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Appeals Court Reverses Summary Judgment over Defective Archway Construction

February 10, 2012 — CDJ STAFF

A judge has ruled that a plaintiff can go forward with her suit that she was injured by a defective archway during a birthday party. A three-judge panel of the California Court of Appeals issued this ruling on January 23, 2012, in the case of Trujillo v. Cosio.

Ms. Trujillo attended a birthday party at the home of Maria Cosio and Joel Verduzco. A piñata was hung between a tree and a brick archway. Ms. Trujillo went to get candy that had fallen from the piñata, during which the archway fell on her hand. Subsequent examination of the archway showed that it had not been “properly anchored to the supporting pillars to protect the arch from falling.”

Ms. Cosio and Mr. Verduzco argued that they could not have been aware of the defective nature of the archway’s construction, as it had been built at the request of the prior property owner. The structure was constructed without building permits. Mark Burns, a civil engineer testifying for the plaintiff, said that “a reasonable property owner would have thoroughly tested the archway to ensure it was capable of withstanding such horizontal forces before allowing children to enter into the area.” Mr. Burns noted that twenty rope pulls would have been sufficient to demonstrate the structure’s instability.

The trial court rejected Mr. Burn’s statements, finding that the respondents did not have any knowledge of the defect and that a visual inspection should have sufficed. The court noted that this a triable issue, whether visual inspection suffices, or whether the property owners should have done as Mr. Burns suggested and yank a rope twenty times. The court noted that “although a jury may ultimately disagree with Burn’s opinion, it was supported by sufficient foundation and was not speculative.”

The opinion was written by Judge Flier, with Judges Rubin and Grimes concurring.

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3M PFAS Water Settlement Could Reach $12.5B

July 16, 2023 — Jim Parsons, Debra K. Rubin
3M Co. has offically moved to settle claims of fouled drinking water stemming from the use of so-called “forever chemicals,” striking a deal with U.S. public water systems that could total $10.5 billion to $12.5 billion over 13 years, it said in a June 22 federal filing. Reprinted courtesy of Jim Parsons, Engineering News-Record and Debra K. Rubin, Engineering News-Record Ms. Rubin may be contacted at rubind@enr.com Read the full story... Read the court decision
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MTA’S New Debarment Powers Pose an Existential Risk

July 15, 2019 — Steven M. Charney, Gregory H. Chertoff & Paul Monte - Peckar & Abramson, P.C.
The normal project and contractual risks faced by contractors, consultants and suppliers to the Metropolitan Transportation Authority are considerable. A new law and regulations mandating that the MTA debar contractors, consultants and suppliers for unexcused schedule and cost overruns creates a new and unfair existential risk. The new law, Public Authorities Law Section 1279-h, slipped into the New York State budget bill and passed without public comment, was enacted on April 12, 2019. Implementing regulations were issued on June 5, 2019, and mandate that the MTA debar contractors (defined to include consultants, vendors and suppliers) if they: (1) fail to achieve substantial completion of their contractual obligations within 10% of the adjusted contract time; or (2) present claims for additional compensation that are denied in an amount that exceeds the total adjusted contract amount by 10% or more.[1] To say that your business and your livelihood are at risk is not an overstatement. The MTA umbrella includes the New York City Transit Authority, MTA Capital Construction, Bridges & Tunnels, Long Island Railroad and Metro North, among others. A debarment by one of these authorities will lead to a debarment by all of them, and then to a debarment by all New York State agencies and authorities,[2] and possibly debarment across state lines. Public and major private owners, as part of their RFP and procurement processes, routinely inquire regarding a bidding contractor’s debarment history. The risk is to new contracts and, because the MTA has decided to give retroactive effect to the law and regulations, to contracts that are already ongoing (even though these risks could not have been considered, priced or agreed to by contractors or their sureties). Reprinted courtesy of Peckar & Abramson, P.C. attorneys Steven M. Charney, Gregory H. Chertoff and Paul Monte Mr. Charney may be contacted at scharney@pecklaw.com Mr. Chertoff may be contacted at gchertoff@pecklaw.com Mr. Monte may be contacted at pmonte@pecklaw.com Read the court decision
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Consultant’s Corner: Why Should Construction Business Owners Care about Cyber Liability Insurance?

