Application of Set-Off When a Defendant Settles in Multiparty Construction Dispute
January 05, 2017 —
David Adelstein – Florida Construction Legal UpdatesThe defense of set-off is an important defense in construction disputes, particularly multiparty disputes. For more information on this defense, please check out this
article as it explains the application of set-off in civil disputes in detail.
The issue of set-off will come up in a multiparty dispute when a plaintiff settles with one or more of the defendants. The remaining defendant(s) wants the benefit of that settlement to set-off and reduce any judgment against it. An example of this scenario can be found in Escadote I Corp. v. Ocean Three Limited Partnership, 42 Fla. L. Weekly D23a (Fla. 3d DCA 2016).
In this case, an owner of a condominium unit sued the condominium association, the developer, and the general contractor for water intrusion and mold infestation. The claim against the condominium association was the only claim that entitled the owner to attorney’s fees pursuant to its lawsuit (thus, attorney’s fees were isolated to only that claim against the association). During trial, the owner settled with the association. In entering a settlement, the owner smartly allocated the settlement amount such that $500 was allocated to its principal damages and $374,500 was allocated to its attorney’s fees. The owner then obtained a jury verdict against the contractor and developer for approximately $2M, jointly and severally, and the contractor and developer wanted the entire $375,000 settlement amount with the association to be set-off from the $2M verdict. The trial court set-off the entire $375,000 from the jury verdict when entering judgment. The appellate court reversed.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dma@katzbarron.com
Work to Solve the Mental Health Crisis in Construction
September 05, 2022 —
Bruce Morton & Diane Andrea - Construction ExecutiveThe suicide rate for construction is one of the highest among major industries. That statistic is from a 2018 report from the Centers for Disease Control and Prevention. And it’s one major reason why the concern about mental health in the construction industry has grown. Research shows that as many as 90% of all people who die by suicide have a mental health condition. Depression is the most common cause, but other conditions such as substance use disorders may have an impact as well.
What is causing mental health conditions in the construction industry? According to the U.S. Bureau of Labor Statistics, 97% of the U.S. construction industry is male—and men experience the highest rate of suicides. Yet, while the suicide rate for women in construction is lower than that for men in the construction industry, it appears to be much higher than the suicide rate for the general female population. Being “tough” and “strong” are highly valued; acknowledging mental health concerns—or even seeking help—may be considered a sign of weakness. There is often fear of shame and judgment for admitting you have a problem.
In addition, the nature of construction industry jobs may affect mental health. Injuries may cause chronic pain, which can result in substance disorders like opioid use. Seasonal work can result in layoffs, which puts a strain on family relationships and finances. The job is high-stress and the work is deadline-driven. Employees work long hours, potentially resulting in fatigue. Sometimes work is away from home for extended periods. The pandemic has exacerbated every other problem while creating its own.
Reprinted courtesy of
Bruce Morton and Diane Andrea, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Morton may be contacted at bruce.morton@marshmma.com
Ms. Andrea may be contacted at Diane.Andrea@MarshMMA.com
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Unbilled Costs Remain in Tutor Perini's Finances
October 23, 2018 —
Scott Van Voorhis – Engineering News-RecordTutor Perini is struggling to shake off long-running concerns over the hundreds of millions in unbilled costs that have been on the contractor’s balance sheet for years. The Sylmar, Calif.-based construction giant reported more than $1 billion in unbilled costs or receivables at the end of the second quarter, up by more than $100 million from the start of the year, according to the company’s federal filings. That was $100 million higher than at the end of 2016, when the amount was $832 million.
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Scott Van Voorhis, ENRENR may be contacted at
ENR.com@bnpmedia.com
Maintenance Issues Ignite Arguments at Indiana School
January 31, 2014 —
Beverley BevenFlorez-CDJ STAFFStudents and faculty at Roosevelt College and Career Academy in Gary, Indiana have dealt with the building’s burst pipes since last year, however, the recent cold temperatures have worsened the issue, “disrupting classes and causing costly repairs,” according to the Post-Tribune.
EdisonLearning now runs the school: “The state tapped the private, for-profit education management company for Roosevelt after six straight years of anemically low test scores.” The “lengthy agreement” between EdisonLearning and the school district states holds the district “responsible for major repairs and to maintain the building just like the other schools it runs.”
