Green Buildings Could Lead to Liabilities
March 28, 2012 —
CDJ STAFFAttempts to build “green,” reducing energy costs and increasing the use of sustainable building materials, may lead to more lawsuits, according to a report issued by the British Columbia Construction Association. The report warned those who were going to build green look into the implications. The report looked at the result of green building practices and requirements adopted in the United States.
The report warns that “the use of novel, less harmful building material or new construction techniques may give rise to liability due to: contractor inexperience with installation; lack of long-term evaluation of green materials; lack of understanding of how new building materials may impact existing traditional building systems; or warranties provided unintentionally about the durability or effectiveness of unproven materials or techniques.”
Manley McLachlan, president of the BCAA noted that they are aware of “legal action around the performance of the buildings,” noting that while fast-growing trees help toward LEED certification, their wood is more prone to mold. He also felt that low-VOC paints needed more testing to prove their durability as exterior finishes.
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Consumer Protections for California Residential Solar Energy Systems
September 25, 2018 —
Robert A. James & Alexandra Brandt - Gravel2Gavel Construction & Real Estate BlogIt was already the case that in order to offer to install California residential solar energy systems, a contractor must be licensed by the California Contractors State License Board (CSLB) and must hold an appropriate specialty classification. Under AB 1070 enacted late last year (Chapter 662, Statutes of 2017), special consumer protections are being deployed for the benefit of homeowners. Those protections are steadily rolling out.
Step one is the requirement of new Business & Professions Code (B&P Code) Section 7169 that, as of January 1, 2019, a disclosure document must be provided to consumers prior to sale and included on page 1 of the sale contract. The initial version of this document, which was developed by the CSLB and endorsed on August 23, 2018 by the California Public Utilities Commission (CPUC), is available here. The disclosure requirement doesn’t apply to systems included in new home construction.
Reprinted courtesy of
Robert A. James, Pillsbury and
Alexandra Brandt, Pillsbury
Mr. James may be contacted at rob.james@pillsburylaw.com
Ms. Brandt may be contacted at alexandra.brandt@pillsburylaw.com
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COVID-19 Could Impact Contractor Performance Bonds
March 30, 2020 —
Ben Williams & MG Surety - Construction ExecutiveAs COVID-19 continues to expand around the United States and the world, it may only be a matter of time before U.S. construction projects are affected by the virus. Performance bonds guarantee that a project will be completed by a contractor according to the contract. However, what if a contractor cannot complete a project on time due to widespread disease? What, if any, impact could the virus have on a contractor’s surety bond program?
Risk Factors
Several risks associated with the virus could trigger a performance bond claim.
1. Materials. The Chinese account for a large supply of construction materials, including steel, copper, cabinetry, etc. An inability to obtain these materials could significantly delay or stop a project all together. Even if a contractor is able to obtain them from other sources, it may be at a significantly higher cost than they put into the bid.
2. Labor. There is already a shortage of qualified labor in the construction industry. Additionally, construction already lends itself to the spreading of viruses; workers are often in close proximity, handling common materials, and they may not have an easily accessible place to wash their hands. Furthermore, even though many now have paid sick leave, there is often pressure not to use it. These things could magnify the labor shortage and make it difficult to complete projects on time.
3. Safety. Finally, the world is having a serious shortage of respirators. Because of widespread panic, many people have been purchasing N95 respirators—so much that the Surgeon General has asked people to stop buying them. It has created a shortage for people who really need them, like contractors. If contractors can’t get these safety masks, certain trades will either be unable to work, or risk continuing the project without masks, which would endanger workers and open them up to OSHA penalties.
Reprinted courtesy of
Ben Williams and MG Surety, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Williams may be contacted at
benw@mgsuretybonds.com
Pennsylvania: When Should Pennsylvania’s New Strict Products Liability Law Apply?
February 05, 2015 —
Robert Caplan and Timothy Carroll – White and Williams LLPPennsylvania has maintained its own peculiar brand of strict products liability law ever since the Supreme Court decided Azzarello v. Black Bros. Co., Inc.[1] in 1978. Maligned by many as “absurd and unworkable,”[2] if “excessively” orientated towards plaintiffs,[3] Azzarello’s unique approach to the Restatement (Second) of Torts § 402A (1965)[4] has recently been judicially consigned to the dustbin of history.
