Condominium Exclusion Bars Coverage for Construction Defect
August 17, 2011 —
Tred R. Eyerly - Insurance Law HawaiiCoverage was denied under the policy’s condominium exclusion in California Traditions, Inc. v. Claremont Liability Ins. Co.,2011 Cal. App.LEXIS912 (Cal. Ct. App., ordered published July 11, 2011).
California Traditions was the developer and general contractor for a housing development. California Traditions subcontracted with Ja-Con to perform the rough framing work for 30 residential units. The project had 146 separate residences that were freestanding with no shared walls, roof, halls, or plumbing or electrical lines. To allow a higher density development, the project was developed, marketed and sold as condominiums.
The purchaser of one of the units filed a complaint against California Traditions alleging property damage from the defective construction. California Traditions cross-complained against Ja-Con.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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Contractor Succeeds At the Supreme Court Against Public Owner – Obtaining Fee Award and Determination The City Acted In Bad Faith
September 20, 2021 —
Lindsay T. Watkins - Ahlers Cressman & Sleight PLLCA contractor won a rare but much-deserved victory at the Supreme Court on July 8, 2021 in Conway Construction Co. v. City of Puyallup, 197 Wn.2d 825, 490 P.2d 221 (2021). The case, which involved an aggressive stance by a public owner:
- confirmed that the public owner bears the burden of demonstrating a termination for default is justified,
- reaffirmed the requirement to provide an opportunity to cure, and
- rejected the public owner’s attempts to escape its own contract language that the contractor relied upon.
John Ahlers and Lindsay Watkins of Ahlers Cressman and Sleight and Jamie Becker of Osborne Construction submitted the Amicus Brief for the Associated General Contractors (AGC) of Washington in support of Conway to the Supreme Court.
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Lindsay T. Watkins, Ahlers Cressman & Sleight PLLCMs. Watkins may be contacted at
Lindsay.Watkins@acslawyers.com
Partner John Toohey and Senior Associate Sammy Daboussi Obtain a Complete Defense Verdict for Their Contractor Client!
December 11, 2023 —
Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is excited to share that Newport Beach attorneys John Toohey and Sammy Daboussi obtained a complete defense verdict after years-long litigation in favor of their concrete contractor client.
This lawsuit arises from a claim made by Plaintiff for construction defects in a high-end single-family home. Our client was hired to perform concrete work on the foundations of the home. It was alleged that the home’s foundation was incorrectly built. It was further alleged that the construction defects/errors led to delays and substantial expenses. We argued that our client relied on the certifications provided to them by design professionals and the City. We further argued that our client, like any reasonable concrete/foundation subcontractor, has no responsibility or obligation, contractual or otherwise, to review and recheck the work completed by a licensed professional.
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Bremer Whyte Brown & O'Meara LLP
So You Want to Arbitrate? Better Make Sure Your Contract Covers All Bases
August 16, 2021 —
Stephanie Nolan Deviney - ConsensusDocsAs a General Contractor, you may prefer to arbitrate any contractual disputes rather than engage in protracted litigation. Many Courts favor arbitration clauses and will enforce them if there is a sufficient reason to do so. However, there are several issues that a General Contractor should consider when including an arbitration clause in its construction agreement with its client. When an arbitration clause is not properly crafted, questions can arise as to who must arbitrate? Who decides whether to arbitrate? Who selects the arbitrator? What will the subject matter of the arbitration be? A look at a recent case in Pennsylvania highlights the need for properly crafted arbitration clauses.
A Recent Case Highlights The Importance Of Arbitration Clauses
In TEC Construction, LLC v. Greg Rich and Lora Rich filed in the Court of Common Pleas, Allegheny County, Pennsylvania, TEC Construction, LLC (“TEC”) and Greg and Lora Rich (the “Riches”), entered into a Construction Agreement with an arbitration clause. Specifically, the parties to the Construction Agreement, TEC and the Riches, agreed to arbitrate any disputes with the American Arbitration Association. Five subcontractors completed the work under the Construction Agreement but none of the subcontractors agreed to arbitrate.
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Stephanie Nolan Deviney, Fox Rothschild LLP (ConsensusDocs)Ms. Deviney may be contacted at
sdeviney@foxrothschild.com
Of Pavement and Pandemic: Liability and Regulatory Hurdles for Taking It Outside
September 21, 2020 —
Jeff Clare - Gravel2Gavel Construction & Real Estate Law BlogAs the COVID-19 pandemic continues to ravage the U.S. economy, restaurateurs and bar owners are feeling the brunt of business closures and adaptations necessary to combat the disease. Where cozy and intimate dining was once de rigueur for the restaurant industry, these businesses must now shift to outdoor dining with adequate space and airflow between parties. In response to these concerns, many cities across the country who once fought against the loss of any parking have turned to a post-automobile tactic: outdoor dining in thoroughfares and parking lots. While at first glance it might seem a simple enough prospect—throw some chairs and a table out front, and voilà—property owners and restaurateurs must remain cognizant of various liability and regulatory hurdles for operating outside.
With Great Space Comes Great … Potential Liability.
One of the largest concerns for landowners in operating in a new space for business is liability. Who is on the hook if someone gets hurt dining in an impromptu dining space in a parking lot? Prior to beginning new outdoor dining operations, landowners and restaurateurs should contact their insurance providers to ensure that the new space is included in their insurance coverage. This is a particular concern for larger commercial landowners who may have various businesses vying to use their parking lot for business. Many leases have carefully crafted clauses limiting where a business may operate and where their liability ceases. Landowners and business owners should review their leases for any such clauses and negotiate with one another to ensure that liability in these new spaces is clearly defined.
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Jeff Clare, PillsburyMr. Clare may be contacted at
jeff.clare@pillsburylaw.com
No Trial Credit in NJ Appellate Decision for Non-Settling Successive Tortfeasors – Must Demonstrate Proof of Initial Tortfeasor Negligence and Proximate Cause
January 11, 2021 —
Kevin C. Cottone, Robert Wright, & Monica Doss - White and Williams LLPWhere an initial tortfeasor settles in a successive negligence case, the non-settling tortfeasors do not get a credit at trial, says the New Jersey Appellate Division. The court held in Glassman v. Friedel [1], that non-settling successive tortfeasors are not entitled to a pro tanto credit after the initial tortfeasor settles and its negligence is undetermined. Rather, successive tortfeasors have the burden at trial to demonstrate that (1) the initial tortfeasor was negligent, and (2) the initial tortfeasor’s negligence was the proximate cause of the second event.
In Glassman, the plaintiff, as executor of his deceased wife’s estate, sued a restaurant and property owner of the site where his wife fell and fractured her ankle. Afterwards, the plaintiff added defendants including the doctors and the medical center that cared for his wife after she fractured her ankle. The plaintiff alleged that they had been negligent during his wife’s surgery, which led to postoperative complications and injuries to his wife’s leg, ultimately resulting in a fatal pulmonary embolism.
Reprinted courtesy of
Kevin C. Cottone, White and Williams LLP,
Robert Wright, White and Williams LLP and
Monica Doss, White and Williams LLP
Mr. Cottone may be contacted at cottonek@whiteandwilliams.com
Mr. Wright may be contacted at wrightr@whiteandwilliams.com
Ms. Doss may be contacted at dossm@whiteandwilliams.com
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Hurricane Claim Cannot Survive Anti-Concurrent Causation Clause
May 15, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe court upheld the insurer's denial of coverage for hurricane damage caused by storm surge. Heritage Motorcoach Resort & Marina Condominium Association, Inc v. Axis Ins. Co., 2023 U.S. Dist. LEXIS 58931 (S.D. Ala. April 4, 2023).
Heritage operated a resort with a marina, dock and clubhouse. Hurricane Sally caused damage to the property. Heritage submitted a claim to its insurer, Axis. Axis investigated the claim. One investigator reported that the marina structures sustained damage caused by storm tide forces, wave action and debris impact. He opined that the marina structures did not sustain wind damage. When deposed, he testified that there was a combination of vessels and wave action causing damage to the marina. A second investigator found that the storm drove boats and other debris into the marina area causing much of the damage.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Pennsylvania Supreme Court Denies Review of Pro-Policy Decision
October 22, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to McCarter & English, LLP, “product manufacturers relied on commercial general liability policies to defend and indemnify them for product liability claims,” however, in result of the Pennsylvania Supreme Court’s decision in Kvaerner Metals Division of Kvaerner U.S., Inc. v. Commercial Union Ins. Co., 908 A.2d 888 (Pa. 2006), “[i]nsurers began denying coverage to Pennsylvania companies – and companies around the country – arguing that a design or manufacturing defect was not an ‘accident.’” McCarter & English, LLP reported that “the tide has begun to turn, and product manufacturers may once again be reliably protected by from product liability claims.”
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