Settling with Some, But Not All, of the Defendants in a Construction Defect Case
March 28, 2018 —
David Adelstein – Florida Construction Legal UpdatesConstruction defect lawsuits can be complex multi-party disputes, especially when the plaintiff is doing what is necessary to maximize recovery. This means the plaintiff may sue multiple defendants associated with the defects and damage. For example, the owner (e.g., plaintiff) may sue the contractor, subcontractors, design professionals, etc. due to the magnitude of the damages. In many instances, the plaintiff is suing multiple defendants for overlapping damages. The law prohibits a plaintiff from double-recovering for the same damages prohibiting the windfall of a plaintiff recovering twice for the same damages. Perhaps this sentiment is straight common sense, but this sentiment is a very important consideration when it comes to settling with one or more of the defendants, while potentially trying the construction defect case as to remaining defendants.
Analysis and strategy is involved when settling with some but not all of the defendants in a construction defect case (and, really, for any type of case). Time must be devoted to crafting specific language in the settlement agreements to deal with this issue. Otherwise, the settlement(s) could be
set-off from the damage awarded against the remaining defendants.
The recent decision in
Addison Construction Corp. v. Vecellio, 43 Fla.L.Weekly D625(a) (Fla. 4th DCA 2018) details the analysis and strategy required when settling with some but not all of the defendants in a construction defect case, and the concern associated with a trial court setting-off the settlement amount from the damage awarded against the remaining defendants.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com
TOP TAKE-AWAY SERIES: The 2023 Fall Meeting in Washington, D.C.
November 13, 2023 —
Marissa L. Downs & Jennifer M. Kanady - The Dispute ResolverOver 500 construction lawyers, experts, and consultants descended on Washington last week for the Forum’s 2023 Fall Meeting. Newly minted Forum Chair John Cook and Program Coordinators Catherine Delorey and Brian Zimmerman put together a stellar program focused on navigating government construction. For this installation of the post-meeting post, I'm teaming up with guest contributor, Jennifer Kanady, to bring you 10 of our top take-aways from this unique program.
10. Contracting with the government is replete with risk that could easily trap the unwary. Nobody likes to be taken advantage of. But hell hath no fury like the U.S. Government scorned. Erin Cannon-Wells and Aaron Silberman, gave a (truly) delightful, Indiana-Jones-inspired presentation on the regulations that can doom the unwitting contractor who is less than perfectly forthright in its dealings. The government has created financial incentives for members of the public to report your company’s violations as part of a qui tam action. When you consider the number of potential whistleblowers in the bidding process and the contracting chain, a qui tam action would seem more likely than not. Add to that the sanctions contractors might face for even innocent errors either by their own companies or their downstream subs, and government contracting begins to sound increasingly like the Temple of Doom. Oh, and in case you were only focused on affirmative claims, beware the “reverse false claim” which is concealing information that would rightfully entitle the government to a credit…
Reprinted courtesy of
Marissa L. Downs, Laurie & Brennan, LLP and
Jennifer M. Kanady, FAC Services, LLC
Ms. Downs may be contacted at mdowns@lauriebrennan.com
Ms. Kanady may be contacted at JKanady@facfin.com
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Energy Company Covered for Business Interruption Losses Caused by Fire and Resulting in Town-Ordered Shutdown
February 15, 2021 —
David G. Jordan - Saxe Doernberger & Vita, P.C.In the case of NextSun Energy Littleton, LLC v. Acadia Ins. Co., the United States District Court of Massachusetts held that once direct physical damage from a covered peril causes a covered business interruption loss, any increase in the duration of such business interruption, due to the enforcement of an ordinance or law, extends the coverage period provided for lost income. The Court further held that a policy exclusion for business interruption due to the enforcement of any ordinance or law not in force at the time of the loss only applies when the ordinance or law itself, not the enforcement action that it authorizes, was not in force at the time of the loss.
The case involved a solar panel company, NextSun Energy Littleton (NextSun), that operated solar panel arrays providing electricity to the town of Littleton, Massachusetts. Due to a fire, 88 of the solar panels were damaged, and the Town immediately issued a “red-tag” order halting all energy-generating activity pending a safety inspection. The plaintiff purchased insurance for its panels along with “Energy Generating Income” (EGI) coverage, from the defendant, Acadia Ins. Co. (Acadia). The EGI policy covered “direct physical loss or damage” to “renewable energy generating equipment” and also covered the actual loss of surplus power income incurred during the interruption period. However, it excluded interruption of energy-generating income “caused by the enforcement of any ordinance, law, or decree … not in force at the time of loss.”
