Hybrid Contracts for The Sale of Goods and Services and the Predominant Factor Test
February 15, 2021 —
David Adelstein - Florida Construction Legal UpdatesFlorida’s Uniform Commercial Code (also known as the UCC) applies to transactions for goods. “Goods” is defined by Article II of the UCC as “all things (including specially manufactured goods) which are movable at the time of identification to the contract for sale other than the money in which the price is to be paid, investment securities (chapter 678) and things in action.” Fla. Stat. s. 672.105(1).
The UCC does NOT apply to transactions for services. Transactions for services are governed by common law.
Oftentimes, transactions or contracts include BOTH goods and services. In this scenario, referred to as a hybrid contract, does the UCC or common law apply? In this scenario, courts apply the predominant factor test to determine whether the UCC or common law governs the transaction:
Whether the UCC or the common law applies to a particular hybrid contract depends on “whether the[ ] predominant factor, the [ ] thrust, the[ ] purpose [of the contract], reasonably stated, is the rendition of service, with goods incidentally involved (e.g., contract with artist for painting) or is a transaction of sale, with labor incidentally involved (e.g., installation of a water heater in a bathroom).” In such instances, the determination whether the “predominant factor” in the contract is for goods or for services is a factual inquiry unless the court can determine that the contract is exclusively for goods or services as a matter of law.
Allied Shelving & Equipment, Inc. v. National Deli, LLC, 154 So.3d 482, 484 (Fla. 3d DCA 2015) (citations omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
EPA Expands Energy Star, Adds Indoor airPLUS
February 05, 2015 —
Beverley BevenFlorez-CDJ STAFFBuilder Magazine reported that the EPA has added a new energy certification program, Indoor airPLUS. Builder Beazer Homes has “embraced the initiative,” according to Builder, and all of its homes in the Phoenix division is Indoor airPLUS certified. Brian Shanks, purchasing manager for Beazer, explained to builder about some of the additional requirements: “It requires some additional air-sealing techniques and other HVAC and ventilation things.” According to Builder, the indoor air quality program is designed to especially help those who suffer from respiratory issues.
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U.S. Homeowners Are Lingering Longer, and the Wait Is Paying Off
July 28, 2018 —
Jeremy Hill - BloombergHomeowners in the U.S. are holding on to their houses longer than they have in at least 18 years, and when they do sell, they’re reaping gains that haven’t been seen since before the housing crisis.
Those who sold in the second quarter did so after owning their homes for an average of 8.09 years, the longest stretch since Attom Data Solutions started tracking the statistic in 2000. The wait appears to be paying off: Second-quarter sellers recorded gains averaging $58,000 -- the most since the third quarter of 2007.
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Jeremy Hill, Bloomberg
Texas Supreme Court Authorizes Exception to the "Eight-Corners" Rule
February 28, 2022 —
Jared De Jong, Nathan A. Cazier & Scott S. Thomas - Payne & FearsFor decades, an insurer’s duty to defend under Texas law was determined exclusively by reviewing the insurance contract and the allegations of the complaint under the “eight-corners rule.” All of this changed last week when, in a long-awaited decision, the Texas Supreme Court ruled that courts may consider extrinsic evidence to determine the existence of coverage in certain limited situations. Monroe Guar. Ins. Co. v. BITCO Gen. Ins. Corp., No. 21-0232, 2022 WL 413940 (Tex. Feb. 11, 2022).
In Monroe, a drilling contractor was sued for damages arising out of the allegedly botched drilling of an irrigation well. The underlying lawsuit alleged that negligent drilling caused damage to surrounding farmland. However, the complaint did not allege when the damage occurred. The contractor’s insurers, BITCO General Insurance Corporation (“Bitco”) and Monroe Guarantee Insurance Company (“Monroe”) disputed whether Monroe owed a duty to defend. Although Bitco agreed to provide a defense, Monroe refused, arguing that the property damage happened before its policy period. Bitco sued Monroe for contribution. In the trial court, the insurers stipulated that a drill bit became stuck before Monroe’s policy incepted, a fact that would have supported Monroe’s “prior damage” defense. On summary judgment, though, the trial court ruled this stipulated fact could not be considered under Texas’ eight-corners rule. Monroe appealed, and the Fifth Circuit, which had previously endorsed an exception to the eight-corners rule under Northfield Insurance Co. v. Loving Home Care, Inc., 363 F.3d 523, 531 (5th Cir. 2004), certified the question to the Texas Supreme Court.
