Additional Insured Not Entitled to Coverage for Post-Completion Defects
December 21, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe general contractor, an additional insured on the subcontractor's policy, was not entitled to coverage for construction defect claims that arose after completion of the project. Weitz Co. v. Acuity, 2016 U.S. Dist. LEXIS 150433 (S.D. Ohio Oct. 31, 2016).
Weitz was the general contractor hired by Twin Lakes for construction of a residential community. One of the subcontractors, Miter Masonry, was insured by Acuity under a CGL policy. Work on the project began in 2002 and was substantially completed in 2005. In 2011, Twin Lakes notified Weitz that there were moisture infiltration issues at the project that may be related to work during the project.
Twin Lakes filed a Demand for Arbitration against Weitz on November 30, 2012. Twin Lakes alleged that the defects included the building wrap, windows, doors, wood trim, aluminum wrap, vinyl siding, flashing and brick veneer not being installed in accordance with contract documents and/or industry standards. The arbitration panel awarded damages to Twin Lakes in the amount of $2,775,771.86. The panel found that Weitz breached sections of the contract which caused moisture intrusion and damage to all the units. The panel ultimately held that Weitz could recover from the subcontractors 100% of the $2,775,771.86 awarded. Acuity's insured, Miter Masonry, was determined to be 4% at fault for the damages.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Contractors Set to Implement Air Quality Upgrades for Healthier Buildings
April 12, 2021 —
Nate Echtenkamp - Construction ExecutiveAs people spend more time in offices, stores and other buildings, and colder weather forces many outdoor activities to be held indoors during the COVID-19 pandemic, construction contractors are increasingly being asked by building owners and operators to provide various mitigation strategies to improve indoor air quality to help occupants avoid being exposed to lingering airborne viral particles.
Lowering the concentration of SARS-CoV-2 and other pathogens in enclosed public spaces is of the utmost importance nowadays given that Americans, on average, spend nearly 90% of their time indoors, according to the EPA.
It’s fairly common knowledge that the best way to avoid infection is to follow guidelines issued by the Centers for Disease Control and Prevention that include:
- wearing masks or other face coverings;
- frequent hand-washing;
- physical distancing of at least six feet; and
- deep-cleaning procedures.
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Nate Echtenkamp, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Conflict of Interest Accusations may Spark Lawsuit Against City and City Manager
February 07, 2014 —
Beverley BevenFlorez-CDJ STAFFCasper, Wyoming Councilman Craig Hedquist—who is also owner of Hedquist Construction—has been “accused of violating state and local conflict-of-interest laws,” according to the Star-Tribune. In response, Hedquist “is threatening a lawsuit against City Manager John Patterson, the city of Casper and ‘possibly others,’ according to a letter obtained by the Star-Tribune.”
The letter, which was sent to City Attorney William Luben by Hedquist attorney John Robinson, “demands the city preserve, from Aug. 1, 2012, on, all records of communication and consultation with attorneys and investigators, along with minutes, notes, recordings, executive sessions and digital data regarding Hedquist and Hedquist Construction.”
City Manager John Patterson told the Star-Tribune that “he was unaware of the letter and didn't know what the lawsuit might be about.”
Hedquist maintains that there was never a conflict of interest: “The general and expected practice for the Casper City Council members is to not vote on matters in which a council member may have a personal interest and record this recusal in the public record,” Hedquist said, as reported by the Star-Tribune. “I have done this on all contract matters regarding Hedquist Construction.”
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ABC Chapter President Comments on Miami Condo Collapse
July 11, 2021 —
Rachel O'Connell - Construction ExecutivePeter Dyga, ABC Florida East Coast Chapter president, has been one of the go-to experts in the aftermath of the shocking collapse of the Champlain Towers South condo building in Surfside, Florida.
As of publication, the death toll stands at 46 people and another 94 remain unaccounted for. On July 7, rescue officials announced the search would transition to a recovery operation at midnight on July 8, following the demolition of the remaining building over the July 4 weekend.
Dyga sat down with Construction Executive to discuss the critical nature of this tragedy and to review potential next steps.
Construction Executive: This incident has become national news. Why do you think the building collapse has garnered so much attention?
Peter Dyga: Because of the enormity of the tragedy and because it’s so uncommon for a building to collapse on its own.
