Future Environmental Rulemaking Proceedings Listed in the Spring 2019 Unified Federal Agenda
July 15, 2019 —
Anthony B. Cavender - Gravel2GavelThe latest federal regulatory agenda has been released, which, among other matters, lists proposed and projected environmental regulatory proceedings being considered by different departments and agencies. Here are some selected items.
EPA
1. The Water Office
- EPA plans to issue in December 2019 a Notice of Proposed Rulemaking (NPRM) to consider making a regulatory determination as a prelude to listing as drinking water contaminants PFOA and PFOS pursuant to the Safe Drinking Water Act.
- EPA (along with the Corps of Engineers) plans to issue an NPRM in December 2019 that will propose to revise and update its 2008 mitigation banks and in-lieu fee programs, with a final rule scheduled for September 2020.
- An NPRM to revise the 2015 effluent limitations guidelines and standards for the Steam Electric Power Generating Point Source Category will be released in June 2019.
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com
Bound by Group Builders, Federal District Court Finds No Occurrence
August 11, 2011 — Tred R. Eyerly - Insurance Law Hawaii
The homeowners sued their contractor, alleging the contractor had defectively constructed and failed to complete their home.  State Farm Fire and Casualty Co. v. Vogelgesang, 2011 U.S. Dist. LEXIS 72618 (D. Haw. July 6, 2011). The homeowners' complaint pled, among other things, damage caused by breach of contract and negligence. State Farm agreed to defend under a reservation of rights.
State Farm filed suit in federal court for declaratory relief. Judge Mollway granted State Farm's motion for summary judgment. Relying on the Hawaii Intermediate Court of Appeal's decision in Group Builders, Inc. v. Admiral Ins. Co., 123 Haw. 142, 231 P.3d 67 (Haw. Ct. App. 2010), Judge Mollway determined that the claims asserted in the underlying litigation arose from the contractor's alleged breach of contract.  Group Builders held that breach of contract claims based on allegations of shoddy performance were not covered under CGL policies.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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Preparing Your Business For Internal Transition
October 14, 2019 — Stephen P. Katz, Esq. - ConsensusDocs
When is it right to start thinking about succession planning and preparing a construction company for transition? Many would agree – in concept, at least – that serious thought regarding succession and transition planning should begin at a company’s inception and be revisited throughout its lifecycle, but as a practical matter, it is frequently not part of the mindset when growing a business. This article explores issues that construction company owners should consider in order to achieve smooth transition of ownership and control. We will address three critical questions:
- What happens to the business when an owner retires;
- In the event an owner(s) become disabled; and,
- Unplanned exit/owner pre-deceases her/his exit from the company
Owners who do not plan carefully for transition are often faced with the less than appealing option of liquidating their business for much less than its value, or by closing the business with no return upon that event. However, those who plan carefully can realize the value of their life’s work, pass the business to the next generation and see their legacy continue. Read the court decision
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Reprinted courtesy of Stephen P. Katz, Esq., Peckar & Abramson, P.C.
Mr. Katz may be contacted at skatz@pecklaw.com
New York Construction Practice Team Obtains Summary Judgment, Dismissal of Labor Law §240(1) Claim Against Municipal Entities
August 19, 2024 — Lewis Brisbois Newsroom
New York, N.Y. (August 8, 2024) – In Josan v. City of New York, et al., New York Associate Jonathan A. Bartlett, a member of New York Partner Meghan A. Cavalieri’s Construction Practice Team, recently obtained summary judgment and dismissal of the plaintiffs’ Labor Law §240(1) claim against the City of New York, the New York City School Construction Authority, and the New York City Department of Education.
The plaintiff alleged to have sustained injuries as the result of a construction site accident occurring on January 9, 2020, while in the scope of his employment as a forklift operator in connection with the construction/renovation of a school building in Brooklyn, New York. Specifically, the plaintiff alleged that he was injured when a forklift he was operating in order to lift scaffold frame materials tipped over, causing him disabling injuries. The plaintiffs’ counsel articulated an eight-figure initial settlement demand. Read the court decision
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Reprinted courtesy of Lewis Brisbois
Fifth Circuit Confirms: Insurer Must Defend Despite Your Work/Your Product Exclusion
February 14, 2022 — Nathan A. Cazier & Scott S. Thomas - Payne & Fears
The United States Court of Appeals for the Fifth Circuit recently confirmed that liability insurers have a duty to defend their insureds in construction defect cases when the underlying complaint alleges damage to property beyond the product and work of the insured – even if the complaint merely implies that the insured seeks such damage, without explicitly alleging so. Siplast, Incorporated v. Employers Mutual Casualty Company, No. 20-11076, 2022 WL 99303 (5th Cir. Jan. 11, 2022).
