How to Prepare for Potential Construction Disputes Resulting From COVID-19
August 24, 2020 —
Helga A. Zauner & Sonia Desai - Construction ExecutiveEvery industry has been affected by the COVID-19 pandemic, and construction is no exception. While construction work was deemed essential in some places, it has been limited only to pandemic-related projects in others.
In the current climate, construction companies face a myriad new challenges, including concerns about health and safety, delays resulting from employee illnesses, supply chain disruptions and increased prices for materials, as well as contract delays or cancellations by concerned contract owners. Contractors must keep their employees safe and institute what could be costly best-practice measures, while facing potential claims from employees if they get sick due to a company’s perceived lack of response to the dangers of the coronavirus.
Stakeholders in the construction process need to prepare for potential disputes and understand their rights and responsibilities. This includes understanding applicable clauses in construction contracts and subcontractor agreements as well as business interruption clauses and other provisions in insurance contracts. Stakeholders may need to seek professional counsel to help them understand their rights and responsibilities in potential disputes.
Reprinted courtesy of
Helga A. Zauner & Sonia Desai, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Ms. Zauner may be contacted at helga.zauner@weaver.com
Ms. Desai may be contacted at sonia.desai@weaver.com
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Congratulations to Woodland Hills Partner Patrick Au and Senior Associate Ava Vahdat on Their Successful Motion for Summary Judgment!
February 14, 2023 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPCongratulations to Woodland Hills Partner Patrick Au and Senior Associate Ava Vahdat on their successful Motion for Summary Judgment in Los Angeles Superior Court!
BWB&O’s client was a concrete contractor hired by a government entity for a limited sidewalk repair project many years ago. The Plaintiff, who was confined to a wheelchair, filed suit against BWB&O’s client alleging Negligence and Premises Liability after an alleged fall injury on a public sidewalk. Plaintiff’s primary alleged theory of liability against BWB&O’s client was that it either worked on or was supposed to work on that subject sidewalk and in doing so, or failure to do so, caused Plaintiff’s fall and subsequent alleged injuries/damages. Plaintiff claimed in excess of $1 million in damages.
After extensive discovery, Mr. Au and Ms. Vahdat gathered enough evidence to prove that BWB&O’s client neither worked on the subject area nor was required to do so. Accordingly, they prepared a successful Motion for Summary Judgment on the basis that no duty was owed to Plaintiff thereby refuting the negligence cause of action. The dispositive motion also proved that the subject sidewalk was not owned, controlled, or maintained by BWB&O’s client thereby negating the premises liability cause of action.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Brookfield Wins Disputed Bid to Manage Manhattan Marina
January 28, 2015 —
Martin Z Braun – Bloomberg(Bloomberg) -- Brookfield Property Partners won a bid to run a marina in New York’s Battery Park City neighborhood over the objections of residents backing a local businessman who operated the facility and a popular sailing club and school.
The state’s Battery Park City Authority voted Thursday to approve a 10-year agreement with Brookfield, which owns an adjacent 8 million-square-foot office and retail complex. Brookfield is bringing in billionaire real estate investor Andrew Farkas’s Island Global Yachting to manage the North Cove Marina.
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Martin Z Braun, BloombergMr. Braun may be contacted at
mbraun6@bloomberg.net
Modernist Houses Galore! [visual candy for architects]
February 25, 2014 —
Melissa Dewey Brumback – Construction Law in North CarolinaDo you like modern architecture? Is Frank Lloyd Wright someone you wish you could have met?
If so, then you’ll want to check out the new “Masters Gallery” of the North Carolina Modernist Houses (NCMH) group. With changes and additions announced this week, it’s Gallery is America’s largest open digital archive of Modernist houses, as well as the internationally known Modernist architects who designed them.
Currently, the Gallery showcases over 30 architects with extensive house histories and over 10,000 photos. The Gallery is extensive and searchable and includes, among many other notables, Frank Gehry and, of course, Frank Lloyd Wright.
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Melissa Dewey Brumback, Construction Law in North CarolinaMs. Brumback can be contacted at
mbrumback@rl-law.com
Northern District of Mississippi Finds That Non-Work Property Damages Are Not Subject to AIA’s Waiver of Subrogation Clause
July 11, 2018 —
Shannon M. Warren - The Subrogation StrategistIn recent months, the Northern District of Mississippi has grappled with how to interpret waivers of subrogation in American Institute of Architects (AIA) construction industry contracts and, specifically, how they apply to work versus non-work property. The distinction between work and non-work property has been commonly litigated and remains a hotly debated topic when handling subrogation claims involving construction defects.
