What is an Alternative Dispute Resolution?
August 26, 2019 —
Bremer Whyte Brown & O'Meara LLPAlternative Dispute Resolution (“ADR”) is a term that refers to a number of processes that can be used to resolve a conflict, dispute, or claim. ADR processes are alternatives to having a court decide the dispute in trial.
ADR processes can be used to resolve any type of dispute including but not limited those related to families, neighborhoods, employment, businesses, housing, personal injury, consumers, and the environment. ADR is usually less formal, less expensive, and less time-consuming than a trial.
Most Common Types of Alternative Dispute Resolutions
Mediation
In mediation, an impartial person called a “mediator” helps the parties try to reach a mutually acceptable resolution of the dispute. The mediator does not decide the dispute but helps the parties communicate so they can try to settle the dispute themselves. Mediation leaves control of the outcome with the parties.
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Bremer Whyte Brown & O'Meara LLP
New York Appellate Division: Second Department Contradicts First Department, Denying Insurer's Recoupment of Defense Costs for Uncovered Claims
March 01, 2021 —
Jasjeet K. Sahani - Saxe Doernberger & Vita, P.C.New York law has historically allowed insurers to recoup defense costs paid on behalf of an insured if there is ultimately no coverage for the underlying action, provided that the insurer reserved its rights to seek reimbursement. On December 30, 2020, the New York Appellate Division, Second Department declined to follow this longstanding principle in American Western Home Insurance Co. v. Gjonaj Realty & Mgt. Co.,1 by holding that the insurer was not entitled to recoup defense costs, even where it was determined that the claim was not covered under the insurance policy.
In American W. Home Ins. Co., the insureds were named as defendants in an underlying personal injury action. More than four years after the accident, and a $900,000 default judgment against the insureds, they tendered the lawsuit to their commercial general liability insurer, American Western Home Insurance Company (“American”). American denied coverage based on untimely notice, but after the default judgment was subsequently vacated, it agreed to defend the underlying action subject to a reservation of rights. The reservation of rights specifically reserved American’s right to deny coverage if the vacatur of the default judgment against the insureds was reversed. Further, American reserved its right to recover the costs of defending the underlying litigation.
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Jasjeet K. Sahani, Saxe Doernberger & Vita, P.C.Mr. Sahani may be contacted at
JSahani@sdvlaw.com
Failing to Pay Prevailing Wages May Have Just Cost You More Than You Thought
April 01, 2015 —
Garret Murai – California Construction Law BlogMechanics lien claims, payment bond claims, stop payment notice claims, delay claims, defect claims, abandonment claims . . .
With the variety of claims unique to construction projects it’s easy to forget that construction disputes are simply a category of business disputes in which broader business-related torts apply.
In Roy Allan Slurry Seal, Inc. v. American Asphalt South, Inc., Case No. B255558 (February 20, 2015), the California Court of Appeal for the Second District held for the first time that a second-place bidder on a public works contract may sue a winning bidder – who failed to pay its workers prevailing wages – under the business tort of intentional interference with prospective economic advantage.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
No Coverage for Additional Insured for Construction Defect Claim
July 02, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Seventh Circuit affirmed the district court's grant of summary judgment to the insurers, finding there was no coverage for the additional insured on a construction defect claim. St. Paul Guardian Ins. Co. v. Walsh Construction. Co., 2024 U.S. App. LEXIS 10285 (7th Cir. April 29, 2024).
The City of Chicago hired Walsh Construction Company as general contractor for the Facade and Circulation Enhancement (FACE) project at O'Hare International Airport. The FACE project involved building and installing a new canopy for Terminals 1, 2 and 3. The project also called for the construction of a steel and glass curtain wall that would be integrated with the curtain wall at Terminals 2 and 3. Walsh contracted with Carlo Steel Corporation to manufacture the steel and curtain wall. Carlo, in turn, subcontracted with LB Steel, LLC to manufacture and install the steel elements of the wall, which included steel columns, hammer heads and box girders. The subcontract between Carlo and LB Steel included an indemnity provision that required LB Steel to indemnify Carlo and Walsh for any property damage resulting from LB Steel's negligent performance.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Are Modern Buildings Silently Killing Us?
May 16, 2022 —
Michael Rubino - Construction ExecutiveConstruction, in general, is a rapidly evolving industry as contractors, architects, and engineers are tasked with keeping up with government regulations, building practices and technological innovations. While growth and evolution are pivotal components of successful projects and businesses, it’s led to a few issues, one of which involves mold.
