RDU Terminal 1: Going Green
June 30, 2014 —
Melissa Dewey Brumback – Construction Law in North CarolinaLast week, I had the fortune to join the Triangle USGBC for its “Talk & Walk” about the RDU Terminal 1 renovation project and its sustainable features. For those who haven’t had the chance, I recommend you check out the new terminal specifics the next time you find yourself jet-setting in or out of Raleigh on Southwest airlines.
Terminal 1 has been in operation since 1981, with the last upgrade in 1991. The 2010 opening of the new Terminal 2 had, until now, cemented Terminal 1′s status as the airport’s ugly duckling- complete with the long, featureless metal addition abandoned to times past.
While the $68 million Terminal 1 renovation cannot compete with the Terminal 2 $580 million budget, it nevertheless is an entirely re-imagined space. Better traffic flow (yes, you can now find where to go through security!), increased daylighting, a new canopy system, and commercial curb canopy (see photo) all complete the new architectural image.
Clark Nexsen principals Irvin Pearce and Doug Brinkley explained the renovation, which included energy saving escalators- the first escalator system in North Carolina that slows down during non-use. Other sustainable features include LEED complaint flooring, 86% structural building re-use (slabs on grade, composite decks, and structural roof deck), and 28% reuse of exterior walls.
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Melissa Dewey Brumback, Construction Law in North CarolinaMs. Brumback can be contacted at
mbrumback@rl-law.com
Reminder: Always Order a Title Search for Your Mechanic’s Lien
June 02, 2016 —
Christopher G. Hill – Construction Law MusingsMechanic’s liens are close to my heart as a construction attorney. These powerful tools for collection have been (and likely will be) discussed often here at Construction Law Musings. In fact, they rated their own page here at this little construction blog.
While the form for a mechanic’s lien that is found in the Virginia Code looks simple enough, what goes into that form is key to getting past the initial stage of the mere recording of the lien and moving on to where a lien claimant wishes to go: Payment. Everything from the proper amount of the lien to the timing of filing, the parties named, type of work performed and who signs the lien can trip you up even before you get a chance to have a judge examine your payment claim. In short, this simple form has many pitfalls.
On final item that is not often discussed is the description of the property and who the owner is on a project. A mistake on either of these fronts can be fatal as well. Often the “Owner” listed on the construction documents (the contracts, etc.) is not the same as the owner of the real estate to which your lien would attach. Sometimes a company may hire the general contractor as owner and either be a tenant of the property or could be the operating entity, but not the land holder. In either of these scenarios, merely naming the contract “owner” can be a mistake that could cost you your lien. The owner for lien purposes must be the land owner or there will be a problem.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Wisconsin Court Applies the Economic Loss Doctrine to Bar Negligence Claims for Purely Economic Losses
August 17, 2020 —
Rahul Gogineni - The Subrogation StrategistIn Mech. Inc. v. Venture Elec. Contrs., Inc., No. 2018AP2380, 2020 Wisc. App. LEXIS 170, the Court of Appeals of Wisconsin, District Two, considered whether a party may bring a negligence claim for purely economic damages. In upholding the lower court, the appellate court found that a party is barred by the Economic Loss Doctrine from bringing a negligence claim for purely economic damages.
Both parties involved in this action were subcontractors on a building project at the Great Lakes Research Facility for the University of Wisconsin-Milwaukee. As a result of Venture Electrical Contractors, Inc. (Venture) not paying for requested work, Mechanical, Inc. (Mechanical) sued Venture for $11,961.31. Venture, in turn, countersued in negligence for $1.1 million for costs incurred due to delays and untimely performance. Mechanical sought dismissal of the negligence claim based upon the Economic Loss Doctrine. Finding that the Economic Loss Doctrine applies to purely economic losses, the trial court dismissed Venture’s negligence claim. Venture appealed to the Court of Appeals of Wisconsin.
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Rahul Gogineni, White and Williams LLPMr. Gogineni may be contacted at
goginenir@whiteandwilliams.com
Colombia's $15 Billion Road Plan Bounces Back From Bribe Scandal
June 03, 2019 —
Oscar Medina - BloombergColombia’s $15 billion highway program has come roaring back to life as laws to protect investors help confidence recover from a massive kickback scandal that had paralyzed the sector.
Public works expanded 8.5% in the first quarter from a year earlier, a rare bright spot in an economy that has struggled to grow since oil prices crashed nearly five years ago.
Colombia ranks 102 out of 140 nations in road infrastructure quality, behind Bolivia and Sierra Leone, according to World Economic Forum’s Global Competitiveness report. Fixing that problem, which has bedeviled Colombian industry and agriculture for centuries, can boost growth for a generation, the government believes.
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Oscar Medina, Bloomberg
Contract Change # 10: Differing Site Conditions (law note)
March 28, 2018 —
Melissa Dewey Brumback - Construction Law in North CarolinaPreviously, the A201 required a Contractor to provide notice to the Owner and Architect within 21 days after discovery of unforeseen site conditions. This notification is required prior to the conditions being disturbed, so as to allow the Design Team the ability to evaluate the site and determine the compensability of any such differing conditions.
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Melissa Dewey Brumback, Construction Law in North Carolina
Can Your Small Business Afford to Risk the Imminent Threat of a Cyber Incident?
