Hybrid Contracts for The Sale of Goods and Services and the Predominant Factor Test
February 15, 2021 —
David Adelstein - Florida Construction Legal UpdatesFlorida’s Uniform Commercial Code (also known as the UCC) applies to transactions for goods. “Goods” is defined by Article II of the UCC as “all things (including specially manufactured goods) which are movable at the time of identification to the contract for sale other than the money in which the price is to be paid, investment securities (chapter 678) and things in action.” Fla. Stat. s. 672.105(1).
The UCC does NOT apply to transactions for services. Transactions for services are governed by common law.
Oftentimes, transactions or contracts include BOTH goods and services. In this scenario, referred to as a hybrid contract, does the UCC or common law apply? In this scenario, courts apply the predominant factor test to determine whether the UCC or common law governs the transaction:
Whether the UCC or the common law applies to a particular hybrid contract depends on “whether the[ ] predominant factor, the [ ] thrust, the[ ] purpose [of the contract], reasonably stated, is the rendition of service, with goods incidentally involved (e.g., contract with artist for painting) or is a transaction of sale, with labor incidentally involved (e.g., installation of a water heater in a bathroom).” In such instances, the determination whether the “predominant factor” in the contract is for goods or for services is a factual inquiry unless the court can determine that the contract is exclusively for goods or services as a matter of law.
Allied Shelving & Equipment, Inc. v. National Deli, LLC, 154 So.3d 482, 484 (Fla. 3d DCA 2015) (citations omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Be Careful With Construction Fraud Allegations
April 06, 2016 —
Christopher G. Hill – Construction Law MusingsHere at Construction Law Musings we have discussed the intersection of contracts, construction and fraud on several occasions. We’ve even discussed how such fraud can bleed over from the civil to the criminal.
Recently, the Virginia Supreme Court weighed in again on the question of construction fraud and criminal allegations. In O’Connor v. Tice, the Court discussed a malicious prosecution action brought by a contractor against owners of a commercial building. In O’Connor, the owners and the contractor got into a disagreement over alleged damage to the roof of the owners’ building and who was responsible. In response to this disagreement, the owners contacted the local sheriff’s office, accusing the contractor of construction fraud, and then wrote a “15 day letter” to the contractor outlining the criminal consequences should he fail to pay the damages sought in the owners civil lawsuit. Subsequently, a criminal warrant was issued against the contractor based solely upon the word of the owners. This last occurred at the insistence of the owners (who did not inform the sheriff’s deputy or the Commonwealth Attorney that they’d had this conversation or that the contractor had partially performed) after they discussed the matter with the contractor’s attorney and were informed that any claim that they may have had was civil in nature.
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Christopher G. Hill, Construction Law MusingsMr. Hill may be contacted at
chrisghill@constructionlawva.com
In a Win for Design Professionals, California Court of Appeals Holds That Relation-Back Doctrine Does Not Apply to Certificate of Merit Law
December 20, 2017 —
Garret Murai - California Construction Law BlogThe year was 1995. The old guard was still in power in Sacramento. “Button-Down” Pete Wilson was Governor. Willie Brown, the self-nicknamed “Ayatollah of the Assembly,” was Speaker of the Assembly. And Bill “Huggy” Lockyer was Senate Pro Tem. Names that, for many reasons as of late, seem . . . well . . . let’s just say, “quaint.”
Their time, however, was coming to an end. Three years earlier, California voters approved Proposition 140, which instituted term limits for the first time in California. And by 1996, the first slate of legislators would be “termed out.” The immediate impact: It was the time for making deals because you didn’t know who would be keeping house next.
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Garret Murai, Wendel, Rosen, Black, Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Traub Lieberman Attorneys Recognized as 2024 “Top Lawyers” in New York by Hudson Valley Magazine
July 15, 2024 —
Traub LiebermanTraub Lieberman is pleased to announce four New York partners have been included in the 2024 edition of the Hudson Valley Magazine "Top Lawyers in the Hudson Valley in 2024.” This annual guide recognizes over 260 of the region's leading attorneys.
Lisa Shrewsberry, Hillary Raimondi and Jonathan Harwood are noted for their professional skills in the category of Professional Malpractice Non-Medical Defense and Copernicus “Cope” Gaza in the Insurance category.
Insurance:
Professional Malpractice Non Medical Defense:
- Jonathan R. Harwood
- Hillary J. Raimondi
- Lisa L. Shrewsberry
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Traub Lieberman
Contractor Entitled to Defense for Alleged Faulty Workmanship of Subcontractor
February 10, 2020 —
Tred R. Eyerly - Insurance Law HawaiiApplying Nevada law, the Federal District Court in Florida found that the general contractor was entitled to a defense of claims based upon alleged faulty workmanship of a subcontractor. KB Home Jacksonville LLC v. Liberty Mutual Fire Ins. Co, 2019 U.S. Dist. LEXIS 151235 (M.D. Fla. Sept 5, 2019).
KB Home completed six residential developments utilizing various subcontractors. One subcontractor was Florida State Plastering, LLC (FSP) for installing stucco. Eighty-eight complaints against KB Home implicated FSP's stucco work. Plaintiffs alleged that the stucco subcontractor's work suffered from construction defects, causing damages not only to the exterior stucco, but also the underling wire lath, paper backing, house wrap, wood sheathing, interior walls, interior floors and other property.
Ironshore insured FSP under a CGL policy. KB Home was an additional insured for liability for property damage caused by "your work." KB Home was also insured under its own CGL policy with Liberty Mutual. Both insurers refused to defend.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
SFAA Commends U.S. Senate for Historic Bipartisan Infrastructure Bill
August 16, 2021 —
The Surety & Fidelity Association of AmericaAugust 10, 2021 (WASHINGTON, DC) –
The Surety & Fidelity Association of America (SFAA) commends the U.S. Senate for passing the historic, bipartisan Infrastructure Investment and Jobs Act. The $1.2 trillion deal will lay the foundation for extensive improvements in the nation’s roadways, bridges, railways, waterways and broadband access.
“Investing in infrastructure will create millions of jobs across the country, growing our national and local economies in both the short and long term,” said SFAA president and CEO, Lee Covington. “The surety industry fully supports this investment and will continue to provide the essential protections necessary to support our country’s infrastructure needs through our suite of products and services.”
SFAA also commends the inclusion of the Van Hollen 2354 amendment to the bill, accepted by a unanimous vote of 97-0. The amendment requires payment and performance bonds on all federally-financed infrastructure projects receiving loans and grants under the Transportation Infrastructure Finance and Innovation Act (TIFIA), protecting taxpayers’ dollars, ensuring project completion, protecting local small business contractors and workers, and promoting economic growth.
The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. https://www.surety.org/
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Augmenting BIM Classifications – Interview with Eveliina Vesalainen of Granlund
July 19, 2017 —
Aarni Heiskanen - AEC BusinessBuildingSMART Finland is supplementing building information modeling (BIM) guidelines in a national standardization project, as a part of the KIRA-digi program. In her Master’s thesis, Eveliina Vesalainen, of Granlund, has compared European BIM classifications for mechanical, electrical, and plumbing (MEP) design. Her study is the groundwork for the upcoming Finnish norms.
“I’m a 26-year-old, soon to be Master of Science, and I come from Mäntsälä. I live in Helsinki and work at Granlund, a leading Finnish MEP consultancy,” Eveliina explains. She has a bachelor’s degree in environmental engineering, but became interested in MEP by chance.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
info@aepartners.fi
Builders Arrested after Building Collapses in India
July 01, 2014 —
Beverley BevenFlorez-CDJ STAFFDeaths from a building collapse in Chennai, India is currently at nineteen, while forty-two people have been rescued, according to the New York Times, and “40 others are feared trapped in the debris,” reported BBC News.
The Chennai police arrested six people, “including the partners of the construction company, the architect and the structural engineer, and charged them with criminal negligence in connection with the building collapse there,” according to P. Subramniam, a Chaennai police officer, as quoted by the New York Times.
"It appears they have not adhered to approved plans,” Tamil Nadu Chief Minister J Jayalalithaa told BBC News. “The building appears to have serious structural defects."
Building collapses are frequent in India, and most are “blamed on lax safety and substandard materials,” reported BBC News. The New York Times pointed out that “municipal authorities rarely condemn buildings even when they appear to have dangerous defects.” Regardless, “even unsafe buildings attract people who want to live in them because the competition for shelter is fierce among millions of city residents.”
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