Discussion of the Discovery Rule and Tolling Statute of Limitations
February 26, 2015 —
Beverley BevenFlorez-CDJ STAFFAttorney Clay Olson analyzed a recent South Carolina appeals case that “discussed the threshold for ‘notice’ as it pertains to statute(s) of limitations in construction defect cases. At the root of this action was a 2003 forensic report obtained by the HOA which was not acted upon until 2009.”
Olson presented the background of the case as well as the case progression. Olson concluded, “It is well settled that an expert’s findings, when presented to a claimant, trigger the statute of limitations as to the specific defective conditions and locale where defects are present. This case is interesting in its treatment of the initial report as a trigger of all defects in not only the main building which was subject of the 2003 report, but additional structures.”
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Jury Could Have Found That Scissor Lift Manufacturer Should Have Included “Better” Safety Features
January 02, 2024 —
Garret Murai - California Construction Law BlogA few years ago I listened to an NPR segment called “
What Can Kids Learn by Doing Dangerous Things?” It was about a summer program called the Tinkering School where kids can learn to build things, using tools of course, including power tools.
The founder of the program, Gever Tulley, also wrote a book entitled
50 Dangerous Things (You Should Let Your Children Do), in which he argued that while well-intentioned, children today are overly protected, and that giving children exposure to “slightly” dangerous things can help foster independence, responsibility, and problem-solving as well as a healthy dose of caution.
The plaintiff in the next case might have benefitted from that program.
In
Camacho v. JLG Industries Inc., 93 Cal.App.5th 809 (2023), the Court of Appeals examined whether the manufacturer of a scissor lift should have incorporated “better” safety features when a construction worker fell from the lift.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Construction Contract Language and Insurance Coverage Must Be Consistent
July 30, 2015 —
Craig Martin – Construction Contract AdvisorHow often do you review both the additional insured language in the contract and the insurance policy provided by a subcontractor? My guess is, unless the project has gone off the rails, NEVER. Well, perhaps you should to make absolutely sure the extent of the subcontractor’s insurance obligations and whether those obligations are being fulfilled.
This point was recently addressed in a recent DRI article analyzing the Deepwater Horizon/BP lawsuit. My partner, Anne Marie O’Brien, also blogged on this a few months ago.
As you will recall, Transocean’s Deepwater Horizon oil-drilling rig exploded, killing 11 workers, and polluted the Gulf of Mexico. BP demanded that Transocean’s insurer pay for the loss. Transocean’s insurer said no, and the litigation ensued, in state court, federal court, and the Texas Supreme Court. It was quite an odyssey of litigation.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Colorado Court of Appeals’ Ruling Highlights Dangers of Excessive Public Works Claims
August 26, 2024 —
David M. McLain – Colorado Construction LitigationIn the case of Ralph L. Wadsworth Construction Company, LLC v. Regional Rail Partners (2024 COA 78), the Colorado Court of Appeals reviewed a complex contract dispute related to the design and construction of a transit rail line. The project, commissioned by the Regional Transportation District (“RTD”), involved a collaboration between Regional Rail Partners and Ralph L. Wadsworth Construction Company (“Wadsworth”) to build the North Metro Rail Line between Denver Union Station and Thornton.
Key Facts:
- Contracts and Payments: Regional Rail Partners contracted with Wadsworth to perform specific construction tasks with a total contract value of $60,210,783. By the time of the trial, Regional Rail had paid almost $58 million of this amount.
- Disputes and Delays: The project faced numerous delays and disputes, leading to Wadsworth claiming significant financial damages attributed to these disruptions. In April 2018, Wadsworth’s expert estimated that Regional Rail owed them $12,408,496.60.
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David McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
Sales Pickup Shows Healing U.S. Real Estate Market
June 26, 2014 —
Shobhana Chandra – BloombergAmericans snapped up previously owned homes in May in the biggest monthly sales gain in almost three years, a sign the residential real estate market is regaining its footing after a stumble early in the year.
Purchases climbed 4.9 percent, the biggest increase since August 2011, to a 4.89 million annualized rate, figures from the National Association of Realtors showed today in Washington. The level was the strongest since October. The report also showed price appreciation is slowing as more homes become available.
A more balanced market, including a wider selection of properties, smaller price gains and still-low borrowing costs, may encourage more Americans to buy as employment strengthens. Improving demand will probably spur a pickup in construction, and builders such as Hovnanian Enterprises Inc. (HOV) are optimistic.
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Shobhana Chandra, BloombergMs. Chandra may be contacted at
schandra1@bloomberg.net
Filing Motion to Increase Lien Transfer Bond (Before Trial Court Loses Jurisdiction Over Final Judgment)
May 15, 2023 —
David Adelstein - Florida Construction Legal UpdatesIf a construction lien is recorded against real property, the lien can be transferred to a lien transfer bond. This transfers the security or collateral of the construction lien from the real property to the lien transfer bond. The lien transfer bond can be a bond posted by a surety company or it can be cash. This is governed by Florida Statute s. 713.24. The amount of the lien does not dictate the amount of the lien transfer bond. Rather, the lien transfer bond needs to be in the amount of the lien, plus interest on that amount for three years, plus $1,000 or 25% of the amount of the lien (whichever is greater so factor in the 25%) to cover attorney’s fees. Fla. Stat. 713.24(1).
If you are looking to transfer a construction lien to a lien transfer bond, make sure to consult with counsel.
Keep in mind there is a statutory mechanism for a lienor to increase the lien transfer bond to cover attorney’s fees and costs and notice the word “must” in the statute below. Pursuant to Florida Statute s. 713.24(3):
Any party having an interest in such security or the property from which the lien was transferred may at any time, and any number of times, file a complaint in chancery in the circuit court of the county where such security is deposited, or file a motion in a pending action to enforce a lien, for an order to require additional security, reduction of security, change or substitution of sureties, payment of discharge thereof, or any other matter affecting said security. If the court finds that the amount of the deposit or bond in excess of the amount claimed in the claim of lien is insufficient to pay the lienor’s attorney’s fees and court costs incurred in the action to enforce the lien, the court must increase the amount of the cash deposit or lien transfer bond. Nothing in this section shall be construed to vest exclusive jurisdiction in the circuit courts over transfer bond claims for nonpayment of an amount within the monetary jurisdiction of the county courts.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Drug Company Provides Cure for Development Woes
November 18, 2011 —
CDJ STAFFVertex Pharmaceuticals is poised to become the holder of Boston’s biggest commercial lease, paying $72.5 million for 1.1 million square feet on Boston’s waterfront. Vertex’s new buildings are still under construction, but the plans have spurred other development in the Fan Pier area, according to the New York Times. The Times quotes Mary A. Burke, a senior economist at the Federal Reserve Bank of Boston that the Vertex project gives “a big push” to the “momentum for economic growth.”
The Fallon Company is building Vertex’s new laboratory and office space. They are separately planning to build a high-rise with 150 luxury condominium units. According to Joseph Fallon, the chief executive and president of the Fallon Company, there is already a waiting list of 50 buyers for the condominiums.
Across the street from the Vertex site, a group including Morgan Stanley and Boston Global Investors is planning a 23-block mixed use project that would include 1.2 million square feet of retail space. Additionally, the New England Development and the Hanover Group is building a 356-unit apartment building at the adjacent Pier 4.
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Become Familiar With Your CGL Policy Exclusions to Ensure You Are Covered: Wardcraft v. EMC.
December 31, 2014 —
Heather M. Anderson – Colorado Construction LitigationIn a recent case arising out of a denial of coverage for alleged construction defect claims concerning a pre-fabricated home, the U.S. District Court for the District of Colorado applied the 10th Circuit’s determination of what can constitute an “occurrence” under a commercial general liability (“CGL”) policy. See Wardcraft Homes, Inc. v. Employers Mutual Cas. Co., 2014 WL 4852117 (D. Colo. September 29, 2014). William and Grace Stuhr sued Wardcraft, which manufactured pre-fabricated homes at a facility in Fort Morgan, Colorado, because their home was not completed as scheduled and contained various defects. The Stuhrs filed suit against Wardcraft alleging negligence, breach of warranty, and deceptive trade practices in violation of the Colorado Consumer Protection Act.
Wardcraft tendered the Stuhrs’ complaint to Employers Mutual Casualty Company (“EMC”), which denied coverage under its policy and denied any duty to defend. According to EMC, the Stuhrs’ alleged construction defects were not property damages and there was no occurrence in connection with faulty workmanship. Approximately two and a half years after they filed their initial complaint, the Stuhrs filed an amended complaint. Wardcraft did not tender this amended complaint to EMC, and first informed EMC about the amended complaint about a year after it was filed. A month prior, Wardcraft settled with the Stuhrs.
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Heather M. Anderson, Higgins, Hopkins, McLain & Roswell, LLCMs. Anderson may be contacted at
Anderson@hhmrlaw.com