Commentary: How to Limit COVID-19 Related Legal Claims
January 11, 2021 —
Joshua Lindsay, Crowell & Moring & Meagan Bachman, Crowell & Moring - ENRWe are 10 months into the global pandemic. Given the magnitude of additional costs and upended expectations and risk-allocation, we foresee a wave of disputes coming soon. Whether it is large or small depends heavily on how well project team members handle the COVID-19 project impacts now.
Reprinted courtesy of
Joshua Lindsay, Crowell & Moring (ENR) and
Meagan Bachman, Crowell & Moring (ENR)
Ms. Bachman may be contacted at mbachman@crowell.com
Mr. Lindsay may be contacted at joshlindsay@crowell.com
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Hawaii Federal District Court Denies Brokers' MSJ on Duties Owed In Construction Defect Case
October 19, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court for the District of Hawaii denied the brokers' motion for summary judgment seeking dismissal from claims that they inadequately advised the insured of the law regarding construction defects in Hawaii. Am Auto. Ins. Co. v. Haw. Nut & Bolt, Inc., 2017 U.S. Dist. LEXIS 148571.
Safeway sued Hawaii Nut & Bolt (HNB) and others for construction defects in a newly constructed store. The underlying complaint alleged products liability claims against HNB as the distributor of the "VersaFlex Coating System." HSB had represented that the coating system was adequate for its intended use. The underlying complaint alleged failure of the VersaFlex Coating System in waterproofing the roof deck of the store. After the store opened, water leaks from the roof deck appeared. Safeway alleged they were caused by the cracks and failures in the waterproof membrane in the roof deck.
HNB notified its insurers of the claims. The insurers defended HNB during the litigation subject to reservation of rights letters.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Engineering Report Finds More Investigation Needed of Balconies at New Jersey Condo
March 20, 2023 —
Engineering News-RecordPress of Atlantic City
SEA ISLE CITY - An engineering report on the Spinnaker Condominiums' South Tower found that balconies directly beneath the one that collapsed last month, killing a worker, need further investigation before they are deemed safe for use.
Reprinted courtesy of
Engineering News-Record
ENR may be contacted at enr@enr.com
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Withholding Payment or Having Your Payment Withheld Due to Disputes on Other Projects: Know Your Rights to Offset
January 04, 2021 —
Christopher C. Broughton, Jones Walker LLP - ConsensusDocsIntroduction
The right to offset refers to the common sense ability to reduce or eliminate your payment obligations to a party who owes you money on another contract. With offsets, common law largely tracks common sense. The right of offset is recognized by statute and court decisions in many states as well as under federal law and the U.S. Bankruptcy Code. The right to offset can also be established in the contract or subcontract.
But like many things that may seem simple, the right to offset can easily become complex. This article provides an overview of the extent and limits of the right to offset varies from state to state and with federal government contracts about the extent and limits of the right of offset. Construction trust fund statutes add another layer of complications.
These variations may not be obvious or intuitive, but they have a tremendous impact on your right to get paid or your right to withhold payment. Because of the variations, you must always confirm the law applicable to your contract or subcontract, which may not be where the project or you are located.
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Christopher C. Broughton, Jones Walker LLPMr. Broughton may be contacted at
cbroughton@joneswalker.com
Update to Washington State Covid-19 Guidance
November 23, 2020 —
Brett M. Hill - Ahlers Cressman & Sleight PLLCYesterday, November 15, 2020, Governor Inslee announced modifications to the current COVID-19 restrictions in response to the current rise in cases across Washington State.
There are no additional restrictions on construction at this time. However, during the Governor’s press conference yesterday, he did indicate that positive cases were increasing on construction sites, and that they would be tracking the statistics over the next 2 – 3 weeks – to see if additional restrictions would be necessary for construction sites in the future. Additionally, the construction industry group is meeting with the Governor’s office today, November 16, 2020, and we will keep you informed of any changes as a result of that meeting.
Unless otherwise specifically noted, the modifications take effect at 12:01 a.m., Tuesday, November 17, 2020. All modifications to existing prohibitions set forth herein shall expire at 11:59 p.m., Monday, December 14, 2020, unless otherwise extended. If an activity is not listed below, currently existing guidance shall continue to apply. If current guidance is more restrictive than the below listed restrictions, the most restrictive guidance shall apply. These below modifications do not apply to education (including but not limited to K-12, higher education, trade and vocational schools), childcare, health care, and courts and judicial branch-related proceedings, all of which are exempt from the modifications and shall continue to follow current guidance. Terms used in this proclamation have the same definitions used in the Safe Start Washington Phased Reopening County-by-County Plan.
