Hurdles with Triggering a Subcontractor Performance Bond
April 05, 2017 —
David Adelstein – Florida Construction Legal UpdatesThere have been a couple of decisions as of late, particularly in federal court, that have gone in favor of a performance bond surety and against a general contractor’s claim against a subcontractor’s performance bond. These decisions have been so unfavorable that they may be swaying certain internal decisions to move to subcontractor default insurance with, perhaps, subcontractors that pose less risk. From the general contractor’s perspective, if they have to stop the management of the job and progress to jump through hoops to trigger the performance bond’s obligations, rightfully or wrongfully, the bond may not provide them the value they need. Performance bonds are an appropriate product in many instances, but there should be more consistency regarding the actual trigger of a subcontractor’s performance bond obligations. Project teams need to absolutely understand what efforts they need to take, and how they need to take such efforts, in order to properly trigger a performance bond’s obligations. This is a must (and I have presented many seminars on this very issue). Or, the general contractor should move away from the traditional AIA /standard performance bond form, which is the direction I always go when I am involved in the drafting of a performance bond.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Newmeyer & Dillion Attorneys Selected to the 2016 Southern California Super Lawyers Lists
June 09, 2016 —
Newmeyer & Dillion LLPNEWPORT BEACH, Calif. – JUNE 6, 2016 – Prominent business and real estate law firm
Newmeyer & Dillion LLP is pleased to announce that three of the firm’s attorneys,
Jennifer L. Ferrentino,
Robyn E. Frick and
Michael B. McClellan were selected to the
Southern California Super Lawyers 2016 Rising Stars list for business litigation. Each year, no more than 2.5 percent of the lawyers in the state are selected by Super Lawyers to receive this honor. The attorneys will be recognized in the July 2016 issues of Super Lawyers Magazine, Los Angeles Magazine and Orange Coast magazine.
In addition, twelve of the firm’s Newport Beach attorneys were selected to the
2016 Southern California Super Lawyers list, an honor given to no more than five percent of the lawyers in California.
Michael S. Cucchissi, Real Estate
Mark S. Himmelstein, Construction Litigation
Jane M. Samson, Real Estate
Jeffrey M. Dennis, Construction Litigation
Charles S. Krolikowski, Eminent Domain
Robert K. Scott, Insurance Coverage
Gregory L. Dillion, Business Litigation
Thomas F. Newmeyer, Business Litigation
Michael J. Studenka, Employee Litigation: Defense
Joseph A. Ferrentino, Construction Litigation
John A. O'Hara, Construction Litigation
Carol S. Zaist, Business Litigation
Making the list since it was originally published in 2004 is co-founding litigation partner
Greg Dillion who was again selected to the
Top 50: 2016 Orange County Super Lawyers List. In addition,
Jennifer L. Ferrentino, Robyn E. Frick, Jane M. Samson and
Carol S. Zaist were listed in the
2016 Top Women Attorneys in Southern California by Super Lawyers.
Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high-degree of peer recognition and professional achievement. The patented selection process includes independent research, peer nominations and peer evaluations. The Rising Stars list is developed using the same selection process except a candidate must be either 40 years old and younger or in practice for 10 years or less.
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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Colorado Court of Appeals holds that insurance companies owe duty of prompt and effective communication to claimants and repair subcontractors
March 01, 2011 —
Colorado Construction LitigationIn Dunn v. American Family Insurance, 09CA2173, 2010 WL 4791948 (Colo. App. Nov. 24, 2010), the Dunns reported a claim to American Family on their homeowners insurance policy after sewer and water backup caused sewage to flood their basement. American Family gave the Dunns contact information for a contractor (ICA) to remediate the flooding. However, ICA was unsuccessful and sewage began to infiltrate the Dunns’ HVAC system. Subsequently, black mold was detected in the HVAC system, the Dunns suffered health and respiratory problems, and they soon after vacated the home. The Dunns hired and fired two more contractors for unsatisfactory work throughout the winter before hiring a fourth to finish the job. Because the home remained vacant and unheated throughout the winter, the water pipes ruptured. The mold spread throughout the entire home and all of the contents needed to be replaced, which amounted to a claim of $340,000 on the policy.
American Family agreed to pay the full $340,000. However, the Dunns brought suit claiming that American Family breached the implied duty of good faith and fair dealing by: 1) failing to screen ICA for expertise; 2) failing to screen ICA for liability insurance coverage; 3) failing to monitor ICA’s work; 4) failing to advise them that flooding can cause further damage, including freezing pipes and mold; and, 5) failing to adequately and promptly communicate with them and remediation subcontractors in the course of investigating and handling their claim.The trial court found no duty owed by American Family beyond adjustment and timely payment of claims. Because American Family paid timely and in full, they dismissed all of the Dunns’ claims. However, the Court of Appeals reversed in part.
