N.J. Appellate Court Applies Continuous Trigger Theory in Property Damage Case and Determines “Last Pull” for Coverage
November 15, 2017 —
K. Alexandra Byrd – Saxe Doernberger & Vita, P.C.The New Jersey Superior Court, Appellate Division, published an important decision addressing several fundamental issues regarding how a commercial general liability (CGL) policy applies to long-term property damage. The court held that: (1) a continuous trigger theory of coverage may be applied to third-party liability claims involving progressive property damage caused by an insured’s allegedly defective work; (2) the “last pull” (i.e., the cutoff point) of the continuous trigger is when the “essential nature and scope” of the property damage first becomes known or could reasonably be known; and (3) the “last pull” is not when the property damage is “attributed” to the insured’s faulty work.
The underlying action in Air Master & Cooling Inc. v. Selective Ins. Co., et al. 1 concerned property damage arising out of the construction of a seven-story, 101-unit condominium building in Montclair, New Jersey. The project’s construction manager hired Air Master & Cooling, Inc. (Air Master) to perform HVAC work on the project, including installing individual HVAC equipment in each resident’s unit from 2005 to 2008. In early 2008, unit owners began complaining about water infiltration and damage to their windows, ceilings, and other portions of their units. The general contractor and developer began assessing the damage and making repairs. Eventually, in April 2010, an expert consultant performed a moisture survey of the roof and discovered 111 areas that were damaged by water infiltration. The expert report indicated that “it [was] impossible to determine when [the] moisture infiltration occurred.”
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K. Alexandra Byrd, Saxe Doernberger & Vita, P.C.Ms. Byrd may be contacted at
kab@sdvlaw.com
Chapman Glucksman Press Release
October 17, 2022 —
Chapman GlucksmanChapman Glucksman Dean & Roeb, a Los Angeles based law firm, has unveiled a dynamic new brand. The firm will now be known as “Chapman Glucksman.” The name change reflects the forward thinking and creative approach that the firm brings to its client service. “Chapman Glucksman has always been a firm of innovative thinkers with a keen focus on obtaining very favorable results for our clients. Our new brand captures the firm’s energy and focus,” said Craig Roeb, a shareholder who has spent his entire legal career with the firm. “We are excited about the growth of Chapman Glucksman, with the recent addition of new shareholder, Greg Sabo, partners, Chelsea Zwart and David Weinberger, as well as six new associate attorneys. The continued growth of Chapman Glucksman is a reflection of our strong client loyalty and growth,” said Randall Dean, shareholder and head of the Professional Liability Practice Group.
Founded in 1985, Chapman Glucksman is a multi-faceted law firm with offices in Los Angeles, Orange County, Bay Area and Palm Springs. Our AV rated firm has diverse practice groups consisting of highly skilled, experienced, insightful, responsive, pragmatic and creative lawyers who vigorously advocate our client’s interests, and secure result-oriented, favorable and creative solutions to complex issues. Our achievements derive directly from our commitment to providing our clients with an unparalleled level of attention, exceptional work product and a strong work ethic with outstanding results achieved.
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Chapman Glucksman
How the Cumulative Impact Theory has been Defined
November 30, 2020 —
David Adelstein - Florida Construction Legal UpdatesLargely in the federal contract arena, there is a theory referred to as “cumulative impacts” used by a contractor to recover unforeseeable costs associated with a multitude of changes that have an overwhelming ripple effect on its efficiency, particularly efficiency dealing with its original, base contract work. In other words, by dealing with extensive changes, there is an unforeseeable impact imposed on the contractor relative to its unchanged or base contract work. Under this theory, the contractor oftentimes prices its cumulative impact under a total cost approach with an examination on its cost overrun. However, this is not an easy theory to prevail on because there needs to be a focus on the sheer number of changes, causation supporting the impact, and whether there were concurrent impacts or delays that played a role in the ripple effect. See, e.g., Appeals of J.A. Jones Const. Co., ENGBCA No. 6348, 00-2 BCA P 31000 (July 7, 2000) (“However, in the vast majority of cases such claims are routinely denied because there were an insufficient number of changes, contractor-caused concurrent delays, disruptions and inefficiencies and/or a general absence of evidence of causation and impact.”).
To best articulate how the cumulative impact theory has been defined, I want to include language directly from courts and board of contract appeals that have dealt with this theory. This way the contractor knows how to best work with their experts with this definition in mind–and, yes, experts will be needed–to persuasively package and establish causation and damages stemming from the multitude of changes. While many of these definitions are worded differently, you will see they have the same focus dealing with the unforeseeable ripple effect of the extensive changes.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Federal Judge Dismisses Insurance Coverage Lawsuit In Construction Defect Case
December 09, 2011 —
CDJ STAFFA federal judge dismissed a coverage lawsuit brought by Mid Continent Casualty Company against its insured, Greater Midwest Builders Ltd.
