California Fears El Nino's Dark Side Will Bring More Trouble
September 17, 2015 —
Brian K. Sullivan – BloombergA group of drought experts gathered in California this week, and it wasn’t long before the conversation turned to El Nino.
They weren’t touting it as the savior that will end the state’s four-year drought. Instead, they were looking at a darker scenario where the weather-changing phenomenon adds another year of dryness in the north while ravaging the south with floods.
“What do you say when the governor asks you what to do? ‘You prepare for flood and drought because there is a possibility you can get both,”’ said Mike Anderson, state climatologist.
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Brian K. Sullivan, Bloomberg
Look to West Africa for the Future of Green Architecture
May 16, 2022 —
Kriston Capps - BloombergIn 2014, a crowd of demonstrators stormed Burkina Faso’s National Assembly building, setting it ablaze and ending the nearly 30-year rule of President Blaise Compaoré.
A year later, Burkenabè architect Diébédo Francis Kéré was asked to imagine a new parliamentary building — one that would reflect a more democratic future for the West African nation. Kéré conceived a six-story stepped pyramid that slopes up gently from the ground, inviting citizens to gather, climb and take in views of the capital city, Ouagadougou. The ruins of the former parliament building next door would be transformed into a rainwater-collecting memorial park.
The project remains a ways off: Burkina Faso continues to struggle with political unrest, including a coup d’état in January 2022. But Kéré’s fast-growing prominence may improve the odds that his vision will eventually materialize. In March, he became the first African architect to win the Pritzker Architecture Prize, the design field’s top honor.
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Kriston Capps, Bloomberg
Insured's Complaint for Breach of Contract and Bad Faith Adequately Pleads Consequential Damages
March 27, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe appellate court overturned the trial court's dismissal of the insured's complaint seeking consequential damages. D.K. Prop. Inc. v. Nat'l Union Fire Ins. Co. of Pittsburgh v, Pa., 2019 N.Y. App. Div. LEXIS 329 (N.Y. App. Div. Jan. 17, 2019).
The insured's building began to shift and exhibit structural damage, including cracks, after construction began in an adjoining building. The insured submitted a claim under its commercial insurance policy. The insurer did not pay the claim, nor did it disclaim coverage.
The insured sued, alleging breach of contract for failure to pay covered losses under the policy. The second cause of action was for breach of the implied covenant of good faith and fair dealing. The complaint also requested consequential damages in connection with each cause of action. The trial court granted the insurer's motion to dismiss the claim for consequential damages.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Customer’s Agreement to Self-Insure and Release for Water Damage Effectively Precludes Liability of Storage Container Company
December 16, 2019 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Kanovsky v. At Your Door Self Storage (No. B297338; filed 11/25/19), a California appeals court held that a waiver of liability and agreement to self-insure in a storage container contract barred coverage for water damage to goods stored in the container.
In Kanovsky, plaintiffs contracted for portable storage containers when moving. They loaded their washing machine into one of the containers without checking whether it was fully drained. They locked the containers and reopened them four years later to discover water damage to the contents. They sued the storage company, alleging causes of action for breach of contract; tortious breach of covenant; negligence; and violation of the Consumer Legal Remedies Act, Civil Code section 1750. The storage company’s insurer intervened and moved for summary judgment, which was granted.
The appeals court affirmed. The storage company’s contract contained a release of liability stating that personal property was stored “at the customer’s sole risk” and the owners “shall not be liable for any damage or loss,” including water damage. Further, the contract stated that the containers were not waterproof, and again that the storage company was not liable for water damage. The contract attached an addendum further stating that the owner was “a landlord renting space, is not a warehouseman, and does not take custody of my property.” The addendum went on with an acknowledgement that the owner: “2. Is not responsible for loss or damage to my property; 3. Does not provide insurance on my property for me; and 4. Requires that I provide my own insurance coverage or be ‘Self-Insured’ (personally assume risk of loss or damage).”
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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Texas Legislature Puts a Spear in Doctrine Making Contractor Warrantor of Owner Furnished Plans and Specifications
May 31, 2021 —
Paulo Flores, Timothy D. Matheny & Jackson Mabry - Peckar & Abramson, P.C.The Texas Legislature has just sent Senate Bill 219 (“S.B. 219”) to the Governor for signature; if this legislation is signed by the Governor, it will further erode the Texas legal doctrine that makes the contractor the warrantor of owner-furnished plans and specifications unless the prime contract specifically places this burden on the owner.
