More Hensel Phelps Ripples in the Statute of Limitations Pond?
February 03, 2020 —
Christopher G. Hill - Construction Law MusingsAs is always the case when I attend the Virginia State Bar’s annual construction law seminar, I come away from it with a few posts on recent cases and their implications. The first of these is not a construction case, but has implications relating to the state project related statute of limitations and indemnification issues for construction contracts brought out in stark relief in the now infamous Hensel Phelps case.
In Radiance Capital Receivables Fourteen, LLC v. Foster the Court considered a waiver of the statute of limitations found in a loan contract. The operative facts are that the waiver was found in a Continuing Guaranty contract and that the default happened more than 5 years prior to the date that Radiance filed suit to enforce its rights. When the defendants filed a plea in bar stating that the statute of limitations had run and therefore the claim was barred, Radiance of course argued that the defendants had waived their right to bring such a defense. The defendants responded that the waiver was invalid in that it violated the terms of Va. Code 8.01-232 that states among other things:
an unwritten promise not to plead the statute shall be void, and a written promise not to plead such statute shall be valid when (i) it is made to avoid or defer litigation pending settlement of any case, (ii) it is not made contemporaneously with any other contract, and (iii) it is made for an additional term not longer than the applicable limitations period.
The Circuit Court and ultimately the Supreme Court agreed with the defendants. In doing so, the Virginia Supreme Court rejected arguments of estoppel and an argument that a “waiver” is not a “promise not to plead.”
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Connecticut Answers Critical Questions Regarding Scope of Collapse Coverage in Homeowners Policies in Insurers’ Favor
February 10, 2020 —
Kevin Sullivan - Traub LiebermanNationwide, homeowners’ insurers routinely face foundation wall collapse claims. But in Connecticut, where at least 30,000 homes are believed to have been constructed in the 1980s and 1990s with defective concrete, the scope of homeowners insurance for collapse claims has been a closely watched issue. In Jemiola v. Hartford Casualty Insurance Co., 2019 WL 5955904 (Conn. Nov. 12, 2019), the Supreme Court of Connecticut held that a collapse coverage grant requiring “an abrupt falling down or caving in of a building… with the result that the building… cannot be occupied for its intended purpose” is unambiguous and enforceable.
In Jemiola, the insured homeowner purchased her home in 1986 and insured it continuously with the same insurer. In 2006, the homeowner noticed cracking in a basement wall, and was informed that the cracking likely resulted from defective concrete used in the construction of the home. The homeowner made a claim under her policy’s collapse coverage, which the insurer denied because the cracking did not compromise the structural integrity of the foundation walls. In the resulting lawsuit, the insured’s expert opined that the defective concrete substantially impaired the foundation walls’ structural integrity, but that this impairment did not commence until 2006 when the homeowner first noticed the cracking. Accordingly, the court analyzed coverage under the collapse coverage grant in effect in 2006, which defined collapse to mean “an abrupt falling down or caving in of a building… with the result that the building… cannot be occupied for its intended purpose.”
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Kevin Sullivan, Traub LiebermanMr. Sullivan may be contacted at
ksullivan@tlsslaw.com
In Phoenix, Crews Thread Needle With $730M Broadway Curve Revamp
July 31, 2024 —
Scott Blair - Engineering News-RecordMotorists scrambling to dart across three lanes of traffic when merging onto the freeway. Vehicles slowing to a crawl due to extremely curved exit ramps. Commuters enduring agonizing backups as three freeways converge in a tight footprint. Bicyclists and pedestrians sweating through long detours to traverse freeways.
Reprinted courtesy of
Scott Blair, Engineering News-Record
Mr. Blair may be contacted at blairs@enr.com
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Where There's Smoke...California's New Emergency Wildfire Smoke Protection Regulation And What Employers Are Required To Do
August 26, 2019 —
Michael Studenka – Newmeyer DillionCalifornia employers need to pay heed to the recently announced California Division of Occupational Safety and Health Standards Board (Cal/OSHA) emergency regulation related to their duty to protect employees from the potential harm caused by wildfire smoke. As of July 29, 2019, employers are required to actively monitor their local Air Quality Index (AQI) and take steps to protect their employees from the harmful particulate matter contained within wildfire smoke.
