Engineer TRC Fends Off Lawsuits After Merger
August 17, 2017 —
Scott Van Voorhis - Engineering News-RecordIn the wake of its merger with an investment fund, TRC Cos. has been busy swatting away pesky shareholder lawsuits driven by law firms who specialize in such litigation.
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ENR.com@bnpmedia.com
Energy Company Covered for Business Interruption Losses Caused by Fire and Resulting in Town-Ordered Shutdown
February 15, 2021 —
David G. Jordan - Saxe Doernberger & Vita, P.C.In the case of NextSun Energy Littleton, LLC v. Acadia Ins. Co., the United States District Court of Massachusetts held that once direct physical damage from a covered peril causes a covered business interruption loss, any increase in the duration of such business interruption, due to the enforcement of an ordinance or law, extends the coverage period provided for lost income. The Court further held that a policy exclusion for business interruption due to the enforcement of any ordinance or law not in force at the time of the loss only applies when the ordinance or law itself, not the enforcement action that it authorizes, was not in force at the time of the loss.
The case involved a solar panel company, NextSun Energy Littleton (NextSun), that operated solar panel arrays providing electricity to the town of Littleton, Massachusetts. Due to a fire, 88 of the solar panels were damaged, and the Town immediately issued a “red-tag” order halting all energy-generating activity pending a safety inspection. The plaintiff purchased insurance for its panels along with “Energy Generating Income” (EGI) coverage, from the defendant, Acadia Ins. Co. (Acadia). The EGI policy covered “direct physical loss or damage” to “renewable energy generating equipment” and also covered the actual loss of surplus power income incurred during the interruption period. However, it excluded interruption of energy-generating income “caused by the enforcement of any ordinance, law, or decree … not in force at the time of loss.”
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David G. Jordan, Saxe Doernberger & VitaMr. Jordan may be contacted at
DJordan@sdvlaw.com
Design Professionals Owe a Duty of Care to Homeowners
July 09, 2014 —
Stephen A. Sunseri - Gatzke Dillon & Ballance LLPToday, the California Supreme Court, in Beacon Residential Community Association v. Skidmore, Owings & Merrill LLP (Jul. 3, 2014, S208173) __Cal.4th__ [2014 WL 2988058], held that architects owe a duty of care to future homeowners of residential buildings, particularly if they act as principal architects on a project, and are not subordinate to any other design professional. Until now, design professionals were rarely held liable, if at all, for third-party claims for design deficiencies.
In Beacon, architectural and engineering firms provided sole design services for The Beacon residential condominium project, a 595 unit project located in San Francisco. The condominiums were initially leased after construction, but were eventually sold to individual owners. The design firms claimed their role was limited to only providing design recommendations to the project's owner, who ultimately controlled and directed which design elements to construct. Not long after completion of the project, the homeowners' association sued the design firms (among others) for construction defects and damages related to alleged water infiltration, inadequate fire separations, structural cracks, and other purported safety hazards. The claims included allegations under SB 800 (the "Right to Repair Act," Civil Code §895, et seq.) and common law negligence theories.
The design firms demurred to the complaint, which the trial court sustained. On appeal, however, the Court of Appeal reversed the trial court's ruling, concluding that the design firms owed a duty of care to third parties. The Supreme Court affirmed.
Historically, liability for deficient goods and services hinged on whether there is a contractual relationship between a buyer and seller. However, the Supreme Court recognized that in certain circumstances a contractual relationship is not required. In its ruling, the Supreme Court relied on fifty year old precedent, Biankanja v. Irving (1958) 49 Cal.2d 647. In Biankanja, the California Supreme Court outlined several factors to determine whether a duty of care is owed to non-contracting third parties. Although Biankanja analyzes many factors, emphasis was placed placed on whether a purported harm was foreseeable by a defendant's conduct and how close of a connection there is between that conduct and an injury.
Here, the Court recognized that even though the design firms did not actually build the project, they did conduct weekly inspections, monitored contractor compliance, altered design elements when issues arose, and advised the owners of any nonconforming work. In applying the Biankanja factors to these circumstances, the Supreme Court determined the homeowners were intended beneficiaries of the design work and the design firms' primary role in the project bore a close connection to the alleged injuries. As a result, the Supreme Court held that the allegations in the complaint were sufficient and, if proven, establishes the defendants owed a duty of care to the homeowners' association.
