Legal Responsibility

Legal Responsibility

HEADNOTES

To be eligible, work must be the legal responsibility of the applicant requesting assistance and must be required as a result of the declared incident. If the facility is under construction by a contractor at the time of the incident, FEMA reviews the contract to determine whether the applicant is legally responsible for the repair of damage caused by the incident. At a minimum, FEMA evaluates the contract to determine if it: identifies the contractor or owner as being responsible for disaster-related repairs; requires a builder’s risk policy for losses that occur while the contractor has control of the facility; has a Force Majeure provision, or has a provision that identifies the point at which the contract transfers legal responsibility for the facility, or portions of the facility, back to the owner. The contract does not include any Force Majeure provision or any other provision that clearly identifies whether the Applicant’s contractor or the Applicant is legally responsible for repair of damage caused by a natural disaster. The Applicant’s insurance policy only insures the contractor’s property interest. Additionally, the costs are associated with the renovation of the Building, which is not related to the performance of eligible work required as a result of the disaster.

CONCLUSION

The Applicant did not demonstrate it is legally responsible for the work or that the claimed costs relate to the performance of eligible work. Therefore, this appeal is denied.

AUTHORITIES

Stafford Act § 406(a)(1)(A) and (e)(2). 44 C.F.R. § 206.223(a)(1) and (a)(3) PAPPG, at 52, 53, 64, 65.

44 C.F.R. § 206.223(a)(1) and (a)(3)
Legal Responsibility