COVID-19 Business Interruption Claims Four Years Later: What Have We Learned?
September 23, 2024 —
Patrick McKnight - The Dispute ResolverFour and half years ago the COVID-19 pandemic spread around the globe, bringing with it interesting, but challenging, legal problems for construction attorneys. Construction projects ground to a halt. Ever-changing guidance from authorities ranging from the U.S. Department of Labor to local health authorities resulted in a web of evolving obligations for general contractors and subs alike. One of the most closely watched legal questions was the wave of business interruption claims filed by plaintiffs, many of whom owned businesses impacted by government shutdowns. During the opening months of the pandemic, I
noted that hundreds of business interruption claims had been filed by insureds across the country. At that time, the only thing certain was that although the outcome remained unknown, virus exclusions were likely to become more likely in the future. Needless to say, much has happened since early 2020.
What does the data say about the outcome of business interruption claims?
In sum, plaintiffs have had an uphill battle. A helpful resource for analyzing the outcome of business interruption suits is the
Covid Coverage Litigation Tracker (“Tracker”), an insurance law analytics tool offered by Penn Carey Law of the University of Pennsylvania. According to its website, “[t]he Covid Coverage Litigation Tracker is a multi-sourced database and dashboard through which to view the unfolding insurance litigation arising out of the pandemic in federal and state courts. Widely cited in briefs, judicial opinions, and the press, the tracker also serves as a proof of concept for new methods to identify, track, and understand emerging case congregations in real time.”
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Patrick McKnight, Fox Rothschild LLPMr. McKnight may be contacted at
pmcknight@foxrothschild.com
Recovering Time and Costs from Hurricane Helene: Force Majeure Solutions for Contractors
November 18, 2024 —
Matthew DeVries - Best Practices Construction LawWhen Hurricane Helene struck North Carolina, it caused severe disruptions to construction projects across the state. Baxter International’s North Cove facility in Marion, N.C., was completely shut down after floodwaters damaged the site and bridges leading to it. Elsewhere, landslides and floods wiped out large sections of Interstate 40, making transportation of materials and equipment nearly impossible. Many contractors in western North Carolina found their projects halted, and their schedules thrown off by this force majeure event.
In situations like these, contractors and subcontractor need a plan to mitigate the impact of such natural disasters on their projects. Here are five practical tips to help you secure time extensions and/or compensation for delays:
1. Include a Robust Force Majeure Clause in Your Contract
When disaster strikes, your contract is your first line of defense. A well-drafted force majeure clause can make the difference between bearing the costs yourself and getting an extension or compensation. The clause should clearly list specific events such as hurricanes, floods, and road closures as qualifying force majeure events.
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Matthew DeVries, BuchalterMr. DeVries may be contacted at
mdevries@buchalter.com
Bremer Whyte’s Newport Beach Team Prevails on a Motion for Summary Judgment in a Wrongful Death Case!
September 02, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPCongratulations on another win to Orange County Partners
Jonathan Cothran and
Rachel Mihai for prevailing on a Motion for Summary Judgment in a wrongful death case!
Plaintiffs filed a wrongful death lawsuit alleging negligence and vicarious liability against BWB&O’s client, a licensed electrical contractor. BWB&O’s client installed a solar system at the Plaintiffs’ home in January 2018. In October 2018, an electrical fire broke out at the home in an upstairs bedroom. Tragically, the family’s father perished in the fire when he entered the home after the fire started. Plaintiffs alleged that BWB&O’s client was liable for the fire and Plaintiffs’ resulting injuries due to its electrical work on the solar system at the home.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Historical Long-Tail Claims in California Subject to a Vertical Exhaustion Rule
December 03, 2024 —
Will S. Bennett - Saxe Doernberger & Vita, P.C.California’s complex saga of long-tail injury coverage under general liability policies took an interesting turn in the California Supreme Court’s recent decision in Truck Ins. Exch. v. Kaiser Cement.1 In Truck, the court made it clear that Insureds can access excess policy limits without first exhausting all triggered underlying primary coverage, provided the underlying limits for the same policy period have been exhausted.
