Owner Bankruptcy: What’s a Contractor to Do?
February 28, 2018 —
Troy R. Covington and Stephen M. Parham - Construction Executive MagazineBankruptcy of the owner or developer of a real estate construction project can be very unsettling to contractors. But a declaration of bankruptcy by the developer, in and of itself, does not constitute a breach of contract such that the contractor can stop working. Contract provisions providing that the contract is terminated if a party becomes insolvent or files for bankruptcy are generally unenforceable.
Partially-performed construction contracts are executory contracts, meaning that the obligations of the parties to the contract have not yet been fully performed. The Bankruptcy Code allows a bankruptcy trustee (in a Chapter 7 dissolution case) or the debtor-in-possession (in a Chapter 11 reorganization case) either to assume or to reject an executory contract. A debtor-in-possession has until the time of the confirmation of its plan of reorganization to decide if it will assume or reject the contract. The contractor may ask the bankruptcy court to require the debtor-in-possession to make a decision on the contract sooner, but the court will most likely give the debtor-in-possession a fair amount of time to make the decision.
Reprinted courtesy of
Troy R. Covington and
Stephen M. Parham, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Covington may be contacted at sparham@bloomparham.com
Mr. Parham may be contacted at tcovington@bloom-law.com
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Perrin Construction Defect Claims & Trial Conference
June 11, 2018 —
Beverley BevenFlorez-CDJ STAFFRichard Glucksman, Esquire, Partner of the Los Angeles firm Chapman Glucksman Dean Roeb & Barger, will be moderating the panel, “Green Building/LEED: An Overview and Claims Discussion” at the Perrin Construction Defect Claims & Trial Conference in Las Vegas, Nevada. The panel will be discussing the following topics:
- Risk and claims case studies including solar and SIPs (Structural Insulated Panels)
- Green Building/LEED and The Law: Review of National Claims/Lawsuits
- AIA Documents for Sustainable Projects
Thursday, June 21st, 2018
Four Seasons Hotel
3960 S Las Vegas Blvd
Las Vegas, NV 89119
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Second Circuit Clarifies What Must Be Alleged to Establish “Joint Employer” Liability in the Context of Federal Employment Discrimination Claims
March 14, 2022 —
Kevin J. O’Connor, Aaron C. Schlesinger & Lauren Rayner Davis - Peckar & Abramson, P.C.The “joint employer” doctrine has been used with increasing frequency by the plaintiffs’ bar to broaden the scope of target defendants in discrimination cases beyond those who would be traditionally regarded as the employer. This is true even in the construction industry, which has seen a rise in cases where general contractors or construction managers are being targeted when discrimination is alleged on a construction project, even when the GC or CM is far removed from the underlying events and had no control over the employees in question.
Until now, the Courts in the federal circuit which includes New York City (the Second Circuit) have been left to decipher a patchwork of case law to ascertain the scope and extent of joint employer liability in discrimination cases. This week, the Second Circuit Court of Appeals in Felder v. United States Tennis Association, et al., 19-1094, issued a comprehensive decision which provides a helpful summary of what must be pled and proven to broaden liability under the joint employer theory in discrimination cases.
Reprinted courtesy of
Kevin J. O’Connor, Peckar & Abramson, P.C.,
Aaron C. Schlesinger, Peckar & Abramson, P.C. and
Lauren Rayner Davis, Peckar & Abramson, P.C.
Mr. O'Connor may be contacted at koconnor@pecklaw.com
Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com
Ms. Davis may be contacted at ldavis@pecklaw.com
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California Court Confirms Broad Coverage Under “Ongoing Operations” Endorsements
December 01, 2017 —
Kevin C. Brantley - Payne & FearsA California Court of Appeal has confirmed that additional insured endorsements (“AIE”) granting coverage for liability arising out of a named insured’s “ongoing operations,” and in effect during those “ongoing operations,” do not require that the liability arise while the named insured is performing work. McMillin Mgmt. Servs., L.P. v. Financial Pacific Ins. Co., Cal. Ct. App., November 14, 2017, Case No. D069814.
In McMillin, a construction defect insurance coverage action, Lexington Insurance Company argued that McMillin had no liability to homeowners until after their homes closed escrow; thus, McMillin did not face liability while the named insureds’ work was ongoing. The Court of Appeal rejected Lexington’s argument, finding that the “ongoing operations” AIEs provide only that McMillin’s liability “be ‘linked’ through a ‘minimal causal connection or incidental relationship’ with [the named insureds’] ongoing operations.” (internal citations omitted). The Court reasoned that Lexington had not established that all of the damage in the underlying action occurred after the named insureds completed their work, thus Lexington had not established as a matter of law that there was no potential for coverage for McMillin under the policies.
