Ambiguity in Pennsylvania’s Statute of Repose Finally Cleared up by Superior Court
October 17, 2023 —
Mark L. Parisi - White and Williams LLPIn an unpublished opinion from the Pennsylvania Superior Court handed down on August 31, 2023, a long-standing disagreement about the wording of Pennsylvania's Statute of Repose was finally resolved. In Pennsylvania, “a civil action or proceeding brought against any person lawfully performing or furnishing the design, planning, supervision or observation of construction or construction of any improvement to real property must be commenced within 12 years after completion of construction of such improvement” to recover most forms of damages that are sought in these kinds of cases.
A statute of repose is different than a statute of limitations. A statute of repose is a hard line that does not shift. There is no discovery rule with a statute of repose. Most, if not all, states have statutes of repose for construction. The Pennsylvania statute of repose is among the longest in the country. It can be even longer – up to 14 years – if the injury (including property damage) or wrongful death “shall occur more than 10 and within 12 years after completion of construction.”
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Mark L. Parisi, White and Williams LLPMr. Parisi may be contacted at
parisim@whiteandwilliams.com
U.S. Army Corps Announces Regulatory Program “Modernization” Plan
August 03, 2022 —
Karen Bennett - Lewis BrisboisWashington D.C. (June 17, 2022) - The U.S. Army Corps of Engineers and the Department of the Army recently announced plans to amend the Corps Civil Works program to better serve Indian nations and other disadvantaged and underserved communities. 87 Fed. Reg. 33758 (June 3, 2022). Comments are due by August 2, 2022.
Several items warrant attention. The first are changes to Corps regulations on implementation of the National Historic Preservation Act (NHPA, or the Act) (33 CFR 325, Appendix C). Proposed options include suspension of the Corps’ Appendix C regulations and adoption of the Advisory Council on Historic Preservation’s (ACHP) regulations. Congress established the ACHP, an independent agency whose mission is to provide the President and Congress with advice as to policies and programs on historical preservation. The NHPA authorized the Council to promulgate regulations establishing procedures for evaluating the effect of a federal action on historic property. The Act also provides that a federal agency may promulgate its own regulations, consistent with the Council’s regulations. Where an agency has its own regulations, courts have consistently held that the agency’s regulations govern decision-making, provided they are not inconsistent with the Part 800 regulations. Most courts have generally regarded an agency’s regulations as inconsistent when they are less restrictive procedurally than the Council’s. Until today, the Corps has defended Appendix C and interim guidance (issued in 2005 and 2007) as consistent with the NHPA and specifically tailored for use in the Corps regulatory program. The announcement marks a significant directional change and gives the ACHP a larger role in Corps regulatory decisions.
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Karen Bennett, Lewis BrisboisMs. Bennett may be contacted at
Karen.Bennett@lewisbrisbois.com
Climate-Proofing Your Home: Upgrades to Weather a Drought
January 03, 2022 —
Todd Woody - BloombergClimate-driven drought is making the once unthinkable foreseeable. Amid water shortages, your faucets could run dry, as has been a possibility in Marin County, California. Violate mandatory water restrictions and you might face steep fines or even a cutoff of service.
With the western United States in the grip of an extreme drought, rivers and reservoirs are at record lows and some water utility districts in California have asked residents to curtail consumption by as much as 40%. A 2019 study found regions across the nation could face water shortages in the coming decades in part due to climate change.
That puts a premium on making homes more resilient to drought by maximizing efficiency and minimizing waste through technologies that monitor consumption and recycle and capture water that would otherwise be lost.
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Todd Woody, Bloomberg
Patriarch Partners Decision Confirms Government Subpoenas May Constitute a “Claim” Under D&O Policy; Warns Policyholders to Think Broadly When Representing Facts and Circumstances to Insurers
January 08, 2019 —
Michael S. Levine, Sergio F. Oehninger, & Joshua S. Paster - Hunton Andrews KurthThe Second Circuit recently confirmed in Patriarch Partners, LLC v. Axis Insurance Co. that a warranty letter accompanying the policyholder’s insurance application barred coverage for a lengthy SEC investigation, which ripened into a “Claim” prior to the policy’s inception date. The opinion left intact the lower court’s finding that the SEC subpoena constituted a “demand for non-monetary relief” and thus qualified as a “Claim” under the directors and officers (D&O) insurance policy.
