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DIRECTORY AND CAPABILITIES

Commonwealth Court Strikes Blow to Philly Window and Door Ordinance

January 05, 2017 — Wally Zimolong – Supplemental Conditions
On December 22, 2016, the Pennsylvania Commonwealth Court issued an important opinion that has flown under the radar somewhat. The case Rufo v. Board of Licenses and Inspection Review, invalidates a major portion of Philadelphia’s so called windows and doors ordinance, which requires owners of vacant properties to install glass windows and doors with frames on vacant properties. A copy of the opinion can be found here. (I only learned about the case because of a tweet by a litigator with the pro-freedom group the Institute for Justice.) The Windows and Doors Ordinance The case concerns Section 306.2 of the Property Maintenance Code which requires “the owner of a vacant building that is a blighting influence, as defined in this subcode, [to] secure all spaces designed as windows with windows that have frames and glazing and all entryways with doors.” Property owners found in violation of the ordinance can face stiff fines. Property owners are subject to a daily fine for each door and window in violation of the Ordinance. The fine is $300 per window or door. However, because most vacant properties have multiple windows and doors the fines can add up exponentially. Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

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Waiver of Subrogation Enforced, Denying Insurers Recovery Against Additional Insured in $500 Million Off-Shore Oil Rig Loss

September 30, 2019 — Sergio F. Oehninger & Daniel Hentschel - Hunton Insurance Recovery Blog
The United States District Court for the Southern District of Texas recently rejected a claim by a group of insurance companies (“Underwriters”) against American Global Maritime Inc. for more than $500 million that the Underwriters paid the named insured under an Off-Shore Construction Risk insurance policy for losses resulting from the an alleged off-shore oil rig failure. The action arose out of alleged construction defects related to Chevron’s “Big Foot” oil-drilling platform in the Gulf of Mexico. Chevron hired American Global to be the marine warranty surveyor responsible for reviewing and certifying the project’s specifications and materials. American Global issued the certificate of approval required for the project to proceed; however, during the attempted installation of the platform in 2015, it was alleged that parts from the structure fell to the sea floor. The Underwriters paid more than $500 million in connection with the incident under an Off-Shore Construction insurance policy they had issued to Chevron. After paying the claim, the Underwriters filed a negligence action against American Global and other contractors involved in the project. Reprinted courtesy of Sergio F. Oehninger, Hunton Andrews & Kurth and Daniel Hentschel , Hunton Andrews & Kurth Mr. Oehninger may be contacted at soehninger@HuntonAK.com Mr. Hentschel may be contacted at dhentschel@HuntonAK.com Read the court decision
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President Trump’s “Buy American, Hire American” Executive Order and the Construction Industry

June 05, 2017 — Garret Murai - California Construction Law Blog
On April 18, 2017, President Trump signed Executive Order No. 13788 implementing his “Buy American, Hire American” campaign promise. Federal construction contractors familiar with “Buy American” clauses in federal contracts under the Federal Acquisition Regulations (FAR)–which require materials to be manufactured in the United States (or, depending on the clause, not manufactured in certain countries) unless a waiver is obtained–have waited anxiously to see what Trump’s “Buy American, Hire American” promise would mean for them. Well . . . as it turns out, not much, at least not yet. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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The Problem With Building a New City From Scratch

May 10, 2022 — Nolan Gray - Bloomberg
From California to Miami and points in between, housing costs in the U.S. are skyrocketing, bringing bidding wars in hot markets and fears of a fresh surge in homelessness as renters scramble for an affordable place to live. The deepening housing crunch — and the intractable resistance that residents often put up when the prospect of new housing emerges nearby — has led some observers to ask: Why don’t we just make new cities? “When China needs new places for people to live, they just build a new city,” Nathan J. Robinson recently wrote in Current Affairs, contemplating all the undeveloped land in between California’s costly major urban areas. “They’ve built 600 of them since 1949.” At first blush, it might seem obvious. But history is full of failed, unfinished or underperforming scratch-built city projects, in California and elsewhere, and more are in the pipeline. To learn more about how we might best approach building new cities, CityLab talked to a person who’s had a hand in planning a few of them: Alain Bertaud, a fellow at the Marron Institute for Urban Management and a globetrotting former city planner at the World Bank. Our conversation has been edited for length and clarity. Read the court decision
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Reprinted courtesy of Nolan Gray, Bloomberg

