Mortar Insufficient to Insure Summary Judgment in Construction Defect Case
January 06, 2012 —
CDJ STAFFThe US District Court of Nevada issued a summary judgment in the case of R&O Construction Company V. Rox Pro International Group, Ltd. on December 19, 2011. The case involved the installation of stone veneer at a Home Depot location (Home Depot was not involved in the case). R&O’s subcontractor, New Creation Masonry, purchased the stone veneer from Arizona Stone. Judge Larry Hicks noted that “the stone veneer failed and R&O was forced to make substantial structural repairs to the Home Depot store.”
Rox Pro asked the court for a summary judgment, which the court granted only in part. The court looked at two issues in the case, whether the installation instructions constituted a breach of implied warranty of merchantability, and whether there was a breach of an implied warranty of fitness for a particular purpose.
Judge Hicks found that there was a breach of implied warranty of merchantability. The instructions drafted by Real Stone and distributed by Arizona Stone were not sufficient for affixing the supplied stones, according to R&O’s expert, a claim the plaintiffs dispute. “Because there is an issue of material fact concerning the installation guidelines, the court shall deny Arizona Stone’s motion for a summary judgment on this issue.”
On the other hand, the judge did not find that the instructions had any bearing as to whether R&O bought the stone, since the stone was selected by the shopping center developer. This issue was, in the view of the judge, appropriately dismissed.
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New Jersey School Blames Leaks on Construction Defects, May Sue
January 28, 2013 —
CDJ STAFFThe Carlstadt Board of Education recently commissioned a investigation into the water leaks at Carlstadt Public School. The report has not been released in full, but redacted board minutes make reference to "a lack of waterproofing, drainage and clogged or buried weep holes." The investigation is ongoing and the board's business administrator, Pamela Baxley, states that its "ability to recover damages in potential litigation may be impacted should this information be released prior to the conclusion of their investigation."
The building in question opened in April 2007, and the leaking began that October. The contractor has fixed leaks, but further leaks have occurred.
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CGL, Builders Risk Coverage and Exclusions When Construction Defects Cause Property Damage
May 17, 2021 —
Jeffrey Cavignac - Construction ExecutiveDirect damage to property under construction caused by faulty or defective work or defective materials has been a coverage issue for decades. Two specific policies, the Commercial General Liability for the contractors building the structure and the Builders Risk Policy on the project both are sources of potential coverage.
A CGL policy protects the named insured (the contractor in this case) from third party liability arising out of the insured’s operations that results in either bodily injury or property damage. Damage to property caused by poor workmanship or defective materials would qualify as property damage. To understand how the CGL policy might respond to claims such as these, it is necessary to evaluate several exclusions in the CGL policy.
CGL policies cover “property damage,” defined as physical injury to tangible property, including loss of use of such property, and loss of use of tangible property that has not been physically injured.
Reprinted courtesy of
Jeffrey Cavignac, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Effectively Managing Project Closeout: It Ends Where It Begins
August 06, 2019 —
William E. Underwood - ConsensusDocsProject closeout is sometimes one of the last things on a contractor’s mind at the beginning of a project, but project closeout can have a huge impact on a contractor’s overall profitability and success. Effectively managing the closeout process is critical, and it all begins with the negotiation and execution of the project contract. This contract can, and should, provide a complete roadmap for project closeout, as addressing these issues on the front end can set up the parties for successful project completion. It is then equally important to re-review the terms of the contract as project closeout approaches to ensure that everyone, including the owner, adheres to all contractual requirements.
This article examines several pertinent issues related to project closeout that should be addressed during the contracting stage, including defining substantial and final completion, inspection and acceptance, punch lists, and warranties.
Defining Substantial and Final Completion
Having clear definitions for both substantial and final completion in your construction contract is an important and necessary early step in achieving successful project closeout.
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William E. Underwood, Jones Walker LLPMr. Underwood may be contacted at
wunderwood@joneswalker.com
Two Lawyers From Hunton’s Insurance Recovery Group, Andrea DeField and Latosha Ellis, Selected for American Bar Association’s 2022 “On The Rise” Award
August 15, 2022 —
Kevin V. Small - Hunton Insurance Recovery BlogPartner, Andrea DeField, and counsel, Latosha Ellis, were each recently awarded “On the Rise – Top 40 Young Lawyers” honors by the American Bar Association’s Young Lawyers Division. The award honors 40 of the nation’s most promising lawyers under the age of 40 or who have been licensed for 10 years or less. Recipients demonstrate high achievement, innovation, vision, leadership, and service to the profession and their communities, including extensive knowledge in litigation or transactional work and commitment to pro bono, charitable, or professional volunteer work, all while making a lasting impact in their respective fields. More information may be found
here.
