Overtime! – When the Statute of Limitations Isn’t Game Over For Your Claim
August 07, 2022 —
Bradley E. Sands, Jones Walker LLP - ConsensusDocsStatutes of limitations establish the period of time within which a claimant must bring an action after it accrues. An action can be filing a lawsuit and, in some instances, filing a demand for arbitration. But a multi-year construction project could be longer than the applicable statute of limitations. For example, under Delaware or North Carolina law, the statute of limitations for a breach of contract is only three years.1 So a claim for breach of a construction contract that occurred (i.e. accrued) at the beginning of a four-year project under Delaware or North Carolina law may expire before the project is completed.
Generally, a claim accrues at the time of the breach (however, it is important to note that this is not always the case and claim accrual could be the subject of an entirely different article). During the course of a multi-year construction project, proposed change orders or claims for additional compensation can sit, unanswered or unpursued, for months. Or, the parties may informally agree as part of regular project communications to put off dealing with a claim head-on until the end of the project. On certain projects, slow-walking a claim is understandable, as a contractor may be hesitant to sue an owner in the middle of a multi-year project and risk upsetting an otherwise good working relationship. But a delay in formally asserting a put-off claim after it accrues could result in the claim falling subject to a statute of limitations defense.
Read the court decisionRead the full story...Reprinted courtesy of
Bradley E. Sands, Jones Walker LLP (ConsensusDocs)Mr. Sands may be contacted at
bsands@joneswalker.com
United States Supreme Court Upholds Class Action Waivers in Arbitration Agreements
May 24, 2018 —
Amy R. Patton, Jason I. Bluver, & Jeffrey K. Brown - Payne & Fears LLPOn May 21, 2018, the United States Supreme Court held, in a 5-4 decision, that arbitration agreements which mandate individualized resolution of claims (as opposed to class or collective resolution) are enforceable under the Federal Arbitration Act ("FAA"). In doing so, the Court rejected the argument that such "class action waivers" violate Section 7 of the National Labor Relations Act ("NLRA"), which generally protects employees' rights to act "in concert" with one another.
The Court addressed a split created by decisions from three Federal Circuit Courts of Appeal: Epic Systems Corp v. Lewis (7th Circuit), Ernst & Young v. Morris (9th Circuit) and National Labor Relations Board v. Murphy Oil USA (5th Circuit). All three cases involved employees who sought to bring collective or class actions under the Fair Labor Standards Act (the "FLSA"), and their respective employers who sought to enforce pre-dispute arbitration agreements which waived such collective actions and mandated "one-on-one" arbitration of wage disputes. In support of their position, the employees argued that the class and collective action waivers were illegal because they violated the NLRA's prohibition on barring employees from engaging in "concerted activities."
Reprinted courtesy of Payne & Fears LLP attorneys
Amy R. Patton,
Jason I. Bluver and
Jeffrey K. Brown
Ms. Patton may be contacted at arp@paynefears.com
Mr. Bluver may be contacted at jib@paynefears.com
Mr. Brown may be contacted at jkb@paynefears.com
Read the court decisionRead the full story...Reprinted courtesy of
City and Contractor Disclaim Responsibility for Construction Error that Lead to Blast
November 13, 2013 —
CDJ STAFFThe city of Grand Junction, Colorado and their contractor, Aperion Utility Construction, LLC, have both denied any wrongdoing in the construction accident that lead to the destruction of two homes. Aperion was drilling in order to repair traffic signals. Their drill damaged a gas line. In the subsequent explosion, three people were injured and two homes destroyed. Homes for 10 blocks were subsequently evacuated.
The three men who were injured have filed a lawsuit claiming negligence on the part of the contractor and the city. The city has released a report from their insurers that concluded that the city was not responsible.
Read the court decisionRead the full story...Reprinted courtesy of
2018 California Construction Law Update
January 10, 2018 —
Garret Murai – California Construction Law Blog The California State Legislature introduced 2,495 bills during the first year of the 2017-2018 Legislative Session. Of these, 859 were signed into law.
While much political attention was focused on several California laws that could be viewed as California’s rebuke of Washington, including California’s legalization of marijuana, enactment of “sanctuary state” legislation, and bills focused on climate change, 2017 also saw the enactment of a package of bills intended to address the state’s housing affordability crises (for a great summary of these bills see Wendel Rosen’s Landuse Group’s recent article
Slate of New Housing Bills Takes Effect January 1, 2018 ), as well as a range of other bills of interest to the construction industry including bills related construction financing, alternative project delivery methods, and solar construction.
