Employees Versus Independent Contractors
February 23, 2017 —
Chadd Reynolds – Autry, Hanrahan, Hall & Cook, LLPAre the workers you employ on the job site considered employees or independent contractors? This is an important distinction that contractors and subcontractors must understand for many purposes, including federal taxes. The classification of your workers can affect their federal income, social security, and Medicare taxes, and the type of benefits they can receive.
When determining whether workers should be classified as employees or independent contractors, courts generally look at three key factors: behavioral control, financial control, and the relationship of the parties.
Behavior Control
Behavior control concerns the business’s right to direct or control how the worker does its work. A worker is likely to be considered an employee when the business maintains behavior control. Such control can be exercised by giving instructions. This would include instructions on how, when, or where to do the work, what tools or equipment to use, who to hire to help with the work, or where to purchase the supplies to be used. Behavioral control can also occur through training. If the business provides training to tell the worker to do the work in a certain manner then the worker is more likely to be an employee.
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Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLPMr. Reynolds may be contacted at
reynolds@ahclaw.com
Define the Forum and Scope of Recovery in Contract Disputes
March 02, 2020 —
Phillip L. Sampson Jr. & Richard F. Whiteley - Construction ExecutivePrivate and public companies spend billions of dollars every year on construction projects. For these projects, time is money, and incorporating the most advantageous legal terms in the construction contract can minimize the number and extent of disputes, and ultimately save money.
It is important to remember that the provisions in construction contracts are negotiable. In a common scenario, the contractor and owner informally agree to the scope of a construction project and its cost. When it is time to reduce the deal to writing, the contractor and owner decide to use an AIA contract that appears to be a standard form. The document looks to be on point, and the parties simply need to fill in a few blanks with the cost and scope-specific information. Presuming that the AIA provisions are mutually protective and beneficial, the parties do not think about altering the “standard” terms. They sign the contract, and the project begins.
Months later, the owner and contractor end up disputing delays on the project, entitlement to various payments, and whether certain aspects of the work are defective. At this point, the parties realize that some of the contract’s terms could have been drafted a bit more favorably—but by that time it’s too late. So remember, construction contracts are negotiable, even provisions within “standard” AIA contracts.
Reprinted courtesy of
Phillip L. Sampson Jr. and Richard F. Whiteley, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Sampson may be contacted at phillip.sampson@bracewell.com.
Mr. Whiteley may be contacted at richard.whiteley@bracewell.com.
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California Court of Appeal Makes Short Work Trial Court Order Preventing Party From Supplementing Experts
August 06, 2019 —
Garret Murai - California Construction Law BlogYears ago I recommended to a client that we hire a construction defect expert in a case. The client, a thrifty fellow, responded, “But I thought you were the construction expert. Why do I need to hire another expert? A fair question and one that caught me flat footed.
Whether I’m an “expert” or not can be debated, but I explained to the client that while I was an attorney whose practice focused on construction law, I was not someone who he would want to take the stand and testify about the engineering design and seismic stability of pilings. For that, he needed an expert.
In construction litigation it’s not uncommon for parties and their attorneys to hire “experts.” There are even special rules set forth in the California Code of Civil Procedure for disclosing, supplementing and deposing experts, which basically provide as follows:
1. Demand for Exchange of Expert Information: After the court sets a trial date in a case, any party may demand that each party exchange information concerning the experts they intend to have testify at trial;
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Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Commercial Construction Lenders Rejoice: The Pennsylvania Legislature Provides a Statutory fix for the “Kessler” Decision
July 16, 2014 —
Thomas C. Rogers – White and Williams LLPIn May 2012, the Pennsylvania Superior Court rendered its now infamous “Kessler” decision. The Kessler decision resulted in fundamental changes in the operation of the Pennsylvania Mechanics Lien Act as it applied to construction loans where the visible commencement of work on the project commenced before the recordation of the construction loan’s open-end mortgage.
Essentially, the Kessler decision held that if the visible commence of work on the project began prior to the recording of the open-end mortgage and any loan advances were made other than for what are commonly considered “hard construction” costs, then any unpaid contractors and subcontractors who later filed mechanics’ liens would have their liens take priority over the lien of all of the construction loan advances.
Subsequent to the Kessler decision, both the lending and title insurance communities in Pennsylvania have struggled mightily to structure deals around the problems created by Kessler and to provide lenders with title insurance coverage for construction loans when work commenced before the recordation of the open-end mortgage.
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Thomas C. Rogers, White and Williams LLPMr. Rogers may be contacted at
rogerst@whiteandwilliams.com
More Fun with Indemnity and Construction Contracts!
June 04, 2024 —
Christopher G. Hill - Construction Law MusingsWell, I’m back. It’s been quite a while since my last post due to some busy family times and running my law practice. Hopefully, you will hear from me more often in the future.
Now. . . on with the post:
I have often discussed indemnity provisions here at Construction Law Musings. I’ve posted on a range of things relating to indemnity from when those
sticky clauses are unenforceable to
what to look out for in such a clause when reviewing your construction contract. A recent case out of Fairfax examines another wrinkle in these indemnity clauses. In
Leesburg Pike, Falls Church, LLC v. Paramount Constr. Servs., LLC, the Court examined the language of a fairly typical indemnity clause in a construction contract.
