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Hurricane Helene Highlights Large Gap in Florida's Flood Insurance
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Rhode Island filed a lawsuit against 13 companies that provided design, construction, and inspection services over the past ten years to the Washington Bridge, which carries I-195 between East Providence and Providence.
Rhode Island Closes One Bridge and May Have Burned Others with Ensuing Lawsuit
Monday, October 7, 2024
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Bill Wilson - Construction Law Zone
The state of Rhode Island recently filed a lawsuit against 13 companies that provided design, construction, and inspection services over the past ten years (the extent allowed by the applicable statute of limitations) to the Washington Bridge, which carries I-195 between East Providence and Providence. The bridge was abruptly closed in December 2023 following the discovery of alleged fractured steel tie-downs critical to the bridge’s stability and additional deterioration in cantilever beams throughout the bridge. Before the closure, approximately 90,000 vehicles per day traveled over the bridge.
The complaint alleges that the defendants, the majority of which are experienced, industry-leading firms in their respective fields, were negligent and breached their respective contracts with the State. The State contends that every company that worked on the bridge over the past ten years missed the serious structural conditions alleged. The lawsuit also claims that the State has suffered millions of dollars of damages since the bridge was closed and seeks indemnity and contribution from all defendants to the extent that the State may be liable to third parties in the future.
Reprinted courtesy of Bill Wilson, Robinson & Cole LLP
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Plaintiff discovered that the pitch of the stairs had changed, and replacement of the stairs was required to fix the issue.
Policy's One Year Suit Limitation Does Not Apply to Challenging the Insurer's Claims Handling
Monday, October 7, 2024
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Tred R. Eyerly - Insurance Law Hawaii
The California Supreme Court held that the policy's suit limitation of one year, consistent with the statute requiring suit be file within twelve months after a loss, did not apply to claims alleging violation of the state's unfair competition law (UCL). Rosenberg-Wohl v. State Farm Fire and Cas. Co., 2024 Cal. LEXIS 3806 (Cal. July 18, 2024).
Plaintiff held a homeowners policy issued by State Farm that provided coverage for all risks except those specifically excluded under the policy. The suit limitation provision provided, "Suit Against Us. No action shall be brought unless there has been compliance with the policy provision.The action must be started within one year after the date of loss or damage."
On two occasions in late 2018 or early 2019, plaintiff's neighbor stumble and fell as she descended a staircase at plaintiff's residence. Plaintiff discovered that the pitch of the stairs had changed, and replacement of the stairs was required to fix the issue. She contacted State Farm on or around April 23, 2019. On August 9, 2019, plaintiff submitted a claim to State Farm, seeking reimbursement for what she paid to repair the staircase. State Farm denied the claim, advising there was no coverage and identifying several exclusions as potentially applicable.
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com
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It is not quite as simple as the law of the project site always governs.
Choice of Law Provisions in Construction Contracts
Monday, October 7, 2024
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Victoria Davies - ConsensusDocs
If you have used a ConsensusDocs® construction agreement or another industry association construction agreement for one of your projects, you are accustomed to seeing the laws of the state where the construction project is located as the governing law. There are good reasons for the laws of the state where the project is located to govern the construction agreement for the project. Even if not headquartered in the state, the parties have a presence there by virtue of their participation in the project in the state. Personnel and records that may be needed to resolve a claim may be located in the state. If there are experts that need to be engaged, they will likely need to visit the site. These reasons of efficiency and convenience, alone, may justify the parties’ decision to select the project state’s laws to govern their construction contract. However, there is also the policy interest of the project state, whose laws may even mandate that the project state’s laws govern construction contracts for in-state projects and that the parties resolve their disputes in state as well.
Several states have laws that require construction disputes for projects in the state to be resolved under its laws and/or litigated or arbitrated in the state. Some states require only that its laws govern and do not also require that the dispute resolution take place in the state, but some require both – that its laws govern and the disputes be resolved there. There may be different triggers as to when the statute applies. For example, in some states, the statute applies to any construction contract for a project in the state. In others, the law may only be triggered if one of the parties is domiciled in the state.
Reprinted courtesy of Victoria Davies, Jones Walker LLP
Ms. Davies may be contacted at vdavies@joneswalker.com
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NCCER Launches New Construction Foreman Certification Program
October 7, 2024 — The National Center for Construction Education and Research
ALACHUA, Fla., Oct. 02, 2024 (GLOBE NEWSWIRE) -- The National Center for Construction Education and Research (NCCER) released its new Construction Foreman Certification Program, another comprehensive program in its Construction Leadership Series. Developed in conjunction with industry subject matter experts, this online training and certification program provides a flexible, turnkey solution to train and qualify current and upcoming foremen in the critical areas of people management, communication, quality, safety and productivity.
