Suspend the Work, but Don’t Get Fired
May 20, 2015 —
Craig Martin – Construction Contractor AdvisorGetting paid for your work is often times one of the hardest parts of a project. If you find yourself working without getting paid, it’s easy to think, “I’ll just stop working until I get paid.” While the law may support you in that decision, the contract may not and you may be found in breach of the contract if you walk off the job.
Nebraska Law
Nebraska courts have held that a contractor or subcontractor may stop working on a project if the owner or upstream contractor is in material breach. This, of course, raises the question of “What is a material breach?” The facts of the particular circumstance will control. But, the risk is significant. If the unpaid contractor is wrong, in that the breach is not material, he will face the claim by the upstream party for all costs necessary to finish the contractor’s work. If the upstream party is in material breach, he will face a claim for profit on the remaining portion of the project.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Safety Versus a False Sense of Security: Challenges to the Use of Construction Cranes
March 18, 2019 —
Christopher Machut - Construction ExecutiveThe history of safety is, in part, the history of resistance to safety. From transportation and travel to sports and entertainment, the safeguards taken for granted were once too allegedly controversial or costly for companies to grant to consumers. Imagine driving a car without a seatbelt or being a passenger in a minivan without side-impact airbags or anti-lock brakes, or playing football without a helmet or riding a roller coaster without a shoulder harness. Imagine, too, pulling out of parking space without a rear-view camera, unable to see passing cars or pedestrians.
Cameras are now as common among compact cars as on the most uncommonly expensive sports cars and sedans.
And yet, the technology that earns drivers a discount on car insurance is the same or mostly similar technology that insurers refuse to cover elsewhere. The technologies that makes parallel parking easier or easing a car into traffic a cinch is considered an extravagance on construction equipment, despite the dangers crane operators face but cannot see, despite what workers on the ground can see but not forecast, despite what cameras can record and capture.
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Christopher Machut, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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North Carolina, Tennessee Prepare to Start Repairing Helene-damaged Interstates
October 07, 2024 —
Derek Lacey - Engineering News-RecordDamage from Hurricane Helene to interstates between North Carolina and Tennessee includes washed-out roads and bridges, landslides and extensive flooding—creating a long list of repair work needed for state transportation agencies as they prepare to rebuilding critical highways across the Appalachian Mountains.
Reprinted courtesy of
Derek Lacey, Engineering News-Record
Mr. Lacey may be contacted at laceyd@enr.com
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Montana Federal District Court Finds for Insurer in Pollution Coverage Dispute
October 24, 2021 —
Melanie A. McDonald - Saxe Doernberger & VitaApplying Louisiana law, a recent federal court decision exemplifies why policyholders should thoroughly read claims-made policies to understand when notice is due to insurers and truthfully complete policy applications. In Admiral Insurance Company v. Dual Trucking, Inc.,1 the Court determined the insurer, Admiral Insurance Company (“AIC”), owed no duty to defend or indemnify Dual Trucking and Transport, LLC (“DTT”), Dual Trucking of Montana, LLC (“DTM”), and Dual Trucking, Inc. (“DTI”) (collectively, the “Dual Entities”) under two Environmental Impairment Liability Policies (“EIL Policies”) and four Contractor Pollution Liability Policies (“CPL Policies”). The Court justified its decision because the Dual Entities: 1) did not give notice during the 2012-2013 EIL Policy period; 2) had discovered or knew of, but did not disclose, potential pollution conditions before the inception of the 2013-2014 EIL Policy and before the expiration of the extended reporting period of the 2012-2013 EIL Policy; 3) failed to provide AIC with notice during the extended reporting period of the 2013-2014 EIL Policy of claims for which the Dual Entities were seeking coverage; and 4) materially misrepresented known facts on the CPL Policy applications.
I. Factual Background.
The Dual Entities were Louisiana-based companies that provided oilfield equipment rental services. In 2011, the Dual Entities leased land in Montana under three leases, collectively referred to as “the Bainville site.” Shortly afterward, the Dual Entities applied for, and AIC issued, an EIL Policy and two CPL Policies with a policy period of October 1, 2012, to October 1, 2013. AIC renewed all three policies for the October 1, 2013, to October 1, 2014, policy period.
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Melanie A. McDonald, Saxe Doernberger & VitaMs. McDonald may be contacted at
MMcDonald@sdvlaw.com
Best Practices for ESI Collection in Construction Litigation
October 05, 2020 —
Kelley J. Halliburton - Construction ExecutiveThe construction business has always been heavy on records and data but now more than ever much of that information is stored electronically. Gone are the days of just a trailer full of drawings and paper documents.
Construction projects now have huge amounts of electronically stored information (ESI) including contract documents; drawings in both CAD, PDF and other formats; schedule files such as Primavera; spreadsheets; photos; job cost control software files; formal correspondence; and an ever-expanding amount of email communications. Successful collection of this ESI can be critical to the success of litigation in construction cases, where often very complex facts will need to be gathered to support a claim or defense.
