Domtar Update
June 11, 2014 —
Robert M. Caplan – White and Williams LLPOn May 29, 2014, the Pennsylvania Supreme Court granted allocatur—i.e., the permission to appeal—in the controversial subrogation case, Liberty Mutual Ins. Co. v. Domtar Paper Co., 77 A.3d 1282 (Pa. Super. Ct. 2013). In its order granting the relief to Liberty Mutual, a workers’ compensation insurer, the Supreme Court set forth the narrow issue to be decided on appeal: “Does Section 319 of the Pennsylvania Workers’ Compensation Act, 77 P.S. § 671, allow the employer/insurer to step into the shoes of the insured employee to subrogate against the tortfeasor?”
In Domtar, Liberty Mutual was caused to incur approximately $35,000 in compensation benefits which it paid on behalf of George Lawrence, an employee of Liberty Mutual’s insured, for injuries he sustained in a work-related accident. Mr. Lawrence chose not to file an independent personal injury lawsuit. As a result, in order to recover its lien interests, Liberty Mutual sued the third parties responsible for causing Mr. Lawrence’s work-related injuries directly, having become subrogated to the rights of Mr. Lawrence by virtue of Liberty Mutual’s workers’ compensation expenditure on his behalf.
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Robert M. Caplan, White and Williams LLPMr. Caplan may be contacted at
caplanr@whiteandwilliams.com
Resolving Condominium Construction Defect Warranty Claims in Maryland
September 04, 2018 —
Nicholas D. Cowie - Maryland Condo Construction Defect BlogA Guide for Maryland Condominium Associations
Newly constructed and newly converted condominiums in Maryland often contain concealed or “latent” construction defects. Left undetected and unrepaired, latent defects stemming from the original construction of a condominium can cause extensive damage over time, requiring associations to assess their members for unanticipated repair costs that could have been avoided by making timely developer warranty claims.
This article provides a general overview of how Maryland condominium associations transitioning from developer control can proactively identify and resolve construction defect claims with condominium developers and builders before warranty and other legal rights expire. This proactive approach typically results in an amicable resolution without the need for litigation.
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Nicholas D. Cowie, Cowie & MottMr. Cowie may be contacted at
ndc@cowiemott.com
“You Can’t Climb a Tile Wall”
February 03, 2025 —
Daniel Lund III - Lexology… or, in certain circumstances, walk on a tile floor.
A Louisiana appellate court reversed a trial court’s summary judgment in favor of a project architect in a case involving liability for a slip-and-fall incident at a pool area and a casino in Lake Charles, Louisiana. The plaintiff alleged that travertine tile on which she slipped was unsuitable for wet areas, thus failing to meet the necessary safety standards.
The architect – the professional of record for the original design of the casino – attempted to deflect responsibility by arguing that a landscape architect which specified the travertine was an independent contractor and thus solely liable for any issues related to the tile. Ultimately, however, the court held that the absence of a contract between the architect and landscape architect left unresolved questions about the nature of their relationship and the degree of control the former exercised over the work of the latter.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
When is Construction Put to Its “Intended Use”?
July 31, 2013 —
Brady Iandiorio, Higgins, Hopkins, McLain & Roswell, LLCDefining words and phrases in the law can be a tricky proposition. In everyday life one would presume to know what the phrase “intended use” would mean, but when it comes to litigation, oftentimes the definitions become much more nuanced.
On March 12, 2013, in the Bituminous Cas. Corp. v. Hartford Cas. Ins. Co. v. Canal Ins. Co., WL 950800 (D. Colo. 2013) case, Senior District Court Judge Wiley Y. Daniel denied Third-Party Defendant Canal Insurance Company’s (“Canal”) motion to dismiss Third-Party Plaintiff Hartford Casualty Insurance Company’s (“Hartford”) third-party complaint. The case arose out of a liability insurance coverage dispute related to an underlying construction defect lawsuit. In the construction defect suit, a plaintiff homeowner’s association brought a suit against a developer and a general contractor (“GC”) among others. While the underlying action was settled, a dispute remained between Bituminous Casualty Corporation, which insured the GC, and Hartford, which insured the developer.
Hartford asserted third-party claims against Canal seeking a declaration of Canal’s obligations and contribution in the event Hartford owed any defense or indemnity obligations to the GC. Hartford’s claims are based on the premise that Canal owed a duty to defend and/or indemnify the GC in the underlying action.
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Brady IandiorioBrady Iandiorio can be contacted at
Iandiorio@hhmrlaw.com
The A, B and C’s of Contracting and Self-Performing Work Under California’s Contractor’s License Law
July 19, 2017 —
Garret Murai - California Construction Law BlogThe California Contractors State License Board issues licenses in three general classifications:
- Class A – General Engineering Contractors;
- Class B – General Building Contractors; and
- Class C – Specialty Contractors of which there are currently 42 different Class C specialty contractors license types.
Each of these license classifications has separate contracting rules, and rules regarding when work can be self-performed, which for many can be confusing.
Minor Work Exception
One important (albeit “minor”) exception is that no contractor’s license is required no matter what type of work is being performed if the project has a value of less than $500. Known as the “minor work exception,” the exception is a project-based, not work-based, exception. Thus, for example, if a project owner is remodeling their kitchen at a cost of $6,000 and the cost of doing the flooring is only $300, the person doing the flooring would need to have a contractor’s license in the appropriate classification since the aggregate cost of the work is $500 or more.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Environmental and Regulatory Law Update: New Federal and State Rulings
April 19, 2022 —
Anthony B. Cavender - Gravel2GavelThe first quarter of 2022 has yielded a number of decisions, reversals and agency adjustments worth note.
FEDERAL CIRCUIT
U.S. Court of Appeals for the D.C. Circuit – Food & Water Watch v. Federal Energy Regulatory Commission
On March 11, 2022, the court decided the FERC case. On December 19, 2019, the Commission issued a Certificate to Tennessee Gas Pipeline and determined that a “modest expansion” and upgrade of the existing 11,000-mile natural gas pipeline would have no significant environmental impact. However, one of the Commissioners filed a partial dissent, arguing that the Commission’s treatment of the climate change impacts was inadequate. A petition for review was filed, and now the court has decided that the Commission erred in not accounting for the indirect effects of the expansion, namely the downstream emissions of greenhouse gas generated by the pipeline’s delivery of the gas to its customers. Consequently, NEPA’s requirement that a rigorous environmental assessment be made before the authorization was granted was violated. However, the court decided against vacating the Commission’s orders, which would have had a “disruptive effect” on the project which is, or soon will be, operational.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Demanding a Reduction in Retainage
April 01, 2015 —
Craig Martin – Construction Contractor AdvisorOne of the attendees of the Goldleaf Surety presentation asked a great question about reducing retention under the Nebraska Construction Prompt Pay Act, Nebraska Revised Statutes, 45-1201-45-1211. He wanted to know whether there was any way to reduce and recover retainage during the project. The short answer is retainage should be reduced half way through the project, but there is no right to recover retainge for work performed during the first half of the project.
Retainage in Nebraska
Under section 45-1204 of the Prompt Pay Act, a contractor may withhold up to 10% retainage. A contract that allows for greater retainage is not enforceable.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Bankrupt Canada Contractor Execs Ordered to Repay $26 Million
April 25, 2022 —
Scott Van Voorhis - Engineering News-RecordJohn Aquino, the former president of a major and now bankrupt Ontario construction contractor, plans to appeal a provincial court ruling that puts him and his associates on the hook for $26.2 million drained from the company, according to his attorney.
Reprinted courtesy of
Scott Van Voorhis, Engineering News-Record
ENR may be contacted at enr@enr.com
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