2021 California Construction Law Update
December 29, 2020 —
Garret Murai - California Construction Law BlogThis Christmas looks to be a Blue Christmas as the nation grapples with rising infection, hospitalization and death rates due to COVID. But there’s always 2021 to look forward to, which, of course, also means new laws impacting the construction industry.
Due to COVID there were two unscheduled breaks during the second half of the 2019-2020 legislative session as legislators sheltered-in-place. As a result, there were fewer bills introduced and enacted than in previous legislative session. A total of 2,223 bills were introduced in 2020 compared to 2,625 bills in 2019, of which 428 bills made it to the Governor’s desk, and 372 were signed into law.
Among the bills signed into law were bills, unsurprisingly, related to COVID. In addition, the 2020 legislative session saw the passage of legislation creating a new licensing classification for residential renovation contractors, new laws expanding and clarifying when prevailing wages are required to be paid, and legislation extending the period during which seniors can cancel certain contracts.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Assignment of Insured's Policy Ineffective
April 06, 2016 —
Tred R. Eyerly – Insurance Law HawaiiAn assignment of policy rights made before the policy was issued was ineffective. W. Alliance Bank v. Nat'l Union Fire Ins. Co., 2016 U.S. Dist. LEXIS 19936 (N.D. Cal. Feb. 18, 2016).
The bank issued a loan to Sorrento Networks, Inc. in 2011. As collateral, Sorrento gave the bank a continuing security interest in all of Sorrento's personal property, including its inventory, commercial tort claims and insurance proceeds. The loan agreement authorized the back to act on Sorrento's behalf in collecting any money owed to Sorrento and prosecuting any claims that Sorrento might have.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
CA Supreme Court Set to Rule on Important Occurrence Issue Certified by Ninth Circuit
March 22, 2018 —
William S. Bennett – SDV BlogThe California Supreme Court recently heard oral arguments over whether an insurer is required to cover allegations that a builder negligently failed to supervise an employee who sexually assaulted a middle school student while working at the student’s school. The question was originally certified to the California Supreme Court by the Ninth Circuit in 2016, but nothing happened until the court heard arguments on March 6, 2018.
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William S. Bennett, Saxe Doernberger & Vita, P.C.Mr. Bennett may be contacted at
wsb@sdvlaw.com
New York State Trial Court Addresses “Trigger of Coverage” for Asbestos Claims and Other Coverage Issues
January 21, 2019 —
Paul Briganti - White and WilliamsOn November 21, 2018, the New York Supreme Court, Onondaga County, issued a summary-judgment ruling on a number of coverage issues arising from asbestos-related bodily injury claims against plaintiffs Carrier Corporation (Carrier) and Elliott Company (Elliott). See Carrier Corp., et al. v. Travelers Indem. Co., et al., Index No. 2005-EG-7032 (N.Y. Sup. Ct. Nov. 21, 2018).
First, the court held that under New York’s “injury in fact trigger of coverage,” injury occurs from the first date of exposure to asbestos through death or the filing of suit. The court primarily relied on: (1) New York federal court decisions and the Delaware Supreme Court’s decision in In re Viking Pump, Inc., 148 A.3d 633 (Del. 2016) holding that injury continues from first exposure through death or the assertion of a claim; and (2) medical and scientific evidence that the plaintiffs had submitted in support of their motion. The court specifically declined to follow Continental Cas. v. Wausau, 60 A.D.3d 128 (1st Dep’t 2008) (Keasbey), in which the New York Appellate Division found a question of fact whether injury occurs from exposure to asbestos through manifestation and that summary judgment was therefore inappropriate. The Carrier court stated that Keasbey was distinguishable because it “involved operations coverage, a non-product claim, and thus the [Keasbey] Court required a more stringent proof of injury in fact than is necessary here, in a products case.” Carrier, op. at 8. The Carrier court was also dismissive of affidavits offered by the defendant-insurer’s medical experts, finding that the affidavits did not create an issue of fact. See Op. at 2-9.
