Sinking S.F. Tower Prompts More Lawsuits
January 19, 2017 —
JT Long - Engineering News-RecordHomeowners on Jan. 6 added another lawsuit to the list pending against Millennium Partners, developer of the 645-ft-tall Millennium Tower, located in San Francisco’s South-of-Market district. The suit alleges that, as early as 2009, the developers knew the $350-million condo building was sinking faster than expected.
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JT Long, ENRENR may be contacted at
ENR.com@bnpmedia.com
Curtain Wall Suppliers Claim Rival Duplicated Unique System
February 28, 2022 —
Annemarie Mannion - Engineering News-RecordChicago-area construction material suppliers that hold patents for a curtain wall system used in high-rise construction projects are suing a rival, claiming it created a knock-off of the system based on a former employee’s knowledge and put the system to use on construction projects.
Reprinted courtesy of
Annemarie Mannion, Engineering News-Record
ENR may be contacted at enr@enr.com
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PFAS and the Challenge of Cleaning Up “Forever”
July 31, 2023 —
PFAS Team - Gravel2Gavel Construction & Real Estate Law BlogFrom a stream of legal challenges, to ever-expanding regulations on things like cosmetics and drinking water, PFAS are the “forever chemicals” keeping companies and consumers on high alert. While industries scramble to remove the synthetic compounds from products, scientists are researching new techniques for scrubbing PFAS from the environment. There is money to be had for those who can find a more streamlined method of purging the substances—the U.S. Army Corps of Engineers has an $800 million contract on the table for the handling, destruction and replacement of PFAS-laden fire-fighting foam—leaving technology companies racing to create solutions. The three main PFAS cleaning techniques currently relied upon can be very effective but are also costly and may leave questionable byproducts in their wake.
The established approaches include:
- Granular Activated Carbon. As one of the most studied treatments for PFAS removal, granular activated carbon is often used in water treatment plants. Large beds of carbon essentially soak up the unwanted chemicals. After the Sweeney Water Plant in North Carolina, whose water source is downstream from a fluorochemical-producing Chemours plant, was found to be contaminated with PFAS, the plant invested around $46 million into upgraded activated carbon systems. Once installed, these systems cost roughly $2.9 million to operate yearly, as the carbon needs to be replaced each time it reaches capacity. Though pricey, the plant says that the process now clears close to 100% of PFAS.
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PFAS Team, Pillsbury
Oklahoma Finds Policy Can Be Assigned Post-Loss
April 26, 2021 —
Tred R. Eyerly - Insurance Law HawaiiOklahoma joined the majority of court in finding that after a loss occurs, the insured can assign the policy to another. Johnson v. CSAA Gen. Ins. Co., 2020 Okla LEXIS 118 (Okla. Dec. 15, 2020).
Johnson's property was damaged in a storm. She filed a claim with her insurer. She also executed an assignment of her claim in order to repair the property with the execution of assignment to Triple Diamond Construction LLC. An appraiser retained by Triple Diamond determined the storm damage was $36,346.06. The insurer paid only $21,725.36 for the loss.
Johnson and Triple Diamond sued the insurer for breach of contract, seeking $14,620.70, not inclusive of interest, attorneys' fees and costs. The insurer filed a motion to dismiss, or an alternative motion for summary judgment to dismiss Triple Diamond as a party. The insurer argued that both the policy and an Oklahoma statute barred the assignment. The district court granted the insurer's motion.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
So, You Have a Judgment Against a California Contractor or Subcontractor. What Next? How Can I Enforce Payment?
May 04, 2020 —
William L. Porter - Porter Law GroupThe Contractors’ State License Board (“CSLB”) represents the interests of the public in California construction matters. In the field of California construction, the CSLB is all powerful. The agency has the right to suspend the license of any contractor or subcontractor who does not pay on a construction related judgment against it. If you are successful in obtaining a court judgment against a contractor or a subcontractor in a construction-related case, you can utilize the services of the CSLB to suspend the contractors’ license of that contractor or subcontractor until the judgment has been paid. Once the license is suspended, the contractor or subcontractor has no legal right to work as a contractor or subcontractor and can even be arrested for doing so. Details on using the CSLB to suspend the license of a contractor or subcontractor who has a construction-related judgment against it can be accessed at this particular CSLB link:
CSLB – Judgment.
On receipt of notice of the construction-related judgment, the CSLB will either suspend the contractors’ license of any contractor or subcontractor who does not pay on the judgment or who does not appeal the judgment to the Court of Appeals or file bankruptcy within 90 days. There also exists an opportunity for the licensed debtor to file a bond with the CSLB. The bond will either have to be renewed annually or the judgment paid, whichever comes first.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
“Rip and Tear” Damage Remains Covered Under CGL Policy as “Accident”—for Now.
