Fire Damages Unfinished Hospital Tower at NYU Langone Medical Center
December 15, 2016 —
Jeff Rubenstone – Engineering News-RecordA fire broke out Dec. 14 at a hospital tower under construction at NYU Langone Medical Center in New York City. The blaze sent a column of thick black smoke up through the Manhattan skyline.
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Jeff Rubenstone, Engineering News-RecordMr. Rubenstone may be contacted at
rubenstonej@enr.com
Insurer's Summary Judgment Motion on Business Risk Exclusions Fails
November 15, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer unsuccessfully moved for summary judgment on the CGL policy's business risk exclusions. Scottsdale Ins. Co. v. TL Spreader, LLC, (W.D. La. Oct. 20, 2017).
Helena Chemical Company contracted with its customer Wild Farms to sell and apply certain herbicides and pesticides to Wild Farms' 123 acre rice filed. Helena subcontracted the TL Spreader, LLC (TLS) to apply the chemicals to Wild Farm's rice field. The TLS employee failed to properly neutralize a chemical being used in the spray.
TLS finished its work on May 6, 2014, completing all its work for Helena's contract with Wild Farms. Three days after completion of the spraying, the rice crop first began to exhibit physical damage in the form of abnormal stunting, lesions, yellowing and death.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Additional Insured is Loss Payee after Hurricane Damage
October 01, 2024 —
Tred R. Eyerly - Insurance Law HawaiiConstruing the policy language, the federal district court found that the policy's additional insured was the loss payee for damage caused by Hurricanes Laura and Delta. TCP Ryan St. LLC v. Weschester Surplus Lines Ins. Co., 2024 U.S. Dist. LEXIS 125529 (W.D. La. July 16, 2024).
Hurricanes Laura and Delta caused damage to TCP Ryan Street, LLC's (TCP) property. Westchester had issued a policy to MRI Heritage Brand, Inc. (MRI). MRI, as lessee, was obligated pursuant to the lease terms to "purchase and maintain . . . a policy of fire, extended coverage, vandalism and malicious mischief (or 'all risk') insurance coverage on all real property situated at the Lease Premises." The lease also required MRI to obtain coverage under a policy naming only the landlord as the sole insured and provided that the proceeds would be payable to the landlord.
The policy provided that no entity was covered unless Westchester had received identifying information for the entity during the application process or the entity was added by endorsement.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Recovering For Inflation On Federal Contracts: Recent DOD Guidance On Economic Price Adjustment Clauses
October 24, 2022 —
Amanda L. Marutzky - ConsensusDocsSince October 2020, inflation in the United States has seen its fastest increase in more than 30 years. In the last year alone, inflation has remained as high as 8.6%. This hike has impacted everything from diesel to steel. In the construction industry, the higher prices of goods and services directly affect how contractors draft their construction contracts.
The Department of Defense (DoD) has taken note of this dramatic price increase and recently issued guidance to its commanding officers and the procurement community. On May 5, 2022, DoD issued a memorandum titled “Guidance on Inflation and Economic Price Adjustments.” The stated purpose of the memo is “to assist COs to understand whether it is appropriate to recognize cost increases due to inflation under existing contracts as well as offer considerations for the proper use of EPA when entering into new contracts.” DoD’s memo responds to contractor and contracting officer concerns about the sudden and unexpected cost increases in labor and materials.
Economic Price Adjustments, or EPAs, are adjustments to a stated contract price upon the occurrence of certain contingencies. FAR 16.203-1. They are of three general types – (1) adjustments based on established prices, (2) adjustments based on actual costs of labor or material, or (3) adjustments based on cost indexes of labor or material. Id. Because EPAs allow for adjustments in a contract price, EPA clauses allow a contractor to recover unanticipated increases in its project costs. For example, FAR 52.216-4, Economic Price Adjustment-Labor and Material, authorizes a contractor to recover for increases in the cost of material or labor. Such recovery is available when costs increase more than 3%, with a maximum recovery of 10% of the original contract price. See also FAR 52.216-2 through FAR 52.216-4. These EPA clauses provide contractors with relief and protection from issues such as dramatic inflation. EPA clauses, however, are not included in all contracts.
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Amanda L. Marutzky, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs)Ms. Marutzky may be contacted at
amarutzky@watttieder.com
Who is Responsible for Construction Defect Repairs?
August 24, 2017 —
Laura Parsons-CDJ STAFFAn appellate court has ruled that the sponsor and not the condo board is responsible for repairing construction defects at 50 Madison Avenue, a multi-story apartment building in New York City across from Madison Square Park, Habitat reported. Plaintiff’s Simon and Ludmilla Lorne have brought upon three lawsuits in a legal battle lasting a decade.
The first came in 2007, two years after the Lorne’s purchased their $3 million seventh-floor apartment. At that time, the sponsor offered to repair the concrete slab under the hardwood floors that had not been properly leveled. However, the Lorne’s and the condo board disagreed about who and how the repairs would be accomplished. The second lawsuit wherein the court ruled that repairing the construction defects was the responsibility of the sponsor occurred in 2009. However, the Lorne’s sued the board yet again in 2015, citing failure to maintain and repair the building. Since the 2015 suit was based on the same allegations as the 2007 suit, it was dismissed by the judge.
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Ruling Dealing with Constructive Changes, Constructive Suspension, and the Implied Covenant of Good Faith and Fair Dealing
January 22, 2024 —
David Adelstein - Florida Construction Legal UpdatesA dispute pending in the Armed Services Board of Contract Appeals (ASBCA) dealt with interesting legal issues on a motion to dismiss. See Appeals of McCarthy Hitt-Next NGA West JV, ASBCA No. 63571, 2023 WL 9179193 (ASBCA 2023). The dispute involves a contractor passing through subcontractor claims due to impacts caused by the COVID-19 pandemic and the government’s response to the pandemic. More particularly, the claim centers on the premise that the government “failed to work with [the contractor] in good faith to develop a collaborative and cooperative approach to manage and mitigate the impacts and delays arising from the COVID-19 pandemic.” See Appeals of McCarthy Hitt.
The contractor (again, submitting pass through claims from subcontractors) claimed: (a) constructive changes to the contract entitling it to an equitable adjustment under the Changes clause of Federal Acquisition Regulation (F.A.R.) 52.243-4; (b) construction suspensions of the contractor’s work entitling it to an equitable adjustment under the Suspensions of Work clause of F.A.R. 52-242-14; and (c) the government breached the implied covenant of good faith and fair dealing. Each of these legal issues and theories will be discussed below because they are need-to-know legal issues. Keep these legal issues in mind, and the ASBCA’s ruling on the motion to dismiss as its analysis may demonstrate fruitful in other applications.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Architect Norman Foster Tells COP26: Change 'Traditional' City Design to Combat Climate Change
November 19, 2021 —
James Leggate - Engineering News-RecordRegaining control over the climate crisis will require a change in the way cities are designed and built, noted British architect Sir Norman Foster told global attendees at the
COP26 summit in Glasgow, Scotland, in a presentation with John Kerry, President Joe Biden's special climate envoy.
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James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
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Wonder How 2021 May Differ From 2020? Federal Data Privacy May Be Enacted - Be Prepared
February 22, 2021 —
Joshua Bevitz - Newmeyer DillionState data privacy laws, which are far from uniform, are on the rise. To address that, as well the public’s increasing concern with protecting their private information, it is expected that there will be a serious effort in Congress this year to enact federal data privacy legislation. Here is what you need to know to ensure your business is ready for potential federal regulation.
Applicable State Laws
As is widely known, some states have recently enacted data privacy legislation to protect consumers. For example, in early 2020, California’s new privacy law, the California Consumer Privacy Act (CCPA), took effect, giving consumers more discretion regarding over how companies share and use their personal information. (For years, California already had in place its Database Security Breach Notification Act.) More recently, California enacted the California Privacy Rights and Enforcement Act (CPRA), which amends and strengthens the CCPA. Other states, such as Maine, Nevada, New York, Oregon, and Washington, have enacted their own data privacy legislation.
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Joshua Bevitz, Newmeyer DillionMr. Bevitz may be contacted at
joshua.bevitz@ndlf.com