The Library

The COVID-19 crisis has affected virtually every aspect of business throughout the world, and the insurance industry is no exception. Quarantines, government ordered shutdowns and restrictions, sick employees and sick customers are just a few of the occurrences that will lead business owners, sooner or later, to ask “Do I have coverage for that?” As is true virtually every other time that question is asked, the answer is, “It depends.” There are two primary factors that control the answer: (1) the specific facts of your particular situation and (2) the specific language of your policy. This renders the making of […]

While Virginians are living under Governor Northam’s executive orders, staying home and limiting unnecessary contact with others, Virginia construction projects are proceeding. With the progress on these projects, deadlines for perfecting and enforcing mechanic’s liens remain. The question then arises whether the recent orders by the Supreme Court of Virginia affect the deadlines for perfecting and/or enforcing mechanic’s liens. Having reviewed these orders, we recommend that contractors, subcontractors, and material suppliers proceed to record and enforce their mechanic’s liens as normal. Better to be safe than to risk losing the benefit of a lien. As a bit of background, on […]

Initial Guidance and Form Application published by Department of Treasury and the Small Business Administration Late on Tuesday, March 31, 2020, the Department of Treasury and the Small Business Administration issued initial guidance related to the Paycheck Protection Program. Included in this guidance is the form application for borrowers to use when applying for a covered loan under the Paycheck Protection Program. When can borrowers begin to apply for Paycheck Protection Program covered loans? The guidance from the Department of Treasury states that lenders participating in the Paycheck Protection Program will begin processing loan applications as soon as this Friday, […]

Late in the day on April 2, 2020, the Department of Treasury published the Interim Final Rule for the Paycheck Protection Program on its website as well as an updated application. The Department of Treasury has previously stated that covered loan applications under the Paycheck Protection Program would begin to be processed by participating lenders as early as today, Friday, April 3, 2020. Many lenders have expressed concern over potential liability exposure for lenders participating in the Paycheck Protection Program as well as with the lack of specificity and guidance included in the text of either the CARES Act or […]

Written by Todd A. Leeson and Kelsey M. Martin, Gentry Locke Attorneys March 27, 2020 Last night, the Department of Labor Wage and Hour Division (WHD) released its second round of FAQs [#15–37] addressing the Families First Coronavirus Response Act. The FAQs can be found here. A few important takeaways: Employers are advised to require employees to submit documentation to verify their need for emergency paid sick leave or extended FMLA leave [FAQ #16]. Leave can only be used intermittently for child care reasons and when the employer consents to such intermittent leave [FAQs #20–22]. Employees who are furloughed or […]

Written by Todd A. Leeson and Kelsey Martin, Gentry Locke Attorneys March 25, 2020 On March 24, 2020, the U.S. Department of Labor Wage-Hour Division (WHD) published its “first round” of guidance regarding the new Families First Coronavirus Response Act (“FFCRA” or the “Act”). The Act was signed into law on March 18, 2020. As you likely know by now, the Act basically provides that private sector employers with 499 or fewer employees must give eligible employees up to 80 hours of emergency paid sick leave (EPSL), and up to 12 weeks of emergency paid FMLA leave (EFLMA) for defined […]

With multiple states adopting lockdown orders to combat the COVID-19 pandemic, construction projects are being impacted. Although many states, including Virginia, have considered the construction industry, construction material suppliers/retailers to be essential businesses that are not affected by lockdown or shelter in place orders, construction projects are being impacted, and COVID-19 lockdown related delays are all but inevitable. Recent reports suggest that the supply chains for construction materials have been impacted by COVID-19 lockdowns in multiple countries. See: https://archpaper.com/2020/03/coronavirus-construction-supply-chain/. Corona virus related lockdowns are resulting in closed factories, shipping delays, and unavailability of workers in both the factory and in […]

We recently wrote about COVID-19 related delays, and providing notice of such delays, here. When reviewing the delay clauses in your contracts, you need to pay attention for the delaying events that are excusable, as well as those that are compensable. The Executive Director and Senior Counsel for ConsensusDocs (Brian Perlberg, Esq.) recently pointed out that Section 6.3.1(j) of the “ConsensusDocs 200 Owner/Constructor Agreement with General Conditions” specifically allows for delays that are “reasonably due to epidemics.” See: https://www.consensusdocs.org/consensusdocs-addresses-coronavirus-delay-risk-explicitly-other-standard-documents-do-not/?utm_source=informz&utm_medium=email&utm_campaign=informz_email&_zs=ICd0d1&_zl=n51d6 Mr. Perlberg also pointed out that although the AIA documents, and other standard construction contract forms, do not expressly mention epidemics […]