Loss Ensuing from Faulty Workmanship Covered
April 28, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe court found coverage for damage resulting from faulty workmanship. Drury Co. v. Mo. United Sch. Ins. Counsel, 2014 Mo. App. LEXIS 319 (Mo. Ct. App. March 25, 2014).
The School District entered a contract with general contractor, Penzel Construction Company, Inc., to build an addition to a high school. Under the prime contract, the School District was to purchase property insurance, including builder's risk "all-risk" coverage. The policy was to cover the interests of the owner, the contractor, subcontractors and sub-subcontractors in the project.
The School District obtained a policy from Missouri United School Insurance Counsel (MUSIC). Exclusions in the all-risk policy included loss due to faulty workmanship or materials, "unless loss by a peril not otherwise excluded ensues and then MUSIC shall be liable only for such ensuing loss."
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Real Estate & Construction News Roundup (7/2/24) – Increase in Commercial Property Vacancy Rates, Trouble for the Real Estate Market and Real Estate as a Long-Term Investment
July 31, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, the evolution of stadium construction, an increase in legal and legislative action affecting the multifamily sector, and growing concerns for owners of office space.
- The work-from-home trend will likely push up the commercial property vacancy rate in 2026 to a peak average of 24%, or 4 percentage points higher than the first quarter of this year. (Jim Tyson, CFO Dive)
- In recent years, stadium construction has evolved to focus more on cultivating the game day experience with some multibillion-dollar projects breaking ground, as existing venues get renovations. (Zachary Phillips, Construction Dive)
- A number of prominent issues affecting the multifamily industry, including rent control, fees and antitrust concerns, have been subject to increasing levels of legal and legislative action over the past year. (Mary Salmonsen, Multifamily Dive)
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Pillsbury's Construction & Real Estate Law Team
Gordie Howe Bridge Project Team Looks for a Third Period Comeback
September 26, 2022 —
Jeff Yoders - Engineering News-RecordThe late Detroit Red Wings hockey great Gordie Howe was beloved in his native Canada and in his adopted U.S. home. A new international bridge connecting both places is trying to create similar goodwill for border traffic, but the project’s public-private partnership team and the Canadian government authority it is working for will have to join together to shift lines and mount a comeback in the third period of its construction.
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Jeff Yoders, Engineering News-Record
Mr. Yoders may be contacted at yodersj@enr.com
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Force Majeure Under the Coronavirus (COVID-19) Pandemic
March 29, 2021 —
Lindsay T. Watkins - Ahlers Cressman & Sleight PLLCAs COVID-19 disrupts work and life as we know it, the question many contractors have is what protections are available against the inevitable project impacts and delays? Generally, construction contracts require a contractor to timely perform work until project completion or potentially face damages (liquidated or actual) and possible termination. When events occur, however, that are beyond our control (such as a national pandemic), it is important to review and understand what contract provisions or avenues are available for potential relief.
- Review Your Contract For A Force Majeure Provision.
A “force majeure” contract provision is commonly included in construction contracts, service agreements, purchase orders, etc. It typically covers events or conditions that can be neither anticipated nor controlled. These provisions, however, will vary greatly from contract to contract and may not include the language “force majeure” but rather may be included in general delay or impact clauses. For example, some common provisions include:
- Washington State Department of Transportation Clause (2018 Standard Specifications for Road, Bridge and Municipal Construction): The Contractor shall rebuild, repair, restore, and make good all damages to any portion of the permanent or temporary Work occurring before the Physical Completion Date and shall bear all the expense to do so, except damage to the permanent Work caused by: (a) acts of God, such as earthquake, floods, or other cataclysmic phenomenon of nature, or (b) acts of the public enemy or of governmental authorities; or (c) slides in cases where Section 2-03.3(11) is applicable; Provided, however, that these exceptions shall not apply should damages result from the Contractor’s failure to take reasonable precautions or to exercise sound engineering and construction practices in conducting the Work.
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Lindsay T. Watkins, Ahlers Cressman & Sleight PLLCMs. Watkins may be contacted at
Lindsay.Watkins@acslawyers.com
EPA Will Soon Issue the Latest Revision to the Risk Management Program (RMP) Chemical Release Rules
February 10, 2020 —
Anthony B. Cavender - Gravel2GavelOn November 21, 2019, EPA released a pre-publication copy of its Reconsideration of the revised Risk Management Program (RMP) Rules. In an accompanying statement, the agency noted that it has taken steps to “modify and improve” the existing rule to remove burdensome, costly and unnecessary requirements while maintaining appropriate protection (against accidental chemical releases) and ensuring responders have access to all of the necessary safety information. This action was taken in response to EPA’s January 13, 2017 revisions that significantly expanded the chemical release prevention provisions the existing RMP rules in the wake of the disastrous chemical plant explosion in West, Texas. The Reconsideration will take effect upon its publication in the Federal Register.
