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Partner Jonathan R. Harwood Obtained Summary Judgment in a Case Involving a Wedding Guest Injured in a Fall

December 30, 2019 — Jonathan R. Harwood - Traub Lieberman Perspectives
On September 30, 2019, Traub Lieberman partner Jonathan Harwood obtained summary judgment in an action involving a guest injured in a fall at a wedding. Traub Lieberman’s client owned the property where the fall occurred. Plaintiff fell while exiting a row of seats after the bridal party had recessed down the aisle. Plaintiff claimed that she tripped over the raised side of a paper runner that had been placed in the aisle at the property. Plaintiff brought an action against Traub Lieberman’s client (the owner of the building) and the florist that had provided the runner. The owner had provided the bridal party with access to the property but did not assist in the set up for the wedding or have any employees present during the ceremony. The florist had supplied the runner for the wedding. The florist commenced a third-party action against the bride, whose wedding party had actually placed the runner in the aisle. Plaintiff asserted that the runner had become bunched and crumpled during the ceremony, creating a dangerous condition. She further asserted that the owner was responsible for her injuries since the dangerous condition existed on its property and it should have an employee present to insure no dangerous conditions existed. During the course of discovery, Mr. Harwood established that no one representing the owner was present during the wedding, had any involvement in the placement of the runner or had received any complaints about the runner. In support of the motion for summary judgment Mr. Harwood introduced pictures showing, in conjunction with deposition testimony, that there were no problems with the runner minutes before plaintiff’s fall. Mr. Harwood also argued that the alleged defect did not involve the property itself, absolving the owner of any obligation to plaintiff. In granting the motion for summary judgment, the court held that evidence and testimony showed that the owner neither created the condition nor had actual or constructive notice that any dangerous condition existed. The court also held that there the owner did not have any duty to have a representative present during the wedding since the property itself was not dangerous or defective. Finally, the court held that the condition of the runner was open and obvious and not inherently dangerous. Read the court decision
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Reprinted courtesy of Jonathan R. Harwood, Traub Lieberman
Mr. Harwood may be contacted at jharwood@tlsslaw.com

Does a No-Damage-for-Delay Clause Also Preclude Acceleration Damages?

January 27, 2020 — Ted R. Gropman & Christine Z. Fan - ConsensusDocs
Construction contracts often include a “no damage for delay” clause that denies a contractor the right to recover delay-related costs and limits the contractor’s remedy to an extension of time for noncontractor-caused delays to a project’s completion date. Depending on the nature of the delay and the jurisdiction where the project is located, the contractual prohibition against delay damages may well be enforceable. This article will explore whether an enforceable no-damage-for-delay clause is also a bar to recovery of “acceleration” damages, i.e., the costs incurred by the contractor in its attempt to overcome delays to the project’s completion date. Courts are split as to whether damages for a contractor’s “acceleration” efforts are distinguishable from “delay” damages such that they may be recovered under an enforceable no-damage-for-delay clause. See, e.g., Siefford v. Hous. Auth. of Humboldt, 223 N.W.2d 816 (Neb. 1974) (disallowing the recovery of acceleration damages under a no-damage-for-delay clause); but see Watson Elec. Constr. Co. v. Winston-Salem, 109 N.C. App. 194 (1993) (allowing the recovery of acceleration damages despite a no-damage-for-delay clause). The scope and effect of a no-damage-for-delay clause depend on the specific laws of the jurisdiction and the factual circumstances involved. There are a few ways for a contractor to circumvent an enforceable no-damage-for-delay clause to recover acceleration damages. First, the contractor may invoke one of the state’s enumerated exceptions to the enforceability of the clause. It is helpful to keep in mind that most jurisdictions strictly construe a no-damage-for-delay clause to limit its application. This means that, regardless of delay or acceleration, courts will nonetheless permit the contractor to recover damages if the delay is, for example, of a kind not contemplated by the parties, due to an unreasonable delay, or a result of the owner’s fraud, bad faith, gross negligence, active interference or abandonment of the contract. See Tricon Kent Co. v. Lafarge N. Am., Inc., 186 P.3d 155, 160 (Colo. App. 2008); United States Steel Corp. v. Mo. P. R. Co., 668 F.2d 435, 438 (8th Cir. 1982); Peter Kiewit Sons’ Co. v. Iowa S. Utils. Co., 355 F. Supp. 376, 396 (S.D. Iowa 1973). Reprinted courtesy of Ted R. Gropman, Pepper Hamilton LLP and Christine Z. Fan, Pepper Hamilton LLP Mr. Gropman may be contacted at gropmant@pepperlaw.com Read the court decision
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Occurrence Found, Business Risk Exclusions Do Not Bar Coverage for Construction Defects