The Archdiocese of New York replaced the roof over Cardinal Spellman High School in the Bronx, using a roofing membrane manufactured by Siplast, Inc. (“Siplast”). After a rainstorm a few years later, school officials reported water damage to the ceiling tiles throughout the school, and repair attempts only made the leaking worse. Siplast disputed that the leaks were its fault and refused to replace the roof, so the Archdiocese sued.
Reprinted courtesy of Nathan A. Cazier, Payne & Fears and Scott S. Thomas, Payne & Fears
Mr. Cazier may be contacted at nac@paynefears.com
Mr. Thomas may be contacted at sst@paynefears.com Read the court decision
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Stadium Intended for the 2010 World Cup Still Not Ready
June 18, 2014 — Beverley BevenFlorez-CDJ STAFF
Four years after the HM Pitje Stadium in Pretoria, South Africa was expected to open, the stadium, which was meant to be used during the 2010 World Cup, remains closed. IOL News reported that upgrades began in 2006, “[b]ut since then there have been delays and problems with construction which may see the stands having to be rebuilt.” One of the defects that prevented the stadium from being used for the World Cup was that the slope of the main pavilion was too steep.
City of Tshwane spokesman Selby Bokaba told IOL News: “Upgrading of the stadium will take approximately two calendar years, with the completion date reliant on the approval and budget availability.”
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Illinois Court Assesses Factual Nature of Term “Reside” in Determining Duty to Defend
October 30, 2023 — James M. Eastham - Traub Lieberman
In State Farm Fire & Cas. Co. v. Guevara, 2023 IL App (1st) 221425-U, P2, the Illinois First District Court of Appeals addressed an insurance carrier’s duty to defend under a homeowners insurance policy. The underlying suit stemmed from an alleged injury suffered at a residence located in Berwyn, Illinois and owned by named insured Luz Melina Guevara, a defendant in the suit. After Guevara tendered the suit, State Farm filed a complaint for declaratory judgment seeking a declaration that it had no duty to defend or indemnify Guevara because Guevara did not “reside” at the insured premises.
The policy defined the "insured location" as the "residence premises," and residence premises was defined as "the one, two, three or four-family dwelling, other structures, and grounds or that part of any other building; where you reside and which is shown in the Declarations." In response to the underlying lawsuit, Guevara had filed an answer and affirmative defenses in which Guevara denied the allegation that "At all relevant times, [Guevara] resided in Berwyn, Cook County, Illinois." Guevara admitted that she owned the Berwyn property but denied that she "resided in, maintained and controlled the property". The declaratory judgment complaint alleged (among other things) that, based on admissions by Guevara in her answer, the Berwyn residence was not an "insured location" under the State Farm policy. State Farm moved for summary judgment at the trial court level on this ground and summary judgment was granted in State Farm’s favor. An appeal ensued wherein the parties disagreed as to whether there is a genuine issue of material fact that, under the language of the policy, State Farm had no duty to defend because the Berwyn property was not an "insured location" because she did not "reside" there. Read the court decision
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Reprinted courtesy of James M. Eastham, Traub Lieberman
Mr. Eastham may be contacted at jeastham@tlsslaw.com
Court Extends Insurer Rights to Equitable Contribution
October 28, 2015 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Underwriters of Interest v. ProBuilders Specialty Ins. Co. (No. D066615; filed 10/23/15), a California appeals court refused to enforce an “escape” other insurance clause in an insurer versus insurer contribution action, refused to enforce a Contractors Special Conditions endorsement and found that equitable tolling applied to rule that a nondefending insurer was obligated to reimburse defense costs incurred defending the two insurers’ common insured.
Certain Underwriters provided CGL insurance to Pacific Trades Construction & Development in effect between October 23, 2001 and October 23, 2003. ProBuilders Specialty insured Pacific Trades from December 9, 2002 to December 9, 2004. When Pacific Trades was sued in construction defect actions arising out of the development and construction of single family homes, Underwriters provided a defense, while ProBuilders declined to participate. The case was ultimately settled and when Underwriters sued ProBuilders for contribution to the defense costs, the trial court granted summary judgment for ProBuilders, finding its other insurance clause precluded any obligation to contribute or reimburse Underwriters.
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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