Fires, Hurricanes, Dangerous Heat: The US Is Reeling From a String of Disasters
August 22, 2023 —
Will Wade & Brian K Sullivan - BloombergFrom deadly wildfires to floods, the US is reeling from several natural disasters in quick succession — and more are likely on the way.
Torrential rains from the remnants of Hurricane Hilary are inundating parts of California. Two tropical storms, one post-tropical cyclone and two potential storms are lined up in the Atlantic Ocean. Almost 100 wildfires are burning across 15 states as officials in Hawaii investigate the deadliest US blaze in more than a century. And record heat will test Midwest power grids this week.
All of this, all at once, is a lot — and it’s not just bad luck. Climate change has triggered heat waves around the world, leading to ideal fire conditions in forests across the Northwest and Canada. It’s also boosting Atlantic water temperatures, which can intensify storms as the peak of hurricane season approaches. And unusually warm Pacific Ocean waters fueled Hilary, which in turn will contribute to scorching heat in the Midwest.
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Bloomberg
Hawaii Supreme Court Tackles "Other Insurance" Issues
February 25, 2014 —
Tred Eyerly – Insurance Law HawaiiResponding to four certified questions from the Ninth Circuit, the Hawaii Supreme Court addressed various issues raised by competing "other insurance" provisions in two CGL policies. Nautilus Ins. Co. v. Lexington Ins. Co., 2014 Haw. LEXIS 59 (Haw. Feb. 13, 2014).
Coverage for a development on Maui was at issue. The developer, VP & PK (ML) LLC, was insured by Lexington. The other insurance provision in Lexington's policy provided it was excess over "any other primary insurance available to you covering liability for damages arising out of the premises . . . for which you have been added as an additional insured."
Kila Kila Construction was one of VP & PK's subcontractors. Kika Kila was not an additional insured under Lexington's policy. Kila Kila had its own CGL policy with Nautilus. The Nautilus other insurance clause stated the insurance was excess over "any other primary insurance available to you covering liability arising out of the premises or operations for which you ahve been added as an additional insured." An endorsement added VP & PK as an additional insured, but only for liability arising out of Kila Kila's negligence.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Landmark Contractor Licensing Case Limits Disgorgement Remedy in California
November 09, 2020 —
Candace Matson - Construction & Infrastructure Law BlogContractors performing work in California are required to be licensed by the California State License Board (“CSLB”). Cal. Bus. & Prof. Code §7065. Except for sole proprietors, contractors are typically licensed through “qualifiers,” i.e., officers or employees who take a licensing exam and meet other requirements to become licensed on behalf of the contractor’s company. Contractors who perform work in California without being properly licensed are subject to a world of hurt, including civil and criminal penalties (see, e.g., Cal. Bus. & Prof. Code §§ 7028, 7028.6, 7028.7, 7117, and Cal. Labor Code §§ 1020-1022), and the inability to maintain a lawsuit to recover compensation for their work. Cal. Bus & Prof. Code § 7031(a); Hydra Tech Systems Ltd. v. Oasis Water Park, 52 Cal.3rd 988 (1991).
But arguably the worst ramification of not being property licensed is that established in Business & Professions Code Section 7031(b), which provides that any person who uses the services of an unlicensed contractor may bring an action for the return of all compensation paid for the performance of the work, commonly known as “disgorgement.” This remedy is particularly harsh (often described as “draconian”) because it makes no allowance for the fact that an unlicensed contractor will likely have already paid out the bulk of its compensation to its subcontractors, suppliers and vendors, but nevertheless can be ordered to disgorge all compensation.
