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    2016 California Construction Law Upate

    First Circuit Rejects Insurer’s “Insupportable” Duty-to-Cooperate Defense in Arson Coverage Suit

    Coverage for Named Windstorm Removed by Insured, Terminating Such Coverage

    The Best Lawyers in America© Peer Review Names Eight Newmeyer & Dillion Partners in Multiple Categories and Two Partners as Orange County’s Lawyers of the Year in Construction and Insurance Law

    Disappointment on an Olympian Scale After Rio 2016 Summer Games

    New York Team’s Win Limits Scope of Property Owners’ Duties to Workers for Hazards Inherent in Their Work

    “Based On”… What Exactly? NJ Appellate Division Examines Phrase and Estops Insurer From Disclaiming Coverage for 20-Month Delay

    Structural Defects in Thousands of Bridges in America

    Hunton Partner Michael Levine Appointed to Law360’s 2024 Insurance Authority Property Editorial Advisory Board

    No Coverage for Tenant's Breach of Contract Claims

    In Florida, Component Parts of an Improvement to Real Property are Subject to the Statute of Repose for Products Liability Claims

    SDNY Vacates Arbitration Award for Party-Arbitrator’s Nondisclosures

    Shaken? Stirred? A Primer on License Bond Claims in California

    Editorial: Qatar Is Champion of Safety Hypocrisy in Migrant Worker Deaths

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    BHA has a Nice Swing: Don’t Forget to Visit BHA’s Booth at WCC to Support Charity

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    Affirmed

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    Building Expert News & Info
    Fairfield, Connecticut

    Another Guilty Plea in Las Vegas HOA Scandal

    December 20, 2012 —
    A twenty-eighth person has plead guilty in the ongoing Las Vegas HOA scandal. Dax Louderman, who had been a construction company manager had acknowledged that he stole more than $495,000 from his former employers, Alpha 1 Construction and the Stone Canyon Homeowners Association, and further that he did not report this improper income on his tax returns. He has agreed to work with prosecutors and to pay $134,860 to the IRS. His actual sentencing will happen on June 24. Read the court decision
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    Reprinted courtesy of

    Has Hydrogen's Time Finally Come?

    April 05, 2021 —
    Global conditions to harness the potential of hydrogen to fuel the developing clean energy transformation—particularly technology innovation, political investment and growing acceptance that climate change is a reality—finally appear to be lining up. While reports have noted hydrogen eyed as a fossil fuel replacement as far back as Jules Verne’s 1875 novel “The Mysterious Island,” with costs high and changemaking slow, it never captured the market many hoped for. Reprinted courtesy of Mary B. Powers, ENR, Debra K. Rubin, ENR, Michael Dumiak, ENR, and Pam Radtke Russell, ENR Ms. Rubin may be contacted at rubind@enr.com Ms. Russell may be contacted at Russellp@bnpmedia.com Read the full story... Read the court decision
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    Reprinted courtesy of

    Force Majeure, Construction Delays, Labor Shortages and COVID-19

    April 06, 2020 —
    The global effect of the Coronavirus disease (COVID-19) is still unknown, and the progress of many large-scale construction projects has been affected by “Shelter in Place” orders, although some states and localities have classified construction projects as “essential.” Just last Friday, New York shut down all construction, with few exceptions. Several states have enacted gathering bans of all sizes (including Michigan, Oregon, New Mexico, Washington, New York, New Jersey, Wisconsin, Illinois, Indiana, Ohio, West Virginia, California) and more people are likely to be quarantined as widespread testing becomes available. These decisions will undoubtedly affect the supply of materials and labor necessary for construction projects. Officials have turned to increasingly disruptive and measures to control the spread of the virus in addition to event prohibitions and school closures, including restricting people to their homes, and closing businesses that are not “essential.” While many companies have adopted mandatory telecommuting, this is an impossibility on the construction sites. Eventually, supply and labor shortages due to governmental restrictions or quarantines will affect the critical path of construction projects. Read the court decision
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    Reprinted courtesy of Elizabeth J. Dye, Pillsbury
    Ms. Dye may be contacted at elizabeth.dye@pillsburylaw.com

    New Evidence Code Requires Attorney to Obtain Written Acknowledgement that the Confidential Nature of Mediation has been Disclosed to the Client

