Fewer NYC Construction Deaths as Safety Law Awaits Governor's Signature
July 25, 2022 —
Richard Korman - Engineering News-RecordThe hoped-for progress in New York City construction safety is coming too late for laborer Jose Fortina Armenta Hernandez. At 8:37 a.m. on May 27, 2021, while jackhammering a roof section on a Brooklyn building, the section on which Armenta stood gave way and he fell 60 ft. When last year his family sent his body from New York City to Mexico to be buried, they used a GoFundMe page to raise money for the laborer's funeral.
Reprinted courtesy of
Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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Dust Infiltration Due to Construction Defect Excluded from Policy
September 09, 2011 —
CDJ STAFFA summary judgment was affirmed in the case of Brown v. Farmers Group, by the California Court of Appeals. The Browns bought a new home in Oakley, California. At the time, they signed disclosure statement “acknowledging that the area around their home experienced gusty winds and would be in development for years to come, which might result in dust and airborne mold.”
The Browns found an unusual amount of dust in their home, which became worse when they ran their heating and air conditioning system. Shelia Brown was later diagnosed with chronic valley fever, which was attributed to airborne mold. The Browns contacted Farmers which investigated the house. Although the adjustor from Farmers said the Browns would be covered, Farmers denied the claim.
After the Browns moved out of the house, an inspector found that the HVAC line in the attic was disconnected, sending dust into the home. The Browns brought action against Mid-Century Insurance, which managed the policy, and Farmers. The identified the HVAC defect, window problems, and valley fever as causes, suing for breach of contact, breach of implied covenant of good faith and fair dealing, and the intentional infliction of emotional distress.
The court rejected all these claims. The policy with Farmers excluded losses due to defective construction. This ruled out the faulty HVAC system and any problems there might have been from the windows. The policy also specifically excluded losses from contamination, fungi, pathogens, and noxious substances. The court further found that the adjustor’s opinion was irrelevant to the question of what the policy actually covered. Finally, the court found no evidence of intentional infliction of emotional stress.
On review, the appeals court upheld the trial court’s conclusions and affirmed the summary judgment.
Read the court’s decision…
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Roof Mounted Solar Panels: Lower Your Risk of Fire
September 25, 2023 —
The Hartford Staff - The Hartford InsightsAs the federal government, individual states, businesses and consumers take steps to address climate change, the use of renewable energy – including roof-mounted solar panels – has steadily increased. Over the past decade, the use of solar energy solutions has grown by 33% annually. This is driven by tax-based incentives for clean energy, combined with installation costs that are down more than 50% from 10 years ago.1
As more companies execute climate-focused goals to limit greenhouse emissions, reduce their carbon-footprint and lower energy costs, the use of solar power for commercial buildings is likely to increase. Currently, it's estimated that only 3.5% of commercial buildings have rooftop solar panels, but 70% are potential targets for solar.2
We know the use of solar power can have positive impacts on the environment and generate long-term energy cost savings. However, there are several considerations and potential risks that commercial property owners and facilities managers should consider prior to investing in solar, says Tracey Greene, underwriting director for Middle and Large Commercial Real Estate at The Hartford.
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The Hartford Staff, The Hartford Insights
Alabama Supreme Court States Faulty Workmanship can be an Occurrence
July 16, 2014 —
Beverley BevenFlorez-CDJ STAFFCarl A. Salisbury of Kilpatrick Townsend & Stockton LLP in his Lexology article, stated that “it is now official and final: Alabama is no longer one of the outlier jurisdictions on the issue of coverage for faulty workmanship.”
In the case Owners v. Jim Carr Homebuilders, in September 2013 the Alabama Supreme Court had “sided with insurers in holding that construction defects can never be accidental and, therefore, can never be covered by Commercial General Liability insurance.” However, in March “the Court withdrew that decision and reversed course,” holding “that faulty workmanship can, in fact, constitute a covered ‘occurrence,’ which CGL policies define as ‘an accident, including continuous or repeated exposure to the same generally harmful conditions.’”
“This is obviously good news for construction contractors that do work in the state of Alabama,” Salisbury stated. “It is also good news for policyholders in general as it continues the strong trend among state high courts that have been finding in favor of coverage in this important area of insurance law.”
