What You Need to Know to Protect the Project Against Defect Claims
October 28, 2024 —
Scott L. Baker - Los Angeles Litigation BlogIf a property owner claims there is a construction defect, that not only brings the project’s integrity into question but also your business’s reputation. So, how can you take steps to prevent these claims from causing such damage?
Here are three things to know before beginning a project to effectively protect it and
manage construction defect claims.
1. Documentation is key
California and Los Angeles County require certain permits and documents in order for a construction project to move forward. Los Angeles County
will also conduct plan checks to ensure everything is up to code. Detailed documentation will be important while making your plans.
However, keeping notes throughout every step of the project will also be essential. Documenting all aspects of the project helps you:
- Stay updated and aware of the project’s progress
- Proactively catch and handle issues that could result in disputes
- Create a record of evidence that can help manage defect claims
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Scott L. Baker, Baker & AssociatesMr. Baker may be contacted at
slb@bakerslaw.com
Supreme Court Eliminates Judicial 'Chevron' Deference to Federal Agency Statutory Interpretations
July 31, 2024 —
Jane C. Luxton - Lewis BrisboisWashington, D.C. (July 1, 2024) – In a much-anticipated decision, on June 28, 2024, the Supreme Court issued a sweeping opinion “overrul[ing]” a 40-year old precedent that required judges to defer to federal agency interpretations of their governing statutes when those laws were ambiguous or silent. Loper Bright Enterprises v. Raimondo, et al. No. 22-451 (2024), overruling Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984).
The decision means that courts will no longer give special weight to an agency’s view of the scope of its regulatory powers but must apply independent judgment in deciding “whether an agency has acted within its statutory authority.” Loper Bright, slip op. at 35. Taking pains to explain that the new ruling would not allow for reversals of cases previously decided under the Chevron doctrine, the Court left no doubt that, in the words of Justice Neil Gorsuch, “[t]oday, the Court places a tombstone on Chevron no one can miss.” Id., Gorsuch Concurring Opinion at 1.
Writing for a 6-2 majority, Chief Justice Roberts forcefully condemned the Chevron-based principle that courts should defer to a federal agency’s interpretation of the scope of its legal authority, rejecting the concept that agencies have any special expertise in statutory interpretation, a field reserved to the courts, not the executive branch, under Article III of the Constitution and the Administrative Procedure Act, 5 U.S.C. § 551 et seq.
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Jane C. Luxton, Lewis BrisboisMs. Luxton may be contacted at
Jane.Luxton@lewisbrisbois.com
GRSM Attorneys Selected to 2024 Super Lawyers and Rising Stars Lists
January 14, 2025 —
Gordon Rees Scully MansukhaniSuper Lawyers® has released its 2024 attorney lists across various regions of the United States. This year, 169 Gordon Rees Scully Mansukhani attorneys have been selected, with 51 named to Super Lawyers and 118 named to Rising Stars.
*For attorneys licensed to practice in New Jersey: No aspect of this advertisement has been approved by the Supreme Court of New Jersey. Please visit the Super Lawyers Selection Process for a detailed description of the Super Lawyers and Rising Stars selection methodology.
The selections are a result of independent research by the team at Super Lawyers® to determine no more than the top five percent of legal professionals in each geographic region. The research team selects no more than two and a half percent of the lawyers in each geographic region to the Rising Stars list.
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Gordon Rees Scully Mansukhani
New York Appellate Team Obtains Affirmance of Dismissal of Would-Be Labor Law Action Against Municipal Entities
August 12, 2024 —
Lewis Brisbois NewsroomNew York, N.Y. (July 11, 2024) - In Charlot v. City of New York, ___ A.D.3d ___, 2024 NY Slip Op 03161 (2d Dep’t 2024), New York Associate Dean Pillarella, a member of the Appellate Practice, recently obtained an affirmance of the lower court’s dismissal of the plaintiff’s action against the City of New York (“the City”) for failure to timely serve a notice of claim. New York Partner Meghan Cavalieri, a member of the Construction Practice, and her team authored and argued the initial motion to dismiss.
The plaintiff alleged to have sustained injuries as a result of a construction-site accident on December 8, 2020, on City-owned property in the course of the construction of a school by the New York City School Construction Authority. N.Y. General Municipal Law (“GML”) § 50-e(1)(a), requires service of a notice of claim within 90 days after the claim arises as a condition precedent to the commencement of a tort action. The plaintiff served no notice of claim until June 2021 and commenced an action in January 2022, alleging violations of N.Y. Labor Law §§ 240(1), 241(6), and 200. Given the plaintiff’s failure to comply with GML § 50-e(1)(a), Meghan and her team rejected the notices of claim as untimely. The plaintiff then moved for leave to deem the notices of claim timely served nunc pro tunc. In response, Meghan and her team opposed the motion and cross-moved to dismiss the action.
