2021 Executive Insights: Leaders in Construction Law
August 16, 2021 —
Donald Berry - Construction ExecutiveGregory Cokinos, President and CEO, Cokinos | Young
First, experience in the construction industry is of primary importance and vital to successfully negotiating construction contracts and handling construction claims and disputes. Even a mildly complex construction dispute is more than most non-construction lawyers can properly handle. Issues concerning scheduling, productivity, change management and risk shifting (among many others) are complex and unique to construction and can be further complicated by the procedural and substantive law that differs from jurisdiction to jurisdiction.
Second, it is essential that your law firm has a culture of representing construction professionals. Understanding construction nomenclature and how construction projects are staffed, organized and documented saves time and money in an already expensive and time-consuming process.
You cannot overstate the advantage of shared resources within an established construction firm when evaluating and handling construction matters. A law firm that dedicates a significant portion of its practice to the construction industry is uniquely positioned to realize this advantage. Finally, as I tell our young lawyers, “success” only comes before “work” in the dictionary. Hard work is the key to successfully negotiating a contract or executing a litigation plan in this complex industry. So, look for a firm that is not afraid of working long days and weekends to achieve success.
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Donald Berry, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Colorado Court of Appeals Confirms Senior Living Communities as “Residential Properties” for Purposes of the Homeowner Protection Act
November 06, 2023 —
Hal Baker - Colorado Construction Litigation BlogThe Third Division of the Colorado Court of Appeals recently interpreted the Homeowner Protection Act of 2007 (the “HPA”) in Heights Healthcare v. BCER, 2023 COA 44, decided on May 25, 2023. The Court held that a senior living community that is located on a parcel zoned “commercial” or “mixed use” constitutes “residential property” that is protected by the HPA, regardless of the zoning designation.
The claims in Heights Healthcare arose from a contract between BCER and Heights Healthcare for BCER to provide mechanical and electrical services relating to the installation of Packaged Terminal Air Conditioner units at the senior living community. The contract between the parties included a limitation of liability clause, limiting BCER’s liability to a total of $22,500 for the total cost of services rendered. After the installation, Heights Healthcare discovered that the air conditioner units were malfunctioning, causing too few of the eighty-four units to run and tripping the breaker—shutting down the entire system—when the outdoor temperature dropped too low. Following the discovery of the malfunction, Heights Healthcare filed suit against BCER for breach of contract under the Construction Defect Action Reform Act (“CDARA”).
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Hal Baker, Higgins, Hopkins, McLain & Roswell, LLCMr. Baker may be contacted at
baker@hhmrlaw.com
Failure to Meet Code Case Remanded to Lower Court for Attorney Fees
May 24, 2011 —
CDJ STAFFJudge Patricia J. Cottrell, ruling on the case Roger Wilkes, et al. v. Shaw Enterprises, LLC, in the Tennessee Court of Appeals, upheld the trial court’s conclusion that “the builder constructed the house in accordance with good building practices even though it was not in strict conformance with the building code.” However, Judge Cottrell directed the lower court to “award to Appellants reasonable attorneys' fees and costs incurred in their first appeal, as determined by the trial court.”
Judge Cottrell cited in her opinion the contract which specified that the house would be constructed “in accordance with good building practices.” However, after the Wilkes discovered water leakage, the inspections revealed that “that Shaw had not installed through-wall flashing and weep holes when the house was built.” The trial court concluded that:
“Separate and apart from the flashing and weep holes, the trial court concluded the Wilkeses were entitled to recover damages for the other defects they proved based on the cost of repair estimates introduced during the first and second trials, which the court adjusted for credibility reasons. Thus, the trial court recalculated the amount the Wilkeses were entitled to recover and concluded they were entitled to $17,721 for the value of repairs for defects in violation of good business practices, and an additional 15%, or $2,658.15, for management, overhead, and profit of a licensed contractor. This resulted in a judgment in the amount of $20,370.15. The trial court awarded the Wilkeses attorneys” fees through the Page 9 first trial in the amount of $5,094.78 and discretionary costs in the amount of $1,500. The total judgment following the second trial totaled $26,973.93.”
In this second appeal, Judge Cottrell concluded, that “the trial court thus did not have the authority to decide the Wilkeses were not entitled to their attorneys” fees and costs incurred in the first appeal.”
