Trial Court's Award of Contractual Fees to Public Adjuster Overturned
June 03, 2019 —
Tred R. Eyerly - Insurance Law HawaiiA judgment awarding the public adjuster his compensation for work performed under contract was remanded for further proceedings by the Hawaii Intermediate Court of Appeals. Joslin v Ota Camp-Makibaka Ass'n, 2019 Haw. App. LEXIS 155 (Haw. Ct. App. April 5, 2019).
A fire destroyed the homeowners' residence on September 19, 2013. The property was subject to the bylaws of the Association of Apartment Owners of Ota Camp. The Association had a policy with Alterra Excess & Surplus Insurance Company and submitted a claim for all units damaged in the fire. The Association's adjuster came the following day to inspect the site.
Separately, Robert Joslin, public adjuster, entered a contract with the homeowners to adjust their claim in exchange for twelve-percent of any insurance proceeds obtained. Over the next several months Joslin pursued insurance proceeds from Alterra on behalf of the homeowners. On December 18, 2013, Joslin filed a complaint with the Insurance Division arguing that Alterra had failed to timely make payments on the claim.
On February 10, 2014, Alterra's third party administrator, Engle Martin & Associates, sent a check to Joslin for $231,940 made out to the Association, the homeowners and Joslin.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Pass-Through Subcontractor Claims, Liquidating Agreements, and Avoiding a Two-Front War
April 26, 2021 —
Bradley Sands, Jones Walker LLP - ConsensusDocsSubcontractor claims happen. When those subcontractor claims are prompted by owner actions or responsibilities, the general contractor must always be vigilant to plan for and work to avoid a two-front war in which the general contractor is pushing the owner for recovery while at the same time disputing the subcontractor’s entitlement.
Cooperation between the general contractor and the subcontractor and avoiding that two-front war can be accomplished through pass-through claims and ideally liquidating agreements. A pass-through claim is a claim by the subcontractor who has suffered damages by the owner with whom it has no contract, presented by the general contractor. A liquidating agreement or subcontract “liquidating language” goes a step further than simply a pass-through claim by “liquidating” the general contractor’s liability for the subcontractor’s claim and limiting the general contractor’s liability to the value recovered against the owner. The distinction between pass-through claims generally and use of liquidating agreements or language is described in greater detail below.
Pass-through subcontractor claims are routine in construction and an important, common sense approach to deal with ever-present changes and the unexpected that can have cost and time implications. Despite the common sense basis for subcontractor pass-through claims, there are important legal considerations that must be addressed, and critical planning required, starting with the subcontract clauses.
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Bradley Sands, Jones Walker LLPMr. Sands may be contacted at
bsands@joneswalker.com
Los Angeles Is Building a Future Where Water Won’t Run Out
February 28, 2022 —
Brian Eckhouse & Laura Bliss - BloombergA helicopter whisks off a rooftop in downtown Los Angeles, climbs above a thin layer of haze and soars over barren mountains past the city’s edge. Soon, scars of climatic stress are evident to L.A. Mayor Eric Garcetti and Martin Adams, general manager and chief engineer of the city’s water and power department, as they peer out the windows. Trees torched years ago by wildfire. Flats parched by sun and little precipitation.
It’s another July scorcher, days after California Governor Gavin Newsom asked residents to conserve amid one of the worst droughts on record. The crisis spans across the southwestern U.S. Outside Las Vegas, the enormous Lake Mead reservoir that feeds the Golden State as well as Nevada and Arizona plunged in June to its lowest level since 1937. In August, federal officials ordered the first-ever water cuts on a Colorado River system that sustains about 40 million people. Even after pounding holiday storms, 64% of the land in Western states was still experiencing severe to exceptional drought in January, which is on track to be the driest on record in some parts.
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Brian Eckhouse, Bloomberg and
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Green Construction Trends Contractors Can Expect in 2019
May 01, 2019 —
Emily Folk - Construction ExecutiveThe construction industry has come a long way since it was started building homes out of logs and sticks. Modern homes and buildings are marvels of engineering filled with wood, concrete and steel—much of which could be recycled if the building were ever torn down. Green construction is a growing field that will continue to expand in the coming year. What green construction trends can we expect to see in the coming year?
Augmented and Virtual Reality
Augmented reality (AR) is growing more popular every year for games and entertainment, but it also has some applications in green construction. AR and virtual reality (VR) programs, either through a headset or on a smartphone, can be used to improve collaboration between companies, allowing each company to see a virtual overlay of their stage of the project.