Research from the Construction Industry Institute highlights a significant gap in formal training for construction foremen, as many craft professionals are promoted to foreman without the proper preparation. The research further states that industry investment in training for foremen is "one of the biggest opportunities for the industry to improve productivity and performance," yet many contractors cite time and resource constraints as barriers.
NCCER's new foreman training program eliminates these barriers by providing a self-paced, online program accessible anytime, anywhere. The engaging courses include audio, text, activities and videos with industry leaders talking to individuals through practical, real-world lessons.
Learn more about NCCER's Construction Foreman Certification Program at nccer.org/foreman.
Choosing the Right Insurance When Converting a Commercial Building for Residential Use
October 7, 2024 — Scott Bedingfield - Construction Executive
Converting an office building to residential use can be a significant endeavor, and part of that process involves insuring the property adequately during the conversion.
STEPS TO CONSIDER
Assess the conversion: Thoroughly assess the building's conversion from office to residential use.
Check zoning regulations: Ensure the project complies with local building codes, zoning regulations and safety standards.
Access structural modifications: Evaluate whether any structural changes are needed to convert the space to residential. This might include adding bedrooms, bathrooms and a kitchen if they don't already exist.
Permits: Make sure to obtain the necessary permits for the conversion. Each area has its own building codes and regulations for residential properties. Make sure to comply with all safety and structural requirements.
Electrical and plumbing: Ensure that the electrical and plumbing systems are up to code for residential use.
Reprinted courtesy of Scott Bedingfield, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Confidence Rises Among US Home Builders as They Await Fed Move
October 7, 2024 — Michael Sasso - Bloomberg
Confidence among US home builders rose in September for the first time in six months, just before the Federal Reserve is expected to cut interest rates from the current two-decades high.
A gauge of housing market conditions from the National Association of Home Builders and Wells Fargo climbed 2 points to 41 this month, matching the median estimate of economists surveyed by Bloomberg. All regions saw an increase.
Measures of prospective-buyer traffic and present sales rose off their 2024 lows. And an outlook index for the next six months increased 4 points to 53, its biggest gain since January.
Chicago Build 2024 Expo
October 7, 2024 — Beverley BevenFlorez – CDJ Staff
Chicago Build will have over 400 speakers that will discuss “Future of Construction, Sustainability, Architecture, Digital Construction, Real Estate and more.” The event consists of “speakers, AIA CES training, 300+ exhibitors, networking parties, live music, entertainment, DJs, street performers” and more.
October 22nd-23rd, 2024
McCormick Place
2301 S. Dr. Martin Luther King Jr. Drive
Chicago, IL, 60616
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A Miller Act payment bond surety and its principal general contractor both sued in federal court in New Orleans by a project subcontractor sought to compel arbitration the claims against both contractor and surety based on an indisputably enforceable arbitration clause in the subcontract.
“A No-Lose Proposition?”
Monday, October 7, 2024
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Daniel Lund III - Lexology
A Miller Act payment bond surety and its principal general contractor both sued in federal court in New Orleans by a project subcontractor sought to compel arbitration the claims against both contractor and surety based on an indisputably enforceable arbitration clause in the subcontract. This was urged to avoid separate actions against the contractor (arbitration) and its surety (litigation), even though the surety was not a party to the subcontract and, therefore, not a party to the arbitration clause.
In the face of the lack of an express agreement to arbitrate, the contractor and contractor argued that “no federal statute or policy prohibits all of Plaintiff’s claims from proceeding to arbitration….” Additionally, those parties urged that the surety should be allowed to affirmatively compel arbitration because the surety “would otherwise have the ability to assert the right to compel arbitration as a defense….”
The New Orleans federal district court was unpersuaded:
“[D]istrict courts within this circuit have recognized that ‘Miller Act claims by a subcontractor for unpaid labor and materials are separate and distinct from those for general breach of contract… [and] arbitration and Miller Act suits, are not, per se, inconsistent with one another.’…[A]bsent express contractual intent to subject Miller Act claims to arbitration, the court [will] not force the parties to arbitrate claims against nonparties to the contract at issue…. [C]laims against a surety, which was a non-signatory to the contract, would not be subject to arbitration without any contractual basis to do so.”
Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com
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Milton now bests Hurricane Beryl, which raked Texas, Mexico and the Caribbean in July, as the most powerful Atlantic storm this season.
