Jet Crash Blamed on Runway Construction Defect
December 11, 2013 —
CDJ STAFFThe Old Republic Insurance Company is suing Macon, Georgia, claiming that the runway was improperly built, leading to the crash of the corporate jet of one of their clients. The insurer paid out $1 million to the owner of the jet. Now it seeks to recover that from the city, claiming the runway was both too short and built in a manner that caused rainwater to pool.
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Homebuilder Confidence Takes a Beating
October 21, 2013 —
CDJ STAFFHomebuilder confidence dropped to fifty-five percent in October, the lowest percentage seen in the last four months. The score had been rising on the strength of renewed home sales. The current slump is attributed to increases in interest rates, which have made home purchases more expensive for prospective buyers, and the uncertainty of the budget struggle in Washington.
John Stumpf, the chairman and CEO of Wells Fargo said that “home price appreciation remains strong and affordability remains excellent.” Mr. Strum has “guarded optimism” over the effects of the budget struggle.
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Crime Policy Insurance Quotes Falsely Represented the Scope of its Coverage
July 13, 2020 —
Brian J Clifford - Saxe Doernberger & VitaAn Indiana businessman found out the hard way how far his insurance company was willing to go to avoid paying a claim after it misrepresented the coverage of a crime policy it sold to him. The quote for the policy indicated that it included coverage for losses resulting from computer hacking. Despite this representation, when the policyholder’s bank accounts were hacked, the insurer denied coverage on the ground that there was no provision for hacking coverage in the policy. Fortunately, the Indiana Court of Appeals recognized the insured’s right to argue before a jury that the insurer’s quotes falsely represented the scope of its coverage.
In Metal Pro Roofing, LLC v. Cincinnati Ins. Co., Richard Cornett, principal of Metal Pro Roofing, LLC and Cornett Restoration, LLC (the “LLCs”), purchased a Cincinnati Insurance Company CinciPlus Crime XC+ Policy (the “Policy”). At the time Mr. Cornett purchased this coverage, and during all subsequent renewals, Cincinnati issued insurance quotes that stated:
Cincinnati can insure your money and securities while at your premises, inside your bank and even off site in the custody of a courier. While you’ve taken precautions to protect your money and securities, you run the risk of loss from employees, robbers, burglars, computer hackers and even physical perils such as fire.
Give yourself peace of mind with Cincinnati’s crime coverage to insure the money and securities you worked so hard to earn.
Crime Expanded Coverage (XC®)Plus Endorsement $125.00.
(Emphasis added.)
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Brian J Clifford, Saxe Doernberger & VitaMr. Clifford may be contacted at
bjc@sdvlaw.com
Goldberg Segalla Welcomes William L. Nimick
February 07, 2022 —
Goldberg Segalla LLP(RALEIGH, N.C.)—Goldberg Segalla added William L. Nimick to the firm's Construction Litigation and Counsel group in Raleigh. Nimick was previously with The Law Offices of Stephen R. Paul in Raleigh.
Nimick is an experienced litigator who focuses his practice on counseling and defending corporate entities, insurers, contractors, and subcontractors in a range of liability claims, including those alleging construction defect, personal injury, property damage, premises liability, and more. Nimick draws on a background in civil litigation, personal injury and wrongful death, workers' compensation, and subrogation. He has handled subrogation claims across North Carolina, including construction defects, motor vehicle accidents, product liability lawsuits, and large fire losses.
Nimick earned his bachelor's degree at the University of North Carolina at Wilmington and his juris doctor at the Campbell University Norman Adrian Wiggins School of Law.
About Goldberg Segalla
Goldberg Segalla is a national civil litigation firm with more than 20 offices in 10 states spanning major metro markets across the U.S., providing strategic coverage wherever our clients do business. As a firm of experienced litigators and trial attorneys, Goldberg Segalla's capabilities span business and commercial disputes, employment and labor, insurance coverage, product liability, and more. Today, our more than 400 attorneys are trusted counselors to public and private clients in key sectors and industries including construction and energy, transportation, manufacturing, retail and hospitality, and insurance. To learn more, visit goldbergsegalla.com or follow us on
LinkedIn,
Facebook, and
Twitter.
