No Damages for Delay May Not Be Enforceable in Virginia
January 08, 2024 —
Christopher G. Hill - Construction Law MusingsAnyone who reads Construction Law Musings with any regularity (thank you by the way) knows that the contract is king in most instances here in Virginia. Any commercial construction subcontractor in Virginia is likely also very familiar with so-called “no damages for delay” clauses in construction contracts. These clauses essentially state that a subcontractor’s only remedy for a delay caused by any factor beyond its control (including the fault of the general contractor), after proper notice to the general contractor, is an extension of time to complete the work. However, in 2015 the Virginia General Assembly passed a change in the law that precluded the diminishment of any right to claims for demonstrated additional costs prior to payment. This left open the question as to which types of “diminishment” would be barred by the statute.
The recent case out of the Eastern District of Virginia federal court, Strata Solar LLC v. Fall Line Construction LLC, added a bit of clarity.
Read the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Hawaii Supreme Court Says Aloha to Insurers Trying to Recoup Defense Costs From Policyholders
January 02, 2024 —
Lara Degenhart Cassidy & Yosef Itkin - Hunton Insurance Recovery BlogThe Hawaii Supreme Court emphatically rejected insurer efforts to seek reimbursement of defense costs absent a provision in the policy providing for such reimbursement in St. Paul Fire & Marine Insurance Company v. Bodell Construction Company, No. SCCQ-22-0000658, 2023 WL 7517083, (Haw. Nov. 14, 2023). The state high court’s well-reasoned decision rests on bedrock law regarding insurance policy construction and application, follows the nationwide trend of courts compelling insurers to satisfy their contractual obligations in full, and should carry great weight as other jurisdictions continue to debate the same issue.
In Bodell, the Hawaii Supreme Court joined the swelling ranks of courts recognizing that an insurer may not use a reservation of rights to create the extra-contractual “right” to recoup already paid defense costs for a claim on which the insurer ultimately owes no coverage. See, e.g., Am. & Foreign Ins. Co. v. Jerry’s Sport Ctr., Inc., 2 A.3d 526 (Pa. 2010). Other jurisdictions, such as California, will permit an insurer to seek reimbursement from a policyholder for defense costs incurred in defending claims later determined to be uncovered. See Buss v. Superior Court, 16 Cal.4th 35 (1997) (holding insurers have a right to reimbursement of defense costs incurred for noncovered claims).
Reprinted courtesy of
Lara Degenhart Cassidy, Hunton Andrews Kurth and
Yosef Itkin, Hunton Andrews Kurth
Ms. Cassidy may be contacted at lcassidy@HuntonAK.com
Mr. Itkin may be contacted at yitkin@HuntonAK.com
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Breach of an Oral Contract and Unjust Enrichment and Implied Covenant of Good Faith and Fair Dealing
December 23, 2023 —
David Adelstein - Florida Construction Legal UpdatesIn an ideal world, parties would have written contracts. In reality, parties should endeavor to ensure every transaction they enter into is memorialized in a written contract. This should not be disputed. Of course, written contracts are not always the case. Parties enter transactions too often whereby the transaction is not memorialized in a clean written agreement. Rather, it is piecemealing invoices, or texts, or discussions, or proposals and the course of business. A contract can still exist in this context but it is likely an oral contract. Keep in mind if there is a dispute, what you think the oral contract says will invariably be different than what the other party believes the oral contract says. This “he said she said” scenario gets removed, for the most part, with a written contract that memorializes the written terms, conditions, and scope.
A recent federal district court opinion dealt with the alleged breach of an oral contract. In Movie Prop Rentals LLC vs. The Kingdom of God Global Church, 2023 WL 8275922 (S.D.Fla. 2023), a dispute concerned the fabrication and installation of a complex, modular stage prop to be used for an event. But here lies the problem. The dispute was based on an oral contract and invoices. The plaintiff, the party that was fabricating the modular stage prop, sued the defendant, the party that ordered the stage prop for the event, for non-payment under various claims. The defendant countersued under various claims.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
'Taylor Swift Is an Economic Phenomenon': CE's Q1 2024 Economic Update and Forecast
April 29, 2024 —
Grace Calengor - Construction ExecutiveOn March 27, Construction Executive presented its "2024 Q1 Economic Update and Forecast," hosted by ABC Chief Economist Anirban Basu. If you've attended previous versions of this webinar, you're familiar with Basu’s pragmatic approach to the economics of the construction industry and his penchant for predicting recession. But this quarter, he opted for an almost-optimistic approach and hinted at walking back his thoughts on recession. Read the most quotable moments, new poll results and top takeaways from the presentation below.
POLL RESULTS: Q1 2024 vs. Q4 2023 Poll 1: Which of these is the leading challenge for your company today?
Supply chain and/or materials issues
Skills/worker shortage
Insufficient demand for construction services
Availability of financing for projects/project work
None of the above
December 2023 | March 2024 |
10% |
7% |
57% |
60% |
11% |
11% |
19% |
17% |
3% |
6% |
Reprinted courtesy of Grace Calengor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Meet the Forum's ADR Neutrals: TOM NOCAR
March 25, 2024 —
Marissa L. Downs - The Dispute ResolverCompany: Hahn Loeser & Parks, LLP
Office Location: Columbus, Ohio
Email: tnocar@hahnlaw.com
Website: https://www.hahnlaw.com/professionals/j-thomas-nocar/
Law School: The Ohio State University Moritz College of Law
Types of ADR services offered: Arbitration and Mediation
Affiliated ADR organizations: AAA Construction Panel
Geographic area served: Nationwide
Q: Describe the path you took to becoming an ADR neutral.
A: I am a former builder turned construction attorney. I spent 26 years building before going to law school. I’ve worn every hat in the industry—D/B business owner, owner’s rep, CM at risk, GC, design/builder, subcontractor, and vendor at some point in my prior career. I chose to adapt these experiences to a law career in 2009 with the focus of practicing construction law. Now I commonly represent commercial builders and developers. AAA added me to the Construction Roster in 2022.
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Marissa L. Downs, Laurie & Brennan, LLPMs. Downs may be contacted at
mdowns@lauriebrennan.com
Unpredictable Power Surges Threaten US Grid — And Your Home
April 08, 2024 —
Naureen S Malik - BloombergPaul LeBlanc was barefoot when he stepped outside that morning.
He was taking the trash out when he saw the red glow of flames engulfing a nearby home. A former firefighter, LeBlanc grabbed his shoes before racing across the street. He smashed a window, then rushed inside. The only person believed to be home was a teenage boy who had already escaped, luckily with just minor burns. Alarms blared “fire” loudly, again and again, blasting from homes through the area.
“I’ve been in buildings without protection before — I just wanted to make sure no one was stuck in there,” said LeBlanc, who spent more than three decades as a firefighter before retiring.
The damage to the Alonge family’s four-bedroom home built in the early 1800s was so bad they haven’t been able to return since the blaze in June. The source of the conflagration in Waltham, Massachusetts, came from a facility about 2 miles west of the home. An electric substation, which had been dealing with a rodent infestation, had a sudden, unstable surge in voltage.
Read the full story...Reprinted courtesy of
Naureen S Malik, Bloomberg
The Other Side of the North Dakota Oil Boom: Evictions
May 13, 2024 —
Sarah Holder - BloombergWilliams County, North Dakota, is one of the biggest beneficiaries of the state’s fracking boom. In the past decade, millions of barrels of oil have been pumped from its land, and the population of its largest city, Williston, has doubled.
But as the oil flowed and workers poured in to staff the rigs, housing options quickly ran dry. The region’s uneven expansion has led to an eviction crisis for the county’s 39,000 residents, according to a recent paper from a group of sociologists affiliated with Princeton University’s Eviction Lab.
Williams County saw its eviction rate go from “nearly non-existent” in 2010 to over 7% a decade later, the study found. By 2019, at the height of its oil boom — when the state accounted for 11% of the country’s oil production — its eviction filing rate was comparable to that of large, renter-heavy cities like New York City or Philadelphia, according to Eviction Lab. Though oil production peaked in 2019, the problem hasn’t abated: From January through November 2023, more than 550 evictions were recorded by the Williams County Sheriff’s office, up around 30% from the previous full year.
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Sarah Holder, Bloomberg
Subrogation Waiver Unconscionable in Residential Fuel Delivery Contract
April 29, 2024 —
Ryan A. Bennett - The Subrogation StrategistIn a matter of first impression, the Superior Court of Connecticut (Superior Court), in American Commerce Ins., Co. v. Eastern Fuel Corp., No. CV-206109168-S, 2024 Conn. Super. LEXIS 380, held that a waiver of subrogation provision in a consumer fuel service/delivery contract violated public policy. The Superior Court overruled the motion for summary judgment filed by Eastern Fuel Corporation (Eastern) and determined that the clause was impermissible as the contract was entered into by two parties with unequal bargaining power.
American Commerce Insurance Company (American) provided property insurance to Arlene and James Hillas (the Insureds) for their home in Woodbridge, Connecticut. The Insureds hired Eastern to service their heating system on or around October 25, 2018. The service work at the property included inspecting the oil filters and flushing the fuel lines. On November 1, 2018, when the Insureds turned the heating system on for the first time that season, the two oil tanks on the property were allegedly full. After a series of deliveries, claims that the oil levels were lower than expected, discovering oil staining on the floor and Eastern’s replacement of the oil lines, Eastern delivered another 429 gallons. However, after the delivery, additional leaks were discovered relating to the oil line replacements. Ultimately, the Insureds submitted a claim to American and American paid in excess of $59,000 for the damage incurred.
Read the full story...Reprinted courtesy of
Ryan A. Bennett, White and Williams LLPMr. Bennett may be contacted at
bennettr@whiteandwilliams.com