It’s a Jolly Time of the Year: 5 Tips for Dealing with Construction Labor Issues During the Holidays
December 18, 2022 —
Matthew DeVries - Best Practices Construction LawIt’s that time of year again – the holiday season is upon us, and for those in the construction industry, that can mean a few extra challenges when it comes to maintaining efficiency on the job site.
Here are five best practices for dealing with labor during the holiday season:
- Communicate early and often: Make sure to clearly communicate any changes to the schedule or workload to your team as early as possible. This will give them time to plan and prepare, and help prevent any potential issues from arising.
- Offer incentives: Consider offering incentives to encourage your team to stay focused and productive during the holiday season. This could be something as simple as a bonus or extra time off, or something more creative like a gift card or other prize.
- Stay organized: The holiday season can be a busy time, so it’s important to stay organized and on top of your schedule. This means keeping track of deadlines, delegating tasks effectively, and staying in close communication with your team.
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Matthew DeVries, Burr & Forman LLPMr. DeVries may be contacted at
mdevries@burr.com
CA Supreme Court Finds “Consent-to-Assignment” Clauses Unenforceable After Loss Occurs During the Policy Period
August 26, 2015 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Fluor Corporation v. Superior Court (No. S205889; filed 8/20/15), the California Supreme Court overruled its earlier decision in Henkel Corp. v. Hartford Accident & Indemnity Co. (2003) 29 Cal.4th 934, holding that notwithstanding the presence of a consent-to-assignment clause in a liability policy, Insurance Code section 520 bars an insurer from refusing to honor the insured’s assignment of coverage after a loss has taken place during the policy period.
In Henkel, the Supreme Court limited the ability of corporate successors to obtain coverage under predecessors’ policies on a contract theory. The Henkel Court held that where a successor corporation contractually assumed liabilities of the predecessor corporation, the insurance benefits would not automatically follow. The Henkel Court ruled that if the predecessor company’s policy contains a consent-to-assignment clause, any assignment of insurance policy benefits to a successor corporation required the insurer’s consent. The Court said that policy benefits are not transferable choses in action unless at the time of corporate transfer they could be reduced to a monetary sum certain. The Court reasoned that historic product or environmental liabilities might not even be known to the predecessor at that time, much less reduced to a sum certain, so coverage for such risks could not be considered a transferable chose in action. Thus, where the liability was inchoate at the time of the corporate transaction, the Henkel Court said that coverage would not necessarily follow because the insurer’s duties had not yet attached.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com; Ms. Moore may be contacted at vmoore@hbblaw.com
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Just How Climate-Friendly Are Timber Buildings? It’s Complicated
February 12, 2024 —
Eric Roston - BloombergThis article is part of the Bloomberg Green series Timber Town, which looks at the global rise of timber as a low-carbon building material.
The number of people living in urban areas around the world
will swell by upwards of 2 billion over the next three decades. Many of those people will need new homes. But building those with conventional materials would unleash a gusher of carbon dioxide: Concrete, steel, glass and bricks for construction make up a combined
9% of global CO2 emissions, according to research by the United Nations Environment Program.
Enter engineered wood, a seemingly no-brainer solution.
Mass timber is not the typical lumber that has structured single-family houses in North America for decades. The wood components are strong enough to hold up an office tower or apartment block, and building with them is thought to emit much less CO2 than using standard materials. And since wood is about 50% carbon, the material itself even stores a little carbon, to boot.
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Eric Roston, Bloomberg
Risk Transfer: The Souffle of Construction Litigation
December 13, 2022 —
Alexa Stephenson & Ivette Kincaid - Kahana FeldWho does not love a good souffle?! Enthusiasts will know that a great souffle is not something you can obtain quickly. Rather, it is common in restaurants to order the souffle as dessert at the beginning of the meal because it takes an hour to bake. Risk transfer – like a good souffle – also requires planning, preparation, and the right ingredients.
In construction litigation, attorneys are often not retained until after the project has been completed for several years as the dispute between the homeowner and the general contractor or developer took time to escalate to formal litigation. A significant part of defense counsel’s legal analysis involves assessing and evaluating risk transfer opportunities. For example, in the case of a general contractor or developer who did not self-perform the construction work but instead retained subcontractors to do so, counsel will assess if risk can be transferred from the general contractor or developer to the subcontractors who performed the work which the homeowners allege is defective. In other words, a developer or general contractor can reduce their risk (i.e. liability and money owed) by transferring said risk (i.e. pointing the finger at) to a third party.
