Contractors: Revisit your Force Majeure Provisions to Account for Hurricanes
September 14, 2017 —
David Adelstein - Florida Construction Legal UpdatesWe now know and can appreciate the threat of hurricanes. Not that we did not appreciate the reality of hurricanes–of course we did–but Hurricane Harvey and Hurricane Irma created the type of actual devastation we fear because they hit close to home. The fear came to life, creating panic, anxiety, and uncertainty. It is hard to plan for a force majeure event such as a hurricane because of the capriciousness of Mother Nature. But, we need to do so from this point forward. No exception! And, I mean no exception!!
A force majeure event is an uncontrollable event that cannot be anticipated with any degree of definitiveness. The force majeure event will excusably delay or hinder performance obligations under a contract. One type of force majeure event is a hurricane—an uncontrollable and unforeseen act of Mother Nature.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com
Federal Judge Issues Preliminary Injunction Blocking State's Enforcement of New Law Banning Mandatory Employee Arbitration Agreements
February 24, 2020 —
Amy R. Patton, Jeffrey K. Brown & Tyler B. Runge - Payne & FearsOn January 31, 2020, Judge Kimberly Mueller issued a preliminary injunction "in full" preventing the State of California from enforcing AB 51, the state's new law effectively banning mandatory employee arbitration agreements.
As we previously reported, AB 51 adds section 432.6 to the Labor Code and section 12953 to the Government Code, which together prohibit employers from requiring an employee, as a condition of employment, continued employment, or receipt of employment-related benefits, to waive any right, forum, or procedure to pursue a claim under the California Fair Employment and Housing Act or the Labor Code. In other words, AB 51 bans mandatory employment arbitration agreements for employment-related claims.
In early December 2019, the U.S. Chamber of Commerce and a coalition of business organizations sued the state of California in federal court in a bid to have AB 51 declared preempted --- and therefore unenforceable --- by the Federal Arbitration Act. The case is Chamber of Commerce of the United States v. Becerra, Case No. 2:19-cv-2456 KJM DB (E.D. Cal.).
On December 30, 2019, Judge Mueller issued a temporary restraining order preventing the state from enforcing AB 51 pending the resolution of plaintiffs' motion for a preliminary injunction. You can read our report
here.
Reprinted courtesy of Payne & Fears attorneys
Amy R. Patton,
Jeffrey K. Brown and
Tyler B. Runge
Ms. Patton may be contacted at arp@paynefears.com
Mr. Brown may be contacted at kb@paynefears.com
Mr. Runge may be contacted at tbr@paynefears.com
Read the court decisionRead the full story...Reprinted courtesy of
Insurer Not Responsible for Insured's Assignment of Policy Benefits
February 21, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe Florida Court of Appeals affirmed the lower court's granting summary judgment to the insurer after failing to abide by an assignment to which it was not a party. Expert Inspections, LLC v. United Property & Cas. Ins. Co., 2022 Fla. App. LEXIS 88 (Fla. Ct. App. Jan. 5, 2022).
The insured's property sustained damage from Hurricane Irma resulting in a covered loss. The insured retained Expert Inspections to perform mold-related services. As payment, the insured assigned her policy benefits pursuant to an assignment of benefits agreement. Under the agreement, the insured agreed to cooperate with the assignee to ensure that payments were made by the insurer upon completion of work. The insured gave authority to the assignee to endorse any checks with her name listed on the check.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Texas Supreme Court Defines ‘Plaintiff’ in 3rd-Party Claims Against Design Professionals
September 10, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to attorney Matthew J. Mussalli, writing in Texas Lawyer, “In Jaster v. Comet II Construction on July 3, the Texas Supreme Court ruled how to construe the term ‘plaintiff’ in the context of claims against design professionals and under what circumstances a Certificate of Merit (COM) is required.”
Mussalli explained that “the court narrowly construed the relevant statute contained in Chapter 150 of the Texas Civil Practice & Remedies Code and held that the plaintiff is just that—the plaintiff; not a defendant/third-party plaintiff nor a cross-claimant. Accordingly, builders, contractors and others who find themselves in the position of defending breach of contract, negligence or other claims and who seek to implead design professionals, need not file a COM with their third-party petitions or cross-claims against architects, engineers or other design professionals.”
Read the court decisionRead the full story...Reprinted courtesy of
The Difference Between Routine Document Destruction and Spoliation
October 18, 2021 —
Steven A. Neeley - Construction ExecutiveIn today’s world, there is a tendency to believe that everything must be preserved forever. The common belief is that documents, emails, text messages, etc. cannot be deleted because doing so may be viewed as spoliation (i.e., intentionally destroying relevant evidence). A party guilty of spoliation can be sanctioned, which can include an adverse inference that the lost information would have helped the other side. But that does not mean that contractors have to preserve every conceivable piece of information or data under all circumstances. There are key differences between routine document destruction (when done before receiving notice of potential claims or litigation) and spoliation.