Reprinted courtesy of
Kevin V. Small, Hunton Andrews Kurth
Mr. Small may be contacted at ksmall@HuntonAK.com
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Does a Broker Forfeit His or Her Commission for Technical Non-Compliance with Department of Real Estate Statutory Requirements?
September 14, 2020 —
Kevin J. Parker - Snell & Wilmer Real Estate Litigation BlogIn a recent Arizona Court of Appeals case, CK Revocable Trust v. My Home Group Real Estate LLC, 2020 WL 4306183 (7/28/2020), the Court of Appeals addressed the distinction between “substantive” and “technical” statutory requirements for real estate broker commission agreements.
The Court explained that failure to comply with a substantive requirement would preclude the broker from recovering a commission, but failure to comply with a technical requirement would not. As examples of such substantive requirements, the Court identified the statutory requirement that the broker be licensed at the time the claim for commission arose, and the statutory requirement that the listing agreement be signed by both the broker and the client.
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Kevin J. Parker, Snell & WilmerMr. Parker may be contacted at
kparker@swlaw.com
Beyond the COI: The Importance of an Owner's or Facilities Manager's Downstream Insurance Review Program
March 15, 2021 —
Hugh D. Hughes, Eric M. Clarkson & Mollie H. Levy - Saxe Doernberger & Vita, P.C.The risk of bodily injury lawsuits is an unavoidable reality for property owners and facilities managers (“FMs”) of large commercial sites such as universities, malls, office buildings, or stadiums. Any person who steps foot on the property is a potential plaintiff, including students, tenants, customers, contractors, and vendors.
Insurance mitigates these risks, but a property owner’s or FM’s risk transfer strategy should include more than their own suite of general liability and other third-party policies. Ensuring additional insured status on a vendor’s or contractor’s policy is also essential to a comprehensive risk transfer strategy. In a functional risk transfer program, a vendor’s or contractor’s general liability insurer should defend and indemnify property owners or FMs as additional insureds (“AIs”) for liability for bodily injury caused, in whole or in part, by the vendor’s or contractor’s operations. When this works as intended, it effectively transfers costs associated with such a lawsuit from the owner or FM to the vendor’s or contractor’s insurer. It also increases the insurance limits available for a loss.
Reprinted courtesy of
Hugh D. Hughes, Saxe Doernberger & Vita, P.C.,
Eric M. Clarkson, Saxe Doernberger & Vita, P.C. and
Mollie H. Levy, Saxe Doernberger & Vita, P.C.
Mr. Hughes may be contacted at HHughes@sdvlaw.com
Mr. Clarkson may be contacted at EClarkson@sdvlaw.com
Ms. Levy may be contacted at MLevy@sdvlaw.com
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Private Mediations Do Not Toll The Five-Year Prosecution Statute
April 28, 2016 —
Zachary P. Marks – Chapman Glucksman Dean Roeb & Barger In FocusIf you thought private mediation could toll the five-year period for case prosecution – think again. In a recent decision handed down by the Second District Court of Appeal, the court unequivocally held that voluntary, private mediations do not toll the five-year period before dismissal for failure to bring an action to trial.
California Code of Civil Procedure section 583.310 sets forth the applicable rule: “[a]n action shall be brought to trial within five years after the action is commenced against the defendant.” Section 1775.7(b) clarifies this rule, stating that the five-year period can be tolled if it is “submitted to mediation” within the final six months of the five-year period. However, the Code is silent with respect to the effect of tolling on public versus private mediations.
The Court of Appeal addressed this issue in its recent decision entitled Castillo v. DHL Express (USA) (2015) 243 Cal.App.4th 1186. Castillo was an employment class action brought by truck drivers against their employers. Plaintiffs argued that the case was “submitted to mediation” within the meaning of Section 1775.7(b) because the court’s Case Management Order reflected the fact that the parties agreed to pursue mediation. Conversely, defendants argued that the Case Management Statement clearly stated that the parties voluntarily agreed to a private mediation, not a court-ordered mediation.
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Zachary P. Marks, Chapman Glucksman Dean Roeb & Barger In FocusMr. Marks may be contacted at
zmarks@cgdrblaw.com