Unit Owners Have No Standing to Sue under Condominium Association’s Policy
February 10, 2012 —
Tred R. Eyerly - Insurance Law HawaiiIf a condominium owner suffers damage caused by a leak from another unit, may it sue the insurer for the Association of Apartment Owner (AOAO) for coverage? The federal district court for Hawaii said "no" in a decision by Judge Mollway. See Peters v. Lexington Ins. Co., 2011 U.S. Dist. LEXIS 148734 (D. Haw. December 27, 2011).
Two cases were consolidated. In each case, Plaintiffs owned condominium units at the Watercrest Resort on Molokai. Water leaking from another unit damaged Plaintiffs’ units.
Watercrest Resort was insured by Lexington pursuant to a policy maintained by the AOAO. Plaintiffs filed claims with Lexington. Lexington hired an adjustor.
Unhappy with the adjustment of their claims, Plaintiffs sued Lexington and the adjustor.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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Addressing Safety on the Construction Site
January 27, 2020 —
Christopher G. Hill - Construction Law MusingsFor this week’s Construction Law Musings Guest Post, we welcome a new face, Patrick Rafferty. Patrick (@ThePraff) is a consultant for Brahman Systems and has an interest in construction safety.
First of all, I’d like to say that I am not an attorney. Anything I say in this article should be taken with a grain of salt. All of the information that I have written in this article comes from personal work experience on the worksite.
Each year, construction sites around the nation see hundreds of thousands of injuries related to equipment operation and situations that could be avoidable with the right precautions in place. In 2011 alone, according to the Occupational Safety and Health Administration, there were 4,069 workers killed on a construction site, most of which were avoidable. Though some sort of on-site problems are unavoidable, they can be minimized with simple practices that every construction site should have in place, whether it is the building of a high-rise building or a simple house renovation.
Here are some of the most common issues that lead to injuries on the construction site:
Lack of training
Before anyone steps onto a construction site, they need to have a thorough understanding of not only what they will be doing, but also how to use the equipment involved in the building process. All operators of heavy machinery should have verifiable training on the machine or equipment they will operate. Most equipment dealers offer training as part of their customer service, such as usage manuals, videos and quizzes. Once these are complete, many will offer a certificate of completion at the end of the process. The larger and more complex the machine, the more time should be allotted for training.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Judge Dismisses Suit to Block Construction of Obama Center
April 04, 2022 —
The Associated Press - BloombergChicago (AP) -- A federal judge has dismissed a lawsuit that sought to prevent the construction of the Obama Presidential Center in a park on Chicago's South Side.
In a ruling issued Tuesday, U.S. District Judge Robert Blakey rejected the contention by the group Protect Our Parks that the city's park district improperly gave control of the land in Jackson Park to former President Barack Obama's foundation in violation of the public trust.
The city, Blakey wrote, “did not abdicate control or ownership of the OPC site to the Obama Foundation.”
Citing the state law that governs museums, the judge wrote that the Obama Center will ”confer a public benefit because they ’serve valuable public purposes, including ... furthering human knowledge and understanding, educating and inspiring the public, and expanding recreational and cultural resources and opportunities.”
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Bloomberg
Consider Short-Term Lease Workouts For Commercial Tenants
August 17, 2020 —
Steven Ostrow, C. Jason Kim & Patrick Haggerty - White and WilliamsThe COVID-19 pandemic is adversely affecting commercial real estate as it continues to wreak havoc in industries throughout the economy. For many years, the primary declining CRE sector has been brick and mortar retail stores. However, the retail sector is no longer suffering alone, as the COVID-19 outbreak is hurting most other CRE sectors: office, hospitality, multifamily, restaurant, personal services, entertainment and construction.
Federal, state and local governments have ordered business shutdowns and social and travel restrictions limiting most social and commercial activities. As a result, commercial tenants throughout the country are going out of business, temporarily closing, curtailing operations, laying off employees and suffering sharply declining revenues.
Short-Term Leasing Workouts of Tenant Defaults
Thousands of tenants are partially operating or temporarily closed and lack sufficient cash flow or access to additional working capital to pay some or all of their rent. How should a landlord address a distressed tenant's default and request for rent relief, taking into account the landlord's own responsibilities to pay maintenance costs, real estate taxes and debt service on the property?