The general facts of the case are as follows. The Plaintiff alleged that it owns the property at 6129 Leesburg Pike, that it entered into a contract with Paramount Construction Services LLC to install clothes washers and dryers in individual units at the property, and that, in the process, Paramount (or one of its subcontractors) negligently severed a water pipe, which caused significant damage to the property. The plaintiff’s property insurance carrier agreed to pay the plaintiff $2,598,918.41. But the actual damages exceeded that payment by $952,020.90. The plaintiff sued Paramount for $952,020, pursuant to an indemnity provision in the contract. Paramount demurred to the Complaint arguing that the indemnity clause did not apply to create liability for Paramount.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
When Every Drop Matters, Cities Turn to Watertech
November 25, 2024 —
James B. Bobotek - Gravel2Gavel Construction & Real Estate Law BlogWe all need water to survive—but access to the liquid lifeline isn’t always a given. With a shifting climate and ever-increasing agricultural and industrial demands on this limited commodity, UNICEF predicts that by 2025, half of the world’s population could be living in areas facing water scarcity. On top of the obvious resource drains, many countries are losing surprising amounts of potable water to leaks. For example, in the United States alone, an estimated 6 billion gallons of treated drinking water seep out of its supply every day due to aging pipelines and undetected leaks.
“Smart” water innovations may offer conservation solutions, though. As part of an overall smart city scheme, where internet of things (IoT) devices work hand-in-hand with AI to improve daily life, many municipalities are giving their water systems a makeover. From new meters to irrigation and pipeline maintenance, we look at some of the key intelligent technologies that endeavor to improve how we harness our water supply.
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James B. Bobotek, PillsburyMr. Bobotek may be contacted at
james.bobotek@pillsburylaw.com
Traub Lieberman Attorneys Lisa M. Rolle, Eric D. Suben, and Justyn Verzillo Secure Dismissal of All Claims in a Premises Liability Case
November 16, 2023 —
Lisa M. Rolle, Eric D. Suben & Justyn Verzillo - Traub LiebermanOn an appeal of an order denying Defendant’s motion to dismiss the complaint in a slip-and-fall action commenced in Kings County Supreme Court, Traub Lieberman attorneys Lisa M. Rolle, Eric D. Suben, and Justyn Verzillo successfully secured dismissal of all claims by the Appellate Division, Second Department, on behalf of Traub Lieberman’s client.
The lawsuit sought to recover damages arising out of injuries the Plaintiff allegedly sustained when she slipped and fell in the shower of a rental property owned by the Defendant, a limited liability company. Plaintiff alleged that the subject shower was defective, and the Defendant negligent, based on the absence of non-slip surfacing and grab bars in the shower. Aside from premises liability (negligence), Plaintiffs asserted eight other causes of action, including gross negligence, breach of warranty of habitability, intentional infliction of emotional distress, negligent infliction of emotional distress, alter-ego liability, loss of consortium, and for declaratory judgment.
The judge in Supreme Court denied Traub Lieberman’s motion to dismiss on behalf of Defendant, citing as the sole reason that the affidavits submitted with the motion were unsigned, and ignoring Traub Lieberman’s arguments pointing out the glaring facial deficiencies of Plaintiff’s pleading and that the signed affidavits were in fact submitted before the return date.
Reprinted courtesy of
Lisa M. Rolle, Traub Lieberman,
Eric D. Suben, Traub Lieberman and
Justyn Verzillo, Traub Lieberman
Ms. Rolle may be contacted at lrolle@tlsslaw.com
Mr. Suben may be contacted at esuben@tlsslaw.com
Mr. Verzillo may be contacted at jverzillo@tlsslaw.com
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Res Judicata Not Apply to Bar Overlapping Damages in Separate Suits Against Contractor and Subcontractor
November 06, 2023 —
David Adelstein - Florida Construction Legal UpdatesCan the doctrine of res judicata bar an owner’s claim against the general contractor after the owner also sued and obtained a satisfied judgment against the subcontractor when there are identical, overlapping damages pursued in separate lawsuits. A recent case says, not really.
In Pickell v. Lennar Homes, LLC, 48 Fla.L.Weekly D2037a (Fla. 6th DCA 2023), a homeowner sued a homebuilder and the homebuilder’s mechanical subcontractor in separate lawsuits. The claims and damages asserted in the separate lawsuits were substantially identical. The homeowner obtained a judgment against the mechanical subcontractor which was satisfied (i.e., paid). The homebuilder tried to use this as a get-out-jail-free card and claimed the homeowner was barred from suing it under the doctrine of res judicata based on overlapping claims and damages.
“To successfully assert a defense of res judicata, a party must prove four “identities”: “(1) identity of the thing sued for; (2) identity of the cause of action; (3) identity of persons and parties to the action; and (4) identity of the quality of the persons for or against whom the claim is made.” Pickell, supra (citation omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com