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South Carolina School District Investigated by IRS and FBI

March 12, 2014 — Beverley BevenFlorez-CDJ STAFF
The IRS and FBI are investigating operations of the Jasper County School District in South Carolina. According to The Post and Courier, “Assistant U.S. Attorney James May sent a letter to district officials asking them to keep financial documents, the minutes of school board meetings, employment files for top officials and all letters and emails between district employees.” Some of the problems the school district has dealt with are “legal challenges.” One of the disputes, involved a “multi-million dollar” construction defect claim for “facilities built in 2007.” The Post and Courier reported that this made up twenty percent of the more than half a million dollars paid in legal fees by the district. South Carolina “lawmakers are considering the Parent Empowerment Act, a bill that would allow the state's Education Department to take over districts that are mismanaged or need improvement if a majority of parents call for it,” according to The Post and Courier. Read the court decision
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Reprinted courtesy of

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AGC’s 2024 Construction Outlook. Infrastructure is Bright but Office-Geddon is Not

February 12, 2024 — Garret Murai - California Construction Law Blog
The Associated General Contractors of America has issued its 2024 Construction Outlook. According to its survey of construction contractors throughout the United States, contractors have a mixed outlook for 2024 with firms predicting transitions in the demand for projects, the types of challenges they will face and technologies they plan on embracing. According to the survey, contractors continue to cope with significant labor shortages, the impact of higher interest rates and input costs and a supply chain which, while better than in past few years, is still far from normal. Of the 17 categories of construction types included in the survey, respondents expected a net positive growth in 14 of those categories, with infrastructure projects leading the net positive readings following the passage of the Infrastructure Bill in 2021, and commercial retail and office leading the net negative readings as a result of the continuing office-geddon: Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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The Indemnification Limitation in Section 725.06 does not apply to Utility Horizontal-Type Projects

February 07, 2018 — David Adelstein - Florida Construction Legal Updates

One of the most important provisions in construction contracts is the indemnification provision. Appreciating contractual indemnification obligations are critical and certainly should not be overlooked. Ever!

Florida Statute s. 725.06 (written about here and here) contains a limitation on contractual indemnification provisions for personal injury or property damage in construction contracts. There should always be an indemnification provision in a construction contract that addresses property damage or personal injury. Always!

Section 725.06 pertains to agreements in connection with “any construction, alteration, repair, or demolition of a building, structure, appurtenance, or appliance, including moving and excavating associated therewith…” If the contract requires the indemnitor (party giving the indemnification) to indemnify the indemnitee (party receiving the indemnification) for the indemnitee’s own negligence, the indemnification provision is unenforceable unless it contains a “monetary limitation on the extent of the indemnification that bears a reasonable commercial relationship to the contract and is part of the project specifications or bid documents, if any.” It is important to read the statute when preparing and dealing with a contractual indemnification provision.

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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

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Broker's Motion for Summary Judgment on Negligence Claim Denied

July 30, 2018 — Tred R. Eyerly - Insurance Law Hawaii
After being sued for negligence for failing to secure proper coverage, the broker was unsuccessful in seeking dismissal by way of summary judgment. Liverman Metal Recycling, Inc. v. Arthur J. Gallagher & Co., 2018 U.S. Dist. LEXIS 87957 (E.D. N.C. May 25, 2018). Plaintiffs were two companies, Empire and Liverman, that processed scrap metal. They were in the process of merging under a management plan by which Empire would acquire Liverman. As part of the plan, Empire's employees were moved on to Liverman's payroll processing system. Concurrently, Liverman renewed its workmen's compensation policy. Defendant Arthur J. Gallagher & Company, an insurance broker, handled the renewal with the insurer, Bridgefield Insurance Company. 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

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