Insurer's Attempt to Limit Additional Insured Status Fails
December 01, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe court disagreed with the insurer's attempt to limit additional insured status based upon the contract between the parties. Mays v. In re All C-Dive LLC, 2017 U.S. Dist. LEXIS 185874 (E.D. La. Nov. 9, 2017).
Five employees of C-Dive LLC filed a lawsuit after belng injured in a pipeline explosion aboard a vessel servicing a pipeline owned by Gulf South Pipeline Company. During the work, there was a release of gas that caused an explosion and injured the employees.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
What are the Potential Damages when a House is a Lemon?
September 01, 2016 —
Haldon L. Greenberg, Esq. – Florida Construction Law NewsIt seems that lemons are front page news these days. Beyonce just released a chart-topping[1] album all about what to do when life hands you lemons. In today’s vernacular, we use the term “Lemon” to describe a person or thing that is unsatisfactory, disappointing, or feeble.[2] In Florida, there is a “Lemon Law” that provides a way for consumers to receive a replacement or full refund for vehicles found to have defects which may affect the vehicle’s safety, value or use.[3] While there is no “Lemon Law” for construction projects, in Gray v. Mark Hall Homes, Inc.,[4] Florida’s Second District Court of Appeal cited to Florida Supreme Court precedent in holding that a home builder was on the hook for the entire contract value of a home he contracted to build for the Plaintiff, when it was revealed the home was a “Lemon”, or as the evidence at trial showed, “valueless.”
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Haldon L. Greenberg, Esq., Cole, Scott & Kissane, P.A.Mr. Greenberg may be contacted at
haldon.greenburg@csklegal.com
Corporate Formalities: A Necessary Part of Business
February 18, 2020 —
Hannah Kreuser - Porter Law GroupMany benefits exist in choosing to create a corporation or limited liability company (“LLC”) as your business entity. However, what attracts most people to these entities is the protection they afford the business owner(s) against personal liability for the business’ obligations, debts, and other liabilities. Whatever reason prompts your decision to form a corporation or LLC, if you are like many smaller businesses, once the formation process is over its back to business as usual.
However, in order to keep the protection against personal liability associated with a corporation or LLC, the business must engage in, what are known as corporate formalities. Corporate formalities are formal actions that must be taken by a corporation or LLC in order to maintain the benefits associated with that business entity. These corporate formalities may be required under California law, by the bylaws, and/or by the operating agreement of your business.
When your business is formed as a corporation, many of the corporate formalities exist as part of California’s Corporations Code (“CCC”). These formalities include: (1) holding annual meetings (CCC § 600); (2) regularly electing directors (CCC § 301); (3) keeping meeting minutes (CCC § 1500); and (4) maintaining accurate corporate records (CCC § 1500). While these are only a few of the corporate formalities existing for corporations in the State of California, these formalities are often overlooked or put off by smaller businesses because they are either unknown to the business or are intended to be complied with later, as the actual running of the business takes priority.
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Hannah Kreuser, Porter Law GroupMs. Kreuser may be contacted at
hkreuser@porterlaw.com
Tennessee Civil Engineers Give the State's Infrastructure a "C" Grade
December 05, 2022 —
American Society of Civil EngineersNASHVILLE, TN. — The Tennessee Section of the American Society of Civil Engineers (ASCE) released the 2022 Report Card for Tennessee's Infrastructure today, with 13 categories of infrastructure receiving an overall grade of a 'C', the same grade given by the section in its 2016 report. That means Tennessee's infrastructure is in mediocre condition and requires attention, but is a step ahead of the national average of "C-" given in the 2021 Report Card for America's Infrastructure. Tennessee's freight network is strong and plays a major role in the national economy as a key mobility hub and its energy grid has been reliable, allowing families and businesses to operate efficiently. Many of the state's systems are performing at or above national averages; however, a surge in population growth, increasingly severe weather impacts, and insufficient data on the current condition of several infrastructure sectors threaten the long-term viability of the state's overall network. Civil engineers graded aviation (C+), bridges (B), dams (D+), drinking water (C+), energy (C+), inland waterways (C), parks (C+), rail (C), roads (C), solid waste (C+), stormwater (C+), transit (D+), and wastewater (C-).
"As one of the most prominent mobility hubs in all of America, infrastructure is the backbone to all we do here in Memphis, and everything we can accomplish throughout the great state of Tennessee," said Memphis Mayor Jim Strickland. "Our airports, roads and bridges keep our economy flowing, drawing more jobs and businesses in the future. The ASCE report is a critical tool for tracking our progress, in addition to highlighting where we could use some work. With more people flocking to Tennessee than ever before, this is an exciting time and our infrastructure networks must be ready to help us capitalize on the opportunity."
To view the report card and all five categories, visit https://infrastructurereportcard.org/state-item/tennessee/.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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Does the Miller Act Trump Subcontract Dispute Provisions?
May 16, 2018 —
Christopher M. Horton - Smith CurrieAll general contractors performing public building or public works contracts with the federal government must be familiar with the Miller Act. It is a requirement for doing business with the federal government. Pursuant to the Miller Act, a general contractor entering into a public building or public works contract with the federal government must furnish a payment bond in an amount equal to the contract price, unless the contracting officer determines that it is impractical to obtain a bond in that amount and specifies an alternative bond amount.
Miller Act payment bonds guarantee payment to certain subcontractors and suppliers supplying labor and materials to contractors or subcontractors engaged in the construction. As a result, subcontractors have an avenue of relief should they not get paid for work done on the project. Specifically, subcontractors have a right to bring an action against the surety within 90-days after the date on which the person did or performed the last labor or furnished or supplied the last of material for which the claim is made. Any such action must be brought no later than one year after the date on which the person did or performed the last labor or furnished or supplied the last of material. 40 United States Code § 3133.
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Christopher M. Horton, Smith CurrieMr. Horton may be contacted at
cmhorton@smithcurrie.com
One to Watch: Case Takes on Economic Loss Rule and Professional Duties
June 28, 2011 —
Douglas Reiser, Builders Council BlogAccording to the Supreme Court of Washington Blog, The Supreme Court heard oral argument in Jackowski v. Hawkins Poe on Thursday, June 16, 2011. The court’s synopsis of the case can be found on the Washington State Court website.
In short, two home purchasers brought a lawsuit against the home’s sellers, the sellers’ agent and the purchasers’ own agent, alleging claims of fraud, fraudulent concealment, negligent misrepresentation and breach of common law and statutory duties. The trial court dismissed the buyers’ claims on the basis of the economic loss doctrine and Division II reversed, opining that the ELR does not apply to professional duties. The Supreme Court will now look at applying the Independent Duty Doctrine established last year, and whether professional duties (those of the real estate agents) should be reviewed under a different light.
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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com
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Jason Smith and Teddie Arnold Co-Author Updated “United States – Construction” Chapter in 2024 Legal 500: Country Comparative Guides
May 28, 2024 —
Jason Smith & Edward (Teddie) Arnold - The Construction SeytJason Smith and
Teddie Arnold, partners in Seyfarth’s Washington, DC office, have co-authored an updated “United States – Construction” chapter in the 2024 edition of The Legal 500: Country Comparative Guides. Seyfarth continues to participate as an exclusive contributor for this comprehensive overview of construction-specific laws and regulations in the United States. Topics covered include, but are not limited to, requirements and obligations, permits and licencing, procurement, financing and security, and disputes, as well as insight and opinion on current challenges and opportunities. To access and download a copy of the chapter, click
here.
Reprinted courtesy of
Jason N. Smith, Seyfarth and
Edward V. Arnold, Seyfarth
Mr. Smith may be contacted at jnsmith@seyfarth.com
Mr. Arnold may be contacted at earnold@seyfarth.com
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District Court Awards Summary Judgment to Insurance Firm in Framing Case
August 04, 2011 —
CDJ STAFFIn the case of Continental Western Insurance Company v. Shay Construction Inc., Judge Walker Miller has granted a summary judgment against Shay Construction and their co-defendant, Milender White Construction Company.
Shay was the framing subcontractor for Milender White on what the court described as “a major construction project in Grand County, Colorado.” Two of Shay’s subcontractors, Wood Source Inc. and Chase Lumber Company furnished materials, labor, and equipment to Shay. They subsequently sued for nonpayment and sought to enforce mechanic’s liens, naming both Shay and Milender as defendants. Milender White alleged that Shay had “breached its obligation under its subcontracts with Milender White.”
Shay’s insurance provider, Continental Western, stated that its coverage did not include “the dispute between Shay, its subcontractors, particularly the cross claims asserted by Milender White.” Shay then sued Continental Western, alleging breach of contract and statutory bad faith.
The court, however, has found with Continental Western and has granted them a summary judgment. They found “no genuine issue as to any material fact.” The judge did not side with Continental Western on their interpretation of the phrase “those sums that the insured becomes legally obligated to pay as damages.” The court found that the Colorado courts have not limited this to tort actions only. However, as Milender’s cross claim included claims of faulty workmanship on the part of Shay, Judge Miller found for Continental.
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