Former Mayor Arrested for Violating Stop Work Order
October 30, 2013 —
CDJ STAFFThe former mayor of Springfield, Florida has been arrested on charges of insurance fraud. More than a year ago, an investigator for the Bureau of Workers’ Compensation found that an employee of Walker’s construction company was working without workers’ compensation and issued a stop work order. Walker’s employees continued work.
The charges were delayed because Walker challenged the stop work order. Once it was determined that the stop work order was issued properly, Walker was charged with a third-degree felony.
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Comparing Contracts: A Review of the AIA 201 and ConsensusDocs - Part I
March 22, 2018 —
Michael Sams and Amanda Cox – Construction Executive, A publication of Associated Builders and Contractors. All Rights Reserved.Here’s a helpful comparison of and analysis of some important contract sections in the
AIA 201 (2007 and 2017 versions) and
ConsensusDocs (2014 and 2017 versions). While not intended to be all inclusive, this summary comparison of the contract documents will run as a three-part series. Part I covers Financial Assurances, Design Risk, Project Management and Contract Administration. Part II will cover Schedule/Time, Consequential Damages/LDs, Claims and Disputes/ADR. Part III will cover Insurance and Indemnification and Payment.
FINANCIAL ASSURANCES
- What assurances are there that the owner can pay for the project?
- The Contractor should have the right to request and obtain proof that the Owner has funding sufficient to pay for the Work. The provision should also provide that the Contractor may terminate the Contract if the Owner refuses to allow a review of funding documents, or should the Contractor reasonably determine that the Owner does not have sufficient funds to pay for the Work.
Relevant Sections:
- A201 2007 Section 2.2.1; 2017 Section 2.2.1-2.2.2 A201
- 2014 & 2017 ConsensusDocs 200: Section 4.2
AIA:
- Section 2.2.1 A201 2007 & 2017: Both editions require the Owner, upon Contractor’s written request, to provide, “reasonable evidence that the Owner has made financial arrangements to fulfill the Owner’s obligations under the Contract.” Thereafter, the Contractor may only request such evidence if (1) the Owner fails to make payments; (2) a change in the Work materially changes the Contract Sum; or (3) the Contractor identifies in writing a reasonable concern regarding the Owner’s ability to make payment when due. If the Owner does not comply, the Contractor may stop work.
- Additionally, A201 2017 Section 2.2.2 awards costs to the Contractor for demobilization and remobilization.
Reprinted courtesy of
Michael Sams , Kenney & Sams and
Amanda Cox, Kenney & Sams
Mr. Sams may be contacted at mpsams@KandSlegal.com
Ms. Cox may be contacted at ajcox@KandSlegal.com
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Orange County Team Obtains Unanimous Defense Verdict in Case Involving Failed Real Estate Transaction
March 25, 2024 —
Lewis Brisbois NewsroomOrange County, Calif. (March 4, 2024) - Orange County Partners Esther P. Holm and Alexandra Anast obtained a unanimous defense verdict in a real estate matter involving a failed real estate transaction. The property at issue, which was located in the West Hollywood Hills and had beautiful views, was undergoing extensive remodeling. There were several bids for its purchase. Ultimately, the plaintiff, a real estate investor, was awarded the purchase.
The plaintiff and the seller entered into a real estate purchase agreement, but the plaintiff failed to release the physical contingencies within the 17-day period prescribed by the contract. Instead, the plaintiff demanded a reduction in price, which the seller rejected. The plaintiff then filed a lis pendens on the property, clouding the title and making it impossible for the sellers to sell the property to anyone else. The buyer and seller subsequently engaged counsel. The plaintiff filed the lawsuit against the seller as well as the real estate company and its agents. Prior to trial, the plaintiff and the seller reached a settlement.
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Lewis Brisbois
Rainwater Collecting on Rooftop is not Subject to Policy's Flood Sublimits
October 15, 2024 —
Tred R. Eyerly - Insurance Law HawaiiResponding to a certified question from the First Circuit, the Supreme Judicial Court of Massachusetts determined that rainwater collecting on the insureds' rooftop and causing interior damage was not "flood" as defined in the policy and subject to sublimits. Zurich Am. Ins. Co. v. Medical Properties Trust, Inc., 2024 Mass. LEXIS ___ (Mass. July 23, 2024).
A severe thunderstorm caused heavy rain and strong winds which damaged a hospital. The hospital was owned by Medical Properties Trust, Inc. (MPT) and leased to Steward Health Care System LLC (Steward). Ground water accumulated and flooded the basement. Rainwater also accumulated on the hospital's parapet roofs and on the second-story courtyard, and eventually seeped through the parapet roofs and courtyard to the hospital's upper floors, causing damage to the building and property within.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
CA Supreme Court: Right to Repair Act (SB 800) is the Exclusive Remedy for Residential Construction Defect Claims – So Now What?
January 31, 2018 —
Steven M. Cvitanovic & Omar Parra - Publications & InsightsA torrent of alerts have been flooding e-mail inboxes regarding the California Supreme Court’s decision in
McMillin v. Superior Court, to reverse the Liberty Mutual Insurance Company v. Brookfield Crystal Cove LLC (2013) case, but with little discussion about the practical effects of the ruling. This alert will discuss how this ruling affects litigation of SB 800 Claims and Builders.
Background on Liberty Mutual Case
In 2002, the California Legislature enacted comprehensive construction defect litigation reform referred to as the Right to Repair Act (the “Act”). Among other things, the Act establishes standards for residential dwellings, and creates a prelitigation process that allows builders an opportunity to cure the construction defects before being sued. Since its enactment, however, the Act’s application has been up for debate. Most notably, in
Liberty Mutual Insurance Company v. Brookfield Crystal Cove LLC (2013), the California Court of Appeal for the Fourth District held the Act was the exclusive remedy only in instances where the defects caused only economic loss, and that homeowners could pursue other remedies in situations where the defects caused actual property damage or personal injuries.
Reprinted courtesy of
Steve Cvitanovic, Haight Brown & Bonesteel LLP and
Omar Parra, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com
Mr. Parra may be contacted at oparra@hbblaw.com
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Court Orders City to Pay for Sewer Backups
March 31, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to The Courier-Journal, in August of 2009 “raw sewage” backed “up into several houses during a torrential downpour” in Jeffersonville, Indiana. Now, a “Clark County judge has ordered the city of Jeffersonville to pay nearly $100,000 plus 8 percent annual interest for the city's negligence that led to” the incident.
The problems allegedly began after a new lift station and force main, which “previously flowed southward to the Ohio River,” was “re-routed it to Springdale.” The city was eventually “cited by the Indiana Department of Environmental Management for failing to obtain a required local permit for the Springdale upgrade.”
The Courier-Journal reported that Jeffersonville “agreed to take several steps to remedy the problem for residents and satisfy the state, which ultimately considered the issue resolved in October 2012.” Since the upgrade was completed, there have not been any further sewer backups, according to the city’s utility director, Len Ashack, as quoted by The Courier-Journal.
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Coverage Denied Where Occurrence Takes Place Outside Coverage Territory
December 11, 2018 —
Tred R. Eyerly - Insurance Law HawaiiThe court held there was no coverage for construction defect claims that occurred outside the coverage territory. Foremost Signature Ins. Co. v. Silverboys, 2018 U.S. Dist. LEXIS 154524 (S.D. Fla. Sept. 11, 2018).
Solo Design, LLC, a Miami-based design company, entered into a contract with Silverboys, LLC (Owner) to provide interior design services in conjunction with the renovation of the Owner's vacation home in the Bahamas. Solo retained Whittingham, a Bahamian architect, as a subcontractor to serve as project manager.
Owner sued Solo, Whittingham and others in Florida for breach of contract, fraud, conversion and negligence when the project did not go as planned. The underlying complaint alleged intentional misconduct, lying about qualifications and the progress of the project, submitting false invoices, requesting money for services that were not performed, etc. Owner alleged that the damages included: (a) the cost to repair substandard work; (b) loss of use of the home due to delay; and (c) overcharges for furnishings, contract fees, and expenses. The underlying complaint set forth only a few instances of physical injury to the home, including mold on the ceiling in the master shower, faulty millwork on the children's playroom bookshelf, and a defective front door and resysta facade.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Stay-At-Home Orders and Work Restrictions with 50 State Matrix
April 27, 2020 —
Smith CurrieAs each day of the coronavirus pandemic passes, more and more states, cities and counties across the country are implementing stay-at-home (or shelter-in-place) orders and restrictions on individuals and businesses. These restrictions are impacting numerous persons and businesses, including those working in the construction industry. Smith Currie is keeping abreast of these restrictions and has developed the matrix below identifying statewide and local restrictions in place. This matrix is by no means complete, and we will continue updating it as we become aware of additional orders. In the write ups included with the PDF below, you will find links to the applicable orders with more detailed information. Consult legal counsel for advice on the impact of a particular restriction or restrictions to your business.
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Smith CurrieThe firm Smith Currie may be contacted at
info@smithcurrie.com