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Candace Matson, Sheppard MullinMs. Matson may be contacted at
cmatson@sheppardmullin.com
Boys (and Girls) of Summer: New Residential Solar Energy System Disclosures Take Effect January 1, 2019
October 02, 2018 —
Garret Murai - California Construction Law BlogAs we come to the end of Summer, the California Contractors State License Board advises licensees that it has finalized its Solar Energy System Disclosure Document. The Solar Energy System Disclosure Document, required under Business and Professions Code Section 7169 as amended by Assembly Bill 1070 in 2017, requires that the disclosure language of the document be:
- Included in all contracts providing for the installation of a “solar energy system” on a residential building;
- Included on the front page or cover page of the contract;
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Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
10 Safety Tips for General Contractors
October 09, 2018 —
Eric Weisbrot – JW Surety BondsThe construction industry continues to grow each year, paving the way for general contractors to make a profitable, sustainable living when the job is done right. However, to do so effectively, safety standards need to be met with consistency and focus on each worksite. General
contractors who are licensed and bonded must take proactive steps to avoid potentially fatal injuries among their subcontractors and employees, even though this may be easier said than done. To create and maintain a safe worksite each and every time, general contractors should consider how to implement the following best practices and safety tips on the job.
1 – Know the Risks
The most crucial step toward maintaining a safe construction site is to first be aware of the risks involved. Each year, thousands of
construction workers experience injuries on the job, and some ultimately lose their life because of safety missteps at work. As a general contractor, it is your responsibility to know that construction risks run rampant given the nature of the work. Being tuned into the potential for falls, slips, and other common safety-related incidents is a necessary part of operating a safe worksite for you and your employees.
2 – Require Protective Gear
An often overlooked safety precaution on construction sites is the use of up-to-date and well-maintained protective gear. For many subcontractors and employees, it is easy to skip this necessary step in safeguarding themselves from potential safety issues. However, general contractors can take steps to make protective gear a requirement on the job. This may include mandating hardhats and steel-toed shoes, gloves, and eyewear when appropriate. All visitors and workers on a construction site should follow protective gear instructions to avoid unnecessary safety risks.
3 – Educate on Ladder Safety
According to the Bureau of Labor Statistics, ladder injuries account for a significant number of construction worker incidents each year, making up more than 200,000 accidents on average. Ladders have continuously ranked high on OSHA’s list of violations at construction sites because the prevalence of injuries is so high. General contractors can help thwart ladder-related injuries among workers by promoting ladder safety training, including reminders about the right ladder to use for each task. Workers should also be well aware of the importance of inspection before use, and they should always follow the three points of contact rule when going up or down a ladder.
4 – Recognize Equipment Pitfalls
Many construction workers experience injuries relating to equipment used on the job. This could be tied to getting on or off equipment, or loading and unloading materials from machinery. In any case, general contractors can encourage simple tactics to improve equipment safety measures. Paying close attention to secure footing while getting on or off a machine, having more than one person assist with loading and unloading, and ensuring everyone feels comfortable asking for help with these tasks reduces safety risks.
5 – Document Potential Hazards
A general contractor’s main responsibility is to manage the construction site efficiently from start to finish. Part of this duty is recognizing the possible issues on a worksite that may lead to accidents or injuries if not addressed at the beginning of a project. It is necessary to take the time to identify safety risks such as unstable working surfaces, dangerous trenches, or weather-related concerns that may impact the safety of subcontractors, suppliers, or other site visitors. Potential hazards should be documented and shared with site workers, and they should be updated as the project progresses.
6 – Maintain Equipment and Tools
Poorly maintained equipment and tools also cause issues on construction sites. The Infrastructure Health and Safety Association suggests that general contractors
remind workers to inspect tools, machines, handheld equipment, and vehicles before each use to ensure they are properly maintained. Additionally, understanding the maintenance standards for certain tools or equipment and following those guidelines is crucial to reducing injury on the job.
7 – Minimize Crowds
Crowded work areas can be a serious safety issue for general contractors, subcontractors, and vendors and suppliers on site. It is common for crowds to gather during the use of heavy equipment or when a significant task is being completed. However, general contractors should discourage crowd-forming for spectating purposes. This can be done by limiting the number of people allowed to be in an area when certain activities are taking place, and enforcing these rules at every possible opportunity.
