Georgia Law: “An Occurrence Can Arise Where Faulty Workmanship Causes Unforeseen or Unexpected Damage to Other Property”
March 05, 2011 —
CDCoverage.comIn American Empire Surplus Lines Ins. Co. v. Hathaway Development Co., Inc., No. S10G0521 (Ga. March 7, 2011), insured plumbing subcontractor Whisnant was sued by general contractor Hathaway seeking damages for costs incurred by Hathaway in repairing damage to property other than Whisnant’s plumbing work resulting from Whisnant’s negligently performed plumbing work on three separate projects. On one project, Whisnant installed a pipe smaller
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When Licensing Lapses: How One Contractor Lost a $1 Million Dispute
October 28, 2024 —
Matthew DeVries - Best Practices Construction LawAs a construction lawyer, contractor licensing is a very key aspect of my practice. This can include new contractor applications, increase or changes in monetary limits or license classifications, change in ownership or qualifying agent , and, of course, licensing violations.
The recent decision in Incident365 Florida, LLC v. Ocean Pointe V Condominium Association serves as an important reminder for general contractors and subcontractors regarding the significance of proper licensing and thorough contract review in disaster recovery and construction services.
Case Overview
In this case, Incident365 Florida, LLC entered into disaster recovery agreements with several condominium associations (“Associations”) following Hurricane Irma. The agreements involved various tasks such as water damage mitigation, dehumidification, and the removal of unsalvageable materials. However, Incident365 lacked the appropriate contractor’s license when performing the work, which became a focal point in the dispute when the Associations refused to pay the remaining balance of $1 million, citing the absence of the required licensure.
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Matthew DeVries, BuchalterMr. DeVries may be contacted at
mdevries@buchalter.com
Automated Weather Insurance Could Offer Help in an Increasingly Hot World
July 10, 2023 —
Michelle Ma - BloombergCarlos José Báez experienced the full brunt of Hurricane Maria when it made landfall in Puerto Rico as a catastrophic storm in 2017.
The auto paint shop owner, who lives in Aguas Buenas, Puerto Rico, saw his home badly damaged by Maria’s ferocious winds and rain. Despite submitting claims to his homeowner’s insurance policy for over $25,000, Báez ultimately received a payout of $11,000.
“We had a lot of property damage and insurance, but they didn’t want to pay,” Báez said in an interview in Spanish.
More than
$1.6 billion in insurance claims remained unresolved more than two years after Maria while others were denied completely. The latter happened to Jonathan González’s mother, who waited nearly a year for an adjuster to come take photos of water damage and a broken wheelchair ramp only for the claim to be denied six months later.
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Michelle Ma, Bloomberg
A New Hope - You Now May Have Coverage for Punitive Damages in Connecticut
February 15, 2018 —
Stella Szantova Giordano – SDV BlogOn December 19, 2017, the Connecticut Supreme Court released its decision in Nationwide Mutual Ins. Co. v. Pasiak. The decision is significant for two reasons: 1) it clarifies the amount of proof an insurer needs to determine whether an exclusion to coverage applies; and 2) it found that where an insurance policy expressly provides coverage for an intentional act such as false imprisonment, common-law punitive damages are also covered.
Underlying action
The underlying action proves that real life is often stranger than fiction. Ms. S worked as an office help for a construction company owned by Mr. P, which operated out of his home. Ms. S was working alone in the home office, when an armed, masked intruder entered the office, tied her hands, gagged and blindfolded her and, pointing a gun to her head, threatened to kill her family if she did not give him the combination to a safe in the home. As this was happening, Mr. P entered the office, unmasked the intruder, and discovered it was his lifelong friend. After Ms. S was untied, she asked to leave, but Mr. P told her to stay. She was not allowed to leave for several hours as Mr. P made her accompany him to an errand. Ms. S sued Mr. P for false imprisonment, among other things. The trial court awarded her compensatory and punitive damages. Insurance coverage for the underlying judgment is at the heart of the Pasiak case.
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Stella Szantova Giordano, Saxe Doernberger & Vita, P.C.Ms. Szantova Giordano may be contacted at
ssg@sdvlaw.com
Forum Selection Provisions Are Not to Be Overlooked…Even On Federal Projects
September 16, 2024 —
David Adelstein - Florida Construction Legal UpdatesForum selection provisions are NOT to be overlooked. Ever. Treat them seriously. Even on federal projects where there is a Miller Act payment bond. Consider forum selection provisions on the front end when negotiating your contract.
