NEHRP Recommendations Likely To Improve Seismic Design
November 09, 2020 —
Nadine M. Post - Engineering News-RecordCode-based earthquake engineering is on the verge of getting simpler, thanks to the National Earthquake Hazards Reduction Program’s recommendation to replace the traditional seismic hazard maps with an improved seismic hazards database. The recommendation is one of the most significant changes put forth in the 2020 update of the NEHRP seismic design provisions, which are the foundation for the prescriptive seismic design code for buildings and other structures.
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Nadine M. Post, Engineering News-Record
Ms. Post may be contacted at postn@enr.com
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Ninth Circuit Finds Policy’s Definition of “Policy Period” Fatal to Insurer’s “Related Claims” Argument
April 10, 2019 —
Jason M. Taylor - TLSS Insurance Law BlogProfessional liability policies often include some form of a “related claims” or “related acts” provision stating that if more than one claim results from a single wrongful act, or a series of related wrongful acts, such claims will be treated as a single claim and deemed first made during the policy period in which the earliest claim was made. These provisions can have significant implications on the applicable policy and policy limits, retroactive date issues, and whether such claims were first made and reported during a particular policy period. Recently, the Ninth Circuit issued a stern reminder of how the particular policy language can effect, and in this case thwart, the intended scope of the carrier’s “related claims” provision.
In Attorneys Ins. Mut. Risk Retention Grp., Inc. v. Liberty Surplus Ins. Corp., 2019 WL 643442 (9th Cir. Feb. 15, 2019), the Ninth Circuit construed a “related claims” provision included in two consecutive lawyers professional liability policies. During both the 2009–2010 and 2010–2011 insurance policy periods, attorney J. Wayne Allen (“Allen”) was insured through his employer by Liberty Surplus Insurance Corporation’s (“Liberty”) professional liability insurance. Third parties filed suit against Allen during the 2009–2010 policy period in a probate case, and a second, related civil suit during the 2010–2011 policy period.
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Jason M. Taylor, Traub LiebermanMr. Taylor may be contacted at
jtaylor@tlsslaw.com
Parol Evidence can be Used to Defeat Fraudulent Lien
March 27, 2019 —
David Adelstein - Florida Construction Legal UpdatesParol or extrinsic evidence can be used to defeat an argument that a lien is a fraudulent lien. And, just because a lien amount exceeds the total contract amount does not presumptively mean the lien is willfully exaggerated or recorded in bad faith. Finally, a ruling invalidating a construction lien can create the irreparable harm required to support a petition for writ of certiorari. All of these issues are important when dealing with and defending against a fraudulent lien and are explained in a recent case involving a dispute between an electrical subcontractor and its supplier.
In Farrey’s Wholesale Hardware Co., Inc. v. Coltin Electrical Services, LLC, 44 Fla.L.Weekly D130a (Fla. 2d DCA 2019), there were various revisions to the supplier’s initial purchase order, both from a qualitative and quantitative perspective, and a ninth-revised purchaser order was issued and accepted. The electrical subcontractor claimed that deliveries were late, unassembled, and did not include the required marking (likely the UL marking), to pass building inspections. As a result, the subcontractor withheld money from the supplier and the supplier recorded a lien in the amount of $853,773.16 and filed a foreclosure lawsuit.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Building on New Risks: Construction in the Age of Greening
February 20, 2023 —
Blanca Berruguete - Construction ExecutiveFire and explosions remain the No. 1 cause of construction and engineering insurance claims, accounting for 27% of the value of insurance claims over the last five years, according to industry claims data analysis conducted by global commercial insurer AGCS.
Natural catastrophes, such as hurricanes or floods, account for almost a fifth of claims by value (19%), followed by defective products (10%). Faulty workmanship or maintenance (8%) and machinery breakdown (7%) round out the top five causes of construction and engineering losses, according to the value of claims.
The Risks and Benefits of Greening
The analysis was conducted on 22,705 insurance claims made worldwide between January 2017 and December 2021. The claims were worth approximately $13.9 billion in value and include the share of other insurers as well as AGCS. But if there is an impression that the risks remain in stasis, that is not the case.
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Blanca Berruguete, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Brief Discussion of Enforceability of Anti-Indemnity Statutes in California
September 10, 2014 —
William M. Kaufman – Construction Lawyers BlogCalifornia Civil Code Section 2782 has been amended numerous times over the last several years. Essentially, Anti-indemnity statutes may not be fully effective for contracts entered into before January 1, 2009. Some developers and general contractors attempted to comply with the new law, and changed the indemnity provisions of their contracts post January 1, 2006. The time bracket, or zone of danger if you will, is between 1/1/06 and 1/1/09—during those three years California Civil Code §2782 was amended several times. After 1/1/09 Type I indemnity is gone in a residential construction context.
