exempt from overtime and minimum wage protections under the FLSA. The Texas court’s decision nullifies the 2024 Rule nationwide, effective immediately.
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Matthew DeVries, BuchalterMr. DeVries may be contacted at
mdevries@buchalter.com
Mortgage Bonds Stare Down End of Fed Easing as Gains Persist
October 29, 2014 —
Jody Shenn – BloombergThe end of the Federal Reserve’s third round of bond purchases is proving to be a non-event for mortgage-backed debt.
That’s partly because even though the U.S. central bank won’t be adding more home-loan securities to its balance sheet, policy makers will still be buying enough to prevent its holdings from shrinking. Those purchases are having a greater impact as the pace of net issuance slows to a quarter of the amount last year amid a weaker property market.
The $5.4 trillion market for government-backed mortgage bonds is defying predictions for a slump tied to the wind-down of the Fed stimulus program, whose completion economists predict will be announced today. Yields on benchmark Fannie Mae (FNMA) notes have shrunk 0.14 percentage point this year relative to government debt, narrowing to within 1.09 percentage points of an average of five- and 10-year Treasury rates.
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Jody Shenn, BloombergMs. Shenn may be contacted at
jshenn@bloomberg.net
Washington State Enacts Law Restricting Non-Compete Agreements
September 23, 2019 —
Ellie Perka - Ahlers Cressman & Sleight PLLCWashington State has enacted a new law that means big changes for employers. The new law, in effect on January 1, 2020, will dramatically limit the enforcement of non-compete agreements in our state and imposes tough penalties on employers found to be in violation.
While the new law does not take effect for many months, businesses should nonetheless act quickly and before year’s end to evaluate practices and, if necessary, revise existing and future non-compete agreements to ensure compliance. Under the new law, if an employee successfully proves a company’s non-compete agreement is unenforceable, then the employer will be required to pay the greater of $5,000 or an employee’s actual damages, plus the employee’s attorneys’ fees (and its own, in defending the non-compete), expenses and costs incurred in challenging the agreement.
Brief Summary of Changes
Washington Courts have typically disfavored restrictive covenants but usually enforced a non-competition agreement that protected an employer’s legitimate business interests and was reasonable in scope, geographic reach, and duration. The Legislature halted this trend through passage of Engrossed Substitute House Bill 1450.
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Ellie Perka, Ahlers Cressman & Sleight PLLCMs. Perka may be contacted at
ellie.perka@acslawyers.com