Circuit Court Lacks Appellate Jurisdiction Over Order Compelling Appraisal
August 21, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe Eleventh Circuit determined it lacked appellate jurisdiction over an order issued by the district court compelling an appraisal. Breakwater Commons Association, Inc. v. Empire Indem. Ins. Co., 2023 U.S. App. LEXIS 14459 (11th Cir. June 9, 2023).
Following Hurricane Irma, Breakwater Commons Association filed a claim with Empire Indemnity Insurance Company for property damage. Empire agreed to cover some of the damage to buildings, but a dispute arose over the amount of loss. Breakwater sought to invoke the appraisal provision in the policy. Empire refused to engage in an appraisal. Breakwater sued, and filed a motion to compel appraisal and to stay the proceedings pending the completion of the appraisal process.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Arbitration Clause Found Ambiguous in Construction Defect Case
October 28, 2011 —
CDJ STAFFThe California Court of Appeals ruled on September 28 in the case of Burch v. Premier Homes. Ms. Burch bought a home after negotiating various addendums to the contract. The contract was a standard California Association of Realtors contract to which both the buyer and seller made additions. At issue in this case was paragraph 17 of the contract which included that “Buyer and Seller agree that any dispute or claim in Law or equity arising between them out of this Agreement or resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration.”
The seller/defendant’s Addendum 2 “included provisions relating to the arbitration of disputes that may arise.” Ms. Burch’s realtor, Lisa Morrin, told Burch that “she had never seen a proposed contractual provision that would require a home buyer to agree to arbitrate with a builder over construction defects.” Ms. Burch told Morrin that she did not want to buy the property if she would have to give up her rights under California law.
As part of Addendum 2, the buyer had to buy a warranty from the Home Buyers Warranty Corporation. The sale was held up for a while, as Ms. Burch waited for a copy of the warranty. When she received it, she took further exception to Addendum 2. Scott Warren of Premier Homes said he could not sell the property without Addendum 2. Ms. Burch told her realtor that despite the claims made by Mr. Warren that this was for her benefit, she felt it was more to the benefit of Premier Homes. Don Aberbrook of HBW agreed to the clause, contained in the final sentence of Addendum 2, being struck.
Subsequent to buying the home, Burch submitted a claim concerning construction defects. HBW denied the claim and Burch began an action against the defendants. Premier filed a motion to compel arbitration which Burch opposed.
The trial court ruled that the striking out of the arbitration clause at the end of Addendum 2 “created a conflict with respect to the parties’ intent as to the scope of arbitration.” The trial court found that “the parties’ intention was to preserve Burch’s right to make state law claims including her right to a jury trial for any non-warranty claims against the builder.”
The appeals court in their ruling looked at the standard of review and concluded that the purchase agreement was ambiguous and that extrinsic evidence was required to resolve that ambiguity. As the contract contained contradictory provisions as to whether or not arbitration was required, it was necessary for the trial court to examine these claims. The appeals court found that the evidence supported the conclusions of the trial court.
Finally, the appeals court found that “there was no valid agreement to arbitrate disputes.” The court noted that arbitration can only happen by mutual consent and “it is clear that Burch did not enter into an agreement to arbitrate any construction defect disputes she might have.”
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Spotting Problem Projects
October 26, 2017 —
David R. Cook Jr. - Autry, Hanrahan, Hall & Cook, LLPPerhaps more than any other specialty contractor, electrical contractors bear the brunt of the “problem project.” Long after most other trades have completed their work and scattered in the wind, electrical contractors remain on site until the owner’s last inspection. And when the project is a “problem project,” the owner or prime contractor tend to liberally share their losses and liquidated damages among those specialty contractors remaining on site at the end. So what is an electrical contractor to do when the project starts coming off the rails?
What is a Problem Project?
First, it helps to identify the attributes of a problem project. While there are many negative qualities of a bad job, a problem project is one that busts budgets – whether labor, material, or time. Most commonly, the problem project will significantly exceed the labor budget. Because an electrical contractor’s most important (and understandably expensive) resource is its people, the labor budget is critical to the success of a job. When a project suffers delays or is ineptly managed, the labor costs soar, turning a potentially profitable job into a disaster.
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David R. Cook, Autry, Hanrahan, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
Amendments to Federal Rule of Evidence 702 – Expert Testimony
October 30, 2023 —
William L. Doerler - The Subrogation StrategistIn April, the Supreme Court sent a list of proposed amendments to Congress that amend the Federal Rules of Evidence. Absent action by Congress, the rules go into effect December 1, 2023. The proposed amendments affect Rules 106, 615 and, relevant to this article, 702.
Rule 702 addresses testimony by an expert witness. The proposed rule reads as follows (new material is underlined; matters omitted are lined through):
A witness who is qualified as an expert by knowledge, skill, experience, training, or education may testify in the form of an opinion or otherwise if the proponent demonstrates to the court that it is more likely than not that:
- the expert’s scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue;
- the testimony is based on sufficient facts or data;
- the testimony is the product of reliable principles and methods; and
- the expert has reliably applied expert’s opinion reflects a reliable application of the principles and methods to the facts of the case.
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William L. Doerler, White and Williams LLPMr. Doerler may be contacted at
doerlerw@whiteandwilliams.com
Haight Brown & Bonesteel Ranked on the 2017 "Best Law Firms" List by U.S. News - Best Lawyers
November 10, 2016 —
Haight Brown & Bonesteel LLPU.S. News – Best Lawyers® ranked Haight Brown & Bonesteel on the 2017 “Best Law Firms” list in the Metropolitan Tier 1 Ranking in Los Angeles for their defense work in insurance law and personal injury litigation.
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Investigation Continues on Children Drowning at Construction Site
August 13, 2014 —
Beverley BevenFlorez-CDJ STAFFTwo months ago, in Hobart, Illinois, two young boys (brothers) “drowned in an unsecured, excavated pit that filled with water” on a site owned by Goldschmidt Construction Services LLC of Hobart. The Post-Tribune reported that “Police Chief Richard Zormier said the department is waiting on reports from other agencies as it continues to investigate circumstances surrounding” the accident.
“We want to be thorough. The young boys deserve it. Their family deserves it,” Zormier told the Post-Tribune.
The family of the victims has filed a $60 million lawsuit against Goldschmidt Construction.
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Balancing Cybersecurity Threats in Smart Cities: Is the Potential Convenience of “Smart” Intersections Worth the Risk?
September 02, 2024 —
James P. Bobotek & Brian E. Finch - Gravel2Gavel Construction & Real Estate Law BlogThe term “smart cities” has become popular parlance for municipalities’ attempts to enhance delivery of urban services and infrastructure through information and communications technology. While they may conjure images of neon-lit high rises or streetscapes populated by sleek, hovering vehicles, a bit like the 1960s-era The Jetsons cartoon envisioned our high-tech future, the reality of smart cities has begun to emerge in more subtle, less glamourous forms. Cities tend to focus on wastewater monitoring, traffic control and energy distribution technologies in their efforts to become incrementally “smarter.”
Smart cities lean heavily on automation, internet connectivity and the Internet of Things (IoT)—including smartphones, connected cars and a host of web-based appliances and utilities—to boost the delivery and quality of essential urban services and infrastructure like transit, sanitation, water, energy, emergency response and more. Successful smart cities need infrastructure that supports such connectivity, and they pull data from hundreds, or even thousands, of sensors that can be used to analyze and shepherd the direction of resources.
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James P. Bobotek, Pillsbury and
Brian E. Finch, Pillsbury
Mr. Bobotek may be contacted at james.bobotek@pillsburylaw.com
Mr. Finch may be contacted at brian.finch@pillsburylaw.com
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Court Holds That Public Entity Can Unilaterally Replace Subcontractor Under California’s Subletting and Subcontracting Fair Practices Act
July 22, 2019 —
Garret Murai - California Construction Law BlogThe Subletting and Subcontracting Fair Practices Act (Public Contract Code section 4100 et seq.), also known as the Listing Law, is intended to prevent direct contractors on public works projects from “bid shopping” and “bid peddling.”
Bid Shopping: Bid shopping is when a direct contractor discloses a subcontractor’s bid to other subcontractors in an attempt to obtain a lower bid than the one in which it based its bid to the owner.
Bid Peddling: Bid peddling is the other side of the equation. It is when a subcontractor whose bid was not selected, lowers its bid in an attempt to induce the direct contractor to substitute it for another subcontractor after the prime contractor’s bid has been awarded.
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Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com