Interestingly, the Supreme Court sidestepped the issue of whether SB 800 was intended to exclusively capture design defects in its scope, even though the Court indicated it may. Nevertheless, the Supreme Court's ruling is significant. The case will affect how design professionals allocate risk on future residential projects, perhaps by raising design prices or insuring around the liability exposure. The likely outcome, however, is that design professionals are now targets in construction defect lawsuits.
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Stephen A. Sunseri, Gatzke Dillon & Ballance LLPMr. Sunseri may be contacted at
ssunseri@gdandb.com
Hunton Insurance Partner Among Top 250 Women in Litigation
October 05, 2020 —
Hunton Insurance Recovery BlogBenchmark Litigation recently identified the Top 250 Women in Litigation. The list is based on an extensive research process, feedback from clients, and one-on-one interviews. Benchmark has identified the litigators who have participated “in some of the most impactful litigation matters in recent history” and have earned “hard-won respect of their peers and clients.”
Lorelie S. Masters was included in the list for the seventh time.
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Hunton Andrews Kurth LLP
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Quick Note: Can a Party Disclaim Liability in their Contract to Fraud?
April 11, 2022 —
David Adelstein - Florida Construction Legal UpdatesIt is possible for a party to contractually disclaim or otherwise foreclose liability to a fraud claim. However, let’s be honest. It can be done, but rarely is and would require very specific language to EXPLICITLY disclaim or foreclose such liability to a fraud claim.
A recent case, discussed
here, exemplifies this point where as-is language in a purchase-and-sale agreement was NOT specific to contractually foreclose or disclaim liability to a fraud claim.
For a party to contractually waive a fraud claim, there needs to be an express waiver of liability for fraud that might have been made and that any fraudulent misrepresentation, if such fraud was committed, was disclaimed and would not destroy the validity of the parties’ contract.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Hotel Claims Construction Defect Could Have Caused Collapse
December 30, 2013 —
CDJ STAFFThe owners of the Crowne Plaza New Orleans Airport, in Kenner, Louisiana, have filed a lawsuit claiming that a defective beam installed during renovations put the building at risk of collapse, reports The Louisiana Record. The hotel was sold to its current owners, 2929 Williams Blvd, LLC, in 2006, and the renovations began after Hurricane Katrina in 2007. The renovations converted an indoor pool area into a ballroom.
The renovations were finished in 2008, but hotel staff noticed the walls and ceiling of the ballroom were sagging by September 2011. A structural engineer determined that a main beam had failed, risking collapse of the entire building. The hotel owners set upon repairing the structure and now seek reimbursement. 2929 Williams Blvd., LLC is suing Trimark Constructors LLC, Kyle Associates LLC, and Avengo Baily & Associates, Inc. for an unspecified amount of damages.
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Large Canada Employers and Jobsites Mandate COVID-19 Vaccines
November 08, 2021 —
Scott Van Voorhis - Engineering News-RecordThe push for COVID-19 vaccine mandates is gaining traction in Canada’s construction industry, with governments, large project sites and major employers setting new inoculation deadlines.
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Scott Van Voorhis, Engineering News-Record
ENR may be contacted at enr@enr.com
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Edinburg School Inspections Uncovered Structural Construction Defects
April 11, 2018 —
David Suggs – Bert L. Howe & Associates, Inc.Yesterday, the Herald reported that six schools and a nursery have been affected by construction defects in Edinburg. For every eight properties inspected by council, one was found to share analogous issues which caused “a wall to collapse at a city primary school in 2016.” Furthermore, over the course of eighteen months, inspectors will observe more buildings across Edinburg in order to guarantee their “structural safety.”
At Oxgangs Primary School, during Storm Gertrude in January 2016, nine tons of masonry fell from the side of a building. The Herald reported 17 other schools across Edinburg closed due to safety concerns. All schools closed were part of the “same private finance initiative.” Moreover, there have been 20 other examples of defects found that are alike, in which checks were “carried out at public buildings.”
Christine Jardine, a Scottish Liberal democrat who represents Edinburg West, states that the findings were “scandalous,” and “simply not good enough.” In addition, Jardine points out that the council is responsible for buildings to meet the highest of standards, and proper checks are necessary, in order to ensure the safety of their children. Lastly, Jardine suggests that the Scottish government should no longer rely on the funding from local authority. Instead, she proposes that the government must be accountable for “improving council funding.”
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