Construction Litigation Roundup: “Stop - In the Name of the Law!”
August 07, 2023 —
Daniel Lund III - LexologyIn a 5-4 decision, the United States Supreme Court settled a split among the federal appellate circuits on whether appeal of a district court refusal to compel arbitration stays the underlying litigation in the district court.
Having been denied relief by the district court on its motion to compel arbitration, plaintiff filed an interlocutory appeal to the Ninth Circuit under the Federal Arbitration Act, 9 U. S. C. §16(a), which authorizes an interlocutory appeal from the denial of a motion to compel arbitration. Plaintiff asked the district court to stay its proceedings pending resolution of the interlocutory appeal. The district court refused, and the Ninth Circuit also declined to stay the lower court proceedings pending appeal.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Corps Releases Final Report on $29B Texas Gulf Coast Hurricane Defense Plan
October 11, 2021 —
James Leggate - Engineering News-RecordA $28.87 billion plan to protect the Texas Gulf Coast’s residents and infrastructure against hurricanes and storm surge with a series of coastal storm risk management and ecosystem restoration projects took a step closer to reality Sept. 10 with the release of a final feasibility report and final environmental impact statement from the U.S. Army Corps of Engineers and Texas General Land Office (GLO).
Reprinted courtesy of
James Leggate, Engineering News-Record
Mr. Leggate may be contacted at https://www.enr.com/leggatej@enr.com
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Insurer Beware: Failure to Defend Ends with Hefty Verdict
June 01, 2011 —
Douglas Reiser, Builders Council BlogServed with a lawsuit that you turned over to your insurer? Insurer refusing to defend you? Well, find some hope in this news. Washington’s IFCA has the claws to ensure that insurers perform their duties.
Contractors heavily rely on the defense provisions of their Commercial General Liability (CGL) policies. In construction, a legal dispute can easily rear its head when you least expect it. Luckily, Washington registered contractors are required to maintain CGL insurance. That insurance often provides contractors with adequate legal defense in the event that they are sued.
But, what if your insurer turns down the defense request? They might be staring at massive damages. A current Reiser Legal client, Australia Unlimited, Inc., recently won a large verdict against Hartford Insurance, after the insurer unreasonably denied their claim. The firm who represented Australia Unlimited Inc. in that case, Hackett Beecher and Hart, were successful in procuring a $5.43 Million verdict
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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com
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California’s Labor Enforcement Task Force Continues to Set Fire to the Underground Economy
February 16, 2016 —
Evelin Y. Bailey – California Construction Law BlogIf you’re a fan of the Hunger Games trilogy, either the books or the movies, you’re likely familiar with “The Hob,” the black market in District 12 where people buy and sell banned items. It’s where bow-wielding protagonist Katniss Everdeen and her childhood friend Gale Hawthorne sell their poached game and where, in the movie but not the book (what can we say, we’re fans), Katniss obtains the “mockingjay” pin which she is later associated with. While The Hob is largely ignored by soldiers of the totalitarian “Capitol,” in the third book Catching Fire, the Hob is reduced to a pile of rubbish and ash by the Capital as an example to punish the insurrectionists led by Katniss.
The Labor Enforcement Task Force (LETF), a joint task force composed of several of California’s agencies including the Contractors State License Board, Department of Industrial Relations and Employment Development Department is also setting fire, at least figuratively, to California’s underground economy. See our earlier post Joint Labor Task Force Targets Underground Economy for further background on LETF.
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Evelin Y. Bailey, Wendel Rosen Black & Dean LLPMs. Bailey may be contacted at
ebailey@wendel.com
What is a Civil Dispute?
August 07, 2018 —
Bremer Whyte Brown & O’MearaBroadly speaking, all lawsuits can be put into one of two categories: criminal or civil. Criminal cases are brought by the government against a private person and/or organization for committing an act that is considered harmful to society as a whole; whereas civil cases involve private disputes between individuals and/or organizations.
Civil litigation begins when one person or organization claims that another person or organization has failed to carry out a legal duty owed to the claimant. Legal duties are those prescribed either by contract between the parties, or by the law.
In order for a claimant to commence legal action against another party, the claimant must file a summons and complaint with the court and serve a copy of the summons and complaint on the party against whom the lawsuit is being brought. The person who brings the lawsuit is called the “Plaintiff” and the person against whom the lawsuit is brought is called the “Defendant.”
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Bremer Whyte Brown & O’Meara
California Senator Proposes Bill to Require Contractors to Report Construction Defect Cases
January 04, 2018 —
David Suggs - Bert L. Howe & Associates, Inc.According to Renne Schiavone’s of Patch.com in her article “Sen. Hill Wants Contractors to Report Construction Defect Cases”, Senator Jerry Hill of San Mateo County proposed a bill on December 21st, 2017 requiring construction defect settlements to be reported by contractors to the licensing board. This proposal comes after the tragic incident that took place back on June 16, 2015 during which a balcony on the fifth floor of a Berkeley apartment complex collapsed. This resulted in the death of six students and serious injuries for an additional seven individuals.
An investigation revealed that three years prior to the balcony collapse, Segue Construction, who built the apartment complex, had paid $26.5 million in construction defect lawsuit settlements. Since the law doesn’t require these settlements to be reported by contractors, the Contractors State License Board (CSLB) wasn’t aware of the case.
"Working together we can take even stronger steps to protect the public by ensuring that this critically important data is accessible to the Contractors State License Board," said Senator Hill. Senate Bill 465 will aim to protect consumers with more regulation and transparency. Senator Hill is also working on Senate Bill 721 which would require periodic condo and apartment building inspections of exterior elevated walking surfaces, stairwells, and balconies.
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California Indemnity and Defense Construction Law Changes for 2013
April 03, 2013 —
William L. Porter, Esq. - Porter Law GroupDeath of “Type 1” Indemnity in California Construction
For many years the prevalence of the “Type 1” indemnity clause has been the subject of fierce debate within the construction industry. Subcontractors have complained that they are saddled with indemnity obligations that require them to indemnify contractors from construction-related claims for which these subcontractors are truly not responsible. In defense, contractors have argued that they must be entitled to the freedom to set contractual terms to best protect themselves and they point out that subcontractors are certainly free to negotiate better terms or turn down work.
After many years of debate and small legislative inroads in prohibiting Type 1 indemnity in residential projects and where it concerns the “sole negligence”, “willful misconduct” or the “design defects” of others, the California legislature has finally spoken broadly and definitively on the issue of Type 1 indemnity clauses in construction contracts. Under new Civil Code section 2782, beginning with contracts entered into on or after January 1, 2013, broad “Type 1” indemnity clauses shall be void and unenforceable in the context of both private and public construction projects in California. Civil Code section 2782 now makes it clear that subcontractors can no longer be required to indemnify against another’s active negligence in connection with construction contracts, whether public or private.
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William L. Porter, Esq.William L. Porter, Esq. can be contacted at
bporter@porterlaw.com
Fine Art Losses – “Canvas” the Subrogation Landscape
February 26, 2024 —
William L. Doerler - The Subrogation StrategistIf a fire or flood destroys a high-net-worth client’s fine art collection, an insurer who pays out a claim related to the loss has an incentive to pursue subrogation. This article explores some of the issues an insurer should “canvas” before pursuing subrogation for these types of claims.
Damage to fine art can occur in a number of ways. For instance, fine art may be damaged in a natural disaster – such as a flood or a wildfire. Artwork may also be accidentally damaged because of a transportation-related incident physically damaging the art. In addition, artwork may suffer fire or smoke damage from a fire within a building. Another possibility is that the artwork suffers damage because of renovations either to the insured’s home or a neighboring property. For example, a renovation contractor may damage artwork due to vibrations or leaking water. A construction worker, moreover, may turn with a tool in his hand, or trip and fall, damaging the artwork.
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William L. Doerler, White and Williams LLPMr. Doerler may be contacted at
doerlerw@whiteandwilliams.com