The police are at the door! Service of the construction lawsuit on your company (Law & Order: Hard Hat files Part 2)

sheriff carThe police?  Yes, that’s right.  If you are sued, at least in North Carolina, you may find Mr. Policeman (or Ms. Policewoman) at your door.  There are several ways that you may find out you or your company are being sued, but undoubtedly seeing the Sheriff at the door is the most nerve-racking.  Heck, we have Sheriffs in our law office occasionally to serve papers, and the sight never fails to startle me.  So be forewarned—the first you find out that there is a lawsuit may be when Johnny Law himself comes knocking.

While unnerving (as it is often meant to be by the party suing you), rest assured that all the Sheriff will be doing is identifying you and handing you papers showing you’ve been sued.  The Sheriff doesn’t actually have to hand you the papers personally- in fact, depending on if and how you are incorporated, he may be handing them to your spouse, another adult that resides in your house, your business partner, or an officer or manager of your professional association.  While the Sheriff is not supposed to leave papers with a mere employee, that can and does happen as well.

The Sheriff is not the only way you can be sued.  You can also get a certified mail package—you know, the type that requires you to go sign for it at the post office.  Or, you may get a Fed Ex package.  If you are being sued in federal court, or you know the lawsuit is coming, you may not get anything, as it may all come to your lawyer instead.

What should you do if you do get the lawsuit (called the Complaint)?  First, run, do not walk, to your insurance carrier and/or lawyer.  Do not pass go.  This should be the first thing you do.  If you don’t have a lawyer, but you have insurance, your agent should be able to help you report the claim, and a lawyer will be assigned to you by the insurance company.  If you have a lawyer, you can report to him/her, and ask the lawyer to make the claim on your behalf to your insurance company.

Remember, however, that you need to report it as soon as you can.  In state actions in North Carolina, you have 30 days from receipt to respond.  In federal actions, you have 20 days.  There are certain rules concerning weekends and governmental holidays that change these deadlines at times.  But the important thing to remember is that you must respond, timely, or you can end up with a judgment entered against you in default.  So, when you report the lawsuit, the first thing your agent or lawyer will want to know is the date you (or someone connected with you) first received the Complaint.

If you report the claim and do not hear back?  Follow up.  Never assume that an email went through or that the person you called isn’t on vacation or in the hospital.  Make sure that you speak with your agent and/or lawyer personally and that they know when you were served.

Questions? Comments?  Have you ever been sued?  Do you now know something you wish you knew then?  Drop me a line or comment below.

Next week in our series:  You have the right to an attorney! (but one will not be appointed for your construction lawsuit)

Photo (c) freefoto.com

 

Hurricane Sandy broke the record books! (News note)

Hurricane Sandy mapNow that the waters are receding, and while the recovery work progresses, thought I’d share an interesting article I came across on the many and varied records that Hurricane Sandy broke, including:

 1. Strongest Hurricane to Make Landfall North of Cape Hatteras

With a record low barometric pressure of 27.76, Sandy was the strongest hurricane north of Cape Hatteras to ever make landfall. Although Hurricane Gladys of 1977 holds the overall record for the region at 27.73, she remained off the U.S. coast.

 2. Largest Atlantic Hurricane on Record

She was a big girl. Sandy made the record books as the largest hurricane to have formed in the Atlantic Basin, according to the National Hurricane Center, reaching a truly impressive gale diameter of 1,000 miles.

 3. Highest Storm Surge

The storm surge for New York City was expected to be around 8-10 feet, yet Sandy’s strength and unusual angle worked to create a surge far surpassing estimates. The surge level at Battery Park was a whopping 13.88 feet at 9:24 p.m. Monday, out-surging Donna’s efforts of 10.02 feet in 1960.

There are 9 more here, although some of the categories (most photoshopped disaster photos, anyone?) are not as impressive as others.

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Want to Help?

Want to give to help the victims of Sandy’s massive impact? The American Red Cross is accepting monetary donations in any amount through their website.

However, they do not accept donated goods directly, as noted here:

The American Red Cross does not accept or solicit small quantities of individual donations of items for emergency relief purposes. Items such as collections of food, used clothing, and shoes often must be cleaned, sorted, and repackaged which impedes the valuable resources of money, time, and personnel that are needed for other aspects of our relief operation.

The Red Cross, in partnership with other agencies, suggests that the best use for those types of donations is to support needy agencies within donors’ local communities.

The best way to help a disaster victim is through a financial donation to the Red Cross. Financial contributions allow the Red Cross to purchase exactly what is needed for the disaster relief operation. Monetary donations also enable the Red Cross to purchase relief supplies close to the disaster site which avoids delays and transportation costs in getting basic necessities to disaster victims. Because the affected area has generally experienced significant economic loss, purchasing relief supplies in or close to the disaster site also helps to stimulate the weakened local economy.