Reprinted courtesy of
Jared De Jong, Payne & Fears,
Nathan A. Cazier, Payne & Fears and
Scott S. Thomas, Payne & Fears
Mr. Jong may be contacted at jdj@paynefears.com
Mr. Cazier may be contacted at nac@paynefears.com
Mr. Thomas may be contacted at sst@paynefears.com
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Virginia General Assembly Helps Construction Contractors
June 10, 2015 —
Christopher G. Hill – Construction Law MusingsAs reported last week at the Virginia Real Estate, Land Use and Construction Law Blog (authored by my good friend Tim Hughes (@timrhughes)), the Virginia General Assembly has passed an amendment to the jurisdictional limitations of Virginia General District Courts. The new statute, going into effect July 1, 2011, increases the jurisdiction of these courts to $25,000 from the present level of $15,000.
Why is this a big deal? As a solo practitioner who represents contractors and subcontractors in cases big and small, this increase is a boon to my practice and the collect-ability of some debts. I think back to the numerous conversations I have had with clients who had bona fide claims for around $20,000. These conversations inevitably turned toward the cost of Circuit Court versus General District Court and whether it would be better to leave money out of the claim to avoid the ramped up attorney fee and filing costs (not to mention the time from filing to judgment). This conversation was especially relevant in the instance where the contracts did not contain an attorney fees provision.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Brazil's Detained Industry Captain Says No Plea Deals Coming
September 03, 2015 —
Sabrina Valle & Yasmine Batista – BloombergMarcelo Odebrecht, the most prominent executive who has been detained in Brazil’s largest corruption scandal, said he sees no reason to strike a plea bargain with authorities because he has nothing to reveal.
Odebrecht said in a congressional hearing Tuesday that he probably discussed with President Dilma Rousseff and her predecessor Luiz Inacio Lula da Silva the relationship between Odebrecht SA and Petrobras, the state-controlled oil producer at the center of the kickback investigation. It was a natural topic given the economic importance of his construction and engineering empire, he said. He declined to answer questions related to the criminal case, saying it is ongoing and he is unaware of the full extent of the accusations.
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Sabrina Valle, Bloomberg and
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Nevada Budget Remains at Impasse over Construction Defect Law
June 01, 2011 —
CDJ STAFFNegotiations for the Nevada state budget have stalled over proposals to amend the state’s construction defect laws. Assembly Republicans had offered changes to the law to make it friendlier to contractors; however, after a state Supreme Court ruling that the state could not move a local government entity’s funds into state coffers, pressure has increased on the governor to lift the expiration dates of taxes approved in 2009.
The Reno Gazette-Journal quotes John Madole, a construction industry lobbyist, “We agree with them that you have to address the issue of the attorney fees, and for all practical purposes, they are automatically awarded when anybody brings any kind of suit.”
Speaker of the Assembly, John Oceguera, a Democrat, has proposed a bill that “makes it absolutely crystal clear that the only time you get attorney's fees is if you're the prevailing party.”
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Environmental Law Violations: When you Should Hire a Lawyer
October 09, 2018 —
Bremer Whyte Brown & O’MearaEnvironmental law violations can have an enormous impact on your ongoing profitability. Environmental law is complicated and multifaceted, with laws at the local, state, and federal level often overlapping. In this article, we’ll discuss environmental law violations in the context of defending against an environmental law claim. In doing so, we’ll take a brief look at what environmental law is, and explore some environmental law violations cases. This should shed some light on the complex nature of environmental law litigation, and highlight the importance of securing legal representation with the scope and breadth of practice to wade into an environmental law violation case.
What is Environmental Law?
Before diving into specific environmental law violation cases, it is helpful to first provide a basic outline of what environmental law is and what different levels of environmental law exist in the United States. The most well-known environmental law exists at the federal level and is enforced by the Environmental Protection Agency (EPA). The EPA is responsible for enforcing directives that have been set forth by Congress over time. These include a variety of Acts, including the Clean Air Act and Clean Water Act.
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Bremer Whyte Brown & O’Meara