Being deposed—not just for dictators! Depositions in the construction lawsuit (Law & Order: Hard Hat files Part 5)
January 17, 2013 —
Melissa Dewey Brumback, Construction Law in North CarolinaMy husband always finds it amusing when I talk about going “to depose” somebody. He wants to know just exactly what sort of coup d’etat I am planning. Despite the awkward language, the deposition process is not supposed to feel like water boarding, although if you don’t know what to expect it can be more miserable than truly necessary.
Simply put, a deposition is a chance for the other side’s lawyer to make you answer a whole bunch of questions (some relevant, some seemingly irrelevant) under oath. That is, first you put your hand on the Bible and swear (or affirm) to tell the truth, the whole truth, and nothing but the truth. In reality, depositions serve a variety of purposes– they educate the lawyers about the facts of the case, they give a preview of how you would “present” to a jury (i.e., would a jury like and believe you?), and they can be used to position a case for certain later dispositive motions (that is, summary judgment– stay tuned for Part 8 of the series on that issue).
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Melissa Dewey BrumbackMs. Brumback can be contacted at
mbrumback@rl-law.com
Evolving Climate Patterns and Extreme Weather Demand New Building Methods
May 22, 2023 —
Annette Rubin - Construction ExecutiveCompared to the rest of the world, most buildings in the United States are relatively young. But most residential and commercial properties could use a makeover. Buildings constructed over twenty, fifty and one hundred years ago are, unsurprisingly, not as energy-efficient or as safe as new builds following modern methods—especially when considering the effects of climate change and more frequent extreme weather events on the integrity of that infrastructure.
According to the National Association of Home Builders, over 90% of new homes built in the United States today are wood-framed. These homes are incapable of withstanding a tornado or hurricane, yet they are still being built directly in the path of storms. Even buildings constructed in some of the most earthquake-prone areas of the U.S. may contain design flaws that make them susceptible to damage because they are built using a non-ductile concrete method, which experts say has an inadequate configuration of steel reinforcing bars—making the building vulnerable when shaken. While this building method was banned for new construction, it is not yet required to retrofit older construction to improve safety and structural integrity.
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Annette Rubin, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Economic Loss Not Property Damage
November 04, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe Fifth Circuit agreed with the district court that the insured subcontractor's economic losses did not amount to covered property damage. Greenwich Ins. Co. v. Capsco Industries, Inc., 2019 U.S. App. LEXIS 23949 (5th Cir. Aug 12, 2019).
Capsco Industries, Inc. was a subcontractor on the construction of a casino. Capsco subcontracted with Ground Control to install water, sewage, and storm-drain lines. Ground Control was terminated from the project by the general contractor for alleged safety violations and failed drug tests of its employees. Ground Control sued in state court against multiple parties, including Capsco, seeking payment for work on the project. The claims were dismissed on summary judgment because neither party had obtained the required certificates of responsibility from the state, making the parties' contract void. The Mississippi Supreme Court agreed the contract was void, but reversed and remanded for further proceedings based solely on theories of unjust enrichment and quantum meruit.
While the state case was on remand, Capsco's liability insurers, Greenwich Insurance Company and Indian Harbor Insurance Company, filed a compliant for declaratory judgment in federal district court seeking a declaration that they did not owe a defense or indemnity to Capsco. The defendants were Ground Control, Capsco, the general contractor, and the casino owner. The latter two parties were dismissed. Ground Control counterclaimed for coverage of its claims against Capsco. The district court stayed proceedings until the state court litigation ended.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Alabama “occurrence” and subcontractor work exception to the “your completed work” exclusion
November 18, 2011 —
CDCoverage.comIn Town & Country Property, LLC v. Amerisure Ins. Co., No. 1100009 (Ala. Oct. 21, 2010), property owner Town & Country contracted with insured general contractor Jones-Williams for the construction of a car dealership. All of the construction work was performed by Jones-Williams subcontractors. After completion, Town & Country sued Jones-Williams for defective construction. Jones-Williams’ CGL insurer Amerisure defended. The case was tried and a judgment was entered against Jones-Williams in favor of Town & Country. After Amerisure denied any obligation to pay the judgment, Town & Country sued Amerisure in a statutory direct action.
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Reprinted courtesy of CDCoverage.com.
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Facebook Posts “Not Relevant” Rules Florida Appeals Court
February 07, 2014 —
Beverley BevenFlorez-CDJ STAFFA Cape Coral, Florida resident is suing the city and construction companies over alleged negligence “for failing to use reasonable care in keeping the construction site safe for pedestrians,” according to News-Press. The lawsuit was filed after a three-year old boy “jumped out of a wagon pulled by his aunt and darted across the construction zone before being” hit and dragged by a vehicle. The boy “suffers neurological problems from the crash.” The defendants wanted to use Facebook posts made by the Plaintiff about the city, contractors, and subcontractors, as evidence. However, the 2nd District Court of Appeals ruled that the Facebook posts were irrelevant to the case.
Todd Robert Falzone, the Plaintiff attorney, said that “it’s becoming more common for defense lawyers to try and introduce social media into any case, but the law is new and there isn’t a lot of guidance for lawyers or judges,” according to News-Press. The defendants’ attorneys did not return News-Press’s calls asking for comments.
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Consider the Risks Associated with an Exculpatory Clause
November 24, 2019 —
David Adelstein - Florida Construction Legal UpdatesAn exculpatory clause in a contract is a clause aimed at relieving another party from certain liability. A disclaimer and insulation from liability. Obviously, if you are the party relieving the other party from liability, you want to consider this risk including the potential enforceability of this risk if something goes wrong. If you are the party asking for the insulation from liability, you do not want to create an exculpatory provision that disclaims and insulates you of all liability arising from the contract as it may create an illusory effect – that the agreement is nothing but a naked promise on your end because your promise is fully disclaimed and you are insulated from liability if you break your promise. This could result in an unenforceable contract.
The validity of such an exculpatory clause was at-issue in Pier 1 Cruise Experts v. Revelex Corp., 2019 WL 3024618 (11thCir. 2019). Although not a construction dispute, the exculpatory clause in this case was with two fairly sophisticated parties and expressly insulated one of the contracting parties from “any…damages regardless of kind or type…whether in contract, tort (including negligence), or otherwise.” Pier 1 Cruise Experts, 2019 WL at *7. This is a powerful exculpatory clause because it could be broadly construed to insulate that party from its own breaches of the contract.
In Florida:
[A]n exculpatory clause is enforceable so long as (1) the contracting parties have equal bargaining power and (2) the clause’s provisions are clear and unambiguous. With respect to the latter requirement, ‘the intention to be relieved from liability [must be] made clear and unequivocal and the wording must be so clear and understandable that an ordinary and knowledgeable person will know what he is contracting away.” In the same vein, exculpatory clauses are ‘strictly construed against the party seeking to be relieved of liability.’
Pier 1 Cruise Experts, 2019 WL at *7 (internal citations omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
North Carolina Federal Court Holds “Hazardous Materials” Exclusion Does Not Bar Duty to Defend Under CGL Policy for Bodily Injury Claims Arising Out of Direct Exposure to PFAs
December 07, 2020 —
Paul A. Briganti - White and Williams LLPOn October 19, 2020, the U.S. District Court for the Western District of North Carolina held that a “hazardous materials” exclusion contained in a CGL policy did not preclude a duty to defend the insured against claims alleging bodily injury resulting from direct exposure to perfluorooctane sulfonate (PFOS) and perfluorooctanoic acid (PFOA), which are man-made chemicals within the group of per- and polyfluoroalkyl substances (PFAs).[1]
In Colony Insurance Company v. Buckeye Fire Equipment Company, the insured was named a defendant in hundreds of underlying suits relating to its manufacture of fire equipment containing aqueous film-forming foam (AFFF), a fire suppressant.[2] The underlying plaintiffs alleged that: (a) the AFFF contained PFOS and PFOA; (b) PFOA and PFOS are highly carcinogenic; and (c) exposure to AFFF contained in the defendants’ products caused bodily injury or property damage. Around a third of the underlying complaints alleged harm from both direct exposure to the foam and exposure through the environment. Representative language from those complaints was: “[d]uring [underlying plaintiff’s] employment as a firefighter and firefighter instructor, he was significantly exposed to elevated levels of PFOS and PFOA in their concentrated form as a result of regular contact with [d]efendant’s AFFF products and through PFOS and PFOA having contaminated the FireCollege well system.”
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Paul A. Briganti, White and Williams LLPMr. Briganti may be contacted at
brigantip@whiteandwilliams.com
Builder Must Respond To Homeowner’s Notice Of Claim Within 14 Days Even If Construction Defect Claim Is Not Alleged With The “Reasonable Detail”
June 05, 2017 —
Richard H. Glucksman & David A. Napper - CGDRB News & PublicationsOn February 10, 2017, California’s Fourth District Court of Appeal held that if a builder fails to acknowledge receipt of a homeowner’s Notice of Claim within 14 days, as required by the Right to Repair Act (“SB800”), specifically California Civil Code §913, the homeowner is released from the requirements of SB800 and may proceed with the filing of a lawsuit.
In Blanchette v. Superior Court, Blanchette owned 1 of 28 homes constructed by GHA Enterprises, Inc. (“GHA”). On February 2, 2016, Blanchette served GHA with notice of a claim, setting forth the alleged defects in all 28 homes. On February 23, 2016, GHA responded that the construction defects were not alleged with sufficient “reasonable detail” as required by Civil Code §910. In response, Blanchette asserted that GHA’s response was untimely and thus excused him and the other homeowners from any obligations under SB800. The trial court found for the builder, GHA, holding that Blanchette’s Notice of Claim lacked detail sufficient to trigger GHA’s obligations under SB800. Blanchette appealed the ruling.
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Richard H. Glucksman, Chapman Glucksman Dean Roeb & Barger and
David A. Napper, Chapman Glucksman Dean Roeb & Barger
Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com
Mr. Napper may be contacted at dnapper@cgdrblaw.com
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