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Reporting Requirements for Architects under California Business and Professions Code Section 5588

December 22, 2019 — Jordan Golden - Gordon & Rees Construction Law Blog
Below 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 Read the court decision
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Reprinted courtesy of Jordan Golden, Gordon & Rees Scully Mansukhani

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Colorado Temporarily Requires Employers to Provide Sick Leave While Awaiting COVID-19 Testing

April 06, 2020 — Shawna Ruetz - The Grindstone Lewis Brisbois Labor & Employment Blog
On March 11, 2020, the Colorado Department of Labor and Employment (CDLE) issued emergency rules, referred to as Colorado Health Emergency Leave with Pay (Colorado HELP) Rules, requiring employers in certain industries to provide four days of paid sick leave to employees with flu-like symptoms while awaiting test results for COVID-19, or to anyone who is under instructions from a healthcare provider to quarantine or isolate due to a risk of having COVID-19. These rules take effect immediately for 30 days, or longer if the state of emergency declared by Colorado Governor Polis continues. Which industries are covered by the Colorado HELP Rules?

• Leisure and hospitality;
• Food services;
• Child care;
• Education (including transportation, food service, and related work at educational establishments);
• Home health (if working with elderly, disabled, ill, or otherwise high-risk individuals)
• Nursing homes; and
• Community living facilities; and
• Retail establishments that sell groceries (added March 26).

How much paid sick leave must be provided? Employers are required to provide up to four days of paid sick leave to employees with flu-like symptoms who are being tested for COVID-19. If the employee tests negative, the leave ends. Read the court decision
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Reprinted courtesy of Shawna Ruetz, Lewis Brisbois
Ms. Ruetz may be contacted at Shawna.Ruetz@lewisbrisbois.com

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A Few Things You Might Consider Doing Instead of Binging on Netflix

April 13, 2020 — Garret Murai - California Construction Law Blog
Governments throughout the world have issued “shelter in place” orders requiring that residents stay at home except for “essential” purposes. As a result, in the United States, more than a third of Americans have been ordered to stay at home. This, in turn, has had a direct impact on construction projects which have slowed or have been temporarily shuttered altogether, and it will (not may) have an impact on the flow of project funds. So what can project owners and contractors do? We’ve got a few tips. 1. Read Your Contract, Paying Particular Attention to Force Majeure, No Damages for Delay and Notice Provisions For the most part, with the exception of statutory rights and remedies which we will discuss below, your contract spells out your rights and remedies should the proverbial “S” hit the fan. It is, in other words, the rules you agreed to, and you should know what those rules provide. Three provisions you should look for, and if they’re in your contract, you should review carefully are: (1) Force majeure provisions; (2) No damages for delay provisions; and (3) notice provisions. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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U.S. Supreme Court Oral Arguments: Maritime Charters and the Specter of a New Permitting Regime

February 24, 2020 — Anthony B. Cavender - Gravel2Gavel
Earlier this month, the Supreme Court heard oral arguments in two important environmental cases—one that could change the approach to routine maritime charters and another that could introduce a potentially punishing permitting regime via a CWA citizen suit. Cleaning the Delaware: CITGO Asphalt Refining Company v. Frescati Shipping Company The CITGO case involves a large oil spill into the Delaware River, and who bears financial responsibility for the cleanup. CITGO chartered an oil tanker to bring Venezuelan crude oil to CITGO’s New Jersey refinery located on the Delaware River. The tanker struck a submerged and abandoned anchor within yards of the refinery, and a large and expensive oil spill resulted. In accordance with the Oil Pollution Act, both the shipper, Frescati Shipping Company, and the United States, paid for the immediate oil spill response, and CITGO was later sued for a large share of these costs based on the fact that it entered into a charter with Frescati, which obliged CITGO to provide a “safe berth.” The U.S. Court of Appeals for the Third Circuit held that CITGO was liable under the principles of maritime law, meaning that CITGO was strictly liable for the spill even if no one knew that the anchor was present on the floor of the river or lurking in the waters of the Delaware River. CITGO has argued that this result is unfair and poses a threat to the maritime shipping industry if it is held to be strictly liable for this spill. It appears that this is may well be the majority rule that is applied when interpreting these routinely entered maritime charters. The Court’s decision will be immensely important to the shipping industry. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

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Insurer Rejecting Construction Defect Claim Must Share in Defense Costs

