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New York Construction Practice Team Obtains Summary Judgment and Dismissal of Labor Law Claims

October 01, 2024 — Lewis Brisbois Newsroom
New York, N.Y. (August 23, 2024) – In Trujillo-Cruz v. City of New York, et al., New York Partner Inderjit Dhami, a member of New York Partner Meghan A. Cavalieri’s Construction Practice Team, recently obtained summary judgment and dismissal of the plaintiff's Labor Law §240(1), §241(6) and §200 claims dismissing the entire case against national developer and construction company clients. The plaintiff alleged to have sustained injuries as the result of a construction site accident occurring on July 11, 2018, while in the scope of his employment as a laborer in connection with the construction/renovation of a residential apartment building in Brooklyn, New York. Specifically, the plaintiff alleged that he was injured when he was coming down from a ladder and fell on a 2”x 4”, causing him disabling injuries. The plaintiffs’ counsel articulated a $3 million settlement demand. Labor Law §240(1) imposes absolute liability on a defendant where an injured worker engaged in the performance of covered construction work establishes that a safety device proved inadequate to shield him from elevation-related harm, and that the defendant’s failure to provide an adequate safety device proximately caused the injuries alleged. The plaintiff first testified that he stepped on the 2” x 4” after he came down off of the ladder, but his counsel then prompted him to recalibrate his testimony by asking whether the accident arose when he was coming down the ladder or after he had come down off of the ladder. The plaintiff changed his testimony, alleging that the accident arose as he was coming down the ladder and that he remained partially on the ladder when he stepped on the piece of formwork and fell. Inderjit argued that the plaintiff’s reframing of his deposition testimony was immaterial for purposes of the Labor Law § 240 (1) analysis. Irrespective of whether the plaintiff was on solid ground or had one foot on the ladder at the time of the occurrence, his Labor Law § 240 (1) claim was unavailing in that the accident did not arise as a result of the type of extraordinary elevation-related peril protected by Labor Law § 240 (1). Justice Maslow agreed and dismissed the plaintiff’s Labor Law § 240 (1) claims. Read the full story...
Reprinted courtesy of Lewis Brisbois

Benefit of the Coblentz Agreement and Consent Judgment

August 26, 2024 — David Adelstein - Florida Construction Legal Updates
If you are not familiar with the concept of what is commonly known as a Coblentz agreement relative to an insurance coverage dispute, review these prior postings (here and here and here). This is a good-to-know agreement if you are a claimant and need to consider an avenue of collection if the insured’s carrier denies coverage out of the gate (meaning the carrier has denied both the duty to defend and the duty to indemnify). A recent Eleventh Circuit Court of Appeals opinion demonstrates the Coblentz agreement concept. In Barrs v. Auto-Owners Ins. Co., 2024 WL 3673089 (11th Cir. 2024), an owner asserted a construction defect claim against its contractor. The owner hired the contractor to deconstruct a building and the contractor hired a demolition subcontractor. The owner noticed work was not being performed and materials (e.g., lumber) were missing; the demolition subcontractor had stolen materials. The subcontractor was terminated, and the owner claimed the contractor’s negligence allowed the theft and delayed his project. The contractor’s commercial general liability (CGL) insurer notified the insured-contractor that coverage did not exist and refused to defend the contractor. The owner sued the contractor under various theories of liability. The owner and contractor entered into a settlement agreement (i.e., the Coblentz agreement) where the contractor “admitted liability in the amount of $557,500.00….A consent judgment was entered against [the contractor] that closely tracked the settlement agreement but did not indicate which portion of the damages award was attributed to which claims. The agreement also assigned [owner] and all of [the contractor’s] rights to claim coverage and to recover available funds under [the contractor’s CGL policy].” Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Newport Beach Partners Jeremy Johnson, Courtney Serrato, and Associate Joseph Real Prevailed on a Demurrer in a Highly Publicized Shooting Case!

November 11, 2024 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Bremer Whyte Brown & O’Meara’s Partners Jeremy Johnson, Courtney Serrato, and Associate Joseph Real prevailed on a Demurrer in a highly publicized shooting case. Plaintiffs filed a lawsuit alleging negligence, negligent hiring, supervision and retention, and public nuisance against BWB&O’s clients, a highly recognized hospitality and lifestyle company with nightlife and restaurant venues, in addition to other celebrity defendants. Plaintiffs were the victims of a shooting that occurred by an unknown individual(s) outside and near the restaurant/venue owned by BWB&O’s clients. Plaintiffs alleged it was BWB&O’s clients that were responsible for the third parties’ criminal acts because BWB&O’s clients attracted more people than the venue’s capacity, causing people to occupy the street, sidewalk, and property nearby. Plaintiffs further alleged that BWB&O’s client should have anticipated or known that criminal conduct, including gun violence, would take place. Read the full story...
Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

Real Estate & Construction News Roundup (10/23/24) – Construction Backlog Rebounds, Real Estate Sustainability Grows, and Split Incentive Gap Remains Building Decarbonizing Barrier

November 18, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, construction output decreased, office utilization unchanged, September apartment starts fell 15% from a year ago as developers pulled permits, and more!

Developers pulled permits for a seasonally adjusted rate of 398,000 apartments in buildings with five units or more, a 17.4% YOY drop and a 10.8% decrease compared to August 2024. (Leslie Shaver, Multifamily Dive)
Construction input prices decreased 0.9% in September due to dips in two of three energy subcategories, reflecting the trend of overall material price stabilization over the past 12 months. (Sebastian Obando, Construction Dive)
Thanks in part to the Federal Reserve’s lowering of the interest rate, construction backlog rebounded in September after slumping at the end of the summer. (Joe Bousquin, Construction Dive)

Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Real Case, Real Lessons: Understanding Builders’ Risk Insurance Limits

August 12, 2024 — David McLain - Higgins, Hopkins, McLain & Roswell, LLC
In the recent case of 5333 Mattress King LLC v. Hanover Insurance Company, the United States District Court for the District of Colorado provided significant insights into the limits of builders’ risk insurance policies. Mattress King LLC, a warehouse owner, faced a substantial loss when a subcontractor drove a crane over and damaged the warehouse’s concrete floor slab during construction. Despite having a builders’ risk insurance policy with Hanover Insurance Company, coverage was denied, leading to litigation. Applicable Policy Provisions The policy in question was a Commercial Marine/Commercial Lines Builders’ Risk insurance policy. Builders’ risk insurance is designed to cover direct physical loss to covered property during construction unless the loss is excluded or limited by the policy. Key exclusions of the policy at issue included losses caused by faulty, inadequate, or defective:

Planning, zoning, surveying, or development
Design, specifications, workmanship, repair, construction, renovation, remodeling, grading, or compaction
Materials used in construction or renovation
Maintenance of the covered property

Read the full story...
Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

Kahana Feld LLP Senior Attorney Rachael Marvin and Partner Dominic Donato Obtain Complete Dismissal of Plaintiff’s Labor Law Claims on Summary Judgment

August 19, 2024 — Rachel Marvin - Kahana Feld
Kahana Feld attorneys Rachael Marvin and Dominic Donato secured summary judgment dismissal of plaintiff’s Labor Law §§ 240(1), 241(6), and 200 claims asserted against their client, a general contractor of a housing project in Orange County, New York. The case involved a construction accident in which plaintiff fell while traversing a ramp, which was placed across an eight-foot-deep excavation trench. Plaintiff was employed by a subcontractor and was part of a crew performing the framing work on the project. The accident occurred when he exited his work area by walking across a ramp that was placed across the excavated trench, when the ramp gave way and plaintiff fell into the excavation. Read the full story...
Reprinted courtesy of Rachel Marvin, Kahana Feld
Ms. Marvin may be contacted at rmarvin@kahanafeld.com

Choice of Law Provisions in Construction Contracts

October 07, 2024 — Victoria Davies - ConsensusDocs
If you have used a ConsensusDocs® construction agreement or another industry association construction agreement for one of your projects, you are accustomed to seeing the laws of the state where the construction project is located as the governing law. There are good reasons for the laws of the state where the project is located to govern the construction agreement for the project. Even if not headquartered in the state, the parties have a presence there by virtue of their participation in the project in the state. Personnel and records that may be needed to resolve a claim may be located in the state. If there are experts that need to be engaged, they will likely need to visit the site. These reasons of efficiency and convenience, alone, may justify the parties’ decision to select the project state’s laws to govern their construction contract. However, there is also the policy interest of the project state, whose laws may even mandate that the project state’s laws govern construction contracts for in-state projects and that the parties resolve their disputes in state as well. Several states have laws that require construction disputes for projects in the state to be resolved under its laws and/or litigated or arbitrated in the state. Some states require only that its laws govern and do not also require that the dispute resolution take place in the state, but some require both – that its laws govern and the disputes be resolved there. There may be different triggers as to when the statute applies. For example, in some states, the statute applies to any construction contract for a project in the state. In others, the law may only be triggered if one of the parties is domiciled in the state. Read the full story...
Reprinted courtesy of Victoria Davies, Jones Walker LLP
Ms. Davies may be contacted at vdavies@joneswalker.com

EEOC Focuses on Eliminating Harassment, Recruitment and Hiring Barriers in the Construction Industry

September 09, 2024 — Aaron C. Schlesinger & Stephen E. Irving - Peckar & Abramson, P.C.
The Equal Employment Opportunity Commission (EEOC), whose mission is to enforce the nation’s anti-discrimination laws, released new guidelines on June 18, 2024, entitled Promising Practices for Preventing Harassment in the Construction Industry. The guidelines are in support of its Strategic Enforcement Plan for the fiscal years 2024-2028 for combatting systemic harassment and eliminating barriers in recruitment and hiring in the construction industry. With these guidelines, the EEOC has identified harassment as an ongoing issue in the construction industry, and that immediate attention and resolution is required. The EEOC specifically recommends that the following five core principles that it has found effective in preventing and addressing harassment be implemented by construction industry employers:

Committed and engaged leadership;
Consistent and demonstrated accountability;
Strong and comprehensive harassment policies;
Trusted and accessible complaint procedures; and
Regular, interactive training tailored to the audience and the organization.

Reprinted courtesy of Aaron C. Schlesinger, Peckar & Abramson, P.C. and Stephen E. Irving, Peckar & Abramson, P.C. Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com Mr. Irving may be contacted at sirving@pecklaw.com Read the full story...

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