No Coverage for Restoring Aesthetic Uniformity
December 10, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe court found there was no coverage regarding aesthetic uniformity between new materials installed after water damage occurred and the rest of the building. Great Am. Ins. Co. of New York v. The Towers of Quayside No. 4 Condominium Assoc., Case No. 15-CV-20056-King (U.S. Dist. Ct., S.D. Fla., Nov. 5, 2015).
The insured's high rise condominium suffered water damage when a valve on the air conditioning unit damaged the drywall, carpeting, baseboards, insulation and wallpaper in the east hallways of the eleventh floor and the floors below. Floors three through twenty-five had a uniform appearance by design with respect to the carpet, wallpaper, and woodwork in the common area hallways.
The insured submitted a claim under its property policy with Great American. A payment of $170,291.84 was made for damage to the east hallways of the eleventh floor and the floors below. The insured sought coverage to repair or replace undamaged carpeting, wallpaper, baseboards, and woodwork in (1) the west hallways and elevator landings of the eleventh floor and the floors below and in (2) floors twelve through twenty-five.The insured contended that the loss of aesthetic uniformity devalued the building and constituted a loss to the building.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Guessing as to your Construction Damages is Not the Best Approach
November 18, 2019 —
David Adelstein - Florida Construction Legal UpdatesArbitrarily guessing as to your construction damages is NOT the best approach. Sure, experts can be costly. No doubt about it. Having an expert versus guessing as to your construction damages caused by another party’s breach of contract is a no brainer. Engage an expert or, at a minimum, be in a position to competently testify as to your damages caused by another party’s breach of contract. Otherwise, the guessing is not going to get you very far as a concrete subcontractor found out in Patrick Concrete Constructors, Inc. v. Layne Christensen Co., 2018 WL 6528485 (W.D. New York 2018) where the subcontractor could not competently support its delay-related damages or change orders and, equally important, could not support that the damages were proximately caused by the general contractor’s breach of the subcontract.
In this case, the concrete subcontractor entered into a subcontract to perform concrete work for a public project. The project was delayed and the general contractor was required to pay liquidated damages to the owner. Not surprisingly, the subcontractor disputed liability for delays and sued the general contractor for all of its delay-related damages “in the form of labor and materials escalation, loss of productivity, procurement and impact costs, field and home office overhead, idle equipment, inability to take on other work, lost profits, and interest.” Patrick Concrete Constructors, 2018 WL at *1.
The general contractor moved for summary judgment as to the plaintiff’s delay-related damages – the subcontractor’s damages were nothing but guesses and the subcontractor could not prove the general contractor was the cause of the subcontractor’s damages.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
The National Labor Relations Board Joint Employer Standard is Vacated by the Eastern District of Texas
April 22, 2024 —
Andrew G. Vicknair - The Dispute ResolverMany employment laws use the concept of joint employer to make more than one business entity responsible for complying with employment law obligations towards employees who to varying degrees work for, or under the direction of entities who are not technically the employees primary employer. Nowhere is that issue more prevalent than in contractor subcontractor relationships. Over the years the National Labor Relations Board (NLRB) has developed various tests for determining joint employer status. Unless a business entity is an employer of individuals, the NLRB has no jurisdiction over a dispute between the workers and a business entity for whom they work.
It is important for contractors to understand the importance of being an employer and the obligations that flow from such status. Likewise, it is also important to understand when a contractor may be classified as a “joint employer” over certain individuals. Depending on the specific laws involved, such a finding of joint-employer status can happen under the “joint employer doctrine” which often exists in subcontractor and temporary employment arrangements. The “joint-employer doctrine” may render a contractor responsible for another company’s employment liabilities.
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Andrew G. Vicknair, D'Arcy Vicknair, LLCMr. Vicknair may be contacted at
agv@darcyvicknair.com
Ninth Circuit Holds that 1993 Budget Appropriations Language Does Not Compel the Corps of Engineers to use 1987 Wetlands Guidance Indefinitely
October 09, 2018 —
Anthony B. Cavender - Gravel2GavelOn September 21, 2018, the U.S. Court of Appeals for the Ninth Circuit decided the case of Tin Cup, LLC v. U.S. Army Corps of Engineers. A divided panel of the Court of Appeals (although all members concurred in the result) held that legislative language in a 1993 appropriations act does not require the U.S. Army Corps of Engineers (Corps) to continue to use its 1987 Clean Water Act (CWA) wetlands guidance beyond 1993. The Ninth Circuit noted that it approaches the interpretation of budget bills somewhat differently.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Insured's Claim for Water Damage Dismissed with Leave to Amend
August 12, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe court granted the insurer's motion to dismiss the insured's claim for water damage under a homeowners' policy, but granted leave to amend. Thompson v. State Farm Gen. Ins. Co., 2024 U.S. Dist. LEXIS 98486 (C.D. Cal. June 3, 2024).
