California Supreme Court Allows Claim Under Unfair Competition Statute To Proceed
October 16, 2013 —
Tred Eyerly — Insurance Law HawaiiThe California Supreme Court determined that insurance practices violating the state's Unfair Insurance Practices Act (UIPA) could support a claim under the state's unfair competition law (UCL). Zhang v. Superior Court, 57 Cal. 4th 353 (2013).
Zhang purchased a CGL policy from California Capital Insurance Company. She sued California Capital in a dispute over coverage for fire damage to her commercial property. The complaint included causes of action for breach of contract, breach of the implied covenant of good faith and fair dealing, and violation of the UCL. In her UCL claim, Zhang alleged that California Capital had "engaged in unfair, deceptive, untrue, and/or misleading advertising" by promising to provide timely coverage in the event of a compensable loss, when it had no intention of paying the true value of the insureds' covered claims.
Zhang specifically alleged unreasonable delays causing deterioration of her property; withholding of policy benefits; refusal to consider cost estimates; misinforming her as to the right to an appraisal; and falsely telling her mortgage holder that she did not intend to repair the property, resulting in foreclosure proceedings.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
3D Printing Innovations Enhance Building Safety
October 07, 2019 —
Mahmut Ekenel & Melissa Sanchez - Construction ExecutiveThe mention of 3D printing alone is enough to get people excited, often conjuring images of a desktop console that can download and create three dimensional objects such as prototypes, or mechanical parts. And yet, in recent years the technology has given way to a slight impatience, as people begin to wonder how and when it will have a direct impact on both their lifestyles and their businesses.
The construction industry has been quick to take advantage of these innovations, and the effects are tangible, especially regarding building safety. The 3D construction technology allows for several key advantages in terms of faster construction times, uncompromised quality of construction and lower costs—allowing for affordable dwellings to be quickly built for people in need.
These advantages also lead to safety improvements during the building process. The ability to accelerate construction time without requiring an increase in labor results in a fewer construction-related workplace injuries and a reduction in material waste, making it an environmentally friendly construction method as well.
ICC-Evaluation Service (ICC-ES), a subsidiary of the International Code Council (ICC) which develops model codes and standards (i.e. International Building Code, International Residential Code) and delivers a wide array of building safety services, has taken the lead on developing acceptance criteria to address building code compliance of 3D printed construction. Currently, 3D construction technology is not within the provisions of the International Building Code (IBC) or International Residential Code (IRC). The acceptance criteria introduces new compliance measures for interior and exterior 3D printed concrete walls (with and without structural steel reinforcement), load-bearing and non-load-bearing walls, and shear walls in one-story, single-unit, residential dwellings. The 3D walls are constructed by printing two outer layers of 3D concrete and then filling the core with 3D concrete to form a solid wall.
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Mahmut Ekenel & Melissa Sanchez, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Ekenel may be contacted at mekenel@icc-es.org
Ms. Sanchez may be contacted at msanchez@icc-es.org
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Court Says KBR Construction Costs in Iraq were Unreasonable
August 27, 2014 —
Beverley BevenFlorez-CDJ STAFFMike Bosse of Bernstein Shur, analyzed a case involving Kellogg Brown and Root Services Inc. (KBR) and the U.S. Army for services that KBR provided during Operation Iraqi Freedom, according to JDSupra Business Advisor: “The court case involved KBR’s construction of dining facility services near Mosul, Iraq under a cost-plus fee arrangement. Under this contractual arrangement, all allowable costs were reimbursed by the government plus the contractor was paid an additional fee.”
KBR first started on a prefabricated metal dining hall that would serve 2,500 people, but part way into building they were told to stop construction and to instead start on a new reinforced concrete building that would serve almost three times as many people.
“After construction was finished, a defense contract auditing agency suspended some of the payments to KBR and instead of the $12.5 million it expected to receive, KBR was paid only $6.7 million,” reported JDSupra Business Advisor. “After trial, the court concluded KBR did not meet its burden to show the costs it incurred were reasonable under the circumstances.”
