Guardrail Maker Defrauded U.S. of $175 Million and Created Hazard, Jury Says
October 22, 2014 —
Patrick G. Lee – BloombergSecret changes by Trinity Industries Inc. to its guardrail systems were found to have cheated the U.S. government, exposing the company to $1 billion in damages and penalties and sending shares plummeting as states question the safety of the product.
The east Texas jury’s verdict comes as scrutiny of the highway-safety product called the ET-Plus intensifies across the country after it’s been blamed for multiple deaths. The Federal Highway Administration this month asked all states to start submitting information on crashes involving the ET-Plus to the agency’s safety office.
The agency will evaluate the findings of the case and “consider whether it affects the continued eligibility of the ET-Plus,” Brian Farber, a spokesman for the Department of Transportation, said in an e-mail.
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Patrick G. Lee, BloombergMr. Lee may be contacted at
plee315@bloomberg.net
General Contractor Cited for Safety Violations after Worker Fatality
September 17, 2015 —
Beverley BevenFlorez-CDJ STAFFThe general contractor of Washington’s SR 520 Floating Bridge Project was cited by the Washington Department of Labor & Industries (L&I) “for serious safety violations following the death of worker Joe Arrants in March.” According to EHS Today, “Arrants was killed when he fell approximately 60 feet to the dock below.”
EHS Today reported that during the investigation, L&I found that the fall protection systems were not used “in accordance with fall protection standards and the manufacturer’s recommendation during forming and stripping operations.” Furthermore, there was no “lifesaving skiff immediately available,” or “a ring buoy with at least 90 feet of line, which would make rescue difficult if a worker fell into the water,” and the contractor did not ensure that the hand tools and equipment were in good, working condition.
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What Construction Contractors Should Know About the California Government Claims Act
May 28, 2024 —
Garret Murai - California Construction Law BlogIf you work on state or local public works projects in California you should have at least a basic understanding of the Government Claims Act formerly known as the Tort Claims Act (Govt. Code §§ 900 et seq.). In the event of a dispute with a public entity, the Government Claims Act will usually apply, absent contractual provisions providing otherwise (Govt. Code §§930, 930.2) (e.g., in a construction contract), and requires that a “claim” first be presented to a “public entity” before a claimant files a lawsuit against the public entity. Failure to comply with the Government Claims Act can serve as a bar to maintaining a lawsuit against a public entity.
What types of claims does the Government Claims Act apply to?
The Government Claims Act broadly applies to most claims against state and local public entities. This is not limited to construction projects and includes all claims for “money or damage” arising from death, personal injury, breach of contract, and damage to real and personal property, wrongful death, or breach of contract.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Brazil Congress Chiefs Deny Wrongdoing in Petrobras Scandal
March 12, 2015 —
Raymond Colitt, Anna Edgerton and Sabrina Valle – Bloomberg(Bloomberg) -- Brazil’s congressional heads denied involvement in the country’s largest corruption scandal after being named among dozens of politicians for investigation.
Renan Calheiros and Eduardo Cunha, the heads of the Senate and lower house respectively, and Rio de Janeiro Senator Lindbergh Farias all rejected allegations of graft in the kickback scheme dubbed Carwash. Farias told the Folha de Sao Paulo newspaper in an interview published Sunday that while he may have acted improperly, his actions weren’t illegal. The senator said he took a 2 million real-donation ($650,000) from Andrade Gutierrez SA, a Rio-based construction company.
Reprinted courtesy of Bloomberg reporters
Raymond Colitt,
Anna Edgerton and
Sabrina Valle
Mr. Colitt may be contacted at rcolitt@bloomberg.net
Ms. Edgerton may be contacted at aedgerton@bloomberg.net
Ms. Valle may be contacted at svalle@bloomberg.net
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Being deposed—not just for dictators! Depositions in the construction lawsuit (Law & Order: Hard Hat files Part 5)
January 17, 2013 —
Melissa Dewey Brumback, Construction Law in North CarolinaMy husband always finds it amusing when I talk about going “to depose” somebody. He wants to know just exactly what sort of coup d’etat I am planning. Despite the awkward language, the deposition process is not supposed to feel like water boarding, although if you don’t know what to expect it can be more miserable than truly necessary.
Simply put, a deposition is a chance for the other side’s lawyer to make you answer a whole bunch of questions (some relevant, some seemingly irrelevant) under oath. That is, first you put your hand on the Bible and swear (or affirm) to tell the truth, the whole truth, and nothing but the truth. In reality, depositions serve a variety of purposes– they educate the lawyers about the facts of the case, they give a preview of how you would “present” to a jury (i.e., would a jury like and believe you?), and they can be used to position a case for certain later dispositive motions (that is, summary judgment– stay tuned for Part 8 of the series on that issue).
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Melissa Dewey BrumbackMs. Brumback can be contacted at
mbrumback@rl-law.com
No Coverage for Installation of Defective Steel Framing
June 26, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe California Court of Appeal affirmed the trial court's holding that the insurer had no duty to defend claims arising out of the insureds' installation of defective steel framing in an apartment building. Regional Steel Corp. v. Liberty Surplus Ins. Corp., No. B245961(Cal. Ct. App. May 16, 2014) [decision here].
Regional Steel was a subcontractor for providing reinforced steel to the columns, walls, and floors of an apartment building under construction. Regional used 90 degree and 135 degree seismic hooks as approved by the general contractor, JSM Construction, Inc. The City building inspector issued a correction notice, however, requiring the exclusive use of the 135 degree hooks. Levels one through three had defective tie hooks and required repair. JSM refused to pay Regional's invoices and withheld $545,000. JSM had to make repairs that required opening up numerous locations in the concrete walls, welding reinforcements to the steel placed by Regional, and otherwise strengthening the inadequate installation.
Regional sued JSM for the withheld payment. JSM cross-claimed, asserting breach of contract and breach of express and implied warranties.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Managing Partner Jeff Dennis Recognized as One of the Most Influential Business People & Opinion Shapers in Orange County
November 17, 2016 —
Newmeyer & Dillion LLPNEWPORT BEACH, Calif. – Nov 15th, 2016 – Prominent business and real estate law firm Newmeyer & Dillion LLP is pleased to announce that managing partner Jeff Dennis was selected as one of the 500 most influential business people and opinion shapers in Orange County by the Orange County Business Journal (OCBJ). Dennis will be recognized in OCBJ’s inaugural issue, OC500, publishing November 14, 2016.
Located in the Newport Beach office, Dennis currently serves as the Firm’s Managing Partner and specializes in a variety of litigation arenas, including construction, real estate and business litigation. He also handles insurance and higher education matters. Tom Newmeyer, Newmeyer & Dillion’s Co-founding Partner, believes the award is representative of the leadership displayed by Dennis. “Jeff is an uncanny consensus builder, and you can see his steady hand in the firms’ growth and success. This recognition is a testament to his strong commitment to the community and his ability to facilitate innovative changes in Orange County.”
Dennis believes that community participation is a vital part of his law practice. He currently serves on the Executive Leadership Team for the American Heart Association’s Orange County Heart Walk. Under Dennis’ leadership, the firm proudly supports the OC Heart Walk, with over 150 participants joining Team N&D in 2016. As such, he volunteered to serve in the Orange County District Attorney’s selective Trial Advocacy Partnership (TAP) program. He is the past president of the Occidental College Board of Governors and helped lead Occidental’s Alumni Association as its former Orange County Regional Chair.
About Newmeyer & Dillion
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. 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 have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com.
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Wisconsin Supreme Court Holds that Subrogation Waiver Does Not Violate Statute Prohibiting Limitation on Tort Liability in Construction Contracts
October 21, 2019 —
Gus Sara - The Subrogation StrategistIn Rural Mut. Ins. Co. v. Lester Bldgs., LLC 2019 WI 70, 2019 Wisc. LEXIS 272, the Supreme Court of Wisconsin considered whether a subrogation waiver clause in a construction contract between the defendant and the plaintiff’s insured violated Wisconsin statute § 895.447, which prohibits limitations of tort liability in construction contracts. The Supreme Court affirmed the lower court’s decision that the waiver clause did not violate the statute because it merely shifted the responsibility for the payment of damages to the defendant’s insurance company. The waiver clause did not limit or eliminate the defendant’s tort liability. This case establishes that while
§ 895.447 prohibits construction contracts from limiting tort liability, a subrogation waiver clause that merely shifts responsibility for the payment of damages from a tortfeasor to an insurer does not violate the statute and, thus, is enforceable.
In Rural Mutual, the plaintiff’s insured, Jim Herman, Inc. (Herman), entered into a contract with Lester Buildings, LLC (Lester) to design and construct a barn on Herman’s property. The contract included a provision that stated the following:
Both parties waive all rights against each other and any of their respective contractors, subcontractors and suppliers of any tier and any design professional engaged with respect to the Project, for recovery of any damages caused by casualty of other perils to the extent covered by property insurance applicable to the Work or the Project, except such rights as they have to the proceeds of such property insurance and to the extent necessary to recover amounts relating to deductibles of self-insured retentions applicable to insured losses. . . . This waiver of subrogation shall be effective notwithstanding allegations of fault, negligence, or indemnity obligation of any party seeking the benefit or production [sic] of such waiver.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com