CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

COVID-19 and Mutual Responsibility Clauses

June 01, 2020 — Joseph M. Leone - ConsensusDocs
As everyone knows, there is a tremendous amount of uncertainty in the construction industry due to the COVID-19 pandemic. Schedules, productivity, safety processes, and seemingly everything else are being affected. In these difficult times, most contractors are making every effort to work together to solve the problems caused by COVID-19. But what happens when differences arise between project owners, contractors, and subcontractors as to the effect of COVID-19 on a project? One party may want to continue pushing the schedule, others may want to slow down, or, more likely, not be able to keep up with the original schedule because of some reason related to COVID-19. As between a prime contractor and a subcontractor, a mutual responsibility clause can provide some clarity or, unfortunately, depending on how the subcontract is written, confusion. Almost all subcontracts have a clause which flows down the prime contractor’s obligations on a project to the subcontractor as applicable to the subcontractor’s work. Known as “flow-down” clauses, this clause works in one direction; obligations of the prime contractor “flow-down” to the Subcontractor. A mutual responsibility clause, in essence, works in both directions. The subcontractor is required to perform its obligations consistent with the prime contractor’s obligations to the owner and the subcontractor is granted the same rights against the prime contractor which the prime contractor has against the owner. Obligations flow down and rights flow up. The rights and obligations flowing through the prime contractor include, the obligation to perform the work in accordance with the plans and specifications, the obligation to meet the schedule constraints in the prime agreement, and the right to extensions of time and change orders to the extent the prime contractor obtains the same. Read the court decision
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Reprinted courtesy of Joseph M. Leone, Drewry Simmons Vornehm, LLP
Mr. Leone may be contacted at jleone@dsvlaw.com

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Will There Be Construction Defect Legislation Introduced in the 2019 Colorado Legislative Session?

March 18, 2019 — David McLain - Colorado Construction Litigation Blog
With the 2019 Colorado legislative session well underway, the construction industry is waiting with bated breath to see what the Democrat controlled legislature might do with respect to construction defect legislation. In recent years, having a split legislature has prevented any attempts to roll back positive changes in the law, either from the legislature or Colorado courts, that have been hailed by the construction community. This year, odds are good that we will see at least one bill similar to two introduced last year that would hinder the ability to have disputes decided by binding arbitration. While not full frontal assaults on the Colorado Supreme Court decision in the Vallagio case, HB18-1261, the “Colorado Arbitration Fairness Act,” and HB 18-1262, the “Arbitration Services Provider Transparency Act,” would have negatively impacted the ability to resolve any type of case through arbitration. Anything that prevents the resolution of construction defect cases through arbitration will increase the judgments and settlements in such cases, ultimately increasing the costs of construction and for insurance for those in the industry. Read the court decision
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Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

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Insurer's Summary Judgment Motion to Reject Claim for Construction Defects Upheld

August 15, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The Third Circuit upheld the district court's order granting summary judgment in favor of the insurer on a claim seeking coverage for construction defects. Lenick Constr. v. Selective Way Ins. Co., 2018 U.S. App. LEXIS 15197 (3d Cir. June 6, 2018). Westrum was the general contractor for a 92 unit development, and it subcontracted with Lenick to perform rough and finish carpentry and to install paneling, windows, and doors provided by the developer. After the project was completed, it was discovered that some units experienced water infiltration, leaks and cracked drywall. The condominium development sued Westrum, alleging contract and warranty claims. Westrum impleaded Lenick, asserting claims for breach of contract and indemnification. Lenick sought a defense from its insurer, Selective. Selective defended under a reservation of rights. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Providing Notice of Claims Under Your Construction Contract