The insureds' first amended complaint alleged they "suffered a sudden and accidental water loss below their slab in their home." A plumber hired by the insureds discovered "a copper pipe burst inside a structural concrete footing between a manifold in the living room and the water heater." The insureds notified their insurer, State Farm.
Claim adjuster Andrea Acevedo conducted a visual inspection. The complaint alleged she did not "inspect or view the pipe, or have a testing conducted on the pipe." Acevedo sent a letter denying the insureds' claim based upon her finding that "because the loss was caused by a slab leak, there is no coverage available for the loss." The letter explained that the hot water supply line under the home failed due to wear, tear, deterioration and/or electrolysis. The predominant cause of loss to the failed pipe was due to one or a combination of rust, electrolysis, corrosion, wear, tear and/or deterioration. The policy did not cover water damage caused by water from below the surface of the ground. Further coverage for wear, tear, deterioration, rot, mold, maintenance, water from below the surface of the ground and a continuous or repeated seepage or leakage of water was excluded.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
One Shot to Get It Right: Navigating the COVID-19 Vaccine in the Workplace
January 18, 2021 —
Natale DiNatale, Stephen W. Aronson, Britt-Marie K. Cole-Johnson, Emily A. Zaklukiewicz, Kayla N. West & Abby M. Warren - Construction ExecutiveThe Food and Drug Administration has granted Emergency Use Authorization for Pfizer and Moderna’s COVID-19 vaccines. As COVID-19 cases continue to rise, employers across all industries may be considering whether to adopt a vaccination policy requiring vaccination as a condition of working and/or accessing the workplace or jobsite. The FDA’s recent authorization of the COVID-19 vaccine raises several legal and practical issues that employers may wish to consider as they prepare for widespread distribution and availability of the vaccine in 2021.
Mandating the COVID-19 Vaccine in the Workplace
The Equal Employment Opportunity Commission recently issued guidance suggesting that employers may mandate that employees receive the COVID-19 vaccination, subject to certain limitations. The EEOC has taken the position that administration of the COVID-19 vaccine does not implicate the Americans with Disabilities Act (ADA) because administration of the vaccine is not a medical examination. Under the EEOC’s guidance, employers, regardless of the industry, may require that employees receive the COVID-19 vaccine without having to justify that the mandate is job related and consistent with business necessity. Beyond that, construction employers should be aware of numerous issues and risks associated with mandatory vaccine policies.
Reprinted courtesy of Natale DiNatale, Stephen W. Aronson, Britt-Marie K. Cole-Johnson, Emily A. Zaklukiewicz, Kayla N. West & Abby M. Warren of
Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Construction Recovery Still Soft in New Hampshire
May 10, 2013 —
CDJ STAFFThe latest building news out of New Hampshire is somewhat mixed. Yes, there has been an increase of seventeen percent in the value of future residential construction on the state. But that’s not enough to offset the general slide in the value of future construction overall. The New Hampshire Business Review reports that the state saw a four percent drop in the cost of planned construction, comparing March 2012 to March 2013.
The total value of the drop was shared between the twelve percent drop in nonresidential construction and the fifty-two percent drop in infrastructure building, each of which were more than $4 million less than in the prior year. The rise in residential construction could not make up the loss in other areas.
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LAX Construction Defect Suit May Run into Statute of Limitations
December 30, 2013 —
CDJ STAFFCurrent arguments over the claims made by LAX that Runway 25L was built in a defective manner by Tutor-Saliba/O&G Industries are hinging over whether the airport knew the runway was defective less than four years after the construction was completed. The runway was built almost five years ago, and Tutor-Saliba is claiming that Los Angeles World Airports has delayed too long in making a construction defect complaint. Tutor-Saliba is not conceding that the runway is defective, only that if it were, the airport would have known it earlier.
Los Angeles World Airports, which operates LAX, is not commenting on the matter, but Robert Span, an aviation attorney at Steinbrecher & Span, told the Daily Breeze that while “there is a four year statute of limitations for dealing with construction defects, but that’s for what they called patent defects,” and that “there’s a 10-year statute of limitations for construction projects where the defect that is alleged is called latent — something that would not be readily apparent.”
Tim Pierce, a construction attorney at K&L Gates LLP described it as “a common defense,” though he said it is “raised in most cases and only works in some.”
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