Contractor Walks Off Job. What are the Owner’s Damages?
September 25, 2018 —
David Adelstein - Florida Construction Legal UpdatesWhat are your damages as the result of a breach of the construction contract? This is an important question, right? It is probably the most important part of your case. If you didn’t have damages, you wouldn’t be in a dispute. So, I repeat, what are your damages as the result of a breach of the construction contract? The below case explains dealing with a contractor that elected to walk off the job mid-construction.
In Forbes v. Prime General Contractors, Inc., 43 Fla.L.Weekly D20194a (Fla. 2d DCA 2018), owners hired a contractor to perform a residential renovation job for $276,000. The owners were to pay the contractor in five draw payments (common for residential jobs) where the third draw payment was due upon the contractor’s completion of the dry-in (as defined in the contract). After the contractor received the first two draw payments totaling $138,000 plus an additional $6,000 for updated architectural plans, the contractor claimed the job doubled in price and demanded that the owners pay the contractor the third draw payment immediately (before it was due) plus an additional $31,450. The contractor refused to continue unless the owners agreed to its terms, and then walked off the job when the owners would not agree to these terms (nor should the owners agree to those terms). At the time the contractor walked off the job, the owners’ home was not habitable due to the construction.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
BHA Attending the Construction Law Conference in San Antonio, TX
February 18, 2015 —
Beverley BevenFlorez-CDJ STAFFBert L. Howe & Associates, Inc. (BHA) is proud to be joining with the State Bar of Texas, Construction Law Section as a sponsor and exhibitor at the event, and is excited to announce that they will also be sponsoring a raffle for a $100 Nordstrom gift card to given away at the Conference. Just stop by the BHA booth, and drop your card in the bowl for a chance to win.
With offices in San Antonio and Houston, BHA offers the experience of over 20 years of service to carriers, defense counsel, and insurance professionals as designated experts in nearly 5,500 cases. BHA’s staff encompasses a broad range of licensed and credentialed experts in the areas of general contracting and specialty trades, as well as architects, civil and structural engineers, and has provided services on behalf of developers, general contractors and subcontractors across the state of Texas.
BHA’s experience covers the full range of construction defect litigation, including single and multi-family residential (including high-rise), institutional (schools, hospitals and government buildings), commercial, and industrial claims. BHA also specializes in coverage, exposure, and delay claim analysis.
Download the seminar brochure and register...
Read the court decisionRead the full story...Reprinted courtesy of
Someone Who Hires an Independent Contractor May Still Be Liable, But Not in This Case
April 18, 2023 —
Katherine Dempsey - The Subrogation StrategistIn Allstate Veh. & Prop. Ins. Co. v. Glitz Constr. Corp., 2023 N.Y. App. Div. LEXIS 1180, 2023 NY Slip Op 01171, the Supreme Court of New York, Appellate Division, Second Department (Appellate Court), considered whether a contractor could be found liable for its subcontractor’s alleged negligence in causing injury to a homeowner’s property. The homeowner’s insurer, as subrogee of the homeowner, sought to recover damages from the contractor despite an allegation that the subcontractor – an independent contractor – caused the injury to the homeowner’s property. Finding that there was no evidence that any of the exceptions to the non-liability rule related to hiring independent contractors applied, the Appellate Court affirmed the lower court’s decision granting judgment in favor of the contractor.
In this case, the homeowner hired the contractor (defendant) to convert her garage area into a bedroom and an office. The defendant later hired a subcontractor to perform the electrical rough-in work. At trial, the homeowner’s insurer (plaintiff) presented evidence that the subcontractor, who damaged an existing wire with a drill bit, caused an electrical failure that resulted in a fire. The defendant argued that it could not be held liable for the subcontractor’s alleged negligence because the subcontractor was an independent contractor and, on appeal, the Appellate Court agreed.
Read the court decisionRead the full story...Reprinted courtesy of
Katherine Dempsey, White and Williams LLPMs. Dempsey may be contacted at
dempseyk@whiteandwilliams.com
Construction Demand Unsteady, Gains in Some Regions
June 29, 2011 —
CDJ STAFFThe Associated General Contractors of America reported Tuesday, June 28 that construction employment increased in 120 of the 337 metropolitan areas surveyed between May 2010 and May 2011.
‘While construction employment has stopped plunging, any sign of a recovery remains spotty at best,” said Ken Simonson, the association’s chief economist. ‘The close to even split between areas adding and losing jobs is a reminder that for every market doing well, there is another market that is still hurting.”
The largest number of jobs created was in the Dallas, Texas region, with 5,600 new jobs, a five percent increase. The northern Massachusetts/southern New Hampshire region near Haverhill saw the greatest percentage increase, although that twenty-two percent increase represents only 800 new jobs. The Chicago, Illiinois area added 4,600 jobs, a four percent increase.
Other regions were not so lucky. The Atlanta, Georgia area saw a loss of 7,400 jobs, an eight percent loss. Las Vegas also lost 7,400 jobs, which there represented a sixteen percent decline. The New York City area lost 6,700 jobs, a six percent reduction. The Riverside, California area lost 5,300 jobs, a nine percent loss.
