Touchdown! – The Construction Industry’s Winning Audible to the COVID Blitz
February 08, 2021 —
Bill Shaughnessy, Jones Walker, LLP - ConsensusDocsCOVID-19 has changed the way we live, work, play football, and build. As with all of society (and our football leagues and teams), the construction industry was impacted over the last year through the implementation of new safety protocols in response to COVID-19. While some construction projects were delayed or put on hold, much of the construction industry was fortunate to continue to build throughout the pandemic. Building under COVID-19 safety protocols led contractors to “call an audible” in order to make up for lost time and to save costs. In doing so, many contractors started incorporating or expanding the use of under-utilized tools, resources, capabilities, and technology such as pre-fabrication, and modular construction, while at the same time reexamining planning methods, monitoring critical schedule activities, and ways to better execute construction.
In many ways, the effects of COVID-19 safety protocols and measures implemented by contractors in the past year have led to more efficient and cheaper construction projects now and for the future. So, it is not surprising as we turn our calendars to 2021 that contractors can expect these tools, resources, and technologies to be utilized more in the years ahead, even once the pandemic subsides. This article highlights some of the “positive” effects of COVID-19 on projects and highlights several ways contractors attempted to increase efficiency and reduce costs in response to the pandemic.
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Bill Shaughnessy, Jones Walker, LLPMr. Shaughnessy may be contacted at
bshaughnessy@joneswalker.com
Death of Subcontractor’s Unjust Enrichment Claim Against Project Owner
April 12, 2021 —
David Adelstein - Florida Construction Legal UpdatesIn a previous article, I discussed a subcontractor’s
unjust enrichment claim against a project’s owner and the death of this equitable claim if the owner fully paid the general contractor or paid the general contractor for the subcontractor’s work. This can be best summarized from a very short 1995 opinion out of the Fourth District Court of Appeal: “Unjust enrichment is equitable in nature and cannot exist where payment has been made for the benefit conferred. [Owner] paid [General Contractor] the full amount of its contract for the construction project. Accordingly, there can be no unjust enrichment claim to support [Subcontractor’s] claim.” Gene B. Glick Co., Inc. v. Sunshine Ready Concrete Co., Inc., 651 So.2d 90 (Fla. 4th DCA 1995).
Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com
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Client Alert: Design Immunity Affirmative Defense Not Available to Public Entities Absent Evidence of Pre-Accident Discretionary Approval of the Plan or Design
April 15, 2014 —
R. Bryan Martin & Melinda M. Carrido – Haight Brown & Bonesteel LLPOn April 8, 2014, in Martinez v. County of Ventura, Case No. B24476, the Second Appellate District of the California Court of Appeal reversed the jury's defense verdict for the County of Ventura, holding that the County's evidence in support of its Design Immunity defense to a public property dangerous condition claim was insufficient as a matter of law.
Plaintiff filed suit against the County of Ventura (the "County") after sustaining paraplegic injuries when his motorcycle struck an asphalt berm abutting a raised drain (the top-hat drain system) on a road in the County. The drain system consisted of a heavy steel cover on three legs elevated eight to ten inches off the ground, with a sloped asphalt berm to channel water into the drain.
Plaintiff alleged that the top-hat drain system constituted a dangerous condition of public property pursuant to California Government Code section 835. Under this Section, a public entity is liable for "injury proximately caused by a dangerous condition of its property if the condition created a reasonably foreseeable risk of the kind of injury sustained, and the public entity had actual or constructive notice of the condition a sufficient time before the injury to have taken preventative measures." The jury found the top-hat drain system constituted a dangerous condition of public property.
Reprinted courtesy of
R. Bryan Martin, Haight Brown & Bonesteel LLP and
Melinda M. Carrido, Haight Brown & Bonesteel LLP
Mr. Martin may be contacted at bmartin@hbblaw.com; Ms. Carrido may be contacted at mcarrido@hbblaw.com
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Business Risk Exclusions Bar Faulty Workmanship Claim
December 21, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe manufacturer of roofing and waterproofing systems was unsuccessful in securing coverage for alleged faulty workmanship due to the "your work" and "your product" exclusions. Siplast, Inc. v. Emplrs Mut. Cas. Co., 2020 U.S. Dist. LEXIS 176539 (N.D. Texas Sept. 25, 2020).
Siplast was sued in New York by the Archdiocese for work done at Cardinal Spellman High School. The Archdiocese purchased a Siplast Roof System for the high school. Vema Enterprises installed the roof system. The roof system was covered by a guarantee.
After completion, school officials noticed water damage in the ceiling tiles throughout the school. A consultant hired by the Archdiocese concluded that the leaks were caused by the workmanship and the materials that were compromising the entire roof membrane and system. Siplast determined the guarantee was not applicable. The Archdiocese informed Siplast that it would repair the roof and hold Siplast liable for the costs. Siplast gave notice of the claim to Employers, but coverage was denied.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Federal Court Reiterates Broad Duty to Defend in Additional Insured Cases
April 22, 2024 —
Craig Rokuson - Traub LiebermanIn the recent case of
Travelers Indem. Co. of Am. v. Accredited Sur. & Cas. Co., No. 21-CV-7189 (FB) (JRC), 2024 U.S. Dist. LEXIS 44634 (E.D.N.Y. Mar. 13, 2024), the Federal District Court for the Eastern District of New York had occasion to consider an additional insured tender on behalf of a prime contractor, Archstone, to a subcontractor, Topline, who was named as a direct defendant in a New York labor law case. Even though Topline’s carrier put forth evidence that Topline was not negligent, the court held, under New York’s broad duty to defend, that Topline’s carrier owed a duty to defend the prime contractor.
Initially, the court was satisfied that a purchase order, signed only by Topline and not Archstone, was binding on Topline. That purchase order specified that Topline agreed to name Archstone as an additional insured.
With respect to the duty to defend, the court found that it was enough that the underlying plaintiff alleged that all defendants, including Topline, were negligent in permitting a ladder that plaintiff was on to remain in a defective condition and in failing to foresee the existence of a hazard from the condition of the subject ladder.
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Craig Rokuson, Traub LiebermanMr. Rokuson may be contacted at
crokuson@tlsslaw.com
4 Breakthrough Panama Canal Engineering Innovations
October 11, 2017 —
Hobbes S. Sujith - Construction InformerThrough the rainforest of Central America stretches one of the seven wonders of the modern world. It’s the mother of all shortcuts – the Panama Canal. Over 300 million tons of cargo pass through its gates every year. Stretching through the heart of the Americans, this canal has changed the face of global trade. Ships traveling between the Atlantic and Pacific used to sail thousands of kilometers around Cape Horn. So in 1879 engineers planned to cut a channel through the Isthmus of Panama. And that, was going to become the history of Panama Canal engineering.
To understand how the Panama Canal can carry such a huge amount of cargo, we need to travel back in time to 17th century France. There, engineers building the Briare Canal (Canal de Briare) faced an big problem. How to make water flow up a hill?
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Hobbes S. Sujith, Construction Informer
Eleventh Circuit Finds No Coverage for Faulty Workmanship Claims
November 15, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe Eleventh Circuit affirmed the district court's grant of summary judgment to the insurer on the general contractor's claims for damages due to faulty workmanship. Tricon Dev. of Brevard v. Nautilus Ins. Co., 2021 U.S. App. LEXIS 27317 (11th Cir. Sept .10, 2021).
Tricon was the general contractor for a condominium project in Florida. Tricon hired a subcontractor to fabricate and install metal railings for the project. The subcontractor was insured by Nautilus under two CGL policies. The policies had endorsements to add Tricon as an additional insured.
The subcontractor fabricated some of the railings, but they had defects and damage. Further they were not installed properly and did not meet the project's specifications. Tricon found another manufacturer to fabricate new railings to satisfy the projects' requirements. Tricon agreed to pay the cost of removing the subcontractor's railings and fabricating and installing new ones. If submitted a claim to Nautilus to cover these costs.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Two Texas Cities Top San Francisco for Property Investors
October 22, 2014 —
Brian Louis – BloombergHouston and Austin are the most attractive U.S. markets for buying and developing real estate, topping San Francisco, as growth potential in the Texas cities draws investors from popular coastal areas, a survey shows.
The Northern California city ranked third, down from No. 1 last year, according to a report released today by PricewaterhouseCoopers LLP and the Urban Land Institute. Denver and Dallas-Fort Worth rounded out the five markets offering the best prospects for investors in 2015, the poll of more than 1,400 people in the real estate business shows. Manhattan slipped out of the top 10 to rank 14th.
Some non-coastal markets are drawing more property investors partly because they offer higher yields than places such as San Francisco and Manhattan, which led the recovery from the financial crisis. The smaller cities also are benefiting from employment growth and increasing numbers of people moving into urban centers, according to Mitch Roschelle, a partner and U.S. real estate advisory practice leader at PricewaterhouseCoopers in New York.
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Brian Louis, BloombergMr. Louis may be contacted at
blouis1@bloomberg.net