West Coast Casualty Construction Defect Seminar Announced for 2014
October 30, 2013 —
CDJ STAFFOrganizers describe the even as “America’s largest, America’s favorite, America’s best construction defect seminar.” And in 2014, they will hold the twenty-first of these annual construction defect seminars. As for size, last year’s event comprised 1,614 attendees, travelling not only from across the county, but from outside the United States as well.
West Coast Casualty is beginning to line up its speakers for next May’s seminar. The organizers are asking speakers to submit proposed topics by November 25 and the list will be finalized on December 15. The theme for the event will be “Back to Business … Working Smarter … Not Harder.” While West Coast Casualty is looking for topics that focus on the central theme, they are also interested in presentations on emerging trends in construction defect litigation.
In addition to seminars, there will be booths for many of the companies in the construction defect resolution industry, demonstrating products and services of use to professionals in the field. This gives attendees a chance for less-structured interaction than is possible within a seminar.
Continuing education credits were granted for the 2013 seminar by a lengthy list of organizations, which included the Bar Associations of 22 states and the Departments of Insurance of 35. The 2014 West Coast Casualty Construction Defect Seminar will be held May 15 and 16 at the Disneyland Hotel and Resort.
During the seminar comes the awarding of the prestigious Jerrold S. Oliver Award of Excellence, named in honor of the late Judge Jerrold S. Oliver, who was known for his skills as a mediator. In 2013, the “Ollie” was awarded to Margie Luper in acknowledgement of her contributions to the betterment of the construction defect resolution field. The recipients of the Jerrold S. Oliver Award of Excellence are selected by the votes of about 6,000 industry professionals.
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EEOC Sues Schuff Steel, J.A. Croson in New Racial Harassment Cases
October 24, 2022 —
Richard Korman - Engineering News-RecordThe U.S. Equal Employment Opportunity Commission has renewed its effort to combat discrimination and harassment in the construction industry, filing in September four federal lawsuits against construction employers, including major specialty contractors such as erector Schuff Steel and mechanical contractor J.A. Croson. Each has been charged with violating federal laws against racial harassment in the workplace.
Reprinted courtesy of
Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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Coverage for Collapse Ordered on Summary Judgment
November 21, 2022 —
Tred R. Eyerly - Insurance Law HawaiiA collapsed floor in a restaurant was found to be covered. J&J Fish on Center Street, Inc. v. Crum & Forster Spec. Ins. Co., 2022 U.S. Dist. LEXIS 163661 (D. Wis. Sept. 12, 2022).
J&J Fish rented property from Vision. Vision was obligated to keep the premises insured under an all-risk policy. Vision was also responsible for maintaining and repairing the property "including the slab flooring exterior walls of the premises." Vision never obtained insurance on the building, but J&J Fish secured a commercial property policy from Crum & Forster.
On May 29, 2020, approximately 25% of the building's slab floor, the section beneath the walk-in cooler, collapsed into the crawl space below. Dr. Daniel Wojnowski inspected the crawl space and observed overall dampness as well as a pool of water in the space. He concluded that the collapse occurred because the steel support beams and steel elements of the floor corroded after prolonged exposure to moisture. Based on this report, Crum & Forster denied coverage. J&J Fish sued and the parties moved for summary judgment.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
OH Supreme Court Rules Against General Contractor in Construction Defect Coverage Dispute
October 30, 2018 —
Theresa A. Guertin - Saxe Doernberger & Vita, P.C.On October 9, 2018, the Ohio Supreme Court issued a decision in Ohio Northern University v. Charles Construction Services, Inc., Slip Op. 2018-Ohio-4057, finding that a general contractor was not entitled to defense or indemnity from its CGL insurer in a construction defect suit brought by a project owner post-project completion. With this decision, Ohio has solidified its place amongst a diminishing number of states, including Pennsylvania and Kentucky, which hold that there is no coverage for defective construction claims because those losses do not present the level of fortuity required to trigger CGL coverage. This places Ohio amongst the worst in the country on this issue at a time when numerous states have abandoned old precedent and moved towards a policyholder friendly analysis.
Ohio Northern University (“ONU”) hired Charles Construction Services, Inc. (“CCS”) to construct the University Inn and Conference Center, a new hotel and conference center on their campus in Ada, Ohio. CCS purchased CGL insurance from Cincinnati Insurance Company (“CIC”) insuring the project. Following completion of the project, ONU sued CCS alleging defects in the construction of the completed project, including allegations that windows improperly installed by one subcontractor led to damage to walls built by another subcontractor. CIC agreed to defend CCS under a reservation of rights but intervened in the action between ONU and CCS to pursue a declaratory judgment that it had no obligation to defend or indemnify its insured for the alleged losses.
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Theresa A. Guertin, Saxe Doernberger & Vita, P.C.Ms. Guertin may be contacted at
tag@sdvlaw.com
City Wonders Who’s to Blame for Defective Wall
February 14, 2013 —
CDJ STAFFA wall along a beach trail in Treasure Island, Florida is cracking, and opinions are divided over it. One city commissioner, Alan Bildz, said “it looks like somebody was doing their first concrete job.” An engineer from the design firm described it as a “cosmetic issue.” Bildz was overruled on his suggestion that the wall be torn down and rebuilt.
In later sections of the wall, expansion joints seem to have remedied the problem. But while the architect has offered to pay for filling the cracks with epoxy and polyurethane caulk, there’s still the question of adding expansion joints to the project. City Commissioner Phil Collins noted that the city has allocated more than $50,000 to add expansion joints, yet he feels the city should not be responsible for the expense, noting that the design could be considered defective, and under the terms of the contract, “the contractor shall bear the cost.”
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CA Supreme Court: Right to Repair Act (SB 800) is the Exclusive Remedy for Residential Construction Defect Claims – So Now What?
January 31, 2018 —
Steven M. Cvitanovic & Omar Parra - Publications & InsightsA torrent of alerts have been flooding e-mail inboxes regarding the California Supreme Court’s decision in
McMillin v. Superior Court, to reverse the Liberty Mutual Insurance Company v. Brookfield Crystal Cove LLC (2013) case, but with little discussion about the practical effects of the ruling. This alert will discuss how this ruling affects litigation of SB 800 Claims and Builders.
Background on Liberty Mutual Case
In 2002, the California Legislature enacted comprehensive construction defect litigation reform referred to as the Right to Repair Act (the “Act”). Among other things, the Act establishes standards for residential dwellings, and creates a prelitigation process that allows builders an opportunity to cure the construction defects before being sued. Since its enactment, however, the Act’s application has been up for debate. Most notably, in
Liberty Mutual Insurance Company v. Brookfield Crystal Cove LLC (2013), the California Court of Appeal for the Fourth District held the Act was the exclusive remedy only in instances where the defects caused only economic loss, and that homeowners could pursue other remedies in situations where the defects caused actual property damage or personal injuries.
Reprinted courtesy of
Steve Cvitanovic, Haight Brown & Bonesteel LLP and
Omar Parra, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com
Mr. Parra may be contacted at oparra@hbblaw.com
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Professional Services Exclusion Bars Coverage After Carbon Monoxide Leak
September 09, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Illinois Appellate Court affirmed the trial court's dismissal of the insured's complaint after damage caused by a leak of carbon monoxide caused bodily injury. Allied Design Consultants, Inc. v. Pekin Ins. Co., et al., 2024 Ill. Ct. App. LEXIS 1433 (June 18, 2024).
Carbon monoxide leaked in a building addition to a middle school, prompting 23 lawsuits to be filed against the insured, Allied Design Consultants, Inc. Allied was retained to perform certain architectural services to the building addition. Pekin Insurance Company had issued a business owners liability policy and a commercial umbrella liability policy to Allied. Pekin denied a defense to Allied based upon the policies' professional services exclusions.
Allied filed suit for declaratory relief against Pekin. Pekin filed a counterclaim, seeking a declaratory judgment that it had no duty to defend. The parties filed cross-motions for summary judgment. The parties agreed the allegations in the personal injury complaint filed by Ferguson were typical and representative of the allegations in the other 22 underlying lawsuits.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Crime Policy Insurance Quotes Falsely Represented the Scope of its Coverage
July 13, 2020 —
Brian J Clifford - Saxe Doernberger & VitaAn Indiana businessman found out the hard way how far his insurance company was willing to go to avoid paying a claim after it misrepresented the coverage of a crime policy it sold to him. The quote for the policy indicated that it included coverage for losses resulting from computer hacking. Despite this representation, when the policyholder’s bank accounts were hacked, the insurer denied coverage on the ground that there was no provision for hacking coverage in the policy. Fortunately, the Indiana Court of Appeals recognized the insured’s right to argue before a jury that the insurer’s quotes falsely represented the scope of its coverage.
In Metal Pro Roofing, LLC v. Cincinnati Ins. Co., Richard Cornett, principal of Metal Pro Roofing, LLC and Cornett Restoration, LLC (the “LLCs”), purchased a Cincinnati Insurance Company CinciPlus Crime XC+ Policy (the “Policy”). At the time Mr. Cornett purchased this coverage, and during all subsequent renewals, Cincinnati issued insurance quotes that stated:
Cincinnati can insure your money and securities while at your premises, inside your bank and even off site in the custody of a courier. While you’ve taken precautions to protect your money and securities, you run the risk of loss from employees, robbers, burglars, computer hackers and even physical perils such as fire.
Give yourself peace of mind with Cincinnati’s crime coverage to insure the money and securities you worked so hard to earn.
Crime Expanded Coverage (XC®)Plus Endorsement $125.00.
(Emphasis added.)
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Brian J Clifford, Saxe Doernberger & VitaMr. Clifford may be contacted at
bjc@sdvlaw.com