COLUMBUS OHIO BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Improper Classification Under Davis Bacon Can Be Costly

April 01, 2015 — Craig Martin – Construction Contractor Advisor
The Department of Labor announced late last year that it had recovered nearly $2 million in back wages and fringe benefits from a subcontractor that provided constructions services at the federally funded Crescent Dunes Solar Energy Project in the Nevada desert. This was not a failure to pay Davis Bacon wages, but a failure to properly classify laborers on the project. The DOL determined that the laborers should have been paid as skilled trade steelworkers, not general laborers. As the subcontractor found out, this proved very costly. The subcontractor submitted its bid, classifying its laborers as general laborers and designating their wage at $30.00. The laborers were to assemble billboard sized mirrors on the project. There is some indication that the Department of Energy agreed with the classification, even though the Department of Labor has the final say on classifications. The Department of Labor’s investigation revealed that the laborers routinely performed duties in skilled trades, such as ironworking, electrical work, painting or bridge crane operation. Based on these activities, the Department of Labor concluded that the laborers should have been paid $60.00 per hour plus fringe benefits. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

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Just Decided – New Jersey Supreme Court: Insurers Can Look To Extrinsic Evidence To Deny a Defense

September 05, 2022 — Randy J. Maniloff - White and Williams LLP
Last week, the New Jersey Supreme Court decided Norman International, Inc. v. Admiral Insurance Company, No. 086155 (N.J. Aug. 11, 2022). At issue was coverage for a work-site injury and the interpretation of a policy exclusion for operations or activities performed by an insured in certain counties in New York. The case is significant in terms of addressing causation for purposes of the application of exclusions. But the more wide-reaching issue has nothing to do with the scope of the exclusion. The real story from Norman is the New Jersey high court’s pronouncement that an insurer, in certain circumstances, can use extrinsic evidence to deny a defense to its insured. New Jersey duty to defend law has been a jungle land and in need of more supreme court guidance. Read the court decision
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Reprinted courtesy of Randy J. Maniloff, White and Williams LLP
Mr. Maniloff may be contacted at maniloffr@whiteandwilliams.com

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Hawaii Court Finds No Bad Faith, But Negligent Misrepresentation Claim Survives Summary Judgment in Construction Defect Action

November 06, 2013 — Tred Eyerly — Insurance Law Hawaii
Judge Mollway, U.S. District Court Judge for the District of Hawaii, found the insurer was not in bad faith for allegedly leading its insured to believe that construction defects would be covered under the policy. The court, however, allowed the insured's negligent misrepresentation claim to survive summary judgment. Ill Nat'l Ins. Co v. Nordic PCL Constr., 2013 U.S. Dist. LEXIS 151748 (D. Haw. Oct. 22, 2013). The insurer denied coverage when Nordic was sued for construction defects related to its construction of two Safeway stores in Honolulu. Prior to the issuance of the policies the Ninth Circuit had issued its opinion in Burlington Ins. Co. v .Oceanic Design & Constr., Inc., 398 F.3d 940 (9th Cir. 2004), which predicted that Hawaii appellate courts would rule that construction defects were not "occurrences." Nevertheless, Nordic's witnesses contended when the policies were purchased, they believed construction defects were covered. Specifically, Nordic thought the policies provided completed operations coverage for property damage arising out of Nordic's subcontractors' work. Nordic further contended that only after the Hawaii Intermediate Court of Appeals decided in Group Builders, Inc. v. Admiral Ins .Co., 123 Haw. 142 (Haw. Ct. App. 2010) that construction defect claims did not constitute an "occurrence" did the insurer change its position and decide the policies did not cover construction defects. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

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Insurers May Not Be Required to Defend Contractors In a Florida §558 Proceeding

November 06, 2018 — Erik Simpson - Gordon & Rees Construction Law Blog
In recent holding, the Florida Supreme Court held that an insurer may not have a duty to defend a contractor in a Florida §558 proceeding. Chapter 558 of the Florida Statutes sets forth procedural requirements which must be met before a claimant may file a construction defect action. These requirements include serving a contractor, subcontractor or supplier with written notice of the claim. The contractor, in turn, must serve a written response to the notice of claim in which the contractor provides either an offer to repair the alleged construction defect at no cost to the claimant, resolution of the claim through a monetary payment, a statement disputing the claim, or a statement that any monetary payment will be determined by the recipient’s insurer. The claimant may file suit if the contractor disputes the claim and refuses to remedy the alleged defect or provide monetary compensation. Read the court decision
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Reprinted courtesy of Erik Simpson, Gordon & Rees
Mr. Simpson may be contacted at esimpson@grsm.com

