“Slow and Steady Doesn’t Always Win the Race” – Applicability of a Statute of Repose on Indemnity/Contribution Claims in New Hampshire
November 24, 2019 —
Rahul Gogineni - The Subrogation StrategistIn Rankin v. South Street Downtown Holdings, Inc., 2019 N.H. LEXIS 165, the Supreme Court of New Hampshire considered, pursuant to a question transferred by the trial court, whether RSA 508:4-b, the statute of repose for improvements to real property, applies to indemnity and contribution claims. The court concluded that based upon the plain reading of the statute, it applies to indemnity and contribution claims. As noted by the court, a holding to the contrary would violate the intent of a statute of repose, which is to establish a time limit for when a party is exposed to liability.
In Rankin, after falling and injuring himself while leaving a building, John Rankin and his wife brought an action against the property owner, South Street Downtown Holding, Inc. (South Street) in 2017. South Street subsequently filed a third-party complaint against multiple parties including an architectural company, Wagner Hodgson, Inc. (Wagner), who was involved in a renovation project at the property. The project was substantially complete in 2009. Wagner responded by moving to dismiss the action, arguing that South Street’s indemnification and contribution claims were barred by the applicable statute of repose.
RSA 508:4-b specifically states,
Except as otherwise provided in this section, all actions to recover damages for injury to property, injury to the person, wrongful death or economic loss arising out of any deficiency in the creation of an improvement to real property, including without limitation the design, labor, materials, engineering, planning, surveying, construction, observation, supervision or inspection of that improvement, shall be brought within 8 years from the date of substantial completion of the improvement, and not thereafter. (Emphasis added).
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Rahul Gogineni, White and Williams LLPMr. Gogineni may be contacted at
goginenir@whiteandwilliams.com
The Drought Is Sinking California
August 19, 2015 —
Jennifer Oldham – BloombergLand in California’s central valley agricultural region sank more than a foot in just eights months in some places as residents and farmers pump more and more groundwater amid a record drought.
The ground near Corcoran, 173 miles (278 kilometers) north of Los Angeles, dropped about 1.6 inches every 30 days. One area in the Sacramento Valley was descending about half-an-inch per month, faster than previous measurements, according to a report released Wednesday by the Department of Water Resources. NASA completed the study by comparing satellite images of Earth’s surface over time.
“Groundwater levels are reaching record lows -- up to 100 feet lower than previous records,” Mark Cowin, the department’s director, said in a statement. “As extensive groundwater pumping continues, the land is sinking more rapidly and this puts nearby infrastructure at greater risk of costly damage.”
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Jennifer Oldham, Bloomberg
Ex-Engineered Products Firm Executive Convicted of Bid Rigging
March 06, 2022 —
James Leggate - Engineering News-RecordA federal jury convicted a former executive at an engineered construction products firm Feb. 1 for his role in a bid-rigging scheme that targeted the North Carolina Dept. of Transportation.
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James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
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Alabama Supreme Court States Faulty Workmanship can be an Occurrence
July 16, 2014 —
Beverley BevenFlorez-CDJ STAFFCarl A. Salisbury of Kilpatrick Townsend & Stockton LLP in his Lexology article, stated that “it is now official and final: Alabama is no longer one of the outlier jurisdictions on the issue of coverage for faulty workmanship.”
In the case Owners v. Jim Carr Homebuilders, in September 2013 the Alabama Supreme Court had “sided with insurers in holding that construction defects can never be accidental and, therefore, can never be covered by Commercial General Liability insurance.” However, in March “the Court withdrew that decision and reversed course,” holding “that faulty workmanship can, in fact, constitute a covered ‘occurrence,’ which CGL policies define as ‘an accident, including continuous or repeated exposure to the same generally harmful conditions.’”
“This is obviously good news for construction contractors that do work in the state of Alabama,” Salisbury stated. “It is also good news for policyholders in general as it continues the strong trend among state high courts that have been finding in favor of coverage in this important area of insurance law.”
