Ashburn Virginia Building Expert Directory

Construction Defects #10 On DBJ’s Top News Stories of 2015

December 10, 2015 — Beverley BevenFlorez-CDJ STAFF
The Denver Business Journal’s top 15 news stories of 2015 covers the “Battle Over Construction Defects.” Some developers and other groups have blamed the lack of condominium development in Denver and other Colorado cities on the state’s defect laws. After a construction-defects reform bill failed to pass the Colorado Legislature, several cities passed construction defect-related ordinances, according to the Denver Business Journal: “In November the Denver City Council voted 12-1 to approve an ordinance aimed at making it harder to file class-action lawsuits over construction defects within the city.” Read the court decision
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Homebuilding Design Goes 3D

June 17, 2015 — Beverley BevenFlorez-CDJ STAFF
The Houston Business Journal reported that some home builders are using new computer visualization technology to create 3D representations of home designs. Autodesk Revit not only helps the buyer visualize the home, but it also catches architectural design mistakes and can help homebuilders quantify all of the building materials necessary for a particular model. Mollie Silver, a senior designer with On Point Custom Homes, uses Autodesk Revit. “It changes the game for our clients, because this gives them a really good idea of what their home will look like in real life,” Silver told the Houston Business Journal. “If you give them floor plans, it just doesn’t give them the same idea.” Read the court decision
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Hawaii Federal District Court Denies Brokers' MSJ on Duties Owed In Construction Defect Case

October 19, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court for the District of Hawaii denied the brokers' motion for summary judgment seeking dismissal from claims that they inadequately advised the insured of the law regarding construction defects in Hawaii. Am Auto. Ins. Co. v. Haw. Nut & Bolt, Inc., 2017 U.S. Dist. LEXIS 148571. Safeway sued Hawaii Nut & Bolt (HNB) and others for construction defects in a newly constructed store. The underlying complaint alleged products liability claims against HNB as the distributor of the "VersaFlex Coating System." HSB had represented that the coating system was adequate for its intended use. The underlying complaint alleged failure of the VersaFlex Coating System in waterproofing the roof deck of the store. After the store opened, water leaks from the roof deck appeared. Safeway alleged they were caused by the cracks and failures in the waterproof membrane in the roof deck. HNB notified its insurers of the claims. The insurers defended HNB during the litigation subject to reservation of rights letters. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Crime Lab Beset by Ventilation Issues

January 29, 2014 — Beverley BevenFlorez-CDJ STAFF
A new crime lab in Clayton county, Missouri, is beset with “’hurricane-like’ gales and persistent dripping water that officials say threatened to contaminate key evidence from crimes,” reported the St. Louis Post-Dispatch. St. Louis County Police Chief Tim Fitch admitted that he didn’t believe any evidence has been destroyed yet, but we’re “talking about highly sensitive evidence from homicide scenes that we must assure is not being contaminated by leakage or other means.” According to the St. Louis Post-Dispatch, the “general contractor and public works official insist the problems—and extreme temperature differences among rooms—were glitches expected in any major project, and are being fixed.” Read the court decision
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Blog: Congress Strikes a Blow to President Obama’s “Fair Pay and Safe Workplaces” Executive Order 13673

March 22, 2017 — John P. Ahlers - Ahlers & Cressman PLLC
On October 25, 2016, the Federal Acquisition Regulatory Council (FAR Council) and the U.S. Department of Labor implemented former President Obama’s Executive Order 13673: “Fair Pay and Safe Workplaces” rules. The rules became effective on October 25, 2016 and fundamentally altered the way federal contractors and subcontractors will need to handle and resolve employment and labor claims, as well as compliance issues involving their entire workforce. The final rules can also result in otherwise-capable companies being “blacklisted” and effectively barred from federal contracts and subcontracts based on labor and employment law violations related or unrelated to prior or current federal contract performance. The centerpiece of the new regulatory scheme was the new disclosure and responsibility requirements. Contractors and subcontractors needed to disclose all “labor law decisions” that they had during the three years (prior to bid submission) as part of the process of applying for a new federal contract or subcontract. If a contractor or subcontractor has too many “labor law decisions” to report or the few it has are too severe, pervasive, repeated, or willful in the eyes of the government “experts,” the company could be deemed “non-responsible” and denied a contract. Read the court decision
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Reprinted courtesy of John P. Ahlers, Ahlers & Cressman PLLC
Mr. Ahlers may be contacted at jahlers@ac-lawyers.com

