You Can Take This Job and Shove It!
June 10, 2015 —
Garret Murai – California Construction Law BlogThat’s it.
You’ve had it.
They can take their job and shove it!
But can you really tell an owner on a construction project to proverbially shove it where the sun don’t shine?
Well, far be it for me to tread on your First Amendment Rights or stick my nose into the subsequently brought public disturbance charges against you. But can you legally tell an owner to shove it, and that you’re no longer going to perform work on their [insert expletive] project? Well, indeed you can, in limited circumstances, and it’s called a “Stop Work Notice.”
Note: A stop work notice is different from a stop payment notice.
What is a stop work notice?
A stop work notice is a notice given by a direct contractor to a project owner that the contractor will stop work if an amount owed to the contract is not paid within 10 days after notice is given.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
No Additional Insured Coverage Under Umbrella Policy
March 12, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe additional insured was not covered under a property policy for an injury occurring after work was completed. Lewark v. Davis Door Servs., 2014 Wash. App. LEXIS 341 (Wash. Ct. App. Feb. 10, 2014).
Public Storage, Inc. hired Davis Door Service Inc. to perform work at its facilities. The master agreement required Davis Door to maintain a CGL policy that insured Public Storage "during the entire progress of the work." Davis Door secured a CGL policy with American Economy. It also took out an umbrella liability policy with American States.
After Davis Door completed work on a door, Terrie Lewark injury her back opening the door. She sued Public Storage and Davis Door. Lewar and Public Storage settled. Public Storage assigned to Lewark its rights under the umbrella policy with American States. Lewark then sued Davis Door and American States. The trial court found that Public Storage was not an additional insured under the American States umbrella policy.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Choice of Law Provisions in Construction Contracts
October 07, 2024 —
Victoria Davies - ConsensusDocsIf you have used a ConsensusDocs® construction agreement or another industry association construction agreement for one of your projects, you are accustomed to seeing the laws of the state where the construction project is located as the governing law. There are good reasons for the laws of the state where the project is located to govern the construction agreement for the project. Even if not headquartered in the state, the parties have a presence there by virtue of their participation in the project in the state. Personnel and records that may be needed to resolve a claim may be located in the state. If there are experts that need to be engaged, they will likely need to visit the site. These reasons of efficiency and convenience, alone, may justify the parties’ decision to select the project state’s laws to govern their construction contract. However, there is also the policy interest of the project state, whose laws may even mandate that the project state’s laws govern construction contracts for in-state projects and that the parties resolve their disputes in state as well.
Several states have laws that require construction disputes for projects in the state to be resolved under its laws and/or litigated or arbitrated in the state. Some states require only that its laws govern and do not also require that the dispute resolution take place in the state, but some require both – that its laws govern and the disputes be resolved there. There may be different triggers as to when the statute applies. For example, in some states, the statute applies to any construction contract for a project in the state. In others, the law may only be triggered if one of the parties is domiciled in the state.
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Victoria Davies, Jones Walker LLPMs. Davies may be contacted at
vdavies@joneswalker.com
Tenth Circuit Reverses District Court's Ruling that Contractor Entitled to a Defense
October 24, 2023 —
Tred R. Eyerly - Insurance Law HawaiiAfter the district court granted the insured contractor's motion for judgment on the pleadings on the duty to defend, the Tenth Circuit found there was no coverage and reversed. Owners Ins. Co. v. Greenhalgh Planning & Development, Inc., 2023 U.S. App. LEXIS 20137 (10th Cir. Aug. 4, 2023).
Greenhalgh remodeled a house and barn for Michelle and Steven Pickens. After completion of the project, the Pickens sold the property to Teague and Michelle Cowley. The Cowleys later sued the Pickenses asserting various fraud and breach of contract claims. The complaint alleged that the Pickenses misled them into reasonably believing that the barn was a habitable structure, even though it did not qualify as such under the applicable building code because it lacked a fire-sprinkler system.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Torrey Pines Court Receives Funding for Renovation
August 06, 2014 —
Beverley BevenFlorez-CDJ STAFFSan Diego Source reported that “CIT Real Estate Finance provided…$60 million…to refinance existing debt and fund the renovations at Torrey Pines Court,” a five-building Class A office campus located in La Jolla, California. The 206,128 square foot complex, which resides on 9.24 acres, is adjacent to the Torrey Pines Golf Course. CIT has funded the project in partnership with Rockwood Capital and The Muller Company.
