Texas Supreme Court Cements Exception to “Eight-Corners” Rule Through Two Recent Rulings
March 06, 2022 —
Jeremy S. Macklin - Traub Lieberman Insurance Law BlogThe Texas “eight corners” rule precludes insurers from disclaiming a defense obligation based on facts not alleged in the underlying pleadings. Texas federal and appellate courts have been issuing rulings addressing exceptions to the eight corners rule and recently sought guidance from the Texas Supreme Court on whether Texas law recognizes such exceptions to the “eight corners” rule. The Texas Supreme Court has now spoken on the issue.
Monroe Guar. Ins. Co. v. BITCO Gen. Ins. Corp., 65 Tex. Sup. Ct. J. 440 (2022).
In Monroe, David Jones contracted with 5D Drilling & Pump Services in the summer of 2014 to drill a 3,600-foot commercial irrigation well on his farmland. In 2016, Jones sued 5D for breach of contract and negligence relating to 5D’s drilling operations on Jones’s property. Jones’s pleading was silent as to when the damage flowing from 5D’s alleged acts of misconduct occurred. BITCO and Monroe stipulated that 5D’s drill struck a bore hole during 5D’s drilling operations in or around November 2014.
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Jeremy S. Macklin, Traub LiebermanMr. Macklin may be contacted at
jmacklin@tlsslaw.com
Parking Reform Takes Off on the West Coast
January 23, 2023 —
Allan Van Vliet - Gravel2Gavel Construction & Real Estate Law BlogStarting January 1, 2023, real estate developers in Oregon and California will no longer be required to build off-street parking facilities for certain projects located near public transit. Both states enacted new rules during the course of 2022 which are effective as of the beginning of 2023, and which seek to reduce the costs of building at least some new projects in major population centers.
In California, A.B. 2097 was signed by Governor Gavin Newsom in September, and prohibits city governments throughout the state (including in charter cities) from enforcing any local land use provisions which would require the developer to build parking spaces as part of their project if the project is located within one half-mile of a major public transit stop. The law applies to both residential and commercial projects. Cities can continue mandating parking for individual projects if they find that doing so is important to support the development of affordable housing—this exception was added to allay concerns that the bill would undermine “density bonus” programs which have become an important tool for the promotion of new affordable housing development around the state.
In Oregon, following a 2020 executive order by Governor Kate Brown, the state Land Conservation and Development Commission (the body responsible for land use and planning regulation in Oregon) embarked on a two-year rulemaking process which culminated in July of 2022 with the approval of a set of “Climate Friendly and Equitable Communities Rules.” Like the California legislation, these rules (in part) limit the ability of Oregon’s most populous cities to enforce parking minimums for new development projects. Unlike the California law, the Oregon rules encourage cities simply to repeal their parking mandates entirely. Cities subject the new rules which choose not to repeal their parking mandates in full must, as an alternative, adopt new local policies to reduce the amount of land dedicated to parking in certain geographies or in connection with certain uses.
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Allan Van Vliet, PillsburyMr. Van Vliet may be contacted at
allan.vanvliet@pillsburylaw.com
Tishman Construction Admits Cheating Trade Center Clients
December 17, 2015 —
Erik Larson – BloombergTishman Construction Corp., builder of One World Trade Center in New York’s financial district, admitted to an overbilling scheme spanning a decade and agreed to pay $20 million in restitution and penalties.
The scam included the World Trade Center project, the renovation of the landmark Plaza Hotel on 5th Avenue and the expansion of the Javits Convention Center in Manhattan, the U.S. Attorney’s Office in Brooklyn, New York, said Thursday.
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Erik Larson, Bloomberg
Insured's Experts Excluded, But Insurer's Motion for Summary Judgment Denied
October 26, 2020 —
Tred R. Eyerly - Insurance Law HawaiiDespite barring the insured's expert witnesses from testifying as to the cause of the loss, lay witnesses were still available, making the district court's award of summary judgment to the insurer improper. Greater Hall Temple Church of God v. Southern Mut. Church Ins. Co., 2020 U.S. App. LEXIS 21934 (11th Cir. July 15, 2020).
Hurricane Matthew damaged the Greater Hall Temple Church of God's (Church) roof. Leaks occurred, causing water damage to the Church's interior. A claim was submitted to Southern Mutual. The policy did not cover loss caused by water. Nor did it cover loss to the interior of buildings unless the rain entered through openings made by a specified peril. An independent adjuster found that the damage was caused not by wind, but by pre-exisiting structural issues. Southern Mutual denied the claim.
