Know When Your Claim “Accrues” or Risk Losing It
August 20, 2019 —
Christopher G. Hill - Construction Law MusingsI have discussed statutes of limitation on construction claims in various contexts from issues with a disconnect on state projects to questions of continuous breach here at Construction Law Musings. For those that are first time readers, the statute of limitations is the time during which a plaintiff can bring its claim, whether under the Virginia Consumer Protection Act (VCPA), for breach of contract, or for any other legal wrong that was done to him, her or it by another. The range of limitations runs the gamut of times, for instance it is 5 years for breach of a written contract and 6 months for enforcement of a mechanic’s lien. This time period is calculated from the “accrual” of the right of action. “Accrual” is, in general terms, when the plaintiff was originally harmed or should have known it was harmed (depending on the particular cause of action).
A recent case out of the Circuit Court of Norfolk, Virginia examined when a cause of action for a construction related claim under the VCPA accrued and thus whether the plaintiff’s claim was timely. In Hyde Park Free Will Baptist Church v. Skye-Brynn Enterprises Inc., the Court looked at the following basic facts (pay attention to the dates):
The Plaintiff, Hyde Park Baptist Church, hired the Defendant, Skye-Brynn Enterprises, Inc., to perform certain roof repairs that were “completed” in 2015. Shortly after the work was done, in 2015, the Plaintiff informed Defendant that the roof still leaked and that some leaks were worse than before. The Defendant unsuccessfully attempted repair at the time. 14 months later in 2017, the church had other contractors examine the roof and opine as to its faulty installation. Also in 2017, the church submitted roof samples to GAF, the roof membrane manufacturer and in February 2018 GAF responded stating that the leaks were not due to manufacturing defects. The church filed its complaint on October 1, 2018 breach of contract, breach of warranty of workmanship and fraud in violation of the VCPA. Defendant responded with a plea in bar, arguing that the statute of limitations barred the claim.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Largest Per Unit Settlement Ever in California Construction Defect Case?
October 28, 2011 —
CDJ STAFFBusinessWire reports that the Chelsea Court Homeowners Association has settled their construction defect case for $5.4 million. That works out to $169,000 per unit, which BusinessWire describes as “California’s largest per-unit recovery known to be on record to date.”
Most of the money in the settlement is coming from insurance companies for the builder and thirteen subcontractors. Issues included roof and window leaks, deck failures, and unsafe walkways.
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Appellate Team Secures Victory in North Carolina Governmental Immunity Personal Injury Matter
January 23, 2023 —
Sam Friedman & Christopher Meeks - Lewis BrisboisAtlanta, Ga. (January 12, 2023) - Atlanta Appellate Partners Seth M. Friedman and Christopher Meeks obtained a significant appellate win on behalf of a city in North Carolina when the North Carolina Court of Appeals reversed the trial court’s denial of the city’s motion for summary judgment.
In the underlying case, Lewis Brisbois’ client was sued for injuries that occurred during the construction of a dog park. The city moved for summary judgment on the grounds that it was immune from suit under the doctrine of governmental immunity. The trial court denied the motion and held that the city waived its governmental immunity through the purchase of a liability insurance policy. Lewis Brisbois was subsequently retained to handle the appeal.
Before the North Carolina Court of Appeals, Lewis Brisbois argued, on behalf of its client, that well-established North Carolina law, along with a particular provision in the city’s insurance policy, rendered the city immune from the plaintiff’s claims. The appellate court agreed, holding that the city was immune from all liability and entitled to summary judgment on all of the plaintiff’s claims. The court's full opinion can be read
here.
Reprinted courtesy of
Sam Friedman, Lewis Brisbois and
Christopher Meeks, Lewis Brisbois
Mr. Friedman may be contacted at Seth.Friedman@lewisbrisbois.com
Mr. Meeks may be contacted at Christopher.Meeks@lewisbrisbois.com
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Court Voids Settlement Agreement in Construction Defect Case
September 01, 2011 —
CDJ STAFFA U.S. District Court Judge in Florida has ruled in favor of a company that sought to void a settlement agreement. The case, Water v. HDR Engineering, involved claims of construction defects at Florida’s C.W. Bill Young Regional Reservoir. The Tampa Bay Water Authority attributed these to both HDR Engineering’s design and Bernard Construction Company which had built the embankment. Bernard Construction filed a complaint against their subcontractor, McDonald.
