Construction Law Update

In Greenhill v. Reit Mgm’t & Research, LLC (2019 IL App (1^st) 181164), the First District reversed the trial court’s entry of summary judgment in favor of two defendants in a construction accident lawsuit, finding that the defendants and the trial court improperly defined the scope of their duty of care too narrowly and conflated the concepts of duty and breach.

The lawsuit arose out of an incident involving a freight elevator at a construction site. The plaintiff and his coworker were riding the freight elevator with an unrelated worker from a separate contractor, when the plaintiff and his coworker mistakenly got off on the wrong floor. The plaintiff and his coworker tried to get back on the elevator, but the unrelated worker did not notice and pressed the button to close the elevator. The gate on the elevator (which moved up and down from the ceiling) came down as the plaintiff was entering the doorway and hit him on the head.

To read a full, expanded version of this article, click here.

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A statutory offer to compromise a case is a common tool in litigation in California. Under CCP section 998, a party can make an offer to the opposing party. If that offer is not accepted, the case goes to trial, and the recipient does not do better at trial than the offer, the code imposes penalties. Conversely, if you get a better outcome, the code provides benefits in the form of enhanced costs (notably including the costs of experts). It is a useful tool. However, on its face, the code contemplates that a judgment be entered against the party making payment.

To read a full, expanded version of this article, click here.

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As a follow up to our 2021 50 State Surveys released in January, we bring you our 50 State Survey for General Contractor Licensing & Contract Requirements. Click on the chart to download.

General Contractor Licensing & Contract Requirements
Each state regulates general contractors working within the construction industry. In some states, the process can be as simple as filling out a registration form online with the appropriate agency, whereas other states have comprehensive licensing standards with distinct licensing categories for specific kinds of work (e.g., residential, commercial, etc.). Complicating things further, some states have adopted legislation establishing specific criteria for what must be included in agreements entered into by contractors. This survey aims to provide a general overview of the standards and requirements for each state and to serve as a guide for identifying and avoiding compliance issues.

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Appellate Victory in Chicago
Chicago Partner Tom Cronin and Senior Counsel Brian Myers secured an appellate court opinion affirming the complete dismissal of negligence and breach of contract claims against the firm’s architect client. The plaintiff alleged that the architect negligently designed a renovation of the plaintiff’s commercial property, which overloaded the ceiling trusses and caused them to crack. The trial court granted Gordon Rees’s motion to dismiss the negligence claims, finding that they were barred by the economic loss doctrine. The trial court also granted Gordon Rees’s motion to dismiss the breach of contract claims due to lack of privity, because the named plaintiff was the owner of the building, but the subject contract was solely between the architect and the tenant of the building.
After Gordon & Rees attorneys presented oral argument, the appellate court affirmed the trial court’s dismissal of all claims. The appellate court rejected the plaintiff’s primary argument on appeal that the economic loss doctrine should not apply to a plaintiff who did not engage in any contractual negotiations with the defendant. The appellate court explained that the existence of a contract is not a prerequisite to application of the economic loss doctrine. The opinion is Harleysville, Ins. Co. v. Mohr Architecture, Inc., 2021 IL App (1st) 192427 and is accessible here.

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Los Angeles Partner Brenda Radmacher was a speaker at the ABA 2021 Dispute Resolution Conference with a presentation, "Connecting the Dots: Communication, Diversity, and Cross-Cultural Sensitivities in Mediation," along with mediators Jeff Trueman, Joyce Mitchell Rockville, and Jody Sin. Radmacher will be presenting at the CLM’s Annual Conference in Atlanta, August 11-13, 2021, on Design Build for the Future – How to Ensure your Construction Project is Claim Resistant.

On March 9, 2021, Seattle and Boise Partner Meredith Thielbahr served as a panelist at Levelset’s free webinar aimed to empower women in construction careers as part of National Women in Construction week. Thielbahr participated in a session entitled “The State of Women In Construction and Where to Go from Here.” The session addressed trends in the construction industry, insight from three thought leaders at various stages of their careers, and results from a survey of over 1,000 women currently working in the industry.

On May 18, 2021, Partners Brenda Radmacher, Lisa Cappelluti, Christine Barker, and Misty Marris of the Gordon & Rees Women in Construction (WIC) team and Laura Sorenson, Risk Manager at Johnstone Moyer, Inc., presented a webinar entitled, "Contract Tips, Strategies and COVID Compliance," as part of the WIC Tuesday Talks Webinar Series. A recording and a copy of the presentation materials can be found here.

On May 4, 2021, Louisville Partner Angela Richie and Associate Connor Cafferty presented a client webinar entitled, "May the Fourth Be With You: Tips to Make Sure You Get Paid." A recording and a copy of the presentation materials can be found here.

On April 6, 2021, Louisville Senior Counsel Rheanne Falkner presented a client webinar entitled, "Poison Pill: Dealing with a Problem Employee." A recording and a copy of the presentation materials can be found here.

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The Gordon & Rees Construction Law Blog continues to post new content addressing topical issues affecting the construction industry throughout the country. From analysis of new court decisions, discussions of timely legislation, and commentary on real-world, project-specific issues, Gordon & Rees’ Construction Law Blog provides insight on the issues that affect the construction industry now.

We invite you to visit the blog at www.grconstructionlawblog.com and see for yourself what we are up to. If you like what you see, do not hesitate to subscribe under the “Stay Connected” tab on the right side of the blog. There you can choose how you would like to be informed of new content (Twitter, LinkedIn, email, etc.). If you have any questions about the blog or would like to discuss further any of its content, please do not hesitate to contact us.

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Gordon & Rees' Construction Group consists of more than 160 lawyers in offices nationwide. In 2019, the firm opened its 68th office, creating the world’s first 50-state law firm. The full list of Gordon & Rees' offices and local contacts can be found here.

Gordon & Rees’ construction attorneys focus their practice on the comprehensive range of legal service required by all participants in the construction industry – architects, engineers, design professionals, design joint ventures, owners, developers, property managers, general contractors, subcontractors, material suppliers, product manufacturers, lenders, investors, state agencies, municipalities, and other affiliated consultants and service providers.

We serve clients who design, develop, or build all types of structures, including commercial buildings, single and multifamily residential projects, industrial facilities, universities, hospitals, museums, observatories, amusement parks, hotels, shopping centers, high-rise urban complexes, jails, airports, bridges, dams, and power plants. We also have been involved in projects for tunnels, freeways, light rail, railway stations, marinas, telecom systems, and earth-retention systems. Our experience includes private, public, and P3 construction projects.

If you have questions about this issue of the Construction Law Update or our nationwide construction practice, click here to visit our practice group page or contact partner Daniel Evans.

Daniel E. Evans
Gordon Rees Scully Mansukhani
555 Seventeenth St.
Suite 3400
Denver, CO 80202
(303) 200-6863
deevans@grsm.com

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