Stay-At-Home Orders and Work Restrictions with 50 State Matrix
April 27, 2020 —
Smith CurrieAs each day of the coronavirus pandemic passes, more and more states, cities and counties across the country are implementing stay-at-home (or shelter-in-place) orders and restrictions on individuals and businesses. These restrictions are impacting numerous persons and businesses, including those working in the construction industry. Smith Currie is keeping abreast of these restrictions and has developed the matrix below identifying statewide and local restrictions in place. This matrix is by no means complete, and we will continue updating it as we become aware of additional orders. In the write ups included with the PDF below, you will find links to the applicable orders with more detailed information. Consult legal counsel for advice on the impact of a particular restriction or restrictions to your business.
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Smith CurrieThe firm Smith Currie may be contacted at
info@smithcurrie.com
Overtime! – When the Statute of Limitations Isn’t Game Over For Your Claim
August 07, 2022 —
Bradley E. Sands, Jones Walker LLP - ConsensusDocsStatutes of limitations establish the period of time within which a claimant must bring an action after it accrues. An action can be filing a lawsuit and, in some instances, filing a demand for arbitration. But a multi-year construction project could be longer than the applicable statute of limitations. For example, under Delaware or North Carolina law, the statute of limitations for a breach of contract is only three years.1 So a claim for breach of a construction contract that occurred (i.e. accrued) at the beginning of a four-year project under Delaware or North Carolina law may expire before the project is completed.
Generally, a claim accrues at the time of the breach (however, it is important to note that this is not always the case and claim accrual could be the subject of an entirely different article). During the course of a multi-year construction project, proposed change orders or claims for additional compensation can sit, unanswered or unpursued, for months. Or, the parties may informally agree as part of regular project communications to put off dealing with a claim head-on until the end of the project. On certain projects, slow-walking a claim is understandable, as a contractor may be hesitant to sue an owner in the middle of a multi-year project and risk upsetting an otherwise good working relationship. But a delay in formally asserting a put-off claim after it accrues could result in the claim falling subject to a statute of limitations defense.
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Bradley E. Sands, Jones Walker LLP (ConsensusDocs)Mr. Sands may be contacted at
bsands@joneswalker.com
Excess Carrier Successfully Appeals Primary Insurer’s Summary Judgment Award
December 09, 2011 —
Tred R. Eyerly - Insurance Law HawaiiAlthough the excess carrier was given inadequate notice of the underlying arbitration, the trial court determined it shared responsibility with the primary carrier for the arbitration award. Finding disputed issues of fact, the Washington Court of Appeals reversed in Am. States Ins. Co. v. Century Surety Co., 2011 Wash. App. LEXIS 2488 (Wash. Ct. App. Oct. 31, 2011).
The primary insurer, American States, issued two liability policies to Professional Home Builders (PHB), a siding contractor. The policies were for successive years, 1998-1999 and 1999-2000. Each policy had annual limits of $1 million per occurrence. PHB also had a commercial excess liability policy for 1999-2000 with Century Surety Company.
PHB was sued by Residential Investment Partners (RIP) for construction defects after moisture entered the building envelope, causing decay and damage. Century’s expert determined the decay started before the 1999-2000 policy period.
RIP and PHB went to arbitration.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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Supreme Court Opens Door for Challenges to Older Federal Regulations
August 05, 2024 —
Jane C. Luxton - Lewis BrisboisWashington, D.C. (July 1, 2024) – On July 1, 2024, the U.S. Supreme Court issued another end-of-term major decision limiting the scope of federal agency actions in Corner Post, Inc. v. Board of Governors of the Federal Reserve System. Adding to the tectonic shift in the regulatory landscape created by the Court’s June 27 and 28 rulings constraining the role of administrative law judges and overturning longstanding “Chevron deference” by courts to federal agency expertise, the decision in Corner Post establishes a newly expanded time frame for affected entities to challenge final agency action. Instead of confirming that final agency action is subject to a default six-year statute of limitations, the Court held that under the Administrative Procedure Act (APA), the time limit for appeal begins to run when a plaintiff is injured by the agency's action, not when the action becomes final. This decision has important implications for businesses and others affected by federal regulations.
The case arose when Corner Post, a truck stop and convenience store in North Dakota that opened in 2018, challenged a 2011 Federal Reserve Board regulation (Regulation II) that set maximum interchange fees for debit card transactions. Corner Post filed suit in 2021, arguing that Regulation II allowed higher fees than permitted by statute. The lower courts dismissed the suit as time-barred under 28 U.S.C. § 2401(a), which effectively requires APA claims to be filed "within six years after the right of action first accrues."
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Jane C. Luxton, Lewis BrisboisMs. Luxton may be contacted at
Jane.Luxton@lewisbrisbois.com
Court Finds No Occurrence for Installation of Defective flooring and Explains Coverage for Attorney Fee Awards
January 05, 2017 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Navigators Specialty Ins. Co. v. Moorefield Const. (No.G050759, filed 12/27/16), a California appeals court held that the knowing installation of flooring over a vapor-emitting slab was not an accident or occurrence, entitling the insurer to reimbursement of money paid as damages to settle a construction defect suit. But the court further held that there was no right of reimbursement for the portion of money payable under the policy’s supplementary payments coverage as costs for contractual prevailing party attorney’s fees.
Navigators insured Moorefield, the general contractor for a Best Buy store. Testing in construction revealed a vapor emission rate from the concrete slab above the approved standard for the flooring. The contractor’s personnel testified that it was normal to install the flooring regardless. Notwithstanding, the contractor’s personnel testified that they consulted the owner and were directed to proceed. In doing so, the contractor also expressly released the flooring subcontractor from any warranty claims.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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New York Court of Appeals Finds a Proximate Cause Standard in Additional Insured Endorsements
June 15, 2017 —
Geoffrey Miller - Saxe Doernberger & Vita, P.C.In The Burlington Insurance Company v. NYC Transit Authority, et al., No. 2016-00096, the New York Court of Appeals issued a landmark decision with regard to the meaning of “caused, in whole or in part, by” in the additional insured context. In a split decision, the court rejected Burlington Insurance Company’s argument that the language implied a “negligence” standard, but held that coverage was provided to the additional insured only where the named insured’s acts or omissions were the proximate cause of the injury:
While we [the majority] agree with the dissent that interpreting the phrases differently does not compel the conclusion that the endorsement incorporates a negligence requirement, it does compel us to interpret ‘caused, in whole or in part’ to mean more than ‘but for’ causation. That interpretation, coupled with the endorsement’s application to acts or omissions that result in liability, supports our conclusion that proximate cause is required here.[1]
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Geoffrey Miller, Saxe Doernberger & Vita, P.C.Mr. Miller may be contacted at
gjm@sdvlaw.com
Newmeyer Dillion Announces Jessica Garland as Its Newest Partner
January 16, 2024 —
Newmeyer DillionNEWPORT BEACH, CALIF. – January 10, 2024 – Prominent business and real estate law firm Newmeyer Dillion is pleased to announce that Newport Beach attorney Jessica Garland has been elected to partnership.
Garland focuses her practice on employment law and construction law. In her employment practice, Jessica defends companies against numerous types of employment-related claims including claims for discrimination, wrongful termination, harassment, retaliation, unfair competition, wage and hour violations, employee misclassifications, and Cal/OSHA citations.
Garland's practice also includes work in residential and commercial construction. Jessica represents residential developers in complex, multi-party construction defect disputes. In commercial construction, Jessica is focused on defending general contractors in all aspects of construction litigation including delay claims, mechanic's lien claims, defect litigation claims, ADA claims, and construction contract disputes.
About Newmeyer Dillion
For over 35 years, Newmeyer Dillion has delivered creative and outstanding legal solutions and trial results that achieve client objectives in diverse industries. With over 60 attorneys working as a cohesive team to represent clients in all aspects of business, employment, real estate, environmental/land use, privacy & data security and insurance law, Newmeyer Dillion delivers holistic and integrated legal services tailored to propel each client's operations, growth, and profits. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California and Nevada, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949.854.7000 or visit www.newmeyerdillion.com.
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The EPA and the Corps of Engineers Propose Another Revised Definition of “Waters of the United States”
February 14, 2022 —
Anthony B. Cavender - Gravel2GavelOn December 7, 2021, the most recent proposed revision to the Clean Water Act’s term, “Waters of the United States” was published in the Federal Register. (See 86 FR 69372.) Comments on this proposal must be submitted by February 7, 2022. This term controls the scope of federal regulatory powers in such programs as the development of water quality standards, impaired waters, total maximum daily loads, oil spill prevention, preparedness and response plans, state and tribal water quality certification programs, the National Pollutant Discharge Elimination System (NPDES) permit program, and the Corps of Engineers’ dredge and fill program. The Environmental Protection Agency (EPA) and the Corps of Engineers have jointly drafted this comprehensive proposed rule, which also responds to President Biden’s Executive Order 13990, issued in January 2021.
Background
The agencies noted that they have repeatedly defined and re-defined “Waters of the United States” since the Clean Water Act was enacted in 1972. This level of sustained commitment is unique to this program, perhaps reflecting the importance of the programs that are implemented through the Clean Water Act. The most recent rulemaking efforts took place in 2015, 2017, 2020 and now 2022, and the Supreme Court has issued several landmark rulings in response to these efforts. See City of Milwaukee v. Illinois, 451 US 304 (1981), United States v. Riverside Bayview, 474 US 121 (1985), SWANCC v. United States, 531 US 159 (2001), Rapanos v. United States, 547 US 715 (2006), National Association of Manufacturers v. Department of Defense, 138 S Ct 617 (2018), and County of Maui, Hawaii v. Hawaii Wildlife Fund, 140 S, Ct 1462 (2020). The rules promulgated in 2015 and entitled, “Clean Water Act: Definition of Waters of the United States” expanded the scope of federal regulatory jurisdiction, but the 2020 rule, entitled the “Navigable Waters Protection Rule,” contracted that scope. Now, the agencies have proposed the “Revised Definition of ‘Waters of the United States,’” which will rescind the 2020 rule and inevitably restore something of the scope of the 2015 rule by returning to the familiar “1986 rules” that were issued by the Corps of Engineers in 1986 and EPA in 1988, as modified by the recent Supreme Court decisions mentioned above. Both the 2015 and 2020 rules were mired in litigation and the Corps and EPA view the resort to the 1986 rules as a fresh start for the Clean Water Act. In short, the topsy-turvy history of regulation under the Clean Water Act continues.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com