“The money we were provided is for academic purposes, not for the operation of the building,” said Michael Serpe, spokesman for EdisonLearning told the Post-Tribune. “If you rent a home and the heat doesn’t work, you contact the landlord.”
“If the building is monitored properly, we could stop these problems but we have to get to them earlier,” said Charles Prewitt, the district’s director of building, grounds and maintenance, as reported by the Post-Tribune. Prewitt added that part of the maintenance problems is lack of access. He alleges that “EdisonLearning changed the locks and provided a swipe card for only one door.”
“There always seem to be reasons that things don’t get fixed at Roosevelt when they get fixed everywhere else,” Serpe retorted.
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Recycled Water and New Construction. New Standards Being Considered
September 15, 2016 —
Garret Murai – California Construction Law BlogThe second a series of stockholder meetings will be held on August 30, 2016 in Sacramento, California to consider proposed amendments to the state building code for the installation of recycled water systems for newly constructed single-family, multifamily, commercial and public buildings.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Homeowner's Claim for Collapse Survives Summary Judgment
September 20, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer failed to present adequate evidence on summary judgment that damage caused by the collapse of a swimming pool was not covered. Klein v. State Farm Ins. Co., 2017 N.Y. Misc. LEXIS 3030 (Sup. Ct. N.Y. July 11, 2017).
Klein notified State Farm that his in-ground pool collapsed on February 5, 2014, with a side wall falling into the pool, causing damage to brick, borders and the patio around the pool. Upon inspection, State Farm's agent found that the cover of the pool had partially fallen into the pool, and that the vinyl pool liner had a tear. State Farm covered the damage to the pool liner, but denied coverage for the in-ground swimming pool walls, the brick border and the patio surrounding the pool. State Farm maintained that the loss was due to a "collapse," which was excluded under the homeowner's policy.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Reporting Requirements for Architects under California Business and Professions Code Section 5588
December 22, 2019 —
Jordan Golden - Gordon & Rees Construction Law BlogBelow is an overview of the changes to California Business and Professions Code Section 5588 and its effect on the reporting requirements, for architects, in the construction industry.
Section 5588 Prior to 2005 Legislative Changes
Section 5588 of the California Business and Professions Code sets forth the reporting requirements for many business professionals including architects. Since 1979, Section 5588 has required architects and their insurers to report to the California Architect Board (the Board) “any settlement or arbitration award in excess of five thousand dollars ($ 5,000) of a claim or action for damages caused by the license holder’s fraud, deceit, negligence, incompetency, or recklessness in practice.”1
The language of the code section left open for interpretation the question of what types of settlement claims must be reported to the Board. Thus, in 2004, the Attorney General of the State of California published an opinion stating that a reportable settlement includes “any agreement resolving all or part of a demand for money which is based upon an insured architect’s alleged wrongful conduct.”2 He then went on to conclude that the only qualifications placed on the term “claim” for purposes of Section 5588 is that “(1) the demand be premised on the license holder’s alleged ‘fraud, deceit, negligence, incompetency, or recklessness in practice,’ and (2) the value of the claim, as measured by the settlement amount or arbitration award, exceeds $5,000.”3
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Jordan Golden, Gordon & Rees Scully Mansukhani
Best Lawyers Honors 48 Lewis Brisbois Attorneys, Recognizes Four Partners as 'Lawyers of the Year'
August 30, 2021 —
Lewis BrisboisBest Lawyers has selected 48 Lewis Brisbois attorneys across 27 offices for inclusion in its list of 2022 Best Lawyers in America. It has also recognized four Lewis Brisbois partners as "Lawyers of the Year": Cleveland/Akron Partner John F. Hill (Bet-the-Company Litigation); San Diego Partner Marilyn R. Moriarty (Medical Malpractice Law - Defendants); Portland Managing Partner Eric J. Neiman (Medical Malpractice Law - Defendants); and Sacramento Partner Eric J. Stiff (Corporate Law).
Please join us in congratulating these four partners and the following attorneys on their Best Lawyers recognition.
Seattle Partner Randy J. Aliment: Commercial Litigation
- Reno Managing Partner Jack G. Angaran: Insurance Law, Litigation - Construction, Litigation - Real Estate
- Los Angeles Partner Brian G. Arnold: Litigation - Intellectual Property, Litigation - Patent
- Los Angeles/Orange County Partner John L. Barber: Employment Law - Management, Litigation - Labor and Employment
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Lewis Brisbois