Brazil’s Former President Turns Himself In to Police
July 22, 2019 —
Mario Sergio Lima - BloombergBrazil’s former President Michel Temer handed himself in to police following a court ruling that’s unlikely to cause upheaval in domestic politics.
Temer turned himself in on Thursday afternoon, after federal court judges ordered his detention on charges of corruption, embezzlement, money laundering and conspiracy. The former head of state was initially arrested on March 21 but released four days later. Temer’s lawyers did not immediately respond to a request for comment. The 78-year old’s party, the MDB, issued a note condemning the “unreasonable” decision.
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Mario Sergio Lima, Bloomberg
Additional Insurance Coverage Determined for General Contractor
January 07, 2015 —
Tred R. Eyerly- Insurance Law HawaiiA series of communications requiring the subcontractor to provide additional insured coverage for the contractor were sufficient to fit within the policy's provision identifying additional insureds. KB Home Tucson, Inc. v. The Charter Oak Fire Ins. Co., 2014 Ariz. App. LEXIS 228 (Ariz. Ct. App. Nov. 25, 2014).
KB, the general contractor, hired CRG Construction Co., Inc. in 1999 to perform work at a residential subdivision in Tucson. Charter Oak provided liability coverage for CRG, including additional insured coverage for any person or entity that CRG was obligated to cover under written contract or agreement.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Illinois Court Assesses Factual Nature of Term “Reside” in Determining Duty to Defend
October 30, 2023 —
James M. Eastham - Traub LiebermanIn State Farm Fire & Cas. Co. v. Guevara, 2023 IL App (1st) 221425-U, P2, the Illinois First District Court of Appeals addressed an insurance carrier’s duty to defend under a homeowners insurance policy. The underlying suit stemmed from an alleged injury suffered at a residence located in Berwyn, Illinois and owned by named insured Luz Melina Guevara, a defendant in the suit. After Guevara tendered the suit, State Farm filed a complaint for declaratory judgment seeking a declaration that it had no duty to defend or indemnify Guevara because Guevara did not “reside” at the insured premises.
The policy defined the "insured location" as the "residence premises," and residence premises was defined as "the one, two, three or four-family dwelling, other structures, and grounds or that part of any other building; where you reside and which is shown in the Declarations." In response to the underlying lawsuit, Guevara had filed an answer and affirmative defenses in which Guevara denied the allegation that "At all relevant times, [Guevara] resided in Berwyn, Cook County, Illinois." Guevara admitted that she owned the Berwyn property but denied that she "resided in, maintained and controlled the property". The declaratory judgment complaint alleged (among other things) that, based on admissions by Guevara in her answer, the Berwyn residence was not an "insured location" under the State Farm policy. State Farm moved for summary judgment at the trial court level on this ground and summary judgment was granted in State Farm’s favor. An appeal ensued wherein the parties disagreed as to whether there is a genuine issue of material fact that, under the language of the policy, State Farm had no duty to defend because the Berwyn property was not an "insured location" because she did not "reside" there.
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James M. Eastham, Traub LiebermanMr. Eastham may be contacted at
jeastham@tlsslaw.com
No Retrofit without Repurposing in Los Angeles
October 21, 2013 —
CDJ STAFFThe Los Angeles Times has continued its series on the seismic safety of buildings in downtown Los Angeles. According to the article, Los Angeles only requires seismic retrofits of buildings if their purpose is being changed. One investor, Izak Shomof, bought a residential hotel and kept it as one to avoid retrofitting the building. He converted an office building to upscale residences and so the building was strengthened.
His son, Eric Shomof, keeps an office in the unreinforced building. He said if more retrofitting were required, “you’d see a lot more vacant buildings down here,” describing the process as “not cheap.”
Depending on whether or when a building has changed its use, the concrete buildings of downtown Los Angeles may or may not be protected against failure in an earthquake.