Like the construction industry, the world of mold is evolving as more research, understanding, and awareness develops, highlighting its prevalence in buildings and the effect it can have on the health of those exposed. What industry professionals are witnessing time and again is an increasing occurrence of individuals reaching out and asking for help after experiencing exposure that led to chronic illness. The reality is that modern buildings are contributing to this rise.
The Top of the Funnel
An issue aiding in mold’s prevalence in modern-day buildings is the way in which they are built. In an effort to achieve net-zero energy-efficient buildings, construction professionals have adopted the technique of sealing buildings as tightly as possible. While this transition reduces energy costs in the building, it also introduces a few new problems that aren't always addressed in modern construction. One such issue is how the lack of airflow between the indoor and outdoor environments can lead to a buildup of contaminant particles in the building.
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Michael Rubino, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Contractors Must Register with the L&I Prior to Offering or Performing Work, or Risk Having their Breach of Contract Case Dismissed
March 27, 2023 —
Jill Guingcangco - Ahlers Cressman & Sleight PLLCThe Washington State Legislature has an interest in protecting the public from “unreliable, fraudulent, financially irresponsible, or incompetent contractors” (RCW 18.27.140), which is why contractors are required to register with the Department of Labor and Industries (“L&I”) before advertising, offering to do work, or performing any work as a contractor. RCW 18.27.020. Accordingly, if a contractor brings an action for the collection of compensation or sues for breach of contract for work they performed, that individual is required to allege and prove that, at the time they performed the work, they were a registered contractor. RCW 18.27.080.
In
Dobson v. Archibald,1 Dobson worked as a longshoreman, but also simultaneously performed home repair work for pay during her off time. Dobson never registered as a contractor with L&I. Dobson acquired customers for her home repair work through a referral process. Dobson was referred to Archibald through a mutual friend who Dobson performed some home repair work for. Archibald subsequently hired Dobson to refinish the hardwood floors in Archibald’s home.
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Jill Guingcangco, Ahlers Cressman & Sleight PLLCMs. Guingcangco may be contacted at
jill.guingcangco@acslawyers.com
Constructive Changes – A Primer
October 02, 2018 —
Jonathan R. Mayo - Smith CurrieA “constructive change” occurs when an owner action or omission not formally acknowledged by the owner to be a change in the contact’s scope of work forces the contractor to perform additional work. Constructive changes are not formal change orders, but informal changes that could have been ordered under a contract’s changes clause if the change had been recognized by the owner. The constructive change doctrine recognizes that being informally required to do extra work is similar to a formal change order and should be governed by similar principles. Thus, if it is found that a constructive change order did occur, the contractor may be entitled to payment for additional costs incurred, and an extension to the contract performance period.
Constructive changes most often arise where there is a dispute regarding contract interpretation, defective plans and specifications, acceleration or suspension of work, interference or failure to cooperate with the contractor, misrepresentation or nondisclosure of superior knowledge or technical information, over inspection, or a delay in providing requested information crucial to the contractor’s ability to continue work.
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Jonathan R. Mayo, Smith CurrieMr. Mayo may be contacted at
jrmayo@smithcurrie.com
Superior Court Of Pennsylvania Holds Curb Construction Falls Within The Scope Of CASPA
September 17, 2014 —
Jerrold Anders & Michael Jervis – White and Williams LLPIn Prieto Corp. v. Gambone Construction Co., the Superior Court of Pennsylvania recently considered three issues arising out of a construction dispute, including whether construction of a curb falls within the scope of the Contractor and Subcontractor Payment Act (CASPA), 73 P.S. §§ 501-516. CASPA is a Pennsylvania statute which is intended to protect contractors and subcontractors from abuses in the building industry and which establishes certain rules and deadlines for payments between owners, contractors, and subcontractors. Failure to abide by the act’s payment requirements subjects an owner or contractor to liability for interest, penalties and attorneys fees. In this case, Prieto was a subcontractor hired by Gambone to construct concrete or Belgian block curbs at Gambone’s property developments. Prieto sued Gambone under CASPA for failure to pay its invoices for four projects. After the trial court entered judgment for Prieto, Gambone appealed, arguing that CASPA did not encompass the work at issue, i.e. the construction of curbs, because curbs did not constitute an improvement to real property.
Reprinted courtesy of
Jerrold Anders, White and Williams LLP and
Michael Jervis, White and Williams LLP
Mr. Anders may be contacted at andersj@whiteandwilliams.com; Mr. Jervis may be contacted at jervism@whiteandwilliams.com
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