Cambridge Massachusetts Building Expert Directory

New Jersey Supreme Court Rules that Subcontractor Work with Resultant Damage is both an “Occurrence” and “Property Damage” under a Standard Form CGL Policy

September 01, 2016 — Beverley BevenFlorez-CDJ STAFF
According to a client alert by the firm Peckar & Abramson, P.C. (P&A), “In a recent significant decision, the Supreme Court of New Jersey held that defective work of a subcontractor that causes consequential property damage is both an ‘occurrence’ and ‘property damage’ under the terms of a standard form commercial general liability (“CGL”) insurance policy.” Patrick J. Greene, Jr., and Frank A. Hess of P&A wrote that the Cypress Point Condominium Assoc., Inc. v Adria Towers, LLC, 2016 N.J. Lexis 847 (Aug.4,2016) “decision is important in New Jersey and in other jurisdictions that had relied upon the influential New Jersey case, Weedo v. Stone–E–Brick, Inc., 81 N.J. 233 (1979), that had determined that such claims involved non-insured ‘business risks.’” Read the court decision
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Texas Shortens Cut-Off Date for Suits Against Homebuilders Who Provide a 6-Year Written Warranty

June 26, 2023 — Kim Altsuler - Peckar & Abramson, P.C.
Summary of the new law as it pertains to builders of new homes: The existing 10-year statute of repose for builders of new homes (the ultimate cut-off date for filing suit) has been shortened to 6 years if the builder provides a 1-2-6 written warranty (1-year workmanship and materials; 2-year plumbing, electrical and HVAC; 6-year structural). Extended time to bring suit if written claim presented during the period of repose: If a written claim for damages, contribution, or indemnity is presented to the builder during the applicable limitations period and the 6-year statute of repose applies, the time to sue is extended one year from the date the claim is presented. In practical effect, this means that if a written claim is presented and the statute of repose expires before suit is filed, suit may still be filed provided it is within one year of the date the written claim was made. When the new law goes into effect: The new law is effective as of June 9, 2023 and applies to suits commenced on or after that date. However, if the contract under which the claim is brought was entered into before June 9, 2023, the former 10-year version of the statute of repose applies. In other words, the statute applies to contracts entered into on or after June 9, 2023, if the contract has at least a 1-2-6 warranty. Read the court decision
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Reprinted courtesy of Kim Altsuler - Peckar & Abramson, P.C.
Ms. Altsuler may be contacted at kaltsuler@pecklaw.com

Additional Insured Status Survives Summary Judgment Stage

August 26, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The court determined that the insurer was not entitled to summary judgment in seeking a determination that a hotel was not the additional insured under its elevator repair company's policy. Aspen Spec. Ins. Co. v. Ironshore Indem. Inc., 2015 N.Y. Misc. LEXIS 2413 (N.Y. Sup. Ct. July 7, 2015). Michael Patalano was an elevator repairman employed by Transel Elevator Inc. Transel had a contract to maintain the elevators at Alphonse Hotel. The contract required Transel to name Alphonse as an additional insured on Transel's CGL policy. Patalano was injured while working at the hotel. He sued Alphonse, alleging that while performing work for the hotel, the stairs he was on which he was descending collapsed, causing him to fall and sustain injuries. Alphonse tendered to Ironshore, Transel's CGL carrier. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Oregon to Add 258,000 Jobs by 2022, State Data Shows

March 26, 2014 — Alison Vekshin – Bloomberg
Oregon expects to add 258,000 jobs by 2022, a 15 percent increase driven by the economic recovery in the construction industry and growth in health care, according to the Oregon Employment Department. Construction industry employment is projected to rise 29 percent, the fastest of any industry, though short of pre-recessionary growth, the agency said March 12 in a statement. The predictions “reflect several ongoing trends: continuing recovery from the Great Recession, particularly for the construction industry; a growing health-care sector, due in part to an aging population; continuing population growth; and the need for replacement workers due to baby-boomer retirements,” the agency said. Read the court decision
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Reprinted courtesy of Alison Vekshin, Bloomberg
Ms. Vekshin may be contacted at avekshin@bloomberg.net