The 2005 amendment to Civil Code §2782 rendered residential construction contracts entered into after 1/1/06 containing a Type I indemnity provision in favor of builders unenforceable;
The 2007 amendment added contractors not affiliated with the builder to the list of contracting parties who could not take advantage of a Type I indemnity provision;
However, the 2008 amendment changed the effective date to 1/1/09, dropped any mention of 2006, and added GCs, other subs, their agents and servants, etc., to the list of possible contracting parties who could not take advantage of a Type I indemnity provision[.]
Reprinted courtesy of
William M. Kaufman, Lockhart Park LP
Mr. Kaufman may be contacted at wkaufman@lockhartpark.com, and you may visit the firm's website at www.lockhartpark.com
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Dear Engineer: Has your insurer issued a “Reservation of Rights” letter? (law note)
April 20, 2017 —
Melissa Dewey Brumback - Construction Law in North CarolinaIn my previous post, I made reference to getting a “Reservation of Rights” letter. I noted that the carrier may decide to defend you under a Reservation of Rights (i.e., hire your lawyer) but may not, necessarily, accept the responsibility for paying the claim. Does this mean that the insurance company has denied your claim, or will never pay? No.
Reservation of Rights (ROR) letters are sent for a variety of reasons- most notably, when some portion of the construction lawsuit against you is not covered under your E&O policy. The letter must state the reason(s) that the ROR is being issued.
With the ROR, the insurance company is telling you that it reserves the right to withdraw from your defense and/or deny payment of damages at a later date, depending upon how facts in the case develop. The notice is intended to let you know that there *may* be issues later, and to put you notice that you have the right to hire your own lawyer (at your own expense) to protect yourself from that future potential risk.
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
Ambiguity Kills in Construction Contracting
May 27, 2019 —
Christopher G. Hill - Construction Law MusingsWell, I’m back and hope to have a more consistent publishing schedule moving forward. I appreciate the continued readership through what has been a busy time for my solo construction practice over the last couple of months. Now, back to our program. . .
Here at Construction Law Musings, I have often beaten the drum of a solid contract that leaves as little as possible to chance or the dreaded “grey areas” where we construction lawyers like to make money. An example of the issues that can arise from ambiguity can be found in a case from 2017 in the Western District of Virginia, W.C. English, Inc. v. Rummel, Klepper & Kahl, LLP et al
In this case, English, a general contractor, entered into a contract for Quality Assurance (QA) functions with RK&K, the defendant, on a contract English entered into with the Virginia Department of Transportation (VDOT). Needless to say, because this would not be a post at Musings otherwise, there were issues with the QA performed by RK&K leading to additional costs for English to correct certain work that did not comply with the contract documents between VDOT and English. English sued for breach of contract based upon a term sheet, signed by the parties, from RK&K that required RK&K to indemnify English for claims by VDOT that related to RK&K’s work (the English Term Sheet). RK&K moved to dismiss the complaint based upon a different term sheet, also signed by the parties, which stated that RK&K could not be held responsible for English’s failure to perform pursuant to the contract documents (the RK&K Term Sheet).
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
ASCE Statement on Devastating Tornado Damages Throughout U.S.
December 20, 2021 —
Tom Smith, Executive Director - American Society of Civil Engineers (ASCE)WASHINGTON, DC. – We are deeply saddened by the tragic tornado storms that ravaged six states across the Midwest and Southeastern portions of the U.S. last Friday evening, resulting in loss of life in five of those six states. Even though warnings were issued throughout the region, storms of this magnitude can be difficult to prepare for. Nevertheless, as civil engineers, our mission is to continually advance the design and construction of safe, reliable, and resilient building structures and infrastructure systems to mitigate the damage caused by storms.
ASCE 7 — a nationally-adopted, consensus-based engineering standard that is the primary reference of structural design requirements in all U.S. building codes — was recently updated to include a new chapter for tornado loads in the 2022 edition. The new tornado provisions in ASCE 7-22 were a result of a decade-long effort in partnership with the National Institute of Standards and Technology following the 2011 Joplin, MO Tornado. ASCE 7-22 provides updated design requirements for a variety of structures, including many of the types impacted by Friday's storms.
In an effort to assist, the Structural Engineering Institute of ASCE is currently offering free access to a report issued after the Joplin, MO tornado in 2011 that killed more than 150 people.
Joplin, Missouri, Tornado of May 22, 2011: Structural Damage Survey and Case for Tornado-Resilient Building Codes presents the observations, findings, and recommendations of an engineering reconnaissance team that surveyed residential structures and schools in the tornado path shortly after the event. The EF 5 tornado cut a seven-mile swath through Joplin, Missouri; it destroyed more than 5,000 buildings and killed more than 150 people.
We will continue to keep those who have been affected in our hearts and thoughts, and we share our heartfelt sympathies.
For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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