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While the impact of Sandy will be felt for some time, the sheer size of the “perfect storm” is something to behold!

Photo: (c) NASA Goddard Space Flight Center via CC.

Greenwashing–an Interview with James d’Entremont (guest post)

James d’Entremont headshotToday, a guest interview on the always timely topic of greenwashing. Alex Levin is a writer for Seeger Weiss LLP, a top ranking Plaintiff’s law firm specializing in consumer protection, commercial disputes, and defective product injuries.  Please welcome Alex to the blog, as he shares a greenwashing interview with us. ______________________________________

As the public grows increasingly aware of the environmental costs associated with the modern consumer lifestyle, it also grows increasingly concerned. Such public concern has become a major factor in driving the industrial world to the adoption of an environmentally friendly façade, which has come to be known as greenwashing. While such companies may strive to be seen as addressing environmental concerns, not all of them are actually doing so, and some may be responsible for severe harm to the environment even while claiming to be catering to it. To what degree then can the government or the public regulate such “false advertisement,” or discern between those truly conscientious organizations and those which mislead?

James d’Entremont may be something of an expert on the topic of greenwashing. A Baton Rouge – based attorney for Moore, Thompson & Lee, he is also on the board of directors for the Louisiana chapter of the United States Green Building Council (USGBC), having both spoken and written extensively on the subject of greenwashing. He spoke to us about the surprising degree to which this rapidly growing practice is illegal, and what the public can do to fill the void left by the government’s limited involvement.

What measures has the US government taken and what measures do you think it should take to dissuade greenwashing?

James d’Entremont: The primary federal regulations aimed at preventing greenwashing are set forth in section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a) (1), and enforced by the Federal Trade Commission (FTC).  The FTC’s Guides for the Use of Environmental Marketing Claims, commonly known as “the Green Guides,” sets forth its interpretation of federal trade regulations governing environmental marketing claims.  The Green Guides and accompanying regulations require that parties making environmental marketing claims pertaining to products and product-related services have a reasonable basis for substantiating their claims.  According to the Green Guides, this “will often require competent and reliable scientific evidence” to back up the claim, 16 C.F.R. 260.5.  Moreover, the Green Guides require that an “environmental marketing claim should not be presented in a manner that overstates the environmental attribute or benefit” of the product or service and, further, that marketers “should avoid implications of significant environmental benefits if the benefit is in fact negligible.”  -16 C.F.R. 260.6(C).

The existing FTC regulations, while perhaps not perfect in every case, can provide a solid framework for adjudicating greenwashing claims.  That said, because the Federal Trade Commission Act does not provide a private right of action, private litigants must resort to other federal or state laws to bring a greenwashing claim, citing the Green Guides and relevant regulations as a “measuring stick” to judge the reasonableness or culpability of the defendant’s conduct.  Such actions may be based in state consumer protection laws, breach of contract, fraud, misrepresentation, commercial law or product liability.  Depending on the nature of the claim, various federal statutes may also provide a basis for relief.

What measures has the public taken to discourage greenwashing and what should the layman do in response to this trend?

JD: Social media has played a big role in addressing claims of greenwashing.  There are numerous blogs and websites addressing greenwashing in general and issues with specific products. For example, www.greenwashingindex.com is a website promoted by EnviroMedia Social Marketing and the University of Oregon that is devoted to identifying and indexing greenwashing claims across various industries and products.  In addition to this and other similar sites, there are also websites, blogs and twitter feeds devoted to specific products such as sprayfoamdangers.com which is focused entirely on problems related to spray foam insulation.  There are also an increasing number of private lawsuits addressing greenwashing claims.

As far as how the public should protect itself, the key is to seek clarification as to why the product or service is supposedly “green” and document any representations concerning the purported environmental attributes – as well as any potential environmental hazards – of the product or service.  Often times, the purportedly green product or service has certain environmentally friendly attributes – which are being promoted – as well as certain not-so-environmentally-friendly attributes which are either not promoted or completely undisclosed.

What are some examples of products that might be greenwashed?

JD: For one example, polyurethane spray foam insulation (SPF) is widely touted as green because its superior insulating capabilities can make a home or other building dramatically more energy efficient.  While this is certainly true, what is less well known – and what is generally omitted from marketing claims by SPF insulation manufacturers and installers – is that SPF is comprised of ingredients that, when evaluated individually, seem far from green.  These include isocyanates, amines and various flame retardants.  These chemicals are known irritants and, in the case of isocyanates, may cause sensitization or cause or aggravate asthma and other adverse health effects.  As a result, if proper precautions are not taken or if the SPF insulation is not properly installed, building occupants may suffer adverse health effects caused by the chemicals in or emitted from the SPF insulation.

