The Construction Industry Lost Jobs (No Surprise) but it Gained Some Too (Surprise)
October 12, 2020 —
Garret Murai - California Construction Law BlogThe announcement this week by major airlines and then by Disney that they will be laying off tens of thousands of workers is just the latest in what we already know: The coronavirus pandemic has adversely impacted workers around the world. And the construction industry is no exception, although its impacts have been uneven, and in some cases surprisingly good.
According to a report by the Associated General Contractors of America, 39 states lost construction jobs between August 2019 and August 2020 while 31 states and the District of Columbia added construction jobs between July and August 2020.
California saw the largest decline in construction jobs between August 2019 and August 2020, down 52,000 jobs or 5.8%, followed by by New York (-46,000 jobs/-11.3%), Texas (-39,300 jobs/-5.0%), Massachusetts (-20,200 jobs/-12.4%) and Illinois (-17,200/-7.5%).
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Before Collapse, Communications Failed to Save Bridge Project
December 30, 2019 —
Scott Judy - Engineering News-RecordThe National Transportation Safety Board’s Oct. 8 release of documents related to its FIU bridge collapse investigation raises questions but provides no definitive conclusions about why the partially built structure suddenly crashed to the ground on March 15, 2018, killing six. The last official word on the cause of the fatal collapse will have to await the agency’s final report, scheduled to be released on Oct. 22.
Scott Judy, Engineering News-Record
Mr. Judy may be contacted at judys@enr.com
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Washington Trial Court Narrows Definition of First Party Claimant, Clarifies Available Causes of Action in Commercial Property Loss Context
January 04, 2021 —
Kathleen A. Nelson & Jonathan R. Missen - Lewis BrisboisThe law in the State of Washington, albeit clear on issues regarding first party claimants, was recently challenged in the matter of Eye Associates Northwest, P.C. v. Sedgwick et. al. However, despite this challenge of first impression, the court limited the application of the term “first party claimant” (a term of art akin to “insured”) based upon the wording of a loss payee clause, as well as taking into consideration and harmonizing the wording of the leases, other provisions in the policy regarding tenant improvements, and the simple fact that Eye Associates was not named in the policy whatsoever.
In Eye Associates, the plaintiff leased office space in a high-rise medical office building, insured by three separate insurance companies. A water loss caused damage to the plaintiff’s leased space, and the plaintiff brought suit against the owner of the building, its insurers, the property manager, a third-party administrator (TPA), and two individual adjusters assigned to inspect and adjust the water loss claim.
Reprinted courtesy of
Kathleen A. Nelson, Lewis Brisbois and
Jonathan R. Missen, Lewis Brisbois
Ms. Nelson may be contacted at Kathleen.Nelson@lewisbrisbois.com
Mr. Missen may be contacted at Jonathan.Missen@lewisbrisbois.com
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Navigating the New Landscape: How AB 12 and SB 567 Impact Landlords and Tenants in California
March 11, 2024 —
Sharon Oh-Kubisch - Kahana FeldThere are various changes in the Landlord-Tenant laws in CA that became effective in 2024.
For the purposes of this article, I wanted to focus on Assembly Bill (AB) 12 and Senate Bill (SB) 567 only.
Governor Gavin Newsom recently signed AB 12 into law, a legislation that limits the amount landlords can charge for security deposits to just one month’s rent for unfurnished apartments. While the law aims to make housing more accessible, it raises several concerns for landlords and tenants alike. AB 12, was authored by Assemblyman Matt Haney, D-San Francisco; it passed both the Senate and the Assembly houses in September. The legislation introduces a notable shift from existing law, under which landlords can charge up to two months’ rent for an unfurnished unit and three months’ rent for a furnished one. This exception does not apply when the prospective tenant is a military service member, however.
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Sharon Oh-Kubisch, Kahana FeldMs. Oh-Kubisch may be contacted at
sokubisch@kahanafeld.com
Default Should Never Be An Option
June 19, 2023 —
Christopher G. Hill - Construction Law MusingsEvery time I think that the construction industry has learned that failure to respond to a lawsuit is never the correct response, another case of default judgment comes out. I’ve discussed on multiple occasions that failure to respond can only lead to disaster. Aside from being barred from making any substantive response to the allegations against you, there are other consequences including the inability to seek a reasonable settlement because the other side has no reason to negotiate.
One of the more disastrous results recently came about in the Norfolk Division of the Eastern District of Virginia District Court. The case of L & W Supply Corp v. Driven Construction et. al. involved a supplier that sought to enforce its credit agreement against both the corporate entity of the contractor, Driven, and the guarantor, a principal of the company. Needless to say, there was no response to the lawsuit and the Plaintiff filed for default judgment.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Condo Collapse Spurs Hometown House Member to Demand U.S. Rules
July 19, 2021 —
Parker Purifoy - BloombergA Florida congresswoman called for stricter federal building-safety standards on Thursday to prevent a repeat of the condominium collapse that killed at least 60 people and left dozens more missing in her state.