    January 02, 2019 —
    Senate Bill 954: MEDIATION CONFIDENTIALITY DISCLOSURES. California regards mediation as a beneficial process for parties to resolve disputes in an expeditious and economical fashion. To assure open and candid participation, there is a longstanding policy in California to maintain confidentiality during the mediation process. However, the mediation confidentiality statutes have prevented some clients from suing their·attorneys for alleged malpractice that occurred during the mediation process. (see Cassel v. Superior Court, (2011) 51 Cal.4th 113). Senate Bill ("SB") 954, was recently passed and thereafter approved by the Governor on September 11, 2018 to address this concern. SB 954, which will amend California Evidence Code section 1122 and add California Evidence Code section 1129, requires that an attorney representing a client participating in a mediation or a mediation consultation provide that client with a written disclosure and acknowledgement containing the mediation confidentiality restrictions as set forth in the California Evidence Code. This written disclosure and acknowledgement requirement does not apply to class or representative actions. Additionally, the failure of an attorney to follow the new requirement will not be a basis to set aside an agreement prepared in the course of, or pursuant to, a mediation. Any communication, document, or writing related to an attorney's compliance with the disclosure requirement will not be considered confidential and may be used in a disciplinary proceeding if the communication, document, or writing does not disclose anything said or done or any admission made in the course of the mediation. California Evidence Code section 1129 sets forth the exact language that must be used in the disclosure. It even informs the client that all communications between the client and the attorney made in preparation for a mediation, or during a mediation, are confidential and cannot be disclosed or used (except in extremely limited circumstances), even if the client later decides to sue the attorney for malpractice because of something that happens during the mediation. The new disclosure requirement will allow mediation to maintain the confidentiality that encourages open and candid communications during the process while ensuring that before clients agree to mediation that the clients are made aware of how that confidentiality can potentially impact them. SB 954, will take effect on January 1,2019. Reprinted courtesy of Stephen J. Pearce, Chapman Glucksman Dean Roeb & Barger and David A. Napper, Chapman Glucksman Dean Roeb & Barger Mr. Pearce may be contacted at dnapper@cgdrblaw.com Mr. Napper may be contacted at jpaster@HuntonAK.com Read the court decision
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    More Reminders that the Specific Contract Terms Matter

    January 24, 2022 —
    If there is a theme I have pounded upon here at Construction Law Musings in the over 13 years of posting, it is that the specific terms of your construction contracts will make a huge difference. While there have been reminders galore, a case from the Eastern District of Virginia presented another wrinkle on this theme. The wrinkle? A factoring company. In CJM Financial, Inc. v. Leebcor Services, LLC et. al., the Court examined this scenario (though it went into more detail than I will here): Leebcorp hired a subcontractor, Maston Creek Services to provide certain construction services under two separate contracts. Maston then hired CJM, a factoring company, and assigned CJM its receivables and the right to collect those receivables. We wouldn’t be discussing this case if all had worked out as planned, so you likely anticipate at least some of what came next. The short story is that Matson failed to pay some of its suppliers and Leebcorp exercised its termination rights under those contracts when Matson refused to cure. In the interim, CJM had paid part of certain payment applications to Matson in compliance with the factoring agreement. When Leebcorp failed to pay CJM for Matson’s work, CJM exercised its assigned rights to collect the receivables and sued Leebcorp for breach of contract. In response, Leebcorp counterclaimed for, among other counts including civil conspiracy, breach of contract based on Matson’s failure to perform. CJM moved to dismiss the counterclaims. Read the court decision
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    Reprinted courtesy of The Law Office of Christopher G. Hill
    Mr. Hill may be contacted at chrisghill@constructionlawva.com

    Wall Failure Due to Construction Defect Says Insurer

    October 09, 2013 —
    A wall built by J. F. Smith Construction collapsed during Hurricane Isaac, and Bankers Insurance Group is blaming the builder not the hurricane. The insurer claims that if the wall had been built properly it would have withstood the storm. The suit is being filed in the Louisiana courts. Bankers Insurance is seeking $49,625.25 in damages. Read the court decision
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    Reprinted courtesy of

    Florida Federal Court Reinforces Principle That Precise Policy Language Is Required Before An Insurer Can Deny Coverage Based On An Exclusion

    February 07, 2018 —
    A recent ruling by U.S. District Judge Paul Byron of the Middle District of Florida has made clear that the actual words used in an insurance contract matter. The court, in Mt. Hawley Insurance Co. v. Tactic Security Enforcement, Inc., No. 6:16-cv-01425 (M.D. FL. 2018), denied an insurance company’s motion for summary judgment attempting to rely on an exclusion to deny coverage to its policyholder. The policyholder, Que Rico La Casa Del Mofongo, operated a restaurant establishment in Orlando, Florida, and sought coverage for two negligence lawsuits filed against it for allegedly failing to prevent a shooting and another violent incident on its premises. Reprinted courtesy of Walter J. Andrews, Hunton & Williams and Katherine Miller, Hunton & Williams Mr. Andrews may be contacted at wandrews@hunton.com Ms. Miller may be contacted at kmiller@hunton.com Read the court decision
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    Reprinted courtesy of

    Exclusion for Construction of Condominiums Includes Faulty Construction of Retaining Wall

    August 04, 2021 —
    The exclusion for suits arising out of construction of condominiums encompassed the underlying claim for faulty construction of a retaining wall. HT Serv., LLC v. Western Heritage Ins. Co., 2021 U.S. App. LEXIS 16259 (10th Cir. June 1, 2021). HT Services was a land developer. HT Services designed and constructed a residential community. The AOAO sued HT Services for negligent design and construction of a retaining wall. When its carrier, Western Heritage Insurance Company, denied coverage, HT Services sued. The district court granted summary judgment to Western. The exclusion eliminated coverage for claims or suits "arising out of, relating to or in any way connected with 'your operations' . . . involving the development [or] construction . . . of . . . condominiums . . . or . . . residential structures." HT Services argued that a retaining wall was not a "residential structure." Read the court decision
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    Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
    Mr. Eyerly may be contacted at te@hawaiilawyer.com