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Paul Briganti, White and WilliamsMr. Briganti may be contacted at
brigantip@whiteandwilliams.com
San Diego Developer Strikes Out on “Disguised Taking” Claim
October 26, 2017 —
Michael C. Parme – Haight Brown & Bonesteel LLPIn Dryden Oaks, LLC v. San Diego County Regional Airport Authority et al.(D068161, filed 9/26/17, publication order 10/19/17), the California Court of Appeal, Fourth Appellate District held that the County of San Diego (County) and the San Diego Regional Airport Authority (Authority) were entitled to summary judgment on a developer’s “disguised taking” theory of inverse condemnation.
In 2001, the developer purchased two large lots (designated Lot 24 and Lot 25) adjacent to the end of a runway at the Palomar Airport in Carlsbad. Plaintiff obtained the necessary permits from the City of Carlsbad and successfully completed construction of an industrial building on Lot 24 in 2005. However, the plaintiff never began development of Lot 25 and the building permit for the property expired in 2012. The developer was then unable to renew the building permit because the Authority had adopted the Airport Land Use Compatibility Plan (ALUCP) in the interim period, which reclassified the Lots as part of a Runway Protection Zone (RPZ). The developer received a letter explaining that “despite the earlier approval the proposed development was no longer feasible because the ALUCP was more restrictive than the prior compatibility plan and the application's proposed use of ‘research and development’ was not permissible.”
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Michael C. Parme, Haight Brown & Bonesteel LLPMr. Parme may be contacted at
mparme@hbblaw.com
Amazon’s Fatal Warehouse Collapse Is Being Investigated by OSHA
December 13, 2021 —
Josh Eidelson & Spencer Soper - BloombergThe Occupational Safety and Health Administration has opened an investigation into the collapse of an Amazon.com Inc. warehouse, according to a Labor Department spokesperson.
A tornado struck the Amazon delivery station in Edwardsville, Illinois, on Friday, killing six workers and destroying much of the facility at the peak of the holiday shopping season.
“OSHA has had compliance officers at the complex since Saturday, Dec. 11, to provide assistance,” the spokesperson said. “OSHA has six months to complete its investigation, issue citations and propose monetary penalties if violations of workplace safety and or health regulations are found.”
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Josh Eidelson, Bloomberg and
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ASCE Statement on Biden Administration Permitting Action Plan
May 23, 2022 —
Dennis D. Truax, President, American Society of Civil Engineers (ASCE)Washington, DC. – ASCE applauds the Biden Administration for the development of their new Permitting Action Plan aimed at accelerating the federal permitting and environmental review process for major infrastructure projects across the country.
The plan leverages permitting provisions that were included in the Infrastructure Investment and Jobs Act and aims to ensure that the federal environmental review and permitting processes will be efficient, transparent, guided by science, and shaped by meaningful input from the public and government agencies.
One of the key recommendations in the 2021 Report Card for America's Infrastructure was to streamline the project permitting process across infrastructure sectors, while ensuring appropriate safeguards and protections are in place. Therefore, ASCE believes that the most recent plan is a step in the right direction to ensure that projects can be delivered on-time, and on-budget, while maintaining the rigorous environmental review process.
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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California Supreme Court Shifts Gears on “Reverse CEQA”
February 23, 2016 —
Garret Murai – California Construction Law BlogThe California Supreme Court has shifted gears on so-called “reverse CEQA” under the California Environmental Quality Act (“CEQA”).
The Supreme Court, in a much-anticipated decision, in California Building Industry Association v. Bay Area Air Quality Management District, Case No. S213478 (December 17, 2015), held that public agencies subject to CEQA are not required to analyze whether existing environmental conditions may impact a proposed project’s future users or residents – also known as “reverse CEQA” or “CEQA in reverse” – as opposed to the more traditional analysis of a proposed project’s impact on the environment, unless:
1. The proposed project risks exacerbating existing environmental hazards – in which case, it is the proposed project’s impact on the environment not the environment’s impact on the proposed project, which compels the evaluation; or
2. A reverse CEQA analysis is already required under statute, for example, on certain airport, school and housing projects.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com