The Fair Share Act Impacts the Strategic Planning of a Jury Trial
May 10, 2017 —
Andrew Ralston, Jr. - White and Williams LLPComplex questions surrounding the application of the Fair Share Act, which modified Pennsylvania’s common law “joint and several” liability law, are being taken up by courts in the Commonwealth with increasing frequency. Given the practical consequences of the differences in application between the Act and “joint and several” liability, additional litigation over the application of the Fair Share Act to real world factual situations will undoubtedly arise.
Recent Caselaw
Currently, in Roverano v. PECO Energy, the Superior Court of Pennsylvania is considering the question of whether, under the Fair Share Act, the jury, or else the trial judge, is responsible for the task of apportioning liability to multiple defendants in a strict liability case. In Roverano – an asbestos case -- a jury awarded the plaintiff $6.3 million. On the verdict sheet were eight joint tortfeasor co-defendants. The judge did not allow the jury to apportion liability to each defendant and, as a result, no guidance was provided by the jury about how much each defendant was to contribute to the award. Instead, the judge merely divided the jury’s award by eight (the number of defendants in the case) and apportioned to each defendant one-eighth of the verdict amount.
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Andrew Ralston, Jr., White and Williams LLPMr. Ralston may be contacted at
ralstona@whiteandwilliams.com
Kumagai Drops Most in 4 Months on Building Defect: Tokyo Mover
June 11, 2014 —
Kathleen Chu and Kevin Buckland - BloombergKumagai Gumi Co. (1861), a Japanese construction company, fell the most in four months after saying an apartment complex it had built has defects.
The shares dropped 5.7 percent to 264 yen at the close of trading in Tokyo, the biggest decline since Feb. 4. Construction flaws in supporting pillars were found in the building completed in March 2003 in Yokohama City, south of Tokyo, the company said in a statement through the stock exchange today. The residents have been asked to relocate to temporary shelters and further investigation is required, it said.
“This is a big negative for Kumagai’s reputation and it may hurt the company’s future earnings,” said Yoji Otani, an analyst at Deutsche Bank AG in Tokyo.
The latest defect comes after Mitsubishi Estate Co. (8802) said in March it will rebuild a residential complex, constructed by Kajima Corp. (1812), in central Tokyo, after defects were found. Mitsui Fudosan Co. (8801) said it would repair some parts of an apartment building in Kawasaki City after the builder Shimizu Corp. (1803) found cracks in the concrete of some columns in April.
Ms. Chu may be contacted at kchu2@bloomberg.net; Mr. Buckland may be contacted at kbuckland1@bloomberg.net
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Kathleen Chu and Kevin Buckland, Bloomberg
General Contractor Supporting a Subcontractor’s Change Order Only for Owner to Reject the Change
December 09, 2019 —
David Adelstein - Florida Construction Legal UpdatesThe opinion in Westchester Fire Ins. Co, LLC v. Kesoki Painting, LLC, 260 So.3d 546 (Fla. 3d DCA 2018) leads to a worthy discussion because it involves a common scope of work occurrence on construction projects involving a general contractor and subcontractor. The contractor submits a subcontractor’s change order request to the owner and the owner rejects the change order. What happens next is a scope of work payment dispute between the general contractor and subcontractor. Yep, a common occurrence.
In this case, a general contractor hired a subcontractor to perform waterproofing and painting. A scope of work issue arose because the specifications did not address how the window gaskets should be cut and then sealed. The owner wanted the window gaskets cut at a 45-degree angle and the subcontractor claimed this resulted in increased extra work. The general contractor agreed and submitted a change order to the owner to cover these costs. The owner rejected the change order claiming it was part of the general contractor’s scope of work even though the cutting of window gaskets at a 45-degree angle was not detailed in the specifications.
After the subcontractor filed a suit against the general contractor’s payment bond surety, the project architect further rejected the change order because gasket cutting was part of the specification requirements. (Duh! What else was the architect going to say? It was not going to concede there was an omission that resulted in a change order to the owner, right?)
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Forum Selection Provisions Are Not to Be Overlooked…Even On Federal Projects
September 16, 2024 —
David Adelstein - Florida Construction Legal UpdatesForum selection provisions are NOT to be overlooked. Ever. Treat them seriously. Even on federal projects where there is a Miller Act payment bond. Consider forum selection provisions on the front end when negotiating your contract.
In a recent opinion, U.S. f/u/b/o Timberline Construction Group, LLC vs. Aptim Federal Services, LLC, 2024 WL 3597164 (M.D.Fla. 2024), a joint venture prime contractor was hired by the federal government to build a temporary housing site. The joint venture prime contractor obtained a Miller Act payment bond. The joint venture then entered into a subcontract with one of its joint venture members and the member-subcontractor then engaged a sub-subcontractor. The sub-subcontractor claimed it was owed $3.5 Million and sued the member-subcontractor, as well as the prime contractor’s Miller Act payment bond, in the Middle District of Florida. The member-subcontractor and the Miller Act payment bond sureties moved to transfer venue to the Middle District of Louisiana pursuant to a forum selection clause in the contract between the sub-subcontractor and the member-subcontractor. The contract provided that the exclusive venue would be a United States District Court located in Louisiana.