Representative Debbie Wasserman Schultz, a Democrat whose congressional district includes the condo development in Surfside, said more buildings could collapse or break down as they age and the federal government needed to have a “minimum floor” of safety requirements.
“We do have standards that are tangentially related at the federal level and so I do think it’s important to look into what standards should be adopted at the national level, at a minimum, because this is a tragedy of epic proportions,” she said on Bloomberg Television’s “Balance of Power” with David Westin. “We can’t allow this to ever happen again.”
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Parker Purifoy, Bloomberg
Water Drainage Case Lacks Standing
March 28, 2012 —
CDJ STAFFThe Texas Court of Appeals has ruled in the case La Tierra de Simmons Familia Ltd. V. Main Event Entertainment, LP. The trial court had found for Main Event. On appeal, the court threw out some of the grounds on which the trial court had reached its decision.
The case involved two commercial lots in northwest Austin, Texas. The uphill tract (Phase III of the Anderson Arbor development) diverts its runoff onto the lower tract (the “Ballard tract”). The owners of the Ballard tract claim that “the drainage system was designed or constructed in a manner that has damaged and continues to damage the Ballard tract.”
Both tracts have undergone changes of ownership since the construction of the drainage system in 2004. At the time the drainage system was constructed, the parcel was owned by Sears Roebuck and Co. Sears later sold the property. Main Event Entertainment is the current tenant. Likewise, the Ballard tract was previously owned by the Ballard Estate which sold the property to La Tierra on an “as is” basis in 2007.
After La Tierra bought the Ballard tract, La Tierra’s engineer “witnessed and videotaped what he described as ‘flooding’ on the Ballard tract caused by storm water discharge from the Anderson Arbor drainage system during a rainfall event.” La Tierra determined that an adequate drainage system would cost about $204,000. Development plans were put on hold.
La Tierra sued Main Event and various other parties associated with the uphill tract, seeking “actual damages for (1) decrease and loss in rental income due to delay in obtaining the development permit, (2) interest on carrying costs during that time period, (3) the cost to build a water conveyance system on the Ballard tract, (4) engineering fees incurred to redesign the water conveyance system, (5) unspecified out-of-pocket real estate expenses, and (6) property devaluation occasioned by the need to construct an expensive water conveyance system.” The trial court never reached these claims, ruling instead that La Tierra lacked standing, that its claims were barred under the statute of limitations, and that there was no evidence of damage.
La Tierra appealed, arguing that “(1) the summary-judgment evidence does not conclusively establish that property damage claims accrued or were discovered prior to September 11, 2007, which is within the limitations period and was after La Tierra purchased the property; (2) even if the property was damaged before La Tierra acquired ownership of the Ballard tract, standing exists based on the assignments of interest from the Ballard Estate heirs, and the discovery rule tolls limitations until the injury was discovered on September 11, 2007; (3) limitations does not bar La Tierra's request for injunctive relief; (4) La Tierra's water code claim against Main Event and M.E.E.P. is viable based on their control over the drainage system, which makes them necessary and indispensable parties for injunctive relief; (5) La Tierra presented more than a scintilla of evidence to raise a fact issue on damages, causation, and other essential elements of its causes of action; and (6) the trial court abused its discretion when it sustained the defendants' objections to La Tierra's summary-judgment evidence.”
The appeals court concluded that La Tierra’s second claim was irrelevant to standing, as La Tierra “obtained assignments from the Ballard Estate heirs ? nearly one year after the lawsuit was initially filed.” Nor did the court accept their first point. The water system had been operating unaltered since January, 2004, with monthly maintenance and inspection to maintain its designed operation. Further, a feasibility report La Tierra received stated that “over sixteen acres drain into those ponds, and thus onto this site.” The court noted that “the underlying facts giving rise to a cause of action were known before La Tierra acquired ownership of the Ballard tract.”
The court concluded that the drainage issue is a permanent injury, but that it “accrued before La Tierra acquired an ownership interest in the property.” As La Tierra has standing, the appeals court ruled that it was improper for the trial court to rule on the issues. The appeals court dismissed the questions of whether the case was barred under the statute of limitation and also the question of whether or not La Tierra had damages.
As the issue of standing would not allow La Tierra to bring the suit, the appeals court found for the defendants, dismissing the case for this single reason, and otherwise affirming the ruling of the lower court.
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Construction Termination Issues Part 6: This is the End (Tips for The Design Professional)
September 25, 2023 —
Melissa Dewey Brumback - Construction Law in North CarolinaWhether your role is in helping analyze the contractor’s work on the project to certify a
contractor’s termination for cause, or you are
being shown the door yourself, and everything in between, termination is a subject that is ripe with potential problems.
Consider these summary tips as part of your practice, every time the termination idea arises:
- Remember that you are the neutral and must be impartial between Owner and Contractor
- After you have made a fair decision, document your decision to the Owner and Contractor
- Provide options less nuclear for Owners– stop work; removing scopes of work; etc.
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Melissa Dewey Brumback, Ragsdale LiggettMs. Brumback may be contacted at
mbrumback@rl-law.com