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Reprinted courtesy of Chad Johnson, Higgins, Hopkins, McLain & Roswell, LLC. Mr. Johnson can be contacted at johnson@hhmrlaw.com
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A Special CDJ Thanksgiving Edition
November 21, 2017 —
Beverley BevenFlorez-CDJ STAFFWelcome to the Construction Defect Journal’s special Thanksgiving edition. The CDJ staff has compiled the most important and interesting stories so far from 2017. From Supreme Court decisions to state construction defect law shake ups, this week’s edition showcases significant construction defect industry changes. With a mug of hot spiced cider in hand, relax and reflect on what has happened in our industry so far in 2017.
CDJ wishes to give thanks to its amazing contributors and readers. It’s due to your efforts and support that CDJ is able to present a weekly summary of what is happening in the construction defect industry. We hope you enjoy this special edition, and wish you and your family a fun and festive Thanksgiving holiday.
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Environmental Justice Legislation Update
May 17, 2021 —
Anthony B. Cavender - Gravel2GavelEnvironmental Justice, as an urgent priority of the Federal Government, dates back to 1994, and President Clinton’s issuance of Executive Order 12898. This order directed federal agencies to identify and address, as appropriate, the disproportionately high and adverse human health and environment effects of its many programs, policies and procedures on minority populations and low-income populations. The primary legal basis for this order was Title VI of the Civil Rights Act of 1964, in particular, Sections 601 and 602, which prohibit discrimination in programs and activities receiving federal financial aid and assistance. Over the years, the Supreme Court has reviewed the scope and importance of Title VI. In Alexander v. Sandoval, decided in 2001, the Court concluded that while private parties could sue to enforce Section 601 or its implementing regulations, as written, Section 601 only prohibits intentional discrimination. Noting that disproportionate impact is not the sole touchstone of invidious racial discrimination. Moreover, the Court also ruled in Sandoval that private parties cannot sue to enforce regulations implementing Section 602. Perhaps as an acknowledgement of these shortcomings, the Environmental Protection Agency (EPA) has established an administrative system to process environmental justice complaints at 40 CFR Part 7. Without strengthening the statutory base of environmental justice, the program may continue to be the subject of countless symposiums and seminars. However, this may change soon.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Evacuations in Santa Barbara County as more Mudslides are Predicted
March 14, 2018 —
Dave Suggs – CDJ StaffAlene Tchekmedyian’s LA times article “Storm triggers evacuations in Santa Barbara County: 'Don't be fooled into thinking that this can’t happen again',” warns of the deadly potential of mudslides following the devastation that occurred in January that caused 21 fatalities and damaged homes in Montecito.
Debris flow could be triggered by rainfall rates predicted to exceed half and inch per hour. In some areas as much as seven-tenths of an inch of rain per hour are possible because of a chance of thunderstorms.
Mandatory evacuations began Monday to protect residents from the fast-moving storm that is predicted to be worse than January’s. Santa Barbara county officials asked that people help spread the word of the evacuation to everyone in their community. They also created an interactive map to help residents determine their risk level.
Matilija Canyon and North Fork in Ventura County are under voluntary evacuation orders. Areas at the highest risk include Thomas, Sherpa, and Whittier burn areas. Residents can find shelter at the Goleta Valley Community Center at 5679 Hollister Avenue.
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Lauren Motola-Davis Honored By Providence Business News as a 2021 Leader & Achiever
August 04, 2021 —
Lauren Motola-Davis - Lewis BrisboisProvidence Managing Partner Lauren Motola-Davis was recently named a 2021 Leader & Achiever by Providence Business News (PBN). Ms. Motola-Davis, along with 21 other honorees, will be recognized during an in-person ceremony on August 26 at 5:30 p.m. ET at the Aldrich Mansion in Warwick, Rhode Island.
The Leaders & Achievers Award Program recognizes individuals for their notable success and strong leadership both in their fields and to the region. Honorees were chosen based on their long-standing commitment to the business community as well as a sustained demonstration of leading others, community service, and mentoring.
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Lauren Motola-Davis, Lewis BrisboisMs. Motola-Davis may be contacted at
Lauren.MotolaDavis@lewisbrisbois.com
US Civil Rights Tools Are Failing the Most Polluted Black Communities
February 05, 2024 —
Manann Donoghoe & Andre Perry - BloombergIn 2022, the United Nations declared that access to a safe and healthy environment, free of pollutants and toxic waste, is a universal
human right. The resolution provides a legal foundation for international challenges to environmental injustice; it should also provide an impetus for nations like the US to enforce their own environmental protections.
Without more clearly defined rights, some of the greatest environmental injustices may continue to be mired in politics.
Take the case of “Cancer Alley,” an 85-mile stretch along the Mississippi River in Louisiana where Black residents have long faced higher rates of death and morbidity due to polluted and toxic environments. For people of color living in the region,
fresh air is certainly not a right; it is a privilege for others to experience.
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Manann Donoghoe, Bloomberg and
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