April 02, 2014 — Beverley BevenFlorez-CDJ STAFF
Craig Martin on his blog Construction Contractor Advisor explained the importance of knowing when to provide notice under your construction contract: “Time and time again, courts rule that contractors must follow notice requirements in order to submit a claim for additional time or compensation.” Martin cited the case JEM Contracting v. Morrison-Maierle, where the contractor provided verbal notice of a claim to the engineer, but failed to submit in writing until eighteen days later, which was past the notice requirement as stated in the contract. The judge denied the contractor’s claim and sided with the engineer and county. Read the court decision
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Inability to Confirm Coverage Supports Setting Aside Insured’s Default Judgment on Grounds of Extrinsic Mistake

January 21, 2019 — Christopher Kendrick & Valerie A. Moore - Haight Brown & Bonesteel LLP
In Mechling v. Asbestos Defendants (No. A150132, filed 12/11/18), a California appeals court affirmed the trial court’s grant of an insurer’s motion to set aside default judgments entered against its defunct insured pursuant to the trial court’s inherent, equitable power to set aside defaults on the ground of extrinsic mistake, thereby allowing the insurer to intervene and defend its own interests in the case. In Mechling, Fireman’s Fund insured Associated Insulation of California, which was named as a defendant in asbestos litigation filed in 2009. Associated had ceased operating in 1974, but was somehow successfully served with the complaint and defaulted, leading to default judgments of several million dollars. Notice of the judgments was served on Associated but not Fireman’s Fund. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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Blog Completes Seventeenth Year

January 07, 2025 — Tred R. Eyerly - Insurance Law Hawaii
Insurance Law Hawaii reaches the end of its seventeenth year this month. We began posting long ago, in December 2007. We seek to keep readers apprised of developments in insurance-related cases from Hawaii and across the country. Coverage issues surrounding the Maui fires have been top of mind this year. We will continue posting on important coverage developments in the next year. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Macron Visits Notre Dame 2 Years After Devastating Fire

April 26, 2021 — The Associated Press (Thomas Adamson & Jeffrey Schaeffer) - Bloomberg
Paris (AP) -- Two years after a fire tore through Paris’ most famous cathedral and shocked the world, French President Emmanuel Macron on Thursday visited the building site that Notre Dame has become to show that French heritage has not been forgotten despite the pandemic. Flanked by ministers, architects and the retired French army general who is overseeing the restoration of the 12th-century monument, Macron viewed the progress of the ambitious rebuilding project. He offered the pandemic-weary French public hope that a completion date will arrive one day, if not in the near future. “We're seeing here how, in two years, a huge job has been accomplished,” Macron said, recalling the “emotion” throughout France at the images of flames devouring Notre Dame on April 15, 2019. “We also see what remains to be done.” Read the court decision
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Reprinted courtesy of Bloomberg

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Falling Crime Rates Make Dangerous Neighborhoods Safe for Bidding Wars

March 19, 2015 — Heather Perlberg, Prashant Gopal and John Gittelsohn – Bloomberg
(Bloomberg) -- LaTasha Gunnels was outbid four times before she snagged a home in Anacostia, the southeast Washington, D.C. neighborhood that comes with a discount because of its reputation for drugs and crime. The 35-year-old nurse said the area, in a section of the city across a river from Capitol Hill known for its historically high murder rates, is changing rapidly. Buyers like Gunnels, priced out of costlier spots, helped lift values 21 percent in the Anacostia area in 2014, the biggest surge of any D.C. neighborhood, according to data provider Real Estate Business Intelligence. “I’m not going to sugarcoat it -- crime is still there -- but police officers are on every single corner and nobody has bothered me yet,” Gunnels said. “What I’m paying for my mortgage, people are paying for one-bedroom apartments in other parts of D.C.” Reprinted courtesy of Bloomberg reportersHeather Perlberg, Prashant Gopal, and John Gittelsohn Ms. Perlberg may be contacted at hperlberg@bloomberg.net Mr. Gopal may be contacted at pgopal2@bloomberg.net Mr. Gittelsohn may be contacted at johngitt@bloomberg.net Read the court decision
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