Nomos LLP Partner Garret Murai Recognized by Best Lawyers®
September 18, 2023 —
Garret Murai - California Construction Law BlogNomos LLP Partner Garret Murai has been recognized by Best Lawyers® in its 30th edition of The Best Lawyers in America® in the area of Construction Law for 2024. This is the the first year Garret has been recognized by Best Lawyers®.
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Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com
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Indemnity: What You Don’t Know Can Hurt You!
September 19, 2022 —
Caitlin Kicklighter & Bill Shaughnessy - ConsensusDocsRisk allocation between the parties is a critical component of any construction contract. Indemnity obligations can be some of the important risk-shifting provisions of any design or construction contract. Indemnity provisions typically require one party, the Indemnitor, to agree to “hold harmless,” and/or reimburse another party, the indemnitee, from claims and liability arising out of the party’s work. Considering the financial consequences that an indemnity provision can have on a construction project, it is critical that all parties to a construction contract know the legal implications of the contract indemnity provisions and understand any limitations in enforcing the indemnity provisions depending on the controlling jurisdiction. While most indemnity clauses and obligations are enforceable, many states have enacted anti-indemnity statutes prohibiting or restricting specific indemnification provisions. These anti-indemnity statutes afford protection to contractors and subcontractors not generally in a position to protect themselves from overly extensive indemnity obligations.
This article highlights several examples of indemnity provisions typically seen in construction contracts, the measures are taken by a growing number of states to protect parties with less bargaining power in the form of anti-indemnity statutes, and offers practical considerations when negotiating or drafting indemnity provisions.
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Reprinted courtesy of
Caitlin Kicklighter, Emory Law Student (2024 Graduate), (ConsensusDocs) and
Bill Shaughnessy, Jones Walker LLP (ConsensusDocs)
Mr. Shaughnessy may be contacted at bshaughnessy@joneswalker.com
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Condos Down in Denver Due to Construction Defect Litigation
November 06, 2013 —
CDJ STAFFA new report suggests that fears of construction defect litigation may be the cause of the slump in condo building in the Denver area. The Denver Business Journal reports that the Denver Regional Council of Governments commissioned the study by Economic & Planning Systems. The conclusion of the report was that the only type of condominium likely to be built is high-cost units with high profit margins. This is not good news for the DRCOG, which is seeking to create more affordable housing.
The report found that builders assess the likeliness of being sued “is nearly 100 percent,” that costs of addressing construction defects are 12% higher than at apartment complexes, and that preparing for litigation adds about $15,000 to the cost of a condo unit.
One possible remedy is to reform Colorado’s construction defect laws. Bob Muphy, the mayor of Lakewook and an advocate of construction defect litigation reform, said that he sees “this as a verification of what I’ve been talking about.”
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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
Transplants Send Nashville Home Market Upwards
October 10, 2013 —
CDJ STAFFHome sales and prices are up in Nashville, Tennessee, but it isn’t the locals who are responsible. “People are moving from Florida, California, Texas, Arizona. People come from New York and New Jersey and can’t believe the home values and low taxes,” said Margaret Dixon, a Tennessee realtor. And they’re moving to areas that the locals haven’t embraced. They “don’t have imaginary boundaries in their heads.”
As a result, home sales are up 22% in the third quarter with a 9% rise in prices, as compared to the same quarter last year in Davidson County, where Nashville is located. In adjacent Williamson County, sales were up even more, with a 31% increase in volume and a 12% increase in price. Smyrna, home of Nissan’s LEAF electric car, saw a 25.5% increase in sales volume.
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Power & Energy - Emerging Insurance Coverage Cases of Interest
November 30, 2020 —
David G. Jordan & Tiffany Casanova - Saxe Doernberger & Vita, P.C.The Power & Energy sector faces a multitude of risks that impact output and profitability, requiring sound risk management and robust insurance programs. As of recent, like most industries, there have been significant challenges facing the industry in light of COVID-19. These issues, including decreased product demand as well as supply- side issues, have been well documented. However, other issues continue to impact Power & Energy providers, with significant insurance coverage implications that are worthy of note. Below is a summary of three open cases of interest, where declaratory relief has been sought by energy providers’ insurance carriers, seeking an avoidance of coverage.