Sounds easy, right? Unfortunately, just like the souffle making process, it is easier said than done. This task can be exceedingly difficult in the absence of contracts that contain strong indemnity and insurance provisions – the essential ingredients to effect risk transfer. Worry not! We have provided “baking” instructions for you below to help you get a great risk transfer souffle time and again.
Reprinted courtesy of
Alexa Stephenson, Kahana Feld and
Ivette Kincaid, Kahana Feld
Ms. Stephenson may be contacted at astephenson@kahanafeld.com
Ms. Kincaid may be contacted at ikincaid@kahanafeld.com
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White and Williams Announces Lawyer Promotions
May 25, 2020 —
White and Williams LLPWhite and Williams is pleased to announce the election of Vincent Barbera and James Burger to the partnership. The firm has also promoted Victoria Fuller, Phyllis Ingram, William Johnston, Eric Porter, Gus Sara, Jenifer Scarcella, Lian Skaf and Brett Tishler from associate to counsel.
The newly elected partners and promoted counsel represent the wide array of practices that White and Williams offers its clients, including education, finance, financial lines, insurance coverage, labor and employment, litigation, real estate, and subrogation. These accomplished lawyers have earned this advancement based on their contributions to the firm and their practices.
“We are pleased to elect these two lawyers to the partnership and promote eight exceptional associates to counsel. The group demonstrates the legal talent and breadth of services White and Williams offers clients,” said Patti Santelle, Managing Partner of the firm. “The contributions of these lawyers have enhanced the growth and reputation of our firm and reflect our deep commitment to clients. We look forward to their continued success.”
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White and Williams LLP
Construction Insurance Costs for New York Schools is Going Up
December 11, 2013 —
CDJ STAFFThe cost of construction insurance for New York City’s School Construction Authority is about to go up and the city’s scaffold law is to blame. As the cost of possible injuries has gone up, so has the cost of covering the insurance. The SCA’s current policy ends at the end of the year, and it’s expected that its insurance costs will triple, with the next two years costing about $650 million. The rising cost of insurance was compared by authority officials to the cost of 10 new schools.
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Be Careful How You Terminate: Terminating for Convenience May Limit Your Future Rights
January 19, 2017 —
Brett M. Hill - Ahlers & Cressman, PLLC BlogMany construction contracts contain a termination clause that allows a contractor to be terminated either for convenience or for cause. Termination for convenience and termination for cause clauses have been discussed previously on the blog
here,
here and
here. The distinction between a termination for convenience or for cause is an important one.
If a contractor is terminated for convenience, the rights of the party who has terminated the contractor for convenience could be limited in the future. This is specifically true as to any defects in the terminated contractor’s work that are discovered after the termination for convenience.
This issue was addressed in an Oregon Court of Appeals case where a general contractor attempted to recover costs incurred in correcting a terminated subcontractor’s work after the subcontractor was terminated for convenience. Shelter Prods. v. Steel Wood Constr., Inc., 257 Or. App 382 (2013). In that case, the subcontractor sued the general contractor for its termination expenses. The general contractor asserted an offset/backcharge claim for damages incurred by the general contractor in correcting the subcontractor’s defective work. The general contractor had incurred the costs after it had terminated the subcontractor. The general contractor did not notify the subcontractor that its work was defective and did not give the subcontractor an opportunity to cure before the repairs were completed.
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Brett M. Hill, Ahlers & Cressman, PLLCMr. Hill may be contacted at
bhill@ac-lawyers.com
Chinese Drywall Manufacturer Claims Product Was Not for American Market
October 22, 2013 —
CDJ STAFFTaishan Gypsum Co. Ltd. Claimed in a hearing at the Fifth Circuit Court of Appeals that when they sold about $8.5 million of contaminated drywall to Venture Supply Inc. of Virginia, that they had no awareness that the drywall would be sold in the United States. Joe Cyr, an attorney for Taisan told the court that “Venture Supply never said it was going to distribute the goods in Virginia.”
One of the judges on the three-judge panel, Judge Jennifer Walker Elrod, was skeptical of Taishan’s claim, asking, “it was packed and labeled for the Virginia market, isn’t that correct?” When asked by a judge if Taishan was trying to avoid accountability, Cyr said that Tiashan “has not said that it doesn’t want to be accountable for its drywall.” Taishan holds the position that claims against it should be arbitrated in the People’s Republic of China.
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