Construction Defect Coverage Barred Under Business Risk Exclusion in Colorado
February 14, 2013 —
CDJ STAFFA federal court in Colorado recently applied the business risk exclusion to a construction defect case. Aaron Mandel and Stevi Raab of Sedgwick Law discuss this in Construction Defect Coverage Quarterly. The court found that the business risk exclusion barred coverage for an underlying construction defect. In the construction defect case, the Creek Side at Parker homeowners association sued the developer and builder. One such alleged defect was that “the plumbing contractor’s faulty installation of sewer and water lines damaged the lines themselves, caused surrounding asphalt and concrete to crack and deteriorate, and resulted in water intrusion.”
The court concluded that this damage to non-defective work was an occurrence, but the exclusion in the contract covered only property damage that occurred “while the work is ongoing.” The court concluded that the business risk exclusion barred coverage.
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Kentucky Supreme Court Creates New “Goldilocks Zone” to Limit Opinions of Biomechanical Experts
July 24, 2023 —
Aimee E. Muller - Lewis BrisboisLexington, Ky. (June 26, 2023) – In a recent decision, the Kentucky Supreme Court placed stricter limitations on the opinions that biomechanical engineers may offer at trials in Kentucky courts. Specifically, the published opinion issued in Renot v. Securea, Supreme Ins. Co., 2023 Ky. LEXIS 163, recognizes a new space for the testimony of biomechanics experts – “The Goldilocks Zone.”
Where is the Goldilocks Zone?
The Goldilocks Zone is a perfect place in which the proffered testimony is neither too specific such that it wanders into the realm of medical causation, nor too general such that it fails to help a lay jury. Specifically, a biomechanical engineer’s expert testimony must be limited to the forces generated by the subject collision, the generally anticipated responses of a hypothetical person’s body to those forces, and the range of typical injuries resulting from such forces. Moreover, following Renot, a biomechanical engineer’s proffered opinions no longer may enter into the realm of diagnosing a specific medical condition associated with a traumatic injury. Instead, the question of whether a trauma actually caused or exacerbated a plaintiff’s injuries falls solely within the purview of a medical doctor.
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Aimee E. Muller, Lewis BrisboisMs. Muller may be contacted at
Aimee.Muller@lewisbrisbois.com
Examination of the Product Does Not Stop a Pennsylvania Court From Applying the Malfunction Theory
June 28, 2021 —
Gus Sara - The Subrogation StrategistPennsylvania recognizes the malfunction theory in product liability cases. This theory allows a plaintiff to circumstantially prove that a product is defective by showing evidence of a malfunction and eliminating abnormal use or reasonable, secondary causes for the malfunction. The malfunction theory is available to plaintiffs as an alternative to proving a traditional strict product liability case in those circumstances where direct evidence of a product defect is not found. In Pa. Nat’l Mut. Cas. Ins. Co. v. Sam’s East, Inc., 727 MDA 2020, 2021 Pa. Super. Unpub. LEXIS 752, the Superior Court of Pennsylvania (Superior Court) considered whether the plaintiffs could avail themselves to the malfunction theory if the plaintiffs’ expert was able to examine the product.
The Sam’s East, Inc. case arose from a February 2015 fire at the residence of Gerald and Michelle Thompson (the Thompsons). The fire caused injuries to the Thompsons, as well as significant damage to their residence. Pennsylvania National Mutual Casualty Insurance Company (Insurer) provided homeowners insurance coverage for the property and made payments to the Thompsons as a result of the fire. Insurer retained a fire investigator to investigate the origin and cause of the fire. The fire investigator determined that the fire originated at an electric space heater that was purchased from defendant Sam’s East, Inc. (Sam’s East) in December 2011. Insurer and the Thompsons filed a lawsuit against Sam’s East in early 2017 for their respective damages.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
Quick Note: Don’t Forget To Serve The Contractor Final Payment Affidavit
July 30, 2019 —
David Adelstein - Florida Construction Legal UpdatesIf you are a contractor in DIRECT CONTRACT with an owner, serve a contractor final payment affidavit on the owner, as a matter of course, and without any undue delay, particularly if you are owed money and have recorded a construction lien. In numerous circumstances, I like to serve the contractor final payment affidavit with the construction lien.
