California Court Broadly Interprets Insurance Policy’s “Liability Arising Out of” Language
December 20, 2017 —
Garret Murai - California Construction Law BlogIn McMillin Mgmt. Servs. v. Financial Pacific Ins. Co., Cal.Ct.App. (4th Dist.), Docket No. D069814 (filed 11/14/17), the California Court of Appeal held that the term “liability arising out of,” as used in an ongoing operations endorsement, does not require that the named insured’s liability arise while it is performing work on a construction project.
In the McMillin case, the general contractor and developer (McMillin) contracted with various subcontractors, including a concrete subcontractor and stucco subcontractor insured by Lexington Insurance Company. Both subcontractors performed their work at the project prior to the sale of the units.
The Lexington policies contained substantively identical additional insured endorsements that provided coverage to McMillin “for liability arising out of your [the named insured subcontractor’s] ongoing operations performed for [McMillin].” Several homeowners filed suit against McMillin, alleging that they had discovered various defective conditions arising out of the construction of their homes, including defects arising out of the work performed by Lexington’s insureds. Lexington argued that there was no potential for coverage in McMillin’s favor under the endorsements because there were no homeowners during the time that the subcontractors’ operations were performing work at the project (the homes closed escrow after the subcontractors had completed their work); thus, McMillin did not have any liability for property damage that took place while the subcontractors’ operations were ongoing.
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Garret Murai, Wendel Rose Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Plaza Construction Negotiating Pay Settlement for Florida Ritz-Carlton Renovation
August 31, 2020 —
Scott Van Voorhis - Engineering News-RecordLionstone Development, owner of the Ritz-Carlton hotel in Miami Beach's South Beach section, began a $90-million renovation in 2017 after damage by Hurricane Irma forced the property's closing. The company reopened the hotel this past January to considerable acclaim in the hospitality industry press.
Scott Van Voorhis, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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Federal Court of Appeals Signals an End to Project Labor Agreement Requirements Linked to Development Tax Credits
October 20, 2016 —
Gregory R. Begg & Aaron C. Schlesinger – Peckar & Abramson, P.C.What Action Should Owners, Developers and Contractors Take in Anticipation of Successful Challenges to PLA Requirements?
Recently, a federal court in New Jersey issued a decision which very well may invalidate all Project Labor Agreements (“PLA’s”) entered into as a condition to receipt of tax incentives for private development. Tax incentives utilized to promote private development are different, according to the court, than typical public works projects where PLA requirements have generally been held valid. Owners, developers, contractors and governmental entities must assess the consequences of this decision upon contracts already and to be awarded in the future where tax benefits may be linked to a PLA requirement.
In 1993, in what has become known as the Boston Harbor Case, the United States Supreme Court held that state and local governmental entities may condition the award of public works contracts on the contractor’s agreement to enter into PLA’s.
That decision has been followed nationwide since then to uphold the validity of various state and local law bidding conditions requiring successful bidders to negotiate and enter into project labor agreements as a condition to the award of public works contracts. The rationale is that when the government, like any other private party, is participating in an economic market, it may exercise its discretion in setting terms and conditions it believes best suit its interests in the efficient procurement of goods and services in that market. Therefore, a PLA requirement by a governmental entity engaged in market activity is no more or less valid than a PLA requirement on a purely private project.
Reprinted courtesy of
Gregory R. Begg, Peckar & Abramson, P.C. Aaron C. Schlesinger, Peckar & Abramson, P.C.
Mr. Begg may be contacted at gbegg@pecklaw.com
Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com
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Nine Firm Members Recognized as Super Lawyers or Rising Stars
June 29, 2017 —
Ceslie Blass - Ahlers & Cressman PLLCWhile we avoid using this blog as a platform for self-promotion, we recently received share-worthy distinctions, which both flatter and humble us. We invite you, our loyal readers, to celebrate in our success, which in great measure is due to you.
John P. Ahlers, one of the firm's founding partners, was ranked third overall across all practicing industries in Washington 2017 Super Lawyers and founding partner Paul R. Cressman, Jr. was ranked in the Top 100. The following other firm members were also recognized as Super Lawyers: Founding partner Scott R. Sleight, Bruce A. Cohen (Partner), Brett M. Hill (Partner), and Lawrence Glosser (Partner). In addition, Ryan W. Sternoff (Partner), James R. Lynch (Partner), Tymon Berger (Associate), and Lindsay (Taft) Watkins (Associate) were selected as Super Lawyers Rising Stars. Over half of the firm's lawyers received Super Lawyers distinction.
