Suppliers of Inherently Dangerous Raw Materials Remain Excluded from the Protections of the Component Parts Doctrine
December 02, 2015 —
Leah B. Mason & Michael J. Worth – Haight Brown & Bonesteel, LLPIn Brady v. Calsol, Inc. 2015 No. B262028, the California Court of Appeal, Second District, reversed summary judgment for a raw materials supplier where there was a triable issue of fact as to whether the benzene levels contained in the supplier’s mineral spirits could have caused plaintiffs’ leukemia.
Plaintiffs were mechanics Ernest Brady and David Gibbs, who used Safety-Kleen solvent to degrease automotive parts. Brady and Gibbs were diagnosed with leukemia allegedly caused by exposure to Safety-Kleen solvent during the course of their employment. In 2008, Plaintiffs sued Calsol, Inc., a distributor of mineral spirits for the ultimate manufacturer, Safety-Kleen Systems, Inc. Plaintiffs asserted negligence and strict products liability claims. Specifically, plaintiffs alleged that benzene, a carcinogen found in mineral spirits, caused their leukemia. Benzene is only carcinogenic to humans at certain levels. The parties dispute the levels of benzene found in the mineral spirits supplied to Safety-Kleen. Calsol contended the benzene levels were present only in low concentrations. Plaintiffs alleged the benzene levels were capable of causing injury.
Reprinted courtesy of
Leah B. Mason, Haight Brown & Bonesteel LLP and
Michael J. Worth, Haight Brown & Bonesteel LLP
Ms. Mason may be contacted at lmason@hbblaw.com
Mr. Worth may be contacted at mworth@hbblaw.com
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Indemnity: What You Don’t Know Can Hurt You!
September 19, 2022 —
Caitlin Kicklighter & Bill Shaughnessy - ConsensusDocsRisk allocation between the parties is a critical component of any construction contract. Indemnity obligations can be some of the important risk-shifting provisions of any design or construction contract. Indemnity provisions typically require one party, the Indemnitor, to agree to “hold harmless,” and/or reimburse another party, the indemnitee, from claims and liability arising out of the party’s work. Considering the financial consequences that an indemnity provision can have on a construction project, it is critical that all parties to a construction contract know the legal implications of the contract indemnity provisions and understand any limitations in enforcing the indemnity provisions depending on the controlling jurisdiction. While most indemnity clauses and obligations are enforceable, many states have enacted anti-indemnity statutes prohibiting or restricting specific indemnification provisions. These anti-indemnity statutes afford protection to contractors and subcontractors not generally in a position to protect themselves from overly extensive indemnity obligations.
This article highlights several examples of indemnity provisions typically seen in construction contracts, the measures are taken by a growing number of states to protect parties with less bargaining power in the form of anti-indemnity statutes, and offers practical considerations when negotiating or drafting indemnity provisions.
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Reprinted courtesy of
Caitlin Kicklighter, Emory Law Student (2024 Graduate), (ConsensusDocs) and
Bill Shaughnessy, Jones Walker LLP (ConsensusDocs)
Mr. Shaughnessy may be contacted at bshaughnessy@joneswalker.com
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Arizona Is Smart About Water. It Should Stay That Way.
February 19, 2024 —
Mark Gongloff - BloombergYou really have to hand it to Arizona: Even as its population has doubled and it has suffered through a decades long megadrought, the state uses less water today than it did 40 years ago.
This success story is the result of what may be the smartest, most conservative approach to water in the country. But homebuilders want to scrap some key elements of this careful system. It’s a bad idea, especially as the climate changes, making the state’s water supply less reliable. And it’s a cautionary tale for the rest of us as we try to adapt to a warming world.
In 1980, alarmed at watching its precious groundwater disappear amid rapid development, Arizona passed the Groundwater Management Act. The law established the Arizona Department of Water Resources, set up water-management zones around cities and required new housing developments to prove they had access to 100 years’ worth of clean water, among other things.
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Mark Gongloff, Bloomberg
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
New Jersey Judge Declared Arbitrator had no Duty to Disclose Past Contact with Lawyer
October 22, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to the New Jersey Law Journal, in a recent ruling, a federal judge in Newark “ruled that an arbitration award should not be vacated based on the arbitrator’s failure to disclose his professional contacts with defense counsel during his prior career as a federal judge.”
The plaintiff had sought to vacate an award “because he failed to disclose interactions he had with Dennis Drasco, the lawyer for the defendant, while serving on the bench. But Brown was not required to disclose his contacts with Drasco because they would not cause a reasonable person to question Brown’s impartiality, U.S. District Judge William Walls ruled Oct. 21,” reported the New Jersey Law Journal.
The plaintiff’s assertions “suggest nothing more than that Judge Brown and Mr. Drasco were familiar with one another in their professional capacities,” Walls stated, as quoted by the New Jersey Law Journal.
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There’s the 5 Second Rule, But Have You Heard of the 5 Year Rule?
April 23, 2024 —
Garret Murai - California Construction Law BlogThey’re called deadlines for a reason. Usually, because something really bad could happen if you fail to meet the deadline.
For those in the construction industry, you probably aware of the “deadline” to bring a claim for latent defects (10 years from substantial completion); the deadline to file suit to foreclose on a mechanics lien (90 days from the date of recording the mechanics lien), and the deadline for serving a preliminary notice (generally, 20 days from the date labor and/or materials are first furnished).
Well, here’s another deadline: Under Code of Civil Procedure section 585.310, you have 5 years after a complaint is filed to bring a case to trial, absent the court granting relief. I could leave it at that, but in the next case, Oswald v. Landmark Builders, Inc., 97 Cal.App.5th 240 (2023), was too interesting to pass up.
The Oswald Case
On June 28, 2016, homeowners Jack Oswald and Anne Seley sued their general contractor and its subcontractors alleging construction defects at their home. Answers and cross-complaints were filed and on February 2017 the trial court determined the case to be complex and appointed a discovery master. A discovery master, for those who may be unfamiliar, is usually a retired judge or third-party lawyer appointed by a court to oversee discovery in a case such as written discovery, depositions, site inspections, etc.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
The Overlooked Nevada Rule In an Arena Project Lawsuit
August 04, 2016 —
Scott Van Voorhis – Engineering News-RecordWhen crunching the numbers on the construction wrap-up program for the T-Mobile Arena project outside Las Vegas, insurance broker Aon Risk Services South allegedly failed to take into account a Nevada workers’ compensation rule, one of many intricate features of the state’s workers’ compensation regulations. Others had apparently missed this aspect of the rule, too. “Many business owners and executives are unaware of this regulation and … are paying more premium to their workers’ compensation carriers than they should be,” warned Bradley Rowe, a commercial insurance broker in Las Vegas, in a blog post in 2014. Two years later, the prime contractor joint venture on the completed $230-million arena is battling in court with Aon, charging the broker with professional negligence and breach of contract, according to court documents filed in U.S. District Court in Nevada.
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Scott Van Voorhis, Engineering News-RecordYou may send questions or comments to
enr.com@bnpmedia.com
Don MacGregor of Bert L. Howe & Associates Awarded Silver Star Award at WCC Construction Defect Seminar
May 24, 2018 —
CDJ STAFFThe staff of the Construction Defect Journal would like to extend their congratulations to Don MacGregor of Bert L. Howe & Associates, Inc., in recognition of his receipt of the Silver Star Award as “Best Expert” at the 25th Anniversary of the West Coast Casualty Construction Defect Seminar, hosted at the Disneyland Resort Hotel, in Anaheim CA.
Recipients of the Silver Star Awards were nominated and voted on by their peers, colleagues, and the Construction Defect Community at large, as represented by the 25,000 members who received emails on the subject.
Along with “Best Expert,” recognition was also given to the best judge, mediator, plaintiff attorney, developer attorney, subcontractor attorney, coverage counsel, and insurance claims professional. Awards were handed out last Thursday during a special ceremony at this year’s Seminar.
To Don, and all the worthy awardees, congratulations again!
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