May 13, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The court determined that the supplier of cement for the construction of pools had coverage for alleged construction defects in the finished pools. Harleysville Worcester Ins. Co. v. Paramount Concrete, Inc., 2014 U.S. Dist. LEXIS 43889 (D. Conn. March 31, 2014). R.I. Pools sued Paramount, a manufacturer and supplier of shotcrete, after cracking appeared in nineteen pools built by R.I. Pools using Paramount's shotcrete. The jury awarded R.I. Pools compensatory damages of $2,760,000. Paramount's insurer, Harleysville, defended under a reservation of rights. After the verdict, Harleysville filed for a declaratory judgment that there was no coverage under the CGL policy. Paramount filed for partial summary judgment. Harleysville first argued there was no occurrence. The policy's definition of occurrence included the phrase, "continuous exposure." This broadened the term "occurrence" beyond the word accident to include a situation where damage occurred over a period of time, rather than suddenly or instantaneously. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

PulteGroup Fires Exec Accused of Defamation By Founder’s Heir

January 17, 2023 — Patrick Clark - Bloomberg
PulteGroup Inc. fired a senior executive for violating the company’s code of conduct two days after the grandson of the homebuilder’s founder sued the executive for alleged defamation. The company, which is the third-largest US homebuilder, said in a statement Friday that it had terminated Brandon Jones after the results of an independent investigation. Jones had been slated to assume the role of chief operating officer in January. Bill Pulte, 34, filed a lawsuit on Wednesday in Palm Beach County, Florida, alleging that Jones had used anonymous Twitter accounts to smear members of the Pulte family. The lawsuit accused the executive of impersonating a business journalist and making a false claim that Pulte manipulated his grandfather. Read the court decision
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Reprinted courtesy of Patrick Clark, Bloomberg

Construction Defect Case Not Over, Despite Summary Judgment

November 07, 2012 — CDJ STAFF
The Supreme Court of Oregon has concluded in an en banc decision that a motion to reconsider a summary judgment is not a motion for a new trial. In coming to their conclusion the court overturned an earlier Oregon Supreme Court case, Carter v. U.S. National Bank. Although the decision does not bear on construction defects, the underlying case did. Due to the decision, these claims can now be evaluated in a trial. The case, Association of Unit Owners of Timbercrest Condominiums v. Warren, came about after an apartment complex was converted into condominium units. The developers hired Big Al’s Construction for some of the remodeling work. The condominium association later sued the developer and the contractor over claims of construction defects. The defendants filed a motion for summary judgment, which the court granted. But that wasn’t the end of things. The plaintiff soon filed a “motion to reconsider,” noting that the summary judgment seemed to be in conflict with both law and other recent rulings, and additionally, the grounds for the decision were not in the order. The judge then notified the parties that the court had “pulled the trigger too quickly” and had seven questions for the parties to answer. The court dismissed all claims against the defendants. The defendants filed their responses, objecting that that “‘there is no such thing’ as a motion for reconsideration.” Further, while “the rules do allow for post-judgment review of pre-judgment rulings through a motion for a new trial,” the plaintiffs had not filed for a new trial. But did they need one? They did file an appeal. The judge in the case admitted that there was no such thing as a motion to reconsider, and felt bad about prematurely signing the judgment. The case was sent to the Court of Appeals to determine if the motion to reconsider was a request for a new trial. The Court of Appeals concurred. In reviewing the decision, the Oregon Supreme Court concluded that there were a maximum of three questions to address. Was the motion for reconsideration a motion for a new trial? If so, was the later notice of appeal premature? And if so, was the plaintiff required to file a new appeal? The court determined that the answer to the first question was no. Prior decisions pointed to the conclusion “that a motion for reconsideration of a summary judgment amounts to a motion for a new trial,” but here the court concluded that “our prior cases erred,” and turned to the summary judgment rule for clarification. The court noted that “the rule contemplates that summary judgment and trial are separate and distinct events.” With this conclusion, the Oregon Supreme Court remanded the case to the Court of Appeals for further proceedings. Read the court decision
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ASHRAE Seeks Comments by May 26 on Draft of Pathogen Mitigation Standard

May 22, 2023 — James Leggate - Engineering News-Record
ASHRAE, the professional group focused on research and standards development for heating, ventilation, air conditioning and air conditioning systems, is seeking comments on the first draft of a standard for pathogen mitigation, it announced May 15. ASHRAE will accept comments on the public review draft, via osr.ashrae.org, through May 26. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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National Lobbying Firm Opens Colorado Office, Strengthening Construction Defect Efforts

January 05, 2017 — Beverley BevenFlorez-CDJ STAFF
Michael Best Strategies, a national law and lobbying firm, has recently opened an office in Colorado. According to the Denver Business Journal, the firm “has recruited several big-name associates — a move that could give business leaders even more clout with the Legislature on issues such as construction-defects reform.” One of the firm’s recruits, Jeff Thormodsgaard, the lead lobbyist in the recent movement to make it harder to sue condominium builders, told the Denver Business Journal, “The only change [in the construction-defects reform effort] is that we’re going to be adding more feet and more boots on the ground and more gravitas.” Read the court decision
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NY Gov. Sets Industry Advisory Council to Fix Public Contracts Process

February 01, 2022 — James Leggate - Engineering News-Record
A New York construction industry advisory group, created under a law Gov. Kathy Hochul signed in December, will study and recommend adjustments to state public contracting to address damages incurred by contractors, subcontractors and others because of payment delays on public projects. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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