1. Fracking Dispute and “Intentional Acts”
In the Texas case of The James River Insurance Co. v. Clearpoint Chemicals LLC et al., No. 4:20-cv-0076 (N.D.Tex), James River Insurance Company (“James River”) is asking a federal district court to declare that it does not owe defense or indemnity to its insured for acts it defines as both intentional and/or malicious acts.
Reprinted courtesy of
David G. Jordan, Saxe Doernberger & Vita, P.C. and
Tiffany Casanova, Saxe Doernberger & Vita, P.C.
Mr. Jordan may be contacted at DJordan@sdvlaw.com
Ms. Casanova may be contacted at TCasanova@sdvlaw.com
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Texas Legislative Update
July 19, 2017 —
Matthew S.C. Moore & Justin (JD) D. Holzeauser – Peckar & Abramson, P.C.The marquee fight between Lt. Governor Patrick and Speaker Straus, otherwise known as the 85th Regular Legislative Session, concluded on May 29, 2017. While the political clash over the controversial “bathroom bill” will continue during the special legislative session, this article is intended to provide a brief summary of the construction-related bills that passed during the regular session and a few notable ones that did not pass. A special session has been called by Governor Abbott, but no construction-related bills were included on the agenda.
What Passed?
HB 2121 – Attorney’s fees for state breach of contract claims. A contractor who prevails on a state breach of contract claim pursuant to Chapter 2260 of the Government Code, that is also valued at less than $250,000.00, may recover attorney’s fees. By using the word “may”, the bill implies that the award of attorney’s fees will be at the discretion of the administrative law judge. This bill became law on June 15, 2017.
HB 1463 – Right to cure ADA violations. A person with a disability may assert a claim for discrimination based on a violation of the building and architectural standards established in Chapter 469 of the Government Code. However, this bill requires the claimant to provide the respondent written notice at least sixty (60) days before filing an action for the violation and further gives the respondent an opportunity to cure the alleged violation within the sixty (60) day period. The obvious benefit of this bill is that it allows the respondent, e.g., the owner or potentially the contractor, an opportunity to remediate the violation without incurring litigation costs. This bill becomes effective law on September 1, 2017.
Reprinted courtesy of
Matthew S.C. Moore, Peckar & Abramson, P.C. and
Justin (JD) D. Holzeauser, Peckar & Abramson, P.C.
Mr. Moore may be contacted at mmoore@pecklaw.com
Mr. Holzheauser may be contacted at jdholzheauser@pecklaw.com
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U.S. Stocks Fluctuate Near Record After Housing Data
February 25, 2014 —
Lu Wang and Callie Bost – BloombergU.S. stocks fluctuated near a record high after data showed slower growth in home prices and a drop in consumer confidence, while Macy’s Inc. and Home Depot Inc. reported higher-than-estimated earnings.
Macy’s and Home Depot rose at least 3.1 percent. Tesla Motors Inc. climbed 16 percent as Morgan Stanley more than doubled its projected price for the stock. Office Depot Inc. slumped 11 percent after reporting an unexpected loss. Tenet Healthcare Corp. declined 11 percent as its forecast missed analysts’ estimates.
The S&P 500 (SPX) gained 0.1 percent to 1,848.59 at 1:59 p.m. in New York, poised for the highest close ever. Earlier, the U.S. equity benchmark lost 0.4 percent. The Dow Jones Industrial Average advanced 14.05 points, or 0.1 percent, to 16,221.19. Trading in S&P 500 stocks was 7 percent below the 30-day average during this time of the day.
Ms. Wang may be contacted at lwang8@bloomberg.net; Ms. Bost may be contacted at cbost2@bloomberg.net
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Lu Wang and Callie Bost, Bloomberg