In Tincher v. Omega Flex, Inc.,[5] decided on November 19, 2014, the Pennsylvania Supreme Court expressly overruled Azzarello leaving in its place a new alternative standards approach to proving a Section 402A claim. An injured worker or subrogated insurer[6] must still prove that the seller, whether a manufacturer or a distributor, placed the product on the market in a “defective condition unreasonably dangerous to the consumer.”[7] But now, under Tincher, a plaintiff must use either a “consumer expectation test” or a “risk-utility test” to establish that criterion.[8]
Reprinted courtesy of
Robert Caplan, White and Williams LLP and
Timothy Carroll, White and Williams LLP
Mr. Caplan may be contacted at caplanr@whiteandwilliams.com; Mr. Carroll may be contacted at carrollt@whiteandwilliams.com
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Recent Florida Legislative Changes Shorten Both Statute of Limitation ("SOL") and Statute of Repose ("SOR") for Construction Defect Claims
March 19, 2024 —
Holly A. Rice - Saxe Doernberger & Vita, P.C.The Florida Legislature and Governor DeSantis passed Senate Bill 360, effective April 13, 2023, which imposes significant changes to Florida’s statute of limitation (“SOL”) and statute of repose (“SOR”) periods prescribed in Florida Statute § 95.11. In short, the SOL and SOR periods will commence earlier and run earlier, which in effect shortens the time to bring a construction defect claim on both ends of the timeline.1
These changes will have positive impacts for general contractors who may save on insurance premiums with shorter completed operations tails. In other words, the timeframe within which contractors are at risk of being sued for construction-related errors is significantly reduced under the new version of the statute. Owners and developers, on the other hand, may feel that the increased pressure of uncovered construction defects necessitates the filing of lawsuits sooner than they might have otherwise filed. Collectively, all parties involved will certainly have to consider when and how to place their carriers on notice of claims or potential claims and, coupled with Florida’s sweeping changes to fee shifting statutes, insured parties may see more coverage denials which, in turn, could lead to more coverage actions.2
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Holly A. Rice, Saxe Doernberger & Vita, P.C.Ms. Rice may be contacted at
HRice@sdvlaw.com
SB800 Not the Only Remedy for Construction Defects
October 01, 2013 —
CDJ STAFF“We anticipate an increase in residential construction defect litigation in response to this ruling,” David Frenznic, a construction defect lawyer at Wilke, Fleury, Hoffelt, Gould & Birney LLP told the Central Valley Business Times. Mr. Frenznic was responding to an August ruling by the California Court of Appeals that found that SB800 does not create the only remedy for homeowners with construction defects.
“Homeowners who suffer actual damage as a result of construction defects have a choice of remedies,” said Mr. Frenznick. SB800 established a shorter statute of limitations for construction defect claims, however, “the ruling makes clear that common law claims are still governed by the longer statues of limitations.”
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Supreme Court of Canada Broadly Interprets Exception to Faulty Workmanship Exclusion
November 10, 2016 —
C. Lily Schurra – Saxe Doernberger & Vita P.C.In a recent policyholder-friendly decision, the Supreme Court of Canada found coverage under an exception to the faulty workmanship exclusion in an all-risk policy. The decision provided the insureds with millions to cover the cost of replacing the faulty work.
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C. Lily Schurra, Saxe Doernberger & Vita P.C.Ms. Schurra may be reached at
cls@sdvlaw.com
When Does a Contractor Legally Abandon a Construction Project?
January 24, 2018 —
Rick Erickson - Real Estate Litigation BlogLately, we’ve been spending more time as litigators pursuing and defending claims of abandonment against contractors. It has become apparent that abandonment is often misinterpreted in its legal meaning and effect. Here are some thoughts on abandonment to consider.
On its face, the concept of abandonment is simple enough. For any number of reasons, a contractor abandons a project when the contractor stops showing up. Abandonment is major concern for all players on the project because it causes critical path delays and significant costs to replace the contractor with another contractor, many times at a much higher cost than the original contractors’ bid.
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Rick Erickson - Snell & WilmerMr. Erickson may be contacted at
rerickson@swlaw.com