Revisiting Statutory Offers to Compromise
August 28, 2023 —
Kathryne Baldwin - Wilke FleuryThe fourth appellate district published an opinion earlier this year in Smalley v. Subaru of America, Inc. (2022) 87 Cal.App.5th 450 that serves as an excellent refresher on requirements of the “998 Offer,” or a statutory offer to compromise pursuant to Code of Civil Procedure (“CCP”) §998.
In Smalley, set in the context of a Lemon Law action, Defendant Subaru made a 998 Offer for $35,001.00, together with attorneys’ fees and costs totaling either $10,000.00 or costs and reasonably incurred attorneys’ fees, in an amount to be determined by the Court. (Smalley, supra, 87 Cal.App.5th at 454.) Plaintiff objected that the offer was not reasonable and the case proceeded to trial. At trial, a jury found in favor of Plaintiff and awarded him a total judgment award of $27,555.74 – far short of the $35,001.00 offer. The trial court found Plaintiff had failed to beat the 998 at trial and that Subaru’s earlier 998 offer was reasonable. Plaintiff appealed the post-judgment order awarding Plaintiff pre-offer costs and Defendant post-offer costs on the grounds that the 998 was not reasonable in that it did not specify whether Plaintiff would be deemed the prevailing party for purposes of a motion for attorneys’ fees. The fourth district affirmed the trial court’s order and engaged in a helpful review of 998 requirements.
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Kathryne Baldwin, Wilke FleuryMs. Baldwin may be contacted at
kbaldwin@wilkefleury.com
Athletic Trainers Help Workers Get Back to the Jobsite and Stay Healthy After Injury
August 12, 2024 —
Bryan Lockhart - Construction ExecutiveThere are a number of factors on an active jobsite that can lead to workplace injuries. Heavy machinery, fast-moving equipment, material handling, loud noises and more can create safety hazards and make it easy to lose focus or become distracted. Additionally, the movements workers have to do in their roles—such as lifting or pushing objects or crouching low to the ground for extended periods—can add strain to the body if not done correctly.
The goal is always to minimize the risk of injury, and yet, incidents still occur. According to 2020 Bureau of Labor Statistics data, slips, trips and falls are the most common injuries, accounting for 18% of non-fatal work injuries resulting in days away from work. When workers are injured, it can lead to downtime, lost productivity on the site and workers’ compensation claims.
Employers and site leaders can take various approaches to help workers return to the jobsite safely and effectively and keep them healthy once they return. Introducing an onsite clinic and athletic trainers can help prevent injuries, improve worker health, get people back to work effectively and keep them healthy in the long run. Here are three ways athletic trainers help workers get back to the job and improve their overall health.
Reprinted courtesy of
Bryan Lockhart, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Contractor Definition Central to Coverage Dispute
July 22, 2024 —
Stacy R. Goldscher & Tracy M. Lewis - Wood Smith Henning & BermanHow do you define the term "contractor?" In the case of California Specialty Insulation Inc. v. Allied World Surplus Lines Insurance Company, No. B324805 (2024), the court ultimately honored the reasonable expectations of the insured and ordered that the insurer defend and indemnify in an underlying suit stemming from the policy. This case involves a commercial general liability insurance policy issued by Allied World Surplus Lines Insurance Company (Allied) to California Specialty Insulation, Inc. (CSI). The central issue is whether Allied World is obligated to defend and indemnify CSI against a negligence claim stemming from a construction site accident. The dispute hinges on the interpretation of a policy exclusion for bodily injury to employees of any "contractor," a term not defined in the policy.
Factual Background
In 2017 Air Control Systems. Inc. (Air Control) was contracted to perform improvement work at a Los Angeles building and subsequently hired CSI to install duct insulation. In 2019, Jason Standiford, and Air Control employee, filed a negligence lawsuit against CSI, alleging injuries from a 2017 incident where a CSI employee allegedly drove a scissor lift into a ladder Standiford was on, causing him to fall. CSI requested Allied World to defend it in the Standiford lawsuit. Initially, Allied World accepted the defense, but later withdrew, citing the Contractor Exclusion in the policy. CSI filed for declaratory relief, leading to cross-motions for summary judgment. The trial court ruled in favor of CSI, finding the term contractor ambiguous and construing it in CSI's favor. Allied World appealed the decision.
Reprinted courtesy of
Stacy R. Goldscher, Wood Smith Henning & Berman and
Tracy M. Lewis, Wood Smith Henning & Berman
Ms. Goldscher may be contacted at sgoldscher@wshblaw.com
Ms. Lewis may be contacted at tlewis@wshblaw.com
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Musk Backs Off Plan for Tunnel in Tony Los Angelenos' Backyard
December 19, 2018 —
Sarah McBride & Edvard Pettersson - BloombergElon Musk’s futuristic tunneling company, Boring Co., is no longer embroiled in a lawsuit with the residents of West Los Angeles.
