Construction Defect Claim Survives Insurer's Summary Judgment Motion Due to Lack of Evidence
December 23, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe court denied the insurer's motion for summary judgment on a construction defect claim due to lack of evidence. Statesboro Erectors, Inc. v. Owners Ins. Co., 2024 U.S. Dist. LEXIS 176555 (N.D. Ga. Sept. 30, 2024).
Griffco was the general contractor for a construction project. King Steel was hired as the "steel fabricator." King Steel subcontracted with Statesboro Erectors to complete certain construction work at the site. Statesboro agreed to the complete, proper and safe erection of the structural steel.
A steel collapse occurred at the construction site. According to King Steel, the collapse "appeared to have occurred due to lack of temporary cables or bracing for steel columns." Because of the collapse, King Steel was required to supply additional materials to replace the structural damage caused by the collapse.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Consequential Damage Claims for Insurer's Bad Faith Dismissed
April 22, 2019 —
Tred R. Eyerly - Insurance Law HawaiiPartial dismissal of the insured's complaint seeking consequential damages for the insurer's bad faith was granted by the court. Bryant v. General Cas. Co., 2019 U.S. Dist. LEXIS 15369 (N.D. N.Y. Jan. 30, 2019).
Bryant purchased from General Casualty Company of Wisconsin (GCCW) a commercial property and casualty policy to cover the insured premises. While the building was rented to a tenant who operated a restaurant, it sustained a collapse. GCCW refused to cover the loss. Bryant sued. In addition to the cost of repairing and replacing the damage to the property, Bryant alleged he was out the value of rental revenue from his tenant, which was forced to close the restaurant and relocated as a result of the unrepaired damage.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
U.S. Construction Value Flat at End of Summer
December 04, 2013 —
CDJ STAFFThe Census Bureau has released it numbers for the value of construction put in place for September and October, and while further numbers are forthcoming, this current report shows little change. The value of construction dropped a miniscule 0.3% in September, however, residential construction actually showed a slight increase.
October then showed a 0.8% increase, but then private residential construction dropped by 0.5%. In all, however, by the end of October, private residential spending was up 17.8% over the prior year. As with other sectors of public spending, public residential spending dropped 3.4% from the prior year.
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AIA Releases State-Specific Waiver and Release Forms
September 05, 2022 —
Garret Murai - California Construction Law BlogThe American Institute of Architects (AIA) has released a new series of state-specific waiver and release forms including forms for California. The new
California-specific forms are:
- G901CA-2022 – California Conditional Waiver and Release on Progress Payment
- G902CA-2022 – California Unconditional Waiver and Release on Progress Payment
- G903CA-2022 – California Conditional Waiver and Release on Final Payment
- G904CA-2022 – California Unconditional Waiver and Release on Final Payment
California is one of twelve states – including Arizona, Florida, Georgia, Massachusetts, Michigan, Mississippi, Missouri, Nevada, Texas, Utah and Wyoming – which regulate waiver and release forms on construction projects. California’s waiver and release statute, which is codified at Civil Code section 8120 et seq., sets forth specific language which should be used in waivers and releases. While the exact language set forth under California’s waiver and release statutes does not need to be used, the statute provides that the language must be “in substantially” the same form, and most people follow the statutory language exactly.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
SB800 Is Now Optional to the Homeowner?
August 30, 2013 —
James Ganion - Ulich & Terry, LLPThe following communication republished courtesy of James Ganion, Ulich & Terry, LLP
Dear Builders, Colleagues, and Interested Parties:
I attach for your review a copy of this week’s opinion of the California Court of Appeal in our case of Liberty Mutual v. Brookfield. This opinion represents a significant change to the right of California builders to repair homes under SB800, California’s Right to Repair Act.
In a nutshell, the Court determined that SB800 was not intended to replace prior applicable law, but merely be supplemental to prior law. Thus, a homeowner, or in this case the homeowner’s insurer, can pick and choose among SB800 and prior law, or even allege both in the alternative. In so deciding, the Court of Appeal reversed the holding of the trial court which had held, as so many trial courts have since 2003, that SB800 was intended to be the new exclusive remedy for construction defect claims.
While we of course take issue with most of what the Court of Appeal has to say, the real life net effect is that SB800 is now optional to the homeowner, meaning the “right” to repair now lies in the hands of the homeowner who can elect to simply bypass that law and proceed with the filing of a lawsuit under prior law. Hardly what any of us believe the legislature intended.
ULICH & TERRY LLP as counsel for Brookfield in this case will be filing a petition for rehearing with the Court of Appeal by September 6, 2013. Anyone interested in supporting the petition may file a letter with the Court of Appeal, preferably by September 13, 2013. Thereafter, assuming the Court of Appeal does not grant rehearing, we will be filing a petition for review with the California Supreme Court.
Our firm, as appellate counsel, has established a website
libertymutualvbrookfieldcrystalcove.com and through it will be providing information regarding the case, including copies of pleadings, orders, deadlines, and information on how to provide support for this case, which is of interest to the home building industry.
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James Ganion James Ganion can be contacted at
jganion@ut-law.com
Seattle Expands Bridge Bioswale Projects
May 11, 2020 —
Jim Parsons - Engineering News-RecordThe success of engineered systems to capture stormwater runoff from Seattle’s Aurora Avenue Bridge has spurred construction of additional measures that proponents say will increase total filtering capacity by another two million gallons per year.
Jim Parsons, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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Formal Request for Time Extension Not Always Required to Support Constructive Acceleration
April 25, 2022 —
David Adelstein - Florida Construction Legal UpdatesDoes a constructive acceleration claim require the contractor to always request an extension of time which is then denied by the owner? While this is certainly the preference and the contractor should be requesting an extension of time as a matter of course for an excusable delay, the answer is NO! in certain circumstances. This is conveyed in the factually detailed case discussed below where a formal request for an extension of time was not required for the contractor to support its constructive acceleration claim.
But first, what is constructive acceleration:
Constructive acceleration “occurs when the government demands compliance with an original contract deadline, despite excusable delay by the contractor.” The Federal Circuit in Fraser defined the elements of constructive acceleration as follows:
(1) that the contractor encountered a delay that is excusable under the contract; (2) that the contractor made a timely and sufficient request for an extension of the contract schedule; (3) that the government denied the contractor’s request for an extension or failed to act on it within a reasonable time; (4) that the government insisted on completion of the contract within a period shorter than the period to which the contractor would be entitled by taking into account the period of excusable delay, after which the contractor notified the government that it regarded the alleged order to accelerate as a constructive change in the contract; and (5) that the contractor was required to expend extra resources to compensate for the lost time and remain on schedule.
Nova Group/Tutor-Saliba v. U.S., 2022 WL 815826, *42 (Fed.Cl. 2022) quoting Fraser Constr. Co. v. U.S., 384 F.3d 1354, 1361 (Fed. Cir. 2004) (internal citations omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
MGM Begins Dismantling of the Las Vegas Harmon Tower
June 26, 2014 —
Beverley BevenFlorez-CDJ STAFFMGM has begun to dismantle the $8.5 billion, incomplete Harmon Hotel in Las Vegas, Nevada, according to the Las Vegas Review-Journal. The demolition process is expected to take up to a year.
The Las Vegas Review-Journal reported that construction of the tower was halted in 2008 after construction defects were allegedly discovered. Later, “the building was deemed structurally unsound.”
“Instead of blowing the building up in grand fashion, contractors hired by MGM Resorts are now removing scrap metal and other materials from the building, along with taking off the blue-tinged glass that has covered the structure for the last five years,” Howard Stutz wrote in the Las Vegas-Review Journal. “The process also includes installing pedestrian protection systems outside the structure above adjacent sidewalks and walkways.”
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