2019’s Biggest Labor and Employment Moves Affecting Construction
January 27, 2020 —
Micah Dawson - Construction ExecutiveThe construction industry is fueled by change, which is the only constant in life and construction. Still, continuous change makes compliance with state and federal laws and regulations more difficult.
While contractors may thrive on the frantic pace, sometimes it is good to look back and ensure they have an understanding of, and are complying with, the newest regulations and laws.
Top 10 Stories Dominating Employment Law in Construction
1. Trio of Federal Joint Employment Rules Expected in December 2019
Joint employment took center stage during the November 20, 2019 release of the Fall Regulatory Agenda, as three separate federal agencies announced plans to move forward with revised joint employment rules in December. While the Department of Labor and the National Labor Relations Board had already released versions of their draft rules, the Equal Employment Opportunity Commission also announced that it would weigh in on the topic before the end of 2019. As of January 10, 2020, the EEOC had not done so.
2. NLRB Tightens Union Access to Employer Property
In a ruling that levels the labor relations playing field, the NLRB ruled that employers could rightfully eject outside union representatives soliciting petition signatures from a shared shopping center parking area. When read in conjunction with an earlier 2019 decision conferring greater rights to limit on-premises union activity by abolishing the “public space” exception, the NLRB has significantly restricted union access to private employer property.
Reprinted courtesy of
Micah Dawson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Dawson may be contacted at
mdawson@fisherphillips.com
Forget Palm Springs—Santa Fe Is the New Mecca for Modern Architecture
November 19, 2021 —
James Tarmy - BloombergThe writer Helen Thompson had been a lifelong visitor to Santa Fe, but when she arrived at Georgia O’Keeffe’s home at Ghost Ranch 30 years ago, “I was shocked,” Thompson says. “Everything there was modern: Her furniture was modern; her light fixtures were modern; her art, of course, was modern. And in this rustic setting, the landscape is so powerful, it was all so elemental. That shock stayed with me.”
It was an experience, Thompson says, that led her to the conclusion that Santa Fe, long understood as a city filled with vernacular, decorative architecture, was ripe for a rethinking. “I kept wondering, why does something like that look so right here?” she says. “The landscape is so distinctive, and so not-modern, and yet these very precise pieces of furniture looked so right.”
Now, with her new book Santa Fe Modern: Contemporary Design in the High Desert (Monacelli, $50), Thompson has cracked the code. “Modern ideas are site-specific, and tied into what’s right for the landscape and the environment,” she says. Naturally, she continues, this conceptual framework works well in a place like New Mexico, where the dramatic horizon meets an even more dramatic sky.
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James Tarmy, Bloomberg
Endorsements Do Not Exclude Coverage for Wrongful Death Claim
August 30, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer's motion for summary judgment, attempting to bar coverage under two endorsements for a wrongful death suit, was denied. Essex Ins. Co. v. FD Event Co., LLC, 2017 U.S. Dist. LEXIS 124400 (C.D. Calif. July 25, 2017).
FD Event owned an amusement attraction known as Free Drop, which was operated at county fairs and festivals. Participants paid an admission fee to FD Event in order to jump from a scaffold structure onto an inflatable airbag below.
FD Event had a policy with Essex. When securing the policy, FD Event understood that there was no coverage for amusement devices, inflatables, rides or animals. 28th Event, who ran the San Bernardino County Fair, was an additional insured on the policy.
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Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Pending Sales of Existing Homes in U.S. Decline for Eighth Month
March 31, 2014 —
Shobhana Chandra – BloombergContracts to purchase previously owned U.S. homes unexpectedly fell in February for an eighth straight month, a sign of further weakness in the industry.
The index of pending home sales decreased 0.8 percent after a 0.2 percent drop the prior month that was previously reported as a gain, figures from the National Association of Realtors showed today in Washington. The median forecast of 39 economists surveyed by Bloomberg called for a 0.2 percent rise.
Colder-than-normal weather probably played a role in discouraging prospective buyers faced with rising mortgage rates, higher prices and limited supply of cheaper properties. At the same time, the Realtors group said buyer traffic is stabilizing, which may help spur demand as temperatures warm.
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Shobhana Chandra, BloombergMs. Chandra may be contacted at
schandra1@bloomberg.net
Colorado Federal Court Confirms Consequetial Property Damage, But Finds No Coverage for Subcontractor
November 01, 2022 —
Tred R. Eyerly - Insurance Law HawaiiA recommended decision from the Magistrate Judge of the Federal District Court for the District of Colorado found there was no coverage for the subcontractor's faulty workmanship, but recognized that Colorado finds consequential damages to be property damage. Indian Harbor Ins. Co. v. Houston Cas. Co., 2022 U.S. Dist. LEXIS 117857 (D. Colo. July 5, 2022).
The insured, Tripp Construction, was a subcontrator for contructing balconies at an apartment complex. The owner complained that Tripp failed to properly install balconies. The defective installation of certain balcony components damaged other, non-defective components.
The general contractor had an OCIP policy issued by Houston Casualty Company (HCC). The general contractor also had a Subcontractor Default policy issued by Indian Harbor.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
COVID-19 Impacts on Subcontractor Default Insurance and Ripple Effects
April 20, 2020 —
Smith CurrieSubcontractor default insurance (“SDI”) may be described as an alternative to bonding subcontractors. SDI is first-party insurance that compensates the general contractor insured in the event a covered subcontractor fails to fulfill its contractual obligations. Under SDI policies, general contractor insureds are obligated to develop and implement rigorous subcontractor prequalification procedures.
Basic questions and answers about how SDI might come into play and impact the construction industry in response to COVID-19 follow:
Who may make a claim on an SDI policy?
The general contractor may make a claim. An Owner may make a claim if the general contractor becomes insolvent in many cases. Subcontractors may not make claims on SDI policies.
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Smith CurrieThe Smith Currie firm may be contacted at
info@smithcurrie.com
The “Builder’s Remedy” Looms Over Bay Area Cities
February 20, 2023 —
Allan C. Van Vliet, Cara M. MacDonald, Robert G. Howard & Robert C. Herr - Gravel2Gavel Construction & Real Estate Law BlogCities in the San Francisco Bay Area are frantically working to finalize their state-mandated “housing elements” in their General Plans by the January 31, 2023, deadline imposed by the California Department of Housing and Community Development (HCD). For Bay Area cities like San Francisco, Oakland, San Jose and Berkeley, the plans must be approved by HCD
on or before January 31, 2023. California municipalities have extra incentive to get their housing elements approved this year, because the failure to meet the deadline may subject them to a remedy known as
the “builder’s remedy.”
The failure of cities in California to adopt and implement adequate housing elements as part of their General Plans has contributed to the state’s serious housing affordability crisis. The “builder’s remedy” incentivizes cities to meet housing element deadlines, because failure to do so could cause cities to lose control over certain land use entitlement decisions for projects that include housing under the state’s Housing Accountability Act (HAA).
Reprinted courtesy of
Allan C. Van Vliet, Pillsbury,
Cara M. MacDonald, Pillsbury,
Robert G. Howard, Pillsbury and
Robert C. Herr, Pillsbury
Mr. Van Vliet may be contacted at allan.vanvliet@pillsburylaw.com
Ms. MacDonald may be contacted at cara.macdonald@pillsburylaw.com
Mr. Howard may be contacted at robert.howard@pillsburylaw.com
Mr. Herr may be contacted at robert.herr@pillsburylaw.com
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Texas Supreme Court to Rehear Menchaca Bad Faith Case
January 10, 2018 —
Sean P. Mahoney – Complex Insurance Coverage ReporterOn December 15th, the Texas Supreme Court agreed to revisit its April 7, 2017 decision in
USAA Texas Lloyds Co. v. Menchaca, No. 14-0721, a “bad faith” case arising out of Hurricane Ike damage, in which the court held that a policyholder could potentially recover policy benefits for statutory bad faith under Texas law, even though a jury concluded that the insurer did not breach the terms of the policy, if the policyholder could show that she was nevertheless entitled to the benefit. The decision to rehear this matter comes at the urging of insurers and interested groups, including the Insurance Council of Texas and the U.S. Chamber of Commerce, who argued that the April 7, 2017 ruling substantially unsettled Texas insurance law.
Menchaca is a first-party property insurance coverage case. After Hurricane Ike struck in 2008, plaintiff Menchaca submitted a claim under her homeowners policy to USAA. A USAA adjuster later concluded that Menchaca’s property suffered only “minimal damage” that fell below the deductible. Menchaca sued claiming breach of contract and unfair claims settlement practices in violation of the Texas Insurance Code. As damages, she sought only the policy benefit, court costs, and attorneys’ fees.
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Sean P. Mahoney, White and Williams LLP Mr. Mahoney may be contacted at
mahoneys@whiteandwilliams.com