Federal Court Strikes Down 'Persuader' Rule
November 23, 2016 —
Pam Hunter McFarland – Engineering News-RecordIn a victory for construction industry groups, a federal court has permanently blocked a U.S. Dept. of Labor rule requiring attorneys and other outside groups to disclose publicly that they provide advice to employers on how to comply with federal labor laws.
Read the court decisionRead the full story...Reprinted courtesy of
Pam Hunter McFarland, Engineering News-RecordMs. McFarland may be contacted at
mcfarlandp@enr.com
"Occurrence" May Include Intentional Acts In Montana
June 22, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe Montana Supreme Court found that policy language defining "accidents may include intentional acts." Employers Mut. Cas. Co. v. Fisher Builders, Inc., 2016 Mont. LEXIS 269 (Mont. Sup. Ct. April 19, 2016).
Jerry and Karen Slack hired Fisher Builders to build a remodeled home located on the site of their home at Flathead Lake. The existing home was an aged vacation home. The County zoning regulations required the remodeled home to incorporate the existing structure. The permit issued to the Slacks required the existing deck to remain unchanged.
Fisher elevated the existing home structure on steel beams to pour a new foundation. Fisher began to dismantle the walls while the structure was resting on the beams, and found an infestation of carpenter ants. The ant-infested planks were cut out, apparently in order to salvage what usable materials he could from the remaining structure. The ant-infested boards were subsequently burned. Eventually, the deck collapsed.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Colorado Homebuyers Must be in Privity of Contract with Developer to Assert Breach of Implied Warranty of Suitability
May 03, 2017 —
Maggie Stewart - Colorado Construction Litigation On April 17, 2017, the Colorado Supreme Court announced its decision in Forest City v. Rogers, No. 15SC1089, 2017 CO 23 (Colo. Apr. 17, 2017). The Court held that privity of contract is necessary for a homebuyer to assert a claim for breach of implied warranty of suitability against a developer. In other words, one must be a party to a contract to pursue a claim for breach of any implied warranty of suitability therein.
Defendant Forest City was the developer of a mixed use property in Stapleton. Forest City subdivided the land and sold the vacant lot at issue to a professional builder, Infinity. Infinity then built a residence and sold it to the plaintiff, Tad Rogers. After moving into the home, Rogers came to believe that the water table beneath the house along with calcite leaching from the road material led to a buildup of calcite in the foundation drain, making the basement uninhabitable and causing the sump pump to work overtime. Rogers sued Forest City on various theories, including breach of the warranty of suitability. In particular, Rogers alleged that Forest City impliedly warranted to him that his lot was suitable for a home with a finished basement, when in fact it was not. He prevailed on this claim at the trial court level.
Read the court decisionRead the full story...Reprinted courtesy of
Maggie Stewart, Higgins, Hopkins, McLain & Roswell, LLCMs. Stewart may be contacted at
stewart@hhmrlaw.com
TxDOT, Flatiron/Dragados Mostly Resolve Bridge Design Dispute
March 13, 2023 —
James Leggate - Engineering News-RecordThe Texas Dept. of Transportation and contractor Flatiron/Dragados LLC have “completely satisfied”
four of the five main design safety concerns the state agency raised over the under-construction new Harbor Bridge in Corpus Christi, officials say.
Reprinted courtesy of
James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of
Insurers May Not Be Required to Defend Contractors In a Florida §558 Proceeding
November 06, 2018 —
Erik Simpson - Gordon & Rees Construction Law BlogIn 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 decisionRead the full story...Reprinted courtesy of
Erik Simpson, Gordon & ReesMr. Simpson may be contacted at
esimpson@grsm.com
Real Estate & Construction News Roundup (6/18/24) – Cannabis’ Effect on Real Estate, AI’s Capabilities for Fund Managers and CRE’s Exposure on Large Banks
July 15, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, hotel-to-apartment conversions take big leap, state governments pass squatting legislation, US regional banks risk having debt ratings downgraded, and more!
- Reclassifying cannabis as a lower-risk substance could bring significant changes to the real estate sector associated with cannabis. (Margaret Jackson, Yahoo)
- More than 60 of the largest banks in the country are at increased risk of failure due to their commercial real estate (CRE) exposures. (Florida Atlantic University).
- As extreme weather grows in frequency and intensity, the nation’s patchwork of building codes have not kept up with modern conditions and if something goes wrong, contractors are not off the hook if they simply build to code. (Julie Strupp, Construction Dive)
Read the court decisionRead the full story...Reprinted courtesy of
Pillsbury's Construction & Real Estate Law Team
Effective Strategies for Reinforcing Safety Into Evolving Design Standards
July 02, 2024 —
Ethan Harris - Construction ExecutiveFrom design/build condos to built-to-suit warehouses, one factor remains the highest priority regardless of the project type—the approach to upholding the highest level of safety. Safety exists as a core value across all areas of the construction industry, but the increased risk of serious injuries or fatalities persists. Ranked fourth on the United States Bureau of Labor Statistics’ list of occupations with the most fatality rates, construction workers put their lives in danger each time they step onto the jobsite.
Considering this risk, it’s important for every team member—from subcontractors to superintendents—to take responsibility for safety compliance, empowering their workforce to take ownership of their own actions and hold others accountable for theirs. To help enhance safety efforts from start to completion, safety leaders are focusing on ways to implement safety standards within each component of a building’s design. Although this approach requires more comprehensive planning and strategizing on the front end, it is intended to reduce and mitigate hazards before they become larger issues. Keeping this idea in mind, here are a few actionable methods for managing projects designed around safety compliance.
ASSESS FIRST
No two jobsites are the same. From crowded pedestrian walkways to dangerous existing infrastructure, each project requires specific layouts, materials and processes to be fully functional both during and after construction. Given the unique nature of each site, a detailed risk assessment must be conducted before any other design and/or building activities begin. During this initial assessment, careful consideration should be placed on the overall flow as it relates to the people, processes and equipment located on or near the construction site.
Reprinted courtesy of
Ethan Harris, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Tenants Underwater: Indiana Court of Appeals Upholds Privity Requirement for Property Damage Claims Against Contractors
April 25, 2022 —
Melissa Kenney - The Subrogation StrategistIn United States Automatic Sprinkler Corp. v. Erie Ins. Exch., et al., No. 21A-CT-580, 2022 Ind. App. LEXIS 87 (Automatic Sprinkler), the Court of Appeals of Indiana (Court of Appeals) considered whether there is a privity requirement for property damage claims against contractors. The court imposed a privity requirement. The court also addressed whether a subrogation waiver in a contract with a tenant applied to damage caused by work done outside the contract, at the landlord’s request. The court held that the waiver did not apply.
In this case, United States Automatic Sprinkler (Automatic Sprinkler) contracted with a tenant (Contract Tenant) to inspect and test a sprinkler system at a commercial building in Indiana. The contract included a waiver of subrogation provision. The building landlord subsequently hired Automatic Sprinkler to repair a leak in the sprinkler system. After completing the repairs, the system failed and flooded the building, causing significant property damage to several tenancies.
Read the court decisionRead the full story...Reprinted courtesy of
Melissa Kenney, White and Williams LLPMs. Kenney may be contacted at
kenneyme@whiteandwilliams.com