Enforcement Of Contractual Terms (E.G., Flow-Down, Field Verification, Shop Drawing Approval, And No-Damage-For-Delay Provisions)
May 04, 2020 —
David Adelstein - Florida Construction Legal UpdatesWhat you contractually agree to matters, particularly when you are deemed a sophisticated entity. This means you can figuratively live or die by the terms and conditions agreed to. Don’t take it from me, but it take it from the Fourth Circuit’s decision in U.S. f/u/b/o Modern Mosaic, Ltd. v. Turner Construction Co., 2019 WL 7174550 (4th Cir. 2019), where the Court started off by stressing, “One of our country’s bedrock principles is the freedom of individuals and entities to enter into contracts and rely that their terms will be enforced.” Id. at *1.
This case involved a dispute between a prime contractor and its precast concrete subcontractor on a federal project. The subcontractor filed a Miller Act payment bond lawsuit. The trial court ruled against the subcontractor based on…the subcontract’s terms! So, yes, what you contractually agree to matters.
Example #1 – The subcontractor fabricated and installed precast concrete panels per engineering drawings. However, the parking garage was not built per dimensions meaning the panels it fabricated would not fit. The subcontractor had to perform remedial work on the panels to get them to fit. The subcontractor pursued the prime contractor for these costs arguing the prime contractor should have field verified the dimensions. The problem for the subcontractor, however, was that the subcontract required the subcontractor, not the prime contractor, to field verify the dimensions. Based on this language that required the subcontractor to field verify existing conditions and take field measurements, the subcontractor was not entitled to its remedial costs (and they were close to $1 Million). Furthermore, and of importance, the Court noted that the subcontract contained a flow down provision requiring the subcontractor to be bound by all of the terms and conditions of the prime contract and assume those duties and obligations that the prime contractor was to assume towards the owner. While this flow-down provision may often be overlooked, here it was not, as it meant the subcontractor was assuming the field verification duties that the prime contractor was responsible to perform for the owner.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Slowing Home Sales Show U.S. Market Lacks Momentum: Economy
August 27, 2014 —
Lorraine Woellert – BloombergThe pace of new-home sales fell to the slowest in four months in July, signaling U.S. real estate lacks the vigor to propel faster growth in the economy.
Purchases unexpectedly declined 2.4 percent to a 412,000 annualized pace, weaker than the lowest estimate of economists surveyed by Bloomberg, Commerce Department data showed today in Washington. June purchases were revised up to a 422,000 rate after a May gain that was also bigger than previously estimated.
Housing has advanced in fits and starts this year as tight credit and slow wage growth kept some prospective buyers from taking advantage of historically low borrowing costs. Bigger job and income gains, along with a further slowdown in price appreciation, would help make properties more affordable.
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Lorraine Woellert, BloombergMs. Woellert may be contacted at
lwoellert@bloomberg.net
Liability Policy’s Arbitration Endorsement Applies to Third Party Beneficiaries, Including Additional Insureds
May 11, 2020 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Philadelphia Indemnity Ins. Co. v. SMG Holdings, Inc. (No. C082841; filed 12/31/19, ord. pub. 1/28/20), a California appeals court held that a binding arbitration clause in an insurance policy extends to a third party, such as an additional insured.
In Philadelphia v. SMG, Philadelphia issued a general liability policy to a youth organization, Future Farmers of America (FFA), that had contracted to use the Fresno Convention Center for its annual convention. The contract required FFA to obtain liability insurance and to name the property manager, SMG, and the City of Fresno, as additional insureds. Philadelphia issued FFA a commercial lines CGL policy with an endorsement affording coverage to “managers, landlords, or lessors of premises” for “liability arising out of the ownership, maintenance or use of that part of the premises leased or rented” to the named insured. It also covered “any person or organization where required by a written contract executed prior to the occurrence” but only for liability arising from the named insured’s negligence.
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
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Developer Transition – Washington DC Condominiums
June 29, 2017 —
Nicholas D. Cowie - Maryland Condo Construction Defect Law BlogDeveloper transition is the process by which governance over a condominium unit owners’ association (“condominium association”) is transferred from condominium developer to unit owner control. Below is an overview of the legal requirements in the District of Columbia that govern this transition process as well as a “transition checklist” for unit owner-elected boards of directors that have recently transitioned from developer control.
