Implications for Industry as Supreme Court Curbs EPA's Authority
August 15, 2022 —
Pam McFarland & Jeff Yoders - Engineering News-RecordThe U.S. Supreme Court has limited the ability of the U.S. Environmental Protection Agency to regulate power plant greenhouse gas emissions, and though the court’s opinion referred to a fairly narrow provision within the Clean Air Act, the ruling potentially places broad restrictions on the ability of federal agencies to enact regulations to address the climate crisis, according to several sources.
Reprinted courtesy of
Pam McFarland, Engineering News-Record and
Jeff Yoders, Engineering News-Record
Ms. McFarland may be contacted at mcfarlandp@enr.com
Mr. Yoders may be contacted at yodersj@enr.com
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Performance Bonds: Follow the Letter of the Bond and Keep The Surety Informed
December 06, 2021 —
Bill Shaughnessy, Jones Walker, LLP - ConsensusDocsConstruction surety bonds are risk management tools utilized by parties on large construction projects. However, bonds are not insurance, and a surety is not an “insurer” of the project. Different from insurance, a surety’s obligation to act typically arises if the principal fails to perform in accordance with the construction contract, and if the claimant satisfies the conditions precedent to enforcing the bond.[1]
This article focuses exclusively on performance bonds on private projects,[2] and highlights practical considerations and surety defenses to enforcement of the performance bond.[3] Spoiler alert – the party making a claim on the bond must strictly adhere to the conditions precedent set forth in the bond throughout the construction project and when calling upon the surety to take action, otherwise the performance bond may be rendered void and unenforceable.
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Bill Shaughnessy, Jones Walker, LLPMr. Shaughnessy may be contacted at
bshaughnessy@joneswalker.com
Federal Court Strikes Down 'Persuader' Rule
November 23, 2016 —
Pam Hunter McFarland – Engineering News-RecordIn a victory for construction industry groups, a federal court has permanently blocked a U.S. Dept. of Labor rule requiring attorneys and other outside groups to disclose publicly that they provide advice to employers on how to comply with federal labor laws.
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Pam Hunter McFarland, Engineering News-RecordMs. McFarland may be contacted at
mcfarlandp@enr.com
New York Court Holds That the “Lesser of Two” Doctrine Limits Recoverable Damages in Subrogation Actions
September 23, 2019 —
Michael L. DeBona - The Subrogation StrategistIn New York Cent. Mut. Ins. Co. v. TopBuild Home Servs., Inc., 2019 U.S. Dist. LEXIS 69634 (April 24, 2019), the United States District Court for the Eastern District of New York recently held that the “lesser of two” doctrine applies to subrogation actions, thereby limiting property damages to the lesser of repair costs or the property’s diminution in value.
In New York Cent. Mut. Ins. Co., New York Central Mutual Insurance Company’s (New York Central) insureds, Paul and Karen Mazzola, suffered a fire to their home. After the fire, New York Central paid the Mazzolas $708,465.74 to repair the property. New York Central brought a subrogation action against TopBuild Home Services, Inc. (TopBuild), alleging that the fire was caused by negligent work performed by TopBuild. New York Central sought to recover the repair costs it paid to the Mazzolas. TopBuild conceded liability but disputed the proper measure of damages.
TopBuild filed a motion for partial summary judgment, arguing that under the “lesser of two” doctrine, New York Central could recover only the lesser of the costs to repair the property or the property’s diminution in value. TopBuild, therefore, asserted that New York Central was not entitled to the repair costs of $708,465.74 but, rather, could recover only the property’s decline in value following the fire – approximately $250,000.[1] In response, New York Central argued that New York’s “lesser of two” doctrine does not apply to subrogation actions because an insurance company cannot mitigate the payment it makes to its insured.
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Michael L. DeBona, White and Williams LLPMr. DeBona may be contacted at
debonam@whiteandwilliams.com
New York Court Rejects Owner’s Bid for Additional Insured Coverage
September 06, 2021 —
Eric D. Suben - Traub LiebermanTenders for additional insured coverage in construction accidents are frequently litigated in New York courts. Although the past few years have seen changes in the law regarding the causal nexus between the named insured’s work and coverage for the purported additional insured, courts often find there is at least a duty to defend the additional insured where there are allegations of the employer/subcontractor’s presence at the site.
