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    Arezoo Jamshidi Selected to the 2023 San Diego Super Lawyers List

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    HB 20-1046 - Private Retainage Reform - Postponed Indefinitely

    May 04, 2020 —
    On Tuesday, February 18th, the Colorado House Business Affairs & Labor Committee voted 10-0 to postpone indefinitely House Bill 1046. If it had been enacted, HB 1046 would have required, for all for all construction contracts of at least $150,000:
    • A property owner to make partial payments to the contractor of any amount due under the contract at the end of each calendar month or as soon as practicable after the end of the month;
    • A property owner to pay the contractor at least 95% of the value of satisfactorily completed work;
    • A property owner to pay the withheld percentage within 60 days after the contract is completed satisfactorily;
    • A contractor to pay a subcontractor for work performed under a subcontract within 30 calendar days after receiving payment for the work, not including a withheld percentage not to exceed 5%;
    • A subcontractor to pay any supplier, subcontractor, or laborer who provided goods, materials, labor, or equipment to the subcontractor within 30 calendar days after receiving payment under the subcontract; and
    • A subcontractor to submit to the contractor a list of the suppliers, sub-subcontractors, and laborers who provided goods, materials, labor, or equipment to the subcontractor for the work.
    Read the court decision
    Read the full story...
    Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell
    Mr. McLain may be contacted at mclain@hhmrlaw.com

    New Jersey Appellate Court Reinstates Asbestos Action

    March 05, 2015 —
    According to the New Jersey Law Journal, an asbestos case involving “a long-time ship worker who died of mesothelioma was reinstated by a New Jersey appellate court on March 3.” A lower court judge had “dismissed the claims against them based on his view that the evidence presented by the plaintiff was insufficient to show that the ships on which he worked contained asbestos and that he was exposed to it.” However, the appeals judges disagreed. “Although the summary judgment motion was decided on a very narrow ground, we conclude that the record as a whole establishes a triable issue as to whether plaintiff was exposed to asbestos or asbestos-containing products on defendant’s dredges,” judges Susan Maven and Henry Carroll stated, according to the New Jersey Law Journal. Read the court decision
    Read the full story...
    Reprinted courtesy of

    More Reminders that the Specific Contract Terms Matter

    January 24, 2022 —
    If there is a theme I have pounded upon here at Construction Law Musings in the over 13 years of posting, it is that the specific terms of your construction contracts will make a huge difference. While there have been reminders galore, a case from the Eastern District of Virginia presented another wrinkle on this theme. The wrinkle? A factoring company. In CJM Financial, Inc. v. Leebcor Services, LLC et. al., the Court examined this scenario (though it went into more detail than I will here): Leebcorp hired a subcontractor, Maston Creek Services to provide certain construction services under two separate contracts. Maston then hired CJM, a factoring company, and assigned CJM its receivables and the right to collect those receivables. We wouldn’t be discussing this case if all had worked out as planned, so you likely anticipate at least some of what came next. The short story is that Matson failed to pay some of its suppliers and Leebcorp exercised its termination rights under those contracts when Matson refused to cure. In the interim, CJM had paid part of certain payment applications to Matson in compliance with the factoring agreement. When Leebcorp failed to pay CJM for Matson’s work, CJM exercised its assigned rights to collect the receivables and sued Leebcorp for breach of contract. In response, Leebcorp counterclaimed for, among other counts including civil conspiracy, breach of contract based on Matson’s failure to perform. CJM moved to dismiss the counterclaims. Read the court decision
    Read the full story...
    Reprinted courtesy of The Law Office of Christopher G. Hill
    Mr. Hill may be contacted at chrisghill@constructionlawva.com

    UPDATE: Trade Secrets Pact Allows Resumed Work on $2.6B Ga. Battery Plant

    April 19, 2021 —
    Construction on a $2.6-billion battery manufacturing plant near Atlanta can continue under an agreement reached April 11 between two rival South Korean auto battery makers—including SK Innovation, which is owner of the half-completed project. Reprinted courtesy of Mary B. Powers, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
    Read the full story...
    Reprinted courtesy of

    In a Win for Property Owners California Court Expands and Clarifies Privette Doctrine

    March 28, 2018 —
    We’ve written before about the Privette doctrine, which generally holds that a higher-tiered party is not liable for injuries sustained by employees of a lower-tiered party under the peculiar risk doctrine, here, here, here and here. We’ve also talked about some of the exceptions to the Privette doctrine, including the non-delegable duty doctrine and the negligent exercise of retained control doctrine, which provide that a hirer cannot rely on the Privette doctrine if it owed a non-delegable duty to an employee of an independent contractor or if it retained control over the work of an employee of an independent contractor and negligently exercised that control in a manner that affirmatively contributes to injuries to that employee. In the next case, Delgadillo v. Television Center, Inc., Second District Court of Appeals, Case No. B270985 (February 2, 2018), the Court examined whether a property owner could be held liable under the non-delegable duty doctrine and negligent exercise of retained control doctrine for failing to provide structural anchor bolts on its buildings which led to the death of an employee of window washing company. Read the court decision
    Read the full story...
    Reprinted courtesy of Garret Murai, Wendel, Rose, Black, & Dean, LLP
    Mr. Murai may be contacted at gmurai@wendel.com

    Jinx: Third Circuit Rules in Favor of Teamsters in Withdrawal Case

    July 28, 2018 —
    Bad omen. Last week, I wrote about a Appeals Court decision that affirmed a contractor’s escape from an over $600,000 withdrawal liability assessment from the Laborers Union. The next day the Third Circuit (which covers PA, NJ, and DE) handed down a decision affirming a federal court’s decision to assess withdraw liability. This one shows the dark side of not reading and understanding your CBA. The belligerents in the litigation were, Penn Jersey, a construction material supplier, and Teamsters Local 676. Their collective bargaining agreement contained a clause purportedly covering withdrawal liability. Specifically, the clause stated “should the Employer withdraw from the Agreement in the future, there will be no withdrawal liability. The CBA expired and Penn Jersey did not renew its agreement with the Teamsters. Read the court decision
    Read the full story...
    Reprinted courtesy of Wally Zimolong, Zimolong LLC
    Mr. Zimolong may be contacted at wally@zimolonglaw.com

    Construction Litigation Roundup: “It’s One, Two… Eight Strikes: You’re Out!”

    May 28, 2024 —
    In a matter handled by this writer and the Phelps firm for various insurance companies, the insurers sought to be extricated from a $51,000,000+ arbitration and prevailed, securing a preliminary injunction from a federal district court in New Orleans. The dispute centers on the contract between the designer for the new terminal facility at the Louis Armstrong New Orleans International Airport and a claim by the airport board against the designer team as well as the insurers for the designers. The principal design contract – to which the insurers were not parties – contains an arbitration clause. The airport board initiated an American Arbitration Association arbitration against the designers and their insurers, and the insurers sought relief from the court. Read the court decision
    Read the full story...
    Reprinted courtesy of Daniel Lund III, Phelps
    Mr. Lund may be contacted at daniel.lund@phelps.com

    Let’s Give ‘Em Sutton to Talk About: Tennessee Court Enforces Sutton Doctrine

    July 24, 2023 —
    In Patton v Pearson, No. M2022-00708-COA-RC-CV, 2023 Tenn. App. LEXIS 231, the Court of Appeals of Tennessee (Court of Appeals) considered whether the lower court erred in dismissing an insurance carrier’s lawsuit against its insured’s tenant for damages sustained in a fire. While the lawsuit was filed in the name of the landlord (i.e., the insured), discovery revealed that the lawsuit was actually a subrogation lawsuit, brought by the landlord’s insurance carrier. The lower court granted the tenant’s motion for summary judgment based on the Sutton Doctrine, holding that the tenant was an implied co-insured under the landlord’s policy. The Court of Appeals affirmed, finding that although the lease agreement did not reference insurance, the Sutton Doctrine applied, which barred the landlord’s carrier from subrogating against the tenant. In 2016, Anita Pearson (Ms. Pearson) signed a lease agreement to rent a home in Nashville, Tennessee, which was owned by John and Melody Patton (collectively, the Pattons). The lease stated that the Pattons were not responsible for the tenant’s personal property. The lease also stated that the tenant would be responsible for any damage caused by her negligence or misuse of the home. The lease was silent as to which party would maintain property casualty insurance and regarding implied co-insured status on any policy. Ms. Pearson purchased renter’s insurance for her personal property. The Pattons secured a property casualty insurance policy for the home. Read the court decision
    Read the full story...
    Reprinted courtesy of Gus Sara, White and Williams
    Mr. Sara may be contacted at sarag@whiteandwilliams.com