Pollution Created by Business Does Not Deprive Insured of Coverage
November 26, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe federal district court determined that coverage was properly denied under the pollution exclusion of the policies. Headwaters Resources, Inc. v. Illinois Union Ins. Co., 2014 U.S. App. LEXIS 20060 (10th Cir. Oct. 20, 2014).
Over 400 residents of Chesapeake, Virginia, filed two lawsuits against the insured, Headwaters, alleged property damage and bodily injury due to pollution generated in connection with the development of a golf course. The complaints alleged that between 2002 and 2007, the defendants used 1.5 million tons of toxic fly ash during construction of a golf course. The insured allegedly transported the fly ash to an open pit adjacent to residential neighborhoods. The chemicals from the fly ash leached into the ground water, damaging the private wells. The fly ash pit also released airborne contaminants that produced a strong smell of ammonia. As a result of the alleged contamination, the property values of plaintiffs' homes depreciated and members of the community faced increased risk of serious bodily injuries caused by exposure to the fly ash.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Welcome to SubTropolis: The Massive Business Complex Buried Under Kansas City
February 05, 2015 —
Patrick Clark – BloombergThe underground industrial park known as SubTroplis opened for business in 1964 in an excavated mine below Kansas City, Mo., attracting tenants with the lure of lower energy costs and cheap rents. The walls, carved out of 270-million-year-old limestone deposits, help keep humidity low and temperatures at a constant 68 degrees, eliminating the need for air conditioning or heating. Tenants have reported saving as much as 70 percent on their energy bills, says Ora Reynolds, president of SubTropolis landlord Hunt Midwest. Rents run about $2.25 per square foot, about half the going rate on the surface. "It's also a question of sustainability," says Joe Paris, vice president at Paris Brothers, a specialty foods packager that employs about 200 workers underground. In addition to Paris Brothers, 51 tenants have rented nearly 6 million square feet of space. Others include LightEdge Solutions, a cloud computing company that uses the mild climate to help cool servers, and an underground archive that contains the original film reels to Gone with the Wind and Wizard of Oz.
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Patrick Clark, Bloomberg
Another Law Will Increase Construction Costs in New York
May 29, 2023 —
Bill Wilson - Construction Law ZoneNew York recently enacted legislation known as Carlos’ Law, which increases penalties for corporate liability for the death of, or serious injury to, an employee. The bill, S.621B / A.4947B, was named after Carlos Moncayo, a construction worker killed in a trench collapse on a New York City construction project. Moncayo’s employer repeatedly flouted safety rules and ignored warnings of dangerous conditions on its construction site before failing to properly support the trench that collapsed and killed Moncayo. Moncayo’s employer was convicted for his death, but the penalty was light. The company was sentenced to pay only $10,000, the maximum penalty at the time for any company convicted of a felony in New York State. The legislature responded with Carlos’ Law, which increases accountability for “employers,” and expands the scope of “employees” covered.
The corporate criminal law, NY Penal § 20.20(2)(c)(iv), imposes liability on an employer when “the conduct constituting the offense is engaged in by an agent of the corporation while acting within the scope of his employment and on behalf of the corporation, and the offense is . . . in relation to a crime involving the death or serious physical injury of an employee where the corporation acted negligently, recklessly, intentionally, or knowingly.” An “agent” of an employer is any “director, officer or employee of a corporation, or any other person who is authorized to act on behalf of the corporation.” § 20.20(a). An “employee” now includes any person providing labor or services for remuneration for a private entity or business within New York State without regard to an individual’s immigration status, and includes part-time workers, independent contractors, apprentices, day laborers and other workers. § 10.00 (22). The penalties for criminal corporate liability for the death or serious injury of an employee now include maximums of $500,000 when centered on a felony, and $300,000 when centered on a misdemeanor. § 80.10(1)(a) and (b).
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Bill Wilson, Robinson & Cole LLPMr. Wilson may be contacted at
wwilson@rc.com
Department Of Labor Recovers $724K In Back Wages, Damages For 255 Workers After Phoenix Contractor Denied Overtime Pay, Falsified Records
February 01, 2023 —
U.S. Department of LaborPHOENIX – The U.S. Department of Labor has recovered $724,082 in back wages and damages for 255 employees of an electrical contractor in Phoenix who denied them overtime wages and falsified records.
An investigation by the department’s
Wage and Hour Division found IES Residential – a subsidiary of one of the nation’s largest electrical, HVAC and plumbing, solar and cable installation contractors – capped employees’ overtime at eight hours despite some employees working up to 60 hours in a workweek.
The division also learned the employer told workers – some who arrived as early as 4:45 a.m. and worked as late as 7 p.m. to record 40 hours or less on their timesheets unless their overtime was pre-approved. When IES Residential did approve, the employer limited overtime to eight hours per week even when employees worked as many as 23 hours of overtime in a workweek.
“The U.S. Department of Labor will hold employers accountable for wage theft, particularly in cases like this one, where IES Residential deliberately attempted to evade the law by instructing employees to falsify timesheets to avoid paying overtime wages,” said Wage and Hour Division District Director Eric Murray in Phoenix. “Employers who fail to pay workers their full wages may face costly consequences, including penalties for intentional acts to cover-up their violations.”
In fiscal year 2022, the division
recovered nearly $32.9 million in back wages for 17,127 construction industry workers. The division completed more than 2,200 investigations in FY22 in the construction industry and by wages recovered, the industry ranks second among the division’s low wage, high violation industries.
