July 1, 2015 Statutory Changes Affecting Virginia Contractors and Subcontractors
June 10, 2015 —
Christopher G. Hill – Construction Law MusingsAs always seems to be the case, this year, as in others, the Virginia General Assembly has seen fit to “tweak” a few construction related statutes. All of these changes will go into effect on July 1, 2015.
The big one, and one that I posted about a while back is the change to the Virginia mechanic’s lien statute to prohibit contractual waiver of lien, payment bond or claims for additional costs prior to the furnishing of labor or materials. This one is big because it relieves a bit of the angst in the pre-contract negotiations between subcontractors and general contractors.
Another significant change, this one to the wording of Virginia Code 2.2-4309, found in House Bill 1628, clarifies the fact that this Virginia statute does not limit the amount a government contractor may claim or recover against a public body under a contract dispute. This is a big one considering the ruling in the Carnell Construction Corp. v. Danville Redevelopment Housing Authority LLC limiting such claims.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Colorado SB 15-177 UPDATE: Senate Business, Labor, & Technology Committee Refers Construction Defect Reform Bill to Full Senate
April 01, 2015 —
Derek J. Lindenschmidt – Higgins, Hopkins, McLain & Roswell, LLCOn March 18th, following a lengthy hearing with testimony and questioning for and against Senate Bill 15-177, the Senate Business, Labor & Technology Committee voted 6 to 2 to refer the bill, with new amendments, to the full Senate.
While the main points of the bill remain strongly intact (check here for Senate Bill 177’s particulars), bill sponsors Senators Scheffler and Ulibarri offered four amendments, designed to bring additional compromise and clarity to the bill. The committee ultimately adopted these amendments, described below.
Amendment 16 removed a prior prohibition in the bill that would have prevented attorneys from assisting in the preparation of the notice required to be provided to all homeowners before the commencement of a construction defect claim. Amendment 19 complemented 16 by providing further clarification regarding the contents and specificities required in said notice, including a disclosure of projected attorneys’ fees, costs, duration, and financial impact of pursuing construction defect claims. Amendment 17 permitted homeowners to approve the pursuit of construction defect claims through written consent. Lastly, Amendment 18 provided clarification regarding the bill’s requirement that mediators and arbitrators be selected and approved through mutual agreement of the parties.
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Derek J. Lindenschmidt, Higgins, Hopkins, McLain & Roswell, LLCMr. Lindenschmidt may be contacted at
lindenschmidt@hhmrlaw.com
Reservation of Rights Letter Merely Citing Policy Provisions Inadequate
February 14, 2023 —
Tred R. Eyerly - Insurance Law HawaiiIn an unpublished opinion, the Fourth Circuit affirmed the district court's finding that the insurers' reservation of rights letters did not provide a basis for denial of coverage. Stoneiedge At Lake Keowee Owners Ass'n Inc. v. Cincinnati Ins. Co., 2022 US. App. LEXIS 34292 (4th Dist. Dec. 13, 2022).
The Stoneledge AOAO sued the general contractor Marlick Home Builders, LLC and other defendants after construction of 37 units. The complaint alleged construction defects that resulted in water intrusion and other physical damage. Marlick notified its insurers, Cincinnati Insurance Company and Builders Mutual. Various reservation of rights letter were sent by the insurers.
In the underlying case, a judgment was entered against Marlick totalling approximately $1.6 million. As a judgment creditor of Marlickm, Stoneledge sued Cincinnati and Builders Mutual. The district court granted Stonelege's motion for summary judgment, primarily on the ground that the insurers failed to reserve the right to contest coverage.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Insurance Policy to Protect Hawaii's Coral Reefs
December 26, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe New York Times recently reported on an insurance policy issued to the non-profit Nature Conservancy to protect coral reefs in Hawaii. Cihistopher Flavelle, Catrin Einhorn, In a First, Nonprofit Buys Insurance for Hawaii's Threatened Coral Reefs, N.Y. Times, Nov. 21, 2022.
If damaged by a storm, coral reefs need immediate attention if they are going to recover. The Nature Conservancy plans a four step process to save damaged reefs:
- Purchase a policy for all 400,000 acres of coral reefs surrounding the Hawaii island.
- If reefs are sufficiently damaged by a storm the policy will pay out within two weeks.
- The Nature Conservancy will ask the State of Hawaii, owner of the reefs, for a permit to repair the storm damage.
- Finally, if the state officials issue the permit, the insurance proceeds will pay teams of divers to repair the damage. Crews will have about six weeks before coral begins to die.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
NY Supreme Court Rules City Not Liable for Defective Sidewalk
February 12, 2014 —
Beverley BevenFlorez-CDJ STAFFEileen N. Fanning sued the city of Watertown, New York after incurring injuries from a fall on a sidewalk on Court Street, according to the Watertown Daily Times. A state Supreme Court judge dismissed the lawsuit.