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Kevin C. Brantley, Payne & FearsMr. Brantley may be contacted at
kcb@paynefears.com
Partners Nicole Whyte and Karen Baytosh are Selected for Inclusion in Best Lawyers 2021 and Nicole Nuzzo is Selected for Inclusion in Best Lawyers: Ones to Watch
September 28, 2020 —
Bremer Whyte Brown & O’Meara, LLPBremer Whyte Brown & O’Meara, LLP is proud to announce that Partners Nicole Whyte and Karen Baytosh have been chosen for inclusion in Best Lawyers 2021 Edition!
CEO/Founding Partner Nicole Whyte has been selected for the 2nd time by her peers for inclusion in the 27th Edition of The Best Lawyers in America, for her work in Family Law. Reno Partner Karen Baytosh is also being recognized by her peers for her work in Commercial Litigation. This is an outstanding recognition as only the top 5% of talent in the United States are chosen for inclusion in this publication.
BWB&O is also excited to share Partner Nicole Nuzzo has been selected by her peers for her inclusion in the edition of Best Lawyers: Ones to Watch, for her work in Family Law. The “Ones to Watch” award gives recognition to attorneys who are earlier in their careers for outstanding professional excellence in private practice in the United States.
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Bremer Whyte Brown & O’Meara, LLP
Construction Defect Scam Tied to Organized Crime?
July 31, 2013 —
CDJ STAFFThe Las Vegas Review-Journal reports that the initial tip-off came from Scott Canepa, a construction defect attorney who alerted the FBI about Leon Benzer’s activities in taking over homeowner boards. Canepa learned that Nancy Quon was taking part in the scheme and went to the FBI with the information. After FBI officials met with Canepa, they launched an investigation, which they named “Operation GrandMaster.”
Although a Benzer associate stated that Benzer claimed not to have ties to organized crime, and according to the Review-Journal, “preferred to think of himself as ‘just a bully,’” the case involves connections to a number of figures with ties to organized crime. Benzer with associated with John V. Spilotro, a lawyer whose uncle was an alleged overseer for Chicago organized crime operating in Las Vegas in the 70s and 80s. Another conspirator, Paul Citelli, reportedly has ties to organized crime in Buffalo.
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Additional Insured Not Entitled to Reimbursement of Defense Costs Paid by Other Insurers
October 21, 2015 —
Tred R. Eyerly – Insurance Law HawaiiCon Edison ("Con Ed") was unsuccessful in arguing for defense costs that had already been paid by other insurers. Consol. Edison Co. of N.Y. v. Lexington Ins. Co., 2015 U.S. Dist. LEXIS 121573 (S.D. N.Y. Sept. 9, 2015).
Team, Inc. was under contract with Con Ed to provide repairs to the steam system running below the streets of New York City. The contract required Team to indemnify Con Ed for all claims resulting from personal injury or property damage connected to Team's work. Team also obtained a CGL policy naming Con Ed as an additional insured. The policy was to provide primary coverage. Any insured was responsible for the first $250,000 of costs for investigation and/or defense.
On July 1, 2007, a steam distribution main, on which Team had finished working, ruptured, creating a huge crater and sending steam and debris, including asbestos insulation, into the surrounding area. The rupture caused substantial damage to nearby buildings, vehicles and underground infrastructure. It also caused personal injury, including two individuals in a tow truck that fell into the crater and a woman who suffered a fatal heart attack while running from the explosion.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Minnesota Civil Engineers Give the State's Infrastructure a "C" Grade for the Second Time
May 02, 2022 —
American Society of Civil EngineersSAINT PAUL, Mn. — The Minnesota Section of the
American Society of Civil Engineers (ASCE) today released preliminary findings from the 2022
Report Card for Minnesota's Infrastructure, with 10 categories of infrastructure receiving an overall grade of a 'C', meaning Minnesota's infrastructure is in mediocre condition. Minnesota has taken steps to make its infrastructure network more sustainable to withstand increasingly severe weather, but additional steps must be taken as the state's infrastructure is aging. Funding has been limited for systems throughout the state, particularly for surface transportation networks, and local and state funding must be increased to bring these critical systems up to speed. Civil engineers graded aviation (B), bridges (C), dams (C), drinking water (C-), energy (C), parks (B-), ports (C-), roads (D+), transit (C-) and wastewater (C).
"The ASCE report card serves as an important benchmark for where our infrastructure currently stands and lays out how we can make improvements," said Sen. Sandy Pappas, DFL-St. Paul. "Knowing that these systems play such a crucial role in economic progress and the safety of Minnesotan families, we have made infrastructure a topline issue and must continue to do so to secure a prosperous future here in Minnesota."
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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