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Can I Be Required to Mediate, Arbitrate or Litigate a California Construction Dispute in Some Other State?
September 19, 2022 —
William L. Porter - Porter Law GroupIt is not uncommon in the construction industry for an out-of-state general contractor to include a provision in a subcontract requiring a California subcontractor to resolve disputes outside the state of California, even though the work is to be performed within California. Fortunately, most California subcontractors are immune from this tactic. California law generally prohibits clauses requiring subcontractors to travel outside California to resolve construction disputes.
California Code of Civil Procedure Section 410.42, [CCP 410.42 Link] renders “void and unenforceable,” any provision in a contract that “purports to require any dispute to be litigated, arbitrated, or otherwise determined outside this state,” so long as the contract is “between the contractor and a subcontractor with principal offices in the state, for the construction of a public or private work of improvement in this state.” Similarly, this law voids any similar contractual term that might prevent the California subcontractor from commencing an action, obtaining a judgment, or resolving its dispute in the courts of California.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
SCOTUS, Having Received Views of Solicitor General, Will Decide Whether CWA Regulates Indirect Discharge of Pollutants Into Navigable Water Via Groundwater
April 17, 2019 —
Anthony B. Cavender - Gravel2GavelPrior to deciding whether to review an important February 1, 2018, U.S. Court of Appeals for the Ninth Circuit decision involving the jurisdictional reach of the Clean Water Act (CWA), Hawai’i Wildlife Fund, et al., v. County of Maui, the Supreme Court asked the Solicitor General for the views of the U.S. on the holdings of this case and the April 12, 2018 U.S. Court of Appeals for the Fourth Circuit decision, Upstate Forever, et al., v. Kinder Morgan Energy Partners, L.P., et al.
On February 19, the Supreme Court confirmed that certiorari was granted to Question 1 presented by the Petition,
Whether the CWA requires a permit when pollutants originate from a point source but are conveyed to navigable waters by a nonpoint source, such as groundwater. (33 U.S.C. § 1362 (12)
In County of Maui , the Ninth Circuit held that indirect discharges to navigable waters through groundwater may be subject to the Environmental Protection Agency’s (EPA) CWA the National Pollutant Discharge Elimination System (NPDES) permitting authority, and in Kinder Morgan, the Fourth Circuit held that such an indirect discharge may be subject to regulation under the CWA when there is a direct hydrological connection between the discharge into groundwater and the direct discharge into navigable, surface waters.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Revisiting Statutory Offers to Compromise
August 28, 2023 —
Kathryne Baldwin - Wilke FleuryThe fourth appellate district published an opinion earlier this year in Smalley v. Subaru of America, Inc. (2022) 87 Cal.App.5th 450 that serves as an excellent refresher on requirements of the “998 Offer,” or a statutory offer to compromise pursuant to Code of Civil Procedure (“CCP”) §998.
In Smalley, set in the context of a Lemon Law action, Defendant Subaru made a 998 Offer for $35,001.00, together with attorneys’ fees and costs totaling either $10,000.00 or costs and reasonably incurred attorneys’ fees, in an amount to be determined by the Court. (Smalley, supra, 87 Cal.App.5th at 454.) Plaintiff objected that the offer was not reasonable and the case proceeded to trial. At trial, a jury found in favor of Plaintiff and awarded him a total judgment award of $27,555.74 – far short of the $35,001.00 offer. The trial court found Plaintiff had failed to beat the 998 at trial and that Subaru’s earlier 998 offer was reasonable. Plaintiff appealed the post-judgment order awarding Plaintiff pre-offer costs and Defendant post-offer costs on the grounds that the 998 was not reasonable in that it did not specify whether Plaintiff would be deemed the prevailing party for purposes of a motion for attorneys’ fees. The fourth district affirmed the trial court’s order and engaged in a helpful review of 998 requirements.
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Kathryne Baldwin, Wilke FleuryMs. Baldwin may be contacted at
kbaldwin@wilkefleury.com
PFAS and the Challenge of Cleaning Up “Forever”
July 31, 2023 —
PFAS Team - Gravel2Gavel Construction & Real Estate Law BlogFrom a stream of legal challenges, to ever-expanding regulations on things like cosmetics and drinking water, PFAS are the “forever chemicals” keeping companies and consumers on high alert. While industries scramble to remove the synthetic compounds from products, scientists are researching new techniques for scrubbing PFAS from the environment. There is money to be had for those who can find a more streamlined method of purging the substances—the U.S. Army Corps of Engineers has an $800 million contract on the table for the handling, destruction and replacement of PFAS-laden fire-fighting foam—leaving technology companies racing to create solutions. The three main PFAS cleaning techniques currently relied upon can be very effective but are also costly and may leave questionable byproducts in their wake.
The established approaches include:
- Granular Activated Carbon. As one of the most studied treatments for PFAS removal, granular activated carbon is often used in water treatment plants. Large beds of carbon essentially soak up the unwanted chemicals. After the Sweeney Water Plant in North Carolina, whose water source is downstream from a fluorochemical-producing Chemours plant, was found to be contaminated with PFAS, the plant invested around $46 million into upgraded activated carbon systems. Once installed, these systems cost roughly $2.9 million to operate yearly, as the carbon needs to be replaced each time it reaches capacity. Though pricey, the plant says that the process now clears close to 100% of PFAS.
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PFAS Team, Pillsbury