Which Workplaces Are Impacted?
The regulation applies to all workplaces exposed to wildfire smoke with an AQI level of 151 or greater (ranging from "unhealthy" to "hazardous"). "Exposed" workplaces are those that are not in enclosed buildings, structures, or vehicles with mechanical ventilation and the ability to close all windows and doors. Outdoor occupations including construction, agriculture, landscaping, maintenance, commercial delivery, and others that expose the worker to the outside air for more than one hour will be the most impacted by this new regulation, although firefighters engaged in fighting wildfires are expressly exempt from the statute.
What If I Have A Potentially Exposed Workplace?
Employers with outdoor workplaces that are exposed to wildfire smoke are required to monitor the AQI before each shift, and "periodically throughout the day," all to ensure that the Air Quality Index for PM2.5 (particulate matter with an aerodynamic diameter of 2.5 micrometers or smaller) remains below 151. This can be done by visiting certain governmental websites, including U.S. Environmental Protection Agency's AirNow website (www.airnow.gov), which allow for regular email alerts to be issued to the employer. An employer with a potentially exposed workplace must also set up a communication system capable of communicating to all affected employees (in a language readily understood) the status of wildfire smoke hazards. The communication system must also provide the employees a process to inform the employer of worsening air quality and/or any adverse symptoms that they may be experiencing (e.g., asthma or chest pain).
Finally, employers are required to add to their Injury and Illness Protection Program (IIPP) the provision of effective training and instruction (i.e., approximately 15 minutes) regarding:
- the health effects of wildfire smoke;
- the right to obtain medical treatment without fear of reprisal;
- how employees can obtain the current AQI for PM2.5;
- the requirements of this regulation;
- the employer's communication system regarding wildfire smoke;
- the employer's methods for protecting employees from wildfire smoke;
- the importance, limitations, and benefits of using a respirator when exposed to wildfire smoke; and
- the proper use and maintenance of respirators.
The Required Provision of Respiratory Protective Equipment
Employers with exposed workplaces are required to provide effective NIOSH-approved respirators (e.g., N95 filtering facepiece respirators) when AQI for PM2.5 levels are 151-200 (unhealthy), 201-300 (very unhealthy), or 301-500 (hazardous). The N95 respirator typically costs less than a dollar per mask and can be easily purchased online. Employers are also required to clean, store, and maintain these respirators for times of need. Employees are free to decide whether to use a respirator when the AQI for PM2.5 level is between 151-500, although employers must be prepared to offer the equipment at an AQI level of 151 or higher. Use of the respirator by an employee exposed to an AQI for PM2.5 level that exceeds 500, however, is required by law.
What Should Potentially Exposed Employers Do Now?
Employers should immediately begin supplementing their IIPP platforms to include this regulation's prescribed training regarding wildfire smoke. Companies should also develop an adequate monitoring and communication plan regarding wildfire smoke hazards and effectively train their supervisors on the same. Finally, acquiring an adequate supply of N95 filtering respirators now will help ensure that employers are prepared for the next wildfire.
Michael Studenka is a partner in Newmeyer Dillion's Labor & Employment practice group. His practice focuses on the life cycle of Employment law. Mike advises and trains companies on proactive measures to keep them protected and in compliance, and leverages his significant trial experience when faced with litigation. You can reach out to him at michael.studenka@ndlf.com.
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Construction Defect Lawsuits May Follow Hawaii Condo Boom
January 23, 2013 —
CDJ STAFFHawaii is having a bit of a building boom and with this, as Honolulu Civil Beat points out, comes a boom in construction defect litigation, noting that “if past experience is any indicator, the wave of construction will likely be followed by a surge in complex and, for attorneys at least, profitable litigation.” The article provides plenty of evidence to back up that assertion.
