COLUMBUS OHIO BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Can We Compel Insurers To Cover Construction Defect in General Liability Policies?

December 09, 2011 — Douglas Reiser, Builders Council Blog

Recently, I read an article on Engineering News-Record that outlines a remarkable movement by as many as four states, to mandate coverage of construction defects in contractor general liability insurance policies. Say what? Is this a reality? What will become of affordable insurance?

Commercial General Liability insurance, or CGL, is your basic liability insurance. Every contractor doing business in the State of Washington, and most likely those abroad, has this insurance. Contractors buy this insurance to protect them from unforeseen liabilities arising from their negligence - and right now it’s reasonably affordable.

Why is it so affordable in such a risk-heavy industry? Because CGL policies significantly limit the scope of their coverage. Coverage is generally afforded for damages resulting from negligence (The roofer put a hammer through the drywall contractor’s wall) or which resulted from your defective construction (the roof leaked and flooded the rest of the house). But, that coverage does not include replacement of your faulty construction (the contents of the home might be protected by your leaky roof - the leaky roof itself is not).

The debate over coverage typically stems from the definition of “occurrence,” a term used to describe the event from which coverage arises, “resulting loss,” a term used to describe the type of loss covered.

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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

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Fannie-Freddie Elimination Model in Apartments: Mortgages

April 08, 2014 — Sarah Mulholland – Bloomberg
The apartment-lending units of Fannie Mae (FNMA) and Freddie Mac were among their few money makers after the U.S. housing collapse. Now they should help transform the U.S. mortgage industry. Lawmakers seeking to eliminate the two government lenders, which were seized by regulators during the 2008 credit crisis, see an antidote to the reckless lending that blew up the U.S. housing market in the structure of the firms’ multifamily operations, which share risks with lenders. Senate Banking Committee Chairman Tim Johnson and Republican Mike Crapo are proposing legislation to create a new government-backed reinsurer of mortgage bonds that would require private investors to bear losses on the first 10 percent of capital. The model for the provision mirrors Fannie Mae and Freddie Mac (FMCC)’s multifamily lending operations, requiring lenders to shoulder some of the risk on loans they originate. Read the court decision
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Reprinted courtesy of Sarah Mulholland, Bloomberg
Ms. Mulholland may be contacted at smulholland3@bloomberg.net

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Blackstone to Buy Apartments From Greystar in $2 Billion Deal

December 10, 2015 — Sarah Mulholland – Bloomberg
Blackstone Group LP agreed to buy 32 multifamily properties for about $2 billion from Greystar Real Estate Partners LLC as the private equity giant expands its push into the U.S. apartment market. The buildings, with a total of 10,399 units, are spread throughout the country in states such as California, Florida, Washington and New York, Greystar said in a statement Tuesday. The Charleston, South Carolina-based company, the largest U.S. apartment manager, will continue to oversee the properties. Peter Rose, a Blackstone spokesman, declined to comment on the transaction. Read the court decision
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Reprinted courtesy of Sarah Mulholland, Bloomberg

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Unpaid Hurricane Maria Insurance Claims, New Laws in Puerto Rico, and the Lesson for all Policyholders

January 09, 2019 — Walter J. Andrews & Cary D. Steklof - Hunton Andrews Kurth
Puerto Rico’s dire insurance situation more than a year after Hurricane Maria remains a constant reminder of why policyholders must diligently pursue their property and business interruption claims in the immediate aftermath of a storm. The numbers are staggering. On an island the approximate size of Connecticut, Hurricane Maria caused an estimated $100 billion in damage. According to the Office of the Insurance Commissioner of Puerto Rico, the hurricane resulted in more than 287,000 insurance claims. Roughly 11,000 of those claims, representing an estimated $2 billion in losses, remain unresolved. Reprinted courtesy of Walter J. Andrews , Hunton Andrews Kurth and Cary D. Steklof , Hunton Andrews Kurth Mr. Andrews may be contacted at wandrews@HuntonAK.com Mr. Steklof may be contacted at csteklof@HuntonAK.com Read the court decision
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BHA Has a Nice Swing

May 03, 2018 — Beverley BevenFlorez-CDJ STAFF
Bert L. Howe & Associates, Inc., (BHA) raises thousands of dollars each year with their Sink a Putt for Charity campaign. This year, participant’s efforts on the green will help benefit three cancer fighting institutions that are dedicated to treating and eradicating children’s cancer: Hawaii’s Children’s Cancer Foundation, St. Jude Children’s Research Hospital, and Shriners Hospital for Children. As in the past, attendees can participate for free in the BHA golf challenge and win a $25 Amazon gift card, and for every successful putt made, BHA will make a $25 cash donation in the golfer’s name to be distributed equally between each worthy organization. While at the booth, don’t forget to test out BHA’s industry leading data collection and inspection analysis systems. BHA’s data collection process includes video overviews as well as next-day viewing of inspection data via their secured BHA Client Access Portal. Discover meaningful cost improvements that translate to reduced billing while providing superior accuracy and credibility. Also learn about BHA’s expanding market presence and full range of services in Texas, Florida, and across the Southeast United States. Attendees can also enter to win Dodger baseball tickets! Other BHA giveaways include LED flashlights, tape measures, multi-tools and stress balls. For more information on these worthwhile charities or to make a donation directly, please visit their websites: Hawaii’s Children’s Cancer Foundation , St. Jude Children’s Research Hospital, and Shriners Hospital for Children. Read the full story, Bert L. Howe & Associates, Inc.... Read the court decision
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Conspirators Bilked Homeowners in Nevada Construction Defect Claims

March 28, 2012 — CDJ STAFF

Courthouse News has a summary of the current lawsuit over a Nevada conspiracy to defraud homeowners by taking control of homeowner boards and then providing inadequate repairs. Homeowners in eight Las Vegas area communities are involved in the suit, which claims that the conspirators purchased units in the communities and then transferred fractional interests to others to allow them to run for HOA board elections. The suit claims that David Amesbury and his firm helped manipulate the elections.



Once homeowner boards were controlled by the conspirators, Nancy Quon, the construction defect attorney whose recent death appears to be by suicide, handled the litigation against homebuilders. She would settle out of court, engaging Silver Lining Construction to “do very minor and superficial repairs” to the homes. The remainder of the money was split by the conspirators. The suit also notes that the construction defect claims were “frivolous,” and?in addition to the negative publicity?caused the homes to lose at least 5% of their value.

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Steel Component Plant Linked to West Virginia Governor Signs $1M Pollution Pact

January 04, 2023 — Mary B. Powers - Engineering News-Record
Bluestone Coke, a 100-year old Birmingham. Ala. factory that produces a key component in steelmaking and is partially owned by West Virginia Gov. Jim Justice, must pay nearly $1 million under a Dec. 9 state consent decree for violating federal clean air rules by releasing toxic emissions from coke ovens. Reprinted courtesy of Mary B. Powers, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Denial of Coverage For Bodily Injury After Policy Period Does Not Violate Public Policy

May 12, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The Rhode Island Supreme Court agreed that the insurer had no coverage obligations for bodily injury occurring after the policy had been canceled. Hoesen v. Lloyd's of London, 2016 R.I. LEXIS 41 (R.I. March 24, 2016). The plaintiff, Mark Van Hoesen, was seriously injured on July 23, 2012, when he fell from a deck of his house. He sued his contractor, Brian Leonard, alleging that the deck had been negligently constructed. Lloyd's, Leonard's insurer, was later named as a defendant. Lloyd's admitted it issued the policy to Leonard, but it was cancelled on August 29, 2007. Even if it had not been canceled, the policy had expired long before the injuries alleged in plaintiff's complaint occurred. 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

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