A Brief Summary of the History of Coverage for Long-Tail Claims in California2
Understanding the contextual significance of Truck requires a brief survey of California’s gradually developed case law with respect to long-tail progressive injury and damage claims. A “long-tail claim” typically involves progressively manifesting damage, injury, or disease that develops over a period of multiple years. Because general liability insurance is traditionally triggered based on the timing of when bodily injury or property damage occurs, the progressive nature of these claims has led many courts to analyze when injury or damage occurs in these claims. In doing so, California courts have generally found that these injuries occur across numerous years, thereby triggering numerous policies.3
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Will S. Bennett, Saxe Doernberger & Vita, P.C.Mr. Bennett may be contacted at
WBennett@sdvlaw.com
Toolbox Talk Series Recap - The Mediator's Proposal
January 21, 2025 —
Douglas J. Mackin - The Dispute ResolverIn our final edition of the year of Division 1's Toolbox Talk Series on December 19, 2024,
Matthew Argue and
Gene Witkin discussed the use of the Mediator’s Proposal to bridge any final gaps to settlement between parties to a mediation. For those unfamiliar, a Mediator’s Proposal is a settlement proposal that the mediator makes to all parties to the dispute simultaneously. Each party then advises the mediators in confidence whether they accept or reject the proposal. The Mediator will communicate to all the parties that the Mediator’s Proposal is accepted only if all parties accept.
Argue and Witkin emphasized that the Mediator’s Proposal is not a shortcut and should not be used simply to split the difference. Instead, it is a tool available to the mediator to push the parties to resolution after they have had robust negotiations, understand the strengths and weaknesses of the positions of each side, and have made progress towards at least getting within range of one another. A successful Mediator’s Proposal depends on the mediator (and the parties) having sufficient information to make a credible recommendation and creating an environment where all parties will consider the Mediator’s Proposal in good faith.
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Douglas J. Mackin, Cozen O’ConnorMr. Mackin may be contacted at
dmackin@cozen.com
The Benefits of Trash Talking: A Cautionary Tale of Demolition Gone Wrong
September 02, 2024 —
Joshua Levy, Anne O'Meara & Kimberly Gutierrez - Construction ExecutiveThat sinking feeling has crossed everyone’s mind at some point: "Did I accidentally throw out...?” It can happen to anyone, from valuable jewelry to uncashed checks or even (in the case of one contractor) to fire-pump control cabinets.
Demolishing the wrong equipment is a concern construction and demolition contractors should review before beginning any project. Recently, one general contractor and its demolition subcontractor would have benefitted from a more detailed “trash” talking session, which could have helped them avoid a dumpster-fire of a legal dispute.
In this case, the general contractor was contracted to renovate a hangar for a military base. The company subcontracted the demolition work to a local, family-owned contractor to demolish aspects of the hangar’s fire-suppression room. The two companies met many times, from planning to daily field walk-downs. They discussed that any equipment that was tagged with bright orange tags would remain in the fire-suppression room. The contractor also reviewed the demolition plans with the demolition company, detailing what should and should not be removed.
Reprinted courtesy of
Joshua Levy, Anne O'Meara & Kimberly Gutierrez, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Another Reminder that Your Construction Contract is Only as Good as Those Signing It
December 17, 2024 —
Christopher G. Hill - Construction Law MusingsHere at Construction Law Musings, we beat the constant drum that “
the contract is king” and “draft a
good and well-worded construction contract” consistently. As a
Virginia construction attorney, I stand by these statements and fully endorse a well-written construction contract. Such a contract will set expectations and
provide the rules for your deal (particularly in the commercial context). Without this solid foundation (yes, I see the potential construction pun), when
there are issues on the job site, there will be no baseline for how to resolve those issues.
That said, I am also reminded on an almost daily basis that humans interact with these contracts. People negotiate the contracts and are the main forces that drive the success (or failure) of the construction project. Money is involved (often a lot of it) and there can at times be temptations to try and squeeze one last dollar out of the job despite what the contract says. Even the strongest contract cannot act as real-time protection against one party that refuses to comply with the contract and its performance or payment terms.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Supreme Court Upholds Prevailing Wage Statute
August 19, 2024 —
Ahlers Cressman & Sleight PLLCHistorically, the prevailing wage was calculated by averaging the wages within a certain industry and county. However, in 2018 the Washington Legislature amended the statute so that the prevailing wage would be assessed based on the highest wage set by collective bargaining agreements in the county. The amendment (RCW 39.12.015(3)) reads as follows:
(3)(a)…the industrial statistician shall establish the prevailing rate of wage by adopting the hourly wage, usual benefits, and overtime paid for the geographic jurisdiction established in collective bargaining agreements…
(b) For trades and occupations in which there are no collective bargaining agreements in the county, the industrial statistician shall establish the prevailing rate of wage by…conducting wage and hour surveys.
So, for example, if union engineers bargain for a wage, that is the wage all engineers in the county must be paid on public projects. The legislature passed this law for the sake of efficiency because it took significant resources for the Industrial Statistician to compute the prevailing wage for every trade and every county, but the law has significant knock-on effects.
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Ahlers Cressman & Sleight PLLC