The Colorado Supreme Court holds that loans made to a construction company are not subject to the Mechanic’s Lien Trust Fund Statute
February 21, 2013 —
W. Berkeley Mann, Jr. — Higgins, Hopkins, McLain & Roswell, LLCIn a prior blog post, we summarized the Court of Appeals decision in the case of AC Excavating, Inc. v. Yale, ___ P. 3d. ___, 2010 WL 3432219 (Colo. App. Sept. 2, 2010) which provided an interpretation of the Colorado Mechanic’s Lien Trust Fund Statute, C.R.S. § 38-22-127 (hereafter “the Trust Fund Statute”). A divided Court of Appeals reversed the trial court, and held that capital loans infused into a limited liability company which performed construction could be subject to the provisions of the Trust Fund Statute.
The Court of Appeals reasoned that this determination was necessary because the statute was considered applicable to “all funds disbursed on a construction project.” Additionally, the Court of Appeals held that the intent of the provider of funds was not relevant, and that the statute applied “irrespective of the [originator of the funds]’s intended use of the funds.”
This decision was reviewed by the Colorado Supreme Court in an opinion released on February 4, 2013, and it reversed the Court of Appeals’ decision. See, Yale v. AC Excavating, Inc., ___ P. 3d. ___, 2013 WL 441895 (Colo. Feb. 4, 2013). The Supreme Court strongly disagreed that loaned or infused capital funds which were obtained by the general contractor entity were “funds disbursed on a construction project,” simply because some of the infused monies were used for operational purposes to pay down specific project obligations.
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W. Berkeley Mann, Jr.mann@hlmrlaw.com
Chutes and Ladders...and Contracts.
November 25, 2024 —
Daniel Lund III - LexologyA contractor which designed and constructed a hydroelectric plant in Guatemala sued under the Federal Arbitration Act in federal court in Florida to overturn a project-related arbitration decision, “on the basis that the Tribunal had exceeded its powers.” That petition was denied based upon Eleventh Circuit precedent which foreclosed that challenge under the FAA for an arbitration conducted “under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards,” a.k.a., the “New York Convention.”
The U. S. 11th Circuit initially affirmed the lower court decision, but then upon an en banc rehearing reversed: holding that in a New York Convention case where the arbitration seat is in the U. S., or where United States law governs the arbitration conduct, “Chapter 1 of the FAA provides the grounds for vacatur of the arbitral award. … § 208 of the FAA provides that ‘Chapter 1 applies to actions and proceedings brought under [Chapter 2] to the extent that chapter is not in conflict with [Chapter 2] or the [New York] Convention as ratified by the United States.’ …Chapter 1 of the FAA… thus acts as a gapfiller and provides the vacatur grounds for an international arbitration award otherwise governed by Chapter 2.”
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Texas Supreme Court Holds that Invoking Appraisal Provision and Paying Appraisal Amount Does Not Insulate an Insurer from Damages Under the Texas Prompt Payment of Claims Act
September 16, 2019 —
John C. Eichman & Grayson L. Linyard - Hunton Insurance Recovery BlogIn two cases decided June 28, 2019, the Texas Supreme Court held that an insurer’s invocation of a contractual appraisal provision after denying a claim does not as a matter of law insulate it from liability under the Texas Prompt Payment of Claims Act (“TPPCA”). But, on the other hand, the court also held that the insurer’s payment of the appraisal award does not as a matter of law establish its liability under the policy for purposes of TPPCA damages.
In Barbara Techs. Corp. v. State Farm Lloyds, No. 17-0640, 2019 WL 2666484, at *1 (Tex. June 28, 2019), State Farm Lloyds issued property insurance to Barbara Technologies Corporation for a commercial property. A wind and hail storm damaged the property, and Barbara Tech filed a claim under the policy. State Farm denied the claim, asserting that damages were less than the $5,000 deductible.
Barbara Tech filed suit against State Farm, including for violation of the TPPCA. Six months later, State Farm invoked the appraisal provision of the policy. More than a year after the suit was filed, appraisers agreed to a value of $195,345.63. State Farm then paid that amount, minus depreciation and the deductible. Barbara Tech amended its petition to include only TPPCA claims.
Reprinted courtesy of
John C. Eichman, Hunton Andrews Kurth and
Grayson L. Linyard, Hunton Andrews Kurth
Mr. Eichman may be contacted at jeichman@HuntonAK.com
Mr. Linyard may be contacted at glinyard@HuntonAK.com
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Over 70 Lewis Brisbois Attorneys Recognized in 4th Edition of Best Lawyers: Ones to Watch in America
September 25, 2023 —
Lewis Brisbois(August 17, 2023) – 75 Lewis Brisbois attorneys across 25 offices have been named to the 4th edition of
"Best Lawyers: Ones to Watch in America." Congratulations to the following attorneys on this recognition!
