Recent Florida Legislative Changes Shorten Both Statute of Limitation ("SOL") and Statute of Repose ("SOR") for Construction Defect Claims
March 19, 2024 —
Holly A. Rice - Saxe Doernberger & Vita, P.C.The Florida Legislature and Governor DeSantis passed Senate Bill 360, effective April 13, 2023, which imposes significant changes to Florida’s statute of limitation (“SOL”) and statute of repose (“SOR”) periods prescribed in Florida Statute § 95.11. In short, the SOL and SOR periods will commence earlier and run earlier, which in effect shortens the time to bring a construction defect claim on both ends of the timeline.1
These changes will have positive impacts for general contractors who may save on insurance premiums with shorter completed operations tails. In other words, the timeframe within which contractors are at risk of being sued for construction-related errors is significantly reduced under the new version of the statute. Owners and developers, on the other hand, may feel that the increased pressure of uncovered construction defects necessitates the filing of lawsuits sooner than they might have otherwise filed. Collectively, all parties involved will certainly have to consider when and how to place their carriers on notice of claims or potential claims and, coupled with Florida’s sweeping changes to fee shifting statutes, insured parties may see more coverage denials which, in turn, could lead to more coverage actions.2
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Holly A. Rice, Saxe Doernberger & Vita, P.C.Ms. Rice may be contacted at
HRice@sdvlaw.com
Massachusetts Supreme Judicial Court Strikes a Deathblow to Substantial Factor Causation in Most Cases; Is Asbestos Litigation Next?
March 22, 2021 —
Christian J. Singewald, Rochelle Gumapac & Timothy J. Keough - White and Williams LLPIn Doull v. Foster, the Massachusetts Supreme Judicial Court (SJC) addressed the proper causation standard in a medical malpractice case. In reaching this issue, the SJC reached far beyond the medical malpractice case before it. The SJC concluded that the substantial factor test for causation, which had been regularly employed in the Commonwealth for decades, was “unnecessarily confusing.” In doing so, the SJC effectively ended the use of the substantial factor test in all negligence cases going forward, except in toxic tort litigation. However, the SJC openly questioned its usefulness in toxic tort litigation and all but welcomed a direct challenge to its use there.
Reprinted courtesy of
Christian J. Singewald, White and Williams LLP,
Rochelle Gumapac, White and Williams LLP and
Timothy J. Keough, White and Williams LLP
Mr. Singewald may be contacted at singewaldc@whiteandwilliams.com
Ms. Gumapac may be contacted at gumapacr@whiteandwilliams.com
Mr. Keough may be contacted at keought@whiteandwilliams.com
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The ABCs of PFAS: What You Need to Know About Liabilities for the “Forever Chemical”
February 22, 2021 —
Robert F. Walsh, Gregory S. Capps & R. Victoria Fuller - Complex Insurance Coverage ReporterThis article is based on a presentation the authors made at White and Williams LLP’s Virtual Coverage College® on October 22, 2020. Every year, hundreds of insurance professionals come to Philadelphia—this year via our online platform—to participate in a full day of lectures and interactive presentations by White and Williams lawyers and guest panelists about the latest issues and challenges involved in claim handling and insurance litigation. Visit coveragecollege.com for more information and stay tuned for Coverage College® 2021.
Perfluoroalkyl and polyfluoroalkyl substances, commonly referred to as PFAS or PFOS, have been a key ingredient in numerous industrial and consumer products for decades. These man-made chemicals are prevalent and are also known for their longevity in the environment. More recently, PFAS have been the focus of thousands of lawsuits alleging personal injury and property damage. Some insurers have already questioned whether PFAS could rival asbestos in scope and bottom-line impacts. It is a legacy that confronts manufacturers and other defendants and insurers today.
This article provides a primer on PFAS, including the current regulatory framework and litigation landscape. We also identify some key emerging coverage issues insurers should be aware of when dealing with PFAS claims under liability and first-party property policies.
Reprinted courtesy of
Robert F. Walsh, White and Williams LLP and
Gregory S. Capps, White and Williams LLP
Mr. Walsh may be contacted at walshr@whiteandwilliams.com
Mr. Capps may be contacted at cappsg@whiteandwilliams.com
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What a Difference a Day Makes: Mississippi’s Discovery Rule
November 16, 2023 —
William L. Doerler - The Subrogation StrategistThe discovery rule applies to latent injuries, such that the statute of limitations does not begin to run until the plaintiff knows of or should have known of the injury. In Western World Ins. Group v. KC Welding, LLC, No. 2022-CA-00527-SCT, 2023 Miss. LEXIS 278 (KC Welding), a majority of the justices on the Supreme Court of Mississippi (Supreme Court) affirmed the trial court’s ruling that Western World Insurance Group (Insurer) filed its lawsuit one day late. Thus, the statute of limitations barred Insurer’s lawsuit.
In KC Welding, on July 12, 2018, KC Welding, LLC (KC Welding) sent an employee to Sunbelt Shavings, LLC (Sunbelt) to repair the door of a box containing wood chips. Sunbelt’s employees discovered that KC Welding employees were welding a storage bin that had not been emptied of wood chips and Sunbelt’s employees asked KC Welding’s employees to leave. After that, Sunbelt’s employees attempted to soak the area with water. Later than night, a fire started on Sunbelt’s property, apparently as the result of smoldering wood shavings, a fire that was extinguished on July 13, 2018.
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William L. Doerler, White and Williams LLPMr. Doerler may be contacted at
doerlerw@whiteandwilliams.com
Government’s Termination of Contractor for Default for Failure-To-Make Progress
July 10, 2023 —
David Adelstein - Florida Construction Legal UpdatesWhenever you elect to terminate the other party for cause or for default, you need to JUSTIFY the basis of the cause or default. The reason being is that a termination for default or cause is the harshest contractual remedy. This is why the other party will typically either (i) convert the termination for default into one for convenience, or (ii) if there is no termination for convenience provision in the contract, argue the terminating party breached the contract by terminating the contract without rightful justification.
The key is if you are going to terminate a party for cause of default, make sure you have memorialized the persuasive reasons for exercising the termination, and can otherwise reasonably support the justification. Do not, and I repeat, do not haphazardly exercise a termination for default and think you do not have to justify the basis for the termination.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Washington Court Limits Lien Rights of Construction Managers
August 17, 2011 —
Douglas Reiser, Builders Council BlogA newly filed, yet unpublished, court opinion opines that a construction manager cannot file a construction lien in Washington state. So, how far reaching is this opinion?
In the case of Blue Diamond Group Inc. v. KB Seattle 1, Inc., et al, a New York construction manager filed a lien against the Westfield Southcenter Mall in Tukwila, Washington. The lien was filed after the owner of a coffee stand failed to pay Blue Diamond for consulting services used in the construction of a kiosk.
Blue Diamond served as the owner’s agent, assisting with managing subcontractors, vendors and other tasks. The manager’s tasks also included paying invoices, managing deliveries, setting schedules and other site managerial tasks. Blue Diamond was not registered as a contractor under Washington’s RCW 18.27.
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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com
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Evolving Climate Patterns and Extreme Weather Demand New Building Methods
May 22, 2023 —
Annette Rubin - Construction ExecutiveCompared to the rest of the world, most buildings in the United States are relatively young. But most residential and commercial properties could use a makeover. Buildings constructed over twenty, fifty and one hundred years ago are, unsurprisingly, not as energy-efficient or as safe as new builds following modern methods—especially when considering the effects of climate change and more frequent extreme weather events on the integrity of that infrastructure.
According to the National Association of Home Builders, over 90% of new homes built in the United States today are wood-framed. These homes are incapable of withstanding a tornado or hurricane, yet they are still being built directly in the path of storms. Even buildings constructed in some of the most earthquake-prone areas of the U.S. may contain design flaws that make them susceptible to damage because they are built using a non-ductile concrete method, which experts say has an inadequate configuration of steel reinforcing bars—making the building vulnerable when shaken. While this building method was banned for new construction, it is not yet required to retrofit older construction to improve safety and structural integrity.
Reprinted courtesy of
Annette Rubin, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Recovering Attorney’s Fees and Treble Damages in Washington DC Condominium Construction Defect Cases
April 03, 2023 —
Nicholas D. Cowie - Cowie Law GroupDC Condominium Association’s Can Recover Attorney’s Fees, Litigation Costs and Treble Damages in Construction Defect Cases Involving Misrepresentation
The District of Columbia Consumer Protection Procedures Act (“CPPA”) § 28-3905(k)(1)(A) creates a private legal claim (a/k/a “cause of action”) which can be asserted by a condominium unit owners association (“condominium association”) on behalf of two or more of its unit owner members who are misled by a condominium developer regarding the condition or quality of a newly constructed or newly converted condominium. Under the DC CPPA, a successful claimant is entitled to recover “treble damages” (i.e., three times the amount of damages it proves), plus recovery of “reasonable attorney’s fees” incurred in prosecuting the construction defect claim and “[a]ny other relief the court determines proper,” including non-attorney fee litigation expenses. DC CPPA § 28-3905(k)(2)(A), (B) and (F).
The CPPA Creates the Legal Claim that Allows a Condominium Associations to Recover Attorney’s Fees, Litigation Costs and Treble Damages
The DC CPPA is a consumer-oriented statute designed to protect Washington DC consumers misled in connection with the purchase of consumer “real estate,” including transactions involving the purchase of a condominium unit and interest in the condominium common elements. Typically, these cases involve the sale of a newly constructed or newly converted condominium, which, contrary to developer representations, contains latent construction defects.
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Nicholas D. Cowie, Cowie Law GroupMr. Cowie may be contacted at
ndc@cowielawgroup.com