US Appeals Court Halts OSHA Vaccine Mandate, Unclear How Long
November 15, 2021 —
Debra K. Rubin & Jeff Yoders - Engineering News-RecordThe U.S. Court of Appeals in New Orleans on Nov. 6 stayed the Biden administration's requirement that workers at U.S. companies with at least 100 employees be vaccinated against COVID-19 or be tested weekly, citing potential "grave statutory and constitutional" issues raised by opponents of the US Occupational Safety and Health Administration's emergency temporary standard announced on Nov. 4.
Reprinted courtesy of
Debra K. Rubin, Engineering News-Record and
Jeff Yoders, Engineering News-Record
Ms. Rubin may be contacted at rubind@enr.com
Mr. Yoders may be contacted at yodersj@enr.com
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Contractor May Be Barred Until Construction Lawsuit Settled
November 06, 2013 —
CDJ STAFFIn July, Pamar Enterprises was constructing a water main in Bad Axe, Michigan and an error on their part sent water and sewage into homes. This was similar to what happened when they constructed a water main in 2007 in Lyon Township. Now Michigan Representative Terry Brown wants the state to stop awarding contracts to Pamar until the lawsuits are resolved. “I’ve asked [the Michigan Department of Transportation] not to have any more contracts with Pamar,” said Mr. Brown.
Mr. Brown is also seeking that the state withholds payments to Pamar. “I was assured that they would not be getting any more payments until the situation was satisfactorily resolved.”
In the 2007 case, Pamar won in Oakland County Circuit Court, but the Michigan Court of Appeals, found that Pamar failed in its “duty to exercise reasonable care when it entered onto an altered private property.”
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Insurance Companies Score Win at Supreme Court
December 26, 2022 —
Mason Fletcher & Ryan Sternoff - Ahlers Cressman & Sleight PLLCIn 2011, the Washington State Department of Transportation (“WSDOT”) contracted with Seattle Tunnel Partners, a joint venture of Dragados USA and Tutor Perini (“STP”) to construct a tunnel (“SR 99 Tunnel”) to replace the dilapidated Alaska Way Viaduct. STP obtained a builder’s “all-risk” insurance policy (“Policy”) from Great Lakes Reinsurance (UK) PLC and several other insurers (collectively, the “Insurers”) which insured against damage to both the project and the tunnel boring machine popularly known as Big Bertha (“Bertha”).
Bertha began excavating in July 2013 but broke down a few months later when the machine stopped working. Work did not resume on the project until December 2015. WSDOT and STP tendered insurance claims for the losses associated with the delays and breakdown of Bertha but the Insurers denied coverage. Thereafter, WSDOT and STP sued.
The Insurers moved the trial court for partial summary judgment to resolve some, but not all, of the coverage disputes. In a unanimous decision, the Washington State Supreme Court affirmed the trial court and Court of Appeals, and held that insurance companies do not have to reimburse WSDOT and STP for costs accrued during a two-year Project delay, under certain provisions of the insurance policies.
Reprinted courtesy of Mason Fletcher, Ahlers Cressman & Sleight PLLC and
Ryan Sternoff, Ahlers Cressman & Sleight PLLC
Mr. Sternoff may be contacted at ryan.sternoff@acslawyers.com
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Insurer's Motion to Dismiss Complaint for Collapse Coverage Fails
March 22, 2018 —
Tred R. Eyerly.- Insurance Law HawaiiThe insurer's motion for summary judgment seeking dismissal of the insured's claim for collapse coverage was rejected by the Supreme Court of New York. Parauda v. Encompass Ins. Co. of Am., 2018 N.Y. Misc. LEXIS 269 (N.Y. Sup. Ct. Jan. 25, 2018).
The insureds submitted a claim to Encompass for damage to the brick siding, or façade, of their home, which was bulging near the front door. Encompass hired H2M Architects and Engineers to inspect the home and issue a report. H2M determined that the brick façade near the front door was separated from the house. Photos showed that the bricks had separated, the mortar joints were cracked, and there were cracks and deterioration in the mortar. H2M concluded that the brick façade was in poor condition and need repairs and/or replacement. H2M concluded that the separation of the brick façade was caused by water infiltration behind the wood trim and brick façade, occurring over a several year period. Encompass denied the claim based upon exclusions for "freezing, thawing," "wear and tear," and "inadequate maintenance."
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Nevada Bill Aims to Reduce Legal Fees For Construction Defect Practitioners
March 21, 2011 —
CDJ STAFFAssemblyman Ira Hansen and twelve additional members of Nevada’s Assembly are sponsoring Assembly Bill 285. AB 285 Revises provisions governing an award of attorney’s fees in causes of action for constructional defects. Existing law generally provides that a claimant may recover reasonable attorney’s fees as part of the claimant’s damages in a cause of action for constructional defects. (NRS 40.655)
This bill removes this provision and instead authorizes a court to award reasonable attorney’s fees to a prevailing party involved in such a cause of action if an independent basis for the award exists pursuant to existing law which authorizes a court to award attorney’s fees in certain circumstances, or Rule 68 of the Nevada Rules of Civil Procedure, which provides for the payment of reasonable attorney’s fees by an offeree who rejects an offer and subsequently fails to obtain a more favorable judgment.
In an AP report published in Business Week it is suggested that the target objective of legislators centers on what it refers to as Nevada’s "Rampant construction defect lawsuits".
According to Business Week "The suits bring in hundreds of millions of dollars for lawyers and have put construction companies out of business. Hansen says fewer construction firms mean higher prices for Nevada consumers."
Click Here To Read Full Text and Revisions of Assembly Bill 285
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The Practical Distinction Between Anticipatory Breach and Repudiation and How to Deal with Both on Construction Projects
June 10, 2024 —
Devon Griger - ConsensusDocsWhen a multilevel construction project is underway and a contractor or subcontractor isn’t performing as expected, it can be difficult to know how to address the low performance without putting the parties’ contract and good working relationship at risk. However, there may come a time when poor performance lapses into a something much worse: an anticipatory breach or repudiation of the subject contract.
Imagine Scenario One: You are a general contractor managing a large-scale construction project and one of your subcontractors is falling behind on their work. The project manager for the subcontractor calls you and says, “Look, I don’t think we’re going to be able to hit our next milestone, and probably not the next one after that.” A conversation like this would generally trigger concern for most general contractors, but it would not necessarily invoke panic. These types of delay conversations are not uncommon on large scale projects.
Compare that example, however, with Scenario Two, where the subcontractor instead says, “We received an offer to work another job for much more money, so we’re leaving the project site today and will not be returning.” This is obviously different (and potentially worse) than Scenario One, and likely cause for much greater concern.
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Devon Griger, Jones WalkerMs. Griger may be contacted at
dgriger@joneswalker.com
Suing a Local Government in Land Use Cases – Part 2 – Procedural Due Process
February 16, 2017 —
Wally Zimolong – Supplemental Conditionsn my last post I discussed suing a local government for a substantive due process violation. In this post, I discuss a the right to procedural due process.
The Fourteenth Amendment of the United States Constitution protects prohibits the government from depriving an individual or business of life (in the case of an individual), liberty, or property without due process of law. Unlike the somewhat abstract and subjective concept of substantive due process, procedural due process is direct and objective. Generally, if an individual or business maintains a property or liberty interest, a local government must afford that individual or business notice that the government intends to deprive them of a liberty or property interest and a reasonable opportunity to be heard to contest the proposed deprivation. Unless there is an emergency, the notice and opportunity to be heard must be given before the government deprives an individual or business of a liberty of property interest. This is known as a pre-deprivation hearing. Because of the clear contours of the right, procedural due process violations are typically easier to prove than substantive due process violations.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
New York Appellate Court Expands Policyholders’ Ability to Plead and Seek Consequential Damages
February 27, 2019 —
Michael S. Levine & Joshua S. Paster - Hunton Andrews KurthIn a huge win for policyholders, a New York appellate court, in D.K. Property, Inc. v National Union Fire Insurance Company of Pittsburgh, Pa., held that an insured need not provide a detailed factual description or explanation for why consequential damages are recoverable at the pleading stage. Rather, an insured’s complaint must only (i) specify the types of consequential damages claimed; and (ii) allege that those damages reasonably were contemplated by the parties prior to contracting.
Here, D.K. Property’s building was damaged as a result of construction on an adjoining building, and it timely filed a claim with National Union under a policy that covers “direct physical loss or damage to” the building. National Union neither paid the claim nor disclaimed coverage. Instead, according to D.K. Property, National Union made unreasonable and increasingly burdensome information demands over a three-year period, which it alleges was a “tactic” to make pursuing the claim so expensive that D.K. Property would abandon the claim. As a result of the delay, D.K. Property alleges the structural damage to its building has worsened.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Joshua S. Paster, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Paster may be contacted at jpaster@HuntonAK.com
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