Contract Change #9: Owner’s Right to Carry Out the Work (law note)
March 28, 2018 —
Melissa Dewey Brumback - Construction Law in North CarolinaIn prior versions of the General Conditions, if a contractor defaulted and the Owner (after giving notice) opted to cure by carrying out the work itself, an appropriate Change Order would be issued. However,
a Change Order is a contract that requires an agreement by both the Owner and Contractor, and, obviously, Contractors were reluctant to agree that they were in default and responsible for a deductive change order.
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Melissa Dewey Brumback, Construction Law in North Carolina
Fifth Circuit Decision on Number of Occurrences Underscores Need to Carefully Tailor Your Insurance Program
December 19, 2018 —
Michael S. Levine & Daniel Hentschel - Hunton Insurance Recovery BlogThe Fifth Circuit in Evanston Insurance Co. v. Mid-Continent Casualty Co. recently held that multiple collisions caused by the same insured driver over a span of 10 minutes constitute a single occurrence subject to a $1 million limit in the insured’s primary policy with Mid-Continent. The holding reversed a lower court’s ruling that Mid-Continent is liable for an additional sum the excess insurer, Evanston, paid to resolve all of the claims arising from the collisions. At issue, a fundamental question about causation and coverage under commercial liability insurance.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Daniel Hentschel, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Hentschel may be contacted at dhentschel@HuntonAK.com
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Hawaii Court of Appeals Finds Insured AOAO Not Liable for Securing Inadequate Insurance
March 04, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Hawaii Intermediate Court of Appeals (ICA) affirmed the trial court's finding that the insured Association of Apartment Owners (AOAO) was not liable for securing a policy with inadequate coverage. AOAO Queen Emma Gardens, et al v. Wa, 2023 Haw. App. LEXIS 400 (Haw. Ct. App. Dec. 19, 2023).
In October 2002, the Was purchased a condominium located in the Queen Emma Gardens Condominium. The AOAO's bylaws provided that it would procure and maintain insurance "to insure the Board, the Association, and each apartment owner against claims for personal injury, death, and property damage arising out of the condition of the property or activities thereon . . ." The AOAO secured a CGL policy from Insurance Association, Inc., with coverage limits for bodily injury at $1,000,000 and an umbrella policy providing an additional $5,000,000 of coverage. Each of the policies "insured each individual insurance owner of the insured condominium, but only with respect to liability arising out of the ownership, maintenance or repair of that portion of the premises which is not reserved for that unit owner's exclusive use or occupancy."
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Let it Shine: California Mandates Rooftop Solar for New Residential Construction
May 16, 2018 —
Garret Murai - California Construction Law BlogCalifornia. Birthplace of the Frisbee, skateboard, television, canned tuna and (yup) fortune cookies has added another first to the list: California has become the first state in the nation to mandate the use of solar panels for new residential construction.
On May 9, 2018, the California Energy Commission (CEC) unanimously approved the state’s 2019 Building Energy Efficiency Standards. The 2019 Energy Efficiency Standards update the California Building Standards Codes found at Title 24 of the California Code of Regulations which are updated every three years. The 2019 Energy Efficiency Standards go into effect on January 1, 2020.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Performing Work with a Suspended CSLB License Costs Big: Subcontractor Faces $18,000,000 Disgorgement
September 17, 2015 —
Steven M. Cvitanovic & David A. Harris – Haight Brown & Bonesteel LLPIn what could lead to a draconian result, the Court of Appeal for the First Appellate District held that a contractor who performs work without a valid license can be required to disgorge all payments received, even if the contractor perfectly performed its work. The case, Judicial Council of California v. Jacobs Facilities, Inc. (Ct. of Appeal, 1st App. Dis., Div. One, A140890, A141393), involved an $18,000,000 contract between Jacobs Facilities, Inc. (“Jacobs Facilities”) and the Judicial Council of California (“Judicial Council”). In April 2006, Jacobs Facilities, a wholly owned subsidiary of Jacobs Engineering Group, Inc. (“Jacobs Engineering”) entered into a three year contract with the Judicial Counsel to maintain 121 courthouses and other judicial branch buildings throughout Southern California (the “Contract”). Jacobs Facilities contracted to provide maintenance and oversight services, while retaining subcontractors to perform the actual maintenance and repair work.