Pennsylvania’s Supreme Court Clarifies Pennsylvania’s Strict Liability Standard

January 14, 2015 — William Doerler and Edward Jaeger, Jr. – White and Williams LLP
In Tincher v. Omega Flex, Inc., -- A.3d --, 2014 WL 6474923 (Pa. Nov. 19, 2014), the Supreme Court of Pennsylvania discussed the Commonwealth of Pennsylvania’s products liability law and, overturning prior precedent, clarified the law. In particular, the Court, overturned Azzarello v. Black Brothers Company, 480 Pa. 547, 391 A.2d 1020 (1978), clarified the role of the judge and the jury in products liability cases and settled the question of whether Pennsylvania would adopt the Restatement (Third) of Torts: Products Liability §§ 1, et. seq. (Third Restatement) as the standard for deciding Pennsylvania products liability cases. The Tincher decision makes clear that Pennsylvania will continue to apply § 402A of the Restatement (Second) of Torts (Second Restatement) in products liability cases and that jurors, not the court, will decide the question of whether a product is in a defective condition. Plaintiffs may prove that a product is defective using either the consumer expectations test or the risk-utility test. Background The Tincher case arose out a fire that occurred at the home of Terrance and Judith Tincher on June 20, 2007. The Tinchers alleged that the fire started when a lightning strike near their home caused a small puncture in corrugated steel tubing (CSST) carrying natural gas to a fireplace located in their home. The defendant, Omega Flex, Inc. (Omega Flex) manufactured the CSST. Reprinted courtesy of William Doerler, White and Willams LLP and Edward Jaeger, Jr., White and Williams LLP Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com; Mr. Jaeger may be contacted at jaegere@whiteandwilliams.com Read the court decision
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Oregon Courthouse Reopening after Four Years Repairing Defects

April 01, 2014 — Beverley BevenFlorez-CDJ STAFF
The Courthouse Square in Marion County, Oregon is due to reopen after four years and nearly $23 million of repair costs to fix structural defects, according to the Statesman Journal. The square includes a courthouse building and bus mall, and is jointly owned by the county and transit district. Two years after the Courthouse Square had been built, cracks were observed “in the building’s walls” and “paving stones on the bus mall shifted and settled.” A construction defect suit was filed in 2006. However, the situation worsened in July of 2010 when “engineers determined that the entire complex was dangerous,” according to the Statesman Journal. “Building safety officials gave Courthouse Square’s occupants 60 days to move out, forcing county and transit district operations into temporary leased space.” Now that the structural repairs have been completed, Dave Clark, project manager with Structural Preservation Systems LLC (the company awarded the repair contract), stated that the building’s structure is now stronger than most buildings. “If there’s an earthquake, come to this building,” Clark said. Read the court decision
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Reinsurer Must Reimburse Health Care Organization for Settlement Costs

June 17, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Indiana Supreme Court reversed summary judgment issued to reinsurer Continental Casualty Company (CNA) and determined it must reimburse the insured for settlement costs under the E & O policy. Wellpoint, Inc., et al. v. National Union Fire Ins. Co. of Pittsburgh, PA, et al., 2015 Ind. LEXIS 316 (Ind. April 22, 2015). Anthem, Inc. was a large managed health care organization. Anthem was its own primary and excess insurer for E&O liability. It had numerous excess reinsurers. Beginning in 1998, anthem was confronted by various lawsuits alleging it and other managed care organizations failed to pay claims in a full and timely manner, thereby breaching state and federal statutes. The various lawsuits alleged substantially the same wrongful conduct, namely that after promising to pay doctors in a timely manner for their services, Anthem sought to improperly deny, delay and diminish payments due. The cases were consolidated into a federal multi-district litigation proceeding in the Southern District of Florida. Claims for breach of contract, unjust enrichment, and violations of state prompt pay statutes were dismissed or dropped. Anthem then settled the underlying litigation in July 2005 without admitting and instead denying any wrongdoing or liability. The settlement called for both cash payments and implementation of specific business practices consistent with requested injunctive relief. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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