Can Businesses Resolve Construction Disputes Outside of Court?
August 19, 2024 —
Scott L. Baker - Los Angeles Litigation BlogTime is of the essence in any construction project. So, if a dispute arises at any point, business owners generally wish to avoid the chance of a time-consuming case going to court.
Can California construction businesses
manage these disputes effectively outside of court? It is possible in some cases. Business owners should carefully consider these three steps.
1. Go Back to the Contract
Even if the contract is at the center of the dispute, it is important to refer to any details regarding dispute resolution included within the document. It is common for contracts to have some form of a dispute resolution clause. In such a case, both parties should follow the steps outlined in that agreement.
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Scott L. Baker, Baker & AssociatesMr. Baker may be contacted at
slb@bakerslaw.com
2025 Construction Law Update
January 07, 2025 —
Garret Murai - California Construction Law BlogIt’s that time of year again.
The second half of the 2023-2024 legislative session saw the introduction of 2,124 bills, of which, 1418 were signed into law. Among the bills signed by the governor impacting contractors is an increase in the small work licensing exemption for $500 to $1,000, the licensing of Indian tribes by the CSLB, and a number of project-specific bills, as is typical, related to project-specific alternative project delivery methods.
Wishing you and yours a great 2025!
Licensing
AB 2622 – Increases the small work licensing exemption from $500 to $1,000 provided that the work: (1) does not require a building permit; and (2) does not involve the employment of others to perform or assist in the work.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Providence Partner Monica R. Nelson Helps Union Carbide Secure Defense Verdict in 1st Rhode Island Asbestos Trial in Nearly 40 Years
December 31, 2024 —
Lewis Brisbois NewsroomProvidence, R.I. (November 22, 2024) - On November 21, 2024, a Providence County jury returned a unanimous defense verdict for Union Carbide Corporation after a nine-day trial presided over by Associate Justice Richard A. Licht. Tim McGowan of Kelley Jasons McGowan Spinelli Hanna & Reber LLP, Eric Cook of Willcox Savage, and Monica R. Nelson of Lewis Brisbois Bisgaard & Smith LLP represented Union Carbide at trial. Elliott Davis of Shook Hardy & Bacon was Union Carbide’s appellate counsel.
The plaintiffs’ lawyers, Vincent L. Greene IV, Nathan D. Finch, and Ashley Hornstein of Motley Rice LLC, represented the family of Mrs. Bonnie Bonito in the first asbestos matter to go to trial in Rhode Island in close to 40 years and requested nearly $25 million in compensatory damages for the death of Mrs. Bonito from her alleged exposure to Union Carbide’s asbestos, among many other asbestos-containing products, through the work clothes of her husband. The plaintiffs’ proffered theory of liability against Union Carbide Corporation is known as a “take-home” exposure claim.
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Lewis Brisbois
Boston Team Secures Summary Judgment Dismissal on Client’s Behalf in Serious Personal Injury Case
October 21, 2024 —
Lewis Brisbois NewsroomBoston, Mass. (October 14, 2024) - Boston Managing Partner Kenneth B. Walton and Partner Matthew M. O' Leary recently secured summary judgment on behalf of a civil engineering firm in a serious personal injury matter arising from a trip-and-fall incident in a mall parking lot.
The client was retained to provide site civil engineering design for the parking lot of a local mall. The design included multiple bioretention areas known as rain gardens. In November of 2019, a woman tripped and fell while attempting to cross a rain garden to reach her car. She suffered significant bodily injuries, including a fracture of the cervical spine that resulted in partial paralysis.
The woman and her husband sued the mall's owner for negligence and loss of consortium in June 2021. The owner, in turn, impleaded Lewis Brisbois' client and the lot's builder, asserting third-party claims for contribution, contractual and common law indemnity, and breach of contract. In addition, the builder cross-claimed against Lewis Brisbois' client for contribution and common law indemnity.
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Lewis Brisbois
A Place to Study Eternity: Building the Giant Magellan Telescope
October 15, 2024 —
Jeff Rubenstone - Engineering News-RecordSituated on a remote mountaintop in the Atacama Desert in Chile, the Giant Magellan Telescope will one day allow astronomers to peer further into the universe with a greater degree of clarity than ever before. But siting a highly sensitive instrument with seven massive, 8.4-meter-dia mirrors on a windy peak in one of the world’s most seismically active regions takes careful engineering, especially since the 12-story upper section of the 22-story telescope enclosure will have to rotate 360° with an extreme degree of precision, multiple times a night.