In a recent opinion, U.S. f/u/b/o Timberline Construction Group, LLC vs. Aptim Federal Services, LLC, 2024 WL 3597164 (M.D.Fla. 2024), a joint venture prime contractor was hired by the federal government to build a temporary housing site. The joint venture prime contractor obtained a Miller Act payment bond. The joint venture then entered into a subcontract with one of its joint venture members and the member-subcontractor then engaged a sub-subcontractor. The sub-subcontractor claimed it was owed $3.5 Million and sued the member-subcontractor, as well as the prime contractor’s Miller Act payment bond, in the Middle District of Florida. The member-subcontractor and the Miller Act payment bond sureties moved to transfer venue to the Middle District of Louisiana pursuant to a forum selection clause in the contract between the sub-subcontractor and the member-subcontractor. The contract provided that the exclusive venue would be a United States District Court located in Louisiana.
Forum selection provisions are analyzed in federal court under 28 U.S.C. 1404(a): “For the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought or to any district or division to which all parties have consented.” U.S. f/u/b/o Timberline, supra at *2. A forum selection provision is presumptively valid and given controlling weight. Id. (quotations and citations omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Pennsylvania Commonwealth Court Holds that Nearly All Project Labor Agreements are Illegal
February 18, 2019 —
Wally Zimolong - Supplemental ConditionsIn what is nothing short of a monumental decision, on January 11, 2019, the Pennsylvania Commonwealth Court in Allan Myers L.P. v. Department of Transportation ruled that nearly all project labor agreements in Pennsylvania are illegal under the Commonwealth’s procurement code.
What are Project Labor Agreements?
In short, Project Labor Agreements (PLAs) are pre-hire agreements that set the working conditions for all employees of contractors working on a construction project. Typically, a PLA is entered into between an public or private construction project owner and certain local building trade unions. PLAs require the use of union labor that is to be hired exclusively through the hiring halls of the unions who are parties to the PLA. PLAs are controversial because, among other reasons, while not expressly excluding non-union contractors from performing work on the project, they require non-union firms to use union members instead of their regular employees.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
White and Williams Announces the Election of Five Lawyers to the Partnership and the Promotion of Five Associates to Counsel
February 16, 2016 —
White and Williams LLPWhite and Williams is proud to announce that Meredith Bieber, Eric Hermanson, Timothy Martin, Brian Tetro and Debra Weinrich have been elected to the partnership. The firm has also promoted Alan Charkey, Michael DiFebbo, William Doerler, Justin Fortescue and Stephen Milewski from associate to counsel.
The newly elected partners and promoted counsel represent the wide array of practices that White and Williams offers its clients, including construction, finance, healthcare, insurance coverage, product liability, real estate, reinsurance, and subrogation. These accomplished lawyers have earned this elevation based on their contributions to the firm and their practices.
“We are delighted to elect these five lawyers to the partnership and promote five exceptional associates to counsel. Those included in these promotions represent the breadth of services and the deep bench that we have to offer at White and Williams,” said Patti Santelle, Managing Partner of the firm. “The election of our new partners and promotion of our new counsel is a reflection of their success and dedication as well as the continued health of the firm.”
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New LG Headquarters Project Challenged because of Height
January 24, 2014 —
Beverley BevenFlorez-CDJ STAFFThe new LG headquarters project in Englewood Cliffs, New Jersey, has been challenged by various environmental groups because of what the groups see “as a blight on the Hudson River landscape,” according to the New York Times. The problem isn’t the building itself, but the proposed height of the tower: LG “plans to construct eight stories, 143 feet total, in an area previously zoned for a maximum of 35 feet. The height restriction was first lifted through a variance, which has been challenged in State Superior Court in one of two lawsuits filed to protect the view. Subsequently the land was rezoned to allow for a taller building.”
Robert F. Kennedy Jr., the Natural Resources Defense Council, and a New Jersey conservation group are continuing to fight against the removal of the height restriction. “This is like if somebody tried to build a high-rise next to Yellowstone,” Mr. Kennedy said in an interview with the New York Times. “It’s a national issue.”
However, there is also local support for this project, “which LG has said will be environmentally sensitive and produce jobs,” reported the New York Times.
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