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David G. Jordan, Saxe Doernberger & VitaMr. Jordan may be contacted at
DJordan@sdvlaw.com
Chinese Billionaire Sues Local Governments Over Project Payment
January 28, 2015 —
Bloomberg NewsThe billionaire founder of closely held China Pacific Construction Group sued six local governments in a bid to force payment of 900 million yuan ($144 million) his company is owed for infrastructure projects.
Yan Jiehe said today he was trying to prove a point and winning the lawsuits wasn’t his main goal. Courts in Hebei, Yunnan, Guizhou, Hunan and Shandong provinces accepted the cases, he said in an interview.
“We cannot let the governments work without any supervision anymore,” Yan said. “The results of the lawsuits are not that important to me and I care more about rule of law.”
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Bloomberg News
Defend Trade Secret Act of 2016–-Federalizing Trade Secret Law
October 07, 2016 —
Erin M. Stines and Reed Cahill - Ahlers & Cressman PLLCThe Defend Trade Secret Act of 2016 (DTSA) was signed into law on May 11, 2016, and became effective immediately. The DTSA allows an owner of a trade secret to sue in federal court for trade secret misappropriation. Previously, only state law governed civil misappropriation of trade secrets. While the DTSA largely mirrors the current state of the law under the Uniform Trade Secrets Act (UTSA), adopted by 48 states, including Washington,[1] there are some additions found in the new law.
The DTSA imposes the same three-year statute of limitations and authorizes remedies similar to those provided under the UTSA. The DTSA also offers new forms of relief, including a provision permitting ex parte seizure orders (that is, without a hearing or response from the opposing party) to prevent further misappropriation of the trade secret. The DTSA further provides for a new definition of trade secret. The UTSA's definition of a trade secret is a “formula, pattern, compilation, program, device, method, technique, or process.” Under the DTSA, the definition of a “trade secret” is broadened to include “all forms and types of financial, business, scientific, technical, economic, or engineering information...whether tangible or intangible...” [2]
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Erin M. Stines & Reed Cahill, Ahlers & Cressman PLLCMs. Stines may be contacted at
erin.stines@ac-lawyers.com
Florida Construction Defect Decision Part of Lengthy Evolution
August 05, 2013 —
CDJ STAFFLawyers are still working out all the implications of Florida Supreme Court’s ruling in Maronda Homes. Three members of the firm Lowndes, Drosdick, Doster, Kantor & Reed PA, Alexander Dobrev, Michael S. Provenzale, and Tara L. Tedrow on the firm’s web site. They characterize it as a “consumer-protection oriented decision,” quoting the court that the “house is the fondest dream and largest investment, both emotionally and financially, for Florida families.”
The court found that Section 553.835 of the Florida laws could not be applied to construction that occurred before the statute become effective in July, 2012. They describe the underlying issue as “the culmination of forty years of evolution to the implied warranty of habitability that is granted by the builder of a new home to the purchaser.” This lead to a 2010 District Court decision that expanded the area covered from “merely the structure itself, along with improvements ‘immediately supporting the residence’” but also those “which provide ‘essential services’ which support the home, make it habitable, or are necessary for living accommodations.”
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Chicago Criticized for Not Maintaining Elevator Inspections
October 29, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Crain’s Chicago Business, “as few as a fifth of elevators get the required annual checkup,” Chicago Inspector General Joe Ferguson claimed.
Ferguson audited the roughly 5,100 buildings that city inspectors were assigned to inspect elevators, and found that only 965 were actually inspected, reported Crain’s Chicago Business. Furthermore, “when problems were found in inspections conducted by city personnel, they often were not fixed in a timely manner, again according to city records.”
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Property Damage to Insured's Own Work is Not Covered
May 27, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe Michigan Court of Appeals found there was no coverage for a lawsuit filed against the insureds for faulty workmanship. Skanska United States Bldg. v M.A.P. Mech. Contrs., 2019 Mich App. LEXIS 529 (Mich. Ct. App. March 19, 2019).
Contractor Skanska United States Building was the construction manager on a renovation project for the medical center. The heating and cooling portion of the project was subcontracted to M.A.P. Mechanical Contractors (MAP). MAP had a CGL policy from Amerisure Insurance Company. Skanska and the medical center were named as additional insureds on the policy.
After installation of the steam boiler and related piping, it was discovered that the heating system did not function property. Skanska discovered that MAP had installed some of the expansion joints backward, causing damage to concrete, steel, and heating system. The medical center sent a demand to MAP. Skanska performed the repairs and replaced the damaged property. Skanska then submitted a claim to Amerisure, which was denied.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com