COLUMBUS OHIO BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Builder’s Risk Coverage—Construction Defects

August 20, 2019 — Brian Hearst - Construction Executive
This is the second of three articles bringing clarity to the complex and challenging course of construction exposures and providing solutions for mitigating risk through builder’s risk insurance coverage. Part I, Builder’s Risk Coverage – Language Matters, addressed a select few critical exposures to projects under the course of construction. Part II addresses how a standard builder’s risk policy may respond to a loss arising from defective construction and alternative insurance market offerings that can help with specific costs associated with construction defect loss. Coverage for Loss Ensuing from Faulty Workmanship Part I tackled the standard builder’s risk exclusion that applies to losses arising from faulty materials or workmanship. Traditionally, carriers do not have an appetite for covering a contractor’s failure to perform their work properly. There is one exception, which is coverage is available for ensuing loss – or the resulting damage to other property from faulty workmanship. If the excluded cause of loss (i.e., faulty workmanship) causes resultant damage, the builder’s risk policy will cover the damages to the extent the peril of fire is covered. The ensuing loss exception limits the faulty work exclusion to costs directly related to repairing or replacing the faulty work. For example, suppose faulty wiring work leads to a fire which damages part of a structure under construction. The faulty workmanship exclusion would apply to the actual faulty wiring work, but if fire is a covered peril under the policy (this is nearly always the case), the policy would respond to the structure’s fire damage. Reprinted courtesy of Brian Hearst, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Hearst may be contacted at Brian.Hearst@lockton.com

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Texas Court Requires Insurer to Defend GC Despite Breach of Contract Exclusion

December 19, 2018 — Ashley L. Cooper - Saxe Doernberger & Vita, P.C.
In Mt. Hawley Insurance Co. v. Slay Engineering, et al.,1 a Texas federal court ruled in favor of a general contractor, finding that its insurer had a duty to defend it in a construction defect case filed by the owner. The decision adds more clarity to the interpretation of the subcontractor exception to the “Damage to Your Work” exclusion as well as the Breach of Contract exclusion, which has been the subject of several cases coming out of Texas over the past decade. Read the court decision
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Reprinted courtesy of Ashley L. Cooper, Saxe Doernberger & Vita, P.C.
Ms. Cooper may be contacted at alc@sdvlaw.com

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Not to Miss at This Year’s Archtober Festival

October 15, 2014 — Carrie Hojnicki – Bloomberg
New York architecture fanatics everywhere can rejoice: Archtober has arrived. In its fourth annual iteration, the monthlong festival throws a spotlight on the importance of architecture and design in the five boroughs, calling special attention to the city’s rich built history and exciting future. In addition to a lineup of lectures, openings, and workshops, the American Institute of Architects (AIA) New York Chapter–sponsored initiative highlights a “Building of the Day,” with on-site tours led by the architects themselves. Here are five events not to miss this Archtober. 1. AIA’s New York chapter puts its own spin on the architecture tour: a boat ride. Guides from the AIA will share their wisdom as the cruise circles the tip of Manhattan, passing architectural marvels aplenty. October 3, 10 am and 1:30 pm, Classic Harbor Line Read the court decision
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Reprinted courtesy of Carrie Hojnicki, Bloomberg

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The Trend in the Economic Loss Rule in Construction Defect Litigation

January 14, 2015 — Beverley BevenFlorez-CDJ STAFF
Heather Howell Wright of Bradley Arant Boult Cummings LLP, analyzed the Massachusetts Supreme Court decision in Wyman v. Ayer Properties, LLC, which ruled that the “economic loss rule is not applicable to the damage caused to the common areas of a condominium building as a result of the builder’s negligence.” Wright compared Wyman to last year’s Florida Supreme Court case, Tiara Condominium Association v. Marsh & McLennan Companies that decided “that the economic loss rule did not preclude a condominium association from asserting a negligence claim against a contractor for defective work.” Wright concluded that “[t]he Wyman decision is another ruling in a growing line of cases where courts have limited application of the economic loss rule and have held that a contractor can be liable in tort for defective work.” Read the court decision
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US Court Questions 102-Mile Transmission Project Over River Crossing

