Illinois Federal Court Applies Insurer-Friendly “Mutual Exclusive Theories” Test To Independent Counsel Analysis
November 09, 2020 —
Jeremy S. Macklin - Traub Lieberman Insurance Law BlogInsureds often request independent counsel when insurers agree to provide a defense subject to a reservation of rights, pursuant to which an insurer takes the position that certain damages may not be indemnifiable. Requests for independent counsel are often rooted in fear that a defense attorney who has a relationship with the insurer may be incentivized to defend the insured in a way that maximizes the potential for the insurer to succeed on its coverage defenses. As explained by the Illinois Supreme Court in Maryland Cas. Co. v. Peppers, 355 N.E.2d 24 (Ill. 1976), when a conflict of interest arises between an insurer and its insured, the attorney appointed by the insurer is faced with serious ethical questions and the insured is entitled to its own attorney.
Illinois courts generally follow the rule that an insured is entitled to independent counsel upon a showing of an actual conflict. In Builders Concrete Servs., LLC v. Westfield Nat’l Ins. Co., No. 19 C 7792, 2020 WL 5518474 (N.D. Ill. Sept. 14, 2020), the U.S. District Court for the Northern District of Illinois recently addressed a dispute between an insurer and its insured about independent counsel.
Westfield insured Builders Concrete Services (BCS). Focus Construction hired BCS as a subcontractor to perform concrete work on a new apartment building. BCS’ work included pouring concrete for structural columns, one of which buckled and failed. BCS sued Focus Construction for withholding payment, and Focus Construction counter-sued for breach of contract and negligence relating to BCS’ alleged faulty work that caused the column to fall. Focus Construction’s counterclaim alleged that the column failure damaged other parts of the building on which Builders did not perform work.
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Jeremy S. Macklin, Traub LiebermanMr. Macklin may be contacted at
jmacklin@tlsslaw.com
New York Philharmonic Will Open Geffen Hall Two Years Ahead of Schedule
April 11, 2022 —
James Tarmy - BloombergAfter decades of setbacks, the New York Philharmonic will finally perform in a gut-renovated concert hall in October.
“The key is—two years early—on budget and on schedule,” says a triumphant Deborah Borda, the president and chief executive officer of the New York Philharmonic, standing under a scaffold in what will be the completely revamped concert hall.
A happy ending was by no means guaranteed.
The venue, set at New York’s Lincoln Center, had problems almost as soon as its doors opened in 1962. Concertgoers and performers complained that the sound was muddy and deadening.
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James Tarmy, Bloomberg
Apartments pushed up US homebuilding in September
October 22, 2014 —
Josh Boak – Bloomberg BusinessweekWASHINGTON (AP) — Construction firms broke ground on more apartment complexes in September, pushing up the pace of U.S. homebuilding.
Housing starts rose 6.3 percent to a seasonally adjusted annual rate of 1.017 million homes, the Commerce Department said Friday. Almost all of the gains came from apartment construction — a volatile category — which increased 18.5 percent after plunging in August.
The sluggish recovery and meager wage growth has left more Americans renting instead of owning homes. Apartment construction has surged 30.3 percent over the past 12 months.
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Josh Boak, Bloomberg Businessweek
Use Your Instincts when Negotiating a Construction Contract
August 07, 2018 —
Christopher G. Hill - Construction Law MusingsI have often discussed the more “mechanical” aspects of contract negotiation and drafting here at Construction Law Musings. However, there is another, less objective (possibly) and more “feel” oriented aspect to construction contracting that can have as big an impact on your construction project. What am I talking about? Your instinct as a construction professional when looking the other party in the eye and getting a feel for the company or individual with whom you are contracting.
Why is this so important? Firstly, and this is a truism, no matter how well drafted your construction contract is (and it should be well drafted and reviewed by an experienced construction attorney), if the other party wishes to “play games” and not honor the terms of that contract, you could still very well end up in litigation with the attendant frustration and expense. Having a great looking, well thought out and at least reasonably “fair” construction contract may make the litigation process somewhat less painful but it does not completely avoid the risk of litigation. If the other party or parties to the contract decide not to pay you or perform as they promised, you are left to enforce whatever contract you have in place.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Competent, Substantial Evidence Carries Day in Bench Trial
February 26, 2024 —
David Adelstein - Florida Construction Legal UpdatesA number of construction disputes, if tried, are tried through a bench trial meaning the judge is serving in the role of the jury in the construction trial. In a bench trial, two points are important. First, “the factual findings of the judge are entitled to the weight of a jury verdict.” Q.G.S. Development, Inc. v. National Lining Systems, Inc., 2024 WL 357984 (Fla. 3d DCA 2024) (internal quotation and citation omitted). Second, “[t]he appellate court is only authorized to reverse if such findings are not supported by competent, substantial evidence.” Id. These two points need to be appreciated when participating in any construction dispute that will be resolved through a bench trial.
A recent construction dispute highlights these two points. In Q.G.S. Development, a contractor was hired to refurbish a golf course which included constructing a lake. The contractor was going to construct the lake, prepare the subgrade, perform dewatering, and it hired a subcontractor to install a reservoir liner at the bottom of the lake.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Ex-Detroit Demolition Official Sentenced for Taking Bribes
November 24, 2019 —
Jeff Yoders - Engineering News-RecordAradondo Haskins, a former Detroit demolition projects official, has been sentenced to a year in federal prison for accepting $26,500 in bribes from contractors and rigging bids to tear down homes in a federally funded demolition program. U.S. District Judge Victoria Roberts handed down the sentence on Sept. 23 and ordered Haskins to pay a $5,000 fine and forfeit bribes he took while employed by demolition contractor Adamo Group and by the city. The charges against Haskins were unsealed on April 8, shortly before he pled guilty.
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Jeff Yoders, Engineering News-Record
Mr. Yoders may be contacted at yodersj@enr.com
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New Iowa Law Revises Construction Defects Statute of Repose
September 07, 2017 —
David Suggs – Bert L. Howe & Associates, Inc.Starting July 1st of this year, Iowa homeowners now have only ten years to file a claim against the builder instead of the fifteen years that was allowed previously, reported WZAD 8 News. Furthermore, commercial property owners will only have eight years to file their suits.
Scott Webster, Vice President of the Quad Cities Builders and Re-modelers Association, told WZAD 8 News that insurance companies played a part in the change: “[I]nsurance companies were saying, Iowa is at such a long period of time for any kind of defect, that may be hard to prove whether the builder even did it or the homeowner modified the house.”
However, Tom Miller, Iowa Attorney General, disagreed with the change in policy: “We think that it’s unfair to consumers, the defects in buildings and commercial buildings too, can show up very easily between eight and fifteen years out.”
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Appetite for Deconstruction
July 02, 2024 —
Patrick Sisson - BloombergThe death of 206 College Avenue was slow and painstaking. Over several days in January 2022, dozens of bundled-up volunteers swarmed over the three-story property, a tired wooden boarding house built in the early 1900s in Ithaca, New York. Long used as rental apartments for Cornell University students, the 13-bedroom house was set to be demolished, along with several neighboring structures of the same vintage, to make room for a new multi-use complex. But while those buildings were quickly reduced to rubble by trackhoes, the house at 206 was deconstructed, piece by piece, so that its elements could be used again.
The Catherine Commons Deconstruction Project, an effort by Cornell’s Circular Construction Lab, was a large-scale pilot designed to show how building waste can be kept out of landfills. As volunteers pulled nails out of fir, oak, and walnut boards and hauled lumber off to be sorted and redistributed, a team of eight workers with heavy machinery began meticulously sawing, slicing and removing 8-by-18-foot panels of the old building. These were trucked off to a warehouse, where they’d be taken apart and recycled.
The labor that went into this process was substantially more than a typical demolition. But it avoided the societal penalties left behind at nearly every building and demo site across the US. The sheer volume of waste generated by knocking down, adding to or renovating buildings in the US is stunning: 600 million tons of construction demolition waste annually, according to the most recent EPA estimate from 2018. Roughly 75% gets ground up into aggregate and fill, and only a small share is recycled and reused, necessitating production of new material for the next project. For scale, municipal solid waste only accounts for 300 million tons every year.
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Patrick Sisson, Bloomberg