Colorado Legislative Update: HB 20-1155, HB 20-1290, and HB 20-1348

This year’s Colorado State Legislative session was cut short. However, in the period of time Colorado’s Legislature was in session, it passed and evaluated important legislation for Colorado homebuilders. This article highlights relevant legislation for Colorado homebuilders.

1.      HB 20-1155

This Bill creates new requirements on new homebuilders to offer renewable energy systems to the buyer of a new home. Specifically, the Bill requires homebuilders to offer each of the following:

• A solar panel system, a solar thermal system, or both;
• Prewiring or pre-plumbing for the above solar systems; and,
• A chase or conduit for future installation of such systems.

The Bill further requires Colorado homebuilders to offer homebuyers one of the following:

• An electric vehicle charging system;
• Prewiring for the future installation for such a system; or, 
• A plug-in receptacle in a place accessible to a vehicle parking area.

Colorado homebuilders must also offer a homebuyer an electrical heating system.

The Bill passed Colorado’s Legislature is currently awaiting signature of the Governor.

2.      HB 20-1290

This Bill sets forth additional requirements that an insurance carrier must prove in order to successfully plead a failure-to-cooperate defense in an action concerning an insurance policy providing first-party benefits or coverage. The conditions that must be present are the following.

• The insurer submitted a written request to the insured for the requested information;
• The information requested was necessary for litigation and was not available to the insurer without the assistance of the insured;
• The insured was provided 60 days to respond;
• The written request was for information a reasonable person would determine the insurer needed to adjust the claim filed by the insured or to prevent fraud; and
• The insurer gave the insured an opportunity to cure within 60 days and provided notice to the insured within 60 days, describing, with particularity, the alleged failure to cooperate.

Additionally, the Bill does not relieve the insurer of its duty to investigate and any language in a policy that conflicts with this Bill is void.

The Bill passed the Colorado Legislature and is awaiting signature of the Governor.

3.      HB 20-1348

This Bill proposed expanding employer liability for the tortious actions of its employees. The Bill was in response to a 2017 Colorado Supreme Court decision which held that when an employer admits liability for the actions of its employee, the plaintiff cannot assert additional claims against the employer arising out of the same incident. The Bill intended to reverse the Colorado Supreme Court’s decision and allow a plaintiff, bringing a civil tort claim, to bring additional claims against an employer arising out of the same incident as the one involving an employee.

The consequence of the Bill would have been to prevent an employer from avoiding liability for negligent acts by admitting an employee was in the course and scope of employment when the tortious act was committed. 

Fortunately, for employers, the Bill failed to pass to the Colorado Legislature.

For additional information regarding any of the above Bills or about construction defect litigation in Colorado, generally, you can reach Jean Meyer by telephone at (303) 987-9815 or by e-mail at meyer@hhmrlaw.com.

 

Most Common OSHA Violations Highlight Ongoing Risks

In the 12 months from October 2018 through September 2019, the most recent period reported by OSHA,[1] the workplace safety agency cited the following standards[2] more than any other in the 28 states which do not have OSHA-approved state plans, including Colorado:

1. 1926.501 – Duty to have fall protection – included in 459 citations, resulting in $2,475,596 in penalties ($5,393/citation);
2. 1926.451 – General requirements for scaffolds – included in 265 citations, resulting in $834,324 in penalties ($3,148/citation);
3. 1926.1053 – Requirements for ladders including job-made ladders – included in 164 citations, resulting in $354,853 in penalties ($2,163/citation);
4. 1926.503 – Training requirements related to fall protection - included in 114 citations, resulting in $156,076 in penalties ($1,369/citation); 
5. 1926.405 - Wiring methods, components, and equipment for general use – included in 93 citations, resulting in $150,821 in penalties ($1,621/citation);
6. 1926.20 - General safety and health provisions – included in 85 citations, resulting in $328,491 in penalties ($3,864/citation);
7. 1926.1052 – Requirements for stairways – included in 79 citations, resulting in $155,651 in penalties ($1,970/citation);
8. 1926.102 – Requirements for eye and face protection - included in 67 citations, resulting in $165,595 in penalties ($2,471/citation);
9. 1926.403 – General requirements for electrical conductors and equipment – included in 63 citations, resulting in $146,050 in penalties ($2,318/citation), and;
10. 1926.100 – Requirements for head protection – included in 55 citations, resulting in $127,274 in penalties ($2,314/citation).

For those companies facing a slow-down in production related to the COVID-19 outbreak, it may be a good time to revamp safety programs.  A good place to start this process is the OSHA Compliance Assistance Quick Start webpage.[3] Note that pursuant to OSHA’s Multi-Employer Citation Policy,[4] construction jobsites can involve multiple employers (i.e., general contractors, construction managers, subcontractors, etc.), each of which may be liable for OSHA violations.  OSHA's construction standard 1926.20(b) requires construction employers to have accident prevention programs that provide for frequent and regular inspection of the jobsites, materials, and equipment by competent persons designated by the employers.

For those companies interested in instituting a safety & health program, or reevaluating the program they have in place, three good resources include OSHA’s Construction eTool: Safety & Health Program Component,[5] its Recommended Practices for Safety and Health Programs in Construction,[6] and its Recommended Practices for Safety and Health Programs.[7]

As OSHA states in the Foreword to its Recommended Practices for Safety and Health Programs in Construction:

Establishing a safety and health program at your job site is one of the most effective ways of protecting your most valuable asset: your workers. Losing workers to injury or illness, even for a short time, can cause significant disruption and cost - to you as well as the workers and their families. It can also damage workplace morale, productivity, turnover, and reputation. 

