Providing Your Insurer Prompt Notice
May 20, 2024 —
David Adelstein - Florida Construction Legal UpdatesSometimes, when it comes to insurance, you may hear the argument that you breached your insurance policy by failing to provide your insurer with prompt notice as the insurance policy requires. Well, this is not such an absolute issue. With that said, you should absolutely provide your insurer with prompt notice of a claim or loss. No legitimate reason not to. But, if you don’t, it is not an absolute get out of jail free card for your insurer, but it does give them a good argument, which you don’t really want to deal with.
In Gulfpoint Construction Co., Inc. v. Westfield Ins. Co., 2024 WL 1759228 (11th Cir. 2024), an insured appealed a trial court’s ruling that found it did not provide prompt notice to its property insurer as the policy required. In this case, notice was provided two years after a loss from a hurricane. The insurer denied coverage and, in doing so, relied on the insured’s failure to provide prompt notice. Although the trial court agreed, the appellate court found this was a genuine issue of material fact.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
General Indemnity Agreement Can Come Back to Bite You
October 21, 2019 —
Christopher G. Hill - Construction Law MusingsI talk about payment bonds often here at Construction Law Musings. I talk a bit less about performance bonds and even less about the General Indemnity Agreements (GIA) that are signed by companies and their principals as part of the agreement between a construction company and its bonding company for the provision of these bonds. However, this does not mean that these GIA’s are not important. In fact, these are the agreements that allow a bonding provider to recoup any money paid out pursuant to either a payment or performance bond.
A 2018 case illustrates their importance. In Allegheny Cas. Co. v. River City Roofing, LLC, the Court considered a claim by Allegheny seeking both specific performance of the collateral agreement and reimbursement of certain expenses and investigative costs expended by Allegheny pursuant to its performance bond. Allegheny sought to be reimbursed for certain payments for siding work, investigative costs, and costs spent enforcing the GIA. Allegheny further sought to force the defendants to post sufficient collateral. To do so, Allegheny sued in the Eastern District of Virginia and then moved for summary judgment stating that the GAI uneuivocally required such a result due to the good faith payment for the siding work and the plain language of the GIA.
In response, the Defendants, River City Roofing and its principals that had personally guaranteed the indemnity, argued that the GIA did not apply to the siding work because only the roofing contract was subject to the performance bond and that any bond claims for which collateral was demanded were inchoate and therefore not proper for specific performance.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Brooklyn’s Hipster Economy Challenges Manhattan Supremacy
April 08, 2014 —
Henry Goldman – BloombergMarty Markowitz was strolling in Vienna when he noticed mannequins in a shop window wearing hats emblazoned with Paris, London and Brooklyn. The store had plenty of London and Paris models. Brooklyn was sold out.
“They said they couldn’t restock the Brooklyn hats fast enough,” said Markowitz, 69, who spent 12 years as president of New York City’s most populous borough before retiring in January.
Brooklyn’s cachet as a global brand and epitome of urban hipsterdom is shifting New York City’s center of gravity, reducing the supremacy of Manhattan across the East River and exerting more influence on New York’s political, economic and cultural life. It’s creating jobs and adding residents at a faster pace than any other borough, sparking a boom in commercial development to supply the new masses.
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Henry Goldman, BloombergMr. Goldman may be contacted at
hgoldman@bloomberg.net
The Clock is Ticking: Construction Delays and Liquidated Damages
September 18, 2023 —
Tiffany Harrod - ConsensusDocsWith the on-going shortage of construction workers in the industry and other factors ranging from weather to procurement problems, the threat of project delay is real. When a contract contains a liquidated damages clause for assessing project delays, real financial consequences for contractors can result. Courts have long allowed parties to apportion contractual risks as they deem appropriate especially in the commercial context where the parties are considered to be sophisticated even if their bargaining power is not equal. Liquidated damage provisions such as those for delay that are found in construction contracts are not unusual but they must be crafted in such a way as to be enforceable and not violate public policy.