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Brett M. Hill, Ahlers Cressman Sleight PLLCMr. Hill may be contacted at
brett.hill@acslawyers.com
Candis Jones Named “On the Rise” by Daily Report's Georgia Law Awards
September 29, 2021 —
Candis Jones - Lewis Brisbois NewsroomAtlanta Partner Candis Jones was named a lawyer “On the Rise” by the Daily Report (part of Law.com). Ms. Jones is one of 20 attorneys from Georgia to receive this distinction as part of the publication's 2021 Georgia Law Awards.
The Daily Report’s “On the Rise” category recognizes outstanding attorneys under the age of 40 who have made an impression on their colleagues, their clients, and the larger legal community of Georgia. Winners are selected by the publication’s editorial staff.
Ms. Jones is a member of Lewis Brisbois' General Liability Practice and has extensive experience with insurance defense, premises liability, personal injury, and medical malpractice cases. Her clients include Fortune 500 companies, numerous insurance carriers, and a major metropolitan transit authority. Outside her legal practice, Ms. Jones is an active member of her legal community and was recently installed as President of the Gate City Bar Association, the oldest African-American bar association in the State of Georgia.
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Candis Jones, Lewis BrisboisMs. Jones may be contacted at
Candis.Jones@lewisbrisbois.com
Wisconsin Court of Appeals Re-affirms American Girl To Find Coverage for Damage Caused by Subcontractors
September 20, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe trial court's finding of no occurrence and no property damage due to faulty workmanship was reversed by the appellate court. No. 5 Walworth v. Engerman Contracting, Inc., 2021 Wis. App. LEXIS 401 (Wis. Ct. App, July 30, 2021).
Engerman was the general contractor on a construction project at a residence. Engerman was hired to build a poll complex. Engerman subcontracted the project to Downes Swimming Pool Co., Inc. Downes purchased shotcrete (sprayed concrete) from Otto Jacobs Company LLC for the swimming poll walls and base.
After completion, the pool immediately began leaking. An investigation determined that the shotcrete material was not installed correctly, contributing to cracking in the pool walls and the steel reinforcing bars were not sufficient to prevent cracks in the pool walls. The owner demolished the pool and constructed a new one. Thereafter, the owner sued Engerman, its insurers (General Casualty Company of Wisconsin and West Bend Mutual Insurance Company) and Downes and its insurer. Downes filed a third-party complaint against Jacobs and its insurer (Acuity Mutual Insurance Company) alleging Jacobs negligently provided inferior shotcrete to Downes.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Pacing in Construction Scheduling Disputes
September 14, 2017 —
Luke Mecklenburg - Snell & Wilmer Real Estate Litigation BlogOn a high level, construction delay litigation involves sorting out the impacts to the critical project path and determining which party is responsible for those impacts. One of the more difficult elements of this process is determining whether a delay would have occurred regardless of one party’s critical path impact due to a separate, independent impact to the critical path by the other party. For example, a contractor cannot collect delay damages for delays caused by the owner if the contractor itself was causing independent impacts that would have pushed off the completion date anyway.
However, the concept of “pacing” provides a potential defense for a party who is not on pace with the as-planned schedule for noncritical activities, even where those activities are still ongoing after the planned completion date. “Pacing delays” are a type of concurrent delay that occur when one party makes a conscious decision to decelerate or slow down the pace of noncritical activities to keep pace with the critical delays of another party. A more formal definition would be “deceleration of the work of the project, by one of the parties to a contract, due to a delay caused by the other party, so as to maintain steady progress with the revised overall project schedule.” Zack, Pacing Delays–The Practical Effect, Construction Specifier 47, 48 (Jan. 2000). A party to the construction process may decide to slow down its performance of noncritical activities to keep pace with the delayed progress. For example, contractors may adjust the pace of their work in light of delays in owner-furnished equipment, delays by other multiple prime contractors, delays in permits, limited access, or differing site conditions. Owners may slow down their response time to requests for information or submittals, or postpone the delivery of owner-furnished equipment or the processing of change orders. Id. at 48.
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Luke Mecklenburg, Snell & WilmerMr. Mecklenburg may be contacted at
lmecklenburg@swlaw.com