Understanding Insurance Disputes in Construction Defect Litigation: A Review of Acuity v. Kinsale
December 17, 2024 —
David M. McLain – Colorado Construction Litigation BlogConstruction projects are inherently complex, and insurance coverage plays a crucial role in managing risks, especially when unforeseen issues arise. The case of Acuity v. Kinsale demonstrates the tangled web of insurance obligations, especially when multiple insurers provide coverage for a single event. This case, involving Monarch Stucco, Inc., Acuity, and Kinsale Insurance Company, sheds light on the challenges that contractors, subcontractors, and insurers may face when disputes over liability and coverage occur.
The Background of the Case
At the heart of this dispute lies a construction defect at a retirement community project in Lakewood, Colorado. Monarch Stucco, Inc. (“Monarch”), a subcontractor hired by GH Phipps Construction Company (“Phipps”), was responsible for stucco work on the project. Unfortunately, defects in the building’s envelope system, particularly Monarch’s stucco work, led to significant damage and costly repairs.
Read the full story...Reprinted courtesy of
David M. McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
Why Being Climate ‘Positive’ Is the Buzzy New Goal of Green Building
December 10, 2024 —
Olivia Rudgard - BloombergThe three buildings, dotted around Norway, couldn’t look more different: a soaring timber-and-concrete obelisk in Porsgrunn; a squat, two-story Montessori school on the edge of a forest in Drøbak; and a concrete and glass wedge-shaped office in Trondheim, just a few hundred miles from the edge of the
Arctic Circle. But they share a distinctive feature. Each has a roof perfectly tilted to squeeze out every possible drop of solar energy.
They are called
Powerhouses, and the initiative behind them claims they are all “energy positive”: The upfront energy “cost” of each building, and that of later demolition and disposal, is expected to be made back over the building’s lifetime. Powerhouses sometimes draw from the grid, especially in winter, but in the long Nordic summer days they give back many times over, overspilling excess solar energy into surrounding homes and businesses.
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Olivia Rudgard, Bloomberg
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
Real Estate & Construction News Roundup (8/6/24) – Construction Tech Deals Surge, Senators Reintroduce Housing Bill, and Nonresidential Spending Drops
September 16, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, cybersecurity attacks target contractors, U.S. banks report weaker profits, additional commercial real estate is distressed, and more!
- Spending dropped in almost half of nonresidential subcategories in June, with the decrease stemming from higher interest rates, tighter credit conditions and a softening economy. (Sebastian Obando, Construction Dive)
- Despite the decline in investment dollars for construction technology, the number of deals surged by 18% year-over-year, indicating sustained interest and activity in the sector. (Sebastian Obando, Construction Dive)
- As cybersecurity attacks on U.S.-based businesses ramp up, general contractors are not immune. (Jen A. Miller, Construction Dive)
Read the full story...Reprinted courtesy of
Pillsbury's Construction & Real Estate Law Team
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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Quick Note: Staying, Not Dismissing, Arbitrable Disputes Under Federal Arbitration Act
July 31, 2024 —
David Adelstein - Florida Construction Legal UpdatesAs you hopefully know from posted articles, arbitration is a creature of contract. Stated differently, there must be a contractual basis to have a dispute resolved through binding arbitration. The Federal Arbitration Act (FAA) applies to transactions involving interstate commerce. Oftentimes, lawsuits are filed despite an arbitration provision in a contract because parties can, if they desire, waive their rights to have their dispute resolved through binding arbitration.
In what should not be a shocker, the United States Supreme Court in Smith v. Spizzirri, 144 S.Ct. 1173, 1178 (2024), held that when a federal “district court finds that a lawsuit involves an arbitrable dispute, and a party requests a stay pending arbitration, section 3 of the FAA compels the court to stay the proceeding.” Dismissing the lawsuit should not be the option. Staying the lawsuit should.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Run Spot...Run!
November 18, 2024 —
Daniel Lund III - Lexology"The 'classic' definition of spot zoning is 'the process of singling out a small parcel of land for a use classification totally different from that of the surrounding area for the benefit of the owner of such property and to the detriment of other owners.’ Anderson’s American Law of Zoning, 4th Edition, § 5.12 (1995)” (from plannersweb.com).
A wireless carrier rebuffed in Jennings, Louisiana, on an application to rezone residential property to site a monopole cell tower sought relief from the federal court for the Western District of Louisiana. The city lacked any wireless tower provisions in its ordinances, and the carrier asserted that existing “commercial property within the appropriate range” was unavailable.
Read the full story...Reprinted courtesy of
Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
ASCE Statement on House Passage of the Water Resources Development Act of 2024
August 05, 2024 —
Marsia Geldert-Murphey, P.E., President of the American Society of Civil EngineersWASHINGTON — The American Society of Civil Engineers (ASCE) commends the House of Representatives for passing H.R. 8812, the bipartisan Water Resources Development Act (WRDA) for 2024. The House WRDA 2024 bill will help improve America's ports and inland waterways, enhance flood risk management and storm risk reduction programs, and prioritize ecosystem restoration. While we urge the Senate to swiftly vote on its version of WRDA, we are encouraged that our nation's critical water resources infrastructure remains a congressional priority.
The House version of WRDA includes several key provisions to enhance the safety of America's dams and levees, which each received a 'D' on the 2021 Report Card for America's Infrastructure, as well as provisions to modernize the nation's inland waterways system, which received a 'D+' in the 2021 Report Card. This includes one of ASCE's top legislative priorities for this year, the reauthorization of the National Dam Safety Program through 2028. But beyond the reauthorization, this bill reduces restrictions on the amount of funds states can receive in National Dam Safety Program State Assistance Grants; improves access to the High Hazard Potential Dam Rehabilitation Grant Program; and requires the incorporation of low-head dams into the National Inventory of Dams. Each of these provisions are critical to ensuring the long-term safety of our nation's dams and ASCE applauds the House for their inclusion. Furthermore, ASCE was pleased to see that the House legislation extends the National Levee Safety Program through 2033, which will help support the establishment of state levee safety programs, develop and publish national guidelines for levee safety, and enhance flood protection nationwide.
While these measures are not included in the Senate version of WRDA, we encourage lawmakers to ensure they are included in a final conference version of the bill.
We thank the House of Representatives for moving forward WRDA 2024 and strongly encourage the Senate to pass its version so that Congress can keep this vital water resources legislation on a biennial schedule and ensure our nation's dams, levees, ports, and inland waterways can support the American economy and protect public safety.
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.