Background
49 states follow what is known as the Spearin doctrine (named after the U.S. Supreme Court case of United States v. Spearin) in which owners warrant the accuracy and sufficiency of owner-furnished plans and specifications. Texas, on the other hand, follows the Texas Supreme Court created Lonergan doctrine, which has been an unfortunate presence in Texas construction law since 1907. In its “purest form,” as stated by the Texas Supreme Court, the Lonergan doctrine prevents a contractor from successfully asserting a claim for “breach of contract based on defective plans and specifications” unless the contract contains language that “shows an intent to shift the burden of risk to the owner.” Essentially, this then translates into the contractor warranting the sufficiency and accuracy of owner-furnished plans and specifications, unless the contract between them expressly places this burden on the owner. Over the years some Texas courts of appeal had ameliorated this harsh doctrine, but in 2012, the Texas Supreme Court indicated Lonergan was still the law in Texas, in the case of El Paso v. Mastec. In 2019, the Texas Legislature took the first step toward hopefully abrogating the Lonergan doctrine by implementing a new Chapter 473 to the Texas Transportation Code with respect to certain projects undertaken by the Texas Department of Transportation, and Texas political subdivisions acting under the authority of Chapters 284, 366, 370 or 431 of the Transportation Code, adopting, as it were, the Spearin Doctrine in these limited, transportation projects. Now, the legislature has further chipped away at the Lonergan doctrine with the passage of S.B. 219.
Reprinted courtesy of
Paulo Flores, Peckar & Abramson, P.C.,
Timothy D. Matheny, Peckar & Abramson, P.C. and
Jackson Mabry, Peckar & Abramson, P.C.
Mr. Flores may be contacted at PFlores@Pecklaw.com
Mr. Matheny may be contacted at tmatheny@pecklaw.com
Mr. Mabry may be contacted at jmabry@pecklaw.com
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Proposed Florida Construction Defect Act
January 09, 2015 —
Beverley BevenFlorez-CDJ STAFFMichael J. Furbush and Thomas P. Wert of Roetzel & Andress discussed Florida’s House Bill 87, which proposes to “substantially overhaul Florida’s Construction Defect Act, Chapter 558, requiring property owners to provide more detailed notice of the alleged defect and imposing sanctions on property owners who make frivolous claims.”
Representative Kathleen Passidomo sponsored the bill, which “requires claimants to provide additional details about the alleged defect in the notice of claim, including the specific location of each alleged defect, and the specific provisions of the building code, plans, or specifications that serve as the basis of the defect claim. The failure to include this information in the notice of claim would be considered prima facie evidence of a defective notice.”
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Persimmon Offers to Fix Risky Homes as Cladding Crisis Grows
February 22, 2021 —
Olivia Konotey-Ahulu - BloombergPersimmon Plc, the U.K.’s biggest homebuilder, has offered to pay for work on potentially unsafe buildings in the wake of the cladding scandal that arose from London’s Grenfell Tower fire.
The firm has made a provision of 75 million pounds ($104 million) in its 2020 results for any necessary repair work on 26 buildings it developed that may be affected by the issue, it said in a statement Wednesday. It no longer owns the properties and said it would provide support where owners failed to accept their legal responsibilities.
“The concern around now banned cladding is affecting many thousands of homeowners who live in high-rise buildings right across the country,” Chairman Roger Devlin said in the statement. “We believe we have a clear duty to act to address this issue.”
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Olivia Konotey-Ahulu, Bloomberg
Improper Means Exception and Tortious Interference Claims
August 14, 2023 —
David Adelstein - Florida Construction Legal UpdatesLast week, I discussed a case (
here) that involved a federal district court (trial court) denying a motion to dismiss on a negligent supervision claim.
In this same case, the plaintiff, a subcontractor/fabricator, also sued the defendants–parent company of a prime contractor and two entities the prime contractor hired to inspect the subcontractor’s fabricated units–for tortious interference of the subcontractor’s contract with the prime contractor. The defendants moved to dismiss this tortious interference claim which gave rise to another interesting discussion by the trial court relating to the burden to plead and prove tortious interference claims. This discussion is worthy to remember the next time you not only want to plead a tortious interference claim, but want to be in a position to put on evidence to prove the claim at trial.
“Under Florida law, the elements of a tortious-interference-with-contract claim are: ‘(1) the existence of a contract, (2) the defendant’s knowledge of the contract, (3) the defendant’s intentional procurement of the contract’s breach, (4) absence of any justification or privilege, and (5) damages resulting from the breach.’” Bautech USA, Inc. v. Resolve Equipment, 2023 WL 4186395 (S.D.Fla. 2023) (citation omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com