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In Colorado, Repair Vendors Can Bring First-Party Bad Faith Actions For Amounts Owed From an Insurer
December 20, 2012 —
BRADY IANDIORIO, HIGGINS, HOPKINS, MCLAIN & ROSWELLWith the aftermath of Sandy still being felt up and down the Eastern seaboard, the question of many victims turns to how they can rebuild their lives and homes. One of the first things many people do is call on their insurance carriers to help rebuild whatever damaged property they have. In a recent case here in Colorado, those rebuilding efforts got reaffirmed by a Court of Appeals case, Kyle W. Larson Enterprises, Inc., Roofing Experts, d/b/a The Roofing Experts v. Allstate Insurance Company, --- P.3d ----, 2012 WL 4459112 (Colo. App. September 27, 2012).
The facts of the case are pretty straightforward and could describe many repair vendors in numerous situations. Roofing Experts contracted with four homeowners insured by Allstate to repair their damaged roofs. The contracts provided that repair costs would be paid from insurance proceeds. The contracts also allowed Roofing Experts full authority to communicate with Allstate regarding all aspects of the insurance claims. Before work began, Roofing Experts met with adjusters from Allstate to discuss the four homes and the amount of each claim. After receiving approval for the claims, Roofing Experts began the repairs. During construction, Roofing Experts discovered additional repairs were necessary to maintain certain manufacturer’s warranties and to conform to applicable building codes.
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Brady Iandorio, Higgins, Hopkins, McLain & Roswell, LLCMr. Iandorio can be contacted at
iandiorio@hhmrlaw.com
A Word to the Wise about Construction Defects
October 10, 2013 —
CDJ STAFFA post on The Buckner Blog suggests that “construction defects” are the scariest words for architects, engineers, and contractors. With the possible outcomes of a damaged reputation and astronomical costs, it’s not a surprise. Further, builders are using techniques that “have yet to be tested in real application over time.” As a result, “whoever has the deepest pockets or the most to lose becomes the primary target.”
While a commercial general liability policy might pay for damage caused by a construction defect, the post notes that “it does not, however, cover the costs to remedy your work.” That cost could be “greater than the actual property damages incurred.”
The post recommends a combination of transferring risk and risk control In transferring risk, the builder uses “indemnification and hold harmless agreements as well as inditional insured requirements in their construction contracts.” They advise to “request coverage as an additional insured on a primary basis.”
And then there’s risk control. “Work only with architects, engineers and contactors who have good reputations and a track record of performance. Don’t cut corners.” By some careful planning, builders might “sleep better at night.”
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Embracing Generative Risk Mitigation in Construction
February 12, 2024 —
Georgia Stillwell - Construction ExecutiveProject delays have long plagued the construction industry, with risk often identified as the primary culprit. However, finding effective solutions to mitigate risk on complex projects has remained daunting. Traditional methods for simulating risk primarily focus on extending project timelines, overlooking the diverse range of opportunities available for risk mitigation. With the construction industry’s digital transformation, generative methodologies have emerged to handle complex decision-making in uncertain situations. This article aims to shed light on the limitations of existing risk modeling and introduce a novel approach known as generative risk mitigation to enhance decision-making under deep uncertainty.
According to McKinsey, 98% of megaprojects experience cost overruns exceeding 30%. Project delays have become so pervasive that the industry has grown accustomed to them. For example, in 2022, the UK government issued ‘
The Green Book,’ which requires contingency funds in projects, such as a 44% contingency budget for standard civil projects. This implies that for a $100 million project, you should allocate $144 million to manage expected risks. There is no denying significant academic literature on the root cause of these delays: it is ‘risk,’ and there is an entire industry based on it.
Conversations with project directors and risk experts reveal the same issue, different project. And that issue is that we cannot easily forecast risk, qualify the impacts or fully understand the opportunities that exist to mitigate risks and make timely decisions. A method that will finally help us overcome this has emerged within the industry.
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Georgia Stillwell, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Engineering, Architecture, and Modern Technology – An Interview with Dr. Jakob Strømann-Andersen
September 14, 2020 —
Aarni Heiskanen - AEC BusinessWe sat down with Dr. Jakob Strømann-Andersen of Henning Larsen’s Sustainability Engineering Department. Our talk covered the need for interdisciplinary research, sustainable practice, and how technology will lead change in the years ahead.
Can you tell us a bit about your professional background and what you’re currently working on?
I’m a partner with Henning Larsen and work with around 300 architects globally. We’re based in Copenhagen where we’re 200 people strong, with branches throughout the world. I’m a trained engineer with a civil engineering background – making me the first partner that’s not an architect. I’ve been with the company for 15 years and joined as an industrial research Ph.D. in Denmark. For my first three years here, I was employed as a researcher doing research and energy-efficient building design. And that’s where we started with our approach to sustainability.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi