CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

DOD Contractors Receive Reprieve on Implementation of Chinese Telecommunications Ban

September 14, 2020 — Lori Ann Lange & Sabah Petrov - Peckar & Abramson
In our previous alert, we discussed the expansion on the Section 889(a)(1)(B) ban on certain Chinese telecommunications equipment and services to contractors and subcontractors who use the equipment and services in their internal operations. Effective August 13, 2020, federal agencies were prohibited from procuring, obtaining, extending, or renewing a contract with a contractor that uses equipment, systems, or services that use covered telecommunications equipment or services as a substantial or essential component or as critical technology, unless an exception applies or a waiver is granted. Since then we have received feedback from contractors, complaining about the difficulties in determining whether their internal operations use covered telecommunications equipment and services and the need for additional time to become compliant or even obtain enough information to submit a waiver request. Now it seems that Department of Defense (DoD) contractors and subcontractors may be getting a temporary reprieve. The DoD Under Secretary for Acquisition and Sustainment requested a waiver that would allow DoD to continue to execute procurement actions providing supplies, equipment, services, food, clothing, transportation, care, and support necessary to execute the DoD mission. The Director of National Intelligence granted the temporary waiver until September 30, 2020 pending a further review of waiver request. Depending upon the outcome of this additional review, the temporary waiver may be continued beyond September 30, 2020 if it is in the national security interests of the United States. Reprinted courtesy of Lori Ann Lange, Peckar & Abramson and Sabah Petrov, Peckar & Abramson Ms. Lange may be contacted at llange@pecklaw.com Ms. Petrov may be contacted at spetrov@pecklaw.com Read the court decision
Read the full story...
Reprinted courtesy of

---

Concurrent Causation Doctrine Applies Where Natural and Man-made Perils Combine to Create Loss

January 19, 2017 — Tred R. Eyerly – Insurance Law Hawaii
The Florida Supreme Court resolved a conflict between the District Courts in applying the Concurrent Causation Doctrine where there were multiple causes creating the loss. Sebo v. Am. Home Assur. Co., 2016 Fla. LEXIS 2596 (Fla. Dec. 1, 2016). After purchasing his home, John Sebo procured an "all risks" homeowners policy provided by American Home Assurance Company (AHAC). Shortly after Sebo purchased the property, water began to intrude the home during rainstorms. Major water leaks occurred. It became clear that the home suffered from major design and construction defects. In October 2005, Hurricane Wilma further damaged the home. AHAC denied coverage for most of the claimed losses. It provided $50,000 for mold. The residence could not be repaired and was eventually demolished. Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

---

Insurer Fails to Establish Prejudice Due to Late Notice

October 17, 2022 — Tred R. Eyerly - Insurance Law Hawaii
Summary judgment awarded to the insurer was reversed because the insurer presented no evidence of prejudice caused by untimely notice. Perez v. Citizens Prop. Ins. Corp., 2022 Fla. App. LEXIS 5435 (Fla. Ct. App. Aug. 10, 2022). The insureds' home suffered water damage due to Hurricane Irma around September 10, 2017. A claim was submitted to Citizens on November 27, 2018. Citizens had an independent adjuster inspect, but then denied the claim due to untimely notice. The insureds sued and Citizens moved for summary judgment. Citizens argued it was prejudiced because it could not confirm the cause of the loss or the property damage attributed to it. The court agreed that the insureds' notice was untimely. The insureds were notified by tenants renting the property that leaks appeared around the time of Hurriane Irma. The policy language, however, placed the burden to rebut the presumption of prejudice caused by late notice on Citizens. Whether the insurer was prejudiced was a question of fact. Citizens failed to demonstrate any prejudice due to the untimely notice. Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

---

Alabama Still “An Outlier” on Construction Defects

October 14, 2013 — CDJ STAFF
While many state Supreme Courts have determined that faulty construction work can be an occurrence under a standard commercial liability policy, the Alabama Supreme Court has taken the contrary view. Writing on the Kilpatrick Townsend blog, Carl A. Salisbury and Edmund M. Kneisel point out that the decision makes Alabama “an outlier,” and they ask, “how much longer will the outliers hold out?” They note that in the underlying construction defect case, “the arbitrator awarded $3 million in compensatory damages to the homeowners because of improperly installed flashing; improperly installed brick; the lack of weep holes in the brick; improperly installed doors and windows; improper construction of the upper porches; faulty construction of the roof; improper installation of a bathtub.” They summarize: “the house must have leaked like a colander.” When the insurer denied coverage, the contractor sued. The insurer argued that “the CGL policy form does not cover construction-related acts or omissions because such acts are not an insured ‘occurrence.’” Mr. Salisbury and Mr. Kneisel point out that “the Alabama Supreme Court agreed.” The problem they see is that “if there is no insurance for any intentional act, then insurance is simply a rip-off — it covers nothing.” They quote Justice Benjamin Cardozo to this effect: “To restrict insurance to cases where liability is incurred without fault of the insured would reduce indemnity to a shadow.” Their argument is that the Alabama decision was not the “correct position,” as exemplified by recent decisions from West Virginia, North Dakota, Connecticut and Georgia. The case “was a prime opportunity for the Alabama Supreme Court to leave the ranks of the outliers and join the majority view.” Read the court decision
Read the full story...
Reprinted courtesy of

---

Hawaii Supreme Court Says Aloha to Insurers Trying to Recoup Defense Costs From Policyholders

January 02, 2024 — Lara Degenhart Cassidy & Yosef Itkin - Hunton Insurance Recovery Blog
The Hawaii Supreme Court emphatically rejected insurer efforts to seek reimbursement of defense costs absent a provision in the policy providing for such reimbursement in St. Paul Fire & Marine Insurance Company v. Bodell Construction Company, No. SCCQ-22-0000658, 2023 WL 7517083, (Haw. Nov. 14, 2023). The state high court’s well-reasoned decision rests on bedrock law regarding insurance policy construction and application, follows the nationwide trend of courts compelling insurers to satisfy their contractual obligations in full, and should carry great weight as other jurisdictions continue to debate the same issue. In Bodell, the Hawaii Supreme Court joined the swelling ranks of courts recognizing that an insurer may not use a reservation of rights to create the extra-contractual “right” to recoup already paid defense costs for a claim on which the insurer ultimately owes no coverage. See, e.g., Am. & Foreign Ins. Co. v. Jerry’s Sport Ctr., Inc., 2 A.3d 526 (Pa. 2010). Other jurisdictions, such as California, will permit an insurer to seek reimbursement from a policyholder for defense costs incurred in defending claims later determined to be uncovered. See Buss v. Superior Court, 16 Cal.4th 35 (1997) (holding insurers have a right to reimbursement of defense costs incurred for noncovered claims). Reprinted courtesy of Lara Degenhart Cassidy, Hunton Andrews Kurth and Yosef Itkin, Hunton Andrews Kurth Ms. Cassidy may be contacted at lcassidy@HuntonAK.com Mr. Itkin may be contacted at yitkin@HuntonAK.com Read the court decision
Read the full story...
Reprinted courtesy of

---

How Concrete Mistakes Added Cost to the Recent Frederick Douglass Memorial Bridge Project

December 16, 2023 — Richard Korman - Engineering News-Record
A disputed insurance claim heading for trial next year over construction of Washington, D.C.'s two-year-old Frederick Douglass Memorial Bridge revolves around the design-build joint venture's problems in 2019 with concrete voids and honeycombing. The flaws required demolition and rebuilding costing millions of dollars. Reprinted courtesy of Richard Korman, Engineering News-Record Mr. Korman may be contacted at kormanr@enr.com Read the full story... Read the court decision
Read the full story...
Reprinted courtesy of

---

No Coverage for Building's First Collapse, But Disputed Facts on Second Collapse

January 10, 2018 — Tred R. Eyerly – Insurance Law Hawaii

While building's first collapse was not covered, there were disputed facts regarding the second collapse, leading to a reversal of the order granting summary judgment to the insurer on both collapses. Intergroup Int'l Ltd. v. Cincinnati Ins. Cos, 2017 Ohio app. LEXIS 5099 (Ohio Ct. App. Nov. 22, 2017). Intergroup bought a building after it was inspected. While leaks on the roof were repaired and a roof truss that was sagging was replaced, the inspector found the roof to be in good shape.

Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii

Mr. Eyerly may be contacted at te@hawaiilawyer.com

---

Residential Interior Decorator Was Entitled to Lien and Was Not Engaging in Unlicensed Contracting

August 04, 2021 — David Adelstein - Florida Construction Legal Updates
Residential construction disputes can sometimes take nasty turns. This is not attributed to one specific reason, but a variety of factors. Sometimes, there are not sophisticated contracts (or contracts at all). Sometimes, relationships and roles get blurred. Sometimes, parties try to skirt licensure requirements. Sometimes, a party is just unreasonable as to their expectations. And, sometