The Miller Act Explained
May 21, 2014 —
Beverley BevenFlorez-CDJ STAFFGarret Murai, on his California Construction Law Blog, goes over the nuances of the Federal Miller Act. Murai explained, “Named after John E. Miller, former Arkansas Congressman, later U.S. Senator and still later federal judge, the Miller Act was enacted in 1935 in the middle of the Great Depression, to help ensure that subcontractors and material suppliers working on federal projects get paid, by requiring contractors who contract directly with the federal government on federal construction projects furnish payment and performance bonds.”
Murai answered questions such as what is required under the act, who is protected, how a general contractor could protect itself from a Miller Act claim, as well as others.
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Contractor Not Liable for Flooding House
October 02, 2013 —
CDJ STAFFKnife River Corp was hired by the town of Post Falls, Idaho to do road and sewer construction work. In the process, they interrupted a 6-inch water supply line, sending the water into a wastewater line. From there, the water flooded a home in Post Fall. The city paid more than $7,800 in damages.
Post Falls sued Knife River’s insurer for coverage. The city has lost its lawsuit and is responsible for $18,500 in attorneys’ fees. Despite all this, the city administrator says that the city still has a good working relationship with Knife River.
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Scaffolding Collapse Kills Workers at China Construction Site
November 30, 2016 —
Beverley BevenFlorez-CDJ STAFFThe New York Post reported that a scaffolding collapsed in Beijing, China, “sending iron pipes, steel bars and wooden planks tumbling down on about 70 workers in the country’s worst work-safety accident in over two years.” Out of seventy workers, sixty-seven are reported to have died in the accident, while two are injuried, and one worker is missing. The cause of the accident is still under investigation.
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Housing Starts in U.S. Drop to Lowest Level in Three Months
February 23, 2016 —
Michelle Jamrisko – BloombergNew-home construction in the U.S. unexpectedly cooled in January, indicating there is a limit to how much gains in residential real estate will boost growth at the start of 2016.
Housing starts dropped 3.8 percent to a 1.1 million annualized rate, the weakest in three months, from a 1.14 million pace the prior month, a Commerce Department report showed Wednesday in Washington. The median forecast of 76 economists surveyed by Bloomberg was 1.17 million. Permits, a proxy for future construction, were little changed.
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Michelle Jamrisko, Bloomberg
Once Again: Contract Terms Matter
May 11, 2020 —
Christopher G. Hill - Construction Law MusingsI know, you’ve heard this over and over again here at Construction Law Musings: courts in Virginia will interpret a contract strictly and in a manner that gives meaning to its unambiguous terms.
A recent case out of the Eastern District of Virginia federal court, White Oak Power Constructors v. Mitsubishi Hitachi Power Systems, reinforces this point. The basic facts of the case relevant to this discussion and the Court’s opinion are these. Old Dominion Electric Cooperative (ODEC) hired White Oak Power Constructors (White Oak) to build a natural gas power plant. The contract between ODEC and White Oak provided for liquidated damages for delay and also contained a risk of loss provision making ODEC responsible for certain losses or damages due to property damage at the plant. I highly recommend that you read the facts of the case in full to get the details of the terms of these clauses.
Needless to say (or this case wouldn’t be the subject of a construction law blog), the project ran past completion date and liquidated damages were assessed to the tune of more than $50,000,000.00. The delay was alleged to have been caused in substantial part by property damage due to weather, fire, and ice among other causes.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Insureds Survive Summary Judgment on Coverage for Hurricane Loss
June 19, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe magistrate judge recommended that the insurer's motion for summary judgment be denied, finding a material issue of fact regard the cause of loss after Hurricanes Laura and Delta. Armstrong v. Amguard Ins Co., 2023 U.S. Dist. LEXIS 76869 (E.D. Texas, April 14, 2023).
The policy excluded damage caused by wear and tear, differential foundation movement, as-built deficiencies, manual damage, and pre-existing conditions. Texas applied the doctrine of concurrence causes, meaning if damages were due to both covered and non-covered causes of loss, the insureds had to segregate the damage caused by covered causes of loss from the damage caused by non-covered causes of loss. Coverage was denied and the insureds filed suit.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
THE CALIFORNIA SUPREME COURT HAS RULED THAT THE RIGHT TO REPAIR ACT (SB800) IS THE EXCLUSIVE REMEDY FOR CONSTRUCTION DEFECT CLAIMS NOT INVOLVING PERSONAL INJURIES WHETHER OR NOT THE UNDERLYING DEFECTS GAVE RISE TO ANY PROPERTY DAMAGE in McMillin Albany LL
January 24, 2018 —
Chapman, Glucksman, Dean, Roeb, & BargerRICHARD H. GLUCKSMAN, ESQ.
GLENN T. BARGER, ESQ.
JON A. TURIGLIATTO, ESQ.
DAVID A. NAPPER, ESQ.
The Construction Industry finally has its answer. The California Supreme Court ruled that the Right to Repair Act (SB800) is the exclusive remedy for construction defect claims alleged to have resulted from economic loss, property damage, or both. Our office has closely tracked the matter since its infancy. The California Supreme Court’s holding resolves the split of authority presented by the Fifth Appellate District’s holding in
McMillin Albany LLC v. Superior Court (2015) 239 Cal.App.4th 1132, which outright rejected the Fourth Appellate District’s holding in
Liberty Mutual Insurance Co. v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 98.
By way of background, the Fourth District Court of Appeal held in
Liberty Mutual that compliance with SB800’s pre-litigation procedures prior to initiating litigation is only required for defect claims involving violations of SB800’s building standards that have not yet resulted in actual property damage. Where damage has occurred, a homeowner may initiate litigation under common law causes of action without first complying with the pre-litigation procedures set forth in SB800. Two years later, the Fifth District Court of Appeal, in
McMillin Albany, held that the California Legislature intended that all claims arising out of defects in new residential construction sold on or after January 1, 2003 are subject to the standards and requirements of the Right to Repair Act, including specifically the requirement that notice be provided to the builder prior to filing a lawsuit. Thus, the Court of Appeal ruled that SB800 is the exclusive remedy for all defect claims arising out of new residential construction sold on or after January 1, 2003.
After extensive examination of the text and legislative history of the Right to Repair Act, the Supreme Court affirmed the Fifth District Court of Appeal’s ruling that SB800 preempts common law claims for property damage. The Complaint at issue alleged construction defects causing both property damage and economic loss. After filing the operative Complaint, the homeowners dismissed the SB800 cause of action and took the position that the Right to Repair Act was adopted to provide a remedy for construction defects causing only economic loss and therefore SB800 did not alter preexisting common law remedies in cases where actual property damage or personal injuries resulted. The builder maintained that SB800 and its pre-litigation procedures still applied in this case where actually property damages were alleged to have occurred.
The Supreme Court found that the text and legislative history reflect a clear and unequivocal intent to supplant common law negligence and strict product liability actions with a statutory claim under the Right to Repair Act. Specifically the text reveals “…an intent to create not merely
a remedy for construction defects but
the remedy.” Additionally certain clauses set forth in SB800 “…evinces a clear intent to displace, in whole or in part, existing remedies for construction defects.” Not surprisingly, the Court confirmed that personal injury damages are expressly not recoverable under SB800, which actually assisted the Court in analyzing the intent of the statutory scheme. The Right to Repair Act provides that construction defect claims not involving personal injury will be treated the same procedurally going forward whether or not the underlying defects gave rise to any property damage.
The Supreme Court further found that the legislative history of SB800 confirms that displacement of parts of the existing remedial scheme was “…no accident, but rather a considered choice to reform construction defect litigation.” Further emphasizing how the legislative history confirms what the statutory text reflects, the Supreme Court offered the following summary: “the Act was designed as a broad reform package that would substantially change existing law by displacing some common law claims and substituting in their stead a statutory cause of action with a mandatory pre-litigation process.” As a result, the Supreme Court ordered that the builder is entitled to a stay and the homeowners are required to comply with the pre-litigation procedures set forth in the Right to Repair Act before their lawsuit may proceed.
The seminal ruling by the California Supreme Court shows great deference to California Legislature and the “major stakeholders on all sides of construction defect litigation” who participated in developing SB800. A significant win for builders across the Golden State, homeowners unequivocally must proceed via SB800 for all construction defect claims arising out of new residential construction sold on or after January 1, 2003. We invite you to contact us should you have any questions.
Reprinted courtesy of Chapman Glucksman Dean Roeb & Barger attorneys
Richard Glucksman,
Glenn Barger,
Jon Turigliatto and
David Napper
Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com
Mr. Barger may be contacted at gbarger@cgdrblaw.com
Mr. Turgliatto may be contacted at jturigliatto@cgdrblaw.com
Mr. Napper may be contacted at dnapper@cgdrblaw.com
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The Power of Team Bonding: Transforming Workplaces for the Better
June 10, 2024 —
Alexa Stephenson & Brittney Aquino - Kahana FeldThe number of civil Complaints filed in California has been steadily rising over the last few years. When employees struggle daily to make a dent in what seems as an insurmountable to-do list, taking time away from work to chat with coworkers about their weekends or the latest Netflix drop seems counterintuitive. Yet recent studies suggest that taking even 30 minutes away from your workday to engage in team bonding has lasting benefits. Investing in team bonding activities is not just about having fun; it is about creating a cohesive, motivated, and high-performing team that can drive organizational success. As the evidence suggests, the return on investment for team bonding activities is substantial, making it a vital component of any successful workplace strategy.
Enhancing Communication and Collaboration
One of the primary benefits of team bonding is improved communication among team members. Effective communication is the bedrock of any successful team, and activities designed to foster relationships can significantly enhance this aspect. A study conducted by MIT’s Human Dynamics Laboratory found that teams with higher levels of social interaction outside of formal meetings performed better than those with limited interaction. These teams were more cohesive, coordinated, and ultimately more productive.
Bonding activities, as simple as group lunches or intensive as a weekend retreat, create opportunities for employees to interact in a relaxed setting. This helps break down barriers and encourages open communication, which translates into a more collaborative work environment. When employees feel comfortable sharing ideas and feedback, it leads to better problem-solving and innovation.
Reprinted courtesy of
Alexa Stephenson, Kahana Feld and
Brittney Aquino, Kahana Feld
Ms. Stephenson may be contacted at astephenson@kahanafeld.com
Ms. Aquino may be contacted at baquino@kahanafeld.com
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