Be Careful When Requiring Fitness for Duty Examinations
October 21, 2015 —
Craig Martin – Construction Contractor AdvisorFitness for Duty examinations can be an important part of an employer’s hiring and retention protocol. The Nebraska Supreme Court recently clarified when an employer may require applicants and employees to undergo fitness for duty examinations. In Arens v. Nebco, Inc., the court ruled that an employer must have a legitimate, nondiscriminatory reason for its demand that a current employee submit to a fitness for duty examination.
In this case, Lenard Arens suffered two significant injuries over the course of his 25 years of employment with Nebco. The second injury, a closed head injury, limited the type of work he could do and required written instructions due to short term memory loss. Arens was assigned to drive tractor-trailer trucks. Several years after returning to work, Arens had two minor accidents with his truck within a matter of days. Arens supervisor required him to undergo fitness for duty examination. Arens failed the fitness for duty examination and was terminated. Arens filed suit, claiming that Nebco discriminated against him by making him take a fitness for duty test.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Mexico’s Construction Industry Posts First Expansion Since 2012
August 13, 2014 —
Brendan Case – BloombergMexico’s construction industry expanded in June for the first time in 19 months, adding to signs that the economy is rebounding after missing analyst estimates in seven of the last eight quarters.
Construction increased 2.2 percent from the year earlier, helping industrial production to expand 2 percent, according to data released today by the national statistics agency. The median estimate of 19 economists surveyed by Bloomberg was for industrial output to rise 2.1 percent.
“Industrial activity continued strengthening in June, very much in line with what the market expected,” Mario Correa, the chief Mexico economist at Bank of Nova Scotia, said in a note to clients today. “The construction industry finally showed a positive growth rate.”
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Brendan Case, BloombergMr. Case may be contacted at
bcase4@bloomberg.net
A Court-Side Seat: Waters, Walls and Pipelines
August 03, 2020 —
Anthony B. Cavender - Gravel2GavelSeveral interesting decisions have recently been made by federal and state courts.
FEDERAL APPELLATE COURTS
The U.S. Seventh Circuit Court of Appeals – ARCO Shifts from State to Federal and No Vigor for VIM
On June 18, 2020, the court decided the case of Baker, et al. v. ARCO, holding that the revised federal removal statutes authorize the removal to federal court of a state-filed complaint against several defendants by the former residents of an Indiana housing complex who contended that the defendants were responsible for the industrial pollution attributed to the operations of a now-closed industrial plant. The housing complex was constructed at the site of the former U.S. Smelter and Lead Refinery. During the Second World War, the plant produced products for the use of the government war effort, thus triggering the applicability of the federal removal statutes.
On June 25, 2020, the court decided the case of Greene, et al. v. Westfield Insurance Company. As the court notes, this is a matter that “began as a case about environmental pollution and evolved into a joint garnishment action.” An Indiana wood recycling facility, VIM Recycling, was the subject of many complaints by nearby residents that its operations and waste disposal activities exposed then to dust and odors in violation of federal law and triggered state tort law claims. VIM was sued in state court, but neglected to notify its insurer, as required by its insurance policy with Westfield Insurance. One thing led to another, and a default judgment in the amount of $ 50 million was entered against VIM. Since VIM at that point had no assets, the plaintiffs and later VIM sought recovery from Westfield. When this dispute landed in federal court, the court, after reviewing the policy, concluded that there was a provision excluding coverage when the insured knew it had these liabilities when it purchased the insurance. As a result, the lower court dismissed the lawsuit, and this decision has been affirmed by the Seventh Circuit.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
CGL Policy Covering Attorney’s Fees in Property Damage Claims
December 11, 2018 —
David Adelstein - Florida Construction Legal UpdatesDoes a CGL policy cover attorney’s fees and costs in property damages claims, to the extent there is a contractual or statutory basis to recover attorney’s fees? Naturally, you need to review the policies and this is not a clear-cut issue, but there is law to argue under.
