Homeowner Loses Suit against Architect and Contractor of Resold Home
June 14, 2011 —
CDJ STAFFThe California Court of Appeals in the case of Kizor v. Architects ruled that Mr. Kizor could not make construction defect claims against the architect and contractor of his home, as the defects had caused significant damage to the former owners, and it was they, not Kizor, who could have asserted those claims.
The background of the case was that John and Miranda Redig hired BRU Architects to design a home. During construction in 2000, they wrote to the roofing supplier complaining about leaks. The leaks were caulked, but the roof continued leaking during rains. The Redigs sold their house to Kizor in 2002, with an addendum to the sale contract protecting themselves from liability for further problems with the roof. “Seller has no responsibility for the condition of the roof and stucco and buyer absolves seller of any liability in connection therewith.”
In 2006, Kizor sued the architects, contractor, and subcontractor. The defendants moved for summary judgment which was granted. Kizor appealed, and in this current court case, appeal was denied.
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Traub Lieberman Partners Dana Rice and Jason Taylor Obtain Summary Judgment For Insurance Carrier Client in Missouri Federal Court Coverage Action
April 19, 2022 —
Dana A. Rice & Jason Taylor - Traub LiebermanTraub Lieberman Partners Dana Rice and Jason Taylor were recently successful in obtaining summary judgment for a national insurance carrier client in a federal court declaratory judgment action pending in Missouri. The underlying lawsuit involved two wrongful death actions brought against an insured responsible for performing demolition work on a freight elevator shaft as part of a larger demolition project. The two decedents were operating a motorized wire rope pulley inside the shaft when the system failed, causing the work basket occupied by the decedents to fall and resulting in fatal injuries to the workers. Two state court actions followed against the general contractor on the project, the insured, and various other product suppliers and manufacturers of the freight elevator equipment.
The firm’s client issued commercial general liability insurance policy, which included an “Injury to Employees, Contractors, Volunteers and Other Workers” exclusion that precluded coverage for bodily injury to a broad variety of workers. As respects the insured, the underlying plaintiffs alleged that the decedent-workers were “employed by” the insured, such that the carrier argued the “Injury to Workers” exclusion barred coverage. The carrier filed a declaratory judgment action in the U.S. District Court for the Eastern District of Missouri seeking a declaration that the insurer had no duty to defend or indemnify its insured for the underlying state court actions under the exclusion, and moved for judgment on the pleadings. The carrier also claimed a related “Contractors and Subcontractors” exclusion barred coverage.
Reprinted courtesy of
Dana A. Rice, Traub Lieberman and
Jason Taylor, Traub Lieberman
Mr. Rice may be contacted at drice@tlsslaw.com
Mr. Taylor may be contacted at jtaylor@tlsslaw.com
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Insurer Must Indemnify Additional Insured After Settlement
October 21, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe court determined that Target was an additional insured under its supplier's policy and the insurer had a duty to indemnify Target after it settled the underlying suit. Selective Ins. Co. v. Target Corp., 2015 U.S. Dist. LEXIS 123230 (E.D. Ill. Sept. 15, 2015).
Angela Brown sued Target when she was allegedly injured by a door to a fitting room that came unhinged and fell on her head. Harbor Industries, Inc. supplied Target with its fitting rooms. Pursuant to the "Supplier Qualification Agreement" (SQA), Harbor named Target as an additional insured under its policy with Selective Insurance Company. The SQA became effective and was to remain in effect until terminated by either party. A second agreement, the "Program Agreement," set forth the terms under which Harbor sold the fitting rooms to Target. The Program Agreement went into effect on April 23, 2009, and expired on July 1, 2010. Brown's injury occurred on December 17, 2011, while the SQA and the policy were in effect, but after the Program Agreement expired.
After Brown's injury, Target tendered to Selective, who denied coverage, contending Target was not an additional insured. The policy's endorsement expanded insureds to any additional insured whom Harbor agreed in a written contract to add as an additional insured. Selective filed suit and the parties filed cross-motions for summary judgment.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Miami Building Boom Spreads Into Downtown’s Tent City
October 29, 2014 —
Nadja Brandt – BloombergA building boom that transformed Miami into a destination for the global elite left out the city core, better known for its empty lots filled at night with tents for the homeless. Now the area awaits a $2 billion face lift.
Worldcenter, a 27-acre (11-hectare) development that languished for almost a decade, won city approval last month and is slated to break ground next year near Miami’s business district. The project will include almost 1,000 luxury condominiums and apartments, a Marriott Marquis hotel with convention space, and stores such as Macy’s and Bloomingdale’s.