November 28, 2018 —
Jeffrey M. Dennis & Heather H. Whitehead – Newmeyer & Dillion LLPCybersecurity incidents are occurring on a daily basis and at an increasingly growing rate. Yet, many small businesses still have not obtained adequate (or any) cyber insurance to address these risks and the costly impacts to the business that will result. In a recent study completed by the Insurance Information Institute1, only about a third of all small businesses polled responded that they have cyber insurance in place, with 70% of respondents replying that they have no plans to purchase a cyber insurance policy in the next 12 months. Most of the businesses indicated that they do not believe they have any need for cyber insurance, yet almost half of those same companies stated they are unprepared to handle cyber threats. A main reason for not purchasing cyber insurance was a lack of understanding about this type of insurance and coverages available.
The Risks for Small Businesses
These statistics are alarming considering that the average cost of a cyber-related loss for a small business has increased 250% in the past two years, and now totals $188,400. In determining whether insurance coverage should be purchased, companies typically assess the perceived risks to the company, the likelihood of such risks occurring, as well as any costs or expenses that may result. For example, most companies regularly obtain a property policy to cover a fire or other casualty that may damage its business location even though such an event is unlikely or unexpected. Yet, cyber incidents are just as likely, if not more likely to occur, and the impacts to a company in the event of an incident are far worse. Many incidents result in a complete suspension of the daily operations of the company for several days or longer.
In addition to financial loss, companies may face the following as a result of a cyber incident:
- Theft, breach or loss of information and data;
- Damage to the company's reputation, brand or image; and
- Regulatory, governance and legal issues.
- How Cyber Insurance can Help
Cyber insurance policies can be obtained to address the losses related to a data breach and may include costs for investigating a breach, notifying people affected by a breach of personally identifiable information, managing the potential damage to reputation and other crisis-management expenses, recovering lost or corrupted data, and related legal expenses. More importantly, well-drafted policies can afford coverage for business interruption losses; i.e. those expenses and lost revenue resulting from a breached system and a company's inability to continue its usual operations. Coverage may also be obtained for "cyber extortion", which covers costs resulting from an extortion event such as ransomware or fraudulent wire transfers.
It is important to keep in mind that cyber insurance is only one component to consider when developing and implementing an overall risk management strategy to prevent cyber incidents. However, taking into account the exposure to a company if and when a cyber incident occurs, it is highly advisable to have this coverage in place.
1Insurance Information Institute, "Small business, big risk: Lack of cyber insurance is a serious threat," October 2018.
Jeff Dennis is the head of the firm's Privacy & Data Security practice. Jeff works with the firm's clients on cyber-related issues, including contractual and insurance opportunities to lessen their risk. For more information on how Jeff can help, contact him at jeff.dennis@ndlf.com.
Heather Whitehead is a Partner in the firm's Privacy & Data Security practice. Heather also practices insurance coverage matters for commercial, retail, industrial, mixed-use, multi-family and residential projects. For more information on how Heather can help, contact her at heather.whitehead@ndlf.com.
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Burden to Prove Exception to Exclusion Falls on Insured
April 19, 2022 —
Tred R. Eyerly - Insurance Law HawaiiIn a dispute between two insurers, the Ninth Circuit relied upon Nevada law in finding that the burden of proving that an exception to the exclusion applies was on the insured. Zurich Am. Ins. Co. v. Ironshore Specialty Ins. Co., 2022 U.S. App. LEXIS 1626 (9th Cir. Jan. 20, 2022).
Ironshore insured seven subcontractors. The policy included an exclusion providing there was no coverage for any property damage for the subcontractors' for "work performed prior to the policy inception." An exception to the exclusion provided that the exclusion did not apply to property damage that was "sudden and accidental and takes place within the policy period."
The seven subcontractors were sued for work they had performed. Zurich defended and indemnified the subcontractors. Zurich then sued Ironshore seeking contribution and indemnification for defense and settlement costs. The parties stipulated that all construction work at issue had been completed before the inception of Ironshore's policy and that none of the complaints against the subcontractors alleged that sudden and accidental damage had occurred after the inception of Ironshore's policy.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Colorado’s Workers’ Compensation Act and the Construction Industry
June 20, 2022 —
Jordan Kaplan - Colorado Construction LitigationIn general, issues relating to employment law occur in all industries. However, some issues are more likely to be raised in certain employment contexts. For example, office work environments tend to give rise to harassment and discrimination claims while wage and hour disputes and workplace safety claims are common in the oil and gas industry. In the construction industry, employers must be especially cognizant of discrimination and harassment claims, employee misclassification claims, workplace safety issues, and wage and hour claims. In the context of workers’ compensation claims, construction projects often create unusual situations due to the contractual relationships between the parties.
Even relatively simple construction of a single-family residence involves several levels of contracting, including between the owner and general contractor, between the owner or general contractor and design team, between the general contractor and subcontractors, and between the prime subcontractors and lower tiered sub-subcontractors. In most circumstances, this would not be an issue. However, when an injured worker makes a workers’ compensation claim, the contractual relationships among the various entities involved in a project can have a significant impact on which party or parties could be liable for the injury.
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Jordan Kaplan, Higgins, Hopkins, McLain & Roswell, LLCMr. Kaplan may be contacted at
kaplan@hhmrlaw.com