A case I have argued in support of CGL policies providing for coverage for attorney’s fees as a component of property damage claims when there is a contractual or statutory basis is Assurance Co. of America v. Lucas Waterproofing Co., Inc., 581 F.Supp.2d 1201 (S.D.Fla. 2008). In this case, the following applied:
- The policy provided coverage for “those sums that the insured becomes legally obligated to pay as damages of… ‘property damage’….
- Property damage was defined as “physical injury to tangible property, including all resulting loss of use of that property.”
- The term damage, in of itself, was not defined in the policy.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
No Duty to Defend Faulty Workmanship Under Hawaii Law, but All is not Lost for Insured Contractor
June 06, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court found no duty to defend claims of faulty workmanship under certain policies issued to the insured contractor, but rejected arguments made by the Insurers regarding various provisions of the general liability and excess policies. St. Paul Fire & Marine Ins. Co. v. Bodell Consr. Co., 2022 U.S. Dist. LEXZIS 79379 (D. Haw. May 2, 2022). (Note- our office represents the insured contractor).
In 2003, Bodell was hired by developer Sunstone Realty Partners L LLC to be the general contractor for construction work on a condominium project, "Ali`i Cove." The project consisted of approximately 37 buildings and one recreation center that were constructed over the course of four years. On August 14, 2015, the AOAO of Ali`i Cove sued Sunstone, alleging that Sunstone developed, built, and sold condominium nits using embedded straps that did not meet building codes, instead of bolting house frames to their foundations. The AOAO filed a second amended complaint alleging numerous additional defects which were referenced in an expert report. These included additional alleged construction defects such as site conditions, structural issues, building envelope, roofing, general architecture, mechanical, plumbing and electrical. In all, the report purported to find approximately 281 instances of faulty workmanship.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Appraisers May Determine Causation
January 21, 2015 —
Tred R. Eyerly – Insurance Law HawaiiIn a case of first impression, the Iowa Court of Appeals held that an appraisal may determine issues of causation. North Glenn Homeowners Association v. State Farm Fire & Cas. Co., 854 N.W. 2d 67 (Iowa Ct. App. 2014).
On July 15, 2009, North Glenn Homeowners Association submitted a claim to State Farm for hail damage on the roof. The claim was paid. North Glenn did not repair all of the damage, instead deciding to use some of the money to make other repairs to the property.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
But Wait There’s More: Preserving Claims on Commonwealth Projects
February 07, 2018 —
Wally Zimolong - Supplemental Conditions BlogOn construction projects owned by the Commonwealth of Pennsylvania, a contractor may make a claim with the Board of Claims. But first, you must be aware of two limitations periods that could cause you to waive your claim if they are not met.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
What Does It Mean When a House Sells for $50 Million?
September 10, 2014 —
Jonathan J. Miller – BloombergOne of the byproducts of the global financial crisis has been the creation of a new class of housing and buyers. Some of the strongest evidence is the rise in the number of residences sold for more than $50 million.
A buyer recently paid a record $71.3 million for a Manhattan co-op, breaking the $70 million record set only a few months earlier. These sales seem modest compared with a $147 million sale in East Hampton, New York, and a $120 million sale in Greenwich, Connecticut, the two highest U.S. residential transactions in 2014. There have been six sales of more than $100 million in the past four years, with more likely to come.
Wealthy investors have benefited from rising stock markets, while preserving capital by acquiring assets such as U.S. residential real estate. However, the high-end market isn't a proxy for the health of the broader U.S. housing market. Unlike the buyers in the market's upper strata, who often are foreign and all-cash purchasers, the majority of U.S. homebuyers remain dependent on access to credit. And today's tight lending conditions aren’t expected to ease anytime soon. According to the Federal Reserve, only a small number of banks have recently eased mortgage standards.
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Jonathan J. Miller, BloombergMr. Miller may be contacted at
jmiller@millersamuel.com