Condo Owners Suing Bank for Failing to Disclose Defects
January 17, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Option Owners Association Inc., Condo Owners in Lincoln, Nebraska, filed suit against Security First Bank, “alleging the bank failed to disclose ‘hidden defects,’” reported the Lincoln Journal Star. Alleged defects include defective siding, improperly installed siding, and defective flashing. The condo owners are seeking at least $644,000 which they claim is the “fair market value of the repairs needed to fix the alleged construction defects.”
When the Lincoln Journal Star asked Jim Wefso, general counsel for Security First Bank, to comment, he stated, “The bank doesn't feel it has any liability in the case.”
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EO or Uh-Oh: Biden’s Executive Order Requiring Project Labor Agreements on Federal Construction Projects
March 14, 2022 —
Nicole Stone, Jones Walker LLP - ConsensusDocsOn February 4, 2022, President Biden issued Executive Order (“EO”) 14063[1]. The EO requires that a Project Labor Agreement (“PLA”) be in place for any federal “large-scale construction projects” estimated at $35 million or more. To compete for or perform projects subject to the PLA requirement contractors must agree to be subject to the applicable PLA. For federal projects under $35 million or projects receiving federal financial assistance are not required by the EO to have PLA, but federal agencies will have discretion to require PLAs. The EO will not go into effect until after implementing regulations are finalized, probably after the beginning of June 2022.
Requiring PLAs on federal construction projects is a substantial shift from even the Obama Administration’s policy in favor of PLAs. Biden’s PLA EO will have an impact on federal contractors and likely industry repercussions beyond federal procurement. Only time and experience will tell whether those impacts will all be positive as the Biden Administration insists or will drive up construction costs and give unions more leverage than they have in the market as the critics insist.
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Nicole Stone, Jones Walker LLP (ConsensusDocs)Ms. Stone may be contacted at
nstone@joneswalker.com
Dreyer v. Am. Natl. Prop. & Cas. Co. Or: Do Not Enter into Nunn-Agreements for Injuries that Occurred After Expiration of the Subject Insurance Policy
January 20, 2020 —
Jean Meyer - Colorado Construction LitigationWhile Nunn-Agreements[1] may be appealing for both plaintiffs and defendants where an insurer unreasonably fails to defend a lawsuit, a recent opinion from The Honorable Marcia Krieger in the United States District Court of Colorado[2] (“Opinion”) demonstrates the importance of first confirming that there exists a viable insurance claim before proceeding with such a Nunn- Agreement.
The facts giving rise to the Opinion were as follows. In March 2015, a Homeowner couple (the “Homeowners”) suffered damages to their home resulting from a brushfire. Fortunately, the Homeowners were insured, they submitted their claim to their homeowners’ insurance carrier which was in effect at the time of the brushfire (the “Insurance Carrier”), and the Insurance Carrier paid the claim. Ostensibly as part of the Homeowners’ remediation efforts to their home they removed a large bush which left a hole in the ground. After paying the claim, in August 2015 the Insurance Carrier cancelled or elected not to renew the Homeowners’ policy. In October 2015, a repairman working on the Home (the “Repairman”) was injured after his ladder fell over allegedly because of the hole in the ground caused by the bush that had been removed.
As a result of injuries caused by the fall from the ladder, the Repairman brought suit against the Homeowners. In response to the Repairman’s claim, the Homeowners again tendered to their Insurance Carrier. This time, however, the Insurance Carrier denied coverage on the basis that the Repairman’s injuries occurred after the expiration of the relevant policy. Without insurance coverage, the Homeowner’s entered into a Nunn-Agreement with the Repairman, conceding liability, and assigning any claims they might have had against the Insurance Carrier in lieu of execution of any judgment against the Homeowners.
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Jean Meyer, Higgins, Hopkins, McLain & Roswell, LLCMr. Meyer may be contacted at
meyer@hhmrlaw.com
California Restricts Principles of “General” Personal Jurisdiction
April 01, 2015 —
Kristian B. Moriarty and R. Bryan Martin – Haight Brown & Bonesteel LLPIn BNSF Railway Company v. Superior Court (Kralovetz) (Filed 3/27/2015, No. B260798), the California Court of Appeal, Second District, held a Delaware railroad corporation, with its principal place of business in Texas, was not subject to “general” personal jurisdiction in California, despite California housing 8.1% of the corporation’s total workforce, accounting for 6% of the corporation’s revenue, and containing just under 5% of its total track mileage.
Plaintiff, Vicki Kralovetz, filed suit in California Superior Court against defendant, BNSF Railway Company (“BNSF”), and others, for wrongful death. Plaintiff contended her husband was exposed to asbestos products manufactured by BNSF in Kansas while working at a dismantling facility owned by BNSF’s predecessor in interest. Plaintiff claimed the exposure caused her husband to contract mesothelioma, which resulted in his death.
Reprinted courtesy of
Kristian B. Moriarty, Haight Brown & Bonesteel LLP and
R. Bryan Martin, Haight Brown & Bonesteel LLP
Mr. Moriarty may be contacted at mmoriarty@hbblaw.com
Mr. Martin may be contacted at bmartin@hbblaw.com
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Safety Guidance for the Prevention of the Coronavirus on Construction Sites
May 25, 2020 —
Heather Whitehead - Newmeyer DillionAlthough construction projects are generally allowed to proceed under most COVID-19 stay at home orders, owners and contractors need to know how to proceed safely on their construction sites. Not only do workers and others on site need to be protected, but implementation of these protocols is also critical to avoid potential liabilities. Last week, the California Department of Industrial Relations – Division of Occupational Safety & Health (CAL/OSHA) released guidance regarding safety and health procedures to prevent the spread of COVID-19 at construction sites. A link to the CAL/OSHA Safety and Health Guidance is provided here.
While the guidance states that it is not imposing any new legal obligations, it is imperative for businesses to not only be aware of these safety practices, but to incorporate these practices as appropriate on each construction site to protect its employees as well as subcontractors, suppliers and others who may be present on site. Otherwise, owners and contractors face potential exposure to regulatory action, including potential penalties and other liabilities, if they fail to properly incorporate these guidelines into the Injury and Illness Prevention Program (IIPP) at each construction site. Now is the time to update your current Injury and Illness Prevention Program (IIPP) to include recommended protocols for preventing the spread of the Coronavirus.
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Heather Whitehead, Newmeyer DillionMs. Whitehead may be contacted at
heather.whitehead@ndlf.com
Pay Inequities Are a Symptom of Broader Gender Biases, Studies Show
May 17, 2021 —
Pam Radtke Russell, Debra K. Rubin, Janice L. Tuchman & Alisa Zevin - ENRPay gaps between men and women are a problem in the AEC industry and beyond—and they are a sign of complex, systemic problems in companies. “It’s more of a symptom,” said Elizabeth Walgram, senior consultant in the compensation and career strategies practice at human resources consulting firm Segal.
Reprinted courtesy of
Pam Radtke Russell, ENR,
Debra K. Rubin, ENR,
Janice L. Tuchman, ENR and
Alisa Zevin, ENR
Ms. Russell may be contacted at Russellp@bnpmedia.com
Ms. Rubin may be contacted at rubind@enr.com
Ms. Tuchman may be contacted at tuchmanj@enr.com
Ms. Zevin may be contacted at zevina@enr.com
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2019 Legislative Session
June 03, 2019 —
Steve Heisdorffer – Colorado Construction LitigationTwo bills under consideration as the end of the session nears contain significant changes to Colorado’s Consumer Protection Act (“CCPA”). The bills broaden remedies, make more conduct a breach of the CCPA, and include purely private transactions in the type of conduct that falls within the scope of the CCPA. The bills are House Bill 19-1289 (“House Bill”) and Senate Bill 19-237 (“Senate Bill”). As of April 29, 2019, the House Bill has passed the House. The Senate Bill has not progressed past introduction. It is unclear if both houses of the legislature will have an opportunity to vote on either or both bills before the session ends.
The House Bill makes a person liable for CCPA violations based on conduct engaged in “recklessly,” not just knowing conduct. No definition of the term “recklessly” is provided in the House Bill, but Colorado’s attorney general testified “recklessly” “means a company or person acted with reckless disregard for the truth.” (Page 2). No explanation was given of what the word “reckless” in the definition of “recklessly” meant in this context.
Another provision of the House Bill adds a “catch all” prohibition that labels as a deceptive trade practice knowingly or recklessly engaging in any unfair, unconscionable, deceptive, deliberately misleading, false or fraudulent act or practice. There is no indication how a person could “recklessly” engage in “deliberately misleading” acts or practices.
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Steve Heisdorffer, Higgins, Hopkins, McLain & RoswellMr. Heisdorffer may be contacted at
heisdorffer@hhmrlaw.com
2016 Hawaii Legislature Enacts Five Insurance-Related Bills
May 12, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe 2016 Hawaii legislative session passed five insurance-related bills. Bills that have been enacted are the following:
HB 260 - The bill establishes motor vehicle insurance requirements for transportation network companies and drivers that will take effect on September 1, 2016. The Insurance Commissioner is directed to examine the effects of this measure on personal motor vehicle insurance policy rates in the State and submit an annual report to the Legislature. The bill will sunset on September 1, 2021. The measure has been transmitted to the Governor for signature.
HB 1705 - Electronic insurance cards, in addition to paper cards, are permitted by the bill. The card serves as proof of insurance for motor vehicles and is to be carried in the vehicle at all times. The legislation has been forwarded to the Governor for signature.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com