So a Lawsuit Is on the Horizon…
August 10, 2021 —
Sean Donoghue - Construction ExecutiveAs certain as death and taxes, documents will need to be exchanged in the event of a lawsuit. Here is what to expect and a few tips for reducing costs and protecting the case.
What Needs to Be Produced?
Discovery is broad, but proportional to the needs (i.e., usually the dollar value) of the case. Cost reports, bid back up and scheduling information are often at the heart of damages issues in construction disputes. Thus, while it will depend on the nature of the dispute, these items will generally need to be produced.
It is no secret that electronically stored information (ESI) can be a big part of discovery in litigation, particularly in a document intensive industry like construction. In addition to electronically stored project files, expect that the inboxes of employees who are close to the dispute will need to be searched. How many will depend on the size of the dispute and the number of players involved. Hard-drives and text messages of those employees may also be discoverable.
Reprinted courtesy of
Sean Donoghue, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Donoghue may be contacted at
sdonoghue@eckertseamans.com
Be Careful in Contracting and Business
May 06, 2019 —
Christopher G. Hill - Construction Law MusingsAfter an hour long phone conference with a client, I have had several thoughts, only a few of which I can share here (grin). The first is that my friends and clients in the construction industry are hurting, but need to work with an attorney to assure that the pain is lessened. The second is that more, not less, precision is needed in construction contracting these days.
The reason for the first thought is that the construction industry has taken a hit lately. The news is fraught with stories of the economic downturn and its impact on construction. While the money may be hard to part with, all construction professionals should get their contracts and business practices audited regularly to avoid risk and assure, as best as is possible, that they are protected. One place to get such triage is at my firm.
If you don’t use me, please use someone else.
On the second point, clients need attorney fees provisions, indemnity clauses and to assure that a scope of work is very specifically defined. Wiggle room is not available. In tough economic times. Owners will look for something closer to perfection when money is tight than when money is not. Contractors should also. Your contract is the first line of defense. While no contract can possibly cover every contingency and contracts are only as good as those who sign them when it comes right down to it, a good base contract is the best shield.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Federal Court Asks South Dakota Supreme Court to Decide Whether Injunction Costs Are “Damages,” Adopts Restatement’s Position on Providing “Inadequate” Defense
August 13, 2019 —
Anthony L. Miscioscia & Timothy A. Carroll - White and Williams LLPDo costs associated with complying with an injunction constitute covered “damages?” The U.S. District Court for the District of South Dakota recently certified that question to the South Dakota Supreme Court, in Sapienza v. Liberty Mutual Fire Insurance Company, No. 3:18-CV-03015-RAL, 2019 U.S. Dist. LEXIS 84973 (D.S.D. May 17, 2019). If the South Dakota Supreme Court takes on the question, it will become one of the few highest state courts to do so.[1] The Sapienza case is also notable because the court adopted § 12 of the Restatement of the Law of Liability Insurance (Restatement) regarding an insurer’s potential liability for providing an “inadequate” defense. In doing so, the Sapienza court joins a growing list of courts to rely upon or cite to the Restatement.
The Sapienza case arose out of an underlying dispute between residential neighbors over the size and location of the Sapienzas’ new house they built in a historic district in Sioux Falls, SD. The newly-built house allegedly prevented the neighbors from using their fireplace, blocked natural light the neighbors previously enjoyed, and decreased the value of the neighbors’ house. The neighbors sought a permanent injunction requiring the Sapienzas to modify or relocate the house. The Sapienzas’ homeowners’ insurer provided them with defense counsel, but the insurer instructed the Sapienzas that it would not cover any costs associated with an injunction as such costs did not constitute covered “damages.”
Reprinted courtesy of
Timothy Carroll, White and Williams LLP and
Anthony Miscioscia, White and Williams LLP
Mr. Schulman may be contacted at carrollt@whiteandwilliams.com
Mr. Anderson may be contacted at misciosciaa@whiteandwilliams.com
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Performing Work with a Suspended CSLB License Costs Big: Subcontractor Faces $18,000,000 Disgorgement
September 17, 2015 —
Steven M. Cvitanovic & David A. Harris – Haight Brown & Bonesteel LLPIn what could lead to a draconian result, the Court of Appeal for the First Appellate District held that a contractor who performs work without a valid license can be required to disgorge all payments received, even if the contractor perfectly performed its work. The case, Judicial Council of California v. Jacobs Facilities, Inc. (Ct. of Appeal, 1st App. Dis., Div. One, A140890, A141393), involved an $18,000,000 contract between Jacobs Facilities, Inc. (“Jacobs Facilities”) and the Judicial Council of California (“Judicial Council”). In April 2006, Jacobs Facilities, a wholly owned subsidiary of Jacobs Engineering Group, Inc. (“Jacobs Engineering”) entered into a three year contract with the Judicial Counsel to maintain 121 courthouses and other judicial branch buildings throughout Southern California (the “Contract”). Jacobs Facilities contracted to provide maintenance and oversight services, while retaining subcontractors to perform the actual maintenance and repair work.
