Owner’s Obligation Giving Notice to Cure to Contractor and Analyzing Repair Protocol
November 23, 2016 —
David Adelstein – Florida Construction Legal UpdatesRecently, I read an informative article from another attorney addressing considerations of an owner when it receives a repair protocol in response to a Florida Statutes Chapter 558 notice of defect letter. This is a well-written article and raises two important issues applicable to construction defect disputes: 1) how is an owner supposed to respond to a repair protocol submitted by a contractor in accordance with Florida’s 558 notice of construction defects procedure and 2) irrespective of Florida’s 558 procedure, how is an owner supposed to treat a contractual notice to cure / notice of defect requirement that requires the owner to give the contractor a notice to cure a defect. This article raises such pertinent points that I wanted to address the issues and topics raised in this article.
558 Procedure–Owner’s Receipt of Contractor’s Repair Protocol
When a contractor submits a repair protocol to an owner in response to a notice of construction defects letter per Florida Statutes Chapter 558, the owner should seriously consider that protocol. The owner does this by discussing with counsel and any retained expert. The owner needs to know whether the protocol is a reasonable, cost-effective protocol to repair the asserted defects or, alternatively, whether the protocol is merely a band-aid approach and/or otherwise insufficiently addresses the claimed defects. Every scenario is different.
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David Adelstein, Katz, Barron, Squitero, Faust, Friedberg, English & Allen, P.A.Mr. Adelstein may be contacted at
dma@katzbarron.com
Miller Act Bond Claims Subject to “Pay If Paid”. . . Sometimes
November 04, 2019 —
Christopher G. Hill - Construction Law MusingsThe Federal Miller Act is a great tool that subcontractors and suppliers on Federal projects can use for collection of wrongfully withheld amounts due. However, as a recent federal case from the Eastern District of Virginia points out, the construction contract’s terms affect when a subcontractor or supplier can use this great collection tool and how much it can recover.
In Aarow v Travelers the Court looked at the interaction between a typical termination clause, a “pay when paid” clause, and the Miller Act. The key facts are these. The general contractor on the project at issue, Syska, did not get paid some disputed amounts by the owner and subsequently did not pay Aarow, the plaintiff and a subcontractor on the project. Aarow then refused to continue work and was terminated by Syska who then took over the completion of the work. Aarow sued, seeking damages for the value of its work prior to the termination. Travellers, the surety defended stating that, if Aarow was properly terminated for cause by Syska, then Aarow was not entitled to payment under the contract until such time as the work was completed and accepted by the owner. The termination clauses are set out in the linked opinion.
The Court agreed with Travelers, stating that the pay when paid clause created a situation whereby Aarow could not stop work merely because of a non-payment by Syska attributed to non-payment by the owner. The Court was clear in stating that the Miller Act trumps “pay when paid” in instances where the only cause for non-payment is non-payment by an owner. The Court then reasoned that it is the interaction between the termination and “pay when paid” provisions, and not the “pay when paid” clause itself, that exonerated Travelers because it created the default by Aarow due to its refusal to continue work. In short, Aarow was properly terminated for cause because it left the job without justification and therefore Travelers was not liable.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Carolinas Storm Damage Tally Impeded by Lingering Floods
October 09, 2018 —
Jim Parsons & Tom Sawyer - Engineering News-RecordAs October rolls in, slow-moving flood crests and sluggish drainage persisting weeks after the passage of Hurricane Florence are leaving large eastern areas in the affected states too inundated for accurate damage assessments. The extent of damage is still largely uncalculated. In some cases, it’s believed to be worsening.
Reprinted courtesy of
Jim Parsons, Engineering News-Record and
Tom Sawyer, Engineering News-Record
Mr. Parsons may be contacted at sawyert@enr.com
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Round and Round: Inside the Las Vegas Sphere
December 16, 2023 —
Grace Calengor - Construction ExecutiveHow does the typical contractor approach building something taller than the Statue of Liberty, wider than a football field and with the most square footage of LED lighting in the world? Perhaps it’s enough to say that Sphere Entertainment Company is not your average contractor—and Sphere in Las Vegas is not your average construction project.
With a budget of approximately $2.3 billion, Sphere is a massive entertainment venue constructed mainly of steel and concrete. How different is that from the typical Vegas high-rise, casino or hotel? When you account for the structure’s sheer size, uncommon shape and intertwining technologies—very.
Reprinted courtesy of
Grace Calengor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Business Risk Exclusions Bar Coverage for Construction Defect Claims
August 27, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe homeowners' assigned claims against the general contractor's insurer were barred by business risk exclusions in the CGL policies. W. Heritage Ins. Co. v. Cannon, 2014 U.S. Dist. LEXIS 101382 (E.D. Wash. July 24, 2014).
The Cannons contracted with Cook Custom Homes to build their home. Cook never hired a soil engineer. The lot was excavated and the basement foundation was back-filled. When the Cannons moved in, they noticed cracks throughout the foundation, basement slab, ceilings and driveway. The Cannons' home was rendered uninhabitable.
The Cannons sued Cook. Cook agreed to a confession of judgment and assignment of its rights against Western Heritage, who defended Cook under a reservation of rights. Western Heritage filed an action for declaratory judgment.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Erasing Any Doubt: Arizona FED Actions Do Not Accrue Until Formal Demand for Possession is Tendered
July 13, 2017 —
Bob Henry - Snell & Wilmer Real Estate Litigation BlogClearing up any lingering confusion, in Carrington Mortgage Services, LLC v. Woods, 767 Ariz. Adv. Rep. 4 (June 22, 2017), the Arizona Court of Appeals confirmed that residential forcible entry and detainer actions in Arizona accrue for statute of limitations purposes when a party entitled to possession makes a formal demand for return of possession not when the party could have made a demand for return of possession.
In Carrington, the borrowers (the Woodses) remained in property that they had acquired in 2008 but then lost to foreclosure several years later. The original lender obtained title to the property at a trustee’s sale on February 16, 2010, but did not take any action to remove the Woodses at that time. Title to the property was then transferred through a series of transactions over the next six years. Ultimately, Carrington acquired the title and, in 2016, sent a formal “Notice to Vacate” the premises to the Woodses. After the Woodses failed to timely vacate pursuant to the demand, Carrington initiated an FED action to evict them from the property.
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Bob Henry, Snell & WilmerMr. Henry may be contacted at
bhenry@swlaw.com
The Credibility of Your Expert (Including Your Delay Expert) Matters in Construction Disputes
October 03, 2022 —
David Adelstein - Florida Construction Legal UpdatesHere is a quote from a judge in an order after the bench trial of a complex construction dispute between a prime contractor and subcontractor on a federal project:
The evidence received in this case demonstrates the dynamic nature of complicated construction projects. At every step, the details matter, and coordination and cooperation among the companies tasked with performing the job is essential. Thankfully, as even this case shows, most disagreements that arise as projects evolve are handled during construction, far away from a courthouse, by the professionals who know best how to achieve the ultimate goal of a completed project.
U.S. f/u/b/o McKenney’s, Inc. v. Leebcor Services, LLC, 2022 WL 3549980, *1 (E.D. Va. 2022).
This is a true statement. A statement that parties should remember as they navigate the nuances of a complicated construction project and dispute.
The facts of the case, however, would hardly be construed as a win for either party. Something else for parties to consider as they navigate the nuances of a complicated construction project and dispute.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Five Haight Attorneys Selected for Best Lawyers in America© 2021
September 07, 2020 —
Haight Brown & Bonesteel LLPFive Haight Brown & Bonesteel LLP attorneys were selected for Best Lawyers in America© 2021. Congratulations to William Baumgaertner, Bruce Cleeland, Peter Dubrawski, Michael Leahy and Denis Moriarty.
Since it was first published in 1983, Best Lawyers® has become universally regarded as the definitive guide to legal excellence. Best Lawyers lists are compiled based on an exhaustive peer-review evaluation. Almost 94,000 industry leading lawyers are eligible to vote (from around the world), and Best Lawyers has received over 11 million evaluations on the legal abilities of other lawyers based on their specific practice areas around the world. Lawyers are not required or allowed to pay a fee to be listed; therefore inclusion in Best Lawyers is considered a singular honor. Corporate Counsel magazine has called Best Lawyers “the most respected referral list of attorneys in practice.”
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Haight Brown & Bonesteel LLP