Texas Court Construes Breach of Contract Exclusion Narrowly in Duty-to-Defend Case
September 10, 2018 —
Lorelie S. Masters & Tae Andrews - Hunton Insurance Recovery BlogIn a victory for policyholders, a recent decision from the Western District of Texas narrowly construed a common breach-of-contract exclusion and held that the insurer had a duty to defend its insured against an underlying lawsuit over construction defects. The allegations potentially supported a covered claim, as the conduct of the insured’s subcontractor could have been an independent, “but for” cause of the property damage at issue, thereby triggering the insurer’s duty to defend.
In Slay, the insured – a construction company – was hired by a city to design and construct a municipal sports complex, including Little League baseball fields, a softball field, parking lots, and a swimming pool. The construction company hired a subcontractor to perform various services on the project, including paving parking lots and laying the cement for the pool. After completing the project, one of the construction company’s employees noticed cracking in the parking lot and the pool. The construction company notified the city and tried to work out a repair plan, but the city refused and eventually sued, alleging construction defects and asserting claims for breach of contract and negligence.
Reprinted courtesy of
Lorelie S. Masters, Hunton Andrews Kurth and
Tae Andrews, Hunton Andrews Kurth
Ms. Masters may be contacted at lmasters@HuntonAK.com
Mr. Andrews may be contacted at tandrews@HuntonAK.com
Read the court decisionRead the full story...Reprinted courtesy of
The Condominium Warranty Against Structural Defects in the District of Columbia
September 07, 2017 —
Nicholas D. Cowie - Maryland Condo Construction Defect Law BlogThe District of Columbia Condominium Act contains a statutory warranty that protects condominium associations and their unit owner members from structural defects in newly constructed and newly converted condominiums. The warranty is backed by a condominium developer’s bond, letter of credit, or other form of security from which monies can be drawn upon if the developer fails to make warranty repairs.
This article discusses how the warranty against structural defect works and how to make claims against the developer’s security to fund warranty repairs.
THE CONDOMINIUM WARRANTY AGAINST STRUCTURAL DEFECTS
Condominium developers in Washington DC are required by statute to warrant against structural defects in the condominium common elements and each condominium unit. District of Columbia Condominium Act (“DC Condo Act”) 42-1903.16(b).
Read the court decisionRead the full story...Reprinted courtesy of
Nicholas D. Cowie, Cowie & Mott, P.A.Mr. Cowie may be contacted at
ndc@cowiemott.com
Eleven WSHB Attorneys Honored on List of 2016 Rising Stars
September 01, 2016 —
Beverley BevenFlorez-CDJ STAFFWood Smith Henning & Berman LLP (WSHB) announced that eleven of their lawyers were recognized on the list of 2016 Rising Stars®:
- Raymond Babaian: Partner, Rancho Cucamonga
- Emil Macasinag: Senior Counsel, Los Angeles
- Amy Pennington: Partner, Los Angeles
- Christopher Perez: Senior Counsel, Rancho Cucamonga
- Keith Smith: Partner, Riverside
- Kevin Gillispie: Partner, Concord
- Alicia Kennon: Senior Counsel, Concord
- Eugene Zinovyev: Senior Associate, Concord
- Timothy Repass: Partner, Seattle and Portland
- Jodi Mullis: Senior Associate, Phoenix
- Vincent Beilman: Partner, Tampa and Miami
“We are pleased to have 11 of our best selected for this year’s lists,” Dan Berman, Firm Chairman and Founding Partner stated. “We value our selections to Rising Stars because the choices come from our peers. It is truly an honor and a validation of all of the great work we do at WSHB.”
Read the court decision
Read the full story...
Reprinted courtesy of
Senior Housing Surplus Seen as Boomers Spur Building Boom
May 19, 2014 — Brian Louis – Bloomberg
Real estate developers are betting big on U.S. housing for the elderly, preparing for a surge in demand as the population of senior citizens almost doubles in the next 35 years. They may be building too fast.
A jump in supply is forecast to cut growth in senior-housing net operating income to 1.8 percent in 2015 and 1.4 percent in 2016 from 3.3 percent this year, according to Green Street Advisors Inc. The increase may hurt health-care real estate investment trusts and companies including Brookdale Senior Living Inc. (BKD), which is buying competitor Emeritus Corp. (ESC) for about $1.4 billion to become the biggest owner of senior properties, the research firm said.
“Increased supply is always worrisome in any type of commercial real estate,” said Jim Sullivan, a managing director at Newport Beach, California-based Green Street. “In senior housing, new construction has ramped up considerably over the last two years.” Read the court decision
Read the full story...
Reprinted courtesy of Brian Louis, Bloomberg
Mr. Louis may be contacted at blouis1@bloomberg.net
Protect Workers From Falls: A Leading Cause of Death
August 14, 2018 — Mark McGhiey - Construction Executive
One of the leading causes of death for construction workers is falls from elevated surfaces, according to the Bureau of Labor Statistics. In 2016, these accidents accounted for more than 30 percent of all construction fatalities. The top four causes of worker deaths (excluding highway collisions) in the private sector construction industry are:
- falls: 384 (38.7%);
- struck by object: 93 (9.4 percent);
- electrocutions: 82 (8.3 percent); and
- caught-in/between:1 72 (7.3 percent).
One of the most common — and costly — causes of claims occur when construction workers fall from elevated surfaces. These accidents represent more than 30 percent of all construction claim payments.
Reprinted courtesy of Mark McGhiey, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
Read the full story...
Reprinted courtesy of
Weyerhaeuser Leaving Home Building Business
November 13, 2013 — CDJ STAFF
The Washington-based timber giant, Weyerhaeuser, has announced that has sold off its homebuilding business. The division went by the name of WRECO (Weyerhaeuser Real Estate Company) and comprised five home builders, Maracay Homes, Pardee Homes, Quadrant Homes, Trendmaker Homes, and Winchester Homes. The division was bought by TRI Pointe Homes for about $2.7 billion of which $700 million was paid in cash.
Weyerhaeuser intends to focus on their core business of timber products. Read the court decision
Read the full story...
Reprinted courtesy of
2019’s Biggest Labor and Employment Moves Affecting Construction
January 27, 2020 — Micah Dawson - Construction Executive
The construction industry is fueled by change, which is the only constant in life and construction. Still, continuous change makes compliance with state and federal laws and regulations more difficult.
While contractors may thrive on the frantic pace, sometimes it is good to look back and ensure they have an understanding of, and are complying with, the newest regulations and laws.
Top 10 Stories Dominating Employment Law in Construction
1. Trio of Federal Joint Employment Rules Expected in December 2019
Joint employment took center stage during the November 20, 2019 release of the Fall Regulatory Agenda, as three separate federal agencies announced plans to move forward with revised joint employment rules in December. While the Department of Labor and the National Labor Relations Board had already released versions of their draft rules, the Equal Employment Opportunity Commission also announced that it would weigh in on the topic before the end of 2019. As of January 10, 2020, the EEOC had not done so.
2. NLRB Tightens Union Access to Employer Property
In a ruling that levels the labor relations playing field, the NLRB ruled that employers could rightfully eject outside union representatives soliciting petition signatures from a shared shopping center parking area. When read in conjunction with an earlier 2019 decision conferring greater rights to limit on-premises union activity by abolishing the “public space” exception, the NLRB has significantly restricted union access to private employer property.
Reprinted courtesy of Micah Dawson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
Read the full story...
Reprinted courtesy of
Mr. Dawson may be contacted at mdawson@fisherphillips.com
Warning! Danger Ahead for Public Entities
July 30, 2019 — Michael J. Baker - Snell & Wilmer Under Construction Blog
Public entities are known to assert False Claims actions “to up the ante” to intimidate and aggressively address contractor construction claims. This strategy in the case of John Ross of Industrial Sheet Metal, Inc. (JRI) V. City of Los Angeles Department of Airports (LAWA), 29 Cal. App. 5th 378 (2018), backfired on the public entity, LAWA, in a big way and should serve as a warning to public entities about expanding claims to include False Claim actions. In this case, LAWA was awarded $1 in contract damages, its California False Claims Act (CFCA) claim was rejected by the jury as were JRI’s claims against LAWA. Despite losing on the substantive contract claims, the trial court found that JRI “prevailed in the action” under the relevant CFCA fee provision, Government Code 12652, subd. (g)(9)(B), regardless of JRI’s failure to prevail in the action as a whole. The California Appellate Court (hereinafter “Court”) affirmed the trial court’s finding.
The CFCA is analogous to the federal False Claims Act (FFCA; 31 U.S.C. 3729 et seq.). Since the CFCA is patterned on similar federal legislation, it was appropriate for the Court to look to precedent construing this similar federal act in interpreting the CFCA provisions. Accordingly, the Court looked at the False Claims Act cases for guidance in upholding the trial court’s decision in its determination that JRI was the “prevailing party” for determining an attorney’s fees award against LAWA. Read the court decision
Read the full story...
Reprinted courtesy of Michael J. Baker, Snell & Wilmer
Mr. Baker may be contacted at mjbaker@swlaw.com