Justia Construction Law Opinion Summaries

The Minnesota Laborers Health and Welfare Fund (“the Funds”) filed a declaratory judgment action against Granite Re, Inc. seeking clarification of their right to payment on a surety bond. The district court granted summary judgment to Granite Re, concluding, among other things, that the Funds’ lawsuit was time-barred because the Funds failed to commence litigation within the one-year contractual limitations period set out in the bond. The court of appeals reversed and remanded, concluding that fraudulent concealment by the bond principal tolled the limitations period set out in the bond. The Supreme Court affirmed, holding (1) fraudulent concealment can be applied to a surety that was not involved in the fraudulent concealment by the principal; and (2) therefore, the one-year contractual limitations period set out in the bond may be tolled against Granite Re.View "Minn. Laborers Health & Welfare Fund v. Granite Re, Inc." on Justia Law

The Illinois Department of Labor sent Jack’s Roofing a notice of investigation of possible violation of the Employee Classification Act, 820 ILCS 185/3.25 by misclassifying employees as independent contractors. Jack’s provided the Department with requested information. Preliminary determination found misclassification of 10 individuals for eight to 160 days and calculated a potential penalty of $1,683,000. The Department requested a response within 30 days for consideration before final determination. Less than a month later, the Department sent notice of a second investigation Jack's sought injunctive relief and a declaratory judgment that the Act is unconstitutional as violating: the special legislation clause of the Illinois Constitution because it subjects the construction industry to more stringent employment standards than other industries; the due process clauses of the U.S. and Illinois Constitutions because it does not provide an opportunity to be heard and is impermissibly vague; the U.S. Constitution's prohibition against bills of attainder because it is a legislative act that inflicts punishment without a judicial trial; and the equal protection clauses of both constitutions because no other industry is subjected to the same standards when seeking to hire independent contractors. On remand, the court denied relief, finding the Act valid and enforceable. The appellate court affirmed. The Illinois Supreme Court affirmed in part, rejecting facial constitutional challenges. A procedural due process challenge to enforcement provisions has been rendered moot by the recent amendments to the Act, which must be applied to plaintiffs in the future. The court also affirmed that section 10 of the Act is not unconstitutionally vague. Remaining constitutional challenges to the Act were forfeited. View "Bartlow v. Costigan" on Justia Law

Plaintiff filed an action against Defendants, a construction company and the owner of a building, after he was injured when a heavy conduit pipe fell on his hand while he was working at the building, alleging that Defendants violated N.Y. Lab. Law 240(1). Supreme Court granted Plaintiff’s motion for partial summary judgment on liability, concluding that the conduit, being attached to the ceiling by a compression coupling that failed, was not properly secured so as to give proper protection to Plaintiff. The Appellate Division modified the order of the Supreme Court by denying Plaintiff’s motion for summary judgment, concluding that Plaintiff failed to establish that Defendants’ failure to provide a protective device, i.e., a set-screw coupling rather than the purportedly inadequate compression coupling, was a proximate of his accident. The Court of Appeals accepted certification and held that the order of Supreme Court as modified by the Appellate Court was not property made, as Defendants’ failure to use a set screw couple was not a violation of section 240(1). View "Fabrizi v. 1095 Ave. of the Ams., LLC" on Justia Law

Plaintiff filed a personal injury action against Defendants, the construction manager and owner of a building at a construction site, after a large, flat object fell and injured his hand. Plaintiff alleged, inter alia, a violation of N.Y. Lab. Law 241(6). Defendants moved to dismiss Plaintiff’s section 241(6) claim, arguing the form that injured Plaintiff’s hand was not subject to the safety requirements of Industrial Code N.Y. Comp. Codes R. & Regs. 12,23-2.2(a). The Court of Appeals remitted the matter for further proceedings for a hearing on whether the object as issue was a “form” within the meaning of the Industrial Code. After a hearing, Supreme Court dismissed Plaintiff’s section 241(6) claim, concluding that the form at issue did not come within the coverage of the regulation or section 241(6). The Appellate Division reversed and granted summary judgment to Plaintiff. The Court of Appeals accepted certification and concluded that the Appellate Division’s order should be affirmed, holding that the language of N.Y. Comp. Codes R. & Regs. 12,23-2.2(a) could sensibly be applied to the form that fell on Plaintiff’s hand.View "Morris v. Pavarini Constr." on Justia Law

The Utah Occupational Safety and Health Division (UOSH) cited and fined Hughes General Contractors, which oversaw a construction project involving over 100 subcontractors, for a subcontractor’s violation on the project. In determining that Hughes was responsible for safety conditions for the subcontractor’s employees, the UOSH invoked the multi-employer worksite doctrine, which makes a general contractor responsible for the occupational safety of all workers on a worksite, including those who are not the contractor’s employees. Both an administrative law judge and the Labor Commission’s Appeals Board upheld the citation and the multi-employer worksite doctrine, which federal OSHA regulations have adopted and federal courts have upheld. The Supreme Court reversed the citation and penalty, holding (1) the multi-employer worksite doctrine is incompatible with the governing Utah statute, Utah Code 34A-6-201(1; (2) the responsibility for ensuring occupational safety under the governing statute is limited to an employer’s responsibility to its employees; and (3) because Hughes was not an employer of the workers in question in this case, Hughes was improperly cited and sanctioned.View "Hughes Gen. Contractors, Inc. v. Utah Labor Comm’n" on Justia Law

Defendant-Respondent Russell Griffeth, a licensed physical therapist, operated a clinic in Idaho Falls. He received no training as a contractor and was never licensed as a contractor. He did, however, act as a general contractor in the construction of his two homes. He organized and supervised various subcontractors. In early 2009, Griffeth decided to remodel his physical therapy clinic by constructing an addition to the existing building. Griffeth intended to be the general contractor for the project, but the city required a licensed commercial contractor. Consequently, Griffeth hired Bryan Robinson, a friend with construction experience, to serve as the general contractor. Robinson obtained a commercial contractor license for the project. Near the end of the project, Robinson hired Claimant Geff Stringer as a carpenter. As the clinic project neared completion, the construction workers used a hoist attached to the roof to move heavy beams into position in the attic. Unfortunately, on or near the last day of the project, the ceiling collapsed, and a beam fell on Stringer. The impact from the beam fractured Stringer's left ankle. At the time of the accident, Robinson did not have worker's compensation coverage. Stringer filed worker's compensation complaints against both Robinson and Griffeth. Following an evidentiary hearing, the Commission held that Robinson was Stringer's direct employer and that Griffeth was his category one statutory employer. Because Robinson did not pay worker's compensation benefits to Stringer, Griffeth, as the statutory employer, normally would be liable for such benefits. However, the Commission held that Griffeth was exempt from worker's compensation liability because Stringer's employment with Griffeth was "casual" under I.C. 72-212(2). Stringer appealed to the Supreme Court. Finding no reversible error, the Supreme Court affirmed the Commission's decision.View "Stringer v. Robinson" on Justia Law