Cambridge Massachusetts Building Expert Directory

California Supreme Court Rejects Third Exception to Privette Doctrine

July 03, 2022 — Lewis Brisbois
Walnut Creek, Calif. (May 25, 2022) - In Gonzalez v. Mathis (August 19, 2021) 12 Cal. 5th 29, the California Supreme Court considered whether to create a third exception to the Privette Doctrine specific to known hazards on a worksite, when a contractor cannot remedy the hazard by taking reasonable safety precautions to protect against it. Privette Background Under the Privette Doctrine, the hirer of an independent contractor generally cannot be liable for injuries sustained by the independent contractor or its employees while on the job. This is due to the “strong presumption” that the hirer delegates all responsibility for workplace safety to the independent contractor. See Privette v. Superior Court (1993) 5 Cal. 4th 689. Since the Privette ruling in 1993, the California Supreme Court has identified two circumstances in which the presumption may be overcome. First, the hirer may be liable when it retains control over any part of the independent contractor’s work and negligently exercises that retained control in a manner that affirmatively contributes to the injury. Hooker v. Dept. of Transportation (2002) 27 Cal. 4th 198, 213. Second, a landowner who hires an independent contractor may be liable if the landowner knew, or should have known, of a concealed hazard to the property that the contractor did not know of and could not have reasonably discovered, and the landowner failed to warn the contractor of the hazard. Kinsman v. Unocal Corp. (2005) 37 Cal. 4th 659, 664. Here, in the Gonzalez case, the court considered whether a landowner could be liable for known hazards on the property. Read the court decision
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Reprinted courtesy of Lewis Brisbois

Court of Appeals Rules that HOA Lien is not Spurious, Despite Claim that Annexation was Invalid

March 27, 2019 — Jesse Howard Witt - The Witt Law Firm
Today, the Colorado Court of appeals reversed a order that had deemed a homeowner association’s lien to be spurious. The case arose after a developer approved a property owner’s application to annex additional real estate to a community in 1999. Several years later, the developer repurchased the property through a foreclosure sale. Despite its prior approval of the annexation, the developer refused to pay community maintenance assessments, which prompted the association to record a lien under its covenants and a statutory provision of the Colorado Common Interest Ownership Act (CCIOA). The parties remained in a standoff until 2016, when the Colorado Supreme Court announced two decisions that adopted a stricter standard for annexing property into communities subject to CCIOA. Relying on this new authority, the developer at Stroh Ranch argued that the 1999 annexation was no longer valid. The district court agreed and declared the association’s lien to be spurious. Reprinted courtesy of Jesse Howard Witt, Acerbic Witt Mr. Witt may be contacted at www.witt.law Read the full story... Read the court decision
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SIG Earnings Advance 21% as U.K. Construction Strengthens

August 13, 2014 — Benjamin Katz – Bloomberg
SIG Plc (SHI) earnings surged 21 percent in the first half as the distributor of building products benefited from a strengthening recovery in the U.K. housing market as well as procurement savings. Underlying operating profit rose to 47.8 million pounds ($80 million) from 39.6 million pounds a year earlier, the Sheffield, England-based company said in a statement today. Sales in the U.K. and Ireland from continuing operations climbed 14 percent to 650 million pounds, offsetting flat revenue in continental Europe. “Trading conditions in the U.K. have continued to gather momentum, led by the revival in the housing market,” Chief Executive Officer Stuart Mitchell said in the statement. “The group’s first-half performance and progress on its strategic initiatives provide a strong base on which to achieve its full-year expectations.” Read the court decision
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Reprinted courtesy of Benjamin Katz, Bloomberg
Mr. Katz may be contacted at bkatz38@bloomberg.net

The Courts and Changing Views on Construction Defect Coverage

October 02, 2013 — CDJ STAFF
There have been changes recently in how courts interpret commercial general liability policies. Writing for Claims Journal, Burke Coleman, who is legal counsel and Compliance Manager for Demotech, looks at five recent cases and how they show changing views of CGL policies and construction defect claims. He notes that the Ohio Supreme Court concluded that “defective construction itself does not trigger coverage.” The court’s view in Westfield Ins. Co. v. Custom Agri Systems, Inc. was that a CGL policy does not protect contractors from every risk, but instead covers damage to other property that occur due to its work. But, conversely, the Georgia Supreme Court found that construction defect claims could be covered under a commercial general liability policy, noting that “the limits of coverage do not have to be found in the word ‘occurrence,’ inasmuch as the other words of the insuring agreement — as well as the policy exclusions — have their own roles to play in marking the limits of coverage.” This decision was reached in Taylor Morrison Services v. HDI-Gerling America. The Connecticut Supreme Court also concluded that defective construction could trigger coverage from a CGL policy, however, as Mr. Coleman notes, “only damage to non-defective property may be entitled to coverage.” He concludes that the North Dakota Supreme Court “has taken an even broader approach to the issue.” That court found that construction defects were covered “if the faulty work was unexpected and unintended.” Finally, the Supreme Court of Appeals of West Virginia held that faulty work can be property damage. He notes “the policy at issue included a ‘your work’ exclusion that excluded coverage for work performed by the insured, but subcontractors were excepted from the exclusion.” However, another clause excluded work performed on the behalf of the insured. Read the court decision
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NYC Developer Embraces Religion in Search for Condo Sites