You can see the full list of Lewis Brisbois attorneys named to Best Lawyers' 30th edition of
The Best Lawyers in America here.
Akron, OH
- Associate Meleah M. Skillern – Commercial Litigation
Atlanta, GA
- Partner Candis R. Jones - Insurance Law, Medical Malpractice Law – Defendants, and Personal Injury Litigation – Defendants
Boston, MA
- Partner Amanda Mathieu - Labor and Employment Law – Management
Charleston, WV
- Partner Sophie L. Johns - Product Liability Litigation - Defendants
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Lewis Brisbois
Hudson River PCB Cleanup Lands Back in Court
September 03, 2019 —
Mary B. Powers - Engineering News-RecordAs it previously had warned, New York state on Aug. 21 filed a federal lawsuit against the U.S. Environmental Protection Agency seeking to reverse its certification that General Electric Co.'s removal of PCBs from the Hudson River was complete, despite the agency’s five-year review finding that the cleanup was not adequate to protect human health and the environment.
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Mary B. Powers, ENRENR may be contacted at
ENR.com@bnpmedia.com
Midview Board of Education Lawsuit Over Construction Defect Repairs
February 04, 2014 —
Beverley BevenFlorez-CDJ STAFFMidview Local Schools Board of Education in Grafton, Ohio, “filed a lawsuit asking Lorain County Common Pleas Court to order the Ohio School Facilities Commission to help pay for repairs on three new schools,” according to The Morning Journal. Scott Goggin, Midview’s Superintendent, told The Morning Journal: “Water-stained ceilings and weeping windows in three new elementary schools, built with financial help and cooperation of the OSFC Expedited Local Partnership Program, irritated the district for months.”
“The lawsuit,” as reported by The Morning Journal “claimed other school districts received financial help from the state when correcting repairs to their schools built through the same program.” Furthermore, the lawsuit stated that “OSFC failed to assess the total classroom facilities needs of the school district, and to share the costs of repairing defects.”
The Morning Journal reported, “The lawsuit asks for restitution of the state’s share of correcting the construction defects, the costs of the lawsuit and reasonable attorney’s fees, and further relief the court decides is just and fair.”
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Commerce City Enacts Reform to Increase For-Sale Multifamily Housing
August 19, 2015 —
David M. McLain – Colorado Construction LigitationMany cities in Denver’s metropolitan areas are experiencing tremendous growth. For more than a year, Colorado has been reported to be in a building boom. However even with the noticeable expansion, some areas still suffer from a lack of housing options specific to multifamily developments. Sean Ford, Mayor of Commerce City, stated that “[the city] has not approved a new condominium or multi-family project since 2008.”[1] Those of us in the construction industry attribute this shortage, at least in part, to construction defect litigation, which is often drawn-out, complicated, and very costly to builders.
Predicting that light rail service will intensify the need for owner-occupied units among Commerce City residents, the city council enacted legislation to address this scarcity. Ordinance No. 2060 which took effect August 1, 2015 provides “reasonable steps to encourage prompt and voluntary correction of construction defects … in order to enhance the health and safety of residents of Commerce City.”
The ordinance requires a homeowner who discovers a defect to provide written notice via certified mail or personal delivery to the responsible builder, contractor, engineer, or design professional. The notice may include requests for relevant construction documentation, maintenance recommendations, and warranty information. The builder must acknowledge receipt of notice and provide requested documents within 14 days.
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David M. McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
Marlena Ellis Makes The Lawyers of Color Hot List of 2022
January 17, 2023 —
Marlena Ellis - White and Williams LLPIn just her first year of practice, Marlena Ellis, Associate, is included in the Lawyers of Color Hot List of 2022.
Marlena joined the firm in 2021 as a full-time associate practicing both Commercial Litigation, Insurance Coverage, and Bad Faith Practice. She advises a variety of clients including corporations, commercial entities and insurance companies in complex disputes and breach of fiduciary duty matters.
The Lawyers of Color Hot List of 2022 honors junior and mid-level attorneys of color who exemplify integrity, leadership, and a passion for diversity in their roles. The selection committee spent months reviewing nominations to identify the right candidates for the list, and Marlena was one of the few chosen for this year.
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Marlena Ellis, White and Williams LLPMs. Ellis may be contacted at
ellism@whiteandwilliams.com