Reprinted courtesy of
Jeff Rubenstone, Engineering News-Record
Mr. Rubenstone may be contacted at rubenstonej@enr.com
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Water Alone is Not Property Damage under a CGL policy in Connecticut
July 22, 2024 —
Bill Wilson - Construction Law ZoneThe Connecticut Appellate Court recently provided guidance on what does not constitute property damage under a typical contractor’s Commercial General Liability (CGL) insurance policy in Westchester Modular Homes of Fairfield County, Inc. v. Arbella Protection Ins. Co., 224 Conn App. 526 (2024). In this case, the contractor defended construction defect claims brought by an owner and then sued its insurer to recover $500,000 in defense costs for failing to provide a defense under the contractor’s policy. In Connecticut, an insurer is obligated to provide a defense based on what is alleged in a complaint and if it has actual knowledge of any facts establishing a reasonable possibility of coverage. The contractor provided extrinsic evidence for two defects claimed by the owner: (1) windows were installed improperly such that water was collecting and will continue to collect in the window soffit areas and eventually rot the wall, and (2) the vapor barrier was not installed in the second-floor ceiling which will result in water condensation and water damage to the roof structure if not remedied.
The insurer relied on typical provisions included in most CGL policies. The insurer has no duty to defend the insured against any suit seeking damages for property damage to which the insurance does not apply. The term “property damage” is defined as “physical injury to tangible property, including all resulting loss of use of that property.” Under well-established Connecticut law, the phrase “physical injury” unambiguously connotes damage to tangible property, causing an alteration in appearance, shape, color, or some other material dimension. It is also well-established that claims for property damage caused by defective work are covered under a CGL policy but claims for repair of the defective work itself are not. The insurer denied any duty to defend because no coverage was triggered under the liability policy. Both parties moved for summary judgment.
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Bill Wilson, Robinson & Cole LLPMr. Wilson may be contacted at
wwilson@rc.com
Is the Construction Industry Actually a Technology Hotbed?
August 19, 2024 —
Andrew Silver - Construction ExecutiveTechnology has always been a driving force behind progress, and the construction industry is no exception. Over the years, technological advancements have revolutionized the way companies design, plan and build structures, leading to increased efficiency, safety and sustainability. From virtual-reality simulations to drones and 3D printing, technology has transformed every aspect of the construction process. However, the construction trades still lag behind other sectors in adoption of digital technologies. With a lack of skilled labor continuing to be an impediment to growth and profitability in the construction industry, technological developments could have significant implications for successful adopters.
Already, the industry is seeing a huge difference in valuation between traditional engineering and construction firms and construction software companies. As labor shortages continue to hinder growth in the industry, consolidation is likely, as is the probability that companies with the greatest tech capabilities will be the most highly valued. There are several areas of technology that are of the greatest interest in the current marketplace.
BIM
Building information modeling with computer-aided design software now allows architects and engineers to create detailed and accurate 3D models of buildings and infrastructure projects, integrating data about every aspect of the building, from materials and costs to energy efficiency and maintenance schedules. These models not only help in visualizing the final product; they also enable better communication and collaboration among project stakeholders.
Reprinted courtesy of
Andrew Silver, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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“It Just Didn’t Add Up!”
November 05, 2024 —
Daniel Lund III - LexologyOverturning arbitration awards in court is difficult. One of the few bases for a challenge to an award (under the Federal Arbitration Act, 9 U.S.C. 10(a)(4), as well as most state arbitration laws) is where the arbitrator is alleged to have “exceeded [his/her] powers” afforded the arbitrator by whatever rules and agreements are in place for the arbitration. Obviously, this places a burden on the arbitrator to “color within the lines” when serving as arbitrator and issuing rulings in the case.
“After extensive discovery and a 10-day hearing, the Tribunal rendered a 142-page” award, whereupon the parties both sought to have the arbitrators correct what the parties agreed was an error in the award – increasing the award by $47,710. One of the parties, however, went further, urging that the arbitrators “erroneously included damages for claims related to production revenue” that occurred before a certain date. According to the court, that party was urging that “the Tribunal erred by factoring into its award damages related to Claims 2 and 3, which the Tribunal never substantially addressed.”
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com