Plaintiff brought this declaratory judgment action in response to a suit filed in Johnson County District Court, seeking a judicial determination that it had no coverage obligation for claims asserted against its insured. This case was stayed until the state court action entered judgment against the insured. The prevailing parties then commenced a garnishment action against the plaintiff, and another insurance company, in state court in Missouri. The court was asked whether it should lift the stay and proceed with the case, or decline jurisdiction in favor of resolution in the Missouri state court.
The court granted the motion to dismiss holding that proceeding with the case would lead to protracted, piecemeal litigation, while deferring to the Missouri state court would decide all the claims involved in the dispute.
Read the court’s decision…
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Sensors for Smarter Construction – Interview with Laura Kassovic of MbientLab
November 17, 2016 —
Aarni Heiskanen – AEC BusinessI had the pleasure of interviewing Laura Kassovic, CEO and Co-founder at MbientLab Inc. We discuss how wearable technology and smart sensors can help on the construction site.
MbientLab is a technology company headquartered in San Francisco, California. It was started about four years ago by a team of engineers who are experts in sensors and machine learning. MbientLab develops wearable technology and also does manufacturing in the USA and Asia.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aarni@aepartners.fi
Nonresidential Construction Employment Expands in August, Says ABC
December 16, 2019 —
Associated Builders and Contractors - Construction ExecutiveThe construction industry added 14,000 net new jobs in August, according to an Associated Builders and Contractors analysis of data released by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has expanded by 177,000 jobs, or 2.4%.
Nonresidential construction employment increased by 11,600 net jobs in August and is up by 114,200 net jobs over the last 12 months, translating into 2.5% growth. The majority of job gains emerged from nonresidential specialty trade contractors, which added 5,400 jobs last month and nearly 103,000 positions over the past year. Heavy and civil engineering added 4,400 net new jobs, while nonresidential building added 1,800 jobs on a monthly basis.
The construction unemployment rate stood at 3.6% in August, up 0.2 percentage points from the same time last year. Unemployment across all industries stood at 3.7% in August, unchanged from the previous month.
“While job growth across all industries fell short of projections, today’s employment report was just about perfect,” said ABC Chief Economist Anirban Basu. “Yes, employment growth has been softening for quite some time, with average monthly job growth totaling 150,000 during the last six months after approaching 200,000 during the prior six-month period. And employment growth estimates were also revised lower for both June and July. That said, looking beyond the headline number, August’s labor market performance was more than respectable, even accounting for about 25,000 of the jobs being added for temporary Census work.
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ABC, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Want a Fair Chance at a Government Contract? Think Again
July 13, 2017 —
Duane Craig - Construction InformerIf you’ve ever missed out on a government contract, part of the reason might have been because entrenched government contractors gained competitive advantages by under-paying their workers. The Fair Pay & Safe Workplaces executive order was nullified by Congress this year and much of the reporting by the business press presented just one side of the story. Here’s another perspective.
When awarding federal contracts the government is supposed to consider each contractor’s compliance with labor laws related to pay, health and safety. But, there is a huge problem with enforcement on a government contract, according to Senator Elizabeth Warren and other observers.
- Some federal contractors frequently underpay their workers violating wage and hour laws. More than 300,000 workers were cheated out of pay while working under federal contracts in the last decade. There were 12,000 companies working on federal contracts that were doing the cheating.
- 692 federal contractors significantly violated federal labor laws, and then repeated the behavior, over and over. The repeat offenders receive millions in taxpayer dollars as they violated safety and health standards. Those violations caused a wide range of physical harm to workers. Dozens of workers died, and countless numbers were exposed to chemicals that cause long term health problems.
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Duane Craig, Construction InformerMr. Craig may be contacted at
dtcraig@constructioninformer.com
The Economic Loss Rule: From Where Does the Duty Arise?
January 24, 2022 —
Taylor Hite - Colorado Construction LitigationWhen entering a contract under Colorado law or attempting to enforce your rights when the other party breaches a contract, it is important to know and understand what rights you have and what claims you can bring or defenses you may have. One important consideration is Colorado’s version of the economic loss rule. The Colorado Supreme Court has issued several opinions clarifying the scope of the economic loss rule since it adopted the rule in 2000. The purpose of the economic loss rule is to maintain the boundary between contract law and tort law.
In Colorado, the economic loss rule provides that a party suffering only economic loss from the breach of an express or implied contractual duty may not assert a tort claim for the breach without an independent duty of care under tort law. In most instances the economic loss rule will not bar intentional tort claims. The question becomes: from where does the duty arise? Is there an independent duty in tort law? Did the duty arise solely from the contract?
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Taylor Hite, Higgins, Hopkins, McLain & Roswell, LLCMs. Hite may be contacted at
Hite@hhmrlaw.com