Trade Contract Revisions to Address COVID-19
August 23, 2021 —
David R. Cook Jr. - Autry, Hall & Cook, LLPMany trade contracts contain a clause that may protect trade contractors from catastrophic events like pandemics. These clauses are known as force-majeure clauses (covering acts of God). They basically say if these unavoidable events happen, the contractor is relieved of its obligations to the extent of the impact.
However, many common industry forms have not been updated to specifically address COVID-19. (They may be waiting to see how the courts treat their existing language first.) So to ensure impacts from COVID-19 are covered, a trade contractor should consider expressly adding it to the force-majeure clause. See the example below.
Notably, typical force-majeure clauses do not say the trade contractor gets more money. So an escalation clause could be added to the force-majeure clause.
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David R. Cook, Autry, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
An Additional Insured’s Reasonable Expectations may be Different from the Named Insured’s and Must be Considered to Determine whether the Additional Insured is Entitled to Defense from the Insurer of a Commercial Excess & Umbrella Liability Policy
June 12, 2014 —
Richard H. Glucksman, Esq., Jon A. Turigliatto, Esq. and Kacey R. Riccomini, Esq. – Chapman Glucksman Dean Roeb & BargerThe Second District Court of Appeal’s recent decision, Transport Insurance Company v. Superior Court (2014) 222 Cal.App.4th 1216, immediately affects builders and contractors (collectively “builders”) who are often named as additional insureds (AIs) to contractors’ general liability policies. The decision is an important tool for builders’ counsel because the builder’s reasonable expectations can alter the interpretation of ambiguous terms in policies issued to subcontractors. Essentially, the builder’s intent is relevant to the interpretation of policy terms because the subcontractor’s intent in requesting additional coverage depends on the agreement it made with the builder. The salient aspects of the facts, the Appellate Court’s reasoning, and practical considerations are discussed below.
Transport Insurance Company (Transport) issued a commercial excess and umbrella liability policy (Policy) to Vulcan Materials Company (Vulcan), naming R.R. Street & Co., Inc. (Street) as an AI for its distribution of a solvent. The Policy provided that Transport would indemnify and defend the insured for loss caused by property damage if (1) it was not covered by “underlying insurance” but was within the terms of coverage of the Policy, or (2) if the limits of liability of the “underlying insurance” were exhausted during the Policy period due to property damage. The Policy included a Schedule of Underlying Insurance (Schedule) that listed policies issued to Vulcan. Thereafter, Vulcan and Street were named as defendants in several environmental contamination actions (Underlying Actions).
Transport brought a declaratory relief action against Vulcan regarding Transport’s duty to defend. (Legacy Vulcan Corp. v. Superior Court (Legacy Vulcan) (2010) 185 Cal.App.4th 677). The trial court found the term “underlying insurance” ambiguous as it was not expressly defined to include only the policies on the Schedule and could be interpreted to include all primary policies in effect. Vulcan challenged the trial court’s decision by petition for writ of mandate, contending “underlying insurance” only included policies listed on the Schedule. The Court of Appeal found “underlying insurance” ambiguous because it was an expressly qualified term under other Policy provisions but not in the umbrella coverage provision and, thus, it was a generic term that was not limited to policies listed in the Schedule or inclusive of all primary insurance.
Reprinted courtesy of Chapman Glucksman Dean Roeb & Barger attorneys
Richard H. Glucksman,
Jon A. Turigliatto and
Kacey R. Riccomini
Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com; Mr. Turigliatto may be contacted at jturigliatto@cgdrblaw.com, and Ms. Riccomini may be contacted at kriccomini@cgdrblaw.com
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Congratulations 2016 DE, MA, NJ, NY and PA Super Lawyers and Rising Stars
October 27, 2016 —
White and Williams LLPThirty-two White and Williams lawyers have been named by Super Lawyers as a Delaware, Massachusetts, New Jersey, New York or Pennsylvania "Super Lawyer" while fourteen received "Rising Star" designations. Each lawyer who received the distinction competed in a rigorous selection process which took into consideration peer recognition and professional achievement. The lawyers named to this year's Super Lawyer list represent a multitude of practices throughout the firm.
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White and Williams LLP
I.M. Pei, Architect Who Designed Louvre Pyramid, Dies at 102
July 01, 2019 —
James S. Russell - BloombergI.M. Pei, a dominant figure in American architecture for more than three decades who designed the Louvre’s crystal pyramid and the angular East Building of Washington’s National Gallery of Art, has died. He was 102.
His son Li Chung Pei said on Thursday that his father had died overnight, the New York Times reported.