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Lewis Brisbois
Additional Insured Not Entitled to Coverage for Named Insured's Defective Work
September 02, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Court of Appeals for the Seventh Circuit determined there was no duty to defend or to indemnify the additional insured for the named insured's defective work. St. Paul Guardian Ins. Co., et al. v. Walsh Construction Co., 99 F. 4th 1035 (7th Cir. 2024).
The City of Chicago contracted with Walsh Construction Company to manage the construction of a canopy and curtain wall system at O'Hare International Airport. Walsh entered into a contract with Carlo Steel Corporation, which in turn subcontracted with LB Steel, LLC to fabricate and install steel columns to support the wall and canopy. LB Steel listed Walsh as an additional insured in its commercial general liability policies. LB Steel's insurers were St. Paul, Travelers, and Charter Oak Fire Insurance Company.
Several years into the project, the City discovered cracks in the welds of the steel columns and sued Walsh. Walsh, in turn, sued LB Steel under its subcontract. Walsh also asked LB Steel's insurers to defend it in the City's lawsuit, but they refused to do so. Walsh eventually secured a judgment against LB Steel, but LB Steel declared bankruptcy. Walsh then sued LB Steel's insurers to recover the costs of defending against the City's lawsuit and indemnification for any resulting losses.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
When Licensing Lapses: How One Contractor Lost a $1 Million Dispute
October 28, 2024 —
Matthew DeVries - Best Practices Construction LawAs a construction lawyer, contractor licensing is a very key aspect of my practice. This can include new contractor applications, increase or changes in monetary limits or license classifications, change in ownership or qualifying agent , and, of course, licensing violations.
The recent decision in Incident365 Florida, LLC v. Ocean Pointe V Condominium Association serves as an important reminder for general contractors and subcontractors regarding the significance of proper licensing and thorough contract review in disaster recovery and construction services.
Case Overview
In this case, Incident365 Florida, LLC entered into disaster recovery agreements with several condominium associations (“Associations”) following Hurricane Irma. The agreements involved various tasks such as water damage mitigation, dehumidification, and the removal of unsalvageable materials. However, Incident365 lacked the appropriate contractor’s license when performing the work, which became a focal point in the dispute when the Associations refused to pay the remaining balance of $1 million, citing the absence of the required licensure.
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Matthew DeVries, BuchalterMr. DeVries may be contacted at
mdevries@buchalter.com
Construction Defect Disputes: Know Your Measure of Damages!!!!!
January 21, 2025 —
David Adelstein - Florida Construction Legal UpdatesRemember this: know your measure of damages in a construction defect dispute. If you don’t, as shown below, the outcome can be unforgiving. The measure of damages is one of your most important elements of proof. You are filing suit for damages; thus, knowing what you can reasonably recovery is paramount.
In a recent dispute, Bandklayder Development, LLC v. Sabga, 50 Fla.L.Weekly D91e (Fla. 3d DCA 2025), a residential developer sold a single-family house while it was under construction in an as-is purchase agreement. Post-closing, the purchasers claimed defects and served a Florida Statutes Chapter 558 notice of construction defects letter. The purchaser subsequently initiated a construction defect lawsuit. During the nonjury trial, the purchaser’s expert testified that the purchasers suffered damages approximating $323,000 calculated as of January 19, 2022 (which was the date of the expert’s report). The expert further testified that the cost to finish the incomplete/defective work increased by 35% at the date of the May 2023 trial. However, the expert never testified as to the amount of damages as of the date of the contractual breach, which at the latest, would have been in April 2018 when the notice of construction defects letter was sent (or, at its earliest, June 2017 when closing occurred). At trial, the judge entered judgment for the purchasers in the amount of about $425,0000. This was reversed on appeal with judgment to be entered in favor of the developer. Why? Because the purchasers employed the wrong measure of damages and the only thing that prevented them from introducing the right measure of damages was within their control. Harsh outcome for not applying the correct measure of damages!
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Designer of World’s Tallest Building Wants to Turn Skyscrapers Into Batteries
July 31, 2024 —
Will Wade - BloombergThe architecture firm that designed the world’s tallest building is considering ways to build skyscrapers that can store energy using gravity.
Skidmore, Owings & Merrill LLP has developed a series of prototype designs that use electric motors to elevate massive blocks, creating potential energy that can be converted into electricity when the blocks are lowered. The designs are based on technology developed by partner Energy Vault Holdings Inc. as an alternative to lithium-ion batteries and other types of chemical cells. They are seeking developer partners interested in offsetting greenhouse gas pollution from buildings, which the United Nations estimates are responsible for almost 40% of global emissions.
The concept is similar to widely used pumped hydroelectric plants. Energy Vault completed its first major project this month near Shanghai, a stand-alone storage system that can supply as much as 25 megawatts of power for four hours. Other companies are testing new types of gravity storage systems, including ones using abandoned oil wells and mines.
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Will Wade, Bloomberg