Pre-Suit Settlement Offers and Construction Lien Actions
July 21, 2018 —
David Adelstein - Florida Construction Legal UpdatesIt is unfortunate, but in certain matters, a construction lien foreclosure action is not actually driven by the principal amount in dispute. Oh no. Rather, it is driven by attorney’s fees. That’s right. Attorney’s fees. This is true even though Florida applies the significant issues test to determine the prevailing party for purposes of attorney’s fees. However, oftentimes the prospect of attorney’s fees is enough for parties to fear that exposure.
There is a 1985 Florida Supreme Court case that I like to cite if applicable, C.U. Associates, Inc. v. R.B. Grove, Inc., 472 So.2d 1177, 1179 (Fla. 1985), that finds, “in order to be a prevailing party entitled to the award of attorney’s fees pursuant to section 713.29 [a construction lien claim], a litigant must have recovered an amount exceeding that which was earlier offered in settlement of the claim.” Accord Sullivan v. Galske, 917 So.2d 412 (Fla. 2d DCA 2006) (explaining that although contractor is receiving a judgment in his favor, he may not be the prevailing party if the homeowner offered to settle prior to the lawsuit for an amount equal to or greater than the award in the judgment).
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
With No Evidence of COVID-19 Being Present, DC Trial Court Finds No Claim for Business Interruption
September 28, 2020 —
Tred R. Eyerly - Insurance Law HawaiiA D.C. Superior Court rejected a business interruption claim due to closures related to the COVID-19 pandemic. Rose's 1, LLC v. Erie Ins. Exchange, Civil Case No 2020 CA 002424 B (Order dated Aug. 8, 2020). The decision is here.
Plaintiffs owned a number of restaurants in the District of Coiumbia. Plaintiffs had commercial property coverage in a policy issued by Erie. The policy provided coverage for loss of income sustained due to interruption of business resulting directly from "loss or damage" to the insured property.
DC Mayor Bowser issued a series of orders in March 2020 which closed all non-essential businesses, including plaintiffs' restaurants. Plaintiffs filed claims with Erie. When coverage was denied, plaintiffs filed suit. Both sides moved for summary judgment.
The dispute centered on whether the closure of the restaurants due to the mayor's orders constituted a "direct physical loss" under the policy. Plaintiffs argued that the loss of use of the restaurants was "direct" because the closures were the direct result of the mayor's orders without intervening action. The court reasoned, however, that the orders were governmental edicts that commanded individuals and businesses to take certain actions. Standing alone and absent intervening actions by individuals and businesses, the orders did not effect any direct changes to the properties.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Charges in Kansas Water Park Death
March 28, 2018 —
David Suggs - CDJ STAFFCaleb Schwab, a 10-year old boy was killed by decapitation on a water slide at a Kansas City water park, Schlitterbahn in 2016. Thirteen other people had suffered injuries on the ride prior to Caleb’s death ranging in severity from broken toes to concussions. Schlitterbahn employees have since claimed that park officials covered up past occurrences of water slide injuries.
Three people have been indicted in this case according to a CNN report by Marlena Baldacci, Sheena Jones and Hollie Silverman. Jeffrey Henry, the co-owner of the Schlitterbahn water park, Tyler Austin Miles, the park’s former director of operations and John Schooley.
Charges include second-degree murder, involuntary manslaughter, aggravated battery and aggravated child endangerment. Caleb suffered a fatal injury when the raft that he and the two women who were riding with him became airborne and contacted the netting attached overhead.
Investigators have found maintenance issues and ride design flaws that violate safety standards leading to lack of prevention of rafts becoming airborne during the ride. Caleb’s family will receive nearly $20 million in the settlement. Caleb’s father Scott, released a statement about placing full trust in the Attorney General Derek Schmidt who is presiding over the investigation and indictments.
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The Future Looks Bright for Construction in 2015
January 21, 2015 —
Craig Martin – Construction Contractor AdvisorAssociated Builders and Contractors’ Construction Executive has painted a rosy outlook for the upcoming year. ABC’s Chief Economist predicts a 7.4 percent increase in total nonresidential spending for 2015. This is great news for a construction industry that has climbing out of the recession through fits and starts over the last several months.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Lease-Leaseback Fight Continues
June 01, 2020 —
Garret Murai - California Construction Law BlogIt’s like the rematch between Rocky Balboa and Apollo Creed.
In the right corner we have the California Taxpayers Action Network. In the left corner, Taber Construction, Inc. The title in contention: Construction of California’s Lease-Leaseback Program and, specifically, whether a construction firm can provide both pre-construction services as well as perform construction or, whether doing so, would be an impermissible conflict of interest under the Lease-Leaseback Law.
In their first appellate court match, California Taxpayers Action Network argued that a lease-leaseback arrangement between Taber Construction and the Mount Diablo Unified School District, whereby the District agreed to lease the site to Taber Construction one dollar (which is permissible) and to pay Taber a “guaranteed project cost” of $14,743,395 comprised of “tenant improvement payments” totaling $13,269,057 prior to the District taking delivery of the project (which was the issue in dispute) and six “lease payment amount[s]” of $345,723 plus interest paid in 30-day intervals, violated the Lease-Leaseback Law because the bulk of the payments by the District to Taber Construction occurred during construction rather than during the lease-term which could only “truly” occur after the District took delivery of the project. The 1st District Court of Appeal sided with Taber Construction, and in doing so created an appellate court split with the 5th District Court of Appeal’s decision in Davis v. Fresno Unified School District, 237 Cal.App.4th 261 (2015), which held that contractor who received all payments prior to turnover of the project to the district violated the Lease-Leaseback Law.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Thinking About a Daubert Motion to Challenge an Expert Opinion?
February 06, 2023 —
David Adelstein - Florida Construction Legal UpdatesWhen you receive an expert opinion, one of the first things you are considering is whether it is worth filing a Daubert motion / challenge. A Daubert motion is a generally a pretrial motion you are using to challenge the admissibility of the expert opinion. Keep in mind this deals with the admissibility, not the credibility, of the expert opinion. A Daubert motion is based on three prongs that must be answered: 1) is the witness qualified to render the expert opinion?; 2) is the expert’s opinion reliable?; and 3) is the expert’s opinion relevant?.
A Daubert motion is premised after Federal Rule of Evidence 702 that provides:
A witness who is qualified as an expert by knowledge, skill, experience, training, or education may testify in the form of an opinion or otherwise if:
- the expert’s scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue;
- the testimony is based on sufficient facts or data;
- the testimony is the product of reliable principles and methods; and
- the expert has reliably applied the principles and methods to the facts of the case.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
BHA has a Nice Swing Donates to CDCCF
May 21, 2014 —
Beverley BevenFlorez-CDJ STAFFBert L. Howe & Associates (BHA) would like to congratulate the winners of the BHA Has a Nice Swing golf game for charity. With the help of the participants, BHA was able to donate $1800 to the Construction Defect Community Charitable Foundation (CDCCF). CDCCF was established to provide financial assistance for active members of the construction defect community who have uninsured expenses because of a disability, sickness, and/or the death of a community member or their immediate family member.
BHA would also like to congratulate their booth’s raffle winners. Prizes included an iPad Air, four sets of Dodger tickets, a Day at the Del Mar Races, and Best Buy gift cards.
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Florida Issues Emergency Fraud Prevention Rule to Protect Policyholders in Wake of Catastrophic Storms
November 05, 2024 —
Geoffrey B. Fehling & Olivia G. Bushman - Hunton Insurance Recovery BlogLast week, just before Hurricane Milton made landfall, Florida state officials issued an emergency decree to all licensed insurance adjusters in the state to protect homeowners against “unfair and deceptive acts” and “post-storm fraud” by insurance carriers. According to The Washington Post, the Florida Department of Financial Services is requiring that all claim adjusters provide an explanation for each change they make to a consumer’s loss estimate, document those changes, and retain all versions of the estimate and identify who made those revisions. When processing claims, adjusters must also use an electronic estimating system that provides an itemized report of all damage, as well as labor, materials, equipment and supplies. Those costs should be consistent with what a contractor or a repair company in that particular area would charge.
“Property damage from Hurricane Milton will be catastrophic and may result in billions of dollars in property losses,” the emergency rule states. “Fair and transparent loss estimates and claims adjustments will be crucial to ensure Floridians are properly and fairly compensated under the terms of their property insurance contracts, while also ensuring ongoing insurer solvency after potentially momentous financial losses.”
Reprinted courtesy of
Geoffrey B. Fehling, Hunton Andrews Kurth and
Olivia G. Bushman, Hunton Andrews Kurth
Mr. Fehling may be contacted at gfehling@HuntonAK.com
Ms. Bushman may be contacted at obushman@HuntonAK.com
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