In Liberty Mutual Fire Ins. Co. v. Fowlkes Plumbing, 2018 U.S. Dist. LEXIS 23515 (February 12, 2018), a fire consumed the entire insured risk when one of the defendants was performing window restoration services. Subsequently, the insured’s subrogated insurer filed suit against several defendants involved in the construction project at issue. In response to the defendants’ motion for summary judgment, the District Court for the Northern District of Mississippi considered whether the waiver of subrogation clause in AIA contract form A201-2007 precluded the subrogated insurer from recovering damages from the defendants. The court held that the waiver of subrogation provision contained in AIA document A201-2007 barred the insurer from recovering for damages to the work itself, but did not apply to non-work property.
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Shannon M. Warren, White and Williams LLPMs. Warren may be contacted at
warrens@whiteandwilliams.com
The Importance of Providing Notice to a Surety
October 21, 2015 —
Craig Martin – Construction Contractor AdvisorA recent case out of Missouri emphasizes the importance of providing notice to a surety when a bonded subcontractor is in default. When the question of whether a surety will be obligated under the bond is in the balance, notice is crucial.
In CMS v. Safeco Insurance Company, Safeco provided a performance bond to a subcontractor for the benefit of CMS. The bond specifically provided:
“PRINCIPAL DEFAULT. Whenever the Principal [Subcontractor] shall be, and is declared by the Obligee [CMS] to be in default under the Subcontract, with the Obligee having performed its obligations in the Subcontract, the Surety [Safeco] may promptly remedy the default, or shall promptly:
4.1 COMPLETE SUBCONTRACT. . . .
4.2 OBTAIN NEW CONTRACTORS. . . .
4.3 PAY OBLIGEE. . . .
4.4 DENY LIABILITY. . .”
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
IRMI Expert Commentary: Managing Insurance Coverage from Multiple Insurers
May 11, 2020 —
Gregory D. Podolak, Philip B. Wilusz & Ashley McWilliams - Saxe Doernberger & VitaWhat do you do when less is more? In many loss scenarios, triggering coverage under multiple policies can be a critical and effective strategy. However, doing so has the potential to complicate the insurance recovery proceedings immensely, and possibly even undermine those overall goals. The relation of "other insurance" clauses, allocation schemes, and the practical impacts of interacting with multiple insurers can all leave the insured with some difficult questions.
We present here several scenarios that illustrate how these concerns can arise and how they should be addressed to avoid running into what The Notorious B.I.G.—had he been a coverage lawyer—would have called "The More Coverage We Come Across, the More Problems We See."
The "Other Insurance" Issue
This first scenario is where a single-year loss implicates multiple lines of coverage. Consider the following: a general contractor (GC) faces a property damage liability claim from an owner. As a prudent insured, the GC notifies its customary first line of defense, its commercial general liability (CGL) insurer, to provide a defense. As knowledge of the claim evolves, it appears an element of pollution may be involved. The GC also places its pollution insurer on notice. Later, it's determined that the GC may have a professional liability exposure, so it tenders a claim to its professional liability insurer. Now assume that each insurer accepts coverage.
Reprinted courtesy of Saxe Doernberger & Vita attorneys
Gregory D. Podolak,
Philip B. Wilusz and
Ashley McWilliams
Mr. Podolak may be contacted at gdp@sdvlaw.com
Mr. Wilusz may be contacted at pbw@sdvlaw.com
Ms. McWilliams may be contacted at amw@sdvlaw.com
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Colorado Construction-Defects Reform Law Attempt Expected in 2015
January 14, 2015 —
Beverley BevenFlorez-CDJ STAFFAccording to the Denver Post, another attempt to change Colorado’s construction defect laws to spur condo development is likely this term. Reform supporters are encouraged by the city of Lakewood’s ordinance, Denver Post reported: “"A patchwork around the state on this issue is not the way to go," Rep. Brian DelGrosso, R-Loveland, said. "Hopefully, the Lakewood measure will spur the conversation this year."
Lakewood’s “measure gives builders a ‘right to repair’ faulty work before facing legal action and requires that a majority of home owners approve legal action before it is taken.”
However, “Nancy Stockton, president of the homeowners association at the Vallagio at Inverness in Arapahoe County, said following Lakewood's example statewide would only make it that much harder to hold builders accountable for the quality of their work.”
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