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Travelers v. Larimer County and the Concept of Covered Cause of Loss

May 10, 2013 — Brady Iandiorio
Travelers Indemnity Company (“Travelers”) recently won a decision against Larimer County regarding a claim for damage caused to the roofs of several buildings at the County Fairgrounds. Travelers Indemnity Company v. Board of County Commissioners for Larimer County, Slip Copy, 2013 WL 238865, p. 1 (10th Cir. 2013). Larimer County alleged, in district court, that snowstorms and the weight of the snow build-up caused damage to the roof structures. Id. After the district court found for Travelers on a motion for summary judgment, Larimer County appealed the ruling, claiming that Traveler’s was obligated under the insurance policy to pay for repair costs to portions of the roofing structure. Id. The underlying claim for repairs originates with several snowstorms that caused damage to several buildings on the County Fairgrounds. The damage claimed was widespread to the roof structures, evidenced by rolling and buckling purlins (horizontal beams running along the length of the roof, resting upon the principal rafters at right angles and supporting the ordinary rafters). Travelers denied the claim based on its own investigation which concluded the damage was caused by design and construction defects, and therefore excluded from coverage under the insurance policy. Read the court decision
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Reprinted courtesy of Brady Iandiorio
Mr. Iandiorio can be contacted at iandiorio@hhmrlaw.com

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Mexico City Metro Collapse Kills 24 After Neighbors’ Warnings

May 17, 2021 — Max De Haldevang & Maya Averbuch - Bloomberg
The collapse of a long-troubled Mexico City metro track killed 24 people and put two of President Andres Manuel Lopez Obrador’s top allies in the line of fire Monday night, after a decade of safety concerns and probes surrounding the project. About 79 people were injured, Mayor Claudia Sheinbaum said Tuesday. A broken beam led to the incident on the Golden Line of the metro system, she said. An international agency and the attorney general’s office will investigate. Reprinted courtesy of Max De Haldevang, Bloomberg and Maya Averbuch, Bloomberg Read the court decision
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Reprinted courtesy of

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Lease-Leaseback Battle Continues as First District Court of Appeals Sides with Contractor and School District

August 17, 2017 — Garret Murai - California Construction Law Blog
Earlier, we wrote about Davis v. Fresno United School District (2015) 237 Cal.App.4th 261, a Fifth District California Court of Appeals decision that sent shock waves through the school construction industry and raised questions regarding the use of California’s lease-leaseback method of project delivery (Education Code sections 17400 et seq.). California’s lease-leaseback method of project delivery provides an alternative project delivery method for public school districts than the usual design-bid-build method of project delivery. Under the lease-leaseback method of project delivery, a school district leases its property to a developer, who in turn builds a school facility on the property and leases it back to the school district. One of the benefits of the lease-leaseback method of project delivery is that school districts do not need to come up with construction funds to build school facilities since they pay for the construction over time through their lease payments to the developer. Critics, however, argue that because lease-leaseback projects do not need to be competitively bid, they are ripe for cronyism between developers and school districts. In Davis, a taxpayer successfully brought suit against the Fresno Unified School District challenging the propriety of a lease-leaseback project because the entirety of the District’s “lease payments” occurred while the project was being constructed and thus, successfully argued the taxpayer, there was no “true” lease of a facility since it was under construction. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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Tall and Sustainable Is Not an Easy Fix

June 01, 2020 — Christopher G. Hill - Construction Law Musings
Way back in 2009, I discussed the interaction between taller and taller buildings and sustainable (“green”) building. Back then, the reference was to the construction of skyscrapers in the Middle East and Europe. The initially referenced ENR article was written in the context of an urban retrofit of some of Chicago’s taller buildings to make them more sustainable. Just this week, ENR published another article relating to sustainability and super tall buildings. The gist of the article is that while many see taller (rather than wider) as the trend to meld an urban population explosion with more sustainable building practices, this goal is not an easy one to meet. For one, according to the article, energy performance metrics are hard to obtain, both due to the relative newness of these buildings and the seeming reluctance of certain owners to provide the data. Bob Pratt, a managing director in the Shanghai office of developer Tishman Speyer Properties, is quoted in the article, stating

Once we have measuring sticks about performance, we will know what to do” to make buildings sustainable.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrissghill@constructionlawva.com

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