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Rachel O'Connell, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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California Supreme Court Rejects Third Exception to Privette Doctrine
July 03, 2022 —
Lewis BrisboisWalnut Creek, Calif. (May 25, 2022) - In Gonzalez v. Mathis (August 19, 2021) 12 Cal. 5th 29, the California Supreme Court considered whether to create a third exception to the Privette Doctrine specific to known hazards on a worksite, when a contractor cannot remedy the hazard by taking reasonable safety precautions to protect against it.
Privette Background
Under the Privette Doctrine, the hirer of an independent contractor generally cannot be liable for injuries sustained by the independent contractor or its employees while on the job. This is due to the “strong presumption” that the hirer delegates all responsibility for workplace safety to the independent contractor. See Privette v. Superior Court (1993) 5 Cal. 4th 689. Since the Privette ruling in 1993, the California Supreme Court has identified two circumstances in which the presumption may be overcome. First, the hirer may be liable when it retains control over any part of the independent contractor’s work and negligently exercises that retained control in a manner that affirmatively contributes to the injury. Hooker v. Dept. of Transportation (2002) 27 Cal. 4th 198, 213. Second, a landowner who hires an independent contractor may be liable if the landowner knew, or should have known, of a concealed hazard to the property that the contractor did not know of and could not have reasonably discovered, and the landowner failed to warn the contractor of the hazard. Kinsman v. Unocal Corp. (2005) 37 Cal. 4th 659, 664. Here, in the Gonzalez case, the court considered whether a landowner could be liable for known hazards on the property.
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Lewis Brisbois
Comply with your Insurance Policy's Conditions Precedent (Post-Loss Obligations)
May 31, 2021 —
David Adelstein - Florida Construction Legal UpdatesI am of the opinion that if your property insurer requests a sworn proof of loss, furnish one with the assistance of counsel (preferably). Ignoring the insurer’s request or refusing to comply with insurer’s request is NOT value-added; it is simply placing you at a disadvantage based on the insurer’s argument that you, as the insured, materially breached the policy. I generally find no value having to confront this expected argument. Instead, I find value making an effort to comply with post-loss obligations including the insurer’s request to submit a sworn proof of loss. Working with counsel can help you comply with post-loss obligations (conditions precedent) while not weakening the value or merits of your claim.
By way of example, in Edwards v. Safepoint Ins. Co., 46 Fla. L. Weekly D1086a (Fla. 4th DCA 2021), the insured did not provide its property insurer with the requested sworn proof of loss. The insurer moved for summary judgment that the insured’s failure to submit the sworn proof of loss was a material breach of the policy that rendered the policy ineffective. The trial court agreed and granted summary judgment. The Fourth District Court of Appeal affirmed explaining “[a] total failure to comply with policy provisions made a prerequisite to suit under the policy may constitute a breach precluding recovery from the insurer as a matter of law. If, however, the insured cooperates to some degree or provides an explanation for its noncompliance, a fact question is presented for resolution by a jury.” Edwards, supra, quoting Haiman v. Federal Ins. Co., 798 So.2d 811, 812 (Fla. 4th DCA 2001).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Floors Collapse at Russian University in St. Petersburg
February 27, 2019 —
The Associated Press - BloombergSt. Petersburg, Russia (AP) -- Part of the roof and several floors of university building in Russia's second-largest city collapsed Saturday, but officials say there were no casualties.
The Emergencies Ministry said the collapse at the Saint Petersburg National Research University of Information Technologies, Mechanics and Optics took place as construction work was underway. An investigation into criminal violation of construction safety has been opened.
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The Associated Press, Bloomberg
Drones Give Inspectors a Closer Look at Bridges
January 02, 2019 —
Aileen Cho - Engineering News-RecordTed Zoli, national chief bridge engineer with HNTB, compares bridge inspections to taking his kids to the doctor. “Every few years you take another set of pictures of the bridge, and ultimately you can pattern it. You pay attention in a deeper way to responses, and have a record.” But like parents who don’t want to send kids to the doctor at the first sign of a sniffle, once managers understand the characteristics of a bridge and its behavior, they don’t need to do constant in-depth reinspections. They are constantly looking for ways to make better decisions with the data they already have. “We spend a lot of money inspecting bridges,” says Zoli. “The question becomes whether there is a more technologically efficient way to do it.”
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Aileen Cho, ENRENR may be contacted at
ENR.com@bnpmedia.com