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Construction Law Client Advisory: What The Recent Beacon Decision Means For Developers And General Contractors
August 20, 2014 —
Steven M. Cvitanovic and Whitney L. Stefko - Haight Brown & Bonesteel LLPOn July 3, 2014, the California Supreme Court (the “Court”) came out with its decision in Beacon Residential Community Association v. Skidmore, Owings & Merrill, et al. The Beacon decision settled a long-standing dispute in California about whether design professionals such as architects and engineers owe a duty to non-client third parties. In finding that the plaintiffs in Beacon could state a claim against the architects of the Beacon project, the Court also sowed the seeds of change in the way contracts are structured between developers, architects, engineers, and even general contractors.
So, how will Beacon change the landscape for developers and general contractors? It is important to understand the factual background in Beacon to predict how the decision may alter the playing field. For a detailed analysis of the Amicus briefs in the Beacon matter from the AIA, the CBIA, and the Consumer Attorneys of California, please click here.
The Beacon case arose from a common development model in California: a developer conceives a multi-unit project, maps the project as a condo development but rents as apartments. Shortly after completion of the Beacon project, the developer sold the entire project and the new owner finalized the existing condominium map and placed the units on the market as condominiums. Although the architects always knew they had designed a residential structure, the project ultimately became a condominium development. The newly formed homeowners’ association filed a construction defect suit against the developers, general contractor, the subcontractors and the architects for design and construction defects.
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Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and
Whitney L. Stefko, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Ms. Stefko may be contacted at wstefko@hbblaw.com
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To Require Arbitration or Not To Require Arbitration
December 31, 2014 —
Christopher G. Hill – Construction Law MusingsMany, if not most, construction contracts that I review during the course of my practice day include a mandatory arbitration clause. Most of these refer in a blanket manner to AAA Construction Industry Rules. The topic for this post is not whether such clauses are enforceable or whether they are one tool in the contracting tool box in a state where the contract is king. I picked the title of this post carefully because I wanted to discuss whether such clauses should be required as a routine part of all construction contracts and, if so, how those clauses can and should be written.
I have previously shared my thoughts on mandatory arbitration and its desirability in numerous spots here at Construction Law Musings (you can search arbitration or check out the ADR page for more). In short, my opinion is that arbitration was initially conceived with the purpose of streamlining the dispute resolution process and to correspondingly lower the costs associated with such dispute resolution. Arbitration, when used correctly, can, in certain very industry specific cases, help by using an arbitrator or panel of arbitrators that have some expertise in the particular area of the construction industry or the particular specialized issue that will turn the case one way or the other. All of these goals are good and I applaud them.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Default Should Never Be An Option
June 19, 2023 —
Christopher G. Hill - Construction Law MusingsEvery time I think that the construction industry has learned that failure to respond to a lawsuit is never the correct response, another case of default judgment comes out. I’ve discussed on multiple occasions that failure to respond can only lead to disaster. Aside from being barred from making any substantive response to the allegations against you, there are other consequences including the inability to seek a reasonable settlement because the other side has no reason to negotiate.
One of the more disastrous results recently came about in the Norfolk Division of the Eastern District of Virginia District Court. The case of L & W Supply Corp v. Driven Construction et. al. involved a supplier that sought to enforce its credit agreement against both the corporate entity of the contractor, Driven, and the guarantor, a principal of the company. Needless to say, there was no response to the lawsuit and the Plaintiff filed for default judgment.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Contractor Beware: Design-Build Firms Must Review Washington’s Licensing Requirements
October 16, 2018 —
John Krawczyk - Ahlers Cressman & Sleight PLLCDesign-build contracting is a method of project delivery where the contractor provides both architectural/design and building services to the owner. Yet rarely do firms perform both design and building work in equal measure. Rather, in many instances, firms perform the vast majority of their work on the building side while advertising and providing design services for smaller projects using in-house architects.
Regardless of the volume of design-build contracting a firm performs, any firms practicing this method of project delivery must be aware of Washington State’s registration requirement under RCW 18.08.420(1), and specifically the condition that a “designated architect” must serve as a partner, manager or director of the firm’s governing structure.
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John Krawczyk, Ahlers Cressman & Sleight PLLCMr. Krawczyk may be contacted at
john.krawczyk@acslawyers.com