Cyberrisks to Contractors and Securing Proper Coverage
6/29/18
By: Barry Brownstein Increasingly sophisticated hackers have targeted personal and business data held by companies like Target Corp., Sony Corp., Equifax Inc. and Yahoo Inc. during the past decade. The construction industry is just as susceptible to these risks as any other industry. As construction projects increase in size and there is more sharing of…
Little Miller, Big Implications
6/20/18
By: Samantha Skolnick In Georgia, when an individual performs work on a state construction project, they can file a lien for non-payment. The lien is against the project through Georgia’s Little Miller Act. The claim itself is not against the state or county’s actual property. The claim is against a posted bond, and is a…
Pay-When-Paid Clauses: A Cautionary Tale
3/28/18
By: Jake Carroll With the recent surge of construction projects in Georgia, the memories of owner and developer bankruptcies following the 2008 financial crisis may have grown dim. Nevertheless, material suppliers and subcontractors must remember that when the pace slows down, their contracts could leave them without remedy or recourse to seek payment. One of…
Cumis Counsel Limited: Insurer-Appointed Counsel Requires Actual Conflict of Interest
2/9/18
By: David G. Molinari The California Third District Court of Appeals has ruled that the right to Cumis counsel, independent counsel paid by the insurer (San Diego Federal Credit Union v. Cumis Insurance Soc’y, 162 Cal. App. 3d 358 (1984)) requires an actual as opposed to a potential conflict. In Centex Homes v. Saint Paul…
Georgia Court of Appeals Upholds Statute of Limitations Defense in Exterior Siding Case
1/9/18
By: Jan S. Sigman In Georgia, a negligent construction action must be brought within four years from when the right of action accrues. The right of action accrues when the plaintiff first could have maintained the action to a successful result, which means substantial completion of the project in original construction cases or the sale…
12/22/17
By: Jake Carroll Given the pace of construction in Florida over the past three decades, it should come as no surprise that the Sunshine State has a robust statutory scheme for construction defect claims. Indeed, Florida’s Construction Defects Statute, Chapter 558, Florida Statutes (“FCDS”), outlines a complex pre-suit procedure requiring owners to send a “notice…
Professional Negligence Claim Against Georgia Design Professional Survives Economic Loss Rule
11/27/17
By: Cheryl H. Shaw Georgia’s economic loss rule bars recovery in tort for economic losses arising from a contract. The idea behind the rule is that simple: When a dispute involves strictly economic losses, the parties should resolve their claims based on the standards set out in their contract and not judicially-created tort duties. The…
11/1/17
By: Cheryl H. Shaw 82-year old Frances Robinette died in a New Orleans nursing home four days after Hurricane Katrina struck. Robinette had been a resident of the facility for two years and suffered a host of medical issues including congestive heart failure and dementia. Shortly after Katrina made landfall, water entered the nursing home…
When is Engineering Required? City of Atlanta Issues New Code Interpretation
10/18/17
By: Cheryl H. Shaw The City of Atlanta recently published its second International Residential Code interpretation of 2017, confirming that structural designs utilizing Structural Composite Lumber (SCL) must be designed and sealed by an engineer licensed to practice within the State of Georgia. The stated purpose of the binding interpretation is to provide consistency between…
LOL (Limitation of Liability) Clauses in A&E Contracts: He who laughs last, laughs best
10/11/17
By: Cheryl H. Shaw It’s no coincidence that the abbreviation for “Limitation of Liability” is LOL. That’s the reaction design professionals often get when they include an LOL clause in a contract proposal. LOL or “exculpatory” clauses limit the designer’s liability for future claims—usually to the cost of services or a fixed dollar amount. Clients…
Homebuilder Defamed By Online Reviewer
8/8/17
By: Ze’eva R. Kushner After approximately three years of litigation, a jury in Gwinnett County, Georgia recently found that a homebuilder had been defamed by an individual’s online review of the homebuilder and awarded the plaintiffs $120,000 in damages and $12,000 in legal fees. As we all know, it can be difficult to determine the identity of…
Florida Statute of Repose Clarified
8/7/17
By: S. Jake Carroll While the statute of limitations may limit a contractor’s exposure to claims for repair or replacement of defective construction work, many states have also enacted so-called “Statutes of Repose” designed to lay to rest any actions arising from the design or construction of a building or structure after the passage of…