Eleventh Circuit Finds No “Property Damage” Where Defective Component Failed to Cause Damage to Other Non-Defective Components
October 11, 2021 —
Anthony L. Miscioscia & Margo Meta - White and WilliamsIn Florida, damage caused by faulty workmanship constitutes “property damage;” however, the cost of repairing or removing defective work does not. Amerisure Mutual Insurance Company v. Auchter Company, 673 F.3d 1294 (11th Cir. 2012) (Auchter). But what happens when the cost of repairing or removing defective work results in loss of use of the tangible property which is not physically injured?
The United States Court of Appeals for the Eleventh Circuit was recently faced with this question in Tricon Development of Brevard, Inc. v. Nautilus Insurance Company, No. 21-11199, 2021 U.S. App. LEXIS 27317 (11th Cir. Sep. 10, 2021). Tricon arose out of the construction of a condominium. Tricon was hired to serve as general contractor for the project and hired a subcontractor to fabricate and install metal railings. The railings installed by the subcontractor were defective and damaged, improperly installed, and failed to meet the project’s specifications. Tricon filed an insurance claim with Nautilus Insurance Company, the subcontractor’s commercial general liability insurer, for the cost to remove and replace the railings.[1]
Reprinted courtesy of
Anthony L. Miscioscia, White and Williams and
Margo Meta, White and Williams
Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com
Ms. Meta may be contacted at metam@whiteandwilliams.com
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The COVID-19 Impact: Navigating the Legal Landscape’s New Normal
July 27, 2020 —
Amanda Mathieu - Lewis BrisboisWhile most of the country has been at a standstill since March, you might be wondering, what about my lawsuit or my administrative charge? For the past couple of months, most litigation cases have largely been put on pause in the courts and at administrative agencies. However, as we adjust to what is clearly a new normal in both our lives and the legal landscape as we know it, cases will begin to pick up speed again, albeit with new strategies and challenges to keep in mind.
As courts begin to reopen, judges are emphasizing in many jurisdictions that criminal cases will take priority in an effort to attend to constitutionally required timelines. Nevertheless, it will remain just as important as before the pause button was hit to keep cases moving forward. This ramp up period presents a unique opportunity for clients and attorneys to invest meaningful time into investigating and developing defenses to claims while the court system and related case pace remains slowed.
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Amanda Mathieu, Lewis BrisboisMs. Mathieu may be contacted at
Amanda.Mathieu@lewisbrisbois.com
Time is Money. Unless You’re an Insurance Company
December 02, 2015 —
Garret Murai – California Construction Law BlogBenjamin Franklin may never have been President but he’s better known than most of them. Not least of all for his pithy quotes on a wide range of subjects:
On personal finance – “A penny saved is a penny earned.”
On education – “Tell me and I forget, teach me and I remember, involve me and I learn.”
On getting real – “In this world nothing can be said to be certain, except death and taxes.”
On guests – “Guests, like fish, begin to smell after three days.”
On lawyers – “A countryman between two lawyers is like a fish between two cats.”
On beer – “In wine there is wisdom, in beer there is freedom, in water there is bacteria.”
But if you were to pick one theme that seems to recur the most in Franklin’s quotes, it would be productivity:
“Time is money.”
“By failing to prepare, you are preparing to fail.”
“Never leave that till tomorrow which you can do today.”
“Early to bed and early to rise, makes a man happy, wealthy and wise.”
But, as the next case, Grebow v. Mercury Insurance Company, Case No. B261172, California Court of Appeals for the Second District (October 21, 2015), illustrates, sometimes the most efficient way of doing things may not necessarily be the most financially prudent way of doing things.
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com
Federal Court of Appeals Signals an End to Project Labor Agreement Requirements Linked to Development Tax Credits
October 20, 2016 — Gregory R. Begg & Aaron C. Schlesinger – Peckar & Abramson, P.C.
What Action Should Owners, Developers and Contractors Take in Anticipation of Successful Challenges to PLA Requirements?
Recently, a federal court in New Jersey issued a decision which very well may invalidate all Project Labor Agreements (“PLA’s”) entered into as a condition to receipt of tax incentives for private development. Tax incentives utilized to promote private development are different, according to the court, than typical public works projects where PLA requirements have generally been held valid. Owners, developers, contractors and governmental entities must assess the consequences of this decision upon contracts already and to be awarded in the future where tax benefits may be linked to a PLA requirement.
In 1993, in what has become known as the Boston Harbor Case, the United States Supreme Court held that state and local governmental entities may condition the award of public works contracts on the contractor’s agreement to enter into PLA’s.