Hurricane Milton Barrels Toward Florida With 180 MPH Winds
Monday, October 7, 2024
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Brian K Sullivan & David R Baker - Bloomberg
Milton exploded into the Atlantic’s strongest hurricane this year, bearing down as a catastrophic Category 5 storm on a Florida region still struggling to recover from Helene’s devastation.
Milton’s top winds reached 180 miles (290 kilometers) per hour, up from 90 mph just 16 hours earlier, the US National Hurricane Center said in an advisory at 5 p.m. New York time. Milton now bests Hurricane Beryl, which raked Texas, Mexico and the Caribbean in July, as the most powerful Atlantic storm this season.
With winds this intense, Milton is capable of collapsing homes, flattening trees and triggering power outages that could last weeks to months. It’s difficult for hurricanes to maintain their maximum strength for long, however, so Milton’s winds may drop as it nears Florida’s west coast. Only four Category 5 hurricanes have hit the US mainland, including Michael, which struck Florida’s Panhandle in 2018.
Reprinted courtesy of Brian K Sullivan, Bloomberg and David R Baker, Bloomberg
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Along with agency and Federal Highway Administration officials, state engineers viewed the extensive damage along I-40 in the Pigeon River Gore on Sept. 30.
North Carolina, Tennessee Prepare to Start Repairing Helene-damaged Interstates
Monday, October 7, 2024
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Derek Lacey - Engineering News-Record
Damage from Hurricane Helene to interstates between North Carolina and Tennessee includes washed-out roads and bridges, landslides and extensive flooding—creating a long list of repair work needed for state transportation agencies as they prepare to rebuilding critical highways across the Appalachian Mountains.
Reprinted courtesy of Derek Lacey, Engineering News-Record
Mr. Lacey may be contacted at laceyd@enr.com
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E&S Insurer talks to Kyle Sternadori, head of wholesale excess casualty at Navigators, a brand of The Hartford.
Navigating Casualty Challenges and Opportunities
Monday, October 7, 2024
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Kyle Sternadori - The Hartford
US casualty has arguably been the hottest topic in the sector over the last year amid growing concerns over deteriorating loss trends. E&S Insurer talks to Kyle Sternadori, head of wholesale excess casualty at Navigators, a brand of The Hartford.
Featured in the July 2024 edition of E&S Insurer.
How are you approaching current E&S excess casualty market dynamics?
We are focusing on loss trends, such as rising loss costs, and staying ahead of those trends. As an excess market there are ways to do that: managing capacity and limits deployment across the portfolio; working internally amongst claims, actuarial, data science to stay ahead of that; and using your own data. Staying ahead of the curve is essentially what we're trying to do.
It started for us probably even before the market hardened. You saw towers of coverage that used to be maybe three markets and nowadays it could be 10 to 15 markets for similar coverage, with each market minimizing its downside.
Reprinted courtesy of Kyle Sternadori, The Hartford
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Over the next five years, the EEOC intends to prioritize the mitigation of systemic workplace problems and the historical underrepresentation of women and workers of color in the construction sector.
What Construction Firm Employers Should Do Right Now to Minimize Legal Risk of Discrimination and Harassment Lawsuits
Monday, October 7, 2024
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Anthony LaPlaca, Dawn Solowey, Andrew Scroggins & Adrienne Lee
Seyfarth Synopsis: In June 2024, Seyfarth published a blog article warning construction industry employers of recent anti-harassment guidelines issued by the EEOC. We predicted that the EEOC has “put the construction industry squarely in its sights.”[1] In this follow-up Alert, we discuss recent cases confirming the renewed regulatory focus on the construction sector, which demonstrate the need to put in place sound practices for non-discriminatory recruitment, hiring, and training of the work force in order to be prepared for this heightened risk of government scrutiny.
Recent EEOC Settlements
The U.S. Equal Employment Opportunity Commission (EEOC) has indicated, in no uncertain terms, that over the next five years it intends to prioritize the mitigation of systemic workplace problems and the historical underrepresentation of women and workers of color in the construction sector.[2] Two recent cases confirm that the EEOC is true to its word when it comes to tackling racial and gender disparities in the construction work force.
In August 2024, the EEOC secured two consent decrees with two separate construction firms in Florida, totaling nearly $3 million.
Reprinted courtesy of Anthony LaPlaca, Seyfarth, Dawn Solowey, Seyfarth, Andrew Scroggins, Seyfarth and Adrienne Lee, Seyfarth
Mr. LaPlaca may be contacted at alaplaca@seyfarth.com
Ms. Solowey may be contacted at dsolowey@seyfarth.com
Mr. Scroggins may be contacted at ascroggins@seyfarth.com
Ms. Lee may be contacted at aclee@seyfarth.com
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Pillsbury's Real Estate & Construction Law Team discusses recent industry news.
Real Estate & Construction News Roundup (9/4/24) – DOJ Sues RealPage, Housing Sales Increase and U.S. Can’t Build Homes Fast Enough
Monday, October 7, 2024
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Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, environmental regulations tighten for commercial properties, Wells Fargo sells most of its commercial mortgage services business, first-time home buyers struggle with housing affordability, and more!
- The U.S. Department of Justice announced that it is suing the real estate company RealPage, saying it engaged in a price-fixing scheme to drive up rents. (Jennifer Ludden, NPR)
- As environmental regulations for commercial buildings and properties tighten across the U.S., green leases and technologies offer owners and operators opportunities to reduce their portfolios’ carbon footprints, generate cost savings and further align with ESG goals. (Nish Amarnath, Construction Dive)
- Wells Fargo & Co. agreed to sell most of its commercial mortgage servicing business to Trimont LLC, ceding the title of biggest US commercial and multifamily mortgage servicer to the Atlanta-based firm. (Hannah Levitt and Scott Carpenter, Yahoo)
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team
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Time Capsule Discovered Under San Francisco's Iconic Transamerica Pyramid – EXCLUSIVE
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Noelle Natoli was recently installed as the 2024-25 president of the Women Lawyers Association of Los Angeles (WLALA).
Kahana Feld Partner Noelle Natoli Named President of Women Lawyers Association of Los Angeles
Monday, October 7, 2024
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Linda Carter - Kahana Feld
LOS ANGELES – Sep. 16, 2024 – Kahana Feld is pleased to announce that partner Noelle Natoli was recently installed as the 2024-25 president of the Women Lawyers Association of Los Angeles (WLALA).
The mission of WLALA is to promote the full participation in the legal profession of women lawyers and judges from diverse perspectives and backgrounds, maintain the integrity of our legal system by advocating principles of fairness and equality, and improve the status of women by supporting their exercise of equal rights.
Natoli is a partner based in Kahana Feld’s Los Angeles office and focuses her civil trial practice on the defense of both insurers and insureds primarily in the areas of elder abuse, transportation defense, and general liability. Her clients include individuals, family-owned businesses, and national corporations. Natoli also chairs the Diversity & Inclusion Committee for the Trucking Industry Defense Association and serves as a board member of the National Conference of Women’s Bar Associations.
Reprinted courtesy of Linda Carter, Kahana Feld
Ms. Carter may be contacted at lcarter@kahanafeld.com
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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.
ASCE Statement on Devastating Impacts of Hurricane Helene
Monday, October 7, 2024
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Marsia Geldert-Murphey, P.E., President - American Society of Civil Engineers
WASHINGTON, 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.
The boom has now been imperiled by a storm that is expected to stack up as one of the five costliest in US history.
‘The Ground Just Gave Out’: How a Storm’s Fury Ravaged Asheville
Monday, October 7, 2024
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Michael Smith, Devon Pendleton, Claire Ballentine & Michael Sasso - Bloomberg
Eric Becker was at his vacation home in western North Carolina, in a community bordering the Pisgah National Forest and Blue Ridge Parkway, when the rain began to pour.
Becker, co-founder of the private wealth management firm Cresset, lives in Florida for most of the year. He had lived through a hurricane — but nothing like what he saw during Helene.
“Mud was liquefying around tree bases. You could see the root systems,” said Becker, who first began visiting the Asheville area 20 years ago and was smitten by its natural scenery, excellent food and lively arts and music scene. “The ground just gave out.”
Becker is part of a wave of affluent homebuyers who have flocked to the southern Appalachian region. Transplants from wealth managers and retirees to artists and young outdoors enthusiasts have helped create a real estate goldrush in cities including Asheville, where home prices have climbed 69% in the past five years.
Reprinted courtesy of Michael Smith, Bloomberg, Devon Pendleton, Bloomberg, Claire Ballentine, Bloomberg and Michael Sasso, Bloomberg
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In hard-hit Asheville, N.C., water treatment and distribution facilities have been heavily damaged.
Repairs to Water Infrastructure Underway After Hurricane Helene
Monday, October 7, 2024
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Derek Lacey - Engineering News-Record
As transportation officials in Tennessee and North Carolina brace for long rebuilds of heavily damaged interstates in remote and rugged areas of the Appalachian Mountains, local agencies are also at work restoring water and sewer services to residents nearly one week after Hurricane Helene made landfall.
Reprinted courtesy of Derek Lacey, Engineering News-Record
Mr. Lacey may be contacted at laceyd@enr.com
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