March 02, 2020 — Tred R. Eyerly - Insurance Law Hawaii
One insurer, who accepted the tender of defense in a construction defect case, successfully moved for summary judgment against the second insurer, who denied the insured's tender. Interstate Fire & Cas. v. Aspen Ins. UK Ltd., 2019 N.Y. Misc. LEXIS 5800 (N.Y. Sup. Ct. Oct. 25,2019). Standard Waterproofing Corporation was hired by the construction manager, G Builders, to perform waterproofing work as part of condominium conversion project. After the project was completed,the condominium occupants experienced water damage in their units. The Condominium Board retained an engineer who reported numerous issues of water infiltration relating to Standard's work. The Condominium Board filed suit against the construction manager, who filed a third party complaint against Standard. Standard tendered to four different insurers, including plaintiff Interstate and defendant Aspen. Interstate agreed to defend, while Aspen and the other two insurers declined. Aspen argued there were no allegations of an occurrence resulting in property damage during its policy periods. Interstate filed for declaratory relief against Aspen and Standard. Read the court decision
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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’s Time to Include PFAS in Every Property Related Release

June 01, 2020 — John Van Vlear & Gregory Tross - Newmeyer Dillion
While the federal government and states (including California) are working on establishing standards and how to manage the toxic chemicals known as PFAS (as defined below), certain states and banks are requiring testing for PFAS to approve no-further-action (NFA) determinations or to underwrite loans. PFAS do not easily fit within standard definitions of hazardous substances used in today’s agreements. Thus, if you want to ensure you and your successors are released for PFAS which later environmental testing may reveal, ensure such is specifically listed in your releases. What Are PFAS As depicted in the recent major-release movie Dark Waters, PFAS are a group of very stable man-made chemicals that are both toxic and ubiquitous. They are long-chain chemicals which means they do not naturally degrade easily. Reprinted courtesy of John Van Vlear, Newmeyer Dillion and Gregory Tross, Newmeyer Dillion Mr. Vlear may be contacted at john.vanvlear@ndlf.com Mr. Tross may be contacted at greg.tross@ndlf.com Read the court decision
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Karen Campbell, Kristen Perkins to Speak at CLM 2020 Annual Conference in Dallas

March 02, 2020 — Karen Campbell & Kristen Perkins - Lewis Brisbois
New York Partner Karen L. Campbell and Fort Lauderdale Partner Kristen D. Perkins will both speak at the upcoming CLM 2020 Annual Conference taking place March 18 to 20 at the Gaylord Texan Resort outside Dallas, Texas. On March 19 at 2:00 p.m., Ms. Perkins will join a panel discussion titled “Predictive Analytics – You Don’t Need a Crystal Ball to Predict the Future,” exploring how predictive analytics affects litigation management programs, including case budgets, case cycle times, and claims outcomes. The panelists will also look at how machine learning picks up on nuances or anomalies that can affect analytics and give attendees a clearer picture on expected case parameters, and how that information can empower claims professionals during firm selection. Then, on March 20 at 10:40 a.m., Ms. Campbell will join a roundtable discussion titled “How to Calculate Damages and Defend in Serious Injury Cases,” covering the calculation of both economic and non-economic damages, as well as trends and recent verdicts involving punitive damages and assessing the various types of third-party liability. Reprinted courtesy of Karen Campbell, Lewis Brisbois and Kristen Perkins, Lewis Brisbois Ms. Campbell may be contacted at Karen.Campbell@lewisbrisbois.com Ms. Perkins may be contacted at Kristen.Perkins@lewisbrisbois.com Read the court decision
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Emergency Paid Sick Leave and FMLA Leave Updates in Response to COVID-19

April 06, 2020 — Yvette Davis & Kyle R. DiNicola - Haight Brown & Bonesteel
The Families First Coronavirus Response Act (“FFCRA”) was signed by the President on March 18, 2020 and will become effective no later than April 2, 2020. The law contains numerous updates to the country’s employment regulations in response to the Coronavirus pandemic of which employers should be familiar. Of particular note, the FFCRA makes limited amendments to the Family and Medical Leave Act. Now, pursuant to the Emergency Family and Medical Leave Expansion Act (“EFMLEA”) employees may take up to 12 weeks of family and medical leave after having worked with the employer for 30 calendar days if the employee is unable to work (or telework) due to the employee’s need to care for a son or daughter under 18 years of age due to the child’s school closure or unavailability of a childcare provider due to a public health emergency, i.e., COVID-19. Unlike the FMLA, which does not apply to many small employers, this requirement applies to any employers with 500 or fewer employees. No mileage radius requirement exists under the EFMLEA. When an employee utilizes leave pursuant to EFMLEA, the first 10 days of that leave may consist of unpaid leave, but the employee may elect to substitute any accrued paid vacation leave, personal leave, or medical or sick leave, including the Emergency Paid Sick Leave provided for by the Act and described below). All subsequent days of leave taken by the employee after the tenth day must be paid by the employer at a rate of not less than two thirds of the employee’s regular rate of pay and the number of hours the employee would otherwise normally be scheduled to work. The cap is $200 per day or $10,000 in the aggregate. Reprinted courtesy of Yvette Davis, Haight Brown & Bonesteel and Kyle R. DiNicola, Haight Brown & Bonesteel Ms. Davis may be contacted at ydavis@hbblaw.com Mr. DiNicola may be contacted at kdinicola@hbblaw.com Read the court decision
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