Save A Legal Fee? Sometimes You Better Talk With Your Construction Attorney
May 10, 2012 —
Douglas Reiser, Builders Council BlogI love writing this column, because I think it’s refreshing for contractors to hear that they don’t always need an attorney. Today’s post is the “Un-Save a Legal Fee” because I want to point out a specific illustration of when you definitely need your attorney. Using a construction contract template can be fine, but you always need to consider its application to each project ? or it could bite you in the rear.
Seattle attorney Paul Cressman published a prime depiction of bad contract management, last week. A Florida appellate court struck down a general contractor’s “pay if paid” clause when it became ambiguous because of some incorporated language from its prime contract. Specifically, a clause in the prime contract required the general contractor to pay all subcontractors before receiving payment from the owner, while the general contractor’s “pay if paid” clause required its subcontractors to wait for payment until it arrived from the owner.
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When Can a General Contractor’s Knowledge be Imputed to a Developer?
August 06, 2014 —
Zach McLeroy – Colorado Construction LitigationThe Colorado Court of Appeals recently handed down an opinion clarifying when the knowledge of a general contractor can be imputed to a developer. In the case of Jehly v. Brown, 327 P.3d (Colo. App. 2013), the Court of Appeals held that a developer cannot be held liable for fraudulent concealment when the developer has no actual knowledge of the fact or facts allegedly being concealed even if the general contractor had knowledge.
In this case, Brown, the developer, owned real property in Teller County and hired a general contractor to build a single-family house. Sometime before or during the construction, the general contractor became aware that part of the home site was located in a designated floodplain. Although the general contractor was aware that part of the home site was located in a floodplain, he continued to build the home without informing Brown of the floodplain designation.
Once the home was complete, Brown sold the property to the Jehlys. Brown completed a Seller’s Property Disclosure Form regarding the condition of the house and property, but failed to identify that the home site was located in a governmentally designated floodplain.
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Zack McLeroy, Higgins, Hopkins, McLain & Roswell, LLCMr. McLeroy may be contacted at
McLeroy@hhmrlaw.com
Architectural Democracy – Interview with Pedro Aibéo
July 13, 2017 —
Aarni Heiskanen - AEC BusinessIn this podcast interview with Pedro Aibéo, we discuss Architectural Democracy, a research project, and its practical implementations.
Architectural Democracy started as a doctoral research by Pedro Aibéo, architect and civil engineer. Pedro has been doing his research at Aalto Bim Lab, Aalto University School of Engineering. The project has now grown into a larger working group of researchers and entrepreneurs who are currently putting in practice the developed technologies.
Pedro’s research “aims at investigating possibilities and benefits of combining existing technologies (Smartphones and BIM) in collaboration with government policies, in order to include end-users as participants in the decision making process of the built environment.”
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
info@aepartners.fi
Privity Problems Continue for Additional Insureds in the Second Circuit
November 08, 2017 —
Samantha M. Martino – Saxe Doernberger & Vita, P.C.On October 4, the Second Circuit held that Harleysville Insurance Company had no duty to defend or indemnify a project owner or general contractor as additional insureds under a sub-subcontractor’s commercial general liability (CGL) policy due to lack of direct contractual privity. 1
The underlying claim arose when an employee of The Kimmell Company, Inc. (Kimmell) was injured while repairing an HVAC system at a building owned by the University of Rochester Medical Center (UR). The injured employee sought damages for his injuries and fi led suit against (1) UR; (2) LeChase Construction Corp. (LeChase), the general contractor for the project; and (3) J.T. Mauro Co. Inc. (Mauro), a subcontractor hired by LeChase.
Mauro hired Kimmell as a sub-subcontractor to perform HVAC services at the project. The Mauro-Kimmel contract required Kimmel to add Mauro, UR, and LeChase as additional insureds under Kimmell’s CGL policy.
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Samantha M. Martino, Saxe Doernberger & Vita, P.C.Ms. Martino may be contacted at
smm@sdvlaw.com
Arizona Court Determines Statute of Limitations Applicable to a Claim for Reformation of a Deed of Trust (and a Related Claim for Declaratory Judgment)
October 16, 2018 —
Kevin J. Parker - Snell & Wilmer Real Estate Litigation BlogIn a recent Arizona Court of Appeals case, Deutsche Bank National Trust Co. v. Pheasant Grove LLC, 798 Ariz. Adv. Rep. 15 (August 23, 2018), the Court of Appeals addressed the question of what statute of limitations was applicable to a declaratory judgment claim. In that case, a bank’s deed of trust inadvertently omitted one of the lots that was supposed to secure that bank’s loan. The deed of trust should have covered lots 8 and 9, but by its terms covered only lot 8. A different bank subsequently recorded a deed of trust that encumbered lot 9. In connection with the second bank’s foreclosure of its deed of trust, the first bank sought reformation and a declaratory judgment with regard to its deed of trust, seeking to have that deed of trust cover both lots 8 and 9, as intended. The trial court determined that the first bank’s reformation claim was filed too late, and also determined that the declaratory judgment claim was filed too late, beyond the applicable statute of limitations.