The best first step to a successful ESI collection is to build a solid foundation before trouble arises with prepared policies and procedures in place. Implementing and enforcing a document management plan on a project basis will make sure documents are kept in an organized fashion so that materials can be accessed quickly and easily. Document management is important for types of ESI that are not handled well by word-searches, including Primavera schedules, photos and videos.
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Kelley J. Halliburton, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Wisconsin Court of Appeals Re-affirms American Girl To Find Coverage for Damage Caused by Subcontractors
September 20, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe trial court's finding of no occurrence and no property damage due to faulty workmanship was reversed by the appellate court. No. 5 Walworth v. Engerman Contracting, Inc., 2021 Wis. App. LEXIS 401 (Wis. Ct. App, July 30, 2021).
Engerman was the general contractor on a construction project at a residence. Engerman was hired to build a poll complex. Engerman subcontracted the project to Downes Swimming Pool Co., Inc. Downes purchased shotcrete (sprayed concrete) from Otto Jacobs Company LLC for the swimming poll walls and base.
After completion, the pool immediately began leaking. An investigation determined that the shotcrete material was not installed correctly, contributing to cracking in the pool walls and the steel reinforcing bars were not sufficient to prevent cracks in the pool walls. The owner demolished the pool and constructed a new one. Thereafter, the owner sued Engerman, its insurers (General Casualty Company of Wisconsin and West Bend Mutual Insurance Company) and Downes and its insurer. Downes filed a third-party complaint against Jacobs and its insurer (Acuity Mutual Insurance Company) alleging Jacobs negligently provided inferior shotcrete to Downes.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Does Your 998 Offer to Compromise Include Attorneys’ Fees and Costs?
June 15, 2017 —
Anthony J. Carucci - Snell & Wilmer Real Estate Litigation BlogIn California, the “prevailing party” in litigation is generally entitled to recover its costs as a matter of law. See Cal. Code Civ. Proc. § 1032. But under California Code of Civil Procedure section 998, a party may make a so-called “offer to compromise,” which can reverse the parties’ entitlement to costs after the date of the offer, depending on the outcome of the litigation. Cal. Code Civ. Proc. § 998. The potential payoff of a 998 offer to compromise is explained in section 998(c)(1):
If an offer made by a defendant is not accepted and the plaintiff fails to obtain a more favorable judgment or award, the plaintiff shall not recover his or her postoffer costs and shall pay the defendant’s costs from the time of the offer.
Cal. Code Civ. Proc. § 998(c)(1) (emphasis added).
The Basic Requirements for a Valid 998 Offer
Pursuant to section 998(b), a 998 offer must satisfy three principal conditions: (1) it must be contained in a writing; (2) it must state the terms and conditions of the proposed judgment or award; and (3) it must contain a provision allowing the offeree to accept the offer by signing a statement to that effect. Cal. Code Civ. Proc. § 998(b).
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Anthony J. Carucci, Snell & WilmerMr. Carucci may be contacted at
acarucci@swlaw.com
Construction Defect Claim Did Not Harm Homeowner, Court Rules
September 30, 2011 —
CDJ STAFFThe Minnesota Court of Appeals has ruled in Creswell v. Estate of Howe, a case in which a woman bought a home and then sued the seller’s estate, both sets of real estate agents, and the homeowner’s association over construction defects. A district court ruled against her, granting summary judgment to the other parties.
After buying a townhome “as is,” Catherine Creswell claims to have shared a thought with her agent that the homeowners association was, in the words of her agent, “trying to hide something.” Later, Creswell found that a few days before her closing, the board had discussed problems with “roofs, siding and soundproofing of the townhomes.” The court noted that “it was clear from the documents that appellant [Creswell] received that the association had known about various construction defects for many years, some of which affected [her] unit.”
Creswell initially sued the estate, the man who negotiated the sale for his mother’s estate, the real estate companies and the agents involved, the homeowners association, and four board members. Later she sued for punitive damages, dropped a claim for interference with contractual relations, and dismissed her claims against the individual board members. The court dismissed all of Creswell’s claims awarding costs to those she sued.
The appeals court has affirmed the decision of lower court, noting that Creswell “did not provide us with any argument why the district court erred in dismissing her unjust-enrichment, breach of contract, or rescission claims against the various respondents.” Nor did she provide evidence to support her claims of “breach of duty, fraud, and violation of consumer protection statutes.”
The court noted that Creswell could not sue the homeowners association over the construction defects because she “failed to prove that she was damaged by the association’s nondisclosure.” The court noted that “there are no damages in this case,” as Creswell “was never assessed for any repairs, she had not paid anything out-of-pocket for repairs, and she has presented no evidence that the value of her individual unit has declined because of the alleged undisclosed construction defects.”
The court granted the other parties motion to dismiss and denied Creswell’s motion to supplement the record. Costs were awarded to the respondents.
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