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Thank Your Founding Fathers for Mechanic’s Liens
August 04, 2015 —
Craig Martin – Construction Contract AdvisorYep, our founding fathers, Thomas Jefferson and James Madison specifically, Craig Martin, Construction Attorney Lamson Dugan & Murray LLPwere responsible for proposing the first mechanic’s lien laws in the United States. Mechanic’s liens were not a new concept when the first law was passed in the United States; France, Spain and other countries already had them. But, in England, where landownership was limited to the upper classes, the concept of giving a tradesman an interest in the land for his labors was a truly foreign concept.
The Early Years—Pre Mechanic Lien
In the 1700s, there was no right to a mechanic’s lien. The possession of land was never deemed to be changed by its improvement and the laborer or material supplier was held to have acquired no right of lien in the property. The only remedy the laborer or material supplier had was to bring an action against the land owner. If the laborer or material supplier obtained a judgment, he would acquire the lien of a judgment creditor. A Treatise on the law of Mechanics’ Liens on Real and Person Property, 1893.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Quick Note: Subcontractor Payment Bond = Common Law Payment Bond
February 16, 2017 —
David Adelstein – Florida Construction Legal UpdatesWhat is a common law payment bond? A common law payment bond is a bond not required or governed by a statute. For example, if a prime contractor provides the owner a payment bond, that bond will be a statutory payment bond. On the other hand, if a subcontractor provides the general contractor with a payment bond, that bond will be a common law payment bond. Why? Because there is not a statute that specifically governs the requirements of a subcontractor’s payment bond given to a general contractor. The subcontractor’s payment bond is aimed at protecting the general contractor (and the general contractor’s payment bond) in the event the subcontractor fails to pay its own subcontractors and suppliers. The subcontractor’s payment bond will generally identify that claimants, as defined by the bond, are those subcontractors and suppliers the subcontractor has failed to pay. This common law payment bond is not recorded in the public records so sometimes it can be challenging for a claimant (anyone unpaid working under the subcontractor that furnished the bond) to obtain a copy of the bond. With that said, an unpaid claimant should consider pursuing a copy of this bond in certain situations, particularly if it may not have preserved a claim against the general contractor’s statutory payment bond.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Insurers Can Sue One Another for Defense Costs on Equitable Indemnity and Equitable Contribution Basis
March 21, 2022 —
Garret Murai - California Construction Law BlogSince I don’t do insurance defense work, fights between insurers isn’t something I have to deal with. It’s good sport nonetheless. In the next case, Travelers v. Navigators Specialty Insurance Company, Case No. D078852 (October 15, 2021), three of the biggies – Travelers, Navigators and Mt. Hawley – got into it over indemnity.
The Travelers Case
General contractor TF McGukin, Inc. was involved in a construction defect lawsuit with respect to a condominium project. TFM entered into subcontracts with several subcontractors including F&F Steel and Stairway, Inc and Calvac Paving which required the subcontractor to defend and indemnify TFM against any claims arising out of the subcontractor’s work. The subcontracts also required the subcontractors to name TFM as an additional insured.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
COVID-19 Response: Essential Business Operations: a High-Stakes Question Under Proliferating “Stay at Home” Orders
April 27, 2020 —
Karen C. Bennett, Katherine I. Funk & Jane C. Luxton - Lewis BrisboisAn ever-expanding number of states and local government authorities are issuing “shelter in place” or “stay at home” orders that restrict the movement of employees of non-essential businesses. These orders have prompted many businesses to question whether they qualify as “essential,” requiring employees to continue working. With substantial differences among the stay at home orders – and even potential conflicts between state and local directives – it is a matter of extreme urgency for businesses to determine whether they fall within the definition of “essential,” particularly as many of these orders include civil and criminal penalties.
Developments are unfolding very quickly, and clients we are advising are encountering law enforcement visits and threats of criminal prosecution as a consequence of decisions to stay open. As these designations are heavily fact-specific, and being revised, advance preparation and advice of counsel are essential.
Reprinted courtesy of Lewis Brisbois attorneys
Karen C. Bennett,
Katherine I. Funk and
Jane C. Luxton
Ms. Bennett may be contacted at Karen.Bennett@lewisbrisbois.com
Ms. Funk may be contacted at Katherine.Funk@LewisBrisbois.com
Ms. Luxton may be contacted at Jane.Luxton@lewisbrisbois.com
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