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Ceslie Blass, Ahlers & Cressman PLLC
OSHA Reinforces COVID Guidelines for the Workplace
March 08, 2021 —
Joseph P. Paranac Jr. & Robert M. Pettigrew - White and Williams LLPOn January 29, 2021, the Occupational Safety and Health Administration (OSHA) updated its existing guidelines concerning coronavirus protection measures for the workplace. Focusing on the implementation of workplace protection programs, OSHA’s updated advisory guidance seeks to reinforce the benefits of implementing workplace policies along with the critical role employees have in combatting workplace spread. These guidelines are “intended to inform employers and workers in most workplace settings outside of healthcare to help them identify risks of being exposed to and/or contracting COVID-19 at work and to help them determine appropriate control measures to implement.”
OSHA maintains that the implementation of a strong coronavirus protection program is the most effective way to combat virus spread in the workplace. OSHA has identified 16 categories or elements that an effective coronavirus protection program should address, which include appointing a workplace coordinator and conducting a workplace specific hazard assessment. This assessment should begin by identifying risks in the workplace and developing control measures to mitigate them. The guidance stresses that workers are often the most valuable source of information relating to conditions that contribute to the risk of spread.
Reprinted courtesy of
Joseph P. Paranac Jr., White and Williams LLP and
Robert M. Pettigrew, White and Williams LLP
Mr. Paranac may be contacted at paranacj@whiteandwilliams.com
Mr. Pettigrew may be contacted at pettigrewr@whiteandwilliams.com
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Issuing Judgment After Confirmation of Appraisal Award Overturned
May 01, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe Florida Court of Appeal reversed and remanded the trial court's judgment in favor of the insured because after confirming the appraisal award, judgment was issued before the insurer could offer policy defenses. State Farm Florida Ins. Co. v. Hochreiter, 2023 Fla. App. LEXIS 743 (Fla. Ct. App. Feb. 3, 2023.
After a dispute arose over the scope and amount of damage suffered by the insureds' roof, they sued State Farm. State Farm responded to the complaint by demanding an appraisal, a stay of litigation, and an extension of time to respond to the complaint.
The trial court granted the demand and retained jurisdiction regarding post-appraisal matters once the appraisal was complete. The court further ordered State Farm to respond to the complaint within twenty days of the conclusion of the appraisal "if any issues remain." The order did not specify whether the issues that remained had to relate to the initial appraisal stage of the litigation or the subsequent stage during which the trial court had jurisdiction to adjudicate disputed issues related to coverage.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Commercial Real Estate in 2023: A Snapshot
January 17, 2023 —
Adam J. Weaver - Gravel2Gavel Construction & Real Estate Law BlogAs we close out the last remaining weeks of 2022, all eyes look ahead to 2023. Below is a quick snapshot highlighting three trends and predictions that may continue to shape the commercial real estate landscape in 2023.
- Office space and the digital economy present attractive investment opportunities and potential. Even with all of the chatter about office vacancies during the last three years, according to Moody’s Analytics, “it’s important to note that none of the regions across the U.S. have seen office vacancy rates dip below their pre-pandemic Q4 2019 levels.” This might be due to creative and reimagined office spaces as the return to office continues. The hybrid work format and flexibility in spaces will continue in 2023.
- Data analytics and Proptech will continue to play a larger role, allowing property owners and tenants to collaborate to provide more efficiency, whether to achieve sustainability goals or leverage technology like immersive experiences to entice tenants to new spaces. An increase in demand for technology to solve issues will most likely continue in commercial real estate.
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Adam J. Weaver, PillsburyMr. Weaver may be contacted at
adam.weaver@pillsburylaw.com
Ahlers Cressman & Sleight PLLC Recognized Among The Top 50 Construction Law Firms by Construction Executive
June 20, 2022 —
Scott R. Sleight - Ahlers Cressman & Sleight PLLCACS is proud to announce it has once again been ranked among The Top 50 Construction Law FirmsTM in the Construction Executive 2022 rankings. ACS is the highest ranked law firm in the US practicing out of a single office.
ACS specializes in delivering the highest quality construction law services. ACS prides itself on providing excellent services to clients in matters relating to contract documents, construction dispute resolution, and government contracts. If resolution efforts fail, ACS has the experience and ability to represent clients in high-stakes litigation. Since 2018, ACS has obtained three significant jury verdicts in favor of its general contractor clients, including awards of prevailing party attorneys’ fees and costs and expenses.
Founded in 2007, ACS’ vast knowledge and industry experience led our lawyers to hold many leadership positions. Three of our lawyers are past chairs of the Washington State Bar Association’s Construction Law Section, five of our lawyers have served as the Chair of the Associated General Contractors of Washington’s Legal Affairs Committee, and many of our lawyers are recognized as Super Lawyers and Rising Stars in Super Lawyers Magazine/Thomson Reuters. We have represented construction firms before the Supreme Court and the Court of Appeals in numerous precedent-setting cases, and have testified before the Legislature. ACS’ commitment to the construction industry shows in our results.
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Scott R. Sleight, Ahlers Cressman & Sleight PLLCMr. Sleight may be contacted at
scott.sleight@acslawyers.com