2015-2016 California Labor & Employment Laws Affecting Construction Industry
October 28, 2015 —
Steven M. Cvitanovic, David A. Harris, & Kristen Lee Price – Haight Brown & Bonesteel LLPEarlier this month, California Governor Jerry Brown signed dozens of bills that affect employers. Many of these bills have special significance to the construction industry. Here is a brief review:
Assembly Bill 219 – Prevailing Wages for Concrete Delivery on Public Projects
AB 219 continues California’s aggressive expansion of prevailing wages. This bill expands the definition of “public works” for purposes of state prevailing wage law to include the hauling or delivery of ready-mixed concrete for a public works project.
Previously, delivery drivers hired by a material supplier were exempted from the prevailing wage. Before AB 219, labor law made a distinction between “suppliers” and “contractors.” Thus, ready-mixed concrete was held to be a finished product, and treated differently from a product that was assembled on site. The new law eliminates this distinction.
Reprinted courtesy of Haight Brown & Bonesteel attorneys
Steven M. Cvitanovic,
David A. Harris and
Kristen Lee Price
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com
Mr. Harris may be contacted at dharris@hbblaw.com
Ms. Price may be contacted at kprice@hbblaw.com
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Real Estate & Construction News Round-Up (10/27/21)
November 19, 2021 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogCommercial real-estate sales surge in the third quarter, blockchain-integrated real estate is poised to span into new sectors, a major home builder is teaming with a Texas startup to create a community of 100 3-D printed homes, and more.
- In the not-too-distant future, it is predicted blockchain-integrated real estate will be implemented in sectors beyond payments via digital currency, spanning to automated transactions, smart contracts, and more. (Adam Redolfi, Forbes)
- Despite warnings that the COVID-19 pandemic would erode property values, purchases of apartment buildings, life-science labs and industrial properties resulted in commercial sales of more than $193 billion in the quarter, up 19% compared with the same three months in 2019. (Peter Grant, The Wall Street Journal)
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Pillsbury's Construction & Real Estate Law Team
When Employer’s Liability Coverage May Be Limited in New York
June 28, 2021 —
Robert S. Nobel & Craig Rokuson - Traub LiebermanNew York recognizes that coverage under Workers’ Compensation (“WC”) and Employer’s Liability (“EL”) policies is generally unlimited. See Tully Const. Co. v. Illinois Nat. Ins. Co., 131 A.D.3d 598 (2d Dept. 2015); Oneida Ltd. v. Utica Mut. Ins. Co., 263 A.D.2d 825, 694 N.Y.S.2d 221 (3d Dept. 1999). However, there is case holding that EL coverage may be limited in certain instances, such as when the primary EL carrier is listed as scheduled underlying insurance on an excess policy.
In Liberty Mut. Ins. Co. v. Ins. Co. of State of Pennsylvania, 43 A.D.3d 666, 841 N.Y.S.2d 288 (1st Dept. 2007), an employee of General Industrial Service Corporation (“General”), a subcontractor on a construction project, sought to recover under New York’s Labor Law against the project’s owner and construction manager. Those defendants, in turn, brought a third-party action for indemnification against General. The employee’s personal injury claim was ultimately settled for $2.5 million. After the settlement, the excess insurer, Liberty, filed suit against the primary employer’s liability insurers, The Insurance Company of the State of Pennsylvania and American International Group of Companies (collectively, “AIG”), which had refused to participate in the defense or settlement of the underlying personal injury litigation. Although the issue of whether the plaintiff in the underling action had sustained a “grave injury” (necessary to support the common law indemnity claim against General and trigger coverage under the Employer’s Lability policy) had not yet been determined, the court held that “[i]n the event the existence of a grave injury is proven, AIG’s liability will be limited to $1 million.”
Reprinted courtesy of
Robert S. Nobel, Traub Lieberman and
Craig Rokuson, Traub Lieberman
Mr. Nobel may be contacted at rnobel@tlsslaw.com
Mr. Rokuson may be contacted at crokuson@tlsslaw.com
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Georgia House Bill Addresses Construction Statute of Repose
May 04, 2020 —
Jason Gropper - Autry, Hall & Cook, LLPOn March 2, 2020, by a unanimous vote, the House passed HB 968. This Bill seeks to clarify which civil actions are subject to Code Section 9-3-51, which is the eight-year statute of repose for deficiencies in connection with improvements to realty. If passed by the General Assembly, it would explicitly state that the statute of repose will not apply to breach of express warranties. If the Bill is passed, O.C.G.A § 9-3-51 would include a subsection that provides: “This Code section shall not apply to actions for breach of contract, including, but not limited to actions for breach of express contractual warranties.”
