Ben L. Aderholt Joins Coats Rose Construction Litigation Group
February 25, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to a press release on PR Newswire, “Ben Aderholt has joined Coats Rose law firm's Houston office as Of Counsel.” Aderholt was a “past President of the Houston Bar Association, past Chair of the Mayor's Council and a Director of the State Bar of Texas.” Furthermore, he “has taught commercial law at the University of Houston” and “continues to be active on the Editorial Board of the Construction Law Journal.”
Coats Rose has offices in Houston, Clear Lake, Dallas, Austin, San Antonio, and New Orleans.
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COVID-19 Win for Policyholders! Court Approves "Direct Physical Loss" Argument
October 12, 2020 —
Gregory D. Podolak & Christine Baptiste-Perez - Saxe Doernberger & VitaLate last week, a Missouri federal district court provided a significant victory for insurance policyholders for COVID-19 losses. In Studio 417, Inc. v. The Cincinnati Insurance Company 6:20-cv-03127-SRB (W.D. MO, So. Div., Aug. 12, 2020), the Court was called upon to decide whether allegations involving the presence of COVID-19 in and around physical structures qualify as “direct physical loss or damage” to covered property. For those actively monitoring the COVID-19 insurance coverage litigation landscape, this has been a central question – and hotly contested debate – in virtually all first-party property and business interruption claims. Through a detailed and well-reasoned discussion, the Court answered the question with an emphatic “Yes.”
The Plaintiffs – a proposed class of hair salons and restaurants - purchased “all-risk” property insurance policies (the “Policies”) from Cincinnati. The Policies provide that Cincinnati would pay for “direct ‘loss’ unless the ‘loss’ is excluded or limited.” They also defined a “Covered Cause of Loss” as “accidental [direct] physical loss or accidental [direct] physical damage.” The Policies did not contain a virus exclusion. Anecdotally, Cincinnati has been vocal about the general lack of virus exclusions on its standard forms, having recently publicized that the company considers such exclusions “unnecessary” because, in its view, “a virus does not produce direct physical damage or loss to property.” From Cincinnati’s perspective, the insuring agreement is not triggered by these events, so there’s no need to analyze exclusions. Cincinnati relied heavily on that analysis in this case.
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Gregory D. Podolak, Saxe Doernberger & Vita, P.C. and
Christine Baptiste-Perez, Saxe Doernberger & Vita, P.C.
Mr. Podolak may be contacted at gdp@sdvlaw.com
Ms. Baptiste-Perez may be contacted at cbp@sdvlaw.com
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Timber Prices Likely to Keep Rising
October 30, 2013 —
CDJ STAFFLumber prices are expected to keep rising, and according to Terry Shumacher, who does business acquisition for private equity firms, that’s a sign to invest in lumber stocks. Writing at Seeking Alpha, he looks at one such company, Tembec, the eleventh largest lumber producer in North America. Tembec is headquartered in Canada, but its stock trades on both the Canadian and American markets.
Mr. Schumacher points out that one of the advantages of Tembec as an investment is that its stock is currently trading at about $2.59 a share, so a $50 per million board feet increase in the cost of lumber would make a large percentage change to its earnings to price ratio. (As comparison, Mr. Schumacher offers West Fraser, which is trading at about $89.59. There, the increase in lumber prices would have a much smaller effect on the stock price.)
There’s going to be a greater demand for lumber, not only due to increased housing starts but that North American firms have started exporting lumber to China. Add to that the loss of trees in some areas due to beetle infestations. The death of standing timber has lead to some sawmills shutting down for lack of logs. All of which points to increased timber prices.
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Michigan Court of Appeals Remands Construction Defect Case
February 14, 2022 —
Tred R. Eyerly - Insurance Law HawaiiAfter its prior decision holding there was no coverage for faulty workmanship was remanded by the Michigan Supreme Court, the Court of Appeals remanded to the trial court. Skanska United States Bldg. v. M.A.P. Mech. Contrs., 2021 Mich. App. LEXIS 7336 (Mich. Ct. App. Dec. 28, 2021). The post summarizing the Supreme Court decision is here.
Skanska USA Building was the construction manager on a renovation project at a medical center. Skanska subcontracted the heating and cooling portion of the project to defendant M.A.P. MAP held a CGL policy from Amerisure. Skanska and the medical center were named as additional insureds.
MAP installed a steam boiler and related piping for the heating system. When completed, the heating system did not function properly. MAP installed some of the expansion joints backwards, causing damage to concrete, steel, and the heating system.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Construction Litigation Roundup: “Who Needs Them”
August 28, 2023 —
Daniel Lund III - LexologyWho needs them?
So argued a surety pursuing recovery under its general agreement of indemnity when the indemnitors urged a Louisiana federal court to dismiss the surety’s complaint for failure to join various allegedly required parties as defendants in the litigation.
As part of its court action, the surety moved for preliminary injunction to enforce its collateral security rights. In response thereto, the indemnitors informed the court that if the injunction were to be granted, the indemnitors would “be forced to sell assets that are encumbered by security interests senior to those held by” the surety. In connection therewith, the indemnitors demanded that the other creditors be joined in the action or the lawsuit dismissed. The indemnitors also urged that the public project owner be joined as a party because the surety was seeking proceeds from the project that were still in the possession of the project owner.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Continuing Breach Doctrine
May 28, 2024 —
David Adelstein - Florida Construction Legal UpdatesHave you ever heard of the “continuing breach” doctrine? Probably not. It is not a doctrine commonly discussed. It’s a doctrine used to try to argue around the statute of limitations.
In an older Southern District Court of Florida case, Allapattah Services, Inc. v. Exxon Corp., 188 F.R.Ed. 667, 679 (S.D.Fla. 1999), the court explained: “Under this [continuing breach] doctrine, a cause of action for breach of a contract does not begin to accrue upon the initial breach; rather, on contracts providing serial performance by the parties, accrual of a breach of contract cause of action commences upon the occurrence of the last breach or upon termination of the contract.”
Recently, this doctrine came up in an opinion by Florida’s Fifth District Court of Appeal. In Hernando County, Florida v. Hernando County Fair Association, Inc., 49 Fla.L.Weekly D947b (Fla. 5th DCA 2024), a plaintiff appealed the trial court’s dismissal with prejudice of its breach of contract claim based on the statute of limitations. The plaintiff claimed the defendant breached the contract by its failure to substantially redevelop property. The trial court dismissed based on the statute of limitations. However, the complaint alleged the defendant’s failure to comply “with numerous other intertwined, ongoing, and continuing contractual duties and obligations.” Hernando County, supra. The Fifth District reversed based on the continuing breach doctrine: “Where the nature of the contract is continuous, statutes of limitations do not typically begin to run until termination of the entire contract.” Id. quoting and citing Allapattah Servs., Inc.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Issues to Watch Out for When Managing Remote Workers
July 13, 2020 —
Melissa (Powar) Clarke - Payne & FearsManaging remote workers comes with its share of challenges. The complexities of setting and articulating expectations in a remote work environment – and providing feedback about performance tied to those expectations - adds an additional burden to our already-crowded work lives, particularly for managers who are new to remote supervisory roles.
This article highlights some key issues that arise when managing remote workers.
Issue 1: Insufficient feedback
Annual reviews are not enough. Data clearly reflects that employees who receive regular feedback are happier, and more productive, in their roles. Employees require a “continuous feedback loop” to grow and improve. While many companies started migrating toward continuous feedback before the pandemic, remote work further increases the need for more frequent (formal and informal) check-ins. Organizations must provide management with a toolkit for providing – and receiving – constant feedback, and this toolkit should take into account changes in work styles and modalities of communication when employees are remote. Given the ease with which we can give face-to-face feedback compared to “virtual” feedback, this toolkit becomes even more important when only some employees are remote and others have returned onsite.
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Melissa (Powar) Clarke, Payne & FearsMs. Clarke may be contacted at
mec@paynefears.com
Building Recovery Comes to Las Vegas, Provides Relief
October 01, 2013 —
CDJ STAFFThe recession hit the Las Vegas area hard, and so residents are now relieved as the economy recovers. During the recession, the area lost more than 70,000 construction jobs. Those who remained still found it hard t find work. But KVVU, Las Vegas, spoke with Fredy Salguero, a construction worker who still finds getting a steady paycheck a challenge. “You work like one, two, three days a week, and before you were able to work six or seven.”
The signs are good that better times will be coming for Mr. Salguero. Housing prices are up 30 percent and there are $7 million of commercial projects on the Las Vegas Strip. With the nation’s highest unemployment rate, Nevada needs the help.
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