Safety Versus a False Sense of Security: Challenges to the Use of Construction Cranes
March 18, 2019 —
Christopher Machut - Construction ExecutiveThe history of safety is, in part, the history of resistance to safety. From transportation and travel to sports and entertainment, the safeguards taken for granted were once too allegedly controversial or costly for companies to grant to consumers. Imagine driving a car without a seatbelt or being a passenger in a minivan without side-impact airbags or anti-lock brakes, or playing football without a helmet or riding a roller coaster without a shoulder harness. Imagine, too, pulling out of parking space without a rear-view camera, unable to see passing cars or pedestrians.
Cameras are now as common among compact cars as on the most uncommonly expensive sports cars and sedans.
And yet, the technology that earns drivers a discount on car insurance is the same or mostly similar technology that insurers refuse to cover elsewhere. The technologies that makes parallel parking easier or easing a car into traffic a cinch is considered an extravagance on construction equipment, despite the dangers crane operators face but cannot see, despite what workers on the ground can see but not forecast, despite what cameras can record and capture.
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Christopher Machut, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Los Angeles Considering Census of Seismically Unstable Buildings
August 27, 2013 —
CDJ STAFFIn 1994, after the Northridge earthquake lead to the deaths of 57 people and $2 billion in damage, the Los Angeles City Council considered making a list of buildings that were vulnerable to failure in earthquakes and mandating that they be made seismically sound. The measure did not come to pass.
Tom LaBonge, a member of the council, is seeking to finally get that inventory done. According to the Los Angeles Times, thousands of buildings in Los Angeles were constructed with a ground floor level that is insufficient to support the rest of the building in the event of an earthquake. These “soft-story” buildings can be reinforced to better resist earthquakes, but first they need to be identified.
Owners of apartment buildings worry about the cost of the retrofits, suggesting that if the city is going to come up with mandatory retrofits, they should also “help property owners pay for it,” as Beverly Kenworthy, the executive director of the Los Angeles division of the California Apartment Association told the Times.
San Francisco recently did require retrofits, finding about 3,000 apartment buildings that were at seismic risk. Still, San Francisco doesn’t seem to have moved any faster than Los Angeles, as they were responding to the Loma Prieta earthquake of 1989, seven years before the Northridge quake.
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Reaffirming the Importance of Appeal Deadlines Under the Contract Disputes Act
January 26, 2017 —
Chadd Reynolds – Autry, Hanrahan, Hall & Cook, LLPA recent United States Court of Federal Claims (“COFC”) decision emphasizes the importance of deadlines for appealing a contracting officer’s (“CO”) decision under the Contract Disputes Act (“CDA”). On July 22, 2016, the COFC granted the consolidation of two naval contract dispute appeals totaling nearly $12.4 million in response to Nova Group/Tutor-Saliba’s (“NTS”) motion to resolve two Requests for Equitable Adjustment (“REA”) in the same forum. See Nova Group/Tutor-Saliba v. United States, No. 15-885C, 2016 WL 4009886, at *5 (Fed. Cl. July 22, 2016). NTS’s motion before the COFC sought to transfer an appeal of a REA before the COFC to the Armed Services Board of Contract Appeals (“ASBCA”), where another appeal of a REA arising under the same contract was presently on appeal. The COFC rejected NTS’s appeal to transfer the REA to the ASBCA because NTS did not appeal the REA within the 90-day limit under the CDA. Instead, the COFC allowed NTS to transfer the REA before the ASBCA to the COFC because timeliness was not an issue.
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Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLPMr. Reynolds may be contacted at
reynolds@ahclaw.com
Insured's Motion for Reconsideration on Denial of Coverage Unsuccessful
September 28, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe insured's motion to reconsider an order granting the insurer summary judgment challenges the insured's theory it was an additional insured was rejected by the federal district court. Hanover Ins. Co. v. Superior Labor Servs., 2017 U.S. Dist. LEXIS 133127 (E.D. La. Aug. 21, 2017).
The court previously granted Lexington Insurance Company's motion for summary judgment, finding Allied Shipyard, Inc. was not an additional insured and was not entitled to a defense in the underlying actions. On reconsideration, Allied argued the court ruled it was not a "certificate holder" under the Lexington policy, but Allied was not given the opportunity to conduct discovery with respect to whether it was a "certificate holder." Summary judgment was granted before Allied answered Lexington's amended complaint in intervention. Allied submitted its answer could have raised a genuine issue of material fact because it was entitled to coverage under the policy if it was a certificate holder.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Millennials Skip the Ring and Mortgage
June 26, 2014 —
Megan McArdle – BloombergThey’re living at home in growing numbers. They're not buying homes, which creates ripple effects throughout the housing market. They’re having more babies out of wedlock than in it. Why can’t millennials get it together?
The first and most obvious answer is “jobs.” If you can’t find a stable job, it’s hard to move out of Mom’s basement. It’s hard to commit to a mortgage or a spouse. It's hard, in other words, to launch into the middle-class life that constitutes the American Dream.
Millennials are some of the biggest victims of the financial crisis. Those without a college degree face high rates of unemployment, while those who have a sheepskin are more and more likely to be underemployed in a job that doesn’t require their degree. Even if the student loan crisis has been overstated, the rising cost of college tuition certainly doesn’t help.
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Megan McArdle, BloombergMs. McArdle may be contacted at
mmcardle3@bloomberg.net
Unlicensed Contractor Shoots for the Stars . . . Sputters on Takeoff
September 20, 2017 —
Garret Murai - California Construction Law BlogElon Musk . . .
Eccentric engineer.
Technology billionaire.
And, now, litigation bad ass.
Frequent readers of the California Construction Law Blog know that we’ve talked about the importance of being properly licensed when doing construction work and the risks to you if you don’t.
One California contractor recently found this out the hard way.
In Phoenix Mechanical Pipeline, Inc. v. Space Exploration Technologies Corp., California Court of Appeals for the Second District, Case No. B269186 (June 13, 2017), contractor Phoenix Mechanical Pipeline, Inc. (Phoenix) lost its boosters . . . err britches . . when it sued Elon Musk’s Space Exploration Technologies Corp. (Space X) due to its failure to have a California contractor’s license.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Performance Bonds: Follow the Letter of the Bond and Keep The Surety Informed
December 06, 2021 —
Bill Shaughnessy, Jones Walker, LLP - ConsensusDocsConstruction surety bonds are risk management tools utilized by parties on large construction projects. However, bonds are not insurance, and a surety is not an “insurer” of the project. Different from insurance, a surety’s obligation to act typically arises if the principal fails to perform in accordance with the construction contract, and if the claimant satisfies the conditions precedent to enforcing the bond.[1]
This article focuses exclusively on performance bonds on private projects,[2] and highlights practical considerations and surety defenses to enforcement of the performance bond.[3] Spoiler alert – the party making a claim on the bond must strictly adhere to the conditions precedent set forth in the bond throughout the construction project and when calling upon the surety to take action, otherwise the performance bond may be rendered void and unenforceable.
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Bill Shaughnessy, Jones Walker, LLPMr. Shaughnessy may be contacted at
bshaughnessy@joneswalker.com
Delays in Filing Lead to Dismissal in Moisture Intrusion Lawsuit
September 09, 2011 —
CDJ STAFFThe Alabama Court of Civil Appeals has upheld a summary judgment in the case of Franklin v. Mitchell. Walter Mitchell, doing business as Southern Classic Construction built a new home for the Franklins. The Franklins moved into the home in October 2001. In April 2006 they discovered sagging floors in both the bathroom and kitchen. They contacted Mitchell who suggested the flooring might be defective. The Franklins spent eight months attempting to contact the flooring manufacturer.
In March 2007, the Franklins had the home inspected. The sagging was determined to be due to a loss of strength in the decking because of condensation from the air conditioning system. Air returns were not properly sealed and drawing moisture into the structure. There was mold on the decking and floor joints.
When Mitchell was contacted by the Franklins, he told them his one-year warranty had expired but had the HVAC subcontractor, Southern Mechanical Heating & Air (owned by Mitchell’s father, Jim Mitchell), look at the situation. SMHA replaced and braced subfloors. Later, they entered the crawl space to tape ducts, seal the air return, and insulate the air vent housing. The Franklins were not satisfied with the repairs, as not all the ducts were taped, nor were the air vent housings insulated.
Franklin complained to Walter Mitchell who again cited his one-year warranty. Jim Mitchell said he would not report complaints to his insurer, stating that the repairs were unnecessary, that the work had been done correctly in the first place, and it was only done at the request of Walter Mitchell.
In February 2009, the Franklins sued Walker Mitchell. Mitchell denied the claims, citing in part the statute of limitations. Mitchell also filed complaints against three subcontractors, including his father’s firm. Mitchell received a summary judgment as the case started after Alabama’s six-year statute of limitations.
The appeals court rejected the Franklin’s argument that the claim of damage did not start until they were aware it was due to a construction defect. The court noted that as Walter Mitchell was licensed as a “residential home builder, the statute the Franklins cite did not apply, as it concerns architects, engineers, and licensed general contactors.”
Nor did they feel that Mitchells’ claim that his warranty had expired were sufficient to override the statute of limitations, quoting an earlier case, “Vague assurances do not amount to an affirmative inducement to delay filing suit.” Their claim of subsequent negligent repairs was rejected because Mitchell did not direct the specific actions taken by his father’s firm.
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