Moreover, SPF insulation may not be appropriate for certain consumers, such as people with pre-existing asthma, allergies or sensitivity to one or more constituent chemicals.  In addition, because the SPF insulation dramatically “tightens” the house, there is less fresh air coming in from the outside which, in turn, may cause or trigger allergies due to increased moisture or airborne allergens.  Unfortunately, homeowners are generally ignorant of this because these risks are typically not disclosed to them.  Making matters worse, many manufacturers do not disclose all of the chemicals contained in their products.  In contrast, the purported green attribute – energy efficiency – is typically highly promoted.  The EPA is currently investigating health problems associated with SPF insulation and there are several individual lawsuits as well as at least one national class action, with more expected, seeking recovery of damages arising from this purportedly “green” product.

What factors encourage greenwashing?

JD: Rising consumer demand for environmentally friendly and high efficiency products and services is leading to more claims of greenwashing.  I expect this market trend to continue with a corresponding increase in greenwashing claims.

Now, dear blog reader, it is your turn.  Do you believe the green washing problems will get worse before they get better?  Share your thoughts in the comment section of the blog.

 

Ski Lift Cables–Treasure, Not Trash? One Architect’s Design (news note)

Recently I was contacted by the folks at repurposedMATERIALS, who shared with me some photos featuring a unique design:  ski lift cables were installed as hand-rails for a housing project.  Check out these pictures:

ski lift cable hand rail design of architect     hand rail architectural design

According to company representatives, re-purposing has both economic and environmental benefits that far outweigh that of traditional recycling:

Re-purposing is creative re-use. It is NOT recycling that has gotten all the buzz since the 1970s.  Remember, recycling requires huge amounts of energy to melt, grind, chip, or shred a waste stream into a useable raw material to manufacture something new.  With “re-purposing”, we deal with byproducts and waste that get a second life because they have value “as is”.

Other examples of re-purposing include using used rubber roofing membranes as pond liners and retired wine barrels as re-purposed trash cans.

Have you had occasion to use re-purposed materials?  Simply think the handrails above are uber-cool?  Share in the comments section of the blog!

4 Federal Labor Laws Every Construction Manager Needs to Know (guest post)

construction hard hat on postToday, a guest post from Kristie Lewis, freelance writer for Construction Management Degree.  Kristie has written numerous articles on both construction training and education as well as industry news and trends. In her spare time, Kristie enjoys cooking in her newly remodeled kitchen and reading science fiction novels. You can reach out to her at [email protected].  Thanks for sharing, Kristie.

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In an effort to protect the rights of employers in all industries, the federal government has enacted several labor laws. Some of the laws apply to all business sectors, and some apply to specific industries, such as construction.

Although those who earn a degree from an accredited construction management program will be required to learn about a variety of laws that apply to the construction industry, it is never a bad idea to review the details of them. Here are four labor laws that every construction manager should know like the back of their hand.

The Fair Labor Standards Act (FLSA)

This act sets the standards for wages and overtime pay. In general, it requires employers to pay covered employees who are not otherwise exempt at least the federal minimum wage and pay 1.5 times the regular rate for overtime hours. The Fair Labor Standards Act is administered by the Wage and Hour Division. More information on this law can be found at the division’s official website.

Davis-Bacon and Related Acts

These policies apply to contractors and subcontractors that are working on public buildings or public works projects that are federally funded and will cost more than $2,000 to construct, alter or repair. According to the act, contractors and subcontractors must pay their laborers and mechanics employed under the contract no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area. There are additional details that can also be found on the Wage and Hour Division’s official website.

The Occupational Safety and Health Act (OSHA)

This act is administered by the Occupational Safety and Health Administration and includes an array of industry-specific regulations that are enforced through regular workplace inspections and investigations. Compliance assistance and other cooperative programs are available for employers who request help. Although there seems to be an endless amount of rules to comply with, most of them are common sense rules that smart construction managers already abide by. Still, it is wise to make sure your project is congruent with the federal law, because any infractions can be found through inspection or reported by a worker.

The Labor-Management Reporting and Disclosure Act (LMRDA) of 1959

This law deals with the relationship between a union and its members. Also known as the Landrum-Griffin Act, it protects union funds and promotes union democracy by requiring labor organizations to file annual financial reports. Employers are also required to file reports regarding certain labor practices. It is administered by the Office of Labor-Management Standards. You can read the details of the law here.

Knowing the details of the above laws will not only keep your construction business safe from legal trouble, it will also allow you to provide your employers with the best working environment possible.

Questions on these laws, or comments?  Drop Kristie and me a note in the comment section, below.

Photo: (c) Anna Strumillo.