Each of the bills discussed below took effect on January 1, 2018, except as otherwise stated.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Wendel, Rosen, Black, Dean, LLPMr. Murai may be contacted at
gmurai@wendel.com
Timely and Properly Assert Affirmative Defenses and Understand Statutory Conditions Precedent
August 05, 2024 —
David Adelstein - Florida Construction Legal UpdatesA recent case serves as a reminder to TIMELY and PROPERLY assert affirmative defenses and to understand statutory conditions precedent to construction lien claims. Failing to do one or the other could be severely detrimental to the position you want to take in a dispute, whether it is a lien foreclosure dispute, or any other dispute.
In Scherf v. Tom Krips Construction, Inc., 2024 WL 3297592 (Fla. 4th DCA 2024), the president of a construction company and his wife were building a residence. They orally accepted the proposal from the concrete shell contractor and asked for invoices to be submitted to the president’s construction company. No written contract was memorialized. The president and his wife did not pay the concrete shell contractor and the contractor recorded a lien and sued to foreclose on the lien. Years later (the case had been stayed because the president and his wife filed for bankruptcy and the shell contractor had to get leave of the automatic bankruptcy stay to pursue the lien foreclosure), the shell contractor moved for summary judgment. The president and his wife moved for leave to file an amended answer and affirmative defenses. They claimed the oral contract was with the construction company and the shell contractor was required to serve a Notice to Owner under
Florida Statute s. 713.06. Alternatively, they argued that if the oral contract was with the president and his wife, the shell contractor was required to serve a Final Contractor’s Payment Affidavit at least 5 days before filing its lien foreclosure claim, and did not, as required by s. 713.06.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Indemnity Provision Prevails Over "Other Insurance" Clause
December 06, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe Second Circuit predicted that the New York appellate courts would find the contractual indemnity provision prevailed over the application of an "other insurance" provisions. Cent. Sur. Co. v. Metro. Transit Auth., 2021 U.S. App. LEXIS 29860 (2nd Cir. Oct. 5,2021).
Long Island Railroad (LIRR) contracted with general contractor Rukh Enterprises, Inc. to complete a railroad bridge lead paint removal and repainting project on Metropolitan Transit Authority property. Rukh hired subcontractor, East Coast Painting & Maintenance to complete certain lead-related work on the project.
An employee of East Coast suffered an injury while working on the project. The employee sued LIRR and Rukh. A settlement in the underlying case was reached, implicating three of four policies - Admiral (primary for LIRR), Arch (CGL for Rukh), and Harleysville (primary for East Coast). Century Surety (excess liability for Rukh) did not contribute to the settlement and disclaimed all coverage.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Understand Agreements in Hold Harmless and Indemnity Provisions
June 06, 2022 —
Jeffrey Cavignac - Construction ExecutiveOne of the most important provisions in a construction contract is the indemnity provision. An indemnity provision, which usually includes a requirement to hold harmless and defend another party, is included in nearly all construction contracts. Generally speaking, the upstream party (a general contractor or owner, for example) is attempting to shift risk to a downstream party (the general contractor or a subcontractor). In simple terms, subject to certain parameters, the downstream party is agreeing to be responsible for the upstream parties’ mistakes.
DEFINING INDEMNIFICATION
Insurance brokers focused on development and construction businesses get asked frequently: “If we sign this, are we insured?” It would be great if this could be answered “yes” or “no,” but life is rarely that straightforward. To understand whether a specific indemnification is insurable, we have to drill down on the actual provision. Let’s look at a typical indemnification below:
“To the fullest extent permitted by law the Contractor shall indemnify, defend and hold harmless the owner, architect, architect’s consultants and agents and employees of any of them from and against any claims, damages, losses and expenses, including but not limited to attorneys’ fees, arising out of or resulting from performance of the work whether caused in whole or in part by the contractor, a subcontractor, anyone directly or indirectly employed by them or anyone for whose acts they may be liable.”
Reprinted courtesy of
Jeffrey Cavignac, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
2025 Construction Law Update
January 07, 2025 —
Garret Murai - California Construction Law BlogIt’s that time of year again.
The second half of the 2023-2024 legislative session saw the introduction of 2,124 bills, of which, 1418 were signed into law. Among the bills signed by the governor impacting contractors is an increase in the small work licensing exemption for $500 to $1,000, the licensing of Indian tribes by the CSLB, and a number of project-specific bills, as is typical, related to project-specific alternative project delivery methods.
Wishing you and yours a great 2025!
Licensing
AB 2622 – Increases the small work licensing exemption from $500 to $1,000 provided that the work: (1) does not require a building permit; and (2) does not involve the employment of others to perform or assist in the work.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com