October 15, 2014 — Oshrat Carmiel – Bloomberg
Extell Development Co., the New York builder that set off a luxury residential construction boom with its One57 project, is expanding its reach on Manhattan’s west side with a pending purchase of a synagogue and a plan to redevelop a Baptist church. Extell is in advanced talks to buy the Congregation Habonim synagogue at 44 W. 66th St. in a deal valued at $75 million, with plans to build condominiums on the site, according to documents the synagogue filed in New York State Supreme Court seeking permission for a sale. Extell also is negotiating with Calvary Baptist Church for a potential project at its 123 W. 57th St. site, on the same block as One57, the church’s 2014 annual report shows. Religious institutions across New York are pursuing real estate sales as land prices escalate. Manhattan development sites sold for an average of $657 a square foot in the third quarter, up 29 percent from a year earlier and a record for the period, Massey Knakal Realty Services said this month. Three purchases completed in the quarter were for more than $1,000 a square foot, the firm’s data show. Read the court decision
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Reprinted courtesy of Oshrat Carmiel, Bloomberg
Ms. Carmiel may be contacted at ocarmiel1@bloomberg.net

Waive It Goodbye: Despite Evidence to the Contrary, Delaware Upholds an AIA Waiver of Subrogation Clause

April 19, 2022 — Lian Skaf - The Subrogation Strategist
Subrogation professionals have always been looking for ways to defeat onerous waiver of subrogation provisions in contracts signed by insureds. However, even when contracts are unsigned, if there is intent when the contract is made – usually long before a loss occurs – a waiver of subrogation can doom what otherwise may have been a strong case. The Superior Court of Delaware considered such a scenario to determine whether a waiver of subrogation provision applied to a multimillion-dollar subrogation case. In State of Delaware Insurance Coverage Office and Factory Mutual Insurance Co., both as subrogee of the University of Delaware v. DiSabatino Construction Co., Schlosser & Associates Mechanical Contractors, Inc. and V.E. Guerrazzi, Inc., C.A. No. N19C-08-080, 2022 Del. Super. LEXIS 108 (March 17, 2022), the court granted the defendants’ motions for summary judgment, holding that the plaintiffs’ claims were barred by a waiver of subrogation provision in the underlying contract. Thus, the court held that the plaintiffs could not pursue the defendants in their suit to recover damages as a result of a fire. The court specifically denied the plaintiffs’ argument that since the contract was not signed and another “short form” version was later used the waiver of subrogation provision should not apply. Read the court decision
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Reprinted courtesy of Lian Skaf, White and Williams LLP
Mr. Skaf may be contacted at skafl@whiteandwilliams.com

The Five-Step Protocol to Reopening a Business

August 03, 2020 — Amy R. Patton & Rana Ayazi - Payne & Fears
Over the past few months, guidance on how to create a safer, low-risk workplace has frequently changed. Fortunately, the state of California has finally reached a point where comprehensive and concrete advice is now available. On June 24, 2020, the California Statewide Industry Guidance to Reduce Risk website was updated. In addition to providing industry-specific guidance and opening checklists for approximately 40 different industries, the website now unambiguously requires all businesses—regardless of which “phase” they reopen—to follow a five-step protocol (as described in greater detail throughout this article):

Perform a detailed risk assessment and create a site-specific protection plan.
Train employees on how to limit the spread of COVID-19. This includes how to screen themselves for symptoms and when to stay home.
Set up individual control measures and screenings.
Put disinfection protocols in place.
Establish physical distancing guidelines

Reprinted courtesy of Amy R. Patton, Payne & Fears and Rana Ayazi, Payne & Fears Ms. Patton may be contacted at arp@paynefears.com Ms. Ayazi may be contacted at ra@paynefears.com Read the court decision
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Florida Former Public Works Director Fined for Ethics Violation

April 09, 2014 — Beverley BevenFlorez-CDJ STAFF
Hiram Siaba, formerly Miami Lake, Florida’s public works director, has been fined for allegedly violating “an ethics ordinance that prevents public employees from doing business with former employers for a two-year period,” according to the Miami Herald. A few months prior to taking the job with the city, Siaba had worked part-time for Ballarena Construction. Siaba awarded Ballarena Construction “more than 10 projects that fell below the $25,000 threshold for awarding contracts without going to the Town Council for approval.” Ballarena had also been awarded a million-dollar youth center project, which “came to a halt last year” when town officials alleged that structural defects were discovered during an inspection. Miami Lakes is currently negotiating with Ballarena’s surety company to attempt to finish the project. Read the court decision
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