Superintendent’s On-Site Supervision Compensable as Labor Under Miller Act
March 13, 2023 —
David Adelstein - Florida Construction Legal UpdatesA recent Miller Act payment bond decision out of the District of Columbia Circuit Court of Appeals, U.S. f/u/b/o Civil Construction, LLC v. Hirani Engineering & Land Surveying, PC, 58 F.4th 1250 (D.C. Circ. 2023), dealt with the issue of whether a subcontractor’s superintendent constitutes recoverable “labor” within the meaning of the Miller Act and compensable as a cost under the Miller Act that typically views labor as on-site physical labor.
The issue is that the Miller Act covers “[e]very person that has furnished labor or material in carrying out work provided for in a contract.” Civil Construction, supra, at 1253 quoting 40 U.S.C. s. 3133(b)(1). The Miller Act does not define labor. The subcontractor claimed labor includes actual superintending at the job site. The surety disagreed that a superintendent’s presence on a job site constitutes labor as the superintendent has to actually perform physical labor on the job site to constitute compensable labor under the Miller Act.
The subcontractor argued its subcontract and the government’s quality control standards required detailed daily reports that verified manpower, equipment, and work performed at the job site. It further claimed its superintendent had to continuously supervise and inspect construction activities on-site: “[the] superintendent had to be on-site to account for, among other things, hours worked by crew members, usage and standby hours for each piece of equipment, materials delivered, weather throughout the day, and all work performed. These on-site responsibilities reflected the government’s quality control standards, under which the superintendent as ‘the most senior site manager at the project, is responsible for the overall construction activities at the site…includ[ing] all quality, workmanship, and production of crews and equipment.” Civil Construction, supra, at 1253-54.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Massachusetts Supreme Judicial Court Strikes a Deathblow to Substantial Factor Causation in Most Cases; Is Asbestos Litigation Next?
March 22, 2021 —
Christian J. Singewald, Rochelle Gumapac & Timothy J. Keough - White and Williams LLPIn Doull v. Foster, the Massachusetts Supreme Judicial Court (SJC) addressed the proper causation standard in a medical malpractice case. In reaching this issue, the SJC reached far beyond the medical malpractice case before it. The SJC concluded that the substantial factor test for causation, which had been regularly employed in the Commonwealth for decades, was “unnecessarily confusing.” In doing so, the SJC effectively ended the use of the substantial factor test in all negligence cases going forward, except in toxic tort litigation. However, the SJC openly questioned its usefulness in toxic tort litigation and all but welcomed a direct challenge to its use there.
Reprinted courtesy of
Christian J. Singewald, White and Williams LLP,
Rochelle Gumapac, White and Williams LLP and
Timothy J. Keough, White and Williams LLP
Mr. Singewald may be contacted at singewaldc@whiteandwilliams.com
Ms. Gumapac may be contacted at gumapacr@whiteandwilliams.com
Mr. Keough may be contacted at keought@whiteandwilliams.com
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Philadelphia Court Rejects Expert Methodology for Detecting Asbestos
October 11, 2017 —
Christian Singewald, Wesley Payne & Jonathan Woy - White and Williams LLPLawsuits against talcum powder manufacturers have recently made headlines for the multimillion dollar verdicts returned in favor of plaintiffs with ovarian cancer. However, lawsuits brought by individuals with mesothelioma who did not work in occupations traditionally associated with asbestos exposure represent another potential liability for talcum powder manufacturers and retailers. In such cases, expert testimony linking mesothelioma to trace amounts of asbestos in talcum powder should be carefully scrutinized.
Reprinted courtesy of White and Williams LLP attorneys
Christian Singewald,
Wesley Payne and
Jonathan Woy
Mr. Singewald may be contacted at singewaldc@whiteandwilliams.com
Mr. Payne may be contacted at paynew@whiteandwilliams.com
Mr. Woy may be contacted at woyj@whiteandwilliams.com
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What is a Subordination Agreement?
May 06, 2019 —
Bremer Whyte Brown & O'Meara LLPPut simply, a subordination agreement is a legal agreement which establishes one debt as ranking behind another debt in the priority for collecting repayment from a debtor. It is an arrangement that alters the lien position. Without a subordination clause, loans take chronological priority which means that a deed of trust recorded first will be considered senior to all deeds of trusts recorded after. As such, the oldest loan becomes the primary loan, with first call on any proceeds from a sale of a property. However, a subordination agreement acknowledges that one party’s claim or interest is inferior to that of another party in the event that the borrowing entity liquidates its assets. Further, shareholders are subordinate to all creditors.
The junior debt is referred to as a “subordinated debt”, and the debt which has a higher claim to any assets is the senior debt. Often, the borrower does not have enough funds to pay all debts, and lower priority debts may receive little or no repayment. For example, if a business has $400,000 in senior debt, $100,000 in subordinated debt, and a total asset value of $420,000, upon liquidation of the company, only the senior debtholder will be paid in full. The remaining $20,000 will be distributed among the subordinated debtholders. Subordinated debts are, therefore, riskier and lenders will require a higher interest rate as compensation.