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Kevin J. Parker, Snell & WilmerMr. Parker may be contacted at
kparker@swlaw.com
Re-Entering the Workplace: California's Guideline for Employers
May 18, 2020 —
Daniel Schneider – Newmeyer DillionWhen the California stay at home orders ultimately expire and Californians start to slowly transition back into the workplace, it will be critical for employers to have protocols in place which can best ensure the safety of their employees and that can continue to protect the public-at-large from the on-going spread of COVID-19. Recognizing the importance of this endeavor, the Governor's office last week released the
COVID-19 Industry Guidance for Office Workspaces and
Cal/OSHA General Checklist in order to provide guidance to businesses wanting to support a safe, clean environment for their employees. While the guidance is quick to point out that it is not intended to revoke or repeal any additional rights an employee may have to be protected in the workplace, and that it is not to be considered exhaustive of the steps employers need to take in order to protect their employees, the guidance does provide a useful roadmap for businesses to consider when establishing a robust plan that will best serve to protect employees from the spread of COVID-19 in the workplace.
Newmeyer Dillion continues to follow COVID-19 and its impact on your business and our communities. Feel free to reach out to us at NDcovid19response@ndlf.com or visit us at www.newmeyerdillion.com/covid-19-multidisciplinary-task-force/.
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Daniel Schneider, Newmeyer DillionMr. Schneider may be contacted at
daniel.schneider@ndlf.com
NY State Appellate Court Holds That Pollution Exclusions Bar Duty to Defend Under Liability Policies for Claims Alleging Exposure to PFAS
February 01, 2022 —
Robert F. Walsh & Paul A. Briganti - White and Williams LLPOn January 6, 2022, the New York Supreme Court, Appellate Division, Third Department, held that the “sudden and accidental” pollution exclusion (SAPE) and “absolute” pollution exclusion (APE) in liability policies relieved two insurers of a duty to defend the insured-manufacturer in connection with claims alleging damages as a result of exposure to perfluorooctanoic acid (PFOA) and perfluorooctane sulfonate (PFOS), which are man-made chemicals within the group of per- and polyfluoroalkyl substances (PFAS). See Tonoga, Incorporated v. New Hampshire Insurance Company, No. 532546, 2022 N.Y. App. Div. LEXIS 105 (App. Div. 3rd Dep’t Jan. 6, 2022).
In Tonoga, starting in 1961, the insured and its predecessors owned and operated a manufacturing facility in Petersburg, New York that produced materials coated with polytetrafluoroethylene (PTFE). Until 2013, the manufacturing process involved the use of PFOA and/or PFOS. In early 2016, excessive PFOA and/or PFOS concentrations were detected in Petersburg’s municipal water supply. Later that year, the New York Department of Environmental Conversation designated the insured’s facility a Superfund site, and the insured entered into a consent agreement that required it to assist in remedial measures. 2022 N.Y. App. Div. LEXIS 105, at *1-2.
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Robert F. Walsh, White and Williams LLP and
Paul A. Briganti, White and Williams LLP
Mr. Walsh may be contacted at walshr@whiteandwilliams.com
Mr. Briganti may be contacted at brigantip@whiteandwilliams.com
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Substantial Completion Explained: What Contractors & Owners Should Know
January 17, 2022 —
Travis Colburn - Ahlers Cressman & SleightA project’s Substantial Completion date is a critical construction milestone for contractors and owners. Depending on the contract, the date of Substantial Completion has project-specific contractual and statutory consequences.
Substantial Completion is an “event” – there is no universal definition of the term. It is generally understood to be (1) a point in time (2) when work performed by the contractor is sufficiently complete (3) where it can be used or occupied for the owner’s intended purpose. The date of Substantial Completion is generally established at the time of contract formation (either as a negotiated or a contract set date), and that date may be adjusted over the course of a project to account for excusable delays.
As a construction professional, your attorney should review and tailor any written agreement to your project-specific needs and risk tolerances prior to execution. Savvy construction professionals often start with standard form agreements promulgated by the American Institute of Architects (“AIA”), the Design-Build Institute of America (“DBIA”), or the Engineers Joint Contract Document Committee (“EJCDC”) as the basis for their construction contracts. The AIA, DBIA, and EJCDC standard forms each contains contract provisions relating to when and what happens once Substantial Completion has occurred, subject to any agreed-to, project-specific deviations.
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Travis Colburn, Ahlers Cressman & SleightMr. Colburn may be contacted at
travis.colburn@acslawyers.com