Stephen E. Sandherr, the association’s chief executive officer, blamed a combination of regulation and budget squeezes. "Some in Washington never met a regulation they didn’t like and others never found a penny they didn’t want to pinch. Together that makes for a bad way to boost employment and a great way to stifle the private sector and neglect critical economic infrastructure.”
Read the full story…
Read the court decisionRead the full story...Reprinted courtesy of
Contractor Sues Construction Defect Claimants for Defamation
June 28, 2013 —
CDJ STAFFAndrew Smith and Armando Delgado both own condos in the Willowbrook condominium complex in East Manatee, Florida, and they’ve both been dealing with structural problems with their homes. Now they’re together in another matter as the contractor who has been hired to do the repairs has sued them for defamation. The homeowners claim that the construction company is trying to intimidate them.
KB Homes, which built the Willowbrook complex, hired Dueall Construction to repair the buildings. Anthony Robbins, one of the owners of Dueall, is currently on probation for cocaine trafficking. Smith put this information on a website associated with complaints about KB Homes, while Delgado put a banner on the back of his pickup truck. The lawsuit claims that Smith and Delgado “have initiated a campaign to smear and defame Dueall and its owners.”
Read the court decisionRead the full story...Reprinted courtesy of
Home Buyer Disclosures, What’s Required and What Isn’t
February 05, 2015 —
Beverley BevenFlorez-CDJ STAFFAccording to Sandy Gadow of the Washington Post, while all states require a property disclosure statement, “the extent of what must be revealed can vary from state to state, county to county and even city to city.” Gadow stated that while, “Federal law requires certain disclosures, such as the existence of asbestos or lead-based paint in the home or other known health or safety risks. But the enforcement of other disclosures (such as reporting certain environmental conditions pertinent to the area, or the existence of Megan’s Law offenders) will be determined by local ordinance or law.”
Gadow recommends home buyers go to their state’s Department of Real Estate to discover the Seller Disclosure requirements.
Read the court decisionRead the full story...Reprinted courtesy of
Battle of Experts Cannot Be Decided on Summary Judgment
June 13, 2018 —
Tred R. Eyerly - Insurance Law HawaiiWhen two competing experts disagreed on the cause of the loss, the trial court erred in granting summary judgment to the insurer. Garcia v. Firs Community Ins. Co., Fla. App. LEXIS 4237 (Fla. Ct. App. March 28, 2018).
Garcia, the homeowner, discovered water damage in his home, allegedly due to a roof leak. Garcia notified his insurer, First Community Insurance Company. A forensic engineer, Ivette Acosta, was retained by First Community to inspect the property. After the inspection, coverage was denied.
The homeowner's policy covered direct loss to property only if the loss was a physical loss. Loss caused by ""rain snow, sleet, sand or dust to the interior of a building was excluded unless a covered peril first damaged the building causing an opening in a roof or wall and the rain, snow, sleet, sand or dust enters through this opening." Loss caused by wear and tear, marring, or deterioration was also excluded.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Putting for a Cure: Don’t Forget to Visit BHA’s Booth at WCC to Support Charity
April 28, 2016 —
Beverley BevenFlorez-CDJ STAFFBert L. Howe & Associates, Inc., (BHA) is excited to announce the return of their very popular
Sink a Putt for Charity at the 2016
West Coast Casualty Construction Defect Seminar. This year, participant’s efforts
on the green will help benefit the Susan G. Komen Race for the Cure. As in years past, sink a putt in the BHA golf challenge and win a $25 gift card, and for every successful putt made, BHA will make a $25 cash donation in the golfer’s name to the Susan G. Komen Foundation.
But it doesn’t stop there. Breast cancer touches so many lives, with wives, mothers, sisters, aunts, cousins and daughters all affected by this insidious disease. To further assist in their noble fight, BHA is doubling down. During three Championship Rounds on Thursday morning, afternoon, and evening, BHA will up the ante. For every putt ATTEMPTED (sink or miss), BHA will make a $50 donation to Susan G. Komen, and for every putt MADE, the golfer will also win a $50 gift card.
These Championship Rounds will occur during the Thursday morning break, the afternoon break, and during the first hour of the Thursday evening cocktail party. Bert L. Howe & Associates, Inc., strongly supports the goals and principles of the Susan G. Komen Race for the Cure, and is honored to assist in fulfilling its mission of supporting research, community health, global outreach and public policy initiatives.
While at the booth, don’t forget to test out BHA’s industry leading data collection and inspection analysis systems. BHA has recently added video overviews to their data collection process, as well as next-day viewing of inspection data via their secured BHA Client Access Portal. Discover meaningful cost improvements that translate to reduced billing while providing superior accuracy and credibility.
Attendees can also enter to win Dodger baseball tickets or one of three new iPad Pros! Other BHA giveaways include USB charging blocks, pocket tape measures, multi-tools, laser pointers, foam stress balls, and Callaway golf balls.
For more information on the Susan G. Komen Foundation, please visit their
website.
Read the court decisionRead the full story...Reprinted courtesy of