The Oregon Court of Appeals recently applied the so-called “economic loss rule” to a construction dispute (Marton v. Ater Construction Co., 256 Or App 554, __ P3d __ (2013)). Among other issues, the court decided whether the prime contractor’s negligence claim against its subcontractor was barred under the economic loss rule. Under the court-made economic … Continue Reading
Can parties waive both the commencement and length of the statutory limitation periods for construction defect actions? Yes, answered the Fourth Appellate District, by allowing the parties to contractually preclude the application of the “delayed discovery” rule that normally triggers the commencement of the limitation time period and affirming case law permitting the shortening of … Continue Reading
A reminder from the Idaho Supreme Court for parties to a construction contract: the plain language of the parties’ contract governs the obligations between them in the absence of ambiguity. In City of Meridian v. Petra, Inc., No. 39006, 2013 WL 1286014 (Idaho Apr. 1, 2013), the Idaho Supreme Court reviewed a construction dispute between … Continue Reading
Any construction litigation party faced with responding to California’s standard form interrogatories is all too familiar with the confusing use of the undefined term “incident” and the largely inapplicable “personal injury” interrogatories in a construction case. Similarly, any construction litigator dealing with the standard form interrogatories has felt the burden of sifting through the plethora of … Continue Reading
The recent case of Ewing Constr. Co. v. Amerisure Ins. Co., 2012 U.S. App. Lexis 12154 (5th Cir. June 15, 2012) reminds us that, without an endorsement adding back to the policy specific coverage for contractual liabilities, defect claims arising from work under a construction contract may not be covered. In Ewing, the contractor signed … Continue Reading
In my recent article “Evolving Concepts of ‘Fairness’ in Construction Contracts,” published in the Daily Journal of Commerce, I outline the key battlegrounds in redefining a ‘fair’ construction contract. From limited liability to contractors signing waivers and claim releases, this article provides the foundation for understanding the evolving complexities in construction contracts. To read more, click … Continue Reading
There are now 25 states in the U.S. that hold that construction defects are not an “occurrence” and are therefore not covered under commercial general liability policies insuring contractors. Couple this troubling statistic with the ever increasing number of policy exclusions and limitations, and we begin to realize that in many situations the contractor’s insurance … Continue Reading
In March of this year, the Oregon Supreme Court issued its opinion in Abraham v. T. Henry Construction, Inc. Unhappy with one aspect of the opinion, the Abrahams promptly filed a petition for reconsideration. Last week, the Oregon Supreme Court denied the Abrahams’ petition. While it was making its way through the appellate courts, Abraham provoked … Continue Reading
Last month the Oregon Supreme Court heard oral argument in Abraham v. T. Henry Construction, Inc., a residential construction defect case. Shortly after the Oregon Court of Appeals published its opinion in September 2009, Ahead of Schedule authors Eric Grasberger (“Negligence Claims Take Another Twist in Oregon” and Kip Childs (“Oregon Court of Appeals Provides Clarification … Continue Reading
Today the Consumer Product Safety Commission recommended removal of all sulfur-containing drywall from homes built with the problem drywall. The CPSC’s recommendation is contained in its Interim Remediation Guidance for Homes with Corrosion from Problem Drywall. In addition to the problem drywall, the CPSC recommends removal and replacement of all fire safety alarm systems, electrical components … Continue Reading
Four Practical Points for Avoiding and Responding to Construction Liens Step 1: Who’s healthy in 2010? Within the bounds of the Fair Credit and Reporting Act and any state obligations, it is imperative for both owners and general contractors to understand the financial fortitude of the parties doing the work. If you don’t obtain the … Continue Reading
Your project is coming along fine, despite the economy. You’ve weathered the squalls of bids, design changes, agency approval, and credit (mercifully), and now even construction completion is looking good. You can see the finish line through the haze on the horizon, and you’re fairly pleased with how you have pulled everything together with what … Continue Reading
The Consumer Product Safety Commission has spent more than $3.5 Million investigating sulfur-containing drywall in what has become one of the largest investigations in CPSC history, according to Scott Wolfson, spokesman for the CPSC. And the investigation is not done yet. During a press conference last week, the CPSC announced the release of more than 1,800 … Continue Reading
Just when you thought it was safe to go back into the water, the Oregon Court of Appeals strikes again with another iteration of the “economic loss doctrine” which defines when parties can sue each other in negligence for construction defects. In Abraham v. Henry (September 2, 2009) the Court held that parties to a … Continue Reading
The Oregon Court of Appeals recently issued an opinion in Abraham v. T. Henry Construction, Inc., et al., a residential construction defect case, that helps clarify the circumstances under which a contractor may be sued for negligence. The issue of whether a contractor may be sued for negligence, as opposed to breach of contract is, in … Continue Reading
On July 14, 2009, Oregon Governor Ted Kulongoski signed HB 2434 passed in June by the Oregon Legislative Assembly. Although a chapter number has not yet been assigned to the new act, the law will go into effect for building defect claims that arise on or after January 1, 2010. As addressed in prior Legal … Continue Reading
Oregon HB 2434, passed by the House of Representatives on May 4, 2009 and by the Senate on June 22, 2009, is currently awaiting the Governor’s approval or veto. The bill would reduce from 10 years to six years the maximum time period during which an owner of a "large commercial building" could assert claims … Continue Reading
The Portland Business Journal recently stated that Chinese drywall has been reported in Oregon. In addition, late last week the United States Consumer Product Safety Commission (“CPSC”) issued a status report on its investigation into the imported drywall. This report states that 5,503,694 sheets of Chinese drywall were imported into the United States during 2006, so … Continue Reading
On June 18, 2009 the Washington Supreme Court issued its decision in Cambridge Townhomes, et al. v. Pacific Star Roofing, Inc., et al., 81003-6. The decision touches on several issues of interest to the construction industry in Washington. In particular, the Court clarified the law about when a corporation may be held liable as a … Continue Reading
Our Sean Gay recently blogged here and here about recent complaints out of Florida and elsewhere concerning defective Chinese-manufactured drywall that emits noxious sulfur gas and has been linked to problems with electrical and air conditioning systems. The latest news is that several such claims have recently been consolidated into a single federal class action … Continue Reading
On March 5 2009 the Supreme Court of Washington issued a 6-3 decision in WA State Major League Baseball Stadium Public Facilities District v. Huber, Hunt & Nichols-Kiewit Construction, No. 81029-0, in which the court held that the 6-year the statute of limitations for breach of contract did not apply to a construction defect claim … Continue Reading
Since we first blogged about Chinese drywall, homeowners in at least 19 states, including Washington and California, have reported problems associated with defective drywall. Late last year, U.S. Consumer Product Safety Commission (CPSC) began receiving complaints about damage to homes constructed with drywall manufactured in China. The drywall reportedly contains elevated sulfur levels, which have … Continue Reading
The Oregon Court of Appeals recently issued a ruling in the case of Waxman v. Waxman & Assoc., Inc. that resolves two significant issues regarding the statute of limitations in certain construction defect cases. First, the court ruled that where a plaintiff’s claim is based upon breach of contract, the applicable statute of limitations is … Continue Reading
With the widespread use Chinese products, it had to happen sooner or later—a construction defect made in China. According to the Wall Street Journal, gypsum wallboard—otherwise known as drywall—manufactured in China is releasing sulfur gases, which can smell foul and cause corrosion. Apparently the sulfur, a noxious chemical, has been linked to problems with air … Continue Reading
