2017 California Employment Law Update
January 13, 2017 —
Evelin Y. Bailey - California Construction Law BlogBelow are some of the new laws going into effect this year that affect the construction industry. Unless otherwise noted, the laws go into effect on January 1, 2017.
Public Works and Prevailing Wages
You can read more about the new laws—AB 326, AB 1926 and SB 954—relating to public works and prevailing wages in an earlier blog post.
Employment Contracts
Choice of Forum and Choice of Law. Under SB 1241, an employer cannot require an employee who primarily works and resides in California to agree to file a lawsuit or bring a claim in another state when the claim arises in California. This is usually referred to as the choice of forum clause.
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Evelin Y. Bailey, Wendel Rosen Black & Dean LLP Ms. Bailey may be contacted at
ebailey@wendel.com
Michigan Court of Appeals Remands Construction Defect Case
February 14, 2022 —
Tred R. Eyerly - Insurance Law HawaiiAfter its prior decision holding there was no coverage for faulty workmanship was remanded by the Michigan Supreme Court, the Court of Appeals remanded to the trial court. Skanska United States Bldg. v. M.A.P. Mech. Contrs., 2021 Mich. App. LEXIS 7336 (Mich. Ct. App. Dec. 28, 2021). The post summarizing the Supreme Court decision is here.
Skanska USA Building was the construction manager on a renovation project at a medical center. Skanska subcontracted the heating and cooling portion of the project to defendant M.A.P. MAP held a CGL policy from Amerisure. Skanska and the medical center were named as additional insureds.
MAP installed a steam boiler and related piping for the heating system. When completed, the heating system did not function properly. MAP installed some of the expansion joints backwards, causing damage to concrete, steel, and the heating system.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Construction Defect Class Action Lawsuit Alleges National Cover-up of Pipe Defects
December 10, 2015 —
Beverley BevenFlorez-CDJ STAFFTwo Miami condominium associations have filed suit “concerning defective fire sprinkler systems and a national cover up over a significant life safety issue in multi-unit condominiums in Florida and across the country.”
The attorneys representing the class action lawsuit, Gonzalez, Montoya, Siegfried, Sobel, and Hale, “believe that the problem is nationwide and that monetary damages arising from the claims will exceed $1 billion,” a press release by Colson Hicks Eidson stated. “The 56-count lawsuit filed against a dozen manufacturers, suppliers and distributors seeks compensatory, incidental and consequential damages.”
According to CBS Miami, “The suit claims the companies knowingly used [a] chemical that caused cracks and leaks in pipes that affected the water pressure in sprinkler systems.”
Plaintiff attorneys claim that the cost to repair each building is estimated at between $50 to $100 million each.
Read the full story, Press Release...
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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…
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Deadline for Hurricane Ian Disaster Recovery Applications Announced
October 17, 2022 —
Lewis BrisboisWashington, D.C. (October 11, 2022) - On Friday, October 7, 2022, the Florida Division of Emergency Management (FDEM) announced that applications for the Federal Emergency Management Agency’s (FEMA) Public Assistance Grant Program are due by October 29, 2022.
FEMA provides disaster recovery assistance to eligible individuals, families, governments, and private non-profit entities. However, the process for recovering costs is complicated, and FEMA has broad discretion to determine whether applicants and their expenses are eligible. All too often, failure to understand FEMA regulations or submit sufficient documentation results in FEMA denying applicants’ claims, leaving individuals, local governments, and non-profits to bear the full cost of recovery.
While ensuring successful recovery through the FEMA grant program can be challenging, clients can increase their likelihood of success when preparing the initial application and documentation by enlisting experienced legal counsel who understand the FEMA process and regulations.
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Lewis Brisbois
Professional Liability Alert: Joint Client Can't Claim Privilege For Communications With Attorney Sued By Another Joint Client
February 05, 2015 —
David W. Evans and Stephen J. Squillario – Haight Brown & Bonesteel LLPIn Anten v. Superior Court (No. B258437 – Filed 1/30/2015), the Second Appellate District held that when joint clients do not sue each other, but one of them sues their former attorney, the nonsuing client cannot prevent the parties to the malpractice suit from discovering or introducing otherwise privileged attorney-client communications made in the course of the joint representation.
