Timely Legal Trends and Developments for Construction
February 18, 2019 —
Matt Viator - Construction ExecutiveThe construction industry is broad and the legal concerns of industry members can be far-reaching. What seems like tomorrow’s problem often jumps to the forefront and becomes a high priority today. 2018 was full of moments like these – and it’s important to keep track of legal developments for a glimpse at what may be waiting around the corner. With that in mind, here are some of the most important legal developments for the construction industry from the second half of 2018.
Sureties and Litigation – a Broad Topic
Sureties play a vital role on construction projects. On federal jobs and state, county or municipal jobs, surety bonds are typically required. That means it’s important to stay on top of how the courts are treating surety agreements.
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Matt Viator, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Preparing Your Business For Internal Transition
October 14, 2019 —
Stephen P. Katz, Esq. - ConsensusDocsWhen is it right to start thinking about succession planning and preparing a construction company for transition? Many would agree – in concept, at least – that serious thought regarding succession and transition planning should begin at a company’s inception and be revisited throughout its lifecycle, but as a practical matter, it is frequently not part of the mindset when growing a business. This article explores issues that construction company owners should consider in order to achieve smooth transition of ownership and control. We will address three critical questions:
- What happens to the business when an owner retires;
- In the event an owner(s) become disabled; and,
- Unplanned exit/owner pre-deceases her/his exit from the company
Owners who do not plan carefully for transition are often faced with the less than appealing option of liquidating their business for much less than its value, or by closing the business with no return upon that event. However, those who plan carefully can realize the value of their life’s work, pass the business to the next generation and see their legacy continue.
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Stephen P. Katz, Esq., Peckar & Abramson, P.C.Mr. Katz may be contacted at
skatz@pecklaw.com
Veterans Day – Thank You for Your Service
December 05, 2022 —
Travis Colburn - Ahlers Cressman & SleightHappy Veterans Day
[1] to our country’s servicemembers past and present! ACS would like to express its deepest gratitude and respect in saying thank you to those that have served, or are serving, in our armed forces. It undoubtedly takes incredible bravery, fortitude, integrity, respect, and a commitment to our country’s evolving ideals. Some of those same attributes that are necessary for service are also well-geared toward a post-military career in construction. As some already know, Veterans have unique construction contracting opportunities at both the state and federal level. The following is a high-level overview of the process and opportunities for veterans who are not aware or who are considering a career in construction.
There are federal and state level opportunities for Veteran-owned businesses. The initial step in accessing federal and state level contracting opportunities is different for each but begins with certification/verification.
At the federal level, effective January 1, 2023, all responsibilities for the verification of Veteran-owned small businesses (“ VSOB”) will transfer from the Department of Veterans Affairs to the Small Business Administration.
[2] Verification is the process that establishes eligibility for access to Veteran-specific benefits, including certain government contracts and the purchase of surplus government property, by confirming that VSOBs and service-disabled Veteran-owned small businesses (“SDVOSB”) are operated by Veterans.
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Travis Colburn, Ahlers Cressman & SleightMr. Colburn may be contacted at
travis.colburn@acslawyers.com
Ackman Group Pays $91.5 Million for Condo at NYC’s One57
April 15, 2015 —
David M. Levitt and Oshrat Carmiel – BloombergA group including billionaire investor Bill Ackman paid $91.5 million for a duplex penthouse at Extell Development Co.’s One57 condominium tower, one of New York City’s most expensive home purchases ever.
The purchase of unit 75 in the luxury skyscraper overlooking Central Park closed on March 27, according to property records filed Thursday. The buyer was listed as 57157 Co. LLC, a single-purpose entity that Ackman controls.
The 13,554-square-foot (1,259-square-meter), six-bedroom home spans the 75th and 76th floors of the 90-story skyscraper. Ackman last year told the New York Times it was “the Mona Lisa of apartments.” Monthly common charges on the unit were estimated at $23,595, according to documents Extell filed with the state attorney general’s office.
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David M. Levitt, Bloomberg and
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No Additional Insured Coverage for Subcontractor's Work Outside Policy Period
August 19, 2015 —
Tred R. Eyerly – Insurance Law HawaiiIn a dispute between two insurers, the district court determined that the contractor was not an additional insured under the subcontractor's policy. Navigators Spec. Ins. Co. v. St. Paul Surplus Lines Ins. Co., 2015 U.S. Dist. LEXIS 79338 (N. D. Cal. June 17, 2015).
McDevitt & McDevitt Construction Corporation was the general contractor for construction of a condominium complex. McDevitt was insured by Navigators Specialty Insurance Company. F&M was a subcontractor for the project for providing structural steel components. F&M's subcontract required it to obtain liability insurance and name McDevitt as an additional insured under a policy that was to be primary. F&M secured a policy with North American Capacity Insurance Company (NAC) which included an endorsement for additional insureds. The endorsement provided that an entity could be an additional insured only with respect to "occurrences resulting from work performed by you during the policy period, or occurrences resulting from the conduct of your business during the policy period."
McDevitt and F&M were sued for construct defect claims. Navigators defended McDevitt and NAC defended F&M. Navigators tendered McDevitt's defense to NAC because McDevitt was an additional insured under NAC's policy. NAC disclaimed coverage.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Three Payne & Fears Attorneys Named 2024 Southern California Super Lawyers Rising Stars
June 17, 2024 —
Payne & Fears LLPWe congratulate our Payne & Fears attorneys named 2024 Southern California Super Lawyers Rising Stars in the following practice areas:
Employment & Labor
Blake A. Dillion
Business Litigation
Leilani L. Jones
Employment Litigation: Defense
Tyler B. Runge
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Payne & Fears LLP
Mississippi Supreme Court Addresses Earth Movement Exclusion
December 09, 2019 —
Anthony Hatzilabrou - Traub LiebermanRecently, the Mississippi Supreme Court held that structural damages to the foundation of an insured’s home came within the earth movement exclusion in a homeowner’s policy, notwithstanding a provision in the policy which provided coverage for water damage resulting “from accidental discharge or overflow of water … from within … [p]lumbing, heating, air condition or household appliance.”
In Mississippi Farm Bureau Cas. Ins. Co. v. Smith, 264 So. 3d 737 (Miss. 2019), the appellee, Smith, filed a lawsuit against her homeowner's insurance company, Mississippi Farm Bureau Casualty Insurance Company (“Farm Bureau”) for its refusal to pay for repairs to the foundation of Smith’s home. Smith alleged that the refusal to pay for repairs amounted to breach of contract and asserted claims for bad faith and tortious breach of contract. In response, Farm Bureau filed a motion for summary judgment on the basis of the policy’s earth-movement exclusion, which provided that Farm Bureau “did not insure for loss caused directly or indirectly by…Earth Movement…[which] means…[a]ny other earth movement including earth sinking, rising or shifting... caused by or resulting from human or animal forces.” Smith filed a cross-motion for partial summary judgment on the basis that the earth-movement exclusion did not preclude coverage because her insurance policy also contained a clause expressly covering water damage.
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Anthony Hatzilabrou, Traub LiebermanMr. Hatzilabrou may be contacted at
thatzilabrou@tlsslaw.com
The Cross-Party Exclusion: The Hazards of Additional Named Insured Provisions
July 19, 2021 —
Laurie A. Stanziale - ConsensusDocsMost construction contracts contain insurance provisions setting forth the insurance required of the contractor or other downstream parties. Some provisions are detailed and lengthy while others are short and sweet, but all are of critical importance and should be fully understood by the contractor before signing the contract. Also, every insured should understand not only what the contract requires but more importantly what the actual policy states, as the policy, not the contract, will govern whether or not there is coverage. It is possible that certificates received will match the contractual requirements, but much of what the policy covers is not reflected on a certificate. Lurking behind the certificate is the policy, which is where the actual coverage lies. The endorsements or exclusions to the policy can make the certificates worthless pieces of paper.
There are many exclusions that can cancel coverage for the work a contractor may perform. Height exclusions, residential exclusions, EFIS exclusions and many more, focus on the type of work or materials that the contractor is performing or using. One exclusion, however, focuses on who is insured and that exclusion alone can eliminate all coverage.
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Laurie A. Stanziale, Fox Rothschild LLP (ConsensusDocs)Ms. Stanziale may be contacted at
lstanziale@foxrothschild.com