Record Keeping—the Devil’s in the Details
July 30, 2015 —
Craig Martin – Construction Contract AdvisorAnother court has found that poor record keeping will prevent recovery on a claim. The court in Weatherproofing Tech., Inc. v. Alacran Contracting, LLC found that a contractor’s documents were a mess and that no reasonable jury could base a verdict on the contractor’s records.
The underlying project involved the construction of an army training facility. The total project cost approximated $13 million. Alacran, the general contractor, subcontracted about $3 million of the work to Weatherproofing Tech. Alacran paid Weatherproofing $700,000 for its work, even though Weatherproofing submitted invoices of more than $2 million. Alacran justified its refusal to pay Weatherproofing on the grounds that the parties had agreed to split the profit and loss on the project and the project was out of money. Not surprisingly, Weatherproofing sued Alacran for the amount owed.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
When is Construction Put to Its “Intended Use”?
October 10, 2013 —
Brady Iandiorio — Higgins, Hopkins, McLain & Roswell, LLC.Defining words and phrases in the law can be a tricky proposition. In everyday life one would presume to know what the phrase “intended use” would mean, but when it comes to litigation, oftentimes the definitions become much more nuanced.
On March 12, 2013, in the Bituminous Cas. Corp. v. Hartford Cas. Ins. Co. v. Canal Ins. Co., WL 950800 (D. Colo. 2013) case, Senior District Court Judge Wiley Y. Daniel denied Third-Party Defendant Canal Insurance Company’s (“Canal”) motion to dismiss Third-Party Plaintiff Hartford Casualty Insurance Company’s (“Hartford”) third-party complaint. The case arose out of a liability insurance coverage dispute related to an underlying construction defect lawsuit. In the construction defect suit, a plaintiff homeowner’s association brought a suit against a developer and a general contractor (“GC”) among others. While the underlying action was settled, a dispute remained between Bituminous Casualty Corporation, which insured the GC, and Hartford, which insured the developer.
Hartford asserted third-party claims against Canal seeking a declaration of Canal’s obligations and contribution in the event Hartford owed any defense or indemnity obligations to the GC. Hartford’s claims are based on the premise that Canal owed a duty to defend and/or indemnify the GC in the underlying action.
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Brady IandiorioBrady Iandiorio can be contacted at
Iandiorio@hhmrlaw.com
Baltimore Project Pushes To Meet Federal Deadline
July 22, 2019 —
Justin Rice - Engineering News-RecordTwo giant anaerobic digesters shaped like Faberge eggs have for years served as landmarks for commuters traveling on Interstate-695 east of downtown Baltimore. And cranes, recently removed, signaled the location of one of the latest projects in a years-long, $1.6-billion construction program to upgrade the 100-year-old Back River Wastewater Treatment Plant. “You probably won’t see a collection of this many ‘sticks’ anywhere else in the city,” Shane Lippert noted back in October.
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Justin Rice, ENRMr. Rice may be contacted at
ricej@enr.com
President Trump Issued Two New EOs on Energy Infrastructure and Federal Energy Policy
May 20, 2019 —
Anthony B. Cavender - Gravel2Gavel1. The first EO is very comprehensive, affecting many federal agencies and departments, and is entitled “Promoting Federal Infrastructure and Economic Growth.” The EO emphasizes its concern with the need for infrastructure that “ is capable of safely and efficiently transporting these plentiful resources to end users.” To that end, the EO:
- (A) states the general policy that the U.S. Government is to promote private investment in the Nation’s infrastructure by establishing efficient permitting processes and procedures that avoid duplication and result in increased regulatory certainty;
- (B) reviews and revises existing federal guidance and regulations regarding Section 401 of the Clean Water Act (CWA), with particular emphasis on EPA’s guidance document, CWA Section 401 Water Quality Certification, and actions will be taken in accordance with a regulatory schedule set forth in the EO which has as its objective a notice of proposed rulemaking on the Environmental Protection Agency’s (EPA) Section 401 regulations to be published in 12 months, with the final rules to be issued by May 2020;
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Beyond the Disneyland Resort: Museums
May 03, 2018 —
Beverley BevenFlorez-CDJ STAFFNorth Orange County has a variety of interesting museums from intimate to extravagant to peruse.
