Texas Shortens Cut-Off Date for Suits Against Homebuilders Who Provide a 6-Year Written Warranty
June 26, 2023 —
Kim Altsuler - Peckar & Abramson, P.C.Summary of the new law as it pertains to builders of new homes:
The existing 10-year statute of repose for builders of new homes (the ultimate cut-off date for filing suit) has been shortened to 6 years if the builder provides a 1-2-6 written warranty (1-year workmanship and materials; 2-year plumbing, electrical and HVAC; 6-year structural).
Extended time to bring suit if written claim presented during the period of repose:
If a written claim for damages, contribution, or indemnity is presented to the builder during the applicable limitations period and the 6-year statute of repose applies, the time to sue is extended one year from the date the claim is presented. In practical effect, this means that if a written claim is presented and the statute of repose expires before suit is filed, suit may still be filed provided it is within one year of the date the written claim was made.
When the new law goes into effect:
The new law is effective as of June 9, 2023 and applies to suits commenced on or after that date. However, if the contract under which the claim is brought was entered into before June 9, 2023, the former 10-year version of the statute of repose applies. In other words, the statute applies to contracts entered into on or after June 9, 2023, if the contract has at least a 1-2-6 warranty.
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Kim Altsuler - Peckar & Abramson, P.C.Ms. Altsuler may be contacted at
kaltsuler@pecklaw.com
OSHA: What to Expect in 2022
December 20, 2021 —
Stephen E. Irving - Construction ExecutiveCOVID-19 created great upheaval throughout the economy and the legal compliance world as well. The pandemic has been a great disruptor and has brought rules, regulations and related agency guidance that have served to overwhelm even the most conscientious and attentive employer. The welcomed arrival of COVID-19 vaccines, and now the perhaps less welcome OSHA vaccine mandate, simply add to an employer’s compliance burden.
While OSHA is busy attempting to implement its vaccine/testing mandate, it also has numerous other significant matters in the works of which employers in the construction industry should be aware. These include new rule drafting and several national and regional emphasis programs, which illustrate OSHA’s current priorities.
1. The Vaccine Mandate
Pursuant to a directive from President Biden, in October 2021, OSHA issued an emergency temporary standard implementing a mandate for all employers with more than 100 employees. This mandate requires that employees of such employers be vaccinated for COVID-19 or submit to regular testing. OSHA has also expressed interest in issuing a permanent standard and potentially expanding to include smaller employers.
Reprinted courtesy of
Stephen E. Irving, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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The Shifting Sands of Alternative Dispute Resolution
February 03, 2020 —
Tim Scully - Porter Law GroupIn California there are few tools which work to protect the employer, and California employers may have just lost another one. On October 10, 2019, Governor Gavin Newson signed into law AB 51, which bans the use of mandatory arbitration agreements in employment contracts.
More specifically, AB 51 adds Section 432.6 to the California Labor Code, making it unlawful to require a prospective employee, or current employee, to waive any right, forum, or procedure for a violation of any provision of the California Fair Employment and Housing Act (“FEHA”)(Part 2.8 (commencing with Section 12900) of Division 3 of Title 2 of the Government Code) or the California Labor Code, starting January 1, 2020. Additionally, an employer is also prohibited from threatening, retaliating or discriminating against, or terminating any applicant or employee who may choose not to sign a voluntary arbitration agreement.
Previously, an employer was able to require employees and prospective employees to agree to arbitration to resolve almost any and all disputes between the employee and the employer as a term of their employment. These terms were often the bulk of employers’ written contracts. Employers could have employees waive the right to a jury trial, the right to court costs, and other expenses, provided that the employer paid for the expenses of the alternative dispute resolution. The injured employees right to recover attorney’s fees was always a non-waivable right under the Labor Code. There were only a few actions which could not be arbitrated, the most prominent exception being the right to seek recovery under the Private Attorney’s General Action (PAGA).
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Tim Scully, Porter Law GroupMr. Scully may be contacted at
tscully@porterlaw.com
Colorado Abandons the “Completed and Accepted Rule” in Favor of the “Foreseeability Rule” in Determining a Contractor’s Duty to a Third Party After Work Has Been Completed
January 17, 2013 —
Brady Iandiorio, Higgins, Hopkins, McLain & Roswell, LLCIn a recent case, the Colorado Court of Appeals found that a contractor had a duty to a third party to warn it of a dangerous condition, even after the contractor had completed its work and the owner had accepted the contractor’s work. Collard v. Vista Paving Corp., -- P.3d --, 2012 WL 5871446 (Colo. App. 2012). While not an earth shattering or entirely new concept, the decision rendered in Collard directly accepted the foreseeability rule at the expense of the completed and accepted rule. Id.
In Collard, the City of Grand Junction (“the City”) hired Vista Paving Corp. (“Vista”) to construct two road medians according to the City’s plans and designs. On July 9, 2007, Vista began work on the medians. According to its contract with the City, Vista was responsible for traffic control during construction of the medians. On July 19, 2007, Vista completed its construction of both medians. On that date, the City’s project inspector conducted his final inspection of Vista’s work. The City’s inspector then told Vista that its work had been completed and that Vista was authorized to leave the site. Vista requested permission to remove the traffic control devices to which the City’s inspector agreed. Vista removed all of its traffic control devices.
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Brady IandiorioMr. Iandiorio can be contacted at
iandiorio@hhmrlaw.com
Washington School District Sues Construction Company Over Water Pipe Damage
August 27, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Yakima Herald reported that “[t]he Toppenish School District is suing a local construction company over a breach of contract that allegedly led to defective water pipes at one of its elementary schools, according to a complaint filed with the Yakima County Superior Court earlier this week.”
According to the complaint (as reported by the Yakima Herald), Toppenish officials alleged that the Huylar Construction Co. failed to install calcium silicate seals during the pipe installation. Furthermore, the complaint stated that last November, the school district discovered “’[e]xtensive corrosion and deterioration’ of the pipes.” Toppenish argued that failure to install the seals is a breach of contract.
Toppenish is suing for about $120,000. The Yakima Herald stated that a Huylar representative “could not be reached for comment.”
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Can I Be Required to Mediate, Arbitrate or Litigate a California Construction Dispute in Some Other State?
September 19, 2022 —
William L. Porter - Porter Law GroupIt is not uncommon in the construction industry for an out-of-state general contractor to include a provision in a subcontract requiring a California subcontractor to resolve disputes outside the state of California, even though the work is to be performed within California. Fortunately, most California subcontractors are immune from this tactic. California law generally prohibits clauses requiring subcontractors to travel outside California to resolve construction disputes.
California Code of Civil Procedure Section 410.42, [CCP 410.42 Link] renders “void and unenforceable,” any provision in a contract that “purports to require any dispute to be litigated, arbitrated, or otherwise determined outside this state,” so long as the contract is “between the contractor and a subcontractor with principal offices in the state, for the construction of a public or private work of improvement in this state.” Similarly, this law voids any similar contractual term that might prevent the California subcontractor from commencing an action, obtaining a judgment, or resolving its dispute in the courts of California.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Why A.I. Isn’t Going to Replace Lawyers Anytime Soon
April 18, 2023 —
Amir Kahana - Kahana FeldIn a recent article entitled, “A.I. Is Coming for Lawyers, Again” the New York Times explored the longstanding idea that the legal profession is most at risk of being disrupted by A.I. The article claimed that: “There are warnings that ChatGPT-style software, with its humanlike language fluency, could take over much of legal work.” And that: “Law is seen as the lucrative profession perhaps most at risk from the recent advance in A.I. because lawyers are essentially word merchants.”
The problem with these predictions is that they are based on a fundamental misunderstanding of what lawyers do, which is primarily to provide sound advice and formulate sophisticated strategy. All the wordsmithing in the world won’t make a bad case good, or vice versa. Lawyers do not have a Jedi mind trick. We analyze the facts, we make the best arguments possible under the circumstances, we advise our clients on their prospects, and we come up with a strategy for an optimal outcome, which almost always includes a path towards settlement. We are strategists and trusted advisors. Not wordsmithers.
This is not anything ChatGPT or current A.I. can do, or even come close to doing. And how do I know that? Because in a recent Wall Street Journal article, experts on self-driving cars explain that A.I. is nowhere close to being able to drive a car autonomously. In an article entitled “When Will Cars Be Fully Self-Driving?” the experts explain that the main impediment to fully autonomous vehicles is how dumb A.I. is. As one of the leading experts explains, fully autonomous cars “would require human-level artificial intelligence, and there is no commonly accepted theory on how to get there. As long as there is no human-level AI, autonomous mobility will be limited.”
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Amir Kahana, Kahana FeldMr. Kahana may be contacted at
akahana@kahanafeld.com
Contractual Setoff and Application When Performance Bond Buys Out of its Exposure
July 02, 2024 —
David Adelstein - Florida Construction Legal UpdatesThe theory of “setoff” is an important theory in construction disputes. Florida’s Fourth District Court of Appeal recently provided worthy discussion on contractual setoffs:
Setoffs in contract claims are governed by [Florida Statute] section 46.015(2), which provides that if a plaintiff has released “any person in partial satisfaction of the damages sued for, the court shall [setoff] this amount from the amount of any judgment to which the plaintiff would be otherwise entitled at the time of rendering judgment.” The setoff statute intends to prohibit plaintiffs from getting double recoveries.
A setoff requires that settling and non-settling parties be jointly and severally liable. The settled damages must also be the same damages for which the setoff is sought; stated differently, a setoff is not proper where the trial damages to be setoff are separate and distinct from the settled damages.
Close Construction, LLC v. City of Riviera Beach Utility Special District, 49 Fla.L.Weekly D1184d (Fla. 4th DCA 2024) (internal citations omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com