Tampa Bay Water settled with Bernard Construction and McDonald, in an agreement that set a minimum and maximum settlement, but also would “prohibit Barnard and McDonald from presenting any evidence on several claims and positions of TBW, to require Barnard to call certain witnesses at trial, to preclude Barnard and McDonald from calling other witnesses, and to restrict the filing of trial and post-trial motions.” HDR Engineering moved to void the agreement as collusive.
The judge that the agreement¬? contained “133 paragraphs of ‘Agreed Facts’ that the parties stipulated would survive any order declaring the Settlement Agreement void or unenforceable.” He characterized these as stipulating “that Barnard neither caused nor contributed to TBW’s damages.” HDR motioned that a summary judgment be given to Barnard Engineering.
The court found that “the evidence identified by TBW is patently insufficient to survive summary judgment.” Further, TBW’s expert initially held Barnard responsible for “lenses, pockets, streaks and layers within the embankment,” but then later withdrew this assigning the responsibility to HDR. Further, the court notes that, “TBW’s arguments that lenses, pockets, streaks, and layers in the soil wedge caused or contributed to its damages and that Barnard is liable for those damages have been foreclosed by the Agreed Facts.”
As TBW failed to provide sufficient evidence to withstand summary judgment, the court granted summary judgment, mooted the claim against McDonald, and terminated the agreement between TBW and the other parties.
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London Office Builders Aren’t Scared of Brexit Anymore
May 26, 2019 —
Jack Sidders - BloombergFor London office developers at least, the Brexit waiting game is over.
Developers mostly steered clear of doing new projects on spec in the political upheaval that followed the U.K.’s 2016 vote to leave the European Union. Now the surprising resilience of London’s office market, highlighted by technology giants like Alphabet Inc. committing to open new bases in the city, has convinced them that it’s time to break ground.
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Jack Sidders, Bloomberg
Real Estate & Construction News Roundup (05/17/23) – A Flop in Flipping, Plastic Microbes and Psychological Hard Hats
May 29, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, we look at a downturn in home-flipping and a continuing overabundance of commercial office space, plus psychological support for construction workers and surging demand for industrial space materials.
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Pillsbury's Construction & Real Estate Law Team
Pollution Exclusion Found Ambiguous
May 23, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe Mississippi Supreme Court found the pollution exclusion ambiguous under the facts presented. Omega Protein, Inc. v. Evanston Ins. Co., 2022 Miss. LEXIS 90 (Miss. March 31, 2022).
Omega Protein, Inc., entered a contract with Ascu-fab to perform welding and other fabrication work at their facility. Accu-fab was required to have CGL coverage naming Omega as an additional insured. Accu-fab purchased a $1 million primer policy from Colony Insurance Company and a $5 million excess policy issued by Evanston Insurance Company.
Accu-fab performed welding and other fabrication work on a large metal storage tank used for the temporary storage of stickwater, which was a liquid composed of water, fish oil, and fish solids. An explosion occurred at the Omega plant while Accu-fab workers were welding and grinding on a large metal tank that was used for the temporary storage of stickwater. One of Accu-fab's workers , Jerry Lee Tayler, was killed, another was seriously injured, and still others suffered less serous injuries.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Insurer Has No Obligation to Cover Arbitration Award in Construction Defect Case
May 22, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe court determined there was no coverage for an adverse arbitration decision suffered by the insured in a construction defect case. Am. Fire and Cas. Co. v. Unforgettable Coatings, Inc., 2023 U.S. Dist. LEXIS 64846 (D. Nev. April 13, 2023).
Unforgettable contracted with Muirfield Village Homeowner's Association for painting and related services. Following completion of the project, Muirfield alleged that Unforgettable's work was defective and filed suit. The parties agreed to arbitration. The arbitrator found that Unforgettable breached the contract and its implied warranty. Damages were awarded to Muirfield.
American Fire and Casualty Company (AFCC) was Unforgettable's insurer and defended Unforgettable at the arbitration. AFCC sued for a declaration that it had no obligation to indemnify Unforgettable for the damages awarded. Unforgettable and Murifiled counterclaimed, alleging that AFCC breached the policy by not covering the award, as well as a variety of extracontractual claims related to the investigation process. AFCC moved for judgment on the pleadings. The motion was granted with leave to amend.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com