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Homeowners May Not Need to Pay Lien on Defective Log Cabin
July 01, 2011 —
CDJ STAFFThe Idaho Supreme Court has ruled in the case of Perception Construction Management v. Bell. The Bells hired PCM to build a log home, agreeing to play monthly invoices in full within ten days. The Bells paid the first four invoices in full, part of the fifth, and ceased payment after that. Beofre seventh invoice, the Bells terminated the contract and hired a new contractor. PCM filed a claim of lien and ceased work.
The Bells responded that PCM was in breach of contract and had failed to fulfill the contract in a workmanlike manner. They claimed construction defects and in the lien suit, sought to include testimony from an architect and a plumber reviewing PCM’s work. The court only allowed the architect to testify as to whether the amount of the lien was reasonable. No testimony was permitted from the plumber.
The Idaho Supreme Court concluded that the claims of construction defects were important to case and remanded it to the lower court for a new trial taking into evidence that Bell’s contention that PCM’s work was defective.
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U.S. Supreme Court Weighs in on Construction Case
January 13, 2014 —
Beverley BevenFlorez-CDJ STAFFThe U.S. Supreme Court weighed in on a construction case (Atlantic Marine Construction Co. v United States District Court for the Western District of Texas)—an occurrence newsworthy of itself, according to The California Construction Law Blog. Large general contractors may benefit by the court’s decision regarding “the enforceability of forum selection clauses.”
According to the blog, the U. S. Supreme Court set three standards, “which, together, strongly support the enforceability of forum selection clauses: (1) The party defying a forum selection clause bears the burden of proof…. (2) The inconvenience to the party defying a forum selection clause bears no weight…. [and] (3) The law of the selected forum applies when determining whether to transfer a case.”
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Construction Firm Settles Suit Over 2012 Calif. Wildfire
January 15, 2019 —
Associated Press - Engineering News-RecordSACRAMENTO, Calif. (AP) — Officials say a construction company and a logging firm have collectively agreed to pay $9 million for damages resulting from a 2012 wildfire that burned more than 1,600 acres of national forest land in Northern California.
The U.S. Attorney's office in Sacramento says Monday that the agreement settles a lawsuit brought by the federal government against Kernen Construction and Bundy & Sons Logging.
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Engineering News-RecordENR may be contacted at
ENR.com@bnpmedia.com
Award Doubled in Retrial of New Jersey Elevator Injury Case
February 14, 2014 —
Beverley BevenFlorez-CDJ STAFFRichard Tufaro, a New Jersey carpenter who suffered injuries from an elevator accident in 2005, had lost a $4 million award on appeal, but has recently “won $8million on retrial” according to The New Jersey Law Journal.
In March of 2012, during the first trial, the “jury awarded $2.8 million for pain and suffering, $233,000 in medical expenses and $950,000 per quod to Tufaro's wife, totaling about $4 million.” In March 2013 the ruling was reversed by the Appellate Division who found “the verdict sheet and Coburn's jury instructions ‘together created a misleading and ambiguous deliberative environment, fully capable of engendering an unjust result.’"
On February 11th, at the conclusion of the retrial, the jury “found Schindler Elevator and Escalator Co.'s negligent maintenance of an elevator led to a two-and-a-half-story plunge that left Richard Tufaro with neck and back injuries” and awarded Tufaro “$5.5 million for pain and suffering, $2.25 million per quod and $250,000 in medical expenses.”
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Former UN General Assembly President Charged in Bribe Scheme
October 21, 2015 —
Patricia Hurtado & Greg Farrell – BloombergA former president of the United Nations General Assembly and a billionaire Macau developer were accused of taking part in a four-year corruption scheme that included bribes to help fund a campaign for the post at the organization in exchange for the promotion of Chinese businesses.
John Ashe, president of the UN General Assembly from September 2013 to September 2014, accepted more than $1 million in payoffs from developer Ng Lap Seng and an associate to help persuade the international body to build a multibillion-dollar conference center in Macau and promote Chinese businesses, including a bank, in Antigua, according to the U.S.
The new charges, announced Tuesday, relate to an earlier case against Ng, 68, who has a personal net worth of about $1.8 billion. He’s been held in a federal jail in Manhattan since he was arrested Sept. 19, accused of bringing $4.5 million into the country and lying about its purpose to U.S. authorities.
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Patricia Hurtado, Bloomberg and
Greg Farrell, Bloomberg
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