Pei gave “this century some of its most beautiful interior spaces and exterior forms,” said the jury of the Pritzker Architecture Prize, which Pei won in 1983.
Though reserved and supremely diplomatic, Pei’s face, always crowned by round thick-rimmed glasses, could break unexpectedly into a wide, dazzling smile. He approached clients with charm and a quick wit, and they usually succumbed happily.
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James S. Russell, Bloomberg
South Carolina Homeowners May Finally Get Class Action for Stucco Defects
December 04, 2013 —
CDJ STAFFLast year, Judge J. Michael Baxley approved a class action lawsuit over stucco problems in Sun City Hilton Head. The lawyers from S.C. State Plastering have already settled with about 140 defendants in that community, and they are trying to prevent the plaintiff’s lawyers from communicating with other residents. In June, a judge dismissed S.C. State Plastering’s request to block this communication, but the company has appealed.
The South Carolina Supreme Court has heard the case regarding the notices and has yet to rule. The Chief Justice has recused herself, stating that she has a connection to the case, although she has not elaborated.
Many homeowners have waited to repair their homes, hoping to receive compensation. Pulte Homes, the builder of the project, has also repaired some homes. It is not clear if those homeowners are eligible for the class action lawsuit.
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Alabama Limits Duty to Defend for Construction Defects
October 10, 2013 —
CDJ STAFFWhile supreme courts in several states have expanded what is covered under a commercial general liability policy, Alabama has bucked the trend. Martha P. Brown and David L. Brown discuss this in a post on the site of their firm, Nelson Levine de Luca & Hamilton. They note that in a recent case, Owners Insurance Company v. Jim Carr Homebuilders, “the court held that liability for defective construction resulting in water intrusion damage to otherwise properly constructed component parts is not covered under a general contractor’s commercial general liability (CGL) policy because such damages are not caused by an ‘occurrence.’”
The background of Owners v. Jim Carr was that the work of the subcontractors was found not only to be defective, but responsible for damage to correctly performed work. The court held, however, that it was all part of the same project. The court “distinguished the present case from a situation where the insured’s work results in damages to other property outside the scope of the insured’s work,” which they noted could be covered under a CGL policy.
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Federal Judge Issues Preliminary Injunction Blocking State's Enforcement of New Law Banning Mandatory Employee Arbitration Agreements
February 24, 2020 —
Amy R. Patton, Jeffrey K. Brown & Tyler B. Runge - Payne & FearsOn January 31, 2020, Judge Kimberly Mueller issued a preliminary injunction "in full" preventing the State of California from enforcing AB 51, the state's new law effectively banning mandatory employee arbitration agreements.
As we previously reported, AB 51 adds section 432.6 to the Labor Code and section 12953 to the Government Code, which together prohibit employers from requiring an employee, as a condition of employment, continued employment, or receipt of employment-related benefits, to waive any right, forum, or procedure to pursue a claim under the California Fair Employment and Housing Act or the Labor Code. In other words, AB 51 bans mandatory employment arbitration agreements for employment-related claims.
In early December 2019, the U.S. Chamber of Commerce and a coalition of business organizations sued the state of California in federal court in a bid to have AB 51 declared preempted --- and therefore unenforceable --- by the Federal Arbitration Act. The case is Chamber of Commerce of the United States v. Becerra, Case No. 2:19-cv-2456 KJM DB (E.D. Cal.).
On December 30, 2019, Judge Mueller issued a temporary restraining order preventing the state from enforcing AB 51 pending the resolution of plaintiffs' motion for a preliminary injunction. You can read our report
here.
Reprinted courtesy of Payne & Fears attorneys
Amy R. Patton,
Jeffrey K. Brown and
Tyler B. Runge
Ms. Patton may be contacted at arp@paynefears.com
Mr. Brown may be contacted at kb@paynefears.com
Mr. Runge may be contacted at tbr@paynefears.com
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The Anatomy of a Construction Dispute- The Claim
January 12, 2015 —
Christopher G. Hill – Construction Law MusingsA new year brings with it promise and challenges. The promise is a relatively clean slate and the thought that 2015 will be a great year for construction professionals and those that assist them. The challenges come from the almost inevitable issues that can arise on a construction site with its many moving parts and enough potential pitfalls to make even the most optimistic construction attorney, contractor, subcontractor or supplier think that Murphy was an optimist.
In order to assist with the potential challenges, this post will be the first in a series of “musings” on the best way to handle a payment dispute arising from a construction contract. This week’s post will discuss what the first steps should be once a payment dispute or claim arises. We’ll assume that you, as a construction contractor, have taken early advantage of the services of a construction lawyer and have carefully reviewed your contract for issues before signing that contract.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com