That decision has been followed nationwide since then to uphold the validity of various state and local law bidding conditions requiring successful bidders to negotiate and enter into project labor agreements as a condition to the award of public works contracts. The rationale is that when the government, like any other private party, is participating in an economic market, it may exercise its discretion in setting terms and conditions it believes best suit its interests in the efficient procurement of goods and services in that market. Therefore, a PLA requirement by a governmental entity engaged in market activity is no more or less valid than a PLA requirement on a purely private project.
Reprinted courtesy of Gregory R. Begg, Peckar & Abramson, P.C. Aaron C. Schlesinger, Peckar & Abramson, P.C.
Mr. Begg may be contacted at gbegg@pecklaw.com
Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com
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London Penthouse Will Offer Chance to Look Down at Royalty
March 05, 2015 — Zainab Fattah – Bloomberg
(Bloomberg) -- A penthouse “overlooking the Queen’s balcony” will cap a London luxury apartment project planned near Buckingham Palace, according to its Abu Dhabi-based owner.
The 10,000 square-foot (929 square-meter) apartment at No. 1 Palace St. across the street from the royal residence will probably fetch about 60 million pounds ($92 million), Jassim Alseddiqi, chief executive officer of Abu Dhabi Financial Group LLC, said in an interview in the capital of the United Arab Emirates on Monday.
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Reprinted courtesy of Zainab Fattah, Bloomberg
Ms. Fattah may be contacted at zfattah@bloomberg.net
The Construction Project is Late—Allocation of Delay
November 17, 2016 — David Adelstein – Florida Construction Legal Updates
The construction project is late. Very late. The owner is upset and notifies the contractor that it is assessing liquidated damages. The contractor, in turn, claims that the project is late because of excusable, compensable delays and, perhaps, excusable, noncompensable delays. This is a common and unfortunate story between an owner and contractor on any late construction project. Now the fun begins regarding the allocation of the delay!
Through previous articles, I discussed that in this scenario the burden really falls on the contractor to establish that the liquidated damages were improperly assessed against it and, thus, it is entitled to additional time and/or extended general conditions as a result of excusable delays. Naturally, this requires the contractor to develop a critical path analysis (time impact analysis) allocating the impacts / delays (and the reasons for the impacts/ delays) to the project completion date. The reason the burden really falls on the contractor is because the owner’s burden is relatively easy – the project was not complete on time pursuant to the contract and any approved changed orders.
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Reprinted courtesy of David Adelstein, Katz, Barron, Squitero, Faust, Friedberg, English & Allen, P.A.
Mr. Adelstein may be contacted at dma@katzbarron.com
CA Homeowners Challenging Alternate Pre-Litigation Procedures
April 15, 2014 — Beverley BevenFlorez-CDJ STAFF
Garret Murai on his California Construction Law blog discussed how some homeowners have challenged homebuilders who use alternative pre-litigation procedures instead of the rules of California’s Right to Repair Act (SB 800).
“The Right to Repair Act, which was intended to help curb the then rising tide of residential construction defect litigation, provides mandatory pre-litigation procedures which must be followed in construction defect cases involving new residential construction,” Murai explained. “One of the major exceptions to the statutory pre-litigation procedures under SB 800, however, is that a homebuilder can opt to use its own alternative pre-litigation procedures if disclosed to a homebuyer.”
Murai used The McCaffrey Group, Inc. v. Superior Court case to demonstrate that homeowners can challenge the builder’s use of alternative pre-litigation procedures, and win if they can prove that the alternate procedures are “unconscionable.”
“For homebuilders, the take away is that, sure you can adopt your own alternative pre-litigation procedures under the Right to Repair,” Murai stated, “but if you do just know that they may be challenged by homeowners who may contend that they are unconscionable, which kinda defeats the whole idea behind SB 800 which was intended to reduce the amount of litigation the first place.”
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The Unpost, Post: Dynamex and the Construction Indianapolis
July 10, 2018 — Garret Murai - California Construction Law Blog
It’s been three months since the California Supreme Court issued its landmark decision in Dynamex Operations West, Inc. v. Superior Court, Case No. S222732 (April 30, 2018) and I’ve had a couple of readers (perhaps my only two) ask whether I was going to write about the decision.
I’m not. Well, obviously, that’s not quite true if you’re reading this. Rather, I’ll tell you why I’m writing about not writing about the decision.
Dynamex is certainly an important decision and one that will likely be cited for decades to come. In short, Dynamex changed the nearly 30-year old test, first elucidated in S.G. Borello & Sons Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 341, for determining whether a worker is properly classified as an independent contractor or an employee. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com