Insurer Not Entitled to Summary Judgment on Construction Defect, Bad Faith Claims
October 07, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court denied the insurer's motion for summary judgment seeking to establish there was no coverage for construction defect claims and for bad faith. Country Mut. Ins. Co. v. AAA Constr. LLC, 2019 U.S. Dist. LEXIS 115935 (W.D. Okla. July 12, 2019).
Jeffrey and Tammy Shaver entered two contracts with AAA Construction for the construction of a garage and of a barn on their property. After construction was completed, the Shavers sued AAA Construction for building the garage over two high-pressure gas pipelines and the utility easements associated with them. They alleged AAA Construction was negligent for constructing over a working utility line. AAA Construction's insurer, Country Mutual Insurance Company (CMIC) denied coverage because the alleged faulty workmanship of AAA Construction did not constitute an "occurrence" under the policy.
CMIC sued AAA Construction for a declaratory judgment that it had no duty to defend or indemnify. CMIC moved for summary judgment.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Are You Taking Full Advantage of Available Reimbursements for Assisting Injured Workers?
January 08, 2019 —
Jonathan Schirmer - Ahlers Cressman & Sleight PLLCWorkplace injuries are an increasingly expensive cost of doing business. While every business does their best to avoid these injuries, even the most prepared employers must deal with them on occasion. The costs associated with these injuries—increased worker’s compensation premiums, decreased productivity, hiring temporary employees, and the loss of experienced workers—can be mitigated by shrewd employers taking full advantage of available assistance programs.
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Jonathan Schirmer, Ahlers Cressman & Sleight PLLCMr. Schirmer may be contacted at
jonathan.schirmer@acslawyers.com
Changing Course Midstream Did Not Work in River Dredging Project
December 10, 2015 —
Craig Martin – Construction Contractor AdvisorA contractor learned a $12M lesson when it tried to change course on a Corps of Engineer river dredging project. The case also illustrates the importance of documenting problems on a project and providing notice of those problems to the owner.
In Weston/Bean Joint Venture v U.S., Weston/Bean was awarded a Corps of Engineers project to provide maintenance dredging on the Miami River to a depth of 15 feet. The contract noted that the contractor may experience sediment, debris and rock, including soft to moderately hard limestone.
The contractor encountered rocks early on in the project, but consistently submitted reports to the Corps of Engineers that nothing was experienced on the project that would lead to a change order or claim. And, for the first year of operations, the contractor made no claim for differing site conditions. Instead, the contractor terminated the subcontractor for not being able to process the rock uncovered during the dredging process.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Avoiding 'E-trouble' in Construction Litigation
September 10, 2018 —
Judah Lifschitz - Construction ExecutiveDuring the 2016 presidential election, the FBI subpoenaed Hillary Clinton's emails after she used a private email server during her time as Secretary of State. Separately, the more recent investigation into Donald Trump’s campaign policy adviser, George Papadopoulos, resulted in scrutiny over both his email and social media.
As shown the above examples, there are damaging effects of electronically stored information in politics, but how does it impact the construction industry?
If not used carefully and properly, emails will serve as “truth serum” in court. Attorneys can simply read an email to know employees’ thoughts or actions, meaning an impulsive email or social media post will most likely come back to haunt the company. Requests for ESI are inevitable in litigation today and the production of inappropriate emails and other ESI open the door for an opposing attorney to argue that a company fosters a culture of uncouth, unprofessional and unfocused project management.
Reprinted courtesy of
Judah Lifschitz, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Lifschitz may be contacted at
lifschitz@slslaw.com
Property Damage, Occurrences, Delays, Offsets and Fees. California Decision is a Smorgasbord of Construction Insurance Issues
November 21, 2017 —
Garret Murai - California Construction Law BlogOriginally published by CDJ on November 15, 2017
I read once that 97 percent of cases never go to trial. However, there are still the ones that do. And, then, there are the ones that do both. The following case, Global Modular, Inc. v. Kadena Pacific, Inc., California Court of Appeals for the Fourth District, Case No. E063551 (September 8, 2017), highlights some of the issues that can arise when portions of cases settle and other portions go to trial, the recovery of delay damages on a construction project through insurance, and the recovery of attorneys’ fees.
Global Modular, Inc. v. Kadena Pacific, Inc.
The U.S. Department of Veterans Affairs contracted with general contractor Kadena Pacific, Inc. (Kadena) to oversee construction of its Center for Blind Rehabilitation in Menlo Park, California. Kadena, in turn, contracted with subcontractor Global Modular, Inc. (Global) to construct, deliver and install 53 modular units totaling more than 37,000 square feet for a contract price of approximately $3.5 million.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
MBS’s $500 Billion Desert Dream Just Keeps Getting Weirder
August 29, 2022 —
Vivian Nereim - BloombergOne day last September, a curious email arrived in Chris Hables Gray’s inbox. An author and self-described anarchist, feminist, and revolutionary, Gray fits right into Santa Cruz, Calif., where he lives. He’s written extensively about genetic engineering and the inevitable rise of cyborgs, attending protests in between for causes such as Black Lives Matter.
While Gray had taken some consulting gigs over the years, he’d never received an offer like this one. The first shock was the money: significantly more than he’d earned from all but one of his books. The second was the task: researching the aesthetics of seminal works of science fiction such as Blade Runner. The biggest surprise, however, was the ultimate client: Mohammed bin Salman, the 36-year-old crown prince of Saudi Arabia.
MBS, as he’s known abroad, was in the early stages of one of the largest and most difficult construction projects in history, which involves turning an expanse of desert the size of Belgium into a high-tech city-region called Neom. Starting with a budget of $500 billion, MBS bills Neom as a showpiece that will transform Saudi Arabia’s economy and serve as a testbed for technologies that could revolutionize daily life. And as Gray’s proposed assignment suggested, the crown prince’s vision bears little resemblance to the cities of today. Intrigued, Gray took the job. “If I can be honest with how I see the world, I’ll pretty much put my work out to anyone,” he says.
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Vivian Nereim, Bloomberg
Paris ‘Locks of Love’ Overload Bridges, Threatening Structures
June 11, 2014 —
Helene Fouquet and Mark Deen - BloombergLe Pont des Arts, the landmark Paris footbridge that links the Louvre museum to the Saint Germain neighborhood, is buckling under the weight of “love locks.”
The Paris mayor’s office closed the bridge last night to replace a grate after thousands of locks weighed down its structure. Its railings are crumbling, threatening pedestrians on the bridge and cruise boats that ply under it on the Seine River. The bridge was reopened today after it was checked for safety, with two fire-department boats standing by to avert any potential incident.
Although the origins of the trend are unclear, it has become a tradition for lovers to attach a lock to the railing on the sides of bridges in Paris to seal their love. Each lock weighs about 54 to 90 grams. The mayor of Paris’s 6th arrondissement, where the bridge is located, says the locks on the Pont des Arts weigh as much 10 tons, or 22,000 pounds. The grate that collapsed yesterday weighed about 200 kilos and the bridge has about 50 of them.
Ms. Fouquet may be contacted at hfouquet1@bloomberg.net; Mr. Deen may be contacted at markdeen@bloomberg.net
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Helene Fouquet and Mark Deen, Bloomberg
Build Back Better Includes Historic Expansion of the Low-Income Housing Tax Credit Program
December 20, 2021 —
James M. Grosser & David W. Wright - Gravel2Gavel Construction & Real Estate Law BlogOn November 19, 2021, the U.S. House of Representatives passed the Build Back Better Act (H.R. 5376), a bill that represents a large portion of the Biden-Harris Administration’s agenda. Among other spending and tax measures, the bill includes an unprecedented expansion of the Low-Income Housing Tax Credit (LIHTC) program. Four proposals are headlining this expansion:
- Increasing the 9% LIHTC allocation cap by 10% plus inflation annually from 2022 to 2024. With this increase, the 2024 LIHTC allocation cap will rise to $3.97 per capita and a small state minimum of around $4.58 million, constituting a 41 percent increase in allocable LIHTC over current levels. The allocation cap would then decrease to $2.65 per capita and a small state minimum of $3.12 million in 2025 and would thereafter be indexed to inflation from the 2025 baseline.
- Reducing the 50% threshold for 4% tax-exempt bond-financed projects to 25% for five years, beginning in 2022.
Reprinted courtesy of
James M. Grosser, Pillsbury and
David W. Wright, Pillsbury
Mr. Grosser may be contacted at james.grosser@pillsburylaw.com
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