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Bremer Whyte Brown & O'Meara LLP
Agrihoods: The Best of Both Worlds
July 23, 2014 —
Beverley BevenFlorez-CDJ STAFFSmithsonian Magazine reported on a new U.S. trend of blending farms and housing developments: The concept is called Development Supported Agriculture (DSA), or more commonly known as “Agrihoods.” In a DSA, “consumers pledge money or resources to support a farm operation, and in turn, receive a share of what it produces, but take the concept one step further by integrating the farm within residential developments.” Residents receive similar perks of being a part of a home owner association such as supported pools, tennis courts, and playgrounds through their contribution to the farm.
The first DSA, Prairie Crossing, was built in Grayslake, Illinois to preserve land while adding about 350 residential homes. Willowsford, a new DSA being built in Ashburn Virginia, will have over 2,000 homes.
Willowsford’s developers have preserved 2,000 acres, with 300 acres of farmland. The development will be broken into four villages, and each will have its own farm.
Part of the popularity of DSAs is that they may “require less of an investment than other green space communities—for instance, communities planned around golf courses,” according to Smithsonian Magazine. “What does it cost to leave the open space alone in the first place? Almost nothing,” said Ed McMahon, the Charles E. Fraser chair on sustainable development and environmental policy at the Urban Land Institute, as quoted by Smithsonian Magazine. “A light bulb went off in the mind of savvy developers who said, ‘Jeez, I can build a golf course development without the golf course.’ So that led to designing communities around other green-space amenities such as a farm.”
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Gene Witkin Celebrates First Anniversary as Member of Ross Hart’s Mediation Team
May 23, 2022 —
AMCCLOS ANGELES, California, May 18, 2022 – With a near perfect record of resolving cases, Gene is particularly passionate about helping parties get closure and minimize the significant costs of civil discovery and trial. He attributes the high success rate to empathy for all sides from his diverse prior experience representing both plaintiffs and defendants in civil litigation, as well as his extensive past experience as insurance coverage counsel for both insureds and insurers.
In recent months, two cases in particular were at an impasse due to insurance issues. The parties were able to bridge the gap and resolve the disputes, with mediator help on subtle coverage issues in one case (working through technical policy provisions together) and a creative settlement structure in the other (involving allocation of payments under the insurance policy). Gene also credits the successful resolutions in part to pre-mediation calls with the parties to better define the obstacles to resolution.
Gene, along with Ross Hart and several AMCC neutrals were thrilled to see many of their colleagues and construction defect stakeholders earlier this month at the West Coast Casualty seminar, which certainly heralded a successful return to in person events.
For more information or to schedule a mediation, please contact case administrator Stephanie Felton at admin@amccenter.com.
About AMCC
For more than 30 years the principals of AMCC have been serving the construction, real estate and insurance industries as a full service ADR firm. In addition to administering multiple terms of the CSLB contract for the state, AMCC is the recognized leader in California for administering insurance appraisals under Insurance Code 2071, as well as numerous other related ADR services such as partnering and dispute review boards. For more information please visit www.amccenter.com.
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Irvine Partner Cinnamon J. Carr and Associate Brittney H. Aquino Prevail on Summary Judgment
June 17, 2024 —
Linda Carter - Kahana FeldCongratulations to Irvine Partner Cinnamon J. Carr and Associate Brittney H. Aquino for Prevailing on a Motion for Summary Judgment!
Irvine Partner Cinnamon J. Carr and Associate Brittney H. Aquino prevail on summary judgment in a slip and fall case venued in Riverside County!
Plaintiff filed a lawsuit alleging negligence against Kahana Feld’s client, a grocery store with over 50 stores throughout Southern California. Prior to Plaintiff’s fall, security cameras captured footage of a third-party customer picking up a case of water bottles near the entrance of the store. The customer tilted the case and water streamed to the floor. The customer then returned the leaky case to the pallet, picked up another case of water, and walked away. Approximately a minute and 10 seconds later, Plaintiff walked through the area, slipping on the spilled water.
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Linda Carter, Kahana FeldMs. Carter may be contacted at
lcarter@kahanafeld.com
Anti-Assignment Provision Unenforceable in Kentucky
December 20, 2012 —
TRED EYERLY, INSURANCE LAW HAWAIIOn a certified question from the Federal District Court, the Supreme Court of Kentucky decided that an anti-assignment provision in a policy is unenforceable.
Wehr Constructors v. Paducah Div. Assur. Co. of Am., 2012 Ky. LEXIS 183 (Ky. Oct. 25, 2012).
Before building an addition to its hospital, Murray Calloway County Hospital purchased a builder's risk policy from Assurance Company of America.The policy provided, "Your rights and duties under this policy may not be transferred without Assurance's written consent . . . ." The Hospital contracted with Wehr Constructors to install concrete subsurfaces and vinyl floors in order to expand the hospital. After installation, a portion of the floors and subsurface work was damaged. The Hospital submitted a claim to Assurance for $75,000, but the claim was denied.
Wehr sued the Hospital to recover money for its work on the construction project. In settling the case, the Hospital assigned to Wehr any claim or rights the Hospital had against Assurance.
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Tred R. Eyerly, Insurance Law Hawaii.Mr. Eyerly can be contacted at
te@hawaiilawyer.com