California’s Labor Enforcement Task Force Continues to Set Fire to the Underground Economy
February 16, 2016 —
Evelin Y. Bailey – California Construction Law BlogIf you’re a fan of the Hunger Games trilogy, either the books or the movies, you’re likely familiar with “The Hob,” the black market in District 12 where people buy and sell banned items. It’s where bow-wielding protagonist Katniss Everdeen and her childhood friend Gale Hawthorne sell their poached game and where, in the movie but not the book (what can we say, we’re fans), Katniss obtains the “mockingjay” pin which she is later associated with. While The Hob is largely ignored by soldiers of the totalitarian “Capitol,” in the third book Catching Fire, the Hob is reduced to a pile of rubbish and ash by the Capital as an example to punish the insurrectionists led by Katniss.
The Labor Enforcement Task Force (LETF), a joint task force composed of several of California’s agencies including the Contractors State License Board, Department of Industrial Relations and Employment Development Department is also setting fire, at least figuratively, to California’s underground economy. See our earlier post Joint Labor Task Force Targets Underground Economy for further background on LETF.
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Evelin Y. Bailey, Wendel Rosen Black & Dean LLPMs. Bailey may be contacted at
ebailey@wendel.com
The Families First Coronavirus Response Act: What Every Employer Should Know
April 06, 2020 —
Donald A. Velez, Karissa L. Fox & Sarah K. Carpenter - Smith CurrieSmith Currie provides this update regarding the Families First Coronavirus Response Act as part of its continuing effort to monitor developments concerning the Coronavirus disease (“COVID-19”) and provide guidance as to potential issues that may arise in businesses across the United States.
On March 18, 2020, President Trump signed into law the Families First Coronavirus Response Act (the “Act”), which contains provisions requiring certain private employers to provide paid leave to employees who cannot work because of Coronavirus, expanding Family and Medical Leave Act coverage, providing for federal tax credits to affected employers, and providing eligible states the ability to further fund their unemployment trust fund accounts. The Act is effective as of April 2, 2020 and will remain in place through December 31, 2020.
Below, we provide a summary of the Act and several of its key components, including the Emergency Family and Medical Leave Expansion Act (“EFMLEA”), the Emergency Paid Sick Leave Act, and the Emergency Unemployment Insurance Stabilization and Access Act.
Reprinted courtesy of Smith Currie attorneys
Donald A. Velez,
Karissa L. Fox and
Sarah K. Carpenter
Mr. Velez may be contacted at davelez@smithcurrie.com
Ms. Fox may be contacted at klfox@smithcurrie.com
Ms. Carpenter may be contacted at skcarpenter@smithcurrie.com
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Three Construction Workers Injured at Former GM Plant
March 26, 2014 —
Beverley BevenFlorez-CDJ STAFFIn Linden, New Jersey, three construction workers were injured “when they were apparently struck by steel girders while working at the former General Motors site” police told NJ.com.
Mayor Richard Gerbounka stated that the “[s]ix struts that would support the deck or ceiling of a warehouse collapsed.” He also mentioned that the city “has been trying to redevelop the former General Motors site for years, but has run into several obstacles, including lawsuits from nearby businesses opposed to retail construction.”
Several construction vehicles were “nearly buried under” debris and “[a]t least one I-beam girder and several decking struts—all metal—remain across several heavy construction vehicles,” NJ.com reported. The owner of the vehicles stated “he was told that workers were standing around the vehicles preparing to start their day when high winds knocked down at least one I-beam and several metal decking struts.”
In another article published late afternoon on March 26th, NJ.com reported that “high winds” were the cause of the accident. “The federal Occupational Safety and Health Administration is investigating the accident and all work at the site has been suspended pending the investigation,” according to the article. “Officials said OSHA inspectors had been at the scene once before, but declined to give details because of a continuing investigation.”
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As Climate Changes, 'Underwater Mortgage' May Take on New Meaning
August 20, 2014 —
James Tarmy – BloombergLooking to buy a house? That’s great, unless you’re in your 20s and 30s and regularly read climate reports. They tend to project dramatic changes to the climate over the next 50 years, and given that current life expectancy is hovering around 80, we’ll likely be around to see it.
So. If you’re looking to settle down for the long haul, where’s the best place to do it?
Great Plains? You're looking at higher temperatures and more demand for water and energy.
The Southeast, perhaps? The region may suffer from (at least) 60 days with 95-plus degree weather by 2070, according to the 2014 National Climate Assessment.
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James Tarmy, Bloomberg
The Problem With Building a New City From Scratch
May 10, 2022 —
Nolan Gray - BloombergFrom California to Miami and points in between, housing costs in the U.S. are skyrocketing, bringing bidding wars in hot markets and fears of a fresh surge in homelessness as renters scramble for an affordable place to live.
The deepening housing crunch — and the intractable resistance that residents often put up when the prospect of new housing emerges nearby — has led some observers to ask: Why don’t we just make new cities?
“When China needs new places for people to live, they just build a new city,” Nathan J. Robinson recently wrote in Current Affairs, contemplating all the undeveloped land in between California’s costly major urban areas. “They’ve built 600 of them since 1949.”
At first blush, it might seem obvious. But history is full of failed, unfinished or underperforming scratch-built city projects, in California and elsewhere, and more are in the pipeline.
To learn more about how we might best approach building new cities, CityLab talked to a person who’s had a hand in planning a few of them: Alain Bertaud, a fellow at the Marron Institute for Urban Management and a globetrotting former city planner at the World Bank. Our conversation has been edited for length and clarity.
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Nolan Gray, Bloomberg
Toxic Drywall Not Covered Under Homeowner’s Policy
March 28, 2012 —
CDJ STAFFThe Duphuys of Baton Rouge Louisiana found themselves needing to argue both sides of an issue, according to the judge in Duphuy v. USAA Casualty Insurance Company. The Duphuys alleged that the drywall in their home “emits odorous gases that cause damage to air-condition and refrigerator coils, copper tubing, electrical wiring, computer wiring, and other household items.” Additionally, they reported damage to “their home’s insulation, trimwork, floors, cabinets, carpets, and other items” which they maintained were “covered under the ‘ensuing loss’ portion of their policy.”
Their insurer declined coverage, stating that the damages were not a “direct, physical loss,” and even if they were “four different exclusions independently exclude coverage, even if such loss occurred.” The policy excludes defective building materials, latent defects, pollutants, and corrosion damage. The court noted that “ambiguities in policy exclusions are construed to afford coverage to the insured.”
The court did determine that the Duphuys were not in “a situation where the plaintiffs caused the risk for which they now seek coverage.” The judge cited an earlier case, In re Chinese Drywall, “a case with substantially similar facts and construing the same policy” and in that case, “property damage” was determined to “include the loss of use of tangible property.” The court’s conclusion was that the Duphuys “suffered a direct, physical loss triggering coverage under their policy.”
Unfortunately for the Duphuys, at this point the judge noted that while they had a “direct, physical loss,” the exclusions put them “in the tough predicament of claiming the drywall is neither defective nor its off-gassing corrosive or a pollutant, but nonetheless damage-causing.”
In the earlier Chinese Drywall case, the judge found that “faulty and defective materials” “constitutes a physical thing tainted by imperfection or impairment.” The case “found the drywall served its intended purpose as a room divider and insulator but nonetheless qualified under the exclusion, analogizing the drywall to building components containing asbestos that courts have previously determined fit under the same exclusion.” In the current case, the judge concluded that the drywall was “outside the realm of coverage under the policy.”
The court also found that it had to apply the corrosion exclusion, noting that the plaintiffs tried to evade this by stating, “simplistically and somewhat disingenuously, that the damage is not caused by corrosion but by the drywall itself.” The plaintiffs are, however, parties to another Chinese drywall case, Payton v. Knauf Gips KG, in which “they directly alleged that ‘sulfides and other noxious gases, such as those emitted from [Chinese] drywall, cause corrosion and damage to personal property.’” As the court pointed out, the Duphuys could not claim in one case that the corrosion was caused by gases emitted by the drywall and in another claim it was the drywall itself. “They hope their more ambiguous allegations will be resolved in their favor and unlock the doors to discovery.”
The court quickly noted that “the remaining damage allegations are too vague and conclusory to construe” and permitted “exploration of the latent defect and pollution exclusions.”
The judge concluded that the plaintiffs did not provide sufficient facts to establish coverage under the ensuing loss provision, stating that the “plaintiffs must allege, at the very least, how the drywall causes damage to the trimwork, carpet, etc., not simply that it does so.” Given the court’s determinations in the case, the plaintiffs’ motion was dismissed.
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U.S. Homebuilder Confidence Rises Most in Almost a Year
June 18, 2014 —
Shobhana Chandra – BloombergConfidence among U.S. homebuilders rose in June by the most in almost a year, a sign the residential real estate market is stabilizing after reeling from severe winter weather earlier this year.
The National Association of Home Builders/Wells Fargo sentiment gauge climbed to 49 this month from 45 in May, the biggest gain since July 2013, figures from the Washington-based group showed today. Readings greater than 50 mean more respondents report good market conditions. The median forecast in a Bloomberg survey called for 47.
Current sales, the outlook for future purchases and prospective buyer traffic all improved this month, today’s figures showed, indicating mortgage rates close to historically low levels and a strengthening job market are sustaining demand. Improving sentiment comes as the world’s largest economy picks up this quarter following a contraction in the first three months of 2014.
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Shobhana Chandra – BloombergMs. Chandra may be contacted at
schandra1@bloomberg.net
Cooperating With Your Insurance Carrier: Is It a Must?
January 02, 2024 —
Susana Arce - Saxe Doernberger & Vita, P.C.A majority of insurance policies require the insured to cooperate with the insurer. The cooperation clause generally states, “the insured agrees to Cooperate with us in the investigation, settlement or defense of the suit.”
The “cooperation clause” is often an afterthought because once litigation has ensued an insured is focused on other important considerations. However, insureds should not forget that complying with the cooperation clause can make the difference between the insurer covering or denying a claim.
The Cooperation Clause in Action
The Court in
HDI Glob. Specialty SE v. PF Holdings, LLC,1 highlighted the importance of cooperating with an insurance carrier. In the underlying litigation, residents of an apartment complex sued four entities, all insured by the same insurance policy: two were named insureds and two were additional insureds. The primary insurer provided a defense for the named insureds.
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Susana Arce, Saxe Doernberger & Vita, P.C.Ms. Arce may be contacted at
SArce@sdvlaw.com