Jason Gropper, Autry, Hall & Cook, LLP
Mr. Gropper may be contacted at Gropper@ahclaw.com
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Texas Shortens Its Statute of Repose To 6 Years, With Limitations
October 02, 2023 —
Jason Daniel Feld & Roni Most - Kahana FeldEffective June 9, 2023, Texas has shortened its statute of repose from the existing 10-year statute for builders of new homes to 6-years under specific conditions. The significantly shorter statute of repose bars suits against construction contractors of detached one-and two-family homes and townhomes, filed six years after the substantial completion of such homes, where the contractor also furnished a written warranty in compliance with the statute. Notably, projects including apartments, mixed-use, and hotels are not covered by the new law. It is also noted that a grey area in the law exists as to whether condominiums will be covered by the statute. The statute of repose strictly bars the filing of any action, claim or arbitration demand regardless of when the injury was actually discovered (latent defects) and is separate and distinct from any applicable statute of limitations.
The New Texas Statute of Repose Law
Under the
Texas Civil Practice & Remedies Code § 16.009, persons who construct or repair improvements to real property cannot be sued for defective or unsafe conditions of the property or deficiencies in the construction or repair of the improvement later than 10 years after substantial completion of the improvement, except in certain narrow circumstances. This statute is known as the “statute of repose.” The statute applies not only to suits for construction defects, but also personal injury, wrongful death, contribution, and indemnity.
Reprinted courtesy of
Jason Daniel Feld, Kahana Feld and
Roni Most, Kahana Feld
Mr. Feld may be contacted at jfeld@kahanafeld.com
Mr. Most may be contacted at rmost@kahanafeld.com
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Everyone's Moving to Seattle, and It's Stressing Out Sushi Lovers
July 16, 2014 —
Peter Robison and Alison Vekshin – BloombergSooner or later, everyone moves to Seattle, went one saying in the city’s 1990s heyday. The trouble residents face now: What happens after everyone does?
Known for hiking and the open spaces of the American West, Seattle is in the midst of another boom that’s made it the fastest-growing among the top 50 U.S. cities. That’s causing angst over density, affordability, crime and other issues more familiar to an East Coast metropolis. At the same time, pay is outpacing the national average and an already rich cultural life is thriving as new restaurants and nightspots open.
“It’s a blessing,” Seattle Mayor Ed Murray, a 59-year-old Democrat, said of the growth. “But with it comes some real challenges.”
Mr. Robison may be contacted at robison@bloomberg.net; Ms. Vekshin may be contacted at avekshin@bloomberg.net
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Peter Robison and Alison Vekshin, Bloomberg
Former NJ Army Base $2B Makeover is 'Buzzsaw' of Activity
June 14, 2021 —
Tom Stabile - Engineering News-RecordTake a developed property the size of New York City’s Central Park with 5 million sq ft of building area, program in new construction or renovation over 20 years and across three dozen parcels for 1,600 housing units, 300,000 sq ft of civic or government space, 500,000 sq ft for retail and 2 million sq ft of offices, and you have a pretty ambitious undertaking. The $2-billion effort to redevelop Fort Monmouth, a decommissioned former U.S. Army base in the thick of New Jersey’s suburban sprawl, is all kinds of ambitious.
Reprinted courtesy of
Tom Stabile, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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Ensuing Loss Provision Found Ambiguous
April 25, 2012 —
Tred R. Eyerly - Insurance Law HawaiiAfter the insurer denied coverage in a homeowner’s policy for construction defects under various exclusions, the court found the ensuing loss provision was ambiguous.Kesling v. Am. Family Mut. Ins. Co., 2012 U.S. Dist. LEXIS 38857 (D. Colo. March 22, 2012).
After purchasing a home from the sellers, the insureds noticed problems with the deck of the home. Massive cracking appeared, causing lifting and leaking on the deck and water running through the exterior foundation wall into the home. There was also damage to the roof and crawlspace.
The insureds had a homeowner’s policy with American Family, which covered accidental direct physical loss to property described in the policy unless the loss was excluded. They requested coverage for "conditions, defects and damages." American Family denied coverage because wear and tear, as well as damage to foundations, floors and roofs were excluded. The policy did provide coverage, however, for "any resulting loss to property described . . . above, not excluded or excepted in this policy.
When coverage was denied, the insureds sued American Family.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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