Defect claims are already resulted in a settlement at Pinnacle Honolulu, a 37-unit luxury condominium project. The owners received a $2.4 million settlement after building code violations were discovered, including fire partitions that either were not fully extended or were breached in some fashion.
Meanwhile, the owners of the Koolani Condominiums are still trying to collect on their $12 million arbitration award related to problems in the water system. Another luxury condominium project, the Hokua Condominiums, also has had problems with flooding from water pipes.
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Designers “Airpocalyspe” Creations
May 19, 2014 —
Beverley BevenFlorez-CDJ STAFFBlaine Brownell in Architect Magazine discussed how recently some designers have created items to deal with urban pollution, however, the creations themselves are more politically-charged than practical.
Brownell lists recent examples of architects and designers “perverse” creations: “Notable smog-inspired works include the Aegis Parka, a protective jacket created by Dutch design studio Nieuwe Heren; a palladium dichloride coat that changes color in the presence of carbon dioxide emissions and is designed by London-based artist Lauren Bowker; and R&Sie(n)’s ‘Dustyrelief’ building in Bangkok, designed to collect atmospheric dust via an electrostatically-charged facade.”
“Perhaps such proposals—and the disarming irony they conjure—will motivate the changes necessary to clean up our act,” Brownell concluded.
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Eight Ways to Protect a Construction Company Before a Claim Is Filed
November 04, 2019 —
Mary Bacon - Construction ExecutiveClaims are inevitable in the construction industry. They can take on a life of their own and come with the burden of legal fees, wasted executive time and a possible judgment. Too often the only winners are the lawyers.
TIPS FOR PROTECTING MANAGEMENT AND THE BUSINESS BEFORE A CLAIM IS FILED
- Respect the business entity’s corporate structure. First and most importantly, respect the business entity’s corporate form. Legal entities have certain formalities like filing an annual list of officers, maintaining separate bank accounts, conducting certain meetings and following bylaws, etc. Respect these formalities. Failure to follow them exposes the owner to personal liability for company debts. And while a business claim has the potential to wipe out a business, owners should not risk having their personal assets on the line as well.
- Get a good contract. In most instances, a contract governs what happens and who is responsible for payment associated when a certain issue or dispute arises. A clear, well-written contract can often avoid a dispute or liability for a dispute. Actively participate in the contract negotiation and drafting process to make sure each party’s role and responsibilities are clearly accounted for.
- Make friends with clients. While it is true that “business is business,” people are often fairer and more willing to work towards a solution for people they are friends with. In most cases, friends will help friends in ways that people would not help mere business associates. When encountering a problem on a job, a friend may be willing to help achieve a more favorable outcome.
Reprinted courtesy of
Mary Bacon, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Ms. Bacon may be contacted at
mbacon@spencerfane.com
Just Because I May Be An “Expert” Does Not Mean I Am Giving Expert Testimony
January 17, 2022 —
David Adelstein - Florida Construction Legal UpdatesOn a construction project, it’s hard to argue that the involved parties — whether an architect, engineer, contractor, subcontractor, developer, etc. — are not experts in their field, i.e., they all some scientific, technical, or specialized knowledge or skill particular to their industry. However, this does NOT mean when they testify in trial, at an arbitration, or at a deposition regarding the construction project they are offering expert opinions / testimony as it pertains to that project. Testifying as to facts based on personal knowledge or involvement on a project makes you a fact witness and is different than evaluating and rending an after-the-fact opinion as to the work of others. This does not minimize your knowledge or expertise; it simply means that relative to the construction project you are involved with, your testimony is that of a fact witness and not of an expert. (It is possible to wear both the fact witness and expert witness hat, but that depends on your subsequent role in the litigation or arbitration.)
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
