Spreading Cracks On FIU Bridge Failed to Alarm Project Team
May 20, 2019 —
Scott Judy & Richard Korman - Engineering News-RecordOn the morning of last year’s Florida International University pedestrian bridge collapse, when the engineer of record assured project team members that there were no safety risks related to cracks propagating across a part of the unusual single-truss structure, other project team members voiced mild concern, but no alarm. In hindsight, considering that the bridge had no inherent structural redundancy as it sat, incomplete, straddling a busy highway—and would suffer a sudden, catastrophic and deadly collapse just hours later—the team’s lack of urgency remains puzzling, say engineering experts contacted by ENR for comment.
Reprinted courtesy of
Scott Judy, ENR and
Richard Korman, ENR
Mr. Judy may be contacted at mailto:judys@enr.com
Mr. Korman may be contacted at kormanr@enr.com
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Rising Construction Disputes Require Improved Legal Finance
November 15, 2022 —
Apoorva Patel - Construction ExecutiveConstruction disputes are famously high stakes, and the industry is currently experiencing an uptick in the value and number of disputes resulting from contractual obligations and third-party or force majeure incidents. While this is not entirely surprising given COVID-19’s disruption of global markets and supply chains, the numbers are noteworthy.
For example, in 2020 alone, the International Chamber of Commerce (ICC)—the leading institution for construction disputes, partly because its clauses feature in many FIDIC standard form contracts—registered 194 construction arbitrations, and construction disputes now comprise over 20% of the ICC caseload.
In addition to the damage to business outcomes that the underlying disputes may present, parties can quickly spend many millions on legal fees and expenses, as well as technical experts and consultants, if and when those disputes progress through the courts or arbitration. According to Norton Rose’s 2020 Global Construction Disputes Report, the average construction dispute value rose sharply from $30.7 million in 2019 to $54.26 million in 2020.
Reprinted courtesy of
Apoorva Patel, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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When Brad Pitt Tried to Save the Lower Ninth Ward
February 18, 2019 —
Rob Walker - BloombergIn the months that followed Hurricane Katrina in 2005, there was much discussion about how to rebuild the New Orleans neighborhoods devastated by flooding. Some even questioned whether certain areas should be rebuilt at all: The city’s population would likely be smaller; perhaps its footprint should be revised? The Lower Ninth Ward, for instance—a working-class black neighborhood ravaged when a floodwall failed—might be a lost cause, some said, because it was so severely damaged.
Neighborhood residents and activists pushed back, insisting the Lower Nine deserved rebuilding. One of the most high-profile efforts to do so came from an unlikely figure: Brad Pitt. In 2007 the actor founded the Make It Right Foundation, a nonprofit whose mission was to build affordable housing to help Lower Nine residents come home. Attracting designs from prize-winning architects and committing to the highest energy-efficiency standards, Make It Right pledged to build 150 residences. As Pitt later wrote, the organization aimed to make “a human success story of how we can build in the future, how we can build with equality, how we can build for families."
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Rob Walker, Bloomberg
The United States Court of Appeals, Fourth Circuit, Finds Wrap-Up Exclusion Does Not Bar Coverage of Additional Insureds
February 18, 2020 —
Callie E. Waers - Florida Construction Law NewsThe United States Court of Appeals, Fourth Circuit, recently took a close look at the application of a “controlled insurance program exclusion” (wrap-up exclusion) to additional insureds on a commercial general liability policy. In Cont’l Cas. Co. v. Amerisure Ins. Co., 886 F.3d 366 (4th Cir. 2018), the Fourth Circuit examined the interplay of an enrolled party’s additional insured status on an unenrolled party’s commercial general liability (“CGL”) policy with a wrap-up exclusion. The court applied North Carolina law and found that pursuant to the policy’s own language, the exclusion only applied to the original named insured, not the additional insureds.
The case arose out of an injury incurred by an employee of a second-tier subcontractor during the construction of a hospital. On this particular project, the owner maintained a “rolling owner controlled insurance program” (wrap-up insurance program) in which all tiers of contractors were required to enroll, but enrollment was not automatic. The general contractor was enrolled in the owner’s wrap-up policy, but neither the steel manufacturer subcontractor nor its sub-subcontractor, the steel installation company, were enrolled. The underlying plaintiff was injured while he was an employee of the steel installation company, but he did not name his employer in his personal injury lawsuit.
The Cont’l Cas. Co. case was instituted by Continental Casualty Company (“Continental”) after it defended and settled the underlying plaintiff’s claims against its insured and additional insured, the steel manufacturer and general contractor, respectively. Continental sought to be reimbursed for the $1.7 million settlement and attorneys’ fees and costs incurred for the defense and indemnity of the underlying lawsuit.
Continental alleged that Amerisure Insurance Company (“Amerisure”) breached its duty to defend and Amerisure’s policy provided the primary coverage for both the general contractor and steel manufacturer, who were additional insureds on the Amerisure policy. Amerisure denied a duty to defend the additional insureds based on the presence of the wrap-up exclusion.
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Ryan M. Charlson, Cole, Scott & Kissane, P.A.Mr. Charlson may be contacted at
Ryan.Charlson@csklegal.com
Dust Obscures Eleventh Circuit’s Ruling on “Direct Physical Loss”
October 12, 2020 —
Walter J. Andrews, Michael S. Levine & Daniel Hentschel - Hunton Insurance Recovery BlogOn August 18, 2020, the United States Court of Appeals for the Eleventh Circuit affirmed a District Court’s 2018 ruling that Sparta Insurance Company need not cover a south Florida restaurant’s lost income and extra expenses resulting from nearby road construction. But, in doing so, the appeals court appears to deviate from even its own understanding of “direct physical loss” under controlling Florida law.
In the underlying coverage action, the insured, Mama Jo’s Inc. operating as Berries in the Grove, sought coverage under its “all risk” commercial property insurance policy for business income loss and incurred extra expenses caused by construction dust and debris that migrated into the restaurant.
Reprinted courtesy of
Walter J. Andrews, Hunton Andrews Kurth,
Michael S. Levine, Hunton Andrews Kurth and
Daniel Hentschel, Hunton Andrews Kurth
Mr. Andrews may be contacted at wandrews@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Hentschel may be contacted at dhentschel@HuntonAK.com
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Traub Lieberman Partner Adam Joffe Named to 2022 Emerging Lawyers List
February 01, 2022 —
Adam P. Joffe, Traub LiebermanTraub Lieberman is pleased to announce that Adam Joffe has been selected by his peers as a 2022 Emerging Lawyer in Leading Lawyers Magazine in the area of Insurance, Insurance Coverage & Reinsurance Law. Those selected as Emerging Lawyers have been identified by their peers to be among the TOP LAWYERS who are age 40 or younger unless they have practiced for no more than 10 years. Less than 2% of all lawyers licensed in each state have received the distinction of Emerging Lawyer.
Reprinted courtesy of
Adam P. Joffe, Traub Lieberman
Mr. Joffe may be contacted at ajoffe@tlsslaw.com
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William Lyon to Acquire RSI Communities
February 22, 2018 —
Dave Suggs - CDJ STAFFAccording to the article “William Lyon Agrees to Buy RSI Communities $460 million deal plants Lyon in Texas and adds to Inland Empire land holdings” published on the website Builder, the Newport Beach home builder is purchasing the Southern California and Texas home builder. This will be Lyon Homes’ first venture in the state of Texas.
RSI Communities works within both San Antonio and Austin, Texas as well as Southern California and the Inland Empire. It was founded by Todd Palmaer, a home building expert and Ron Simon, a building products expert and Newport Beach businessman. First time home buyers have been RSI’s main target.
President and CEO of RSI, Tod Palmaer is optimistic about the acquisition “We are delighted to have our company join the William Lyon Homes organization. We have a great deal of confidence in the William Lyon Homes platform and its executive management team, and believe that its acquisition of RSI Communities will add to Lyon’s continued success in its current and new markets.”
Pat Donahue who has almost 30 years of experience in home building, will serve as President to the Inland Empire Division. John Bohnen, RSI’s present Chief Operating Officer, will be the regional president in Texas. Mr. Bohnen has previously held executive positions with numerous home builders. William Lyon’s president and CEO Mark R. Zaist is excited about adding RSI’s key players to their team, and had this to say about the purchase. “The acquisition of RSI represents our most significant acquisition since our entry into Portland and Seattle with the Polygon Northwest Homes acquisition in 2014 and furthers our strategy of building in the strongest markets in the Western U.S., while also strengthening our pipeline in Southern California, as we continue our mission of being the premier Western Regional home builder.”
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Insurer Liable for Bad Faith Despite Actions of Insured Contributing to Excess Judgment
January 02, 2019 —
Tred R. Eyerly - Insurance Law HawaiiReversing the intermediate appellate court, the Florida Supreme Court held the insurer liable for bad faith despite imperfect actions by the insured. Harvey v. GEICO Gen. Ins. Co., 2018 Fla. LEXIS 1705 (Fla. Sept. 20, 2018).
Insured James Harvey was involved in an auto accident in which the other driver, 51 year old John Potts, was killed. Harvey's vehicle was registered in both his name and his business's name, and was covered under a $100,000 liability policy. Harvey reported the accident to his insurer, GEICO. The claim was assigned to a claims adjuster, Fran Korkus.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com