Filling Out the Contractor’s Final Payment Affidavit
February 03, 2020 —
David Adelstein - Florida Construction Legal UpdatesWhen preparing a contractor’s final payment affidavit, I always suggest for a contractor (or anyone in privity of contract with the owner) to identify the undisputed amounts their accounting reflects is owed to ALL subcontractors, etc., regardless of whether that entity preserved their lien rights. If the contractor provided a payment bond, I footnote this simply to support that none of the lower-tiered subcontractors have lien rights or are the traditional “lienor.” (Thus, there is no prejudice to the owner if an entity is inadvertently omitted from the affidavit.)
There are times, however, where a contractor does not identify a subcontractor that did not serve a notice to owner and, therefore, has no valid lien rights. Or, a contractor omits a lienor that actually did serve a notice to owner and preserve its lien rights; this happens.
There was an older First District Court of Appeals case that harshly (and, quite, unfairly) held that the contractor must identify everyone in the final payment affidavit regardless of whether that entity timely served a notice to owner or their lien is invalid. This case, however, predated, a 1998 statutory change to Florida’s Lien Law.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Termination for Convenience Clauses: Maybe More Than Just Convenience
June 06, 2022 —
Robert C. Shaia - ConsensusDocsA contractor begins work on a project and everything is going well, until one day the owner informs the contractor that it is being terminated for convenience. Possibly, there is no discussion about alleged defects, reasons for the termination, or any damages the owner might seek against the contractor. In that moment, the contractor may be unaware of any perceived wrongdoing or problems with its work.
The industry has typically accepted that, in this scenario, the owner implicitly waives the right to any remedies against the contractor, except those expressly set forth in the contract. Reasonable minds might assume that, if the owner believed it needed to seek further remedies, it would terminate the contractor for cause instead of convenience. And often overlooked during contract negotiations are the benefits of including an express “waiver of remedies” in the termination for convenience section.
Read the court decisionRead the full story...Reprinted courtesy of
Robert C. Shaia, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs)Mr. Shaia may be contacted at
rshaia@watttieder.com
Michigan Finds Coverage for Subcontractor's Faulty Work
August 24, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe Michigan Supreme Court held that under a CGL policy, an "accident" may include unintentional subcontractor work that damages the insured's work product. Skanska USA Building Inc. v. M.A.P. Mechanical Contractors, Inc., et al., 2020 Mich. LEXIS 1194 (Mich. June 29, 2020).
Skanska USA Building Inc. was the construction manager on a renovation project for a medical centre. The heatng and cooling portion of the project was subcontracted to M.A.P. Mechanical Contractors, Inc. (MAP). MAP installed a steam builder and piping for the heating system. The installation included several expansion joints. After completion, Skanska learned that MAP had installed some of the expansion joints backward. This caused significant damage to concrete, steel and the heating system. The medical center sent a demand letter to Skanska, who send a demand letter to MAP. Skanska did the repairs and replacement of the damaged property. Skanska then submitted a claim of $1.4 million for its work to Amerisure Insurance Company. The claim was denied.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Florida Project Could Help Address Runoff, Algae Blooms
September 17, 2018 —
Thomas F. Armistead - Engineering News-RecordHeavy rainfall this spring overwhelmed Everglades infrastructure and required operators to discharge nutrient-laden water from Lake Okeechobee to South Florida’s east and west coasts. The resulting toxic algal blooms are fouling Florida’s coast, killing wildlife, driving away vacationers and local beachgoers and threatening public health.
Read the court decisionRead the full story...Reprinted courtesy of
Thomas F. Armistead, ENRENR may be contacted at
ENR.com@bnpmedia.com
State Farm Too Quick To Deny Coverage, Court Rules
July 22, 2011 —
CDJ STAFFOn July 13, 2011, Judge Sarah S. Vance of the US District Court issued a rule in the case of Travelers Cas. & Surety Co. of Am. v. Univ. Facilities, Inc. (E.D. La., 2011). In this case, Stanley Smith Drywall was contracted by Capstone Building Corporation to “perform undisclosed work at the facility believed to involve the installation of drywall.” The project involved the design and construction of student residences for the Southeastern Louisiana University in Hammond, Louisiana. In May, 2009, University Facilities, Inc. (UFI) sued Capstone Development Corporation and Capstone On-Campus Management.
State Farm insured Stanley Smith Drywall and they sought a declaration that they have no duty: “(1) to insure Stanley Smith or CBC, or (2) to defend or indemnify any party against UFI's claims in the pending arbitration.” State Farm contends “(1) there is no "occurrence" to trigger coverage under the policy; (2) only breach of contract claims are asserted; (3) there is no property damage alleged; and (4) various coverage limitations and exclusions apply to prevent coverage.’
The court concluded that “whether State Farm has a duty to defend in the arbitration must be determined by considering the claims asserted in the arbitration.” However, the arbitration claims were not made part of the record. There, “, the Court cannot determine as a matter of law State Farm's duty to defend on the present record.” The same was true of State Farm’s duty to indemnify. “Stanley Smith and CBC assert that State Farm's motion for summary judgment was filed before any discovery was conducted in the arbitration proceeding or in this case. The Court finds that State Farm has failed to develop the record sufficiently to establish that there is no genuine issue of material fact as to its duty to indemnify Stanley Smith or CBC in the arbitration.’
The court denied State Farm’s motion for a summary judgment on its duty to defend and indemnify.
Read the court’s decision…
Read the court decisionRead the full story...Reprinted courtesy of
Ohio Does Not Permit Retroactive Application of Statute of Repose
October 08, 2014 —
Beverley BevenFlorez-CDJ STAFFDon Gregory of Kegler Brown Hill + Ritter (published in Association of Corporate Counsel) reported that while Ohio currently has a statute of repose, the Supreme Court of Ohio recently ruled in a case where the development was built in 1990 but the defects weren’t discovered until 2003 that the statute of repose did not apply since “Ohio had no enforceable statute of repose in 2003 (it had been declared unconstitutional).”
Gregory stated that “[t]his case means that some construction defect claims, by condo associations or others, may survive even though construction was completed more than a decade ago.”
Read the court decisionRead the full story...Reprinted courtesy of
Missouri Asbestos Litigation Reform: New Bill Seeks to Establish Robust Disclosure Obligations
March 15, 2021 —
Jennifer B. Pigeon - Lewis BrisboisMissouri State Senator Eric Burlison is reviving attempts to reform asbestos litigation in the State of Missouri through the introduction of SB 331. This bill was pre-filed on December 29, 2020 and first read on January 6, 2021. The bill establishes disclosure procedures for claimants in asbestos-related lawsuits. Specifically, the bill, if passed, would require claimants in civil asbestos-related lawsuits to file a sworn information form within 30 days of filing an asbestos-related lawsuit.
The required disclosures under SB 331 include, but are not limited to (1) each asbestos-containing product to which the exposed person was exposed and each physical location at which the exposure occurred; (2) the identity of the manufacturer or distributor of specific asbestos-containing products for each named exposure; (3) the specific location and manner of each exposure; (4) the beginning and end dates of each exposure, the frequency and length of each exposure, and the proximity of the asbestos-containing product or its use to the exposed person; and (5) a certification that any claim that can be made with a bankruptcy trust concerning any asbestos injury to the exposed person has been filed.
Read the court decisionRead the full story...Reprinted courtesy of
Jennifer B. Pigeon, Lewis BrisboisMs. Pigeon may be contacted at
Jenna.Pigeon@lewisbrisbois.com
Construction Needs Collaborative Planning
January 20, 2020 —
Aarni Heiskanen - AEC BusinessWhat makes construction different from manufacturing is its dynamic nature. Unlike a systemized production plant, a construction site is a mesh of interconnected processes that are far from optimized. The traditional top-down planning practice does not solve problems on the construction site, as recent research reveals. Making planning collaborative is a necessary step in making construction less wasteful.
Everybody in the industry has felt frustration with inefficiencies in construction, but seeing the data is still disconcerting. I’ve had the pleasure of attending several workshops organized by the Finnish Aalto University’s research teams. These eye-opening events both revealed how much waste we have in construction today and suggested solutions to this problem.
Four Aalto University graduate students shared insights from their research at a workshop of the Waste Workgroup of the Building 2030 consortium. They focused on projects where takt production, a lean construction method, had been used. Takt production breaks the work down into equally timed work batches and typically shortens project lead time considerably—up to 50%. However, even these well-planned projects included waste and unnecessary movement, as the researchers found out.
Read the court decisionRead the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi