CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Economy in U.S. Picked Up on Consumer Spending, Construction

October 02, 2015 — Shobhana Chandra – Bloomberg
The world’s largest economy expanded more than previously forecast in the second quarter, boosted by gains in consumer spending and construction that may help the U.S. withstand a global slowdown. Gross domestic product rose at a 3.9 percent annualized rate, compared with a prior estimate of 3.7 percent, Commerce Department figures showed Friday in Washington. The median forecast of 76 economists surveyed by Bloomberg called for a 3.7 percent gain. Strong hiring, cheaper gasoline and higher home prices will probably sustain household purchases, which account for about 70 percent of the economy. That helps bolster Federal Reserve Chair Janet Yellen’s view that the U.S. will overcome any fallout from cooling overseas markets and swings in global financial and commodity markets. Read the court decision
Read the full story...
Reprinted courtesy of Shobhana Chandra, Bloomberg

---

Reversing Itself, West Virginia Supreme Court Holds Construction Defects Are Covered

July 31, 2013 — Tred Eyerly, Insurance Law Hawaii
The West Virginia Supreme Court previously held that construction defects were not covered under a CGL policy. The Court, however, reversed itself in Cherrington v. Erie Ins. Prop. & Cas. Co., 2013 W.Va. LEXIS 724 (W.V. June 18, 2013). The underlying complaint against the general contractor alleged various defects in the plaintiff’s recently constructed house, including an uneven concrete floor, water infiltration through the roof and chimney joint, a sagging support beam, and numerous cracks in the drywall walls and partitions throughout the house. Erie Insurance denied coverage. The insured general contractor sued, but the trial court found that faulty workmanship was not sufficient to give rise to an “occurrence.” The West Virginia Supreme Court reversed its prior rulings determining there was no coverage for construction defects. The court recognized its prior position was in the minority, as is Hawaii's position on coverage for construction defects. See Group Builders Inc. v. Admiral Ins. Co., 123 Haw. 142, 148, 231 P.3d 67, 73 (Haw. Ct. App. 2010). Now joining the majority position, the West Virginia Supreme Court found that defective workmanship causing property damage was an “occurrence” under a CGL policy. Further, the homeowner had demonstrated that she sustained "property damage" as a result of the allegedly defective construction of her home. The trial court also determined that the business risk exclusions barred coverage. Again, the West Virginia Supreme Court disagreed. Read the court decision
Read the full story...
Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

---

New York Court Finds No Coverage Owed for Asbestos Losses Because Insured Failed to Prove Material Terms

February 15, 2021 — Gregory S. Capps & Marianne E. Bradley - White and Williams LLP
In the long-tail insurance context, it is not unusual to have issues arise addressing “lost” or “missing” policies. In an opinion issued on January 22, 2021, a New York court ruled that an insurer did not owe coverage to its insured for underlying asbestos claims because the insured had failed to establish the material terms of a “lost” policy under which it sought coverage for the underlying claims. The lawsuit, Cosmopolitan Shipping Company, Inc. v. Continental Insurance Company,[1] arose out of a coverage dispute between Plaintiff Cosmopolitan Shipping Co., Inc. (Cosmopolitan) and its insurance carrier, Continental Insurance Company (CIC), in connection with bodily injury claims arising out of asbestos exposure. The case provides a good analysis of what an insured must do to establish coverage under a “lost” or “missing” policy. During and after World War II, Cosmopolitan chartered and operated a number of shipping vessels on behalf of United Nations Relief and Rehabilitation Administration (UNRRA). In the 1980s, seamen who had worked on board Cosmopolitan’s vessels between 1946 and 1948 filed lawsuits against Cosmopolitan seeking damages for injuries arising out of alleged exposure to asbestos on Cosmopolitan’s vessels. Cosmopolitan sought coverage from CIC for the claims, alleging that CIC had insured Cosmopolitan’s vessels during the relevant time period under a protection and indemnity policy issued to the UNRAA (the P&I Policy). Reprinted courtesy of Gregory S. Capps, White and Williams LLP and Marianne E. Bradley, White and Williams LLP Mr. Capps may be contacted at cappsg@whiteandwilliams.com Ms. Bradley may be contacted at bradleym@whiteandwilliams.com Read the court decision
Read the full story...
Reprinted courtesy of

---

Construction Contractor “Mean Tweets” Edition

June 04, 2024 — Garret Murai - California Construction Law Blog
Back in the day, if someone had a problem with you the rules of school yard jungle dictated that they had better tell it to your face or you had the right to call them out on it. That, of course, was back then. These days, with social media seemingly everywhere (e.g., Yelp, Twitter, Facebook, etc.), if someone has a problem with you they tell you . . . as well as the rest of the world . . . to your digital face. Jimmy Kimmel has even made it a “thing” with his celebrity “Mean Tweets” segments. In Paglia & Associates Construction, Inc. v. Hamilton, 98 Cal.App.5th 318 (2023), homeowner Vanessa Hamilton was sued by her contractor Paglia & Associates Construction, Inc. doing business as Protech Construction after she posted critical comments to her blog and on Yelp about work performed by Paglia at her home. The Paglia Case In or about 2016, after a tree fell on her house, Hamilton’s insurer, Safeco, recommended Paglia to perform the repairs. Paglia and Hamilton entered into a repair contract in 2016 but Paglia did not finish the work until sometime in 2017 claiming that the repair was extensive because Hamilton’s circa 1923 home was in poor condition and current building codes required extensive reconstruction. Read the court decision
Read the full story...
Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

