Insurer Must Defend Construction Defect Claims
October 07, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe federal district court found that under New York law, the insurer had a duty to defend construction defect claims where damage to property other than the insured's work product was possible. Am.Home Assur. Co. v. Allan Window Techs., 2016 U.S. Dist. LEXIS 101118 (S.D. N. Y. Aug 2, 2016).
Kent Avenue Property ("Kent") sued Allan Window Technologies, Ltd. ("Allan"), alleging that Allan entered a written contract for the design, manufacture, assembly and installation of the window wall systems for a residential condominium building. Pursuant to the contract, Allan agreed to correct all work rejected as defective and to bear all costs for correcting the work. According to the complaint, the window wall systems and vent windows installed by Allan were not water-tight or air-tight, and therefore did not meet the air and water penetration requirements of the contract.The contract had an indemnification provision under which Allan agreed to indemnify, defend and hold harmless Kent from all losses, claims, lawsuits, etc. arising out of damage or injury to property at the project site. Kent sued for: (1) breach of contract; (2) breach of warranty, and (3) contractual indemnity.
American Home agreed to defend Allan under a full reservation of rights. American Home then sued for a declaratory judgment to establish it had no duty to defend or indemnify.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Spotting Problem Projects
October 26, 2017 —
David R. Cook Jr. - Autry, Hanrahan, Hall & Cook, LLPPerhaps more than any other specialty contractor, electrical contractors bear the brunt of the “problem project.” Long after most other trades have completed their work and scattered in the wind, electrical contractors remain on site until the owner’s last inspection. And when the project is a “problem project,” the owner or prime contractor tend to liberally share their losses and liquidated damages among those specialty contractors remaining on site at the end. So what is an electrical contractor to do when the project starts coming off the rails?
What is a Problem Project?
First, it helps to identify the attributes of a problem project. While there are many negative qualities of a bad job, a problem project is one that busts budgets – whether labor, material, or time. Most commonly, the problem project will significantly exceed the labor budget. Because an electrical contractor’s most important (and understandably expensive) resource is its people, the labor budget is critical to the success of a job. When a project suffers delays or is ineptly managed, the labor costs soar, turning a potentially profitable job into a disaster.
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David R. Cook, Autry, Hanrahan, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
Pennsylvania: When Should Pennsylvania’s New Strict Products Liability Law Apply?
February 05, 2015 —
Robert Caplan and Timothy Carroll – White and Williams LLPPennsylvania has maintained its own peculiar brand of strict products liability law ever since the Supreme Court decided Azzarello v. Black Bros. Co., Inc.[1] in 1978. Maligned by many as “absurd and unworkable,”[2] if “excessively” orientated towards plaintiffs,[3] Azzarello’s unique approach to the Restatement (Second) of Torts § 402A (1965)[4] has recently been judicially consigned to the dustbin of history.
In Tincher v. Omega Flex, Inc.,[5] decided on November 19, 2014, the Pennsylvania Supreme Court expressly overruled Azzarello leaving in its place a new alternative standards approach to proving a Section 402A claim. An injured worker or subrogated insurer[6] must still prove that the seller, whether a manufacturer or a distributor, placed the product on the market in a “defective condition unreasonably dangerous to the consumer.”[7] But now, under Tincher, a plaintiff must use either a “consumer expectation test” or a “risk-utility test” to establish that criterion.[8]
Reprinted courtesy of
Robert Caplan, White and Williams LLP and
Timothy Carroll, White and Williams LLP
Mr. Caplan may be contacted at caplanr@whiteandwilliams.com; Mr. Carroll may be contacted at carrollt@whiteandwilliams.com
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Jarred Reed Named to the National Black Lawyers’ “Top 40 Under 40” List for Second Consecutive Year
August 07, 2023 —
Lewis BrisboisMadison County, Ill. (July 21, 2023) – Madison County Associate Jarred Reed was named to The National Black Lawyers (NBL) “Top 40 Under 40” list for the
second year in a row.
The NBL “Top 40 Under 40” recognizes the most talented Black attorneys under the age of 40 who have an outstanding reputation among peers, the judiciary, and the public. The honorees on this list are nominated from leading lawyers, current members, and Executive Committee members.
“We feel so blessed to be able to call Jarred our colleague," said Madison County Managing Partner Jeffrey Bash. "He is a joy to work with and our clients are well served with him as part of their defense team.”
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Lewis Brisbois
How Drones are Speeding Up Construction
July 26, 2017 —
Aarni Heiskanen - AEC BusinessDrones, or unmanned aerial vehicles (UAVs), are being used in many industries, e.g. agriculture, construction, mining, oil & gas, mapping, and surveying. In construction, drones have proven to be quite disruptive, offering huge productivity increases.
Gartner’s famous Hype Cycle for Emerging Technologies, 2016, positioned drones as just entering the Peak of Inflated Expectations. Gartner claims that, “Smart machine technologies will be the most disruptive class of technologies over the next 10 years due to radical computational power, near-endless amounts of data, and unprecedented advances in deep neural networks.”
Commercial UAVs are one of the smart machine technologies in question, together with smart robots, autonomous vehicles, cognitive expert advisors, and others.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
info@aepartners.fi
CDJ’s #4 Topic of the Year: KB Home Greater Los Angeles, Inc. v. The Superior Court of Los Angeles County
December 31, 2014 —
Beverley BevenFlorez-CDJ STAFFKB Home, another case that clarified California’s SB 800, was analyzed by Amy Kuo Alexander of Gordon & Rees LLP in her article on “New Developments Related to SB 800.”
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KB Home was also discussed by Cvitanovic and Stefco of Haight Brown & Bonesteel in their article on Burch.
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Lakewood Introduced City Ordinance to Battle Colorado’s CD Law
September 24, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to The Denver Post, the Lakewood City Council “introduced an ordinance that would make it more difficult for homeowners associations to sue developers for construction defects and give builders more opportunity to fix problems before litigation begins.” A hearing and final vote is scheduled for October 13th.
"If there are defects, we want to get them fixed rather than dragging this through the courts for years," Lakewood Mayor Bob Murphy told The Denver Post. Murphy believes the ordinance will bring “more diverse housing options to Lakewood, especially around stations along the Regional Transportation District’s West Rail Line.” Lakewood’s City Planner Travis Parker also declared that the defects law is to blame for the lack of condos in the area.
However, some believe that “Lakewood is overstepping its bounds as a home-rule city,” according to The Denver Post. "What they're trying to do is use an ordinance to circumvent state law in order to make it impossible for homeowners to seek redress against builders for defects," Molly Foley-Healy an attorney who serves as legislative liaison for the Community Associations Institute's Legislative Action Committee told the Post. “Mayor Murphy needs to incentivize quality construction in Lakewood instead.”
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Alabama Supreme Court Reverses Determination of Coverage for Faulty Workmanship
August 26, 2019 —
Tred R. Eyerly - Insurance Law HawaiiAlthough the lower court held that the insured contractor was entitled to coverage and indemnification under a CGL policy despite claims based upon faulty workmanship, the Alabama Supreme Court reversed. Nationwide Mut. Fire Ins. Co. v. David Group, Inc., 2019 Ala. LEXIS 52 (Ala. May 24, 2019).
The David Group (TDG) specialized in custom-built homes. The Shahs purchased a newly built home from TDG in October 2006. After moving in, the Shahs experienced problems with their new home that TDG was unable to correct. In February 2008, the Shahs sued TDG. The complaint alleged that serious defects existed, resulting in health and safety issues, building code violations, poor workmanship, misuse of construction materials, and disregard of property installation methods. The case went to arbitration and an award of $12,725 was issued to the Shahs.
Nationwide was TDG's CGL carrier and initially defended TDG. After Nationwide withdrew its defense, TDG sued seeking a judgment declaring that Nationwide was obligated to defend and indemnify. The trial court denied Nationwide's motion for summary judgment and issued a partial summary judgment in favor of TDG on the issue of coverage. Nationwide appealed.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com