For green and eco-friendly construction, it can be used to show how a finished product will look on undeveloped land, making it easier to judge the ecological impact of the project. The use of AR and VR in green construction is still in its infancy, though we will likely start to see more of it in 2019.
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Emily Folk, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Doctrine of Avoidable Consequences as Affirmative Defense
January 31, 2018 —
David Adelstein - Florida Construction Legal UpdatesThe doctrine of avoidable consequences is an affirmative defense that can be used in certain property damage lawsuits. This is a defense that does not go to liability, but it goes to damages. This doctrine of avoidable consequences defense holds that a plaintiff cannot recover damages caused by a defendant that the plaintiff could have reasonably avoided . See Media Holdings, LLC v. Orange County, Florida, 43 Fla.L.Weekly D237c (Fla. 5th DCA 2018). Stated differently, if the plaintiff could have reasonably avoided the consequences of the damages caused by the defendant then the plaintiff cannot recover those damages. However, the defendant needs to prove this defense — the burden is on the defendant to establish this defense (ideally through expert testimony).
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Hail Drives Construction Spending in Amarillo
October 25, 2013 —
CDJ STAFFAmarillo had a hailstorm in May and it’s still having an effect on the construction industry there. Prior to the May 28 hailstorm, the city issued 223 permits for roofing projects, worth a total of $1.9 million. But in the four months after the hailstorm, the city issued 13,696 roofing permits worth about $151.4. During the same nine months of 2012, the total was only $6.9 million.
The Amarillo Globe-News reports that there has been a slowing of residential roof work, but the commercial roofing is still going strong. Scott McDonald, an Amarillo building official told the paper that a commercial roof can exceed a million dollars. “The commercial aspect is much more complicated, and we’re just now getting started,” said Mr. McDonald.
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Washington Trial Court Narrows Definition of First Party Claimant, Clarifies Available Causes of Action in Commercial Property Loss Context
January 04, 2021 —
Kathleen A. Nelson & Jonathan R. Missen - Lewis BrisboisThe law in the State of Washington, albeit clear on issues regarding first party claimants, was recently challenged in the matter of Eye Associates Northwest, P.C. v. Sedgwick et. al. However, despite this challenge of first impression, the court limited the application of the term “first party claimant” (a term of art akin to “insured”) based upon the wording of a loss payee clause, as well as taking into consideration and harmonizing the wording of the leases, other provisions in the policy regarding tenant improvements, and the simple fact that Eye Associates was not named in the policy whatsoever.
In Eye Associates, the plaintiff leased office space in a high-rise medical office building, insured by three separate insurance companies. A water loss caused damage to the plaintiff’s leased space, and the plaintiff brought suit against the owner of the building, its insurers, the property manager, a third-party administrator (TPA), and two individual adjusters assigned to inspect and adjust the water loss claim.
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Kathleen A. Nelson, Lewis Brisbois and
Jonathan R. Missen, Lewis Brisbois
Ms. Nelson may be contacted at Kathleen.Nelson@lewisbrisbois.com
Mr. Missen may be contacted at Jonathan.Missen@lewisbrisbois.com
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Construction Law Client Alert: California’s Right to Repair Act (SB 800) Takes Another Hit, Then Fights Back
February 25, 2014 —
Steven M. Cvitanovic and Whitney L. Stefko - Haight Brown & Bonesteel, LLPLast week, the California appellate courts decided two cases with ramifications under the Right to Repair Act. The first case, Burch, addresses whether the Right to Repair Act is the exclusive remedy for the homeowner. The second case, KB Home, addresses a situation where a homeowner or the homeowner's insurer fails to follow the procedures under the Right to Repair Act.
Last August, the Fourth Appellate District announced its decision in Liberty Mutual Ins. Co. v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 98 holding that SB 800 is not a homeowner’s exclusive remedy in situations where defects cause actual damage. Many lawyers believed that Liberty Mutual would be a one-off because of its facts – it was a subrogation case brought by an insurance company. So much for that.
Now the Second Appellate District is getting into the act.
In Burch v. The Superior Court of Los Angeles County, et al., the Second Appellate District overturned an order granting summary adjudication in favor of a developer, general contractor, and their respective owners, in a construction defect action brought by a residential homeowner. The trial court found that the Right to Repair Act precluded the homeowner’s negligence and implied warranty claims but the Court of Appeal reversed.
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Steven M. Cvitanovic, Haight Brown & Bonesteel, LLP and
Whitney L. Stefko, Haight Brown & Bonesteel, LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com, Ms. Stefko may be contacted at wstefko@hbblaw.com
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