In December 2006, as part of a corporate reorganization, Jacobs Engineering started winding up Jacobs Facilities and transferred its employees to Jacobs Engineering and then subsequently to another wholly owned subsidiary called Jacobs Project Management Co. (“Jacobs Management”). The work that was performed by Jacobs Facilities was taken over by Jacobs Management. As part of the windup, Jacobs Facilities’ Contractor’s State License Board license was allowed to lapse and the license expired by operation of law in November 2008. Although Jacobs Management was now performing the work, it was not added as a party to the contract. Although it appears Judicial Council was aware of the corporate changes, it was not until November 2009 that the parties assigned the contract to Jacobs Management.
Reprinted courtesy of
Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and
David A. Harris, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com
Mr. Harris may be contacted at dharris@hbblaw.com
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Home Prices Expected to Increase All Over the U.S.
July 09, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to a survey of the National Association of Realtors (as quoted by the Housing Wire), home prices are expected “to increase in all states and the District of Columbia over the next 12 months, with most of the heavy growth in Florida, Texas, and California, among other states.”
The highest expected price growth was “in states with low inventory levels, strong cash sales, and strong growth sectors (e.g., technology, oil).”
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Safe Commercial Asbestos-Removal Practices
April 18, 2023 —
Emily Newton - Construction ExecutiveContractors must proceed with caution to safely remove asbestos and protect employees and commercial buildings. Only contractors licensed by the Environmental Protection Agency (EPA) in abatement should dispose of it, because the best asbestos-removal practices require high degrees of care and safety.
Asbestos is a stealthy material, quickly becoming airborne and contaminating other areas of the building and humans. No matter a contractor's tenure in the field, it's vital to remember the top practices in the industry as people learn more about elusive, toxic asbestos-containing materials (ACMs).
Wait for Technician and Inspector Feedback
It’s important to find out if a jobsite contains asbestos. Proceed with caution if the structure was built before the 1990s. The removal process shouldn't start immediately if a business suspects asbestos and reaches out to a company. Inspectors scope the situation and grab samples for lab testing to determine how abaters should handle the case. They will need to know every potential hiding place for the asbestos, analyzing everything from caulking to wiring for asbestos coatings and other variants of the substance. This may take time, but commercial contractors must wait until they receive this information before proceeding.
Reprinted courtesy of
Emily Newton, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Court Slams the Privette Door on Independent Contractor’s Bodily Injury Claim
May 06, 2019 —
Brett G. Moore, Michael C. Parme, Lindsey N. Ursua & Lawrence S. Zucker II - Haight Brown & Bonesteel LLPIn Johnson v. The Raytheon Company, Inc., Case No. B281411 (2019) WL 1090217, plaintiff Laurence Johnson (Johnson) was a maintenance engineer employed by an independent contractor that provided control room staff to defendant Raytheon Company, Inc. (“Raytheon”). Johnson was monitoring the computers in the control room when he received low water level alarms pertaining to the water cooling towers. Johnson went to the cooling tower wall in order to look over the wall and verify the water level. Johnson saw the upper half of an extension ladder leaning against the cooling tower’s wall. The ladder had a warning sign which said, “CAUTION” and “THIS LADDER SECTION IS NOT DESIGNED FOR SEPARATE USE.” Despite these warnings, Johnson used the ladder. As he was climbing the ladder it slid out causing him to fall and suffer injuries.
Johnson sued Raytheon, the hirer of the independent contractor, arguing the ladder, among other things, was unsafe and lead to Johnson’s injuries. Johnson believed that Raytheon’s course of conduct of leaving a platform ladder (as opposed to the extension ladder) at the wall constituted an implied agreement to always have one present, on which the independent contractor’s employees relied. Johnson further argued that Raytheon was negligent in providing a dangerous extension ladder, as opposed to a platform ladder, at the wall on the night of the accident.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
Brett G. Moore,
Michael C. Parme,
Lindsey N. Ursua and
Lawrence S. Zucker II
Mr. Moore may be contacted at bmoore@hbblaw.com
Mr. Parme may be contacted at mparme@hbblaw.com
Ms. Lindsey may be contacted at lursua@hbblaw.com
Mr. Lawrence may be contacted at lzucker@hbblaw.com
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Hunton Insurance Practice, Attorneys Recognized in 2024 Edition of The Legal 500 United States
July 02, 2024 —
Hunton Andrews Kurth LLPHunton Andrews Kurth LLP’s insurance coverage practice was once again recognized among the top policyholder insurance practices nationally, receiving a Band 2 national ranking in the 2024 United States Edition of The Legal 500 for Insurance: Advice to Policyholders. The Legal 500 ranks the nation’s top law firms, practices, and lawyers, highlighting those that consistently provide “the most cutting edge and innovative advice to corporate counsel … based on feedback from 300,000 clients worldwide, submissions from law firms and interviews with leading private practice lawyers, and a team of researchers who have unrivalled experience in the legal market.”
Bolstering the team’s national recognition, several of the team’s lawyers received individual accolades: partner Lorelie (Lorie) Masters was named to The Legal 500’s Hall of Fame; team head Syed Ahmad was named a Leading Lawyer; partner Andrea DeField was named a Next Generation Partner; and counsel Latosha Ellis was named a Rising Star. In addition, partners Walter Andrews, Michael Levine, and Geoffrey Fehling were recognized as key lawyers on the team.
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Hunton Andrews Kurth LLP