Word of the Day: “Contractor”
September 16, 2024 —
Garret Murai - California Construction Law BlogWhat’s in a word? When it comes to insurance policies, a word, can potentially mean millions of dollars.
In
California Specialty Insulation, Inc. v. Allied World Surplus Lines Insurance Company, 102 Cal.App.5th 1 (2024), an insured and its insurer battled it out over the word “contractor,” and whether an exclusion from coverage of bodily injury to any employee or temporary worker “of any contractor or subcontractor,” excluded a personal injury claim brought by an employee of a general contractor against a subcontractor.
The California Specialty Contractor Case
In 2017, Air Control Systems, Inc. (“Air Control”) was contracted to perform improvements at a building in Los Angeles, California. Air Control in turn subcontracted with California Specialty Insulation, Inc. (“CSI”) to install duct insulation on the project.
During construction, an employee of Air Control was injured when he fell 16 to 20 feet from a ladder that was struck by a scissor lift driven by an employee of CSI. Approximately two years later the Air Control employee filed a personal injury lawsuit against CSI.
Read the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
ASCE Statement on Devastating Impacts of Hurricane Helene
October 07, 2024 —
Marsia Geldert-Murphey, P.E., President - American Society of Civil EngineersWASHINGTON, DC. – We are deeply saddened by the tragic loss of life across six states, in addition to the immeasurable damages caused by Hurricane Helene throughout the Southeast this past week. Hundreds of communities are without power. Citizens cannot move safely from one place to another. And in its wake, the storm has left many without drinking water and sewage services. As civil engineers, our first priority when we design and build the structures that connect us is the public's safety and well-being; we are heartbroken to see so many lives lost or upended by Hurricane Helene.
As someone who has experienced losing everything in a catastrophic flood event, I have seen first-hand the need for making communities more resilient, and the consequences of failing to do so. Although hurricanes have consistently been a threat in the U.S., particularly in the Southeast, extreme weather events and 500-year floods are increasing in regularity and our aging infrastructure systems were not built to withstand storms of this magnitude. Total prevention of loss of life or property damage can never be guaranteed, but Helene is a reminder of the importance of widespread adoption of up-to-date, modern building codes and standards.
We are thankful for the hard work of first responders, the military, and other organizations working around the clock to save lives and meet the immediate needs of people affected by this storm. As communities begin the long recovery process, civil engineers will be there to help communities rebuild the roads, bridges, dams, water systems, and other infrastructure damaged or destroyed by the storm.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 160,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
Summary Judgment for Insurer on Construction Defect Claim Reversed
January 07, 2025 —
Tred R. Eyerly - Insurance Law HawaiiThe Fifth Circuit reversed the district court's granting of summary judgment to the insurer on a construction defect claim asserted against the insured. TIG Ins. Co. v. Woodsboro Farmers Cooperative, 2024 U.S. App. LEXIS 24003 (5th Cir. Sept. 20, 2024).
In March 2013, Woodsboro Farmers Cooperative contracted with E.F. Erwin, Inc. to construct two Brock 105' diameter grain silos. Erwin hired subcontract AJ Constructors, Inc. (AJC) to construct the silos. Erwin was responsible for supervising the work.
Brock silos were kits shipped by the manufacturer and then assembled according to the manufacturer's manuals and specifications. The silos are constructed section by section. AJC began erecting the silos in May 2013 and completed its work in June or early July. Erwin occasionally inspected the work and found the silos were structurally sound and not defective. AJC left the job site after completing the assembly.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Challenging a Termination for Default
September 23, 2024 —
David Adelstein - Florida Construction Legal UpdatesNo contractor wants to be terminated for default. It is the harshest contractual recourse. It is a recourse that has implications, particularly in the public sector. However, a party needs to be in a position to support the basis of the termination for default, and the terminated party, in most instances, should not be in a position to imply accept the basis of the default. This applies regardless of the project.
In the federal context: “When a contractor challenges a default termination, the government bears the burden of establishing the validity of the termination.” Sergent’s Mechanical Systems, Inc. v. U.S., 2024 WL 4048175, *7 (Fed.Cl. 2024) (internal quotation and citation omitted). Once the government establishes the default, “the contractor bears the burden of establishing that the default was excused by fault of the government.” Id. at *8 (internal quotation and citation omitted).