"We are excited to begin renovations that will complete our repositioning of Torrey Pines Court with state-of-the-art office space and amenities,” David Streicher, Partner at Rockwood Capital, stated according to a press release in the Wall Street Journal. “We expect that the renovations, coupled with the project's picturesque setting, will solidify Torrey Pines Court's position as the preferred office destination in the submarket. We thank CIT for working with us to create a sound financing package that will take this project to the next level."
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Insurer’s Duty to Indemnify Not Ripe Until Underlying Lawsuit Against Insured Resolved
February 03, 2020 —
David Adelstein - Florida Construction Legal UpdatesA liability insurer has two duties: 1) the duty to defend its insured; and 2) the duty to indemnify its insured.
With respect to the second duty – the duty to indemnify – this duty is typically “not ripe for adjudication unless and until the insured or putative insured has been held liable in the underlying action.” Hartford Fire Ins Co. v. Beazer Homes, LLC, 2019 WL 5596237, *2 (M.D.Fla. 2019) (internal quotation omitted).
For instance, Beazer Homes involved an insurance coverage dispute stemming from construction defects. An owner sued its general contractor for construction defects relating to stucco problems. The general contractor paid for the repairs. The general contractor then sued its stucco subcontractor to recover the costs it incurred. The subcontractor tendered the defense of the lawsuit to its commercial general liability insurer which is defending its insured-subcontractor under the commonly issued reservation of rights.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
RDU Terminal 1: Going Green
June 30, 2014 —
Melissa Dewey Brumback – Construction Law in North CarolinaLast week, I had the fortune to join the Triangle USGBC for its “Talk & Walk” about the RDU Terminal 1 renovation project and its sustainable features. For those who haven’t had the chance, I recommend you check out the new terminal specifics the next time you find yourself jet-setting in or out of Raleigh on Southwest airlines.
Terminal 1 has been in operation since 1981, with the last upgrade in 1991. The 2010 opening of the new Terminal 2 had, until now, cemented Terminal 1′s status as the airport’s ugly duckling- complete with the long, featureless metal addition abandoned to times past.
While the $68 million Terminal 1 renovation cannot compete with the Terminal 2 $580 million budget, it nevertheless is an entirely re-imagined space. Better traffic flow (yes, you can now find where to go through security!), increased daylighting, a new canopy system, and commercial curb canopy (see photo) all complete the new architectural image.
Clark Nexsen principals Irvin Pearce and Doug Brinkley explained the renovation, which included energy saving escalators- the first escalator system in North Carolina that slows down during non-use. Other sustainable features include LEED complaint flooring, 86% structural building re-use (slabs on grade, composite decks, and structural roof deck), and 28% reuse of exterior walls.
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Melissa Dewey Brumback, Construction Law in North CarolinaMs. Brumback can be contacted at
mbrumback@rl-law.com
Maryland Finally set to Diagnose an Allocation Method for Progressive Injuries
February 18, 2020 —
William S. Bennett - Saxe Doernberger & Vita, P.C.Maryland’s highest court recently heard arguments regarding the proper method of allocation of the covered damages from a slowly progressing asbestos injury amongst insurance policies in place over a period of years. Rossello v. Zurich American Insurance Company, Case No. 2436 (Md. 2019). The court may also be forced to determine what the proper trigger of coverage is for latent bodily injury claims, although the plaintiff has not framed the issue in that manner.
In Rossello, the plaintiff, Patrick Rossello, worked for a period of years for the now-defunct Lloyd E. Mitchell, Inc. (“Mitchell”), a construction company operating until 1976. In 1974 he was exposed to and inhaled asbestos fibers. He was ultimately diagnosed in 2013 with malignant mesothelioma as a result of that exposure. Rossello obtained a judgment for approximately $2,700,000 against Mitchell and secured the right to pursue its insurance. As relevant to this dispute, Mitchell carried liability insurance policies, which provide coverage for asbestos related claims, from 1974 to 1977.
Rossello seeks to hold Zurich, as successor to Maryland Casualty Company, accountable for the full value of his award, based on the 1974 policy. Although this contention actually implicates two separate issues, plaintiff’s counsel passed over the initial trigger of coverage issue and focused instead on the issue of allocation of coverage.
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William S. Bennett, Saxe Doernberger & Vita, P.C.Mr. Bennett may be contacted at
wsb@sdvlaw.com