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Domtar Update
June 11, 2014 —
Robert M. Caplan – White and Williams LLPOn May 29, 2014, the Pennsylvania Supreme Court granted allocatur—i.e., the permission to appeal—in the controversial subrogation case, Liberty Mutual Ins. Co. v. Domtar Paper Co., 77 A.3d 1282 (Pa. Super. Ct. 2013). In its order granting the relief to Liberty Mutual, a workers’ compensation insurer, the Supreme Court set forth the narrow issue to be decided on appeal: “Does Section 319 of the Pennsylvania Workers’ Compensation Act, 77 P.S. § 671, allow the employer/insurer to step into the shoes of the insured employee to subrogate against the tortfeasor?”
In Domtar, Liberty Mutual was caused to incur approximately $35,000 in compensation benefits which it paid on behalf of George Lawrence, an employee of Liberty Mutual’s insured, for injuries he sustained in a work-related accident. Mr. Lawrence chose not to file an independent personal injury lawsuit. As a result, in order to recover its lien interests, Liberty Mutual sued the third parties responsible for causing Mr. Lawrence’s work-related injuries directly, having become subrogated to the rights of Mr. Lawrence by virtue of Liberty Mutual’s workers’ compensation expenditure on his behalf.
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Robert M. Caplan, White and Williams LLPMr. Caplan may be contacted at
caplanr@whiteandwilliams.com
No Coverage for Faulty Workmanship Based Upon Exclusion for Contractual Assumption of Liability
August 06, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe Supreme Court for West Virginia determined the policy's contractual assumption exclusion barred coverage for the general contractor based upon claims of faulty workmanship. J.A. St & Assocs. v. Bitco Gen. Ins. Corp., 2019 W. Va. LEXIS 205 (May 1, 2019).
J.A. Street & Associates, Inc. entered a contract with the developer, Thundering Herd Development, L.L.C., to build a commercial shopping center on seventy-eight acres of land. Street agreed to oversee the site preparation for the development and the construction of many of the buildings. Thundering Herd retained an engineering firm, S&ME, Inc. to do geotechnical exploration and to provide advice regarding land preparation for the shopping center. Thundering Heard also entered an agreement with the Target Corporation to construct a store on a pad to be prepared at the shopping center.
Street hired subcontractors to prepare the site by grading the land and installing fill material. A slope was constructed at the rear of the proposed Target site, but it failed, causing a landslide, damage to the pad, and damage to adjacent property owned by a third party. Thundering Heard incurred $721,875 in additional costs to repair this slope, reconstruct the Target site, and compensate the neighbor for the damage to the adjacent property.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
John Aho: Engineer Pushed for Seismic Safety in Alaska Ahead of 2018 Earthquake
February 06, 2019 —
Christine Kilpatrick - Engineering News-RecordThe son of a pioneer bush pilot in Alaska, structural engineer John Aho spent decades working toward earthquake preparedness. He helped found a key seismic safety commission in the state, and serves on the City of Anchorage’s geotechnical advisory group. The fruits of his labor were clearly demonstrated on the morning of Nov. 30, when the magnitudes 7.0 and 5.7 earthquakes that struck the city caused limited structural damage, partly due to stringent building requirements.
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Christine Kilpatrick - ENRMs. Kilpatrick may be contacted at
kilpatrickc@enr.com
U.S. Codes for Deck Attachment
July 16, 2014 —
Beverley BevenFlorez-CDJ STAFFTed Cushman in Big Builder explained how “decks often collapse when the ledger attachment to the main house fails.” Now, codes require “positive attachment…a solid connection with closely spaced lag screws (or better yet, bolts)." Cushman demonstrated this pictorially in a detail. He also stated to make sure to fasten securely, remove siding, and install flashing.
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Did the Building Boom Lead to a Boom in Construction Defects?
May 10, 2013 —
CDJ STAFFThe height of the building boom is now almost a decade past but some are saying that the results of the rush to get housing built during the profitable market are still with us. The Wall Street Journal reports on the rise of construction defect lawsuits as these homes have aged, some not too gracefully. One couple thought they were hearing acorns falling on their roof. They were less happy to find that the source of the noises was their house slumping on one end, leading to cracks throughout the house. Their neighbors had similar problems and they are now part of a lawsuit against the builder. The expenses to repair the houses could total millions of dollars.
Some have suggested that during the building boom both building and inspection standards were more lax in order to keep up with the pace of building. Criterium Engineers, a building-inspection firm, estimates that 17% of new homes built in 2006 had at least two significant defect, while only 15% of those built in 2003 fit these criteria. Meanwhile others attribute the rise in construction defect lawsuits to home inspector and construction defect attorneys looking for new territories to exploit.
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