February 07, 2022 — Mary B. Powers - Engineering News-Record
A federal judge will decide in February whether to stop construction of a $492-million Iowa-to-Wisconsin transmission line, after issuing an opinion in mid-January “declaring” that federal rules preclude the 102-mile Cardinal-Hickory Creek project from crossing the 261-mile Upper Mississippi River National Wildlife and Fish Refuge by right-of-way or land transfer. 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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No Coverage For Construction Defects When Complaint Alleges Contractual Damages

September 01, 2011 — Tred R. Eyerly - Insurance Law Hawaii

The underlying plaintiff’s allegations contended the contractor was in breach of contract for construction defects caused in building her home. Accordingly, the court found no coverage.See Nat’l Builders and Contractors Ins. Co. v. Slocum, 2011 U.S. Dist. LEXIS 81694 (S.D. Miss. July 26, 2011).

Slocum Construction LLC sold a home it built to Laura Peterson. Subsequently, Peterson filed suit, alleging a breach of the contract and seeking rescission and cancellation of the contract. Peterson further alleged at least thirty-three specific defects in the construction of the house.

Slocum tendered to its insurer, National Builders and Contractors Insurance Company (NBCI). NBCI filed suit for a declaratory judgment.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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Dealing with Hazardous Substances on the Construction Site

July 10, 2018 — Christopher G. Hill - Construction Law Musings
For this week’s Guest Post Friday here at Construction Law Musings, we welcome Vickie Lane. Vickie is the primary point of contact for Business Development with HAZMAT Plans & Programs, a consulting and training firm that also works under the name of HP&P Safety. Vickie’s functions with HP&P include extensive pre-project research and support though estimating, planning and cost administration. Vickie attended Ohio State University and now enjoys her role as a first time grandmother and spending free time up in the Colorado Rocky Mountains. Vickie can be reached at vlane@hppsafety.com or on Twitter @HAZMATPlans and @hpandpsafety. Most of us perceive hazards on a construction site to be those that can be readily visualized or perhaps easily imagined, like trench cave-ins or falls from heights. These are the obvious, but what about the nocuous, microscopic hazards that can’t be seen by the human eye, but can destroy the health of your workers? Welcome to the world of hazardous materials. The inherent danger associated with hazardous substances is workers might not be not aware of exposure. Think of a snake in the dark scenario. If it is a rattlesnake, you have warning before the bite. A cobra on the other hand gives no such warning and the bite can be fatal. So it can be with hazardous and toxic substances. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Residential Interior Decorator Was Entitled to Lien and Was Not Engaging in Unlicensed Contracting

August 04, 2021 — David Adelstein - Florida Construction Legal Updates
Residential construction disputes can sometimes take nasty turns. This is not attributed to one specific reason, but a variety of factors. Sometimes, there are not sophisticated contracts (or contracts at all). Sometimes, relationships and roles get blurred. Sometimes, parties try to skirt licensure requirements. Sometimes, a party is just unreasonable as to their expectations. And, sometimes, a party tries to leverage a construction lien to get what they want. In all disputes, a party would certainly be best suited to work with construction counsel that has experience navigating construction disputes. An example of a construction dispute that took a nasty turn involving an interior decorator is SG 2901, LLC v. Complimenti, Inc., 2021 WL 2672295 (Fla. 3d DCA 2021). In this case, a condominium unit owner wanted to renovate his apartment. He hired an interior decorator to assist. As his renovation plans became more expansive, the interior decorator told him he would need to hire a licensed contractor and architect. The interior decorator arranged a meeting with those professionals and, at that meeting, they were hired by the owner and told to deal directly with the interior decorator, almost in an owner’s representative capacity since the owner traveled a lot. The interior decorator e-mailed the owner about status and requested certain authorizations, as one would expect an owner’s representative to do. At the completion of the renovation job, the owner did not pay the interior decorator because he was unhappy with certain renovations. The interior decorator recorded a construction lien and sued the owner which included a lien foreclosure claim. There was no discussion of the contracts in this case because, presumably, contracts were based on proposals, were bare-boned, or were oral. 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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