In a Win for Property Owners California Court Expands and Clarifies Privette Doctrine
March 28, 2018 —
Garret Murai – California Construction Law BlogWe’ve written before about the
Privette doctrine, which
generally holds that a higher-tiered party is not liable for injuries sustained by employees of a lower-tiered party under the peculiar risk doctrine,
here,
here,
here and
here. We’ve also talked about some of the
exceptions to the
Privette doctrine, including the non-delegable duty doctrine and the negligent exercise of retained control doctrine, which provide that a hirer cannot rely on the
Privette doctrine if it owed a non-delegable duty to an employee of an independent contractor or if it retained control over the work of an employee of an independent contractor and negligently exercised that control in a manner that affirmatively contributes to injuries to that employee.
In the next case,
Delgadillo v. Television Center, Inc., Second District Court of Appeals, Case No. B270985 (February 2, 2018), the Court examined whether a property owner could be held liable under the non-delegable duty doctrine and negligent exercise of retained control doctrine for failing to provide structural anchor bolts on its buildings which led to the death of an employee of window washing company.
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Garret Murai, Wendel, Rose, Black, & Dean, LLPMr. Murai may be contacted at
gmurai@wendel.com
Co-Housing Startups Fly in the Face of Old-School NYC Housing Law
December 18, 2022 —
Amelia Pollard & Diego Lasarte - BloombergA room in an eight-bedroom Bed-Stuy brownstone with “charming views.” A five-bedroom “modern Manhattan” home. In a housing market as hot as New York City’s, these units advertised on co-housing companies’ websites sound promising. According to the city’s housing regulations, however, neither is legal.
That hasn’t stopped companies from offering the rooms, as renters clamor for affordable living space. With the average studio apartment in Manhattan going for nearly $3,100 a month, newcomers to the city often find living with multiple roommates to be their best affordable-housing option. It’s a trend that startups have jumped on, and one some experts endorse as a way to quickly scale up affordable housing — even though municipal housing laws aren’t on board yet.
The reality is that in many cities, housing laws that limit the number of unrelated individuals in a dwelling are still in place. New York, for instance, doesn’t allow more than three unrelated people to live in the same unit. To be sure, New Yorkers often break that law, as expensive housing forces people to find roommates through friends or on sites like Craigslist. But multimillion-dollar companies breaking that law is new.
Reprinted courtesy of
Amelia Pollard, Bloomberg and
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Three-Year Delay Not “Prompt Notice,” But Insurer Not “Appreciably Prejudiced” Either, New Jersey Court Holds
November 04, 2019 —
Anthony L. Miscioscia and Timothy A. Carroll - White and Williams LLPIn Harleysville Preferred Insurance Company v. East Coast Painting & Maintenance, LLC, 2019 U.S. Dist. LEXIS 135295 (D.N.J. Aug. 12, 2019) (East Coast Painting), the U.S. District Court for the District of New Jersey held that an insurer, which received notice of a bodily injury accident three years after it happened, was not “appreciably prejudiced” by such late notice, even as the court acknowledged notice three years later did not satisfy the policy’s “prompt notice” condition. The court also held that the policy’s “Operational Exclusion,” which excluded coverage for bodily injury arising out of the operation of “cherry pickers and similar devices,” did not apply because the accident arose out of the use of a “scissor lift,” which is not a device similar to a cherry picker.
East Coast Painting arose out of a Queens, New York bridge-painting project, during which an employee of the insured, East Coast Painting and Maintenance LLC was injured while “standing on a scissor lift mounted to the back of a truck,” owned and operated by East Coast. The employee sued various project-related entities which, in turn, joined East Coast as a defendant. East Coast sought coverage under its business auto policy, and the insurer agreed to defend the insured under a reservation of rights. The insurer subsequently sought a declaration that it did not owe coverage based on, among other things, the policy’s “Operational Exclusion,” and the insured’s failure to satisfy the policy’s “prompt notice” condition. The insurer moved for summary judgment on both of those bases, but the court in East Coast Painting denied the motion.
As for the insurer’s “prompt notice” defense, the court in East Coast Painting concluded that, the insured’s notice to the insurer was not prompt because it did not receive notice until three years after the accident. But, the court added, the inquiry does not end there. “[T]his Court must determine whether [the insurer] was appreciably prejudiced by that delay.” Reviewing the facts, the court held that the insurer was not “appreciably prejudiced,” even though during the three-year delay the lift truck was “not properly maintained” or “in the same condition it was at the time of the Accident.” The court observed that the insurer had “ample other evidence with which it can defend itself,” such as experts who inspected the lift truck and opined about the cause of the accident.” [Emphasis added.] Further, “there are multiple contemporaneous accident reports,” “a list of the East Coast employees on site at the time,” “photographs of the lift truck and its location when [the employee] was injured,” and “depositions of [the employee] and others regarding the events at issue.” Thus, the court held, the insurer was not prejudiced and summary judgment was inappropriate.