A May lawsuit aimed at stopping the Boring Co.’s proposed tunnel under Sepulveda Boulevard has been settled, according to a notice filed at the Superior Court of Los Angeles County. Neighbors in the Brentwood and Sunset Boulevard areas, near the proposed tunnel, had sued the City of Los Angeles over the Boring Co.’s plans to build a test tunnel without going through an environmental review process, as recommended in April by the city’s public works committee.
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Sarah McBride & Edvard Pettersson, Bloomberg
NYC Rail Tunnel Cost Jumps and Construction Start Pushed Back
October 10, 2022 —
Elise Young - BloombergThe cost of the New York City-area Gateway rail tunnel project climbed to $16.1 billion and the expected start of construction was pushed to 2024, its overseer said Wednesday. The plan is to seek more federal aid to cover the rising cost.
The new estimate, with finance charges, was 14% higher than last year’s projection to build a passenger rail tunnel between New York and New Jersey, and rehabilitate Amtrak and New Jersey Transit’s only existing link. The start of major construction, once proposed for mid-2023, now is expected in mid-2024, according to a statement from the Gateway Development Commission.
The tunnel is anticipated to be in service by 2035.
Half the cost was expected to be covered by the federal government, and the rest by New York and New Jersey, with contributions from Amtrak and the Port Authority of New York and New Jersey. The commission now will seek additional US funding under the 2021 Infrastructure Investment and Jobs Act. It expects a full funding grant agreement in early 2024, with construction starting later that year.
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Elise Young, Bloomberg
Traub Lieberman Elects New Partners for 2020
February 24, 2020 —
Traub LiebermanTraub Lieberman is pleased to announce that
Adam P. Joffe and
Heather Fleming have been elected to the partnership effective January 1, 2020.
“Heather and Adam are terrific additions to our partnership and team. They are both effective, experienced and driven lawyers who work steadfastly on behalf of clients to meet their needs,” said Michael Knippen, firm chair.
Adam joined the firm in 2019 and is based in the firm’s Chicago office, which now includes 10 partners. He counsels and represents insurers in complex first-party and third-party coverage litigation. Adam also advises insurers on their coverage obligations under primary and excess commercial lines policies, including commercial general liability, employment practices liability, professional liability, and commercial property policies.
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Traub Lieberman
Connecticutt Class Action on Collapse Claims Faces Motion to Dismiss
January 02, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court dismissed some insurers from a class action suit alleging failure to provide coverage for collapse claims. Halloran v. Harleysville Preferred Ins. Co., 2018 U.S. Dist. LEXIS 179807 (D. Conn. Oct. 19, 2018).
A class of homeowners brought suit in 2016 against their homeowners insurance companies ("defendants") for failure to cover collapse claims. Plaintiffs alleged they bought their homes between 1984 and 2015. Each of the homes had basement walls that were "crumbling and cracking due to the oxidation of certain minerals contained in the concrete." As a result of the deteriorating concrete, plaintiffs claimed that their basement walls were in a state of collapse.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Corrective Action Protest Grounds for GSA Schedule Federal Construction Contractors
September 09, 2024 —
Marissa L. Downs - The Dispute ResolverA contract awarded, protested, terminated, appealed, then reinstated. It’s no secret that federal construction procurements are plagued with uncertainty. From delays, constructive suspensions, compromised supply chains, the litigation-laden critical path method, and the mandate for all construction materials used in federally funded projects for infrastructure to be produced in the United States under the Build America, Buy America Act (BABAA) (to name just a few traditional and emerging favorites), just one of these issues could fill the rest of anyone’s month with substantive research. To add one more, which is entirely unique to bid protests, federal contractors–including construction contractors–listed in a General Service Administration (GSA) Schedule may have new grounds to have a contract award reinstated that was terminated by a federal agency pending a GAO decision.
GAO Protest
An initial GAO protest filed by Deloitte & Touche LLP (Deloitte) argued that the National Geo-Spatial Intelligence Agency (Agency) wrongfully made an award to Kearney & Company, P.C. (Kearney) when the Agency: (1) improperly evaluated quotes; and (2) failed to conduct a proper best-value tradeoff analysis. At issue was a competed task order with Kearney under a GSA FSS multiple-award contract. Before the GAO issued an opinion, however, it held an unrecorded predictive-outcome conference with Deloitte and Kearney where the only mutual consensus was the likely ineligibility of all offerors for the relevant award. The Agency subsequently elected to take corrective action, terminating Kearney’s contract award for convenience, amending the solicitation to avoid issues (including undisputed issues) addressed in the GAO protest. After the Agency adopted their corrective action, the GAO protest was dismissed as academic and moot.
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Marissa L. Downs, Laurie & Brennan, LLPMs. Downs may be contacted at
mdowns@lauriebrennan.com