Forum selection provisions are analyzed in federal court under 28 U.S.C. 1404(a): “For the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought or to any district or division to which all parties have consented.” U.S. f/u/b/o Timberline, supra at *2. A forum selection provision is presumptively valid and given controlling weight. Id. (quotations and citations omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Record-Setting Construction in Fargo
November 07, 2012 —
CDJ STAFFPrairie Business reports that Fargo is experiencing the most new construction it has ever seen, totaling $434 million in value, which exceeds the previous high in 2006 of $428 million. Many of the construction starts are for single family homes, although there is also an increase in construction of apartments and townhomes.
The Home Builders Association of Fargo-Moorhead also noted that there was also a large of remodeling projects. Terry Becker, the president of the HBA, said that “remodeling is just huge right now.”
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As Laura Wreaks Havoc Along The Gulf, Is Your Insurance Ready to Respond?
October 19, 2020 —
Walter J. Andrews, Michael S. Levine, Andrea DeField & Meagan R. Cyrus - Hunton Insurance Recovery BlogAs Texas and Louisiana brace for Hurricane Laura to make landfall, policyholders in the affected regions should be making last minute preparations to ensure their properties are covered in the storm’s wake.
Hurricane Laura is expected to make landfall as a Category 4 storm tonight, or early Thursday morning between Houston, Texas and Lake Charles, Louisiana. With wind speeds reaching over 120 mph, Laura has the potential for catastrophic damage to life and property and long-term disruption of normal business operations. The following three steps are crucial to ensuring that you protect your property and business and maximize insurance proceeds should your property fall in the path of this storm:
- Locate a copy of your policy.
Having your policy on hand prior to a loss will aid in starting your claim as soon as possible, as it may be more difficult to get in touch with your broker following a storm where thousands of claims are taking place simultaneously.
Reprinted courtesy of
Walter J. Andrews, Hunton Andrews Kurth,
Michael S. Levine, Hunton Andrews Kurth,
Andrea DeField, Hunton Andrews Kurth and
Meagan R. Cyrus, Hunton Andrews Kurth
Mr. Andrews may be contacted at wandrews@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
Ms. DeField may be contacted at adefield@HuntonAK.com
Ms. Cyrus may be contacted at mcyrus@HuntonAK.com
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Quick Note: Staying, Not Dismissing, Arbitrable Disputes Under Federal Arbitration Act
July 31, 2024 —
David Adelstein - Florida Construction Legal UpdatesAs you hopefully know from posted articles, arbitration is a creature of contract. Stated differently, there must be a contractual basis to have a dispute resolved through binding arbitration. The Federal Arbitration Act (FAA) applies to transactions involving interstate commerce. Oftentimes, lawsuits are filed despite an arbitration provision in a contract because parties can, if they desire, waive their rights to have their dispute resolved through binding arbitration.
In what should not be a shocker, the United States Supreme Court in Smith v. Spizzirri, 144 S.Ct. 1173, 1178 (2024), held that when a federal “district court finds that a lawsuit involves an arbitrable dispute, and a party requests a stay pending arbitration, section 3 of the FAA compels the court to stay the proceeding.” Dismissing the lawsuit should not be the option. Staying the lawsuit should.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Limitations: There is a Point of No Return
September 06, 2023 —
Amy Anderson - ConsensusDocsAfter nearly any event that causes inefficiency, delay, or extra cost on a project, there are some things you should always do: review the contract and document the inefficiency, delay, or cost. However, how you document the particular issue likely changes depending on what is in your contract, your position on the project, and the outcome you hope to reach. In reviewing the inefficiency, delay, or cost, one thing to always consider is how long you have to actually recoup damages you may incur if they were caused by another party on the project. In every jurisdiction (state or federal), there is likely to be some outer limit to when you can bring litigation or arbitration against an opposing party to recover damages another party causes to you. This is generally called a statute of limitations or statute of repose, although it goes by other names depending on your state.
The length of time will be specific to the locality. For example, in Texas, you have four years to bring a breach of contract claim but only two years to bring a negligence claim. Whether you fall under the two year or four year period may be highly fact intensive, depending on your claims. Do you have a contract directly with the party that is at fault? Is the claim based on your contract or some tort outside of the contract?
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Amy Anderson, Jones Walker LLP (ConsensusDocs)Ms. Anderson may be contacted at
aanderson@joneswalker.com