Background
As recounted by the D. C. Circuit in its August 2018 decision in the case of Air Alliance Houston, et al. v. EPA, in 1990, the Congress amended the Clean Air Act to force the regulation of hazardous air pollutants (see 42 USC Section 7412). An initial list of these hazardous air pollutants was also published, at Section 7412 (b). Section 112(r) (codified at 42 USC Section 7412 (r)), authorized EPA to develop a regulatory program to prevent or minimize the consequences of a release of a listed chemical from a covered stationary source. EPA was directed to propose and promulgate release prevention, detection, and correction requirements applicable to stationary sources (such as plants) that store or manage these regulated substances in amounts determined to be above regulated threshold quantities. EPA promulgated these rules in 1996 (see 61 FR 31668). The rules, located at 40 CFR Part 68, contain several separate subparts devoted to hazard assessments, prevention programs, emergency response, accidental release prevention, the development and registration of a Risk Management Plan, and making certain information regarding the release publicly available. EPA notes that over 12.000 RMP plans have been filed with the agency.
In January 2017, in response to the catastrophe in West, EPA issued substantial amendments to these rules, covering accident prevention (expanding post-accident investigations, more rigorous safety audits, and enhanced safety training), revised emergency response requirements, and enhanced public information disclosure requirements. (See 82 FR 4594 (January 13, 2017).) However, the new administration at EPA, following the submission of several petitions for reconsideration of these revised rules, issued a “Delay Rule” on June 14, 2017, which would have extended the effective date of the January 2107 rules until February 19, 2019. On August 17, 2018, the Delay Rule was rejected and vacated by the D.C. Circuit in the aforementioned Air Alliance case (see 906 F. 3d 1049 (DC Circuit 2018)), which had the effect of making the hotly contested January 2017 RMP revisions immediately effective.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Construction Recovery Still Soft in New Hampshire
May 10, 2013 —
CDJ STAFFThe latest building news out of New Hampshire is somewhat mixed. Yes, there has been an increase of seventeen percent in the value of future residential construction on the state. But that’s not enough to offset the general slide in the value of future construction overall. The New Hampshire Business Review reports that the state saw a four percent drop in the cost of planned construction, comparing March 2012 to March 2013.
The total value of the drop was shared between the twelve percent drop in nonresidential construction and the fifty-two percent drop in infrastructure building, each of which were more than $4 million less than in the prior year. The rise in residential construction could not make up the loss in other areas.
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David Uchida Joins Kahana Feld’s Los Angeles Office as Partner
December 31, 2024 —
Linda Carter - Kahana FeldKahana Feld is pleased to announce that David M. Uchida recently joined the firm as a partner in the firm’s Los Angeles Office. He is a member of the firm’s General Liability group.
A client-focused and seasoned litigator, David has defended product manufacturers and suppliers in complex toxic tort and environmental litigation. David also has extensive experience defending clients in alleged asbestos, benzene, and silica exposure claims.
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Linda Carter, Kahana FeldMs. Carter may be contacted at
lcarter@kahanafeld.com
“Rip and Tear” Damage Remains Covered Under CGL Policy as “Accident”—for Now.
September 01, 2016 —
Michael Lindsay & Luke Mecklenburg – Snell & Wilmer Real Estate Litigation BlogThe Colorado Supreme Court has approved a settlement between the parties to an appeal of the 2012 Colorado Pool Systems v. Scottsdale Insurance Company Court of Appeals case, leaving that ruling intact. The ruling parses a fine line between uncovered costs of repairing defective work and covered costs of damage caused to nondefective work while repairing defective work. This nuanced opinion, which is now established Colorado law, is worth a second look.
In Colorado Pool Systems, Inc. v. Scottsdale Insurance Company, the Colorado Court of Appeals determined that so-called “rip and tear” damage caused by a construction professional to nondefective work while correcting defective work is covered as an “accident” under standard Commercial General Liability insurance language. 317 P.3d 1262 (Colo. App. 2012). A pool company excavated and built a rebar frame in order to construct a pool, but it hired a subcontractor to pour the concrete. An inspector later noticed that some of the rebar was too close to the surface, and the pool company agreed to demolish and replace the pool after an agent of its insurer represented that this loss would be covered. But the agent was wrong, the insurer denied coverage, and litigation ensued.
Reprinted courtesy of
Michael Lindsay, Snell & Wilmer and
Luke Mecklenburg, Snell & Wilmer
Mr. Lindsay may be contacted at mlindsay@swlaw.com
Mr. Mecklenburg may be contacted at lmecklenburg@swlaw.com
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