A liquidated damage clause in a construction contract is a customary way for the parties to deal with the possibility of delay in the completion of a project and the potential losses flowing from the delay.[
1] In their most basic form, the party in breach, which is more often than not the contractor, is obligated to pay the non-breaching party, usually the project owner, some fixed sum of money for the period that exceeds the designated completion date that was agreed upon in advance and memorialized in the contract. (It is after all no secret that these provisions are primarily for the owner’s benefit.) The non-breaching party is then compensated for losses associated with the delay without the time and expense of having to prove in either a civil suit or an arbitration proceeding what the actual damages are. This option is particularly attractive to project owners because the liquidated damages assessment can simply be withheld from payments owed to the contractor once the agreed-upon completion date has been passed.
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Tiffany Harrod, Peckar & AbramsonMs. Harrod may be contacted at
tharrod@pecklaw.com
Las Vegas Sphere Lawsuits Roll On in Nevada Courtrooms
October 02, 2023 —
Richard Korman - Engineering News-RecordBig concerts have yet to start at Las Vegas’ distinctive new ball-shaped entertainment venue, but the legal noise over its construction has been heard in Clark County courtrooms for more than two years.
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Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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Revel Closing Shows Gambling Is No Sure Thing for Renewal
September 03, 2014 —
Christopher Palmeri – BloombergThe Revel Casino Hotel was envisioned as a playground for Wall Streeters who hated flying to Las Vegas. Instead, it’s become a money pit for the banks and money managers who spearheaded the New Jersey project, and the losses will keep coming even after closing today.
The Atlantic City resort, built at a cost of $2.4 billion, ceased operations after two bankruptcies and a 10-month search for a buyer. Barring a sale, the new owners may be Wells Fargo & Co. and JPMorgan Chase & Co., which provided $125 million in court-approved funding. Previous backers also included Capital Group Cos., the third-largest manager of U.S. mutual funds, and Morgan Stanley, the original investor.
The resort fell prey to poor timing, bad design and a misreading of the local market. The Revel saga shows what can go wrong when bankers stray from what they know, according to Charles Geisst, a professor of finance at Manhattan College in New York and author of the book “Wall Street: A History.”
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Christopher Palmeri, BloombergMr. Palmeri may be contacted at
cpalmeri1@bloomberg.net
BHA Announces New Orlando Location
September 30, 2019 —
Donald MacGregor - Bert L. Howe & Associates, Inc.Bert L. Howe & Associates, Inc., one of the country’s leading construction forensics and consulting firms has just announced the opening of their second Florida office. Located in Orlando, this new office will join BHA’s existing Miami location, expanding BHA’s presence in the state and increasing the firm’s ability to provide the highest level of services and logistic support to their clients in Central and North Florida, and in particular, the Orlando, Tampa, Jacksonville and Tallahassee markets.
Since 1993, BHA has been an industry leader in providing construction consulting and forensic services and has been a trusted partner with builders and insurance carriers, both large and small, across the United States. In Florida, BHA has been providing construction defect, storm, and general construction-claims related forensic expert services for the past decade with a proven track record of successful results.
With the addition of new offices in Orlando, Bert L. Howe & Associates, Inc. offers the experience of over 20 years of service to carriers, defense counsel, and insurance professionals as designated experts in over 7,000 claims. BHA’s staff encompasses a broad range of Florida-licensed and credentialed experts in the areas of general contracting and specialty trades, as well as architects, and both civil and structural engineers, and has provided services on behalf of carriers, developers, general contractors and sub-contractors alike.
BHA’s new Orlando office is located in the Regions Bank Tower, 111 North Orange Avenue, Suite 800, Orlando FL, 32801.
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Donald MacGregor, Bert L. Howe & Associates, Inc.Mr. MacGregor may be contacted at
donm@berthowe.com
Pending Home Sales in U.S. Increase Less Than Forecast
October 29, 2014 —
Michelle Jamrisko – BloombergThe number of contracts to buy existing homes rose less than forecast in September, signaling demand will probably plateau heading into the end of 2014.
The pending home sales index increased 0.3 percent after dropping 1 percent in August, the National Association of Realtors said today in Washington. The median projection in a Bloomberg survey of economists called for a 1 percent gain.
Home resales have yet to regain last year’s peak as still-tight credit and low inventories remain hurdles for the industry, which means residential real estate will make a limited contribution to the expansion. The recent drop in mortgage rates and pickup in hiring will probably help underpin demand, even as first-time buyers struggle to enter the market.
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Michelle Jamrisko, BloombergMs. Jamrisko may be contacted at
mjamrisko@bloomberg.net