TRANSITION LAW OVERVIEW
PERIOD OF DEVELOPER CONTROL
A developer initially controls a condominium association because it owns all unsold units in the newly created condominium. As such, the condominium developer has the controlling votes associated with majority ownership and can appoint its own employees as the initial members of the board of directors and thereby control how the association conducts its affairs. This is referred to as the “period of developer control,” during which the condominium developer makes all decisions on behalf of the condominium association.
The developer also creates a condominium association’s governing documents allowing it to dictate, subject to applicable law, the procedures and time periods under which control over the association’s board of directors is ultimately transferred to the unit owners.
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Nicholas D. Cowie, Cowie & Mott, P.A.Mr. Cowie may be contacted at
ndc@cowiemott.com
Client Alert: Design Immunity Affirmative Defense Not Available to Public Entities Absent Evidence of Pre-Accident Discretionary Approval of the Plan or Design
April 15, 2014 —
R. Bryan Martin & Melinda M. Carrido – Haight Brown & Bonesteel LLPOn April 8, 2014, in Martinez v. County of Ventura, Case No. B24476, the Second Appellate District of the California Court of Appeal reversed the jury's defense verdict for the County of Ventura, holding that the County's evidence in support of its Design Immunity defense to a public property dangerous condition claim was insufficient as a matter of law.
Plaintiff filed suit against the County of Ventura (the "County") after sustaining paraplegic injuries when his motorcycle struck an asphalt berm abutting a raised drain (the top-hat drain system) on a road in the County. The drain system consisted of a heavy steel cover on three legs elevated eight to ten inches off the ground, with a sloped asphalt berm to channel water into the drain.
Plaintiff alleged that the top-hat drain system constituted a dangerous condition of public property pursuant to California Government Code section 835. Under this Section, a public entity is liable for "injury proximately caused by a dangerous condition of its property if the condition created a reasonably foreseeable risk of the kind of injury sustained, and the public entity had actual or constructive notice of the condition a sufficient time before the injury to have taken preventative measures." The jury found the top-hat drain system constituted a dangerous condition of public property.
Reprinted courtesy of
R. Bryan Martin, Haight Brown & Bonesteel LLP and
Melinda M. Carrido, Haight Brown & Bonesteel LLP
Mr. Martin may be contacted at bmartin@hbblaw.com; Ms. Carrido may be contacted at mcarrido@hbblaw.com
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Building Safety Month Just Around the Corner
May 07, 2015 —
Beverley BevenFlorez-CDJ STAFFFor every week in May, the International Code Council (ICC) will spotlight a specific area of building safety. The theme this year is “Resisient Communities Start with Building Codes.” ICC’s first week focus is “Don’t Get Burned – Build to Code,” and the second week the focus changes to “Bounce Back Faster from Disaster – Build to Code.” Next, the ICC will present “Water Safe, Water Smart – Build to Code,” and conclude with “$save Energy – Build to Code.”
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10-story Mass Timber 'Rocking' Frame Sails Through Seismic Shake Tests
June 19, 2023 —
Nadine M. Post - Engineering News-RecordA 10-story mass timber “rocking” frame, designed to be resilient enough to withstand powerful earthquakes with little or no structural damage, proved its worth May 9 during seismic simulations at the largest high-performance outdoor shake table, located at the University of California San Diego.
Reprinted courtesy of
Nadine M. Post, Engineering News-Record
Ms. Post may be contacted at postn@enr.com
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Trio of White and Williams Attorneys Named Top Lawyers by Delaware Today
January 06, 2020 —
John Balaguer, FACTL, Stephen Milewski, & Dana Monzo - White and WilliamsWhite and Williams is pleased to announce that John Balaguer, Managing Partner of the Wilmington office, Partner Stephen Milewski, and Counsel Dana Spring Monzo have been chosen by their peers as Delaware Today's 2019 "Top Lawyers." The annual list recognizes John, Steve and Dana in the practice area of Medical Malpractice, Defense.
Delaware Today conducts an annual survey of the 4,900 members of the Delaware State Bar Association to identify top lawyers in specific practice areas. The magazine’s editors compile the results to create the annual Top Lawyers list, which is published in the November issue.
Reprinted courtesy of White and Williams attorneys
John Balaguer,
Stephen Milewski and
Dana Monzo
Mr. Balaguer may be contacted at balaguerj@whiteandwilliams.com
Mr. Milewski may be contacted at milewskis@whiteandwilliams.com
Ms. Monzo may be contacted at monzod@whiteandwilliams.com
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