In December 2006, as part of a corporate reorganization, Jacobs Engineering started winding up Jacobs Facilities and transferred its employees to Jacobs Engineering and then subsequently to another wholly owned subsidiary called Jacobs Project Management Co. (“Jacobs Management”). The work that was performed by Jacobs Facilities was taken over by Jacobs Management. As part of the windup, Jacobs Facilities’ Contractor’s State License Board license was allowed to lapse and the license expired by operation of law in November 2008. Although Jacobs Management was now performing the work, it was not added as a party to the contract. Although it appears Judicial Council was aware of the corporate changes, it was not until November 2009 that the parties assigned the contract to Jacobs Management.
Reprinted courtesy of
Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and
David A. Harris, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com
Mr. Harris may be contacted at dharris@hbblaw.com
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Generally, What Constitutes A Trade Secret Is A Question of Fact
February 01, 2021 —
David Adelstein - Florida Construction Legal UpdatesIn construction, contractors maintain competitiveness by compiling, combining, utilizing, or developing proprietary and unique systems. The systems can be from a cost standpoint (determining general conditions or general requirement costs and percentages including percentages for insurance) or can be with respect to certain construction assembly or delegated design components. Such proprietary and unique systems are trade secrets to the contractors and efforts are taken to identify such information as confidential when proposing on a project. Contractors would not want such systems disclosed to others because it would dilute and impact what they believe is valuable and makes them competitive in the marketplace.
Florida’s Uniform Trade Secret Act (“FUTSA”) creates a statutory cause of action for the misappropriation of trade secrets. (FUTSA is set forth in Florida Statute s. 688.001 en seq.) FUTSA displaces or “preempts all claims [such as common law claims] based on misappropriation of trade secrets.” Alphamed Pharmaceuticals Corp. v. Arriva Pharmaceuticals, Inc., 391 F.Supp.2d 1148, 1167 (S.D.Fla. 2005). See also Fla. Stat. s. 688.008.
Florida Statute s. 688.002 (found here) defines the terms “trade secret” and “misappropriation.”
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Connecting IoT Data to BIM
September 04, 2018 —
Aarni Heiskanen - AEC BusinessInternet of Things sensors and IoT-capable devices provide a huge amount of data from buildings. To make this data useful and usable for research, Aalto University is developing and testing a service that links IoT with building information models, BIMs.
“The idea to start an experiment on linking IoT with BIM at the Otaniemi campus originated from discussions we had within professor Martti Mäntylä’s Aalto campus IoT group. We realized that several small research projects were simultaneously testing IoT here. So we decided to create a framework for sharing information between the projects,” says Seppo Törmä, CEO of VisuaLynk.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Daiwa House to Invest 150 Billion Yen in U.S. Rental Housing
March 07, 2014 —
Kathleen Chu – BloombergDaiwa House Industry Co. (1925), Japan’s biggest homebuilder by market value, plans to invest 150 billion yen ($1.48 billion) in U.S. rental housing, three times more than it had aimed to allocate to overseas investments, to boost revenue.
Daiwa House will acquire and develop leasing properties in Texas and allocate the funds over the next three years, the Osaka-based company said in an e-mailed statement today. The homebuilder targets 50 billion yen of revenue in the U.S. by the year ending March 2019, it said.
Japan’s shrinking population has prompted the country’s homebuilders such as Daiwa House to seek new revenue sources. Texas is the most that Daiwa House is investing overseas for rental housing and compares with the 50 billion yen the company had announced for investments abroad in its mid-term plan in November.
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Kathleen Chu, BloombergMs. Chu may be contacted at
kchu2@bloomberg.net