Discussion of the Discovery Rule and Tolling Statute of Limitations
February 26, 2015 —
Beverley BevenFlorez-CDJ STAFFAttorney Clay Olson analyzed a recent South Carolina appeals case that “discussed the threshold for ‘notice’ as it pertains to statute(s) of limitations in construction defect cases. At the root of this action was a 2003 forensic report obtained by the HOA which was not acted upon until 2009.”
Olson presented the background of the case as well as the case progression. Olson concluded, “It is well settled that an expert’s findings, when presented to a claimant, trigger the statute of limitations as to the specific defective conditions and locale where defects are present. This case is interesting in its treatment of the initial report as a trigger of all defects in not only the main building which was subject of the 2003 report, but additional structures.”
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$48 Million Award and Successful Defense of $135 Million Claim
June 04, 2024 —
Peckar & AbramsonPeckar & Abramson is proud to have represented one of the nation’s largest general contractors in the achievement of a $48 million award in its favor and the denial of a $135 million claim against it in Federal Court in the Middle District of Florida on May 3, 2024 arising out of the FDOT’s $2.3 billion reconstruction of I-4, a P3 project and the Department’s largest project ever in the State of Florida.
After a 2-week bench trial, P&A secured the favorable decision which found that the general contractor client was entitled to recover $48 million on its affirmative claim against the party who initiated the lawsuit and that it did not breach its fiduciary duties and was not grossly negligent as was claimed which resulted in a denial of the initiating party’s $135 million claim in its entirety.
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Peckar & Abramson
ABC Safety Report: Construction Companies Can Be Nearly 6 Times Safer Than the Industry Average Through Best Practices
May 06, 2024 —
Associated Builders and ContractorsWASHINGTON, April 30, 2024 (GLOBE NEWSWIRE) -- Associated Builders and Contractors today announced the findings from its
2024 Safety Performance Report, an annual guide to construction jobsite health and safety best practices. The report is unveiled to coincide with
Construction Safety Week, May 6-10.
The annual safety report also provides a comprehensive understanding of the impact of deploying
ABC's STEP Safety Management System, which enables top-performing ABC members to achieve incident rates 576% safer than the U.S. Bureau of Labor Statistics construction industry average. Established in 1989, STEP provides contractors and suppliers with a robust, no-cost framework for measuring safety data and benchmarking with peers in the industry.
ABC's research on more than 900 million work hours completed by participants in the construction, heavy construction, civil engineering and specialty trades in 2023 identified the following foundations of industry-leading safety best practices:
- Top management engagement: Employer involvement at the highest level of company management produces a 54% reduction in total recordable incident rates, or TRIR, and a 52% reduction in days away, restricted or transferred rates, or DART rates.
- Substance abuse prevention programs: Robust substance abuse prevention programs/policies with provisions for drug and alcohol testing where permitted lead to a 47% reduction in TRIR and a 48% reduction in DART rates.
- New hire safety orientation: Companies that conduct an in-depth indoctrination of new employees into the safety culture, systems and processes based on a documented orientation process experience incident rates that are 45% lower than companies that limit their orientations to basic health and safety compliance topics.
- Frequency of toolbox talks: Companies that conduct daily, 15-to-30-minute toolbox talks reduce TRIR and DART rates by 81% compared to companies that hold them monthly.
The 2024 ABC Safety Performance Report is based on submissions of unique company data gathered from members that deployed during the 2023 STEP term, Jan. 15-Dec. 15. ABC collects each company's trailing indicator data as reported on its annual Occupational Safety and Health Administration Form 300A ("Summary of Work-Related Injuries and Illnesses") and its self-assessment of leading indicator practices from its STEP application. Each data point collected is sorted using statistically valid methodology developed by the BLS for its annual Occupational Injuries and Illnesses Survey and then combined to produce analyses of STEP member performance against BLS industry average incident rates. The report demonstrates that applying industry-leading processes dramatically improves health and safety performance among participants regardless of company size or type of work.
Any company can participate in STEP. Visit abc.org/step to begin or continue your safety journey.
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Colorado’s Federal District Court Finds Carriers Have Joint and Several Defense Duties
July 31, 2013 —
Tred Eyerly, Insurance Law HawaiiAn issue that has plagued builders in Colorado construction defect litigation is the difficulty of getting additional insured carriers to fully participate in the builder’s defense, oftentimes leaving the builder to fund its own defense during the course of the litigation.
Many additional insurers offer a variety of positions regarding why they will not pay for fees and costs during the course of a lawsuit. Some insurers argue that, until after trial, it is impossible to determine its proper share of the defense, and therefore cannot make any payments until the liability is determined as to all of the potentially contributing policies. (This is often referred to as the “defense follows indemnity” approach.) Others may make an opening contribution to defense fees and costs, but fall silent as fees and costs accumulate. In such an event, the builder may be forced to fund all or part of its own defense, while the uncooperative additional insured carrier waits for the end of the lawsuit or is faced with other legal action before it makes other contributions.
Recent orders in two, currently ongoing, U.S. District Court cases provide clarity on the duty to defend in Colorado, holding that multiple insurers’ duty to defend is joint and several. The insured does not have to go without a defense while the various insurers argue amongst themselves as to which insurer pays what share.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Not If, But When: Newly Enacted Virginia Legislation Bans “Pay-If-Paid” Clauses In Construction Contracts
August 22, 2022 —
Joseph A. Figueroa & Thomas E. Minnis - ConsensusDocsRecently passed legislation in Virginia is likely to dramatically change contractual relationships between prime contractors and subcontractors in the Commonwealth. Abrogating well-established common-law principles set forth by the Supreme Court of Virginia, on April 27, 2022, the Virginia General Assembly, after receiving input from Virginia Governor Glenn Youngkin, passed Senate Bill 550 banning “pay-if-paid” clauses in public and private construction contracts. Contractors performing work in Virginia should take note of the new law, which goes into effect next year and will apply to any contracts executed after January 1, 2023.
The History Of Pay-if-Paid Clauses In Virginia
Broadly speaking, “pay-if-paid” clauses are a commonly used tool by prime contractors on construction projects to shift the risk to subcontractors in the event that the owner does not pay the prime contractor for work. Such clauses usually include language creating an express condition precedent to the subcontractor’s right to be paid for work under a subcontract, stating that the prime contractor shall be under no obligation to pay the subcontractor for work unless and until the prime contractor first receives payment for that work by the project owner. The “pay-if-paid” clause also has a less extreme cousin, the “pay-when-paid” clause, which merely delays the time in which the prime contractor is obligated to pay the subcontractor to the time in which the prime contractor is paid by the owner. It does not, however, extinguish the prime contractor’s ultimate obligation to pay the subcontractor.
Reprinted courtesy of
Joseph A. Figueroa, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs) and
Thomas E. Minnis, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs)
Mr. Figueroa may be contacted at jfigueroa@watttieder.com
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JAMS Announces Updated Construction Rules
June 21, 2021 —
JAMSIrvine, Calif. – JAMS, the largest private provider of
alternative dispute resolution (ADR) services worldwide, is pleased to announce it has revised and updated its
Construction Arbitration Rules & Procedures and
Expedited Construction Arbitration Rules & Procedures, effective June 1. These Rules were updated to reflect the latest developments and trends in
construction arbitration.
In response to the transition to virtual and hybrid proceedings, Rule 22 makes explicit the arbitrator’s full authority to conduct the hearing in person, virtually or in a combined form, as well as with participants in more than one geographic location. To support access to case documents throughout the proceedings, Rule 8 aligns electronic filing and service with the functionality of JAMS Access, a centralized, secure online case management platform.
Additional rules were created or revised to clarify and strengthen the authority of the arbitrator. Key changes include allowing an arbitrator to withhold approval of any intended change in party representation that could compromise the proceedings or the final award, to set a hearing without consulting a party that he or she reasonably believes will not participate and to permit a party to file a motion for summary disposition of a claim if the arbitrator believes that party has demonstrated the motion is likely to succeed.
About JAMS – Local Solutions. Global Reach.
Founded in 1979, JAMS is the largest private provider of alternative dispute resolution services worldwide. JAMS successfully resolves and manages business and legal disputes by providing efficient, cost-effective and impartial ways to overcome barriers at any stage of conflict. JAMS offers customized in-person, virtual and hybrid resolution services locally and globally through a combination of industry-specific experience, first-class client service, the latest technology and highly trained mediators and arbitrators.
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JAMS
Real-Estate Pros Fight NYC Tax on Wealthy Absentee Owners
October 15, 2014 —
Henry Goldman and Allyson Versprille – BloombergA political battle is brewing at the apex of New York’s property market.
The real-estate industry is mobilizing to kill a proposed levy on non-resident owners of apartments valued at more than $5 million, seeking to ensure the world’s biggest city doesn’t follow London, Hong Kong and Singapore in extracting extra cash from trophy properties.
The industry’s lobbying arm, the Real Estate Board of New York, says the measure will scare off investors who fuel a business supporting more than 500,000 jobs and generating 40 percent of the five boroughs’ revenue. Brokers warn of economic calamity if officials slap a luxury tax on apartments owned by someone who lives in the city less than half the year.
Mr. Goldman may be contacted at hgoldman@bloomberg.net; Ms. Versprille may be contacted at aversprille1@bloomberg.net
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Henry Goldman and Allyson Versprille, Bloomberg
Georgia Update: Automatic Renewals in Consumer Service Contracts
August 31, 2020 —
David R. Cook - AHC BlogGeorgia HB 1039 amends O.C.G.A. § 13-12-3 to provide additional protections for consumers who enter into service contracts containing lengthy automatic renewal provisions.
Pre-Existing Requirement: For service contracts with an initial term of twelve months or longer and an automatic renewal provision for more than one month, unless the consumer terminates the agreement, sellers must provide written or electronic notification of the automatic renewal provision to the consumer. The notification must be provided to the consumer between 30 and 60 days before the cancellation deadline under such renewal provision. The notice must also “clearly and conspicuously” disclose that unless the consumer cancels, the agreement will automatically renew and disclose how the consumer may obtain details about the automatic renewal provision and cancellation procedure. The process by which a consumer may obtain such information must include the seller’s contact information (e.g., specific phone number or address), reference to the contract, or any other method provided.
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David R. Cook, Autry, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