Bowers Museum, located in Santa Ana, has several special exhibitions on display around WCC Seminar: Endurance: The Antarctic Legacy Of Sir Ernest Shackleton And Frank Hurley, American Visionary: John F. Kennedy’s Life And Times, Gemstone Carvings: The Masterworks Of Harold Van Pelt, And First Americans: Tribal Art From North America.
Muzeo, a Museum and Cultural Center located in Anaheim, will be showcasing the Trash Artist Challenge Expo & Exhibition from May 12th -27th, and also has on permanent display Anaheim: A Walk through Local History.
Star Wars and Disney fans will want to make their way to the
Hilbert Museum of California Art. In the city of Orange, this museum is located at Chapman University. Two of their many exhibitions include Magical Visions: The Enchanted Worlds Of Eyvind Earle (Disney’s Sleeping Beauty designer) and A New Hope: The Star Wars Art of Robert Bailey.
Learn about American history at the
Richard Nixon Library, located in nearby Yorba Linda.
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Illinois Appellate Court Affirms Duty to Defend Construction Defect Case
August 04, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe Illinois Appellate Court affirmed the trial court's ruling that the insurer had a duty to defend a construction defect case. West Bend Mut. Ins. Co. v. Pulte Home Corp., 2015 Ill App. Unpub. LEXIS 1039 (Ill. Ct. App. May 15, 2015).
Pulte Home Corporation was a developer who developed and constructed a residential condominium development known as The Reserve of Elgin (The Reserve). G.H. Siding was subcontracted by Pulte to work on the development, including the installation of exterior siding.
The Reserve Homeowners Association (HOA) filed suit against Pulte and James Hardie Building Products Inc., the company that manufactured the exterior siding. The complaint alleged that Pulte developed, designed, constructed and sold the units and common areas. Pulte installed siding manufactured by Hardie on the exterior of the units. The siding was allegedly defective. The HOA alleged breach of implied warranty of habitability and breach of contract by Pulte. Hardie was sued for breach of express warranty and breach of implied warrant of habitability.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Indemnification Provisions Do Not Create Reciprocal Attorney’s Fees Provisions
November 21, 2018 —
CDJ STAFFIn a good, recent decision, the Eleventh Circuit in International Fidelity Insurance Co. v. Americabe-Moriarity, JV, 2018 WL 5306683 (11th Cir. 2018), held that Florida Statute s. 57.105(7) cannot be used to shift attorney’s fees in a contractual indemnification clause in a dispute between a general contractor and subcontractor’s performance bond surety, when the dispute does not involve an actual indemnification claim stemming from a third-party.
In this case, a prime contractor terminated a subcontractor and looked to the subcontractor’s performance bond surety to pay for the completion work. The subcontractor had a standard AIA A312 performance bond that requires the prime contractor to comply with the terms of the bond, as well as the incorporated subcontract, in order to trigger the surety’s obligations under the bond. The surety filed an action for declaratory relief against the prime contractor arguing that the prime contractor breached the terms of the performance bond through non-compliance thereby discharging the surety’s obligations. The trial court agreed and the surety moved for attorney’s fees.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Washington Supreme Court Interprets Ensuing Loss Exception in All-Risk Property Insurance Policy
May 20, 2024 —
David G. Jordan & William E. Phillips IV - Saxe Doernberger & Vita, P.C.The "ensuing loss" clause is a provision that restores coverage for property insurance claims that are subject to certain policy exclusions, such as “faulty workmanship” and “faulty design.” It applies in cases where there is damage from a covered cause of loss that ensues, or results from, the excluded cause of loss. Courts across jurisdictions have grappled with interpreting the breadth of this clause, leading to varying conclusions regarding its scope and applicability. One of the primary challenges in interpreting “ensuing loss” lies in determining the ultimate cause of damage. Courts must ascertain whether the ensuing loss is sufficiently distinct from the excluded event to warrant coverage under the policy. This analysis often hinges on whether the cause of loss is thought to constitute a separate and independent occurrence or is merely a continuation or exacerbation of the excluded event.
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David G. Jordan, Saxe Doernberger & Vita, P.C. and
William E. Phillips IV, Saxe Doernberger & Vita, P.C.
Mr. Jordan may be contacted at DJordan@sdvlaw.com
Mr. Phillips may be contacted at WPhillips@sdvlaw.com
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