---

Jury Trials: A COVID Update

July 18, 2022 — Joshua Lane - Ahlers Cressman & Sleight PLLC
JURY TRIALS. Budd v. Kaiser Gypsum Co., Inc., — Wn. App. 2d –, 505 P.3d 120 (Wash. Ct. App. 2022). (1) Courts must ensure that juries are randomly selected to provide a fair and impartial jury. (2) While the Sixth and Fourteenth Amendments prohibit the systematic exclusion of distinctive groups from jury pools, Washington Courts’ COVID-19 policy to excuse people who were ages 60 and older and did not wish to report for duty was not a “systematic” exclusion. Raymond Budd developed mesothelioma after working with a drywall product called “joint compound” from 1962 to 1972. He sued Kaiser Gypsum Company, Inc. and others for damages, contending that the company’s joint compound caused his illness. A jury returned a verdict in Budd’s favor and awarded him nearly $13.5 million. Kaiser appeals, claiming (1) insufficient randomness in the jury-selection process, (2) erroneous transcription of expert testimony, (3) lack of proximate causation, (4) lack of medical causation, (5) an improper jury instruction on defective design, (6) improper exclusion of sexual battery and marital discord evidence, (7) improper admission of post-exposure evidence, (8) improper exclusion of regulatory provisions, and (9) a failure to link its product to Budd’s disease. The Court of Appeals, Division 1, affirmed the verdict in favor of Budd. Read the court decision
Read the full story...
Reprinted courtesy of Joshua Lane, Ahlers Cressman & Sleight PLLC
Mr. Lane may be contacted at joshua.lane@acslawyers.com

---

Texas Mechanic’s Lien Law Update: New Law Brings a Little Relief for Subcontractors and a Lot of Relief for Design Professionals

June 07, 2021 — Tracey L. Williams - Peckar & Abramson, P.C.
After several recent failed attempts to amend Chapter 53 of the Texas Property Code (the “Texas Mechanic’s Lien Statute”), it appears that long awaited relief may, at least in part, be on the horizon for subcontractors in Texas. Additionally, architects, engineers, and surveyors also appear to be significant benefactors of House Bill 2237 (“HB 2237”). Under existing law, many subcontractors often fail to perfect their mechanic’s liens under the Texas Mechanic’s Lien Statute because of complex notice requirements which must be sent for every month in which labor or material are furnished. And architects, engineers and surveyors currently have no lien rights unless they have a direct contractual relationship with the owner of the project. Effective January 1, 2022, HB 2237 amends the Texas Mechanic’s Lien Statute in several significant respects. Subcontractor Impacts HB 2237 impacts subcontractors in the following ways:

1. Establishes uniformity in the notice requirements by imposing the same notice obligation on all subcontractors regardless of with whom they have contracted. Rather than sending one notice to the owner and one to the general contractor, the single notice now required must be sent to both simultaneously. Additionally, HB 2237 prescribes the form of the notice to be given under both Section 53.056 (notice of derivative claimant) and 53.057 (notice of contractual retainage).

Read the court decision
Read the full story...
Reprinted courtesy of Tracey L. Williams, Peckar & Abramson, P.C.
Ms. Williams may be contacted at twilliams@pecklaw.com

---

BWB&O Senior Associate Kyle Riddles and Associate Alexandria Heins Obtain a Trial Victory in a Multi-Million Dollar Case!

May 01, 2023 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Bremer Whyte Brown & O’Meara, LLP is excited to share that Newport Beach Senior Associate Kyle Riddles and Associate Alexandria Heins obtained a significant trial victory on behalf of their client in a multi-million dollar dispute stemming from the construction of a commercial expansion project at a beachfront resort. The owner of the resort alleged that the general contractor was responsible for a significant delay to the completion of the expansion project. The general contractor filed a cross-complaint against BWB&O’s client in an attempt to pass through the delay claims to BWB&O’s client. The general contractor’s delay expert alleged a total 441 days of delay to the completion of the project. A significant portion of the delay was apportioned to BWB&O’s client, for which it faced substantial contractual damages. Senior Associate Kyle Riddles expertly crossed key witnesses and obtained testimony that was extremely favorable to its client. Read the court decision
Read the full story...
Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

---

The Overlooked Nevada Rule In an Arena Project Lawsuit

August 04, 2016 — Scott Van Voorhis – Engineering News-Record
When crunching the numbers on the construction wrap-up program for the T-Mobile Arena project outside Las Vegas, insurance broker Aon Risk Services South allegedly failed to take into account a Nevada workers’ compensation rule, one of many intricate features of the state’s workers’ compensation regulations. Others had apparently missed this aspect of the rule, too. “Many business owners and executives are unaware of this regulation and … are paying more premium to their workers’ compensation carriers than they should be,” warned Bradley Rowe, a commercial insurance broker in Las Vegas, in a blog post in 2014. Two years later, the prime contractor joint venture on the completed $230-million arena is battling in court with Aon, charging the broker with professional negligence and breach of contract, according to court documents filed in U.S. District Court in Nevada. Read the court decision
Read the full story...
Reprinted courtesy of Scott Van Voorhis, Engineering News-Record
You may send questions or comments to enr.com@bnpmedia.com

---