Justia Construction Law Opinion Summaries

Hensel, the general contractor building a new Austin public library, maintained control over the worksite through on-site management personnel, Hensel's subcontractor, HEW, worked on the project’s East Screen Wall. HEW's sub-subcontractor, CVI, was to complete demolition and excavation for the Wall. A nearly vertical 12-foot wall of “Type C” soil developed. Occupational Safety and Health Administration (OSHA) regulations mandate systems to protect employees from cave-ins. No protective systems were in place. On a rainy morning in 2015, CVI was to reinstall rebar at the base of this wall of soil, preliminary to pouring concrete footings. Concerned about the weather and the instability of the wall, CVI owner Daniels sent his employees to work on another area. Hensel's superintendent instructed Daniels to return his employees to the excavation. Daniels sent an email to HEW’s senior project manager, who gave only a cursory reply. Daniels sent his employees back to the excavation. That day, an OSHA compliance officer discovered CVI employees working at the unprotected wall. The city inspector, Hensel’s superintendent, and HEW’s superintendent were present. OSHA cited CVI and Hensel for violating 29 C.F.R. 1926.652(a)(1), pursuant to its multi-employer citation policy. OSHA considered Hensel a “controlling employer” An ALJ agreed but found that Fifth Circuit precedent that “OSHA regulations protect only an employer’s own employees,” foreclosed the citation. The Fifth Circuit reversed, deferring to OSHA’s construction of 29 U.S.C. 651, as granting authority to issue citations to controlling employers. View "Acosta v. Hensel Phelps Construction Co." on Justia Law

A general construction contractor, S&P, filed suit against its secondary insurance provider, US Fire, after US Fire refused to cover damages S&P incurred when a courthouse construction project went awry. The Fifth Circuit affirmed the district court's grant of summary judgment to US Fire, holding that US Fire's policy allowed it to count the arbitration agreements as "Other Insurance." The court explained that an indemnity agreement fell under the plain language of the "Other Insurance" provision of US Fire's policy because it was a mechanism by which an insured arranged for funding of legal liabilities for which US Fire's policy also provided coverage. Under the reasoning of RSR Corp. v. International Insurance Co., 612 F.3d 851 (5th Cir. 2010), settlement proceeds resulting from an indemnity agreement also counted as "Other Insurance." The court also held that S&P failed to meet its burden to show allocation of the settlement proceeds between covered and noncovered damages. View "Satterfield and Pontikes Construction v. US Fire Insurance Co." on Justia Law

The Fifth Circuit reversed the district court's grant of summary judgment in favor of a general contractor in an action by the subcontractor, alleging that the general contractor fraudulently induced it into entering a settlement agreement that released the general contractor from any claims for liability under the Miller Act. In this case, Fisk was the subcontractor and DQSI was the general contractor on a post-Hurricane Katrina federal construction project. The court held that there was a genuine issue of material fact as to whether Fisk justifiably relied on DQSI's representations about Fisk's Request for Equitable Adjustment at settlement, which was an element of Fisk's fraudulent-inducement. Therefore, the court remanded for further proceedings. View "Fisk Electric Co. v. DQSI, LLC" on Justia Law