Relevant considerations as to whether the contractor is in default include the contractor’s failure to meet contract specifications or the required schedule. Sergent’s Mechanical Systems, supra, at *8. “[T]here is ‘a requirement that the contractor give reasonable assurances of performance in response to a validly issued cure notice.” Id. (internal quotation and citation omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Thirteen Payne & Fears Attorneys Honored by Best Lawyers
August 19, 2024 —
Payne & Fears LLPCongratulations to the 13 Payne & Fears attorneys included in the 2025 Edition of “Lawyer of the Year,” The Best Lawyers In America®, and Best Lawyers: Ones to Watch®. Attorneys have been recognized in the following practice areas:
2025 Edition “Lawyer of the Year”
Orange County
Benjamin A. Nix
Daniel F. Fears
- Litigation – Labor and Employment
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Payne & Fears LLP
BWB&O ranks as a 2025 Best Law Firm by Best Lawyers®
December 10, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is honored to announce the firm has been recognized for its fifth consecutive year in the 2025 edition of Best Law Firms® and is ranked by Best Lawyers® regionally in three practice areas. To read the publication, please click here.
Metropolitan Tier 1
Las Vegas: Litigation – Construction
Orange County: Litigation – Construction
Metropolitan Tier 2
Orange County: Family Law
San Diego: Litigation – Real Estate
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
For Whom Additional Insured Coverage Applies in New York
November 11, 2024 —
Bill Wilson - Construction Law ZoneSimply including a requirement in a contract to add certain parties as additional insureds under a commercial general liability insurance (CGL) policy may not be enough to ensure such coverage is provided in New York. In New York City Hous. Auth. v. Harleysville Worcester Ins. Co., 226 A.D.3d 804 (2024), the New York Supreme Court Appellate Division – Second Department ruled that the language in an insurance endorsement required privity of contract with the insured party subcontractor to obtain additional insured status and denied coverage to others despite a provision in a subcontract requiring such additional insured coverage.
In this case, an owner entered into a contract with a general contractor for construction services. The general contractor entered into a subcontract with a subcontractor. The subcontractor agreed to procure and maintain a CGL policy naming the owner, the general contractor, and another related party as additional insureds thereunder. An employee of the subcontractor was injured on the project and sued the three additional insureds and several other parties. Subcontractor’s insurance company refused to defend and indemnify any party other than the general contractor. All the parties sued by the subcontractor’s employee brought an action against the subcontractor’s insurance company, seeking coverage for defense and indemnification as additional insureds under the subcontractor’s CGL policy.
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Bill Wilson, Robinson & Cole LLPMr. Wilson may be contacted at
wwilson@rc.com
Big Data Meets Big Green: Data Centers and Carbon Removal Compete for Zero-Emission Energy
October 15, 2024 —
Robert A. James, Sidney L. Fowler & Ashleigh Myers - Gravel2Gavel Construction & Real Estate Law BlogArtificial intelligence, data centers, carbon removal and zero-emission power may sound like a winning line (plus the Free Space) on a 2024 Buzzword Bingo card. But the concepts have come into dramatic real-world tension as private and public actors seek to accommodate the digital and environmental imperatives for green energy.
After years of fairly stable demand, punctuated by declines during the pandemic and economic slumps, electricity demand is projected to double by 2050. A principal cause is the rapid expansion in the power needed to energize and cool servers amid explosive growth in the number and size of data centers, crypto miners, and other point sources of computation. Data centers were 3% of U.S. demand and are projected to be up to 9% or more by 2030; AI will drive a 160% surge in data center demand by 2030. A commentator notes, “We haven’t seen [growth like] this in a generation.”
Reprinted courtesy of
Robert A. James, Pillsbury,
Sidney L. Fowler, Pillsbury and
Ashleigh Myers, Pillsbury
Mr. James may be contacted at rob.james@pillsburylaw.com
Mr. Fowler may be contacted at sidney.fowler@pillsburylaw.com
Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com
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