The contractor final payment affidavit is not a meaningless form. It is a statutory form (set forth in Florida Statute s. 713.06) required to be filled out by a lienor in direct privity of contract with an owner and served on the owner at least 5 days prior to the lienor foreclosing its construction lien. The contractor final payment affidavit serves as a condition precedent to foreclosing a construction lien. Failure to timely serve a contractor final payment affidavit should result in a dismissal of the lien foreclosure lawsuit, presumably by the owner moving for a motion for summary judgment. This should not occur.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Henderson Land to Spend $839 Million on Hong Kong Retail Complex
September 03, 2014 —
Michelle Yun – BloombergHenderson Land Development Co. (12), controlled by billionaire Lee Shau-kee, will spend HK$6.5 billion ($839 million) on a shopping center in a prime retail area of Hong Kong after beating 17 rivals to win a land tender.
The complex in the Tsim Sha Tsui district will be completed by 2019 and will house retail, services and dining, as well as a public 345-space parking garage, spokeswoman Bonnie Ngan said yesterday, citing Vice Chairman Martin Lee. Henderson won the site for HK$4.69 billion as the highest bidder, the government said in a statement yesterday.
Henderson beat other developers, including Cheung Kong Holdings Ltd. (1), Sino Land Co. (83), and Sun Hung Kai Properties Ltd., to win the site in the district host to global luxury brands and hotels such as the Peninsula. The price was more than the HK$3.4 billion median estimate of three surveyors compiled by Bloomberg News.
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Michelle Yun, BloombergMs. Yun may be contacted at
myun11@bloomberg.net
Predicting Our Future with Andrew Weinreich
May 03, 2017 —
Aarni Heiskanen - AEC BusinessIn this podcast episode, my guest is Andrew Weinreich. We talk about the future of homebuilding against the backdrop of Andrew’s new podcast Predicting Our Future.
Is construction ripe for disruption? Andrew believes that homebuilding is much closer to a tipping point than ever before. In this interview, he explains why.
“In the United States, modular construction significantly lags behind what we see elsewhere around the world,” Andrew reminds. “When everything you can imagine today, from the paperclip to your smartphone is made in a factory, why is it that -certainly in this country- we associate homes made in factory with the lowest of low end homes.”
“The first question is: why is that? And the second question is: could that change? Could we be on the precipice of looking at the next Tesla; not for car-building, but for homebuilding.”
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
info@aepartners.fi
Don’t Sign a Contract that Doesn’t Address Covid-19 (Or Pandemics and Epidemics)
December 14, 2020 —
David Adelstein - Florida Construction Legal UpdatesDo yourself a favor: Don’t sign a construction contract that doesn’t address COVID-19 or any pandemic or epidemic from this point forward!
As the number of COVID-19 numbers rise, it would be reasonable to think this could have an impact on ongoing or future construction projects. For this reason, I want to revisit the subject of addressing COVID-19 (and any pandemic or epidemic) in your construction contract.
The potential impact caused by COVID-19 could result from governmental regulations that impact construction of the project, shutdowns due to affected workers, owners’ decisions to suspend performance or adjust the way the project is being constructed, increased deep cleaning requirements, and increased measures associated with social distancing and re-sequencing of shifts. This all plays into the timeliness of performance and the productivity of manpower and equipment usage. When submitting a price, a lot of these considerations may not be factored in because doing so could lead to a price that will never get accepted.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Home Building on the Upswing in Bakersfield
May 10, 2013 —
CDJ STAFFLow inventories and low mortgage rates are leading developers to build new homes in Bakersfield, California. According to KGET, home permits are up forty-five percent over last April. In one development, a street of six homes all sold on the same day. Indications are also that people who lost their homes during the bust are entering homeownership again.
Prices are also up. A year ago, the average home sale price was $145,000. Now it’s $250,000. Oh, and that development where they sold six homes in a day? The next phase of development goes on sale in May.
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