Boston Team Obtains Complete Defense Verdict for Engineering Firm in Professional Liability Matter
June 08, 2020 —
Kenneth Walton & Oliver Vega - Lewis BrisboisBoston, Mass. (June 5, 2020) - Boston Partner Kenneth B. Walton and Associate Oliver J. Vega recently obtained a complete defense verdict after a 10-day bench trial in the U.S District Court for the District of South Carolina. The plaintiff in this matter, who is the owner of a newly acquired food processing facility, alleged breach of contract and breach of fiduciary duty claims against our client, a Massachusetts engineering firm, arising out of allegedly defective design and construction management services provided during the renovation of and addition to said facility.
Reprinted courtesy of
Kenneth Walton, Lewis Brisbois and
Oliver Vega, Lewis Brisbois
Mr. Walton may be contacted at Ken.Walton@lewisbrisbois.com
Mr. Vega may be contacted at Oliver.Vega@lewisbrisbois.com
Read the court decisionRead the full story...Reprinted courtesy of
If You Don’t Like the PPP Now, Wait a Few Minutes…Major Changes to PPP Loan Program as Congress Passes Payroll Protection Program Flexibility Act
July 27, 2020 —
Ryan J. Udell & Adam J. Chelminiak - White and Williams LLPOn June 5, 2020, President Trump signed into law the Payroll Protection Program Flexibility Act of 2020 (the Flexibility Act). The Flexibility Act provides much-needed flexibility for the Paycheck Protection Program (PPP) and its millions of business participants.
The PPP offers loans to small businesses that have been adversely impacted by the COVID-19 pandemic and the measures taken by various governmental authorities to stem the spread of the virus so that they could keep their employees on the payroll during an eight-week period after receiving the funds. The PPP was particularly alluring to borrowers because the loans could be forgiven. But as the duration of lockdown orders and the accompanying economic aftershocks have extended longer than initially anticipated, particularly in those sectors that depend on in-person business such as restaurants, hospitality and other “main street” retail establishments, many recipients of PPP loans have found it challenging to use the PPP funds for payroll and other authorized purposes within the eight-week period after they had received the PPP funds, as is necessary to preserve eligibility for forgiveness. The Flexibility Act makes several key changes to the PPP program in order to allow borrowers who need a longer re-opening runway to do so without jeopardizing their ability to qualify for loan forgiveness.
This alert outlines the key changes to the PPP made by the Flexibility Act.
Reprinted courtesy of
Ryan J. Udell, White and Williams LLP and
Adam J. Chelminiak, White and Williams LLP
Mr. Udell may be contacted at udellr@whiteandwilliams.com
Mr. Chelminiak may be contacted at chelminiaka@whiteandwilliams.com;
Read the court decisionRead the full story...Reprinted courtesy of
Maritime Law: An Albatross for Contractors Navigating Marine Construction
January 03, 2022 —
Cindy Matherne Muller - ConsensusDocs“Ah! Well a-day! When evil looks, Had I from old and young! Instead of the cross, the Albatross, About my neck was hung.” 1
Contractors and subcontractors performing construction over water may find themselves encountering maritime law for the first time. Like the ancient mariner’s encounter with an albatross in The Rime of the Ancient Mariner, a contractor may be able to use maritime law to safely guide it through rough seas, or, if not careful, a contractor may find itself with maritime law hung, like an albatross, around its neck. This article gives an overview of key maritime law issues to demystify this historical body of law and answers some basic questions.
What is admiralty jurisdiction?
The Constitution gives federal courts jurisdiction over all maritime cases. This jurisdiction gives litigants the opportunity to remove state court cases to federal court and to avoid a jury trial. The purpose of admiralty jurisdiction in federal court is to protect and ensure the uniform treatment of nationwide maritime commerce and extends to maritime contracts and accidents. Any contract which relates to the navigation, business, or commerce of the sea is a maritime contract. Even contracts with mixed obligations on land and sea can fall within admiralty jurisdiction – such as construction contracts with a waterborne component. Admiralty jurisdiction also extends to maritime accidents – those that occur on navigable waters and have a maritime nexus.
Read the court decisionRead the full story...Reprinted courtesy of
Cindy Matherne Muller, Jones Walker LLPMs. Muller may be contacted at
cmuller@joneswalker.com
Wildfire Insurance Coverage Series, Part 5: Valuation of Loss, Sublimits, and Amount of Potential Recovery
July 25, 2022 —
Scott P. DeVries & Yosef Itkin - Hunton Insurance Recovery BlogInsurance policies provide different levels of insurance coverage and even if the amount purchased was adequate at one time, developments over time (e.g., inflation, upgrades, regulatory changes and surge pricing) may leave the policyholder underinsured. In this post in the Blog’s Wildfire Insurance Coverage Series, we emphasize the need for policyholders to take a close look at the policy’s terms to select the right type and amount of coverage for a potential loss.
Various types of coverage are available and there has been extensive litigation concerning the amount of coverage provided by one policy form or another. For example, the policyholder may have purchased market value coverage (the value of the house at the time of the wildfire), replacement coverage subject to a policy limits cap, guaranteed replacement cost coverage, or some variation on the theme. While the property may be properly valued when the insurance is purchased, it may become undervalued at the time of loss due to factors like inflation or home improvements that were not disclosed to the insurer. And, however generous the limits may be when the policy is procured, as one court discussed, it may be insufficient when “surge pricing” occurs after a wildfire.
[1]
Reprinted courtesy of
Scott P. DeVries, Hunton Andrews Kurth and
Yosef Itkin, Hunton Andrews Kurth
Mr. DeVries may be contacted at sdevries@HuntonAK.com
Mr. Itkin may be contacted at yitkin@HuntonAK.com
Read the court decisionRead the full story...Reprinted courtesy of
A Survey of Trends and Perspectives in Construction Defect Decisions
November 27, 2013 —
CDJ STAFFThomas F. Segella, Ellen H. Greiper, and Matthew S. Lerner, partners at the firm Goldberg Segalia, together with Suzin L. Raso, an associate of the firm, have prepared a wide-ranging survey of cases, in their commentary, “Emerging Trends and Changing Perspectives on Construction Defect Claims.
The authors examine 11 coverage cases, representing decisions from eight states, and 15 cases of litigation, here covering 11 states. In each case, they give a one-sentence summary, a further discussion of the case, and they end with a practice note.
They start with Alabama, noting that the court found that “faulty workmanship is not an occurrence,” looking at the recent case of Owners Insurance Co. v. Jim Carr Homebuilders, LLC. Here they note that under Alabama law, “there was no damage to personal property or property of others; therefore, there was no ‘occurrence.’” They also note that “the policy involved did not contain a ‘subcontractor exception.’”
In Georgia, they noted, the courts concluded that “damage to insured’s completed work is an ‘occurrence.’” Here they cite a recent decision of the Georgia Supreme Court, noting that the court looked at cases from Connecticut, South Carolina, Illinois, Texas, as well as the Fourth and Tenth Circuits.
Under litigation, they look at such aspects of construction defect litigation such as the application of the economic loss doctrine in Kansas and Florida, and how the courts view arbitration agreements in states including New Jersey, Louisiana, and Colorado.
Read the court decisionRead the full story...Reprinted courtesy of
Supply Chain Delay Recommendations
August 07, 2022 —
Denise Motta - Gordon & Rees Construction Law BlogThis Bulletin provides guidance to contractors, subcontractors, suppliers, and others to ensure compliance with contractual change order requirements in the event work on a construction project is impacted by supply chain delays.
Contract Protection Tips:
The construction industry is being impacted substantially by inability to obtain necessary construction products due to supply chain issues. Most construction contracts do not accommodate time extensions due to supply chain impacts. To address this gap in contract terms, we recommend including language such as: “lack of or failure of or other inability to obtain necessary transportation, fuel, power, materials, machinery, equipment or facilities, delays caused by other contractors, subcontractors or their subcontractors of any tier, or any materialmen or suppliers” as part of the defined force majeure event under the contract.
This provision can be included in the Change Order section of the contract as well by including a provision such as: “If the Work is delayed by the failure of or other inability to obtain necessary transportation, fuel, power, materials, machinery, equipment or facilities, delays caused by other contractors, subcontractors or their subcontractors of any tier, or any materialmen or suppliers, contractor shall be entitled to a change order for its costs and time associated with the delay.”
Read the court decisionRead the full story...Reprinted courtesy of
Denise Motta, Gordon Rees Scully Mansukhani, LLPMs. Motta may be contacted at
dmotta@grsm.com
Be a Good Neighbor: Techniques to Mitigate the Risk of Claims from Adjacent Landowners
December 07, 2020 —
Joshua Levy, Josh Neudorfer & Madeleine Bailey - Construction ExecutiveIn May 2020, a real estate developer performing excavation work in New York was sued by a neighboring property owner for property damage. A court overturned an injunction preventing the developer from continuing excavation work after reviewing a preconstruction assessment that showed the damage to the neighboring property was preexisting—not caused by the excavation (see Feldman v. 3588 Nostrand Ave. LLC as an example)
A preconstruction assessment is one of the most important tools in the arsenal of a developer protecting itself from neighbors bringing claims for property damage. Part two of this series will review the benefits of risk mitigation tools recommended for developers such as postconstruction assessments and monitoring during construction.
Preconstruction Assessment Overview
A preconstruction assessment is a review of a property adjacent to a site where demolition and/or construction activities are to take place. The goal of the assessment is to establish baseline conditions by conducting an inspection of buildings and infrastructure, including identification of existing damage to improvements, so that causation of any alleged damages can be more easily determined.
Reprinted courtesy of
Joshua Levy, Josh Neudorfer & Madeleine Bailey, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Levy may be contacted at joshua.levy@huschblackwell.com
Mr. Neudorfer may be contacted at jneudorfer@thesigmagroup.com
Read the court decisionRead the full story...Reprinted courtesy of
Allen, TX Board of Trustees Expected to Approve Stadium Repair Plans
July 30, 2014 —
Beverley BevenFlorez-CDJ STAFFConstruction plans to fix the $60 million high school football stadium in Allen, Texas, which has been closed due to cracks discovered in the structure, is expected to be approved by the Allen School Board of Trustees, reported KHOU.
The construction company and architectural firm both stated “they will cover the costs to fix everything -- which could run between $600,000 and $1 million.”
The school board plans on using “$2 million in bonds for the construction, renovation, acquisition and equipment of school facilities,” and will then seek to recover the amount of repairs “from the parties responsible for defects and/or construction problems and failures.”
Read the court decisionRead the full story...Reprinted courtesy of