Loren Kean Law

Loren Kean Law

Loren Kean Law

NEW FLORIDA LAWS AFFECTING CONTRACTORSSaad U. Farooqi and Bruce E. Loren | Aug 15 2022

On May 26, 2022, Senate Bill 2D (“S.B. 2D”) and Senate Bill 4D (“S.B. 4D”) became law. The stated purpose of S.B. 2D is to lower the costs for insurance companies in the hope that rates for homeowners will be lower.  Also, S.B. 2D strengthens an insured’s ability to pursue claims of bad faith against insurance companies. Meanwhile, S.B. 4D focuses on increasing building safety, while also providing cost relief to certain individuals requiring roofing work.

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THE STATUTE OF LIMITATIONS AND CONSTRUCTION LITIGATIONFrank Sardinha, III and Bruce E. Loren | Aug 10 2022

In Florida, the law requires lawsuits to be filed within certain time periods. The time period depends upon the type of claim, for example, a claim for breach of contract has a different time period than a claim for tortious interference. In the construction world, different claims have different time periods.

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OSHA CRACKING DOWN ON HEAT ILLNESS PREVENTIONKyle W. Ohlenschlaeger and Bruce E. Loren | Aug 08 2022

OSHA is planning on doubling its heat-related inspections during a three-year program that went into effect this past April. Pursuant to new guidance issued under its “National Emphasis Program,” OSHA seeks to ensure that employers are adequately protecting their employees from heat related illnesses. Of course, construction sites (in addition to other outdoor jobs) are going to be the primary driver of the program and increased citations, and are specifically targeted in the program for random inspections during high-heat days. Therefore, it is important for contractors to be aware of the key points of the program and what they can do to avoid citations.

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CASE STUDIES ON RECENT FACTORING LITIGATIONAllen J. Heffner and Bruce E. Loren | Aug 01 2022

Factoring clients always ask us what they could have done differently to avoid lawsuits with their Clients and/or Account Debtors. In some cases, the Factor does everything correctly and litigation is inevitable. However, over the past several months, we have had Factors engaged in lawsuits that were largely avoidable if the Factor had taken certain actions or had better practices in place. Here are a few scenarios that we have dealt with recently.

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IMPORTANT INSURANCE ENDORSEMENT NEWS FOR GENERAL CONTRACTORS AND SUBCONTRACTORSKyle W. Ohlenschlaeger and Bruce E. Loren | May 16 2022

A relatively recent endorsement is becoming more and more prevalent in the construction industry, and given the large risks associated with it, we recommend that our clients make sure that it is not included as part of their policies. In addition, we strongly recommend that our clients make sure that their subcontractors are not carrying the endorsement on their policies, as it could result in the indemnity provisions in your subcontracts resulting in uninsured claims against subcontractors.

The endorsement at issue is called the “Contractual Liability Limitation” and generally appears as follows:

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PRESERVING CLAIMS FOR MONEY AND TIMEKyle W. Ohlenschlaeger and Bruce E. Loren | Mar 30 2022

The risks to contractors and subcontractors on construction projects have increased exponentially in recent years, and we don’t see them slowing down with the rising costs of construction. Contractors are being forced to agree to extremely abbreviated project schedules and higher liquidated damages penalties than ever before. Combined with supply-chain disruptions and material shortages this can spell disaster for the unsuspecting contractor or subcontractor.

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WHY FACTORS SHOULD CONTINUE DUE DILIGENCE ON THEIR CLIENT AFTER FILING THEIR FINANCING STATEMENTAllen J. Heffner and Bruce E. Loren | Mar 28 2022

One of a Factor’s main protections is its blanket security interest in all the Client’s assets, including the Client’s receivables. The security interest gives the Factor some level of protection that it will be able to be made whole in the event things go sideways. The security interest is most often provided for in standard language in the Factoring Agreement whereby the Client agrees to provide the Factor with a first priority security interest in the Client’s collateral. However, to be effective and have priority against other secured and unsecured creditors, the Factor must properly perfect its security interest. Assuming the Client has executed the Factoring Agreement (and the Factoring Agreement grants the Factor with a security interest in the Collateral), the Factor can “perfect” its security interest by filing a UCC-1 Financing Statement. This Financing Statement puts the world on notice of the Factor’s security interest and establishes the Factor’s priority with respect to the Collateral.

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