Massachusetts Federal Court Rejects Adria Towers, Finds Construction Defects Not an “Occurrence”
July 03, 2022 —
Eric B. Hermanson & Austin D. Moody - White and WilliamsIn an important ruling for insurers, U.S. District Court Judge Patti Saris found that Massachusetts does not follow the position taken in Cypress Point Condo Association v. Adria Towers, LLC, 226 N.J. 403, 418 (2016), i.e., it does not hold that "faulty workmanship claims [should be recognized] as ... an 'occurrence,' thus triggering coverage, 'so long as the allegedly defective work [was] performed by a subcontractor rather than the policyholder itself."
[1]
Instead, Judge Saris reaffirmed earlier Massachusetts authority holding faulty work is not an "occurrence" for coverage purposes,
[2] and found this authority applied whether or not the work in question was subcontracted.
In the alternative, Judge Saris found, even if a contractor's faulty work could be deemed an an "occurrence," such work did not constitute covered "property damage," because none of the alleged damage was "outside the scope of the work that Tocci was contractually required to fulfill as general contractor."
[3]
Reprinted courtesy of
Eric B. Hermanson, White and Williams and
Austin D. Moody, White and Williams
Mr. Hermanson may be contacted at hermansone@whiteandwilliams.com
Mr. Moody may be contacted at moodya@whiteandwilliams.com
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Insured's Commercial Property Policy Deemed Excess Over Unobtained Flood Policy
June 10, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe court granted the insurer's motion for summary judgment, deciding that there was no breach of the policy for failure to pay for flood damage when the insured failed to obtain a policy under the National Flood Insurance Program (NFIP). 570 Smith St. Realty Corp. v. Seneca Ins. Co. Inc., 2019 N.Y. Misc. LEXIS 1773 (N.Y. Sup. Ct. April 4, 2019).
The insured's property in Brooklyn was insured by Seneca. Included in the policy was flood coverage in the amount of $1 million with a $25,000 deductible. While the policy was in effect, Hurricane Sandy hit, damaging the property. Plaintiffs timely filed a claim seeking reimbursement of up to policy limits. Seneca paid only $35,883 and later made an additional payment of $33,015.
The insured sued for, among other things, breach of the policy for failure to properly indemnify for the losses. Seneca moved for partial summary judgment dismissing the breach of policy claims. Seneca pointed out that the "Other Insurance" provision in the Flood Coverage Endorsement of the policy stated that if the loss was eligible to be covered under a NFIP policy, but there was no such policy in effect, the insurer would only pay for the amount of loss in excess of the maximum limit payable for flood damage under the policy. The maximum NFIP coverage was $500,000. The insured's loss caused by flood was less than $500,000.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
New York Court of Appeals Takes Narrow View of Labor Law Provisions in Recent Cases
July 03, 2022 —
Lisa M. Rolle & Matthew Feinberg - Traub LiebermanSince the end of March, the New York State Court of Appeals has issued decisions in favor of the defense concerning New York Labor Law §240 and §241. These pro-defendant decisions take a narrow view of the scope of the Labor Law provisions. However, while it remains to be seen how the Court’s below will apply the Court of Appeal’s reasoning, these recent decisions are beneficial for the defense bar going forward.
In Toussaint v Port Auth. of N.Y. & N.J March 22, 2022 N.Y. LEXIS 391 | 2022 NY Slip Op 01955 | 2022 WL 837579, the Court held that 12 NYCRR 23-9.9 (a), does not set forth a concrete specification sufficient to give rise to a non-delegable duty under Labor Law § 241 (6). In Toussaint Plaintiff, who was an employee of Skanska USA Civil Northeast, Inc., brought the lawsuit against the Port Authority asserting claims under Labor Law § 200 (1) and Labor Law § 241 (6) after he was struck by a power buggy while operating a rebar-bending machine at the World Trade Center Transportation Hub construction site owned by the Port Authority of New York and New Jersey. Power buggies are small, self-operated vehicles used to move materials on construction sites. On the day of the accident, a trained and properly designated operator drove the buggy into the area near the plaintiff's workstation. That vehicle operator got off the vehicle, but short time thereafter, another worker—who was not designated or trained to do so—drove the buggy a short while prior to losing control and striking plaintiff. Plaintiff relied upon 12 NYCRR 23-9.9(a) which states that “[no person other than a trained and competent operator designated by the employer shall operate a power buggy.” In rejecting plaintiff’s argument the Court held that the "trained and competent operator" requirement is general, as it lacks a specific requirement or standard of conduct.
Reprinted courtesy of
Lisa M. Rolle, Traub Lieberman and
Matthew Feinberg, Traub Lieberman
Ms. Rolle may be contacted at lrolle@tlsslaw.com
Mr. Feinberg may be contacted at mfeinberg@tlsslaw.com
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A Court-Side Seat: Recent Legal Developments at Supreme and Federal Appeals Courts
December 18, 2022 —
Anthony B. Cavender - Gravel2GavelThis is a review of initial Supreme Court and Federal Appeals Courts oral arguments and other matters in October 2022.
Oral Arguments at the Supreme Court
Michael Sackett, et ux., v. Environmental Protection Agency
The Supreme Court’s 2022 term began on October 3, 2022, with this important oral argument. For many years, the petitioner has encountered EPA opposition to the construction of a home on his property located near a lake in Idaho. The agency insists that the land is subject to federal regulatory jurisdiction, in that a Clean Water Act permit will be needed before work can proceed. Several courts have already weighed in on this issue; whether the land in question is considered a regulated “wetlands” pursuant to the “significant nexus” test developed by the Court in the Rapanos case decided in 2006. The oral argument was fairly long and spirited. The justices appear to believe that the “significant nexus” is unworkable because in many instances it provides little or no guidance to landowners as to whether their property may be subject to federal jurisdiction, and thus subject to civil and even criminal penalties. Justice Kavanaugh remarked that “this case is going to be important for wetlands throughout the country and we have to get it right.” Later, Justice Gorsuch lamented the fact that implementing a test for federal jurisdiction under the Clean Water Act test is so difficult to apply: “If the federal government doesn’t know [if a property is adjacent to navigable water and is regulated,] “does a reasonable landowner have any idea.” The issue is very difficult to resolve, and the Congress has indicated that is has no interest in entering this regulatory thicket.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
North Carolina Weakened Its Building Codes in 2013
October 09, 2018 —
Ari Natter - BloombergFive years ago, encouraged by home builders and an anti-regulatory zeal, lawmakers in North Carolina joined other states in weakening building code requirements.
It’s a decision they may regret as Hurricane Florence takes aim at the Carolinas.
The Legislature in 2013 increased the amount of time between updates to its building code from three years to six. That means that updates that set new standards for elevating the floors in flood-prone homes aren’t in effect, according to the Federal Alliance for Safe Homes Inc., a non-profit disaster safety organization.
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Ari Natter, Bloomberg
Wyoming Supreme Court Picks a Side After Reviewing the Sutton Rule
January 16, 2024 —
Ryan Bennett - The Subrogation StrategistIn a matter of first impression, the Supreme Court of Wyoming (Supreme Court), in West American Insurance Company v. Black Dog Consulting Inc., No. S-23-0052, 2023 WY 109, 2023 Wyo. LEXIS 111, examined whether a landlord’s insurer could pursue a subrogation claim against a tenant who caused a fire loss. The Supreme Court, applying a case-by-case approach, found that the insurer could not subrogate against the tenant.
West American Insurance Company (West) insured Profile Properties (Profile), which owned commercial property in Cheyenne, Wyoming. Black Dog Consulting Inc., d/b/a C.H. Yarber (Yarber) leased commercial space from Profile where it operated a metal fabrication business. The lease agreement between Profile and Yarber required Yarber to pay the full expense of Profile’s blanket insurance policy, which included general commercial liability insurance and fire and extended coverage insurance on the building.
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Ryan Bennett, White and Williams LLPMr. Bennett may be contacted at
bennettr@whiteandwilliams.com
Note on First-Party and Third-Party Spoliation of Evidence Claims
October 30, 2018 —
David Adelstein - Florida Construction Legal UpdatesIn an earlier posting, I talked about spoliation of evidence. This posting discussed first-party spoliation of evidence which is where a party in a lawsuit has destroyed or lost potentially important documents or evidence. This type of spoliation of evidence does not give rise to an affirmative claim, but could be addressed by the trial court imposing sanctions or giving the devastating adverse inference jury instruction.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
More Thoughts on “Green” (the Practice, not the Color) Building
February 01, 2021 —
Christopher G. Hill - Construction Law MusingsIt has been a while since I “mused” on the green building landscape. While I am a LEED AP and have presented on green (read “sustainable”) building in the past, I am not totally sold on LEED as the be all end all in sustainable construction (the USGBC is a private rating organization that, like the rest of us, is imperfect). I’ve also discussed, both here and elsewhere, the potential risks that come with any new(ish) building process.
A recent post by my fellow construction attorney Matt Bouchard (@mattbouchardesq) piqued my interest and started me thinking yet again. Matt’s recent post, entitled Is the U.S. Green Building Council Becoming a Not-So-Jolly Green Giant? outlines recent developments in the sustainable building world (remember “green” is not a specification, but a color), and some of the debate out there among those in the know. From a great infographic on the Top 10 LEED states (Virginia is 3rd) to some sniping from the USGBC (read the LEED folks) toward the GBI (Green Globes) to the fact that LEED is losing some traction as the primary governmental green building certification platform, Matt’s post is worth a read.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com