ANAHEIM CALIFORNIA CONSTRUCTION EXPERT WITNESS
DIRECTORY AND CAPABILITIES

Recent Statutory Changes Cap Retainage on Applicable Construction Projects

March 11, 2024 — Patrick McKnight - The Dispute Resolver
Recent reforms to certain state retainage laws have reduced the lawful amount of withholding permitted on construction projects. In theory, retainage allows an owner to mitigate the risk of incomplete or defective work by withholding a certain portion of payment until the construction project is substantially complete. Recent statutory developments in Washington, New York, and Georgia represent significant changes in how much an owner may retain on applicable construction projects in those jurisdictions. The details of each state’s retainage laws vary in many important respects. Most states set caps at 5% or 10%, with important variations depending on the type of project and the amount of progress completed. Some states require retainage to be held in an escrow account, but most do not. Many federal construction projects allow up to 10% retainage, while other federal agencies do not require any retention. See 48 CFR § 52.232-5(e) - Payments Under Fixed-Price Construction Contracts. The ongoing motivation for retainage reform is typically framed in terms of reducing delays in getting payment to subcontractors who complete their scope of work on time and free from defects. Read the full story...
Reprinted courtesy of Patrick McKnight, Fox Rothschild LLP
Mr. McKnight may be contacted at pmcknight@foxrothschild.com

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Subrogation Waiver Unconscionable in Residential Fuel Delivery Contract

April 29, 2024 — Ryan A. Bennett - The Subrogation Strategist
In 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 LLP
Mr. Bennett may be contacted at bennettr@whiteandwilliams.com

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A Matter Judged: Subrogating Insurers Should Beware of Prior Suits Involving the Insured

March 25, 2024 — Gus Sara - The Subrogation Strategist
In New Jersey Mfrs. Ins. Co. v. Lallygone LLC, No. A-2607-22, 2024 N.J. Super. Unpub. LEXIS 120, the Appellate Division of the Superior Court of New Jersey (Appellate Division) considered whether New Jersey Manufacturers Insurance Company (the carrier) could bring a subrogation action after its insured, Efmorfopo Panagiotou (the insured), litigated and tried claims related to the same underlying incident with the same defendant, Lallygone LLC (the defendant). The Appellate Division affirmed the trial court’s finding that the prior lawsuit extinguished the carrier’s claims. In Lallygone LLC, the insured hired the defendant to renovate a detached garage on his property. In March 2022, while the defendant’s employees were removing existing concrete slabs, the garage collapsed. After the incident, the insured stopped paying the defendant. In addition, the insured filed a claim with the carrier, which ultimately paid the insured over $180,000 for the damage under its property policy. The carrier sent a subrogation notice letter to the defendant. Read the full story...
Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

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Now Available: Seyfarth’s 50 State Lien Law Notice Requirements Guide (2023-2024 Edition)

December 23, 2023 — Seyfarth Shaw LLP
Seyfarth’s Construction team is pleased to announce the release of our 2023-2024 edition of the 50 State Lien Law Notice Requirements Guide. The Guide provides the general time requirements for filing lien notices in each state, plus Washington, DC. Reprinted courtesy of Seyfarth Shaw LLP Read the full story...

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The Black Woman Architect Who Hopes to Change the Face of Design in America

January 16, 2024 — Kriston Capps - Bloomberg
In the US, only 2% of licensed architects are Black. Less than a single percent are Black women. Architects tend to be older, White and men, as reflected by the leadership of both firms and professional groups. So when the American Institute of Architects inaugurated its 100th president, Kimberly Dowdell — the first Black woman to lead the association, and at 40 the youngest architect to ever hold the post — it suggested an optimistic change of course. A principal and director of strategic relationships for the global design firm HOK, Dowdell comes to her new position from a leadership background. She has served as the president of the National Organization of Minority Architects and sits on the board of the Chicago Central Area Committee and Chicago Architecture Biennial, among other groups. She is the winner of both the AIA’s Young Architects Award and the Women in Architecture award from Architectural Record. Dowdell spoke to Bloomberg CityLab about her goals as AIA president, the challenges facing the field and why every city should hire its own chief architect. Read the full story...
Reprinted courtesy of Kriston Capps, Bloomberg

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Cincinnati Team Secures Summary Judgment for Paving Company in Trip-and-Fall Case

February 05, 2024 — Lewis Brisbois
Cincinnati, Ohio (January 25, 2024) - In a recent decision by the Oldham County Circuit Court, Lewis Brisbois Partner Andrew Weber and Associate Jason Paskan obtained summary judgment for a paving company client after successfully arguing that their client did not owe the plaintiff a duty at the time leading up to her trip and fall. Although the court concluded that there was a genuine issue of fact as to whether a parking space wheel stop actually caused her fall, the court noted that whether the wheel stop “constituted an unreasonably dangerous condition necessitating a duty to eliminate them or warn of them is an entirely different matter.” Rebecca Reynolds v. Baptist Healthcare System, Inc., et al., Oldham Circuit Court Case No. 21-CI-00236, *6 (Dec. 21, 2023). The plaintiff in Reynolds drove to the hospital with her sister-in-law for medical testing. Id. at * 2. While both had been to the hospital before, due to COVID and construction in the emergency department, they had to take a different entrance into the hospital. Id. In the plaintiff’s attempt to navigate the parking lot, she allegedly tripped over a black wheel stop that was covered by a shadow. Id. The plaintiff sued the hospital as the landowner and the paving company working in the hospital’s parking lot, among others, under the theory that the failure to stripe the wheel stop, closing off spaces with the black wheel stops, or posting warnings about the condition of the parking lot would have prevented her fall. Id. at *2-3. Read the full story...
Reprinted courtesy of Lewis Brisbois

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Insurers Dispute Sharing of Defense in Construction Defect Case

May 13, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The California Court of Appeal affirmed the trial court's decision that the defending insurer was not entitled to reimbursement of defense costs from another insurer based upon a subcontract and additional insured endorsement. Zurich Am. Ins. Co. v. Old Republic Gen. Ins. Corp., 2024 Cal. App. Unpub. LEXIS 1261 (Cal. Ct. App. Feb. 28, 2024). Martin McNerney Development Company (McNerney) entered a construction contract to perform seismic upgrades and tenant improvements for condominiums. McNerney and Broadway Mechanical Contractors, Inc. (Broadway) entered a "Subcontract Agreement" under which Broadway was to perform plumbing work at the project. The agreement required Broadway to maintain general liability insurance naming McNerney as an additional insured for work performed on the project, including completed operations. The subcontract also required Broadway to indemnify and hold McNerney harmless with respect to all claims for damage to property arising out of work performed by Broadway. Broadway completed its work on the project in September 2007. Broadway issued a one-year warranty for its work on the project. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Largest Dam Removal Program in US History Reaches Milestone

December 11, 2023 — Mary K. Miller - Engineering News-Record
All work associated with removal of the first of four hydroelectric dams slated for demolition on the Klamath River completed in early November, according to the dam owner, Klamath River Renewal Corp. Demolition of the four dams on the Klamath River that flows through parts of Oregon and California is the largest dam removal project in U.S. history. Reprinted courtesy of Mary K. Miller, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story...

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