Dear Engineer: Has your insurer issued a “Reservation of Rights” letter? (law note)
April 20, 2017 —
Melissa Dewey Brumback - Construction Law in North CarolinaIn my previous post, I made reference to getting a “Reservation of Rights” letter. I noted that the carrier may decide to defend you under a Reservation of Rights (i.e., hire your lawyer) but may not, necessarily, accept the responsibility for paying the claim. Does this mean that the insurance company has denied your claim, or will never pay? No.
Reservation of Rights (ROR) letters are sent for a variety of reasons- most notably, when some portion of the construction lawsuit against you is not covered under your E&O policy. The letter must state the reason(s) that the ROR is being issued.
With the ROR, the insurance company is telling you that it reserves the right to withdraw from your defense and/or deny payment of damages at a later date, depending upon how facts in the case develop. The notice is intended to let you know that there *may* be issues later, and to put you notice that you have the right to hire your own lawyer (at your own expense) to protect yourself from that future potential risk.
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
Over a Hundred Thousand Superstorm Sandy Cases Re-Opened
March 12, 2015 —
Beverley BevenFlorez-CDJ STAFFThe Federal Emergency Management Agency (FEMA) announced yesterday that they will be reopening 144,000 flood insurance claims, reported the New Jersey Law Journal.
The announcement comes weeks after reports that “some insurance companies denied thousands of claims after fraudulently altering engineering reports, as well as complaints that insurance companies systematically underpay on claims because they fear a backlash from FEMA.”
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Do We Really Want Courts Deciding if Our Construction Contracts are Fair?
March 19, 2015 —
Christopher G. Hill – Construction Law MusingsAs I posted recently, the Virginia General Assembly has passed, and I can see no reason why the governor won’t sign, a bill that would
essentially invalidate preemptive contractual waivers of lien rights as they relate to subcontractors and material suppliers. It does not apply to General Contractors, but it is a step in what many (including those attorneys that represent subcontractors and suppliers) believe is the right direction.
Of course, as soon as I posted last week, my friend and colleague
Scott Wolfe (@scottwolfejr) commented on that post and then
gave his two cents worth at his Zlien blog. The gist of the comments here at Musings and the post over at his blog was essentially that these contractual provisions were inherently unfair and therefore should be abolished because of both a relative disparity in leverage between the Owner or GC and the Subcontractor when it comes to negotiations and the fact that subcontractors often don’t read their contracts or
discuss them with a construction attorney prior to signing them. I hear this first of his arguments often when I am reviewing a contract after the fact and a client or potential client acts surprised that a provision will be enforced and the courts of the Commonwealth of Virginia will actually enforce them. As to Scott’s second reason, I have always warned here at Musings that
you should read your contracts carefully because they will be the law of your business relationship in the future.
The first of his two points is more interesting and in some ways more easily supported. However, where we are speaking of contracts between businesses where both sides are bound by the terms of the contract, it begs the question of whether in seeking to make contracts more “fair” we could add a layer of uncertainty that could cause more problems than it solves. Do we really want courts stepping in after the fact to renegotiate the terms of a deal that was struck months or possibly years before because one judge believes that the deal was too one sided? Do we really need such “Monday morning quarterbacking?” Is one person’s idea of “fair” better than another’s when both parties to the contract had the full ability to read, negotiate and possibly reject the deal long ago? Personally, I think that the answer to these questions is, in all but the most egregious cases or where the legislatures have stepped in adding certainty (whether to the good or bad), “No.”
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Amazon HQ2 Puts Concrete on an Embodied Carbon Diet
January 17, 2022 —
Nadine M. Post - Engineering News-RecordBefore the ground-breaking for Amazon’s 2.1-million-sq-ft Metropolitan Park office development across the Potomac River from the nation’s capital, Clark Construction Group’s John Swagart and Jeff King walked door to door, introducing themselves to shopkeepers near the MetPark site. The good-will ambassadors were pounding the pavement to inform MetPark’s neighbors of the plan to dig a 50-ft-deep hole—710 ft x 310 ft—and create two 22-story buildings.