8 – Hire Licensed Subcontractors
General contractors may have full- or part-time employees as part of their business model, or there may be a heavy presence of subcontractors not directly tied to the main business. In either case, it is essential to have faith in the capabilities of workers, including their willingness and commitment to follow safety standards. General contractors can help ensure each worker is more likely to take safety seriously when they hire licensed contractors who follow through with
licensing requirements as mandated by the state or city.
9 – Focus on Training
Even after vetting subcontractors and employees based on their licensing status, general contractors also need to ensure training and education are a priority. Several online and in-person courses focus on construction safety training which workers should be encouraged to attend. Safety
education programs from OSHA and other reputable sources are crucial to decreasing accidents on the job.
10 – Be Present
Finally, general contractors can only have an impact on the safety of the job site when they are purposefully present. It is common for some GCs to stop by a project when they are needed or to check on progress periodically. However, new safety hazards, lacking worker training, and other risks are not easily fixed when the general contractor is not consistently on site. Reducing the potential for falls, slips, trips, and fatalities on the job requires communication with workers, and that takes place most effectively when general contractors are in person.
Eric Weisbrot is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry under several different roles within the company, he is also a contributing author to the surety bond blog.
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Best U.S. Home Sales Since 2007 Show Momentum in Housing Market
August 26, 2015 —
Sho Chandra – BloombergAmerica’s housing market has been heating up this summer.
Purchases of previously owned homes unexpectedly rose in July for a third straight month to reach the highest level since February 2007, figures from the National Association of Realtors showed Thursday. The gain was driven by stronger sales of single-family houses even as the share of first-time buyers shrank.
A limited number of available properties is keeping prices elevated, giving homeowners the financial flexibility to trade up as their housing equity improves. The data and a recent report showing the strongest rate of residential construction since 2007 are consistent with the Federal Reserve’s view that the industry is making progress.
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Sho Chandra, Bloomberg
Implied Warranties for Infrastructure in Florida Construction Defect Claims
December 30, 2013 —
CDJ STAFFThe homeowners in the Lakeview development built by Maronda Homes in Orange County, Florida started having water and drainage problems shortly after the homeowners association took control of the community. They fought their case all the way to the Florida Supreme Court, where the question was whether implied warranties of fitness covered the community’s infrastructure.
William Martin III, writing on the DestinLog, notes that previous Florida Supreme Court decisions went the other way. In a case involving a seawall, the court held that “unless the seawall was part of or in connection with the construction of a home or in support of a residence.” In the Lakeview case, they determined that the community’s infrastructure was just that: “essential to the habitability of the residence.” The court specifically included roads for ingress and egress, drainage systems to divert flooding, retention ponds to correct water flow damage, and underground pipes which are necessary for living accommodations.”
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CA Homeowners Challenging Alternate Pre-Litigation Procedures
April 15, 2014 —
Beverley BevenFlorez-CDJ STAFFGarret Murai on his California Construction Law blog discussed how some homeowners have challenged homebuilders who use alternative pre-litigation procedures instead of the rules of California’s Right to Repair Act (SB 800).
“The Right to Repair Act, which was intended to help curb the then rising tide of residential construction defect litigation, provides mandatory pre-litigation procedures which must be followed in construction defect cases involving new residential construction,” Murai explained. “One of the major exceptions to the statutory pre-litigation procedures under SB 800, however, is that a homebuilder can opt to use its own alternative pre-litigation procedures if disclosed to a homebuyer.”
Murai used The McCaffrey Group, Inc. v. Superior Court case to demonstrate that homeowners can challenge the builder’s use of alternative pre-litigation procedures, and win if they can prove that the alternate procedures are “unconscionable.”
“For homebuilders, the take away is that, sure you can adopt your own alternative pre-litigation procedures under the Right to Repair,” Murai stated, “but if you do just know that they may be challenged by homeowners who may contend that they are unconscionable, which kinda defeats the whole idea behind SB 800 which was intended to reduce the amount of litigation the first place.”
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