Reprinted courtesy of White and Williams attorneys
Steven Ostrow,
C. Jason Kim and
Patrick Haggerty
Mr. Ostrow may be contacted at ostrows@whiteandwilliams.com
Mr. Kim may be contacted at kimcj@whiteandwilliams.com
Mr. Haggerty may be contacted at haggertyp@whiteandwilliams.com
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Guardrail Maker Defrauded U.S. of $175 Million and Created Hazard, Jury Says
October 22, 2014 —
Patrick G. Lee – BloombergSecret changes by Trinity Industries Inc. to its guardrail systems were found to have cheated the U.S. government, exposing the company to $1 billion in damages and penalties and sending shares plummeting as states question the safety of the product.
The east Texas jury’s verdict comes as scrutiny of the highway-safety product called the ET-Plus intensifies across the country after it’s been blamed for multiple deaths. The Federal Highway Administration this month asked all states to start submitting information on crashes involving the ET-Plus to the agency’s safety office.
The agency will evaluate the findings of the case and “consider whether it affects the continued eligibility of the ET-Plus,” Brian Farber, a spokesman for the Department of Transportation, said in an e-mail.
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Patrick G. Lee, BloombergMr. Lee may be contacted at
plee315@bloomberg.net
Anti-Concurrent Causation Clause Bars Coverage for Pool Damage
February 23, 2016 —
Tred R. Eyerly – Insurance Law HawaiiRelying upon the policy's anti-concurrent causation clause, the Illinois Court of Appeals affirmed the trial court's ruling that there was no coverage for a pool that popped out of the ground. Bozek v. Erie Ins. Group, 2015 Ill. App. LEXIS 940 (Ill. Ct. App. Dec. 17, 2015).
Following a rainstorm, the insureds reported damage to the swimming pool to Erie. An investigation determined that the heavy rain saturated soils around the pool. This created a significant uplift hydrostatic pressure. The weight of the water in the pool typically prevented the uplift forces, but the pool had been emptied to clean debris making it susceptible to uplift. The pool had a pressure relief valve to prevent uplift, but it was not working properly.
As a result, the pool was damaged to the point that it had to be replaced in its entirety. The heaving of the pool also damaged the concrete slab around the pool, which also had to be replaced.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Accounting for Payments on Projects Became Even More Crucial This Year
September 21, 2020 —
Christopher G. Hill - Construction Law MusingsI discussed
several of the statutory changes affecting the construction industry here at Construction Law Musings in the run-up to July 1, 2020. One of those changes, an amendment to
Virginia Code Section 43-13, may add another arrow to the collection quiver of subcontractors and suppliers. As part of the previously-linked rundown, I highlighted one of the big additions in 2020, namely the amendment making those pesky clauses that let those up the payment chain from you hold money on “this or any other project” void as against public policy.
The other big addition to 43-13 is the change that adds a possible civil cause of action for downstream and unpaid subcontractors and suppliers in the event that funds paid to a general contractor or subcontractor are not first used to pay their downstream contractors and suppliers. Prior to July 1, 2020, this statute provided criminal penalties for such behavior but did not contain the possibility of a civil penalty. The operative language for the change is as follows:
The use by any such contractor or subcontractor or any officer, director, or employee of such contractor or subcontractor of any moneys paid under the contract before paying all amounts due or to become due for labor performed or material furnished for such building or structure for any other purpose than paying such amounts due on the project shall be prima facie evidence of intent to defraud. Any breach or violation of this section may give rise to a civil cause of action for a party in contract with the general contractor or subcontractor, as appropriate; however, this right does not affect a contractor’s or subcontractor’s right to withhold payment for failure to properly perform labor or furnish materials on the project.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Vacation during a Project? Time for your Construction Documents to Shine!
October 09, 2023 —
Melissa Dewey Brumback - Construction Law in North CarolinaHappy Lazy Day Everyone! What’s that? You didn’t know that August 10th is considered National Lazy Day? Well, it is. And it ties nicely in with today’s theme: how to take a vacation during the thick of the construction project.
Everyone needs a break. You are no different. It can seem, however, that it is impossible to disconnect from the ongoing onslaught of questions, requests for information, change orders, pay applications, and the like. But you can. The key to taking–and enjoying–your vacation is to plan ahead. This is the time for your construction documents to shine. Make sure that your designs are on schedule; make sure that the change orders and RFIs have been processed so there is no backlog. And make sure that your second in command is familiar enough with the day to day details to step into your shoes for the duration.
Then– be sure to give everyone notice. Is it any of their business that you are taking some time off? No. However, everyone procrastinates. So, if you give the entire team advance notice that you will be “off grid” starting on X date, they will be more inclined to get pending issues to you sooner rather than later. They won’t want to be stalled on progress, and with a heads up on when you are out of pocket, they will make it a priority to get requests to you ahead of your departure date.
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Melissa Dewey Brumback, Ragsdale LiggettMs. Brumback may be contacted at
mbrumback@rl-law.com