The Armed Services Board of Contract Appeals decision in Appeal of Sungjee Constr. Co., Ltd., ASBCA Nos. 62002 and 62170 (Mar. 23, 2021) provides a good reminder. There, Sungjee challenged its default termination under a construction contract at Osan Air Base in South Korea. Sungjee argued that the government denied it access to the site for 352 days (out of a 450-day performance period) by refusing to issue passes that were needed to access the base. The government argued that it had issued the passes, but it could not produce them to Sungjee in discovery because they had been destroyed as part of a routine document destruction policy. The base security force issued hard copy passes and entered the information in a biometric system. The government was able to produce the biometric system data but not the hard copy passes because they were destroyed each year.
Sungjee argued the government was guilty of spoliation and moved for sanctions. It asked the Board to draw an adverse inference that the passes would have shown that the government had not issued proper passes on a timely basis, which delayed Sungjee’s performance. The Board denied Sungjee’s motion for several reasons.
Reprinted courtesy of
Steven A. Neeley, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Mr. Neeley may be contacted at
steve.neeley@huschblackwell.com
Damages in First Trial Establishing Liability of Tortfeasor Binding in Bad Faith Trial Against Insurer
October 22, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe court considered whether, in a second trial for bad faith, the insured was required to again prove her damages, instead of relying on the jury's damage determination in the first trial where the tortfeasor's liability was established. Geico Gen. Ins. Co. v. Paton, 2014 Fla. Ct. App. LEXIS 14362 (Fla. Ct. App. Sept. 17, 2014).
The insured was injured in a car accident caused by the negligence of the underinsured driver. Geico paid the insured the $10,000 policy limit under her policy. The insured's mother also had uninsured/underinsured coverage with Geico, with policy limits of $100,000. When the insured demanded the $100,000 policy limits from her mother's policy, Geico offered $1,000. Later, Geico offered $5,000, but returned to the $1,000 offer after the insured refused to settle. When the insured reduced her demand to $22,500, Geico did not respond.
The insured sued and the case went to trial. The jury awarded $10,000 for past pain and suffering, and $350,000 for future pain and suffering. The verdict set the insured's total damages at $469,247. Geico did not file a motion for new trial nor did it appeal. Judgment was entered in favor of the insured, but was limited to the $100,000 UM policy limits.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Are Modern Buildings Silently Killing Us?
May 16, 2022 —
Michael Rubino - Construction ExecutiveConstruction, in general, is a rapidly evolving industry as contractors, architects, and engineers are tasked with keeping up with government regulations, building practices and technological innovations. While growth and evolution are pivotal components of successful projects and businesses, it’s led to a few issues, one of which involves mold.
Like the construction industry, the world of mold is evolving as more research, understanding, and awareness develops, highlighting its prevalence in buildings and the effect it can have on the health of those exposed. What industry professionals are witnessing time and again is an increasing occurrence of individuals reaching out and asking for help after experiencing exposure that led to chronic illness. The reality is that modern buildings are contributing to this rise.
The Top of the Funnel
An issue aiding in mold’s prevalence in modern-day buildings is the way in which they are built. In an effort to achieve net-zero energy-efficient buildings, construction professionals have adopted the technique of sealing buildings as tightly as possible. While this transition reduces energy costs in the building, it also introduces a few new problems that aren't always addressed in modern construction. One such issue is how the lack of airflow between the indoor and outdoor environments can lead to a buildup of contaminant particles in the building.
Reprinted courtesy of
Michael Rubino, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Traub Lieberman Partner Lisa M. Rolle Wins Summary Judgment in Favor of Third-Party Defendant
May 06, 2024 —
Traub LiebermanTraub Lieberman Partner Lisa M. Rolle won summary judgment in favor of Third-Party Defendant, a general contracting company (the “Contracting Company”), in a personal injury action brought in Suffolk County. In the underlying matter, the Plaintiff—an employee of the Contracting Company—alleged that they sustained injuries from an incident which occurred when they were struck by a skid-steer loader owned by the Co-Defendant masonry company (the “Masonry Company”) and operated by the president and owner of the Co-Defendant/Third-Party Plaintiff construction company (the “Construction Company”). The Plaintiff brought claims against the Defendant companies for common law negligence and violations of Labor Law § § 200, 240, and 241, as well as Industrial code (12 NYCRR) subpart 23-2.
Reprinted courtesy of
Lisa Rolle, Traub Lieberman
Ms. Rolle may be contacted at lrolle@tlsslaw.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of