September 01, 2016 —
Michael Lindsay & Luke Mecklenburg – Snell & Wilmer Real Estate Litigation BlogThe Colorado Supreme Court has approved a settlement between the parties to an appeal of the 2012 Colorado Pool Systems v. Scottsdale Insurance Company Court of Appeals case, leaving that ruling intact. The ruling parses a fine line between uncovered costs of repairing defective work and covered costs of damage caused to nondefective work while repairing defective work. This nuanced opinion, which is now established Colorado law, is worth a second look.
In Colorado Pool Systems, Inc. v. Scottsdale Insurance Company, the Colorado Court of Appeals determined that so-called “rip and tear” damage caused by a construction professional to nondefective work while correcting defective work is covered as an “accident” under standard Commercial General Liability insurance language. 317 P.3d 1262 (Colo. App. 2012). A pool company excavated and built a rebar frame in order to construct a pool, but it hired a subcontractor to pour the concrete. An inspector later noticed that some of the rebar was too close to the surface, and the pool company agreed to demolish and replace the pool after an agent of its insurer represented that this loss would be covered. But the agent was wrong, the insurer denied coverage, and litigation ensued.
Reprinted courtesy of
Michael Lindsay, Snell & Wilmer and
Luke Mecklenburg, Snell & Wilmer
Mr. Lindsay may be contacted at mlindsay@swlaw.com
Mr. Mecklenburg may be contacted at lmecklenburg@swlaw.com
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Top Five Legal Mistakes in Construction
April 04, 2022 —
Jonathan A. Cass, Nicholas F. Morello & John A. Greenhall - Construction ExecutiveMany contractors repeatedly make the same mistakes in negotiating contracts. Here are the most common mistakes contractors make—and how they can be avoided.
1. Not Being Careful With Force Majeure Clauses
To protect themselves from liability in the event of unforeseen circumstances like fires, floods, wars, unusual delays in deliveries, strikes, pandemics or acts of God, contractors should ensure their contracts contain robust force majeure provisions. These provisions state that in the event of any extenuating circumstances outside of its control, the contractor is not liable for any damages that result from a delay to the project completion date and is entitled to a time extension. This clause has been critical in addressing COVID-19-related disruptions and the current material shortages. Contractors should be wary, however, of “no damage-for-delay” language, which often appears in conjunction with these clauses.
Reprinted courtesy of
Jonathan A. Cass, Nicholas F. Morello and John A. Greenhall, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Cass may be contacted at jcass@cohenseglias.com
Mr. Greenhall may be contacted at jgreenhall@cohenseglias.com
Mr. Morello may be contacted at nmorello@cohenseglias.com
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Illinois Favors Finding Construction Defects as an Occurrence
September 23, 2019 —
Ashley L. Cooper - SDV InsightsA recent Illinois Appellate Court’s decision in, Acuity Ins. Co. v. 950 West Huron Condominium Owners Association, 2019 IL App (1st) 180743 (2019), strengthens Illinois’ precedent favoring construction defects as an occurrence under a Commercial General Liability (“CGL”) insurance policy. Acuity also broadens an insurance carrier’s obligation to defend its insured against construction defect allegations.
In Acuity, the court determined whether claims for construction defect filed against a subcontractor, triggered a duty to defend under a CGL policy. To make its determination, the court focused on the subcontractor’s scope of work. The court notes that a subcontractor normally contracts for a discrete scope of work on a project. Unlike a general contractor, who has control over or contractual obligations for all aspects of the project, a subcontractor does not have those board responsibilities. The court explained that “[f]rom the eyes of the subcontractor, the ‘project’ is limited to the scope of its own work, and the precise nature of any damage that might occur to something outside of that scope is as unknown or unforeseeable as damage to something entirely outside of the construction project.”
Accordingly, the court in Acuity held that when a complaint alleges that a subcontractor’s negligence caused damage to a part of the construction project outside of the subcontractor’s scope of work, the allegations are enough to trigger the insurer’s duty to defend the subcontractor under a CGL policy. The court’s decision in Acuity relied on a similar Illinois Appellate Court decision, Milwaukee Mut. Ins. Co. v. J.P. Larsen, Inc., 956 N.E.2d 524 (Ill. App. 2011). In Larsen, the court reached a similar conclusion where a third-party complaint by a general contractor against a subcontractor alleged that the subcontractor’s improper window caulking caused water intrusion and property damage to other parts of the building. The court in Larsen held that because the complaint alleged not only construction defects, but also damage to other property outside the subcontractor’s scope of work, the insurer had a duty to defend the subcontractor.
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Ashley L. Cooper, Saxe Doernberger & Vita, P.C.Ms. Cooper may be contacted at
alc@sdvlaw.com