Category Construction & Commercial Blog

Keeping You Informed

AMUSEMENT RIDE INDUSTRY-COMMON CARRIER EXPOSURE

By: Joseph Eichberger, Income Member A patron of an amusement ride was injured on the ride. The patron sued the owner/operator in negligence on two different theories.  One theory pled that the owner/operator owed the patron the duty of ordinary care. The other theory pled that the owner/operator owed the duty of highest care because the ride was a ‘common carrier’…

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FALSE CLAIMS AND WHISTLEBLOWERS

By: Margery Newman, Income Member Due to a historical unwillingness to utilize minority and female-owned businesses in the construction industry, public bodies in Illinois have instituted diversity programs. These programs are designed to increase the number of minority and female-owned businesses in the construction industry. For ease of reference, both of these groups will be referred to as Disadvantaged Business…

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THINGS TO CONSIDER WHEN INTEREST RATES ARE RISING!

By:  Bob Bramlette, Income Member In June, the Federal Reserve increased the prime rate by 0.25%. The Fed also announced that that it will start allowing about $10 billion in Treasury securities and mortgage-backed securities to mature every month, and eventually the amount is expected to increase to $30 billion a month in Treasury securities and $20 billion in mortgage-backed…

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WHICH DOCUMENTS CAN AN ILLINOIS ARCHITECT SIGN AND SEAL?

By: Jim Zahn, Of Counsel The answer to the above question is found in the following two complex statutes governing the practice of architecture in Illinois.  They are as follows: The Illinois Architecture Practice Act of 1989, 225 Illinois Compiled Statutes, 305/1 – 305/40, Inclusive (Current through Public Act 96-060), commonly referred to as the “Act”. Title 68: Professions and Occupations,…

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SUPREME COURT CLARIFIES RESTATEMENT SECOND 414 RETAINED CONTROL CLAIMS FROM VICARIOUS LIABILITY CLAIMS

By: Geoff Bryce, Capital Member Patrick Joseph Carney v. Union Pacific Railroad Company, 2016 Ill. 118984, 77 N.E. 3rd 1 (2017) has flown under the radar.  This case significantly clarifies what most additional insured endorsements will cover in a work site accident case.  Most additional insured endorsements cover various liability claims but not direct negligence claims.  Carney holds there is a…

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COURT EXPANDS POTENTIAL INSURANCE COVERAGE FOR CONSTRUCTION DEFECTS

By: Tina Paries, Income Member In Illinois, courts look at the allegations of a complaint and language of an insurance policy to determine whether the potential for coverage exists.  If it does, then an insurer has a duty to defend its insured against those allegations. One area where the courts have been consistent is where property damage is caused by defective…

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CAN A STATUTORY LIMITATIONS PERIOD BE SHORTENED BY CONTRACT?

By: Werner Sabo, Of Counsel A recent New York decision has answered this question in the affirmative. Parties can, by contract, shorten the time period found in a statute of limitations for filing suit. The case is Polar Bear Mechanical, Inc. v. Walison Corp., 2017 N.Y Slip Op. 50848(U) (June 22, 2017). A statute of limitations is a law that sets…

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THE DIFFERENCE BETWEEN ARCHITECT-LED & CONTRACTOR-LED DESIGN-BUILD

By: Jim Zahn, Of Counsel Architects and Contractors are becoming increasingly interested in providing design-build services to their clients. The design-build process of project delivery differs significantly from the design, bid, build process previously used for many decades, and still commonly used today that has been used for many decades. Before providing any design-build services, architects and contractors should be…

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How Courts are Interpreting Architect Claims under DMCA

By: Werner Sabo, Of Counsel The Digital Millennium Copyright Act (DMCA), 17 U.S.C. Chapter 12, was enacted into law in 1998 and has in recent years, been used by architects as an additional claim in copyright infringement actions. If an architect believes their design has been copied, they can file an action in federal court against the parties that potentially…

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Illinois Appellate Court Declines to Extend Buyer’s Right to Seek Redress from Material Suppliers and Design Professionals; Follows Precedent for Construction Subcontractors

By: Jeanne Hoffmann, Capital Member In Sienna Court Condo. Association v. Champion Aluminum Corp., 2017 IL App (1st) 143364, Illinois’ First District Appellate Court declined to extend the Minton rule to materials suppliers and design professionals, or to curtail its application to other subcontractors involved in construction. Generally, home buyers seeking redress for construction defects in breach of the implied warranty…

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