Reprinted courtesy of Hunton Andrews Kurth attorneys
Michael S. Levine,
Sergio F. Oehninger and
Joshua S. Paster
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Oehninger may be contacted at soehninger@HuntonAK.com
Mr. Paster may be contacted at jpaster@HuntonAK.com
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Traub Lieberman Attorneys Jessica Burtnett and Jessica Kull Obtain Dismissal of Claim Against Insurance Producer Based Upon Statute of Limitations
August 20, 2019 —
Jessica Burtnett & Jessica N. Kull - Traub LiebermanTraub Lieberman Straus & Shrewsberry attorneys Jessica Burtnett and Jessica Kull successfully obtained a dismissal with prejudice on behalf of their client after oral argument for a lawsuit filed in the Circuit Court of Cook County. Mrs. Burtnett and Ms. Kull represented an insurance broker who was sued by one of its customers, a property management company, for failure to procure a correct policy of insurance that would have provided coverage for an underlying class action lawsuit asserting statutory violations.
In their motion, Mrs. Burtnett and Ms. Kull argued that the Plaintiff failed to file the lawsuit within the applicable two year statute of limitations outlined in the Illinois Insurance Producers Act 735 ILCS 5/13-214.4. Based on a recent ruling by the Illinois Supreme Court in the case of Am. Family Mut. Ins. Co. v. Krop, 2018 IL 122556, ¶ 13, reh’g denied (Nov. 26, 2018), Mrs. Burtnett and Ms. Kull argued that the statute of limitations began to accrue at the moment the allegedly non-conforming policy was delivered to the customer Plaintiff. In this case, Mrs. Burtnett and Ms. Kull argued that the subject policy was purchased and received before it became effective on November 25, 2015. Thus, at the absolute latest, the statute of limitations expired two years later on November 25, 2017. Since the lawsuit was not filed until October 4, 2018, the Plaintiff was approximately 10 months too late to assert a valid claim.
In response, the Plaintiff tried to factually distinguish the Krop case by arguing it involved a claim against a captive agent rather than a broker. Plaintiff further argued that a broker maintains a fiduciary duty to its clients and, therefore, the two year statute of limitations applied in Krop did not apply to a broker. Plaintiff also argued the Illinois Insurance Placement Liability Act was unconstitutional.
Reprinted courtesy of
Jessica Burtnett, Traub Lieberman and
Jessica N. Kull, Traub Lieberman
Ms. Burtnett may be contacted at jburtnett@tlsslaw.com
Ms. Kull may be contacted at jkull@tlsslaw.com
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Don't Count On a Housing Slowdown to Improve Affordability
June 13, 2022 —
Conor Sen - BloombergAs mortgage rates continue to rise, all eyes are fixed on the housing market for signs of a potential slowdown. But any slowdown that does materialize won't affect the industry equally because it isn't going to be about fundamental problems with the housing market. Rather, it will be the result of the Federal Reserve intentionally increasing borrowing costs to cool off inflation.
The Fed's efforts are happening in the context of a supply-constrained market where homebuilders have been struggling to complete as many homes as they would like. Any negative impact of rising mortgage rates would be felt disproportionately where affordability problems already are the worst — high-cost coastal markets — and then in materials for the early part of the construction cycle, such as lumber.
Understanding the nature of the housing challenge is important so that you aren’t tempted to compare the situation with past downturns. For now, at least, there is no broad industry downturn as we’ve seen before in oil and gas or the technology sector that would lead to the housing market suffering in places like Houston or the San Francisco Bay Area. Homeowners haven't taken on too much debt, and there's no inventory glut — quite the opposite, in fact — that would lead to a broad-based downturn.
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Conor Sen, Bloomberg
The Registered Agent Advantage
October 22, 2014 —
Christopher G. Hill – Construction Law MusingsIn the Commonwealth of Virginia, as in most states, all corporations, LLC’s or other corporate style entities are required to have a registered agent if they are to do business in the Commonwealth. The reasons for the requirement are many, but the main ones are taxation, service of process and communication from the Virginia State Corporation Commission (the “SCC”). Without such a registered agent, many rights, for example the right to prosecute a lawsuit, are not available to the unregistered entity.
As a construction company that I hope is incorporated (if you aren’t you should do take this step), your registered agent can be an officer of the company, a company that meets the requirements of the SCC that allow it to act as a registered agent, or an attorney licensed in the Commonwealth of Virginia. It is this last category that you should carefully consider.
Why do I think that a Virginia construction attorney is the best candidate for use as the registered agent of either a local or out of state contractor or subcontractor? As you might imagine from the title of this post, I’ll let you know.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Electrical Subcontractor Sues over Termination
November 13, 2013 —
CDJ STAFFMillennium Plus, Inc. has sued the contractor for the Efrain A. Duran Water Treatment Plant Facility and Rio Grande City for failing to pay money due to them and terminating the contract. According to the lawsuit, Millennium is claiming that they are owed $161,781 for their work on the water treatment facility.
According to the city, the project’s contractor was “very unsatisfied with Millennium’s work.” Although the city disclaims any involvement, Millennium claims it was a “joint enterprise.”
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