Word of the Day: “Contractor”
September 16, 2024 —
Garret Murai - California Construction Law BlogWhat’s in a word? When it comes to insurance policies, a word, can potentially mean millions of dollars.
In
California Specialty Insulation, Inc. v. Allied World Surplus Lines Insurance Company, 102 Cal.App.5th 1 (2024), an insured and its insurer battled it out over the word “contractor,” and whether an exclusion from coverage of bodily injury to any employee or temporary worker “of any contractor or subcontractor,” excluded a personal injury claim brought by an employee of a general contractor against a subcontractor.
The California Specialty Contractor Case
In 2017, Air Control Systems, Inc. (“Air Control”) was contracted to perform improvements at a building in Los Angeles, California. Air Control in turn subcontracted with California Specialty Insulation, Inc. (“CSI”) to install duct insulation on the project.
During construction, an employee of Air Control was injured when he fell 16 to 20 feet from a ladder that was struck by a scissor lift driven by an employee of CSI. Approximately two years later the Air Control employee filed a personal injury lawsuit against CSI.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
The Living Makes Buildings Better with Computational Design
November 12, 2019 —
Aarni Heiskanen - AEC BusinessThe AEC industry has a responsibility and mandate when it comes to addressing significant global challenges in the sector and improving operational practice. Professionals such as Lorenzo Villaggi, Senior Research Scientist at The Living, believe that new design technologies hold the key to better-performing built environments.
“Although I’m trained as an architect, I’ve always had an interest in how technology can interact with and have an impact on design processes,” says Lorenzo. “I’ve developed a familiarity with advanced computational tools and eventually developed my own.”
These computational tools are primarily designed to assist with the generation of design options and improve performance analysis. They range from small systems that help users design faster, all the way to elaborate software that can perform complex, mission-critical tasks.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Big Bertha Lawsuits—Hitachi Zosen Weighs In
January 31, 2018 —
John P. Ahlers – Ahlers Cressman & Sleight PLLCIn a recent article published by
Seattle Business Magazine, the Japanese manufacturer of the much-maligned tunnel machine (nicknamed “Bertha”) provided its version of events and its position to the public. The interview took place after executives from Hitachi Zosen were not invited to the ceremony celebrating Bertha’s breakthrough at the end of its two-mile journey underground Seattle. Ultimately, apparently, Seattle Tunnel Partners (“STP”), the general contractor for the project, and Washington State Department of Transportation (“WSDOT”) agreed that Hitachi Zosen executives could attend the event, but they were not allowed to stand with other dignitaries on a specially-built viewing platform. The $3.2 billion Alaska Way Viaduct replacement project is embroiled in a number of legal controversies. Now that the tunnel is finished, Hitachi Zosen has finally decided to tell its side of the story.
Hitachi’s problems started on December 5, 2013, three days after the tunnel-boring machine (“TBM”) hit a 120-foot long, eight-inch diameter steel well casing (the project DRB has determined that the pipe was a differing site condition), the TBM overheated and ground to a halt. The project was shut down almost two years while the TBM was being repaired. According to Hitachi Zosen, it always worked hard to get the job done. “We wanted to finish the tunnel and make Seattle happy with the results,” said Hidetoshi Hirata, the general manager for Hitachi Zosen.
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John P. Ahlers, Ahlers Cressman & Sleight PLLCMr. Ahlers may be contacted at
john.ahlers@acslawyers.com
Force Majeure and COVID-19 in Construction Contracts – What You Need to Know
April 06, 2020 —
Brenda Radmacher & Jason Suh - Gordon & Rees Construction Law Blog“Force Majeure” – While most construction contracts contain these provisions, they are often not understood in relation to the implications they may have on construction projects. With the onset of the COVID-19 pandemic, we are all taking a closer look at many portions of our contracts. The following is a brief primer on how to understand your construction contract and its potential implications on your business in this season of change.
What is a Force Majeure?
Construction contracts usually take into consideration that the parties want to agree at the outset on who bears the risk of unforeseen incidents that may affect the project’s progression. These issues are generally handled in a “force majeure” clause. Force majeure, according to Mariam Webster’s Dictionary is a “superior or irresistible force; or an event or effect that cannot be reasonably anticipated or controlled.” To be deemed a force majeure, generally the circumstances must be outside of a party’s control which makes performance impossible, inadvisable, commercially impractical, or illegal. In addition to being unforeseeable, the circumstances must have external causation, and be unavoidable. However, the key to understanding if COVID-19 will be deemed a condition that will excuse a contractor’s performance is the specific language in the provision.
Generally force majeure events are unavoidable events such as “acts of God,” most notably weather conditions including hurricanes, tornadoes, floods, earthquakes, landslides, and wildfires, as well as certain man-made events like riots, wars, terrorism, explosions, labor strikes, and scarcity of energy supplies. However, there is not much case law or specifics on conditions similar to COVID-19.
Reprinted courtesy of
Brenda Radmacher, Gordon & Rees and
Jason Suh, Gordon & Rees
Ms. Radmacher may be contacted at bradmacher@grsm.com
Mr. Suh may be contacted at jwsuh@grsm.com
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Insurers' Motion to Void Coverage for Failure to Attend EUO Denied
January 04, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer's motion for summary judgment and disposal of the insureds' claim due to failure to attend an examination under oath (EUO) was denied. Perkins v Syndicate 4242 of Lloyd's of London, 2022 U.S. Dist. LEXIS 196922 (W.D. La. Oct. 28, 2022).
The insureds' home suffered damage from Hurricane Laura on August 27, 2020, and Hurricane Delta on October 9, 2020. The insureds reported damage after Hurricane Laura under the homeowners policy. They filed suit in August 2021, alleging that Lloyds failed to adequately inspect their claims. The court issued a Case Management Order (CMO) that governed initial disclosures and the parties' participation in a streamlined settlement process for hurricane claims. The dispute did not settle, however, so the matter was set for a bench trial.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
North Carolina Appeals Court Threatens Long-Term Express Warranties
April 09, 2014 —
Beverley BevenFlorez-CDJ STAFFJonathan Massell of the firm Nexsen Pruet explained how a “recent holding by the North Carolina Court of Appeals is threatening to render many long-term express warranties ineffective,” in the online publication Lexology.
In Christie v. Hartley Construction, Inc., “the court held that the six-year North Carolina statute of repose for improvements to real property trumps the bargained-for duration terms of an express warranty.” In the Christie case, this meant that even though the homeowners had a twenty year warranty, because of the statute of repose, the warranty effectively expired after six years.
Massell stated to “be mindful of jurisdiction.” If the express warranty is in a state other than North Carolina, it’s possible that the claim could be filed in that state instead of North Carolina. For instance, according to Massell, South Carolina’s “statue of repose does not expire until eight years after the date of substantial completion for an improvement to real property.” Furthermore, “long-term warranties are not trumped by the South Carolina statute of repose.”
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A Court-Side Seat – Case Law Update (February 2022)
March 06, 2022 —
Anthony B. Cavender - Gravel2GavelIt is already early in 2022, but several important environmental cases have already been decided by the federal district and federal appellate courts.
THE COURTS OF APPEAL
The U.S. Court of Appeals for the Fourth Circuit
West Virginia State University Board of Governors v. The Dow Chemical Company, et al.
On January 10, 2022, the court decided this case, in which Dow and the other defendants attempted to remove a state groundwater contamination lawsuit to federal court, citing the federal officer removal statute and the presence of a significant federal question. Both the federal district court and the appellate court rejected these arguments and remanded the lawsuit to the state court. For many years, Dow and other parties had been engaged in a RCRA hazardous waste cleanup at an industrial site located in Institute, West Virginia. RCRA permits and corrective action authorizations were issued or supervised by EPA. The plaintiffs complained that the groundwater cleanup, insofar as it affected their property, was deficient, which compelled them to supplement the ongoing federal cleanup with a lawsuit based on West Virginia causes of action and unique to their property. After a careful review of the record, the Fourth Circuit held that the defendants were not acting under the “subjection, guidance or control” of the EPA, and therefore the federal officer removal statute did not apply. Moreover, there was no federal question to resolve as the separate state lawsuit did not challenge a CERCLA cleanup nor did it arise from the RCRA remedial measures that had been taken.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
ASCE Statement on Congress Passage of WRDA 2024
January 07, 2025 —
Feniosky Peña-Mora - American Society of Civil EngineersWASHINGTON, DC. – ASCE applauds Congress for passing the bipartisan Water Resources Development Act (WRDA) for 2024, Congress's biennial authorization for new U.S. Army Corps of Engineers (USACE) projects. WRDA 2024 authorizes 21 USACE water resources projects across 15 states, Washington, D.C., and Puerto Rico, with a focus on waterway navigation, hurricane and storm damage risk reduction, flood risk management, and ecosystem restoration. This legislation will support vital port and inland waterways projects through provisions such as an adjustment of the cost share formula for the Inland Waterways Trust Fund (IWTF), which helps pay for major rehabilitation and construction efforts along navigation channels, and an increase in the depth at which federal port and harbor projects can receive federal assistance for construction and maintenance. These provisions can help raise the ports (B-) and inland waterways (D+) grades reflected in ASCE's 2021
Report Card for America's Infrastructure, and we are thrilled to see WRDA 2024 prioritizing policies that will improve the nation's infrastructure systems.
The latest agreement includes the reauthorization of the National Dam Safety Program (NDSP) through 2028, a top legislative priority for ASCE and a critical program needed to improve the "D" grade that dams received in the 2021 Report Card for America's Infrastructure. The NDSP is the primary source of federal funding supporting state dam safety programs with inspection and monitoring activities, emergency preparedness, and staffing needs. The agreement also incorporates low-head dams into the National Inventory of Dams. These small structures can have deadly consequences when unaccounted for because they produce dangerous, undetectable currents. Incorporating them into the National Inventory of Dams will increase awareness and lead to more safety precautions that could save lives.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 160,000 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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