Particularly with respect to health and safety, an ounce of prevention is worth a pound of cure.  As Sergeant Phil Esterhaus admonished each week on Hill Street Blues, “Let’s be careful out there.”  In the construction industry, this starts with a good safety and health program; take this time to reevaluate yours now.    

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For additional information regarding OSHA violations, or construction litigation in Colorado, you can reach out to Dave McLain by telephone at (303) 987-9813 or by e-mail at mclain@hhmrlaw.com.

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[1] https://www.osha.gov/pls/imis/citedstandard.naics?p_naics=2361&p_esize=&p_state=FEFederal.

[2] The full list of standards applicable to the construction industry can be found here: https://www.osha.gov/laws-regs/regulations/standardnumber/1926.

[3] https://www.osha.gov/complianceassistance/quickstarts/construction.

[4] https://www.osha.gov/enforcement/directives/cpl-02-00-124.

[5] https://www.osha.gov/SLTC/etools/construction/shprogram.html.

[6] https://www.osha.gov/Publications/OSHA3886.pdf

[7] https://www.osha.gov/shpguidelines/.

Colorado Legislature Postpones Indefinitely SB 20-093

As previously reported, for certain consumer and employment arbitrations, Senate Bill 20-93 would have:

• Prohibited the waiver of standards for and challenges for evident partiality prior to a claim being filed and required any waiver of such provisions after the claim is filed to be in writing;
• Provided that the right of a party to challenge an arbitrator based on evident partiality is waived if not raised within a reasonable time of learning of the information leading to the challenge but that such right is not waived if caused by the opposing party;
• Established ethical standards for arbitrators; and
• Required specified public disclosures by arbitration services providers but included protections for certain confidential information.

The SB 93 would also have required an individual arbitrator for certain consumer and employment arbitrations to make additional disclosures of information that might affect the arbitrator’s impartiality.  The Bill also specified how attorney fees and other reasonable expenses are to be awarded if a court vacates an award because of an arbitrator’s evident partiality or failure to make required disclosures and clarifies when appeals of orders may be made in consumer and employee arbitrations.

The Bill also provided that for a standard form contract involving a consumer or employee:

• Specified terms are unenforceable as against public policy;
• Including an unenforceable term constitutes a deceptive trade practice under the "Colorado Consumer Protection Act"; and 
• Determined how certain cost-shifting provisions are to be interpreted.

On June 4^th, the House Finance Committee postponed indefinitely SB 93.  I assume that the bill was killed because it was not Fast, Friendly (i.e., lacking opposition), and Free.  Though enough amendments were made to ameliorate some of the most serious concerns raised by opponents, including the construction industry, to get it out of the Senate, enough resistance remained to violate the “Friendly” test for whether the Colorado Legislature would pass is this year.  Stay tuned next year, as this issue is sure to have a repeat performance.

For additional information regarding construction litigation in Colorado, or the legislative measure which may impact such litigation, feel free to reach out to David M. McLain by telephone at (303) 987-9813 or by e-mail at mclain@hhmrlaw.com.

 

Scholarships Available for the 2020 CLM Claims College

I am pleased to have been invited to serve on the Executive Council and Faculty for this year’s CLM Claims College – School of Construction, which will be held at the Marriott Baltimore Waterfront from Wednesday, September 9, 2020 through Saturday, September 12, 2020.  This year’s Level 1 courses are being held virtually, so there is no need to travel to Baltimore if you are interested in starting the three-year program this year.

As a result of my service on the Executive Council, I can offer scholarships (registration fee only) to industry professionals (insurance - risk, adjusters, claims, etc. and corporate) interested in attending. Please e-mail me if you would like to take advantage of the free registration scholarship offered by the CLM.

2020 Claims College Overview

The education of claims resolution professionals is important to the CLM. That is why CLM established the Claims College in 2012 and enlisted some of the industry’s best professionals to create and teach courses. Since its inception, hundreds of students have attended the Claims College, earning their CCP (Certified Claims Professional) designation.

The College presents courses in eight three-level specialty schools and three one-level schools with more on the horizon. Schools include:

Casualty Claims

Claims Mediation

Construction

Cyber Claims

Extra-Contractual Claims

Leadership

Professional Lines

Property Claims

Transportation

Workers Compensation

Students must pass all three levels of a school to earn their CCP. Each level consists of reading materials, in-class instruction, group projects, and an exam. 

2020 School of Construction Overview

Construction claims present complexities in claim handling, are often multiparty cases with cross claims and third-party claims between and among the numerous defendants, intertwined with issues involving insurance coverage. The stakes for these types of cases are high as the damages claimed can be in the multi-millions. 

Competent construction claims handling requires an understanding of the distinct legal and practical issues between commercial and residential claims. The construction claims world is an unfriendly place for the claims professional who has not been properly trained and exposed to these issues.

The School of Construction will provide adjusters with the knowledge, tools, and understanding required to navigate these complex claims. Professionals seeking to expand their knowledge of construction risk concepts and seasoned professionals looking to move into construction claims are encouraged to attend.

About The CLM

The Claims and Litigation Management (CLM) Alliance is the only national organization created to meet the needs of professionals in the claims and litigation management industries. Founded in 2007, the CLM currently has more than 45,000 Members and Fellows—a number that grows by hundreds each month.

For additional information regarding the CLM Claims College, you can reach out to Dave McLain by telephone at (303) 987-9813 or by e-mail at mclain@hhmrlaw.com.