Reprinted courtesy of
Anthony L. Miscioscia, White and Williams LLP and
Timothy A. Carroll, White and Williams LLP
Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com
Mr. Carroll may be contacted at carrollt@whiteandwilliams.com
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Subcontractor’s Miller Act Payment Bond Claim
September 07, 2017 —
David Adelstein - Florida Construction Legal UpdatesSince I wrote my ebook on the application of federal Miller Act payment bonds, I have not discussed a case applying the Miller Act. Until now!
Below is a case that reinforces two important points applicable to Miller Act payment bond claims. First, the case reinforces what a claimant needs to prove to establish a Miller Act payment bond claim. Very important. Second, the case reinforces that a subcontractor is going to be governed by its subcontract. This means that those provisions regarding payment and scope of work are very important. Not that you did not already know this, but ignoring contractual requirements will not fly.
In U.S.A. f/u/b/o Netplanner Systems, Inc. v. GSC Construction, Inc., 2017 WL 3594261 (E.D.N.C. 2017), a prime contractor hired a subcontractor to run cabling and wiring at Fort Bragg. The subcontractor claimed it was owed a balance and filed a lawsuit against the general contractor the Miller Act payment bond.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com
No Coverage for Foundation Collapse
November 08, 2017 —
Tred R. Eyerly - Insurance Law HawaiiCoverage for the collapse of a foundation was not covered under the contractor's builder's risk policy. Taja Investments LLC v. Peerless Ins. Co., 2017 U.S. App. LEXIS 19855 (4th Cir. Oct. 11, 2017).
Taja Construction LLC was renovating a row house owned by Taja Investments LLC when the east wall of the property collapsed. Taja submitted a claim for repair costs in the amount of $400,000. Peerless denied coverage because the collapse was caused by Taja's failure to support the building's foundation properly while excavating the basement. The policy excluded coverage for defects in construction or workmanship. The claim was also denied under the earth movement exclusion.
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Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Florida Condo Collapse Victims Reach $1 Billion Settlement
May 23, 2022 —
Erik Larson - BloombergVictims of the South Florida condominium collapse that killed 98 people last year reached settlements totaling almost $1 billion with defendants including the developer of an adjacent luxury tower, engineers and a law firm for the condo association.
The massive deal was cobbled together through multiple agreements before a state court hearing Wednesday in Miami, according to Harley S. Tropin, one of the lead plaintiffs’ lawyers who had sued on behalf of survivors and victims’ families. He said he disclosed the settlements in court.
“We are pleased to have resolved this case with the defendants to get what we think is a very fair recovery to help end the litigation and allow the victims to attain some means of attempting to move forward from this horrific tragedy,” Tropin said in an emailed statement.
The 12-story Champlain Towers South condominium building in Surfside, Florida, collapsed June 24, triggering multiple lawsuits and prompting state and federal probes. A focus was the development of the Renzo Piano-designed Eighty Seven Park high-rise next door to the Champlain Towers.
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Erik Larson, Bloomberg
COVID-19 Pandemic Preference Amendments to Bankruptcy Code Benefiting Vendors, Customers, Commercial Landlords and Tenants
May 03, 2021 —
Andrew Arthur & Steven Ostrow - White and Williams LLPOver the last three months, Congress has passed major pieces of legislation primarily in response to the COVID-19 pandemic, including the Consolidated Appropriations Act of 2021 (CAA), which was signed into law on December 27, 2020. In addition to funding the federal government and a second round of pandemic relief, the CAA contains several amendments to the Bankruptcy Code. One of the amendments provides preference protection to commercial landlords and suppliers who receive overdue payments from their tenants or customers under agreements made on or after March 13, 2020 to postpone the payment of rent or supplier charges.
The preference amendments encourage these creditors to afford their customers and tenants payment deferment arrangements without the risk that the companies will clawback the payments as preferences if they later file for bankruptcy protection. The amendments should facilitate workouts of distribution and leasing agreements to help distressed businesses recover and repay arrearages as COVID-19 related governmental restrictions are lifted this year.
Reprinted courtesy of
Andrew Arthur, White and Williams LLP and
Steven Ostrow, White and Williams LLP
Mr. Ostrow may be contacted at ostrows@whiteandwilliams.com
Mr. Arthur may be contacted at arthura@whiteandwilliams.com
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Subrogation 101 (and Why Should I Care?)
July 16, 2023 —
Clark Thiel & Alexis N. Wansac - Gravel2Gavel Construction & Real Estate Law BlogWhat is subrogation? Why am I being asked to waive it? Should I care? To answer that last question, let’s take a quick run at the first two.
What Is Subrogation?
“Subrogation” refers to the act of one person or party standing in the place of another person or party. It is a legal right held by most insurance carriers to pursue a third party that caused an insurance loss in order to recover the amount the insurance carrier paid the insured to cover the loss. This occurs when (i) the insurance carrier makes a payment on behalf of its insured as the result of a covered accident or injury, and then (ii) the insurer then seeks repayment from the at-fault party.
Reprinted courtesy of
Clark Thiel, Pillsbury and
Alexis N. Wansac, Pillsbury
Mr. Thiel may be contacted at clark.thiel@pillsburylaw.com
Ms. Wansac may be contacted at alexis.wansac@pillsburylaw.com
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