July 13, 2017 — David Adelstein - Florida Construction Legal Updates
Recently, I wrote an article on the importance of cyber liability insurance for design professionals. The reality, however, is that this is important insurance for all professionals in today’s day and age. A modern, online insurance broker called Embroker was kind enough to submit a guest post on cyber liability insurance. Check it out!!! According to the Cybersecurity Ventures Report, the cost of cybercrime could reach $6 trillion by 2021. That same report predicts that cybercrime will expand into new sectors, such as the construction industry. Assuming your construction business has moved beyond pencil and paper drawings, paper invoices and mailed checks, this prediction is cause for concern. In fact, it’s already come true, as the 2013 Target cyber breach which led to a $39 million court settlement came through a HVAC contractor, a development which underscores the need for Cyber Liability insurance. Considering the numerous issues facing construction business owners — from budget and time constraints to production methods to fire hazards — Cyber Liability insurance may seem like a low priority. But f you expect to stay in business and be profitable, that’s simply not the case. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at Dadelstein@gmail.com

Traub Lieberman Partner Michael K. Kiernan and Associate Brandon Christian Obtain Dismissal with Prejudice in Favor of Defendant

November 27, 2023 — Michael K. Kiernan & Brandon Christian - Traub Lieberman
In a 14-count breach of contract action brought in the Fifteenth Judicial Circuit in Palm Beach County, Florida, Partner Michael K. Kiernan and Associate Brandon Christian obtained dismissal with prejudice in favor of Defendant St. Joseph’s Episcopal Church of Boynton Beach, Florida (“Church”). Plaintiffs, St. Joseph’s Episcopal School (“School”) and its benefactor, William Swaney, filed suit to enforce an alleged 99-year oral lease agreement which Swaney asserted had been made to him by a prior rector of the Church in exchange for his contributions to the School. Plaintiffs also sought emergency injunctive relief to allow the School to continue to operate on Church property. The Church maintained in part that the only lease in effect was a written lease, approved by the Church Vestry and the Diocese of Southeast Florida, and which the Church Vestry unanimously voted not to renew in 2022. Reprinted courtesy of Michael K. Kiernan, Traub Lieberman and Brandon Christian, Traub Lieberman Mr. Kiernan may be contacted at mkiernan@tlsslaw.com Mr. Christian may be contacted at bchristian@tlsslaw.com Read the court decision
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CRH to Buy Building-Products Firm Laurence for $1.3 Billion

September 03, 2015 — Phil Serafino & Andrew Marc Noel – Bloomberg
CRH Plc agreed to buy Los Angeles-based C.R. Laurence Co. for $1.3 billion to expand in products used in window installation as U.S. construction markets stabilize. C.R. Laurence, which is owned by the Friese family, makes hardware and products used in the installation of architectural glass and generated pretax profit of $51 million in 2014, Dublin-based CRH said in a statement Thursday. CRH shares rose 4.9 percent to 25.79 euros as of 8:56 a.m. in Dublin, giving the company a market value of 21.2 billion euros ($24 billion). The purchase is timed with a recovery in U.S. construction markets, driven by demand for industrial buildings. CRH reported a "promising backlog" of business at its Americas Materials division in May. Combining the companies will generate $40 million a year in savings from 2017, it said. Reprinted courtesy of Phil Serafino, Bloomberg and Andrew Marc Noel, Bloomberg Read the court decision
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Last Call: Tokyo Iconic Okura Hotel Meets the Wrecking Ball

August 26, 2015 — Komaki Ito & Andreea Papuc – Bloomberg
Tokyo’s iconic nod to Japanese Modernism, the Hotel Okura, will bid farewell to its last guests next week and face the wrecking ball, despite petitions from around the world to save it. The 1960s-era hotel, which has welcomed international dignitaries and inspired a throng of admirers eager for preservation, will close its doors Aug. 31 to make way for a gleaming new hotel rebuilt in time for the 2020 Olympics, at a cost of about 100 billion yen ($836 million). “What’s odd about the Okura is that it’s a perfect embodiment of ‘60s Modernism, and it represents that very first wave of new development in the region,” Tyler Brule, editor in chief of Monocle magazine, who spearheaded a campaign that included a petition with almost 9,000 signatures, said in an e-mailed response to questions. “For this reason alone, it deserves to be preserved.” Reprinted courtesy of Komaki Ito, Bloomberg and Andreea Papuc, Bloomberg Read the court decision
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Will There Be Construction Defect Legislation Introduced in the 2019 Colorado Legislative Session?

March 18, 2019 — David McLain - Colorado Construction Litigation Blog
With the 2019 Colorado legislative session well underway, the construction industry is waiting with bated breath to see what the Democrat controlled legislature might do with respect to construction defect legislation. In recent years, having a split legislature has prevented any attempts to roll back positive changes in the law, either from the legislature or Colorado courts, that have been hailed by the construction community. This year, odds are good that we will see at least one bill similar to two introduced last year that would hinder the ability to have disputes decided by binding arbitration. While not full frontal assaults on the Colorado Supreme Court decision in the Vallagio case, HB18-1261, the “Colorado Arbitration Fairness Act,” and HB 18-1262, the “Arbitration Services Provider Transparency Act,” would have negatively impacted the ability to resolve any type of case through arbitration. Anything that prevents the resolution of construction defect cases through arbitration will increase the judgments and settlements in such cases, ultimately increasing the costs of construction and for insurance for those in the industry. Read the court decision
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Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

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