COLUMBUS OHIO BUILDING EXPERT
DIRECTORY AND CAPABILITIES

A Win for Policyholders: Court Finds Flood Exclusion Inapplicable to Plumbing Leaks Caused by Hurricane Rainfall

October 21, 2024 — Kelly A. Johnson & Damian S. Barquin - Saxe Doernberger & Vita, P.C.
A recent decision by a federal court helps clear the path to coverage for property owners this hurricane season. The Court deemed one property policy’s flood exclusion inapplicable to bar coverage for water damage from backed-up drainage and overflow caused by excessive rainfall. The case, styled G.E.M.S. Partners LLC v. AmGUARD Ins. Co., — F.Supp. 3d —, No. CV 22-1664, 2024 WL 3568932 (D.N.J. July 29, 2024)), involved a familiar dispute between the insured and insurer following damage to covered property after a named storm’s heavy rainfall. Here, G.E.M.S. Partners LLC (“Insured”) obtained a commercial property policy from AmGUARD Insurance Company (“AmGUARD”) to cover three neighboring buildings in Union, New Jersey. In September 2021, intense rainfall from Hurricane Ida overwhelmed the local infrastructure and sewer system, leading to water leakage from plumbing fixtures at the insured property. To secure coverage under its AmGUARD policy, the Insured wisely relied on its “Water Back-Up and Sump Overflow Endorsement” (“Back-Up/Overflow Endorsement”). Under this endorsement, AmGUARD promised to “pay for ... damage ... caused by ... water ... which backs up through or overflows or is otherwise discharged from a sewer.”1 Indeed, a plumber that inspected the buildings following Hurricane Ida described the root cause of the water damage as a “back up” of “sewer ... water.”2 Reprinted courtesy of Kelly A. Johnson, Saxe Doernberger & Vita, P.C. and Damian S. Barquin, Saxe Doernberger & Vita, P.C. Ms. Johnson may be contacted at KJohnson@sdvlaw.com Mr. Barquin may be contacted at DBarquin@sdvlaw.com Read the court decision
Read the full story...
Reprinted courtesy of

---

Design Professional Liens: A Blueprint

March 12, 2015 — Garret Murai – California Construction Law Blog
If you work in the construction industry in California you’re likely familiar with mechanics liens. But there’s one other type of lien available on construction projects in California: The design professional lien. So, here’s a blueprint of what you need to know. What is a design professional lien? A design professional lien, like a mechanics lien, creates a security interest in real property for services rendered by a design professional prior to commencement of construction. If the design professional is not paid, the design professional can file a lawsuit to foreclose on the design professional lien to have the property sold and the proceeds from the sale used to satisfy the amount of the design professional lien. Read the court decision
Read the full story...
Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

---

Cities' Answer to Sprawl? Go Wild.

December 06, 2021 — Chris Malloy - Bloomberg
In a neighborhood of right-angled stone, stucco and brick buildings not far from Milan’s central train station, two thin towers stand out. Green and shaggy-edged, they look like they’re made of trees. In fact, they’re merely covered in trees — hundreds of them, growing up from the towers’ staggered balconies, along with 11,000 perennial and covering plants, and roughly 5,000 shrubs. The greenery-festooned towers, called the Bosco Verticale, or Vertical Forest, are residential buildings in a broader-than-usual sense. The 18- and 26-story structures are “a home for trees that also houses humans and birds,” according to the website of architect Stefano Boeri, who has built tree-covered buildings elsewhere and is working on similar projects in Antwerp, Belgium, and Eindhoven in the Netherlands. The Bosco Verticale is an example of urban rewilding, the growing global trend of introducing nature back into cities. There are consequences to the pace of today’s urban growth, which is the fastest in human history, including loss of biodiversity, urban heat islands, climate vulnerability, and human psychological changes. The U.S. Forest Service estimates that some 6,000 acres of open, undeveloped space become developed each day. Globally, past urban planning decisions like the prioritization of the car have given rise to cities that, but for scattered parks, tend to be divorced from nature. Rewilding aims to make cities better and more sustainable for people, plants, and animals. Read the court decision
Read the full story...
Reprinted courtesy of Chris Malloy, Bloomberg

---

“Made in America Week” Highlights Requirements, Opportunities for Contractors and Suppliers

August 14, 2023 — Sarah Barney & Amy Hoang - The Construction Seyt
On July 21, 2023, President Biden designated July 23-29, 2023, as “Made in America Week.” This proclamation builds on the Biden Administration’s efforts to bolster domestic manufacturing through evolving policies attached to government funds that require contractors and suppliers to feature varying amounts of U.S.-made content in their products and services. To commemorate this week, here is a refresher on “Made in America” and what it means for government contractors and suppliers. What does “Made in America” mean? Under Executive Order 14005, the Administration defined “Made in America” laws as “all statutes, regulations, rules, and Executive Orders relating to Federal financial assistance awards or Federal procurement, including those that refer to “Buy America” or “Buy American,” that require, or provide a preference for, the purchase or acquisition of goods, products, or materials produced in the United States, including iron, steel, and manufactured goods offered in the United States.” Generally speaking, “Made in America” or “Buy American” requirements refer to:

1. The Buy American Act (BAA) of 1933, establishing domestic sourcing preferences for unmanufactured and manufactured articles, materials, and supplies procured by the federal government for public use, including those used on federal construction contracts;

Reprinted courtesy of Sarah Barney, Seyfarth and Amy Hoang, Seyfarth Ms. Barney may be contacted at sbarney@seyfarth.com Ms. Hoang may be contacted at ahoang@seyfarth.com Read the court decision
Read the full story...
Reprinted courtesy of

---

Genuine Dispute Summary Judgment Reversed for Abuse of Discretion and Trial of Fact Questions About Expert Opinions

July 27, 2020 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Fadeeff v. State Farm General Ins. Co. (No. A155691, filed 5/22/20 ord. pub. 6/8/20), a California appeals court held that triable issues of fact and the trial court’s failure to address a request for a continuance precluded summary judgment for an insurer under the genuine dispute doctrine. In Fadeeff, the policyholders made a claim to State Farm for smoke damage to their home from the 2015 Valley Fire in Hidden Valley Lake, California. With State Farm’s approval, the insureds retained the restoration company, ServPro, to assist with smoke and soot mitigation. State Farm documented smoke and soot on the interior walls, ceilings and carpeting, and on all exterior elevations, including on the deck and handrail. State Farm made a series of payments on the claim totaling about $50,000. The insureds then hired a public adjuster and submitted supplemental claims for further dwelling repairs and additional contents replacement, totaling approximately $75,000. State Farm responded by using its own independent adjuster to investigate, who was neither licensed as an adjuster, nor as a contractor. State Farm also retained forensic consultants for the structure and the HVAC system, but neither the independent adjuster nor the consultants were aware that State Farm had an internal operation guide for the use of third-party experts in handling first party claims, which guidelines were therefore not followed. In addition, the consultants made allegedly superficial inspections, with one attributing smoke and soot damage to other sources of combustion, including the insureds’ exterior propane barbecue, an internal wood fireplace and wood stove and candles that had been burned in the living room. None of the consultants asked the insureds when they had last used any of the sources of combustion. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
Read the full story...
Reprinted courtesy of

---

2018 Spending Plan Boosts Funding for Affordable Housing

April 11, 2018 — Emily Bias – Gravel2Gavel Construction & Real Estate Law Blog
On March 23, President Trump signed into law the Consolidated Appropriations Act, 2018, a $1.3 trillion spending package that includes a 12.5% increase in low-income housing tax credit allocations over the next four years, along with funding increases for several affordable housing programs. This is welcome news to affordable housing developers who have been facing funding gaps as a result of reductions in the corporate tax rate under the Tax Cuts and Jobs Act enacted in late 2017, which led to reduced pricing from equity investors. Read the court decision
Read the full story...
Reprinted courtesy of Emily Bias, Pillsbury Winthrop Shaw Pittman LLP
Ms. Bias may be contacted at emily.bias@pillsburylaw.com

---

California Court Invokes Equity to Stretch Anti-Subrogation Rule Principles

June 18, 2019 — Gus Sara & William L. Doerler - The Subrogation Strategist
In Western Heritage Ins. Co. v. Frances Todd, Inc. 2019 Cal. App. Lexis 299, the Court of Appeals of California, First Appellate District, addressed whether a commercial condominium association’s carrier could subrogate against the tenants (aka lessees) of one of its member unit owners. After examining the condominium association’s declarations, as well as the lease terms between the owner and the lessees, the court held that the association’s carrier could not subrogate against the lessees because they were implied co-insureds on the policy. To reach its decision, the court explained that an insurer steps into the shoes of its insured, not the party with whom it is in privity. Although the first-party property portion of the association’s insurance policy did not, as required by the association’s declarations, have the owner listed as an additional named insured, the court held that it would be inequitable to treat the association as the sole insured for purposes of determining Western Heritage’s right to bring a subrogation action. In Western Heritage, William R. de Carion d/b/a Surfwood Properties (de Carion or Lessor), owned a commercial unit within a multi-unit commercial building. The building was managed by the East Shore Commercial Condominiums Owners’ Association (the Association). As a unit owner, de Carion was a member of the Association. The Association’s Declarations of Codes, Covenants and Restrictions (CC&Rs) required the Association to procure fire insurance for the commercial units by adding the unit owners as additional named insureds. The CC&Rs also prohibited owners and their “tenants” from procuring their own fire insurance policies for the premises. In 2013, de Carion leased his commercial space to Frances Todd, Inc. d/b/a The Wooden Duck, Eric Todd Gellerman and Amy Frances Feber (Lessees). Reprinted courtesy of Gus Sara, White and Williams LLP and William L. Doerler, White and Williams LLP Mr. Sara may be contacted at sarag@whiteandwilliams.com Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com Read the court decision
Read the full story...
Reprinted courtesy of

---

Pandemic Magnifies Financial Risk in Construction: What Executives Can Do to Speed up Customer Payments

August 23, 2021 — Lori J. Drake - Construction Executive
Construction businesses are waiting longer for payment in 2021, according to the newly released 2021 Construction Cash Flow and Payment Report conducted by Levelset. According to respondents, only 10% of construction businesses get paid in full, which is a 75% drop from 2020, and only 9% get paid on time, which is a drop of 60% over last year. The report, based on a survey of 764 construction professionals, illustrates that financial risk in the industry flowed down the payment chain. General contractors were four times more likely to get paid in 30 days, and 50% more likely to get paid in full. However, 20% of subcontractors, suppliers and other second-tier companies were kept waiting more than 60 days to collect payment. Reprinted courtesy of Lori J. Drake, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
Read the full story...
Reprinted courtesy of

---