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California Supreme Court Holds that Requirement of Prejudice for Late Notice Defense is a Fundamental Public Policy of the State for Choice of Law Analysis

November 04, 2019 — Lorelie S. Masters, Michael S. Levine & Michelle M. Spatz - Hunton Insurance Recovery Blog
California’s highest court held yesterday in Pitzer College v. Indian Harbor Insurance Co., that the state’s insurance notice-prejudice rule is a “fundamental public policy” for the purpose of choice of law analyses. This unanimous ruling, issued in response to certified questions from the Ninth Circuit, confirms and emphasizes California’s common law rule that policyholders who provide “late notice” may proceed with their insurance claim, absent a showing by the insurer of substantial prejudice. The California Supreme Court also extended the prejudice requirement, holding that a first-party insurer must show that it was prejudiced before denying coverage under a policy’s “consent provision,” which typically provides that the policyholder must obtain the insurer’s “consent” before incurring costs and expenses. Reprinted courtesy of Hunton Andrews Kurth attorneys Lorelie S. Masters, Michael S. Levine and Michelle M. Spatz Ms. Masters may be contacted at lmasters@HuntonAK.com Mr. Levine may be contacted at mlevine@HuntonAK.com Ms. Spatz may be contacted at mspatz@HuntonAK.com Read the court decision
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Superior Court Of Pennsylvania Holds That CASPA Does Not Allow For Individual Claims Against A Property Owner’s Principals Or Shareholders

January 07, 2015 — William J. Taylor and Michael Jervis – White and Williams LLP
In Scungio Borst Assocs. v. 410 Shurs Lane Developers, LLC, the Superior Court of Pennsylvania held that an individual principal/shareholder of a property owner could not be held personally liable as an “agent of the owner” for unpaid invoices, penalties, and attorneys fees under the Pennsylvania Contractor and Subcontractor Payment Act (CASPA), 73 P.S. §§ 501-516, even though the property owner itself had failed to make payments allegedly due under a construction contract. CASPA is a Pennsylvania statute which is designed to protect contractors and subcontractors from nonpayment and which, to that end, establishes rules and deadlines for payment under construction contracts between property owners, contractors, and subcontractors. An owner or contractor who does not adhere to the Act’s payment requirements is subject to the imposition of interest, penalties, and attorneys’ fees. In this recent case, the property owner, a limited liability company, had retained the plaintiff contractor to perform construction services on a condominium project. Upon completion of the work, the contractor was not paid approximately $1.5 million that it was owed under the contract. The contractor filed suit under CASPA to obtain the payment it was owed plus interest, penalties and fees, and named both the property owner and its individual principal as defendants. The trial court granted summary judgment to the individual principal on all claims asserted against him, and the contractor appealed, arguing that CASPA allows for claims against both a property owner and its principal when the principal is an “agent of the owner acting with the owner’s authority.” Reprinted courtesy of Michael Jervis, White and Williams LLP and William J. Taylor, White and Williams LLP Mr. Jervis may be contacted at jervism@whiteandwilliams.com; Mr. Taylor may be contacted at taylorw@whiteandwilliams.com Read the court decision
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California Reinstates COVID-19 Supplemental Paid Sick Leave

February 21, 2022 — Jessica L. Daley - Newmeyer Dillion
On February 9, 2022, Governor Newsom signed California Legislature Senate Bill 114 (SB 114), which reinstates supplemental paid sick leave for qualifying reasons relating to COVID-19. Employers may recall SB 95, which expired on September 30, 2021, and was substantially similar to SB 114. Like its predecessor, SB 114 applies to employers with 26 or more employees and provides up to 80 hours of supplemental paid sick leave to full-time employees who are unable to work (including telework) for a reason relating to COVID-19. While this legislation goes into effect on February 19, 2022, it will retroactively apply back to January 1, 2022 and remain in effect until September 30, 2022. REASONS FOR LEAVE – TWO PERIODS Unlike SB 95, SB 114 breaks the total possible 80 hours of COVID-19 Supplemental Paid Sick Leave (CSPL) for full-time employees into two 40-hour periods. Read the court decision
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Reprinted courtesy of Jessica L. Daley, Newmeyer Dillion
Ms. Daley may be contacted at jessica.daley@ndlf.com

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Wall Failure Due to Construction Defect Says Insurer

October 09, 2013 — CDJ STAFF
A wall built by J. F. Smith Construction collapsed during Hurricane Isaac, and Bankers Insurance Group is blaming the builder not the hurricane. The insurer claims that if the wall had been built properly it would have withstood the storm. The suit is being filed in the Louisiana courts. Bankers Insurance is seeking $49,625.25 in damages. Read the court decision
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Real Estate & Construction News Roundup (6/26/24) – Construction Growth in Office and Data Center Sectors, Slight Ease in Consumer Price Index and Increased Premiums for Commercial Buildings

July 22, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, U.S. interest rates remain uncertain, construction firms continue to use artificial intelligence, New York City updates commercial zoning regulations, and more!

• According to analysts, high vacancy rates and declining rents have hurt San Francisco’s office market so badly that it could take almost 20 years to recover. (Eric McConnell, Yahoo)
• The New York City Council approved updated commercial zoning regulations that expand where businesses can be located in the city, more than double the space for small-scale clean manufacturing, and enable adaptive reuse projects involving existing buildings. (Joe Burns, Construction Dive)
• The insurance industry is responding to the proliferation of extreme weather events and the risks associated with operating commercial buildings in vulnerable areas by increasing premiums. (Renea Burns, Tim Coy, Niall Williams, Deloitte)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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2025 Construction Law Update

January 07, 2025 — Garret Murai - California Construction Law Blog
It’s that time of year again. The second half of the 2023-2024 legislative session saw the introduction of 2,124 bills, of which, 1418 were signed into law. Among the bills signed by the governor impacting contractors is an increase in the small work licensing exemption for $500 to $1,000, the licensing of Indian tribes by the CSLB, and a number of project-specific bills, as is typical, related to project-specific alternative project delivery methods. Wishing you and yours a great 2025! Licensing AB 2622 – Increases the small work licensing exemption from $500 to $1,000 provided that the work: (1) does not require a building permit; and (2) does not involve the employment of others to perform or assist in the work. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Why A Jury Found That Contractor 'Retaliated' Against Undocumented Craft Worker

August 22, 2022 — Richard Korman - Engineering News-Record
On May 10, 2017, a Boston wall taper who had broken his leg in a fall from a ladder during work six weeks earlier took his two-year-old son to an office of a West Bridgewater, Mass.-based contractor, on the invitation of the CEO who asked him to come and gave the worker $500 to help him get by while recovering. Reprinted courtesy of Richard Korman, Engineering News-Record Mr. Korman may be contacted at kormanr@enr.com Read the full story... Read the court decision
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Alleged Damage to Personal Property Does Not Revive Coverage for Construction Defects

November 23, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The Illinois Appellate Court determined the general contractor was not covered for construction defects despite allegations of damage to personal property. Wesfield Ins. Co. v. West Van Buren, LLC, 59 N.E. 2d 877, (Ill. Ct. App. 2016). The developer constructed a condominium development in Chicago. The installation of the roof was contracted to Total Roofing. Total Roofing agreed to insure and indemnify the developer against liability for Total Roofing's work. Total Roofing obtained a CGL policy with Westfield Insurance Company listing the developer as an additional insured. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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