Homebuilders Call for Housing Tax Incentives

May 10, 2013 — CDJ STAFF
The National Association of Home Builders has asked Congress to support tax incentives for home buyers and renters, including the Low Income Housing Tax Credit and the mortgage interest deduction. Robert Dietz, an economist at the NAHB, noted that in 2009, 35 million home owners were able to claim the mortgage deduction. Dietz responded to arguments that the deduction simply lead to people buying bigger homes by saying that “the need for a larger home created the higher loan deduction, not the other way around.” The NAHB notes that one hundred new single-family homes creates more than 300 jobs and generates substantial tax revenues. “Housing provides the momentum behind an economic recovery because home building and associated businesses employ such a wide range of workers” said Dietz. Read the court decision
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Suing A Payment Bond Surety in Different Venue Than Set Forth in The Subcontract

August 10, 2021 — David Adelstein - Florida Construction Legal Updates
The venue to file a lawsuit can be an important issue for a variety of reasons, whether for convenience or the prospect of a more favorable outcome. Oftentimes, there is a venue provision in a contract that provides where the exclusive venue for any dispute arising out of the contract must be brought. In a recent case, Southeastern Concrete Constructors, LLC v. Western Surety Company, 2021 WL 2557297 (Fla. 2d DCA 2021), dealing with a Florida Department of Transportation (FDOT) project, a subcontractor filed suit against the general contractor’s FDOT payment bond issued under Florida Statute s. 337.18. The subcontractor did not file suit against the general contractor. The subcontractor filed suit in Hillsborough County, Florida. However, the subcontract contained a venue provision requiring disputes under the subcontract to be brought in Levy County, Florida. Based on this venue provision in the subcontract, the trial court granted a motion to transfer the venue of the dispute to Levy County. This, however, was reversed on appeal. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

The “Climate 21 Project” Prepared for the New Administration

December 21, 2020 — Anthony B. Cavender - Gravel2Gavel
This is a brief review of the recently released “Climate 21 Project” policy memo. It is the work of many former members of the Obama Administration who are deeply concerned about climate change and what steps the new administration can take in the first 100 days to confront a problem. Offering “actionable advice” rather than a policy agenda, the group recognizes that Congress must do its part by providing new statutory authorities within the early days of the new administration, and the President must be prepared to aggressively exercise the powers of his office. As the members of the Group see it, there are four interlocking crises facing the President: (a) the COVID-19 pandemic; (b) the economic devastation visited upon many people by the pandemic; (c) racial injustice; and (d) accelerating threats posed by climate change. Accordingly: 1. The Executive Office of the President must take stronger steps to reduce greenhouse gas emissions through domestic investment, rulemakings, policy changes, and international diplomacy. A new Special Assistant for Climate Change must be created to take charge of these climate change initiatives. There should also be established in the Executive Office of the President a National Climate Change Council. All agencies must be advised of the urgency of this problem. The paper seems to envision a substantial growth in the White Hose staff. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

Read the Property Insurance Policy to be Sure You are Complying with Post Loss Obligations

January 04, 2021 — David Adelstein - Florida Construction Legal Updates
I have discussed this before in prior postings, but it is worth repeating. It is imperative for an insured to comply with post loss obligations in a property insurance policy. Not doing so gives the insurer the argument that its insured forfeited coverage under the policy. Naturally, this is never what an insured wants as this is contrary to submitting an insurance claim to begin with. To avoid this situation, an insured should consult with counsel and read the policy including endorsements issued to the policy to be sure that post loss obligations are complied with and, if they are not, there is a basis supported by case law. In a recent case, Goldberg v. Universal Property and Casualty Ins. Co., 45 Fla. L. Weekly D2118b (Fla. 4th DCA 2020), the property insurance policy for hurricanes and windstorms contained the following through an endorsement issued to the policy: You must give notice of a claim, a supplemental claim, or reopened claim for loss or damage caused by the peril of windstorm or hurricane, with us in accordance with the terms of this policy and within three years after the hurricane first made landfall or the windstorm caused the covered damage. For purposes of this Section, the term “supplemental claim” or “reopened claim” means any additional claim for recovery from us for losses from the same hurricane or windstorm which we have previously adjusted pursuant to the initial claim. . . . Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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