An exception is the recent decision in Gemini Insurance Company v. Certain Underwriters at Lloyd’s, London, Index No. 652669/20 in the Supreme Court of the State of New York, County of New York (Lebovits, J.). In that case, Gemini insured the owner and general contractor of a construction project, and Lloyd’s insured the injured claimant’s employer under a policy endorsed to provide additional insured coverage to entities who “have agreed in writing in a contract or agreement” with the named insured that they must be “added as additional insured.” Although the court found that the contracts here satisfied this requirement for additional insured coverage, the court’s analysis did not end there.
Noting that even where such contract exists, the Lloyd’s policy would not provide additional insured coverage “in all circumstances” (emphasis in original), the court next considered whether the underlying injury was “caused in whole or in part by: 1. [The named insured’s] acts or omissions, or 2. The acts or omissions of those acting on [the named insured’s] behalf,” as required under the endorsement’s wording.
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Eric D. Suben, Traub LiebermanMr. Suben may be contacted at
esuben@tlsslaw.com
Florida’s Statute of Limitations / Repose for Actions Founded on Construction Improvement Modified
April 25, 2023 —
David Adelstein - Florida Construction Legal UpdatesOn April 13, 2023, Florida’s all-important four-year statute of limitations–Florida Statute s. 95.11(3)(c)–relating to actions founded on construction of an improvement of real property was modified. This is a key statute of limitations for ALL construction practitioners because it also includes the statute of repose for latent construction defects.
At the bottom of this posting is the current version fo s. 95.11(3)(c) with the underlined section being recent additions. (They hyperlink above will identify the deletions and additions.) Important things to note:
- Statute of Repose. The statute of repose has been reduced from 10 years to 7 years. There is now an objective date for when the repose period commences: “within 7 years after the date the authority having jurisdiction issues a temporary certificate of occupancy, a certificate of occupancy, or a certificate of completion, or the date of abandonment of construction if not completed, whichever date is earliest.”
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
17 Snell & Wilmer Attorneys Ranked In The 2019 Legal Elite Edition Of Nevada Business Magazine
July 01, 2019 —
Snell & WilmerSnell & Wilmer is pleased to announce that 17 of its attorneys in the Nevada offices have been ranked in Nevada Business Magazine’s 2019 Legal Elite edition, an annual list that highlights Nevada’s top attorneys as chosen by their peers. This year marks Legal Elite’s 12th year of presenting the Silver State’s top attorneys.
Polling for Legal Elite 2019 began at the end of February and nearly 5,000 nominations were submitted by licensed attorneys in Nevada, according to Nevada Business Magazine. Each submission then went through an extensive verification process resulting in the top attorneys in the state, chosen by their peers. The Legal Elite list includes only the top 3 percent of attorneys in the state broken down by location.
In addition, Legal Elite includes special lists ranking Nevada’s best “Up and Coming” and best government attorneys. Each nominee went through several levels of verification and scrutiny before being approved to appear on this list. Upon the nomination process closing, each ballot was individually reviewed for eligibility and every voting attorney was verified with the State Bar of Nevada. More information on the scoring can be viewed here.
The following Snell & Wilmer attorneys have been named Legal Elite for 2019:
- Brian L. Blaylock, Associate
- Justin L. Carley, Partner
- John S. Delikanakis, Partner
- Kelly H. Dove, Partner
- Alex L. Fugazzi, Partner
- Charles E. Gianelloni, Associate
- Daniel S. Ivie, Associate
- Nathan G. Kanute, Partner
- Wayne O. Klomp, Associate
- Kade D. Miller, Associate
- William E. Peterson, Partner
- Jacey Prupas, Partner
- Mandy S. Shavinsky, Partner
The following Snell & Wilmer attorneys have been named Best Up and Coming for 2019:
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Snell & Wilmer
Preparing Your Business For Internal Transition
October 14, 2019 —
Stephen P. Katz, Esq. - ConsensusDocsWhen is it right to start thinking about succession planning and preparing a construction company for transition? Many would agree – in concept, at least – that serious thought regarding succession and transition planning should begin at a company’s inception and be revisited throughout its lifecycle, but as a practical matter, it is frequently not part of the mindset when growing a business. This article explores issues that construction company owners should consider in order to achieve smooth transition of ownership and control. We will address three critical questions:
- What happens to the business when an owner retires;
- In the event an owner(s) become disabled; and,
- Unplanned exit/owner pre-deceases her/his exit from the company
Owners who do not plan carefully for transition are often faced with the less than appealing option of liquidating their business for much less than its value, or by closing the business with no return upon that event. However, those who plan carefully can realize the value of their life’s work, pass the business to the next generation and see their legacy continue.
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Stephen P. Katz, Esq., Peckar & Abramson, P.C.Mr. Katz may be contacted at
skatz@pecklaw.com