The Church filed suit. Southern Mutual moved for summary judgment and also moved to strike three of the Church's expert witnesses. The district court agreed that none of the witnesses could qualify as experts. Two of the witnesses did not have the requisite experience nor had they used a sufficiently reliable methodology formulating their opinions. A third expert was barred because his expert opinion had not been timely disclosed. Thereafter, Southern Mutual's motion for summary judgment was granted because the Church had not provided admissible evidence that damage to the Church's roof was caused by Hurricane Matthew.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Unpunished Racist Taunts: A Pennsylvania Harassment Case With No True 'Winner'
December 04, 2023 —
Richard Korman - Engineering News-RecordThe taunts started in the first days of Andre Pryce’s new job, camouflaged as joking. During the nine months of 2019 spent working as a drill rig hand, mostly in the woods in western Pennsylvania, for a contractor that also performs much construction-related drilling, he said coworkers filled his ears with racist insults.
Reprinted courtesy of
Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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Lumber Liquidators’ Home-Testing Methods Get EPA Scrutiny
June 10, 2015 —
Matthew Townsend – BloombergThe home testing method Lumber Liquidators Holdings Inc. is using to reassure customers that their floors are safe is being questioned by the U.S. Environmental Protection Agency.
In response to allegations that its Chinese-made laminate flooring emitted excessive levels of formaldehyde, a known carcinogen, Lumber Liquidators sent thousands of do-it-yourself tests to people who’d purchased the products. Customers use a device in the kit to measure the air in their homes for 24 hours, then send the package back to have the results evaluated.
While the EPA didn’t take a position on the specifics of Lumber Liquidators’ test program, the agency said on its website that home air testing “may not provide useful information due to the uncertainties” of the method. Air tests don’t pinpoint the specific source of a contaminant, and there are no widely accepted standards for indoor formaldehyde levels, the agency said.
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Matthew Townsend, Bloomberg
Governor Murphy Approves Legislation Implementing Public-Private Partnerships in New Jersey
August 28, 2018 —
Steven M. Charney & Charles F. Kenny - Peckar & Abramson, P.C.On Tuesday, August 14, 2018, New Jersey Governor Phil Murphy signed Senate Bill S-865, creating the state’s new Public-Private Partnership (PPP) law, making New Jersey the latest state to embrace this burgeoning delivery system for the construction of public infrastructure projects. The new law goes into effect 180 days from today.
Peckar & Abramson (P&A) has teamed with both The Associated Construction Contractors of New Jersey (ACCNJ) and the Association for the Improvement of American Infrastructure (AIAI) who have been at the forefront in promoting this landmark legislation. P&A anticipates that the new law will create multiple opportunities for much needed public building and infrastructure projects in the state. In our recent Client Alert (June 29, 2018), we highlighted the numerous opportunities that will be available as a result of the PPP legislation, notably for the delivery of projects that may not have otherwise come to fruition.
Reprinted courtesy of
Steven M. Charney, Peckar & Abramson, P.C. and
Charles F. Kenny, Peckar & Abramson, P.C.
Mr. Charney may be contacted at scharney@pecklaw.com
Mr. Kenny may be contacted at ckenny@pecklaw.com
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Ambiguity Kills in Construction Contracting
May 27, 2019 —
Christopher G. Hill - Construction Law MusingsWell, I’m back and hope to have a more consistent publishing schedule moving forward. I appreciate the continued readership through what has been a busy time for my solo construction practice over the last couple of months. Now, back to our program. . .
Here at Construction Law Musings, I have often beaten the drum of a solid contract that leaves as little as possible to chance or the dreaded “grey areas” where we construction lawyers like to make money. An example of the issues that can arise from ambiguity can be found in a case from 2017 in the Western District of Virginia, W.C. English, Inc. v. Rummel, Klepper & Kahl, LLP et al
In this case, English, a general contractor, entered into a contract for Quality Assurance (QA) functions with RK&K, the defendant, on a contract English entered into with the Virginia Department of Transportation (VDOT). Needless to say, because this would not be a post at Musings otherwise, there were issues with the QA performed by RK&K leading to additional costs for English to correct certain work that did not comply with the contract documents between VDOT and English. English sued for breach of contract based upon a term sheet, signed by the parties, from RK&K that required RK&K to indemnify English for claims by VDOT that related to RK&K’s work (the English Term Sheet). RK&K moved to dismiss the complaint based upon a different term sheet, also signed by the parties, which stated that RK&K could not be held responsible for English’s failure to perform pursuant to the contract documents (the RK&K Term Sheet).
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com