Under California Evidence Code §958, in lawsuits between an attorney and a client based on an alleged breach of a duty arising from their attorney-client relationship, communications relevant to the alleged breach are not protected by the attorney-client privilege. Similarly, Evidence Code §962 provides that if multiple clients retain or consult with an attorney on a matter of common interest and the joint clients later sue each other, then the communications between either client and the attorney made in the course of that relationship are not privileged in the suit between the clients.
Reprinted courtesy of
David W. Evans, Haight Brown & Bonesteel LLP and
Stephen J. Squillario, Haight Brown & Bonesteel LLP
Mr. Evans may be contacted at devans@hbblaw.com; Mr. Squillario may be contacted at ssquillario@hbblaw.com
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Labor Intensive
May 10, 2022 —
Neil Flynn - Construction ExecutiveIn 2020, the United States saw a significant decrease in non-fatal workplace injuries, which dropped to 2.1 million from 2.8 million the year before. While the precise extent to which this reduction in workplace injuries is attributable to COVID-19 is unknown, the pandemic was undoubtedly a significant factor. It is also unclear to what extent the pandemic affected the number and rate of workplace incidents in 2021 or might continue to do so in 2022 and beyond.
However, it is reasonable to expect that, as pandemic-related restrictions are removed and life returns to normal, the construction industry will revert to pre-pandemic employment levels and beyond. It is also reasonable to conclude that, once that level of recovery is attained, the number and rate of both fatal and non-fatal workplace incidents will increase substantially.
Even with the significant reduction in the overall number of workplace injuries in 2020, the United States still saw nearly 8,000 construction workers miss at least one day of work due to an injury sustained on the job, according to the U.S. Bureau of Labor Statistics (BLS). And, despite construction accounting for just 6% of jobs, BLS reports that construction-related incidents account for 20% of workplace deaths, or three every day. This one-fifth share of workplace fatalities makes construction the third-deadliest industry in the United States.
Reprinted courtesy of
Neil Flynn, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Flynn may be contacted at
nf@plattalaw.com
Client Alert: Restaurant Owed Duty of Care to Driver Killed by Third-Party on Street Adjacent to Restaurant Parking Lot
January 07, 2015 —
R. Bryan Martin, Lawrence S. Zucker II, & Kristian B. Moriarty – Haight, Brown, & Bonesteel, LLPIn Annocki v. Peterson Enterprise, LLC, (Filed 11/14/2014, Certified for Publication 12/5/2014, No. B251434) the Court of Appeal, Second District, held a restaurant owed a duty of care to the driver of a motorcycle who died as a result of the negligent driving of a third party exiting the restaurant’s parking lot.
Decedent, Joseph M. Annocki, was driving his motorcycle on Pacific Coast Highway in Malibu, when it collided with the vehicle operated by Terry Allen Turner, who was exiting the parking lot of “Geoffrey’s" restaurant, which was owned and operated by the Defendant, Peterson Enterprise, LLC (“Peterson”).
The parents of the decedent (“Plaintiffs”) filed suit against Peterson, alleging Peterson failed to adequately staff the restaurant parking lot, which caused Turner to become confused and make an illegal left turn onto Pacific Coast Highway, thereby causing the accident that killed decedent. Plaintiffs further alleged Peterson knew, or should have known, that its parking lot and driveway were designed and in such condition as to create a danger of decreased visibility of the adjacent highway, and failed to adequately provide signage directing patrons that only right turns could be made onto Pacific Coast Highway.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
R. Bryan Martin,
Lawrence S. Zucker II and
Kristian B. Moriarty
Mr. Martin may be contacted at bmartin@hbblaw.com
Mr. Zucker may be contacted at lzucker@hbblaw.com
Mr. Moriarty may be contacted at kmoriarty@hbblaw.com
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