West Virginia Wild: Crews Carve Out Corridor H Through the Appalachian Mountains
May 08, 2023 —
Aileen Cho - Engineering News-RecordWhen crews with Kokosing Construction Co. began a $209-million design-build contract—the largest of its kind in West Virginia—in 2015, they first had to build roads in order to build the actual road called Corridor H.
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Aileen Cho, Engineering News-Record
Ms. Cho may be contacted at choa@enr.com
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Georgia Supreme Court Determines Damage to "Other Property" Not Necessary for Finding Occurrence
July 31, 2013 —
Tred Eyerly, Insurance Law HawaiiThe Georgia Supreme Court has determined that an "occurrence" may arise under a CGL policy even if "other property" is not damaged. Taylor Morrison Servs. v. HDI-Gerling Am. Ins. Co., 2013 Ga. LEXIS 618 (Ga. July 12, 2013).
Taylor Morrison, the insured, was a homebuilder. It was sued in a class action by more than 400 homeowners in California alleging that the concrete foundations of their homes were improperly constructed. This led to water intrusion, cracks in the floors and driveways, and warped and buckled flooring.
At first, HDI-Gerling defended under a reservation of rights. Subsequently, however, HDI-Gerling sued Taylor Morrison in federal district court in Georgia, seeking a declaratory judgment that there was no coverage. The district court granted summary judgment to HDI-Gerling after determining that there was no "occurrence" when the only "property damage" alleged was damage to work of the insured. Georgia law was applied to the dispute.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Hawaii Appellate Court Finds Appraisers Limited to Determining Amount of Loss
April 25, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe Hawaii Intermediate Court of Appeals determined that appraisers cannot decide what amount is owed by the insurer after loss, but are limited to finding the amount of the loss. Krafchon v. Dongbu Ins. Co., Ltd., 2023 Haw. App. LEXIS 43 (Haw. Ct. App. Feb. 17, 2023).
The insureds owned three structures on the property on Maui: the Villa; the Cottage; and the Garage. The three structures were insured under homeowners and dwelling fire policies issued by Dongbu. When the structures were damaged by wildfire, Dongbu tendered over $300,000 under a reservation of rights, pending preparation of a final settlement. There was disagreement over the total amount of the loss.
The insureds invoked the appraisal provision of the policies. When Dongbu failed to appoint an appraiser, the insureds sued. The trial court granted the insureds' motion to compel appraisal.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Is the Construction Industry Actually a Technology Hotbed?
August 19, 2024 —
Andrew Silver - Construction ExecutiveTechnology has always been a driving force behind progress, and the construction industry is no exception. Over the years, technological advancements have revolutionized the way companies design, plan and build structures, leading to increased efficiency, safety and sustainability. From virtual-reality simulations to drones and 3D printing, technology has transformed every aspect of the construction process. However, the construction trades still lag behind other sectors in adoption of digital technologies. With a lack of skilled labor continuing to be an impediment to growth and profitability in the construction industry, technological developments could have significant implications for successful adopters.
Already, the industry is seeing a huge difference in valuation between traditional engineering and construction firms and construction software companies. As labor shortages continue to hinder growth in the industry, consolidation is likely, as is the probability that companies with the greatest tech capabilities will be the most highly valued. There are several areas of technology that are of the greatest interest in the current marketplace.
BIM
Building information modeling with computer-aided design software now allows architects and engineers to create detailed and accurate 3D models of buildings and infrastructure projects, integrating data about every aspect of the building, from materials and costs to energy efficiency and maintenance schedules. These models not only help in visualizing the final product; they also enable better communication and collaboration among project stakeholders.
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Andrew Silver, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Contractors Admit Involvement in Kickbacks
December 09, 2011 —
CDJ STAFFTwo New Jersey contractors have pleaded guilty to charges that they made false representations for a government contract in a case related to kickbacks for construction work done in two school districts. New Jersey is recommending that the two men, Martin Starr and Stephen Gallagher, will each pay $50,000 in penalties, serve up to a year in jail, and be unable to accept public contracts for five years.
Last month, another individual in the case, Kenneth Disko, who had been the engineer for the school district, pleaded guilty on a similar charge. In addition to a $50,000 penalty, he will be serving three to five years in prison. A fourth conspirator, Robert Berman, the former business administrator for one of the school districts, has to pay a $13,000 fine and cooperate with the investigation. He is also barred from public employment in New Jersey and has been terminated from his position.
Starr admitted to preparing fictitious quotes which appeared to be from other contractors in order that his firm would seem to be the lowest bidder. Gallagher helped in preparing the fictitious bids and also provided cash kickbacks to Disko.
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California Clarifies Its Inverse Condemnation Standard
December 30, 2019 —
Gus Sara - The Subrogation StrategistIn City of Oroville v. Superior Court, 446 P.3d 304 (Cal. 2019), the Supreme Court of California considered whether the City of Oroville (City) was liable to a dental practice for inverse condemnation damages associated with a sewer backup. The court held that in order to establish inverse condemnation against a public entity, a property owner must show that an inherent risk in the public improvement was a substantial cause of the damage. Since the dental practice did not have a code-required backwater valve — which would have prevented or minimized this loss — the court found that the city was not liable because the sewage system was not a substantial cause of the loss. This case establishes that a claim for inverse condemnation requires a showing of a substantial causal connection between the public improvement and the property damage. It also suggests that comparative negligence can be a defense to inverse condemnation claims.
In December 2009, a dental practice, WGS Dental Complex (WGS), located in the City, incurred significant water damage as a result of untreated sewage from the City’s sewer main backing up into WGS’ building. WGS submitted a claim to its insurance carrier, The Dentists Insurance Company (TDIC) and, in addition, sued the City for its uninsured losses, alleging inverse condemnation and nuisance. TDIC joined the litigation, alleging negligence, nuisance, trespass and inverse condemnation. Under California law, when a government entity fails to recognize that an action or circumstance essentially amounts to a taking for public use, a property owner can pursue an inverse condemnation action for compensation. The City filed a cross-complaint against WGS for failing to install a code-required backwater valve on their lateral sewer line, which would have prevented or minimized the backup.
The City filed a motion for summary judgment, which the trial court denied. WGS then sought a judicial determination on the issue of inverse condemnation. The City presented evidence that the sewage system was designed in accordance with industry standards, and that WGS failed to comply with the City’s plumbing code by failing to install a backwater valve on its private sewer lateral. The trial court found the City liable for inverse condemnation because the blockage that caused the backup originated in the City’s sewer line. The court held that the blockage was an inherent risk of sewer operation. The Court of Appeals affirmed the decision, holding that the City would have had to prove that the WGS’s lack of a backwater valve was the sole cause of the loss in order to absolve itself of liability.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
Wisconsin Court Applies the Economic Loss Doctrine to Bar Negligence Claims for Purely Economic Losses
August 17, 2020 —
Rahul Gogineni - The Subrogation StrategistIn Mech. Inc. v. Venture Elec. Contrs., Inc., No. 2018AP2380, 2020 Wisc. App. LEXIS 170, the Court of Appeals of Wisconsin, District Two, considered whether a party may bring a negligence claim for purely economic damages. In upholding the lower court, the appellate court found that a party is barred by the Economic Loss Doctrine from bringing a negligence claim for purely economic damages.
Both parties involved in this action were subcontractors on a building project at the Great Lakes Research Facility for the University of Wisconsin-Milwaukee. As a result of Venture Electrical Contractors, Inc. (Venture) not paying for requested work, Mechanical, Inc. (Mechanical) sued Venture for $11,961.31. Venture, in turn, countersued in negligence for $1.1 million for costs incurred due to delays and untimely performance. Mechanical sought dismissal of the negligence claim based upon the Economic Loss Doctrine. Finding that the Economic Loss Doctrine applies to purely economic losses, the trial court dismissed Venture’s negligence claim. Venture appealed to the Court of Appeals of Wisconsin.
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Rahul Gogineni, White and Williams LLPMr. Gogineni may be contacted at
goginenir@whiteandwilliams.com
Rhode Island Finds Pollution Exclusion Ambiguous, Orders Coverage for Home Heating Oil Leak
March 06, 2023 —
Kayla S. O'Connor - Saxe Doernberger & Vita, P.C.The Rhode Island case of Regan Heating and Air Conditioning, Inc. v. Arbella Protection Insurance Company, Inc., et. al.1 provides much-needed guidance regarding ambiguity and the term “pollution.”
In Regan, the Rhode Island Supreme Court held that a pollution exclusion contained in the Plaintiff’s “Commercial Package Policy” was ambiguous as to whether home heating oil that escaped into a customer’s basement constituted a “pollutant” under the policy.
This case stems from a 2015 incident wherein Regan was in the process of removing an older heating system and installing a new heating system in a customer’s home when that customer discovered 170 gallons of home heating oil in his basement. The customer sued Regan, alleging negligence and demanding remediation for the property damage caused by the oil leak.
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Kayla S. O'Connor, Saxe Doernberger & Vita, P.C.Ms. O'Connor may be contacted at
KOconnor@sdvlaw.com