Stormy Skies Ahead? Important News Regarding a Hard Construction Insurance Market
August 13, 2019 —
Jason M. Adams - Gibbs GidenWord out of the construction insurance brokerage community is that the construction insurance industry has entered a hard market, seemingly overnight. Property (i.e. builder’s risk), liability and wrap-up markets are all reacting unfavorably, resulting in higher premiums and decreased availability of coverage options.
The prospect of a hard market has been looming for some time given massive weather driven property losses and historically low rates (among other factors). It appears the time is upon us.
Key takeaways for construction professionals are:
- Expect insurance premiums to go up, potentially significantly, at renewal time and/or when seeking a new project specific program (e.g., an OCIP, CCIP, etc.).
- Expect that the available coverage will get worse. Carriers may be unable to offer once standard coverage enhancements and/or may add new exclusions.
- If quotes have been offered consider locking them in now, before the underwriters are forced to increase the rates/restrict coverage, or pull the quotes entirely.
- With respect to wrap-ups and other project specific programs, consider requesting extensions now if the project is expected to go beyond the current policy term.
- As always, the risk management team (lawyer, broker, risk manager) should work together to carefully review contracts and coverage. This will become even more important if the carriers start to introduce new exclusions as a result of the hard market.
Hard markets come and go. The tough times are when true construction insurance professionals separate themselves from the pack and become the key to weathering the storm.
Jason M. Adams, Esq. is Senior Counsel at Gibbs Giden representing construction professionals (owners/developers, contractors, architects, etc.) in the areas of Construction Law, Insurance Law and Risk Management, Common Interest Community Law (HOA) and Business/Civil Litigation. Adams is also a licensed property and casualty insurance broker and certified Construction Risk & Insurance Specialist (CRIS). Gibbs Giden is nationally and locally recognized by U. S. News and Best Lawyers as among the “Best Law Firms” in both Construction Law and Construction Litigation. Chambers USA Directory of Leading Lawyers has consistently recognized Gibbs Giden as among California’s elite construction law firms. Mr. Adams can be reached at jadams@gibbsgiden.com. Read the court decisionRead the full story...Reprinted courtesy of
Do Not Lose Your Mechanics Lien Right Through a Subordination Agreement
December 21, 2020 —
William L. Porter - Porter Law GroupIf you are a member of the California construction industry you might know that the right of a contractor, subcontractor or supplier to record a mechanics lien to protect the right to payment is well protected by state law. In fact, our California Constitution, article XIV, Sec. 3 specifically elevates the right to a mechanics lien to “Constitutional right”. The right to a mechanics lien is further protected by a statutory framework, including Civil Code sec. 8122 which states:
“An owner, direct contractor, or subcontractor may not, by contract or otherwise, waive, affect, or impair any other claimant’s rights under this part, whether with or without notice, and any term of a contract that purports to do so is void and unenforceable unless and until the claimant executes and delivers a waiver and release under this article.”
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Reminder: In Court (as in life) the Worst Thing You Can Do Is Not Show Up
September 28, 2017 —
Christopher G. Hill - Construction Law MusingsAs long time (and possibly recent) readers of Construction Law Musings know, I am a Virginia Supreme Court Certified Mediator. In that capacity, I spend quite a bit of time sitting in general district court courtrooms in places like Goochland and Caroline Counties “court sitting” awaiting a referral from the judge of a case with parties ready and willing to take advantage of the mediation process.
As I sit there wearing my mediator “hat,” I see case after case be called for the first return date. Without fail, several cases are called where the defendant fails to appear after being served with process. There are even a case or two where the plaintiff (the party that picked the return date in the first place) fails to appear. In the first instance, where the defendant doesn’t appear, the judge almost inevitably enters a judgment for the amount sued for by the plaintiff. In the latter instance, the case is dismissed without prejudice to the plaintiff with a shake of the head by the judge at the wasted time and filing fee. This post focuses on the first case.
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Christopher G. Hill, Law Offices of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Congratulations to Associate Madeline Arcellana on Her Selection as a Top Rank Attorney in Southern Nevada!
July 18, 2022 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is proud to announce Senior Associate Madeline Arcellana was selected by Nevada Business Magazine as a Top Rank Attorney in Southern Nevada for her work in Civil Litigation, General Liability, and Personal Injury!
The lawyers selected to Nevada Business Magazine, Top Rank Attorneys list are at the top of their field and each nomination is put through an extensive verification process, resulting in the top attorneys in Nevada who are chosen by their peers. To view Nevada’s 2022 Top Rank Attorneys, please click
here.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Court Sharpens The “Sword” And Strengthens The “Shield” Of Contractors’ License Law
July 24, 2023 —
Kyle S. Case - ConsensusDocsPerforming construction work without the necessary license can have significant repercussions on a contractor’s business. California in particular has become known for its imposition of “strict and harsh” penalties for a contractor’s failure to maintain proper licensure. In the realm of public works projects, any contract with an unlicensed contractor is deemed void. See Business & Professions Code Section 7028.15(e). On private projects, California’s Contractors’ License Law prohibits contractors from maintaining any action to recover payment for their work, and more severe, may require a contractor to disgorge all funds paid to it for performing unlicensed work. See Business & Professions Code Section 7031). These methods of deterrence are referred to as the “shield” and “sword” of the Contractors’ State License Law. Loranger v. Jones, 184 Cal. App. 4th 847, 854 (2010).
In any discussion surrounding licensure, it is important to review the language of the Business and Professions Code (“Bus. & Prof.”). Section 7031(a) states:
Except as provided in subdivision (e), no person engaged in the business or acting in the capacity of a contractor, may bring or maintain any action, or recover in law or equity in any action, in any court of this state for compensation for the performance of any act or contract where a license is required by this chapter without alleging that they were a duly licensed contractor at all times during the performance of that act or contract regardless of the merits of the cause of action brought by the person…
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Kyle S. Case, Watt, Tieder, Hoffar & Fitzgerald LLPMr. Case may be contacted at
kcase@watttieder.com
Inside the Old Psych Hospital Reborn As a Home for Money Managers
October 28, 2015 —
Simone Foxman – BloombergIt’s the most exclusive club for financiers in Dallas.
With seven Jeffersonian-style buildings and manicured lawns, Old Parkland looks more like a college campus than a hive of private-equity firms, hedge funds, foundations and family offices. But the 9.5-acre site, where an abandoned hospital once stood, is now home to some of the city’s wealthiest investors.
Old Parkland is the pet project of Harlan Crow, 66, a son of swashbuckling real estate developer Trammell Crow, whose empire was in tatters when he gave up control in the late 1980s. It’s also a symbol of a decades-long effort to rebuild the family’s legacy. Step inside any of the buildings and you might think you’re in a museum, with Rodin sculptures in the hallways, a 17th century antique sofa in a lobby and a piece of curtain Abraham Lincoln is said to have grabbed after being shot on display.
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Simone Foxman, Bloomberg
ASCE and Accelerator for America Release Map to Showcase Projects from Bipartisan Infrastructure Law
November 15, 2022 —
The American Society of Civil EngineersRESTON, Va. – The American Society of Civil Engineers (ASCE) in partnership with Accelerator for America today announced the release of a new map which features projects that are getting underway with funding from the Infrastructure Investment and Jobs Act (IIJA), otherwise known as the Bipartisan Infrastructure Law (BIL). As the one year anniversary of the BIL approaches on November 15th, funding has been steadily making its way to state and local agencies across the nation, and now it is possible to track how communities are benefiting from investments.
The Bipartisan Infrastructure Law invests in all 17 of the infrastructure categories included in ASCE's 2021 Report Card for America's Infrastructure, which was released eight months before official passage of the law and had assigned our nation's infrastructure a cumulative grade of 'C-'. Communities are now benefiting from replaced lead service lines, safer roads and bridges, and new transit connections.
To view the map, please visit https://infrastructurereportcard.org/bil-project-map/.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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BWB&O Partner Jack Briscoe and Associate Anoushe Marandjian Win Summary Judgment Motion on Behalf of Homeowner Client!
March 13, 2023 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is excited to share that Partner, Jack Briscoe and Associate, Anoushe Marandjian obtained an order for summary judgment in a multi-theory liability action in Los Angeles Superior Court.
Plaintiff suffered severe injuries when he fell off a ladder while performing finish carpentry work at the home of BWB&O’s client. Plaintiff alleged various theories of liability against our client, the homeowner, including that: our client supplied a dangerous and defective ladder that, among other things, was unstable and not tall enough for the job; that the floor was covered with a slippery plastic sheeting hidden underneath construction paper which constituted a dangerous condition; that our client was his “employer” under the Labor Code; and that our client was civilly liable on the basis that he had directly hired Plaintiff, who was an unlicensed contractor. Alternatively, Plaintiff alleged that our client was vicariously liable for the conduct of his general contractor, who failed to maintain worker’s compensation insurance covering Plaintiff.
After several rounds of written discovery, which required extensive attempts to “meet and confer” over Plaintiff’s deficient responses, as well as the parties’ depositions, Mr. Briscoe and Ms. Marandjian filed a Motion for Summary Judgment on behalf of our client on various grounds, including that the Privette Doctrine precluded Plaintiff from recovery against our client and that our client was not negligent (there was no dangerous condition and if there was, our client did not create it or that it existed for a long enough time for our client to have discovered it and remedied it). Plaintiff’s Opposition to our Motion for Summary Judgment included a Declaration from an expert witness alleging various grounds upon which our client was liable.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP