Now Available: Seyfarth’s 50 State Lien Law Notice Requirements Guide (2023-2024 Edition)
December 23, 2023 —
Seyfarth Shaw LLPSeyfarth’s Construction team is pleased to announce the release of our 2023-2024 edition of the 50 State Lien Law Notice Requirements Guide. The Guide provides the general time requirements for filing lien notices in each state, plus Washington, DC.
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Seyfarth Shaw LLP
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Getting U.S to Zero Carbon Will Take a $2.5 Trillion Investment by 2030
December 29, 2020 —
Will Wade & Eric Roston - BloombergIt’s going to take $2.5 trillion in spending over the next decade to get the U.S. on a path to a carbon-free economy, but the transition will help to pay for itself, Princeton University researchers say.
Achieving net-zero emissions by 2050 -- a central goal of President-elect Joe Biden’s climate plan -- would require expanding renewable-energy systems, building more efficient homes and putting 50 million electric cars on the road, according to a report released Tuesday.
The effort, two years in the making, is the first major assessment since the election detailing how the U.S. can transition to an energy system that satisfies scientific guidance for keeping the climate livable. While the upfront costs are significant, they would be offset by savings associated with switching to cheaper electricity and the creation of as many as 1 million new jobs, according to the researchers, who shared an earlier draft with Biden’s transition team.
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Will Wade & Eric Roston, Bloomberg
1st District Joins 2nd District Court of Appeals and Holds that One-Year SOL Applies to Disgorgement Claims
June 14, 2021 —
Garret Murai - California Construction Law BlogWe’re beginning to see a trend.
This past year, the 2nd District Court of Appeals, in Eisenberg Village of the Los Angeles Jewish Home for the Aging v. Suffolk Construction Company, 53 Cal.App.5th 1201 (2020), held for the first time that a one (1) year statute of limitations period beginning upon substantial completion of a project applies to disgorgement claims under Business and Professions Code section 7031. In San Francisco CDC LLC v. Webcor Construction L.P., the 1st District Court of Appeals became the second Court of Appeals in the state to hold that a one (1) year statute of limitations beginning upon completion or cessation of work on a project applies to disgorgement claims under Business and Professions Code section 7031.
The San Francisco CDC LLC Case
The Defect Action
In September 2005, San Francisco CDC LLC entered into a $144 million construction contract with Webcor Construction, Inc. doing business as Webcor Builders to build the InterContinental Hotel in San Francisco, California.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Recent Third Circuit OSHA Decision Sounds Alarm for Employers and Their Officers
October 14, 2019 —
John Baker - White and Williams LLPThe Third Circuit Court of Appeals recently issued an opinion that should serve as a warning not only to employers, but to their corporate officers. The case against Altor, Inc., a New Jersey-based construction company, began in 2012 when the Occupational Safety and Health Administration (OSHA) directed Altor and its sole director and officer to pay a $412,000 penalty (Payment Order) to OSHA for several violations, including the failure to comply with fall protection standards. The company refused to pay, arguing that it did not possess sufficient assets. The Secretary of Labor filed a Petition for Civil Contempt against Altor and its President, Vasilios Saites. The court acknowledged that the company and Mr. Saites could defend against a contempt finding by showing that he and the company were unable to comply with the Payment Order. Beyond merely stating that they could not pay, the court required that they must show that they made good faith efforts to comply with the Order.
After considering all of the evidence, the court ultimately relied on Altor’s bank records, which reflected that the company ended each month during a two-year period after the violations with a positive bank balance. Thus, the court determined that Altor could have made “at least relatively modest” payments and emphasized that the company never attempted to negotiate a reduced sum or a payment plan.
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John Baker, White and Williams LLPMr. Baker may be contacted at
bakerj@whiteandwilliams.com
Locals Concerns over Taylor Swift’s Seawall Misdirected
January 13, 2014 —
CDJ STAFFHomeowners in Westerly, Rhode Island have been concerned about alterations made to a seawall below Taylor Swift’s seaside home in Rhode Island, particularly in that some large boulders have been moved to the shore. But officials with Rhode Island’s Coastal Resource Management Council have assured residents that the work is being done at their request, according to the Westerly Sun.
In addition to moving boulders, the project repairs an existing seawall which was damaged by Hurricane Sandy. The cost is estimated to be $2 million.
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Insurer’s Broad Duty to Defend in Oregon, and the Recent Ruling in State of Oregon v. Pacific Indemnity Company
January 02, 2024 —
Keith Sparks - Ahlers Cressman & Sleight PLLCOregon law mandates a broad duty to defend, requiring insurers to provide legal representation to their policyholders whenever there is a potential for coverage under the policy. The significance of this broad interpretation means that an insurer has a duty to defend an insured even in situations where the alleged facts only imply a covered claim, and even in situations where the underlying claim is ultimately not covered by the policy. The insurer’s duty to defend is triggered if the allegations of the complaint, reasonably interpreted, could result in the insured being held liable for damages covered by the policy. This is referred to as the “four-corners” rule; it is also sometimes referred to as the eight-corners rule (for the four corners of the complaint plus the four corners of the policy). Oregon’s adoption of a broad interpretation of the duty to defend affirmatively places the onus on insurers to err on the side of coverage.
This broad duty to defend is based on the principle that an insured should not have to bear the expense of defending a lawsuit that the insurer may ultimately have to pay for. The duty to defend is also important because it helps ensure that insureds have access to legal representation when faced with a lawsuit.
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Keith Sparks, Ahlers Cressman & Sleight PLLCMr. Sparks may be contacted at
keith.sparks@acslawyers.com
Understanding Insurance Disputes in Construction Defect Litigation: A Review of Acuity v. Kinsale
December 17, 2024 —
David M. McLain – Colorado Construction Litigation BlogConstruction projects are inherently complex, and insurance coverage plays a crucial role in managing risks, especially when unforeseen issues arise. The case of Acuity v. Kinsale demonstrates the tangled web of insurance obligations, especially when multiple insurers provide coverage for a single event. This case, involving Monarch Stucco, Inc., Acuity, and Kinsale Insurance Company, sheds light on the challenges that contractors, subcontractors, and insurers may face when disputes over liability and coverage occur.
The Background of the Case
At the heart of this dispute lies a construction defect at a retirement community project in Lakewood, Colorado. Monarch Stucco, Inc. (“Monarch”), a subcontractor hired by GH Phipps Construction Company (“Phipps”), was responsible for stucco work on the project. Unfortunately, defects in the building’s envelope system, particularly Monarch’s stucco work, led to significant damage and costly repairs.
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David M. McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
“Time Is Money!” In Construction and This Is Why There Is a Liquidated Damages Provision
February 01, 2022 —
David Adelstein - Florida Construction Legal UpdatesIn construction, the adage “Time is Money!” rings true for all parties involved on a project. This includes an owner of a project that wants a project completed on time, i.e., by a substantial completion date. While substantial completion is often defined as when an owner can use a project for its intended purpose, this intended purpose typically equates to beneficial occupancy (in new construction) and other factors as identified in the contract.
The best mechanism for an owner to reinforce time and the substantial completion date is through a liquidated damages provision (also known as an LD provision) that includes a daily monetary rate for each day of delay to the substantial completion date.
A liquidated damages provision is not designed, and should NEVER be designed, to serve as a penalty because then it would be unenforceable. Instead, it should be designed to reasonably compensate an owner for delay to the substantial completion date that cannot be ascertained with any reasonable degree of certainty at the time the contract is being negotiated and executed. (Liquidated damages are MUCH easier to prove than actual damages an owner may incur down the road.) As an owner, you don’t really want to assess liquidated damages because that means the project is not substantially completed on time. And, in reality, a timely completed and performing project should always be better and more profitable than a late and underperforming project. However, without the liquidated damages provision, there isn’t a great way to hold a contractor’s feet to the fire with respect to the substantial completion date.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com