Developers CIM Group, Falcone Group and Centurion Partners are seeking to breathe life into a neighborhood often referred to as the “hole in the doughnut,” an area of blight and weedy lots surrounded by luxury properties that are attracting South American, European and Asian buyers. Its revival reflects both the strong investor demand in Miami and a national trend toward a mix of real estate in an urban center catering to people who want to live, work and play in close proximity.
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Nadja Brandt, BloombergMs. Brandt may be contacted at
nbrandt@bloomberg.net
Construction Litigation Roundup: “The New Empty Chair.”
June 04, 2024 —
Daniel Lund III - LexologyIn a unanimous opinion, the United States Supreme Court ruled that cases in litigation in federal court but which are determined to be governed by the Federal Arbitration Act should be stayed pending arbitration, not dismissed.
Traditionally, some federal circuits treated the text of 9 U.S.C. §3 – which speaks in terms of a stay of a matter filed in court but referred to arbitration (“…shall on application of one of the parties stay the trial of the action until such arbitration has been had in accordance with the terms of the agreement…”) – as discretionary, dismissing suits when all of the claims brought in the court were referred to arbitration.
In the case, the plaintiffs sued in Arizona state court on labor law violations, and the case was removed to federal court. When the defendant moved to compel arbitration and to dismiss, the plaintiffs “conceded that all of their claims were arbitrable.” Nonetheless, the plaintiffs requested a stay of the case, which the district court refused, dismissing the case without prejudice.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
The Families First Coronavirus Response Act: What Every Employer Should Know
April 06, 2020 —
Donald A. Velez, Karissa L. Fox & Sarah K. Carpenter - Smith CurrieSmith Currie provides this update regarding the Families First Coronavirus Response Act as part of its continuing effort to monitor developments concerning the Coronavirus disease (“COVID-19”) and provide guidance as to potential issues that may arise in businesses across the United States.
On March 18, 2020, President Trump signed into law the Families First Coronavirus Response Act (the “Act”), which contains provisions requiring certain private employers to provide paid leave to employees who cannot work because of Coronavirus, expanding Family and Medical Leave Act coverage, providing for federal tax credits to affected employers, and providing eligible states the ability to further fund their unemployment trust fund accounts. The Act is effective as of April 2, 2020 and will remain in place through December 31, 2020.
Below, we provide a summary of the Act and several of its key components, including the Emergency Family and Medical Leave Expansion Act (“EFMLEA”), the Emergency Paid Sick Leave Act, and the Emergency Unemployment Insurance Stabilization and Access Act.
Reprinted courtesy of Smith Currie attorneys
Donald A. Velez,
Karissa L. Fox and
Sarah K. Carpenter
Mr. Velez may be contacted at davelez@smithcurrie.com
Ms. Fox may be contacted at klfox@smithcurrie.com
Ms. Carpenter may be contacted at skcarpenter@smithcurrie.com
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Does Article 2 of the Uniform Commercial Code Impact Your Construction Project?
November 07, 2022 —
Chris Cazenave - ConsensusDocsThe Uniform Commercial Code (UCC) is a set of statutes governing commercial transactions. Every state has adopted the UCC or some version of it. Understanding when and how the UCC applies to construction contracts is important because it can affect the agreement’s terms.
Article 2 of the UCC applies to the sales of goods, which the UCC defines very broadly to mean “all things (including specialty manufactured goods) which are movable . . . other than money in which the price is to be paid . . . .” UCC § 2-105. For the construction industry, UCC Article 2 governs most, if not all, purchases of materials and equipment installed or incorporated into the project. As a result, contractors and subcontractors should be familiar with the circumstances under which Article 2 may apply and how it may affect the project.
This article provides a brief overview of when Article 2 may affect your construction project and why it matters. The article also generally covers the UCC’s potential effects on the applicable statute of limitations, implied warranties, and when the obligation to make the payment arises.
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Chris Cazenave, Jones Walker LLP (ConsensusDocs)Mr. Cazenave may be contacted at
ccazenave@joneswalker.com
Renters ‘Sold Out’ by NYC Pensions Press Mayor on Housing
May 19, 2014 —
Martin Z. Braun – BloombergElevators break down, ceilings leak and security is lax at the Metro North apartments overlooking the East River in Harlem, says retired rehabilitation technician Bob Montesi, who’s lived there for more than three decades.
Even as deterioration accelerates at the 761-unit complex, which used to be in a state affordable-housing program, some tenants are facing rent increases of as much as 80 percent.
For Montesi, 74, who worked at a New York City-run hospital for 41 years, the changes are especially galling. One of the owners of the building is his pension fund.
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Martin Z. Braun, BloombergMr. Braun may be contacted at
mbraun6@bloomberg.net