According to Fanning as reported by the Watertown Daily Times, the plaintiff “fell on an uneven section of sidewalk” and “suffered multiple broken bones in her hand, as well as neurological damage to her arm, among other injuries.” She claimed that the damage is permanent. The lawsuit involved Purcell Construction (the landscape pavers), Neighbors of Watertown (a renovation project), and the city of Watertown.
The judge ruled that “Neighbors of Watertown was not liable for her injuries because the agency neither owned nor controlled the property where the injuries occurred and therefore ‘did not owe a duty of care’ to users of the walk as it was not responsible for the sidewalk’s maintenance.” The city was not held liable “because it had received no prior written notice about the alleged defective condition of the property.” Furthermore, the judge “agreed with Purcell Construction’s claim that the area claimed to be defective is ‘one little section’ of sidewalk ‘over which the public walked’ for nearly 20 years.”
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Asbestos Client Alert: Court’s Exclusive Gatekeeper Role May not be Ignored or Shifted to a Jury
February 07, 2014 —
Lee Marshall and Chandra L. Moore - Haight Brown & Bonesteel, LLPIn Estate of Henry Barabin v. AstenJohnson, Inc., - F.3d -, 2014 U.S. App. LEXIS 774, 2014 WL 129884 (9th Cir., Jan. 15, 2014) en banc, the Ninth U.S. Circuit Court of Appeals vacated a $10.2 million judgment in the Plaintiffs’ favor in a case where Plaintiff alleged that occupational exposure to asbestos from dryer felts caused his mesothelioma. The Ninth Circuit held that the district court abused its discretion by neglecting its duty as a “gatekeeper” under Daubert v. Merrell Dow Pharms., 509 U.S. 579, 113 S. Ct. 2786, 125 L. Ed. 2d 469 (1993), and Federal Rule of Evidence 702, by improperly admitting expert testimony at trial without first determining its reliability. The en banc court held that admitting the testimony on the debated theory that “each asbestos fiber causes mesothelioma” was prejudicial error and the court remanded the case for a new trial. The court also held that a reviewing court has the authority to make Daubert findings based on the record established by the district court, but in the instant case, the record was “too sparse” to determine whether the expert testimony was relevant and reliable or not.
This ruling is a victory for the defense in that it reaffirms the federal court’s exclusive gatekeeper role and holds that the role may not be ignored or shifted to a jury. Unfortunately, the court did not go so far as to evaluate the inherent reliability of expert opinions based on the theory that “each asbestos exposure causes mesothelioma.” As such, it did not provide guidance as to what specific foundational requirements are required to admit, or exclude, these types of opinions under a Daubert analysis.
In Barabin, Plaintiff alleged he was exposed to asbestos while working at a paper mill with dryer felts manufactured and supplied by Defendants. The issue was whether the dryer felts substantially contributed to Barabin’s development of mesothelioma, a determination that required expert testimony.
Reprinted Courtesy of Lee Marshall, Haight Brown & Bonesteel, LLP and
Chandra L. Moore, Haight Brown & Bonesteel, LLP
Mr. Lee may be contacted at lmarshall@hbblaw.com and Ms. Moore may be contacted at cmoore@hbblaw.com.
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Taylor Morrison Home Corp’ New San Jose Development
October 15, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Silicon Valley Business Journal reported that Taylor Morrison Home Corp has made the “biggest land acquisition so far in San Jose” after acquiring “an 8-acre chunk of dirt in the developing Montecito Vista area where it has plans to build out 184 townhomes.”
The developer “paid about $32.5 million, or roughly $176,600 per buildable unit, for the land, according to public tax records,” according to the Silicon Valley Business Journal. Construction is scheduled to begin November of 2015 and models should be ready by April of 2016.
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Congratulations to Las Vegas Team on Their Successful Motion for Summary Judgment!
May 06, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPThis case arose from an alleged trip and fall on an uneven surface in a parking lot outside of BWBO’s client’s restaurant. Plaintiff alleged more than $385,000 in past medical specials (with high potential for future care and treatment) with exposure in excess of $1,000,000.00. The Plaintiff named as Defendants BWBO’s client as well as several entities related to their landlord.
Early in the case, Las Vegas Partner Jeffrey W. Saab and Senior Associate D. Ryan Efros moved for summary judgment based on terms of the restaurant’s lease. They argued that based on the lease, the duty to maintain the surface of the parking lot fell exclusively to the landlord, rather than the restaurant’s client. Plaintiff opposed the motion arguing that the prevailing case law held that any agreement between a tenant and its landlord does not preclude a plaintiff from asserting either or both defendants breached their duties of care. Jeff and Ryan distinguished that case and successfully persuaded the Court that there could be no contractual duty and no common law duty to maintain the parking surface, clearing the way for the court to grant summary judgment.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP