Court Denies Insured's Motion to Dismiss Complaint Seeking to Compel Appraisal
March 13, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe court denied the insured's motion to dismiss after the insurer filed suit to compel an appraisal. Allied Trust Ins. Co. v. Tsang, 2023 U.S. Dist. LEXIS 352 (E.D. La. Jan. 3, 2023).
The insureds reported damage to their property arising from Hurricane Ida. The insurer, Allied Trust, investigated and determined that the covered damage was $1,978.18, which was less that the policy's deductible. The insureds estimated that the covered damage was $135,270.78.
Allied Trust invoked the appraisal provision. Allied Trust later filed suit alleging the insureds failed to comply and participate in the appraisal. The insureds moved to dismiss the complaint as moot. In their motion, the insureds argued that because they were now complying with the appraisal clause, all relief sought by Allied Trust had either already occurred or was currently underway.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
PSA: Virginia DOLI Amends COVID Workplace Standard
October 18, 2021 —
Christopher G. Hill - Construction Law MusingsAs the governmental response to COVID-19 evolves, so do the various standards that apply to employers. Effective September 8, 2021, the Virginia Department of Labor and Industry superseded its earlier permanent workplace standard with a new standard.
In many ways, the new standard simplifies compliance because it gets rid of what I believed to be overly confusing workplace classifications into risk levels and simply applies the new standard to all workplaces regardless of how they would have been classified. Some key points to keep in mind regarding the new standard are the following (with the recommendation that all employers read and understand the text of the standard):
- Masks: All unvaccinated employees must wear masks in all public, common, or shared workspaces with certain exceptions. These exceptions include when an employee is alone in a room/office, when eating, certain medical conditions, and where it is important that the mouth can be seen (such as communication with the deaf). Vaccinated employees need not mask up unless working in a high or substantially transmission area per the CDC Data Tracker.
- Vaccination Requirement: As of now, the DOLI does not require employee vaccinations. However, employers will need to have a way to determine vaccination status to comply with other parts of the standard.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Cyber Thieves Phish Away a $735K Payment to a Minnesota Contractor
May 06, 2024 —
Richard Korman - Engineering News-RecordThe contractor's project manager asked for money due, $735,000 under Payment Application 13, to be sent by the owner electronically. "Hi Rick," the project manager, whose first name is Jalen, wrote in an email dated Aug. 15. "Can we have payments remitted electronically as we currently have numerous uncleared checks on hold?"
Reprinted courtesy of
Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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Delays in Filing Lead to Dismissal in Moisture Intrusion Lawsuit
September 09, 2011 —
CDJ STAFFThe Alabama Court of Civil Appeals has upheld a summary judgment in the case of Franklin v. Mitchell. Walter Mitchell, doing business as Southern Classic Construction built a new home for the Franklins. The Franklins moved into the home in October 2001. In April 2006 they discovered sagging floors in both the bathroom and kitchen. They contacted Mitchell who suggested the flooring might be defective. The Franklins spent eight months attempting to contact the flooring manufacturer.
In March 2007, the Franklins had the home inspected. The sagging was determined to be due to a loss of strength in the decking because of condensation from the air conditioning system. Air returns were not properly sealed and drawing moisture into the structure. There was mold on the decking and floor joints.
When Mitchell was contacted by the Franklins, he told them his one-year warranty had expired but had the HVAC subcontractor, Southern Mechanical Heating & Air (owned by Mitchell’s father, Jim Mitchell), look at the situation. SMHA replaced and braced subfloors. Later, they entered the crawl space to tape ducts, seal the air return, and insulate the air vent housing. The Franklins were not satisfied with the repairs, as not all the ducts were taped, nor were the air vent housings insulated.
Franklin complained to Walter Mitchell who again cited his one-year warranty. Jim Mitchell said he would not report complaints to his insurer, stating that the repairs were unnecessary, that the work had been done correctly in the first place, and it was only done at the request of Walter Mitchell.
In February 2009, the Franklins sued Walker Mitchell. Mitchell denied the claims, citing in part the statute of limitations. Mitchell also filed complaints against three subcontractors, including his father’s firm. Mitchell received a summary judgment as the case started after Alabama’s six-year statute of limitations.
The appeals court rejected the Franklin’s argument that the claim of damage did not start until they were aware it was due to a construction defect. The court noted that as Walter Mitchell was licensed as a “residential home builder, the statute the Franklins cite did not apply, as it concerns architects, engineers, and licensed general contactors.”
Nor did they feel that Mitchells’ claim that his warranty had expired were sufficient to override the statute of limitations, quoting an earlier case, “Vague assurances do not amount to an affirmative inducement to delay filing suit.” Their claim of subsequent negligent repairs was rejected because Mitchell did not direct the specific actions taken by his father’s firm.
Read the court’s decision…
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Location, Location, Location—Even in Construction Liens
October 28, 2015 —
Craig Martin – Construction Contractor AdvisorWe all know the importance of filing a construction lien within 120 days of your last work. Nebraska Construction Lien Act, § 52-137. But, equally, if not more important is filing the construction lien on the correct property.
Often times on a construction project, the exact address of the project may not be known. And, if there are a few buildings going up on the same general site, it is difficult to determine which property or building address you are working on.
Sometimes you can look at the contract. For example, the AIA family of documents lists the address on the first page. But, what if the wrong address is listed? What if the wrong owner is listed?
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Contractor Beware: Design-Build Firms Must Review Washington’s Licensing Requirements
October 16, 2018 —
John Krawczyk - Ahlers Cressman & Sleight PLLCDesign-build contracting is a method of project delivery where the contractor provides both architectural/design and building services to the owner. Yet rarely do firms perform both design and building work in equal measure. Rather, in many instances, firms perform the vast majority of their work on the building side while advertising and providing design services for smaller projects using in-house architects.
Regardless of the volume of design-build contracting a firm performs, any firms practicing this method of project delivery must be aware of Washington State’s registration requirement under RCW 18.08.420(1), and specifically the condition that a “designated architect” must serve as a partner, manager or director of the firm’s governing structure.
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John Krawczyk, Ahlers Cressman & Sleight PLLCMr. Krawczyk may be contacted at
john.krawczyk@acslawyers.com
FirstEnergy Fined $3.9M in Scandal Involving Nuke Plants
February 06, 2023 —
Annemarie Mannion - Engineering News-RecordHaving admitted to participating in the largest energy-involved bribery scandal in Ohio history, provider FirstEnergy Corp., based in Akron, has agreed to pay a $3.9-million fine for withholding lobbying and accounting information from the Federal Energy Regulatory Commission’s enforcement office.
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Annemarie Mannion, Engineering News-Record
Ms. Mannion may be contacted at manniona@enr.com
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Quick Note: Attorney’s Fees on Attorney’s Fees
June 13, 2022 —
David Adelstein - Florida Construction Legal UpdatesIn a recent
case, the appellate court held that the attorney’s fees provision in the contract was NOT broad enough to entitle the prevailing party to recover attorney’s fees for litigating the amount of attorney’s fees. This is known as “fees on fees” which is when you can recover your prevailing party attorney’s fees when you are fighting over the quantum that should be awarded to you as the prevailing party.
The attorney’s fees provision at-issue stated:
“In any lawsuit to enforce the Lease or under applicable law, the party in whose favor a judgment or decree has been rendered may recover its reasonable court costs including attorney’s fees from the non-prevailing party.”
Language similar to this language can be found in many contracts as a prevailing party attorney’s fees provision.
However, this provision was NOT broad enough to recover “fees on fees.” As explained in
this article, if this is a consideration, you can negotiate or include this provision into your construction contract by expanding the scope of the prevailing party attorney’s fees provision to clarify that it entitles the prevailing party to recover attorney’s fees in litigating the amount of attorney’s fees.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com