Reprinted courtesy of
Nadine M. Post, Engineering News-Record
Ms. Post may be contacted at postn@enr.com
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Is Your Home Improvement Contract Putting You At Risk?
February 10, 2020 —
Hannah Kreuser - Porter Law GroupIf you are like many contractors, odds are that your home improvement contract (HIC) is not compliant with California law, putting you at risk for disciplinary action, voiding of the contract, and even criminal prosecution.
Generally, the laws allow parties to contract how they wish. However, California HICs are an exception and California Business and Professions Code (BPC) requires much in the way of content, form and formatting for a HIC to meet the legal requirements. This is because California has written its laws to provide broad protections to homeowners when it comes to construction work performed at their residence. However, in attempting to promote this goal, the laws surrounding HICs have produced requirements that are confusing and fail to account for the realities of a home improvement project, making it difficult and uncomfortable for contractors to comply.
A HIC is required for home improvement projects that change a residence or property. Specifically, the law defines a “home improvement” as “the repairing, remodeling, altering, converting, or modernizing of, or adding to, residential property and shall include, but not be limited to, the construction, erection, replacement or improvement of driveways, swimming pools, including spas and hot tubs, terraces, patios, awnings, storm windows, landscaping, fences, porches, garages, fallout shelters, basements, and other improvements of the structures or land which is adjacent to a dwelling house.” (BPC section 7151.) A HIC is not required for new residential construction; for work priced at $500 or less; the sale, installation, and service of a fire alarm or burglar system; or a service and repair contract (which has its own requirements).
When a HIC is used, BPC section 7159 specifies certain content, form, and format requirements, all of which must be followed to produce a compliant HIC. While this article will not discuss all of these requirements, it will discuss some of the problems commonly seen in HICs.
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Hannah Kreuser, Porter Law GroupMs. Kreuser may be contacted at
hkreuser@porterlaw.com
Five-Year Peak for Available Construction Jobs
December 11, 2013 —
CDJ STAFFThere are more job openings in construction now than there have been since 2008. The October jobs report from the Bureau of Labor Statistics reported 124,000 job openings in construction. With the demand for workers, some builders have experienced labor shortages, according to the National Association of Home Builders. The NAHB expects the trend to continue into 2014, “if firms can find workers with the right skills.”
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New OSHA Regulations on Confined Spaces in Construction
May 20, 2015 —
Craig Martin – Construction Contractor AdvisorOn May 1, OSHA announced its final rules for construction workers in confined spaces. The Final Rules, which will take effect August 3, 2015, will require more comprehensive training , with the goal of providing construction workers the same or similar protections as employees in manufacturing and general industry.
The final rule will cover confined spaces such as:
- Crawl spaces
- Manholes
- Tanks
- Sewers
The final rule will require the following:
- Confined spaces must be large enough for an employee to enter and have a means of exiting.
- The air in confined spaces must be tested before workers enter them to ensure that the air is safe.
- Construction workers must share safety information with others when they are going to work in enclosed/confined spaces.
- Hazards associated with confined spaces must be continuously monitored and abated to the extent possible.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Testimony from Insureds' Expert Limited By Motion In Limine
October 21, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe court considered the scope of testimony to be offered by the insureds' expert regarding a policy written for sanitation districts. Binghamton-Johnson City Joint Sewage Bd. v. Am. Alternative Ins. Corp., 2015 U.S. Dist. LEXIS 112210 (N.D. N.Y. Aug. 25, 2015).
The city of Binghamton and the city's Sewage Board sued American Alternative Insurance Corporation (AAIC) for coverage for a collapsed wall. AAIC sought the limit to testimony of the insureds' expert, Paul B. Nielander, through a motion in limine.
AAIC argued that Nielander was not qualified as an expert in interpreting insurance policies. His knowledge and experience was limited to insurance practices in other states and the words contained in policies other than AAIC policies. He had no experience with (i) negotiating, drafting, or performing under an AAIC policy, (ii) handling claims or interpreting policies written in New York State, or (iii) drafting policies or otherwise participating in what he conceded was a "niche market" of providing insurance to sanitation districts. Further, Neilander was not qualified to offer expert analysis of when the structural failure of the wall occurred because he had no training or experience as an engineer.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com