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When Construction Contracts Go Sideways in Bankruptcy
February 16, 2017 —
Tracy Green - California Construction Law BlogThe contractor on a project files a bankruptcy case. How should the property owner and subcontractors proceed? When a party to a contract files bankruptcy, the other party’s actions are constrained by the bankruptcy code.
Types of Bankruptcies
The typical bankruptcy case involves a chapter 7 complete liquidation, chapter 13 reorganization for an individual, or a chapter 11 reorganization or liquidation. In a chapter 7 the business ceases to operate and a panel trustee is appointed immediately upon the filing of the case. The chapter 7 trustee’s duties are to liquidate assets for the benefit of creditors and to prosecute litigation that can result in assets for the creditors. In a chapter 13, the individual debtor continues to operate, and there is a trustee, but the trustee’s roll is limited to reviewing the chapter 13 plan and making sure that the plan is performed. In a chapter 11, the debtor retains control of its assets and continues to operate its business until a plan is confirmed. During the chapter 11 period before a plan is approved, the debtor will decide which contracts it wants to assume or reject, all while operating the company and preparing a plan.
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Tracy Green, Wendel Rosen Black & Dean LLPMs. Green may be contacted at
tgreen@wendel.com
Ambush Elections are Here—Are You Ready?
May 07, 2015 —
Craig Martin – Construction Contractor AdvisorOn April 14, 2015, the National Labor Relations Board’s new election rule went into effect. The new rule, which shortens the time frame for union elections, will make it easier for unions to organize. Employers must get prepared now, not when they hear about an election. As the NLRB Members who dissented from the final rule noted:
"The Final Rule has become the Mount Everest of regulations: Massive in scale and unforgiving in its effect. Very few people will have the endurance to read the Final Rule in its entirety."
Here are some highlights of the new rule:
- Within 2 business days after service of the Notice of the Pre-Election Hearing, the employer must post a Notice of Petition for Election. The employer must also distribute the notice via e-mail if the employer customarily communicates with employees via e-mail.
- A Pre-Election hearing will be scheduled within 8 days from the Notice.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Mitigating Mold Exposure in Manufacturing and Multifamily Buildings
July 31, 2024 —
Laura Champagne - Construction ExecutiveAs hurricanes season and summer storms approach, more apartment complexes, commercial and industrial properties, and public buildings are at risk of leaking and flooding. Water-saturated structures are prime breeding grounds for mold, but there are ways to prevent, detect and remove it before it becomes a serious and costly issue—for buildings and building residents alike. Being proactive limits an owner’s exposure to the liability of debilitating health effects and structural safety concerns.
Mold requires three things to grow: water, food and humidity. Water will stealthily penetrate small porous surfaces of any building material, such as drywall, plaster, wood, concrete or even fabrics. These materials serve as a food source to quickly produce more fungus. Common sources of undetected water flow include foundation problems, poorly installed windows, roof malfunctions, gutter clogs, storm damage, leaky pipes, improper drainage, HVAC issues, faulty appliances, bathroom vent issues and wet building materials. Mold loves humidity and thrives in dark, warm environments, such as attics, basements, lofts, building corners and bathrooms.
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Laura Champagne, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Nevada Court Adopts Efficient Proximate Cause Doctrine
February 10, 2012 —
Tred R. Eyerly - Insurance Law HawaiiAlthough the Nevada Supreme Court adopted the efficient proximate cause doctrine, it determined it did not apply to salvage coverage under an all-risk policy for a rain-damaged building. Fourth Street Place, LLC v. The Travelers Indemn. Co., 2011 Nev LEXIS 114 (Nev. Dec. 29, 2011).
Fourth Street owned an office building which was insured by an all-risk policy issued by Travelers. Fourth Street hired Above It All Roofing to repair the roof of the office building. Above It All removed the waterproof membrane on the roof and prepared to replace the membrane the following week. Over the weekend, however, substantial rain hit. On Sunday, Above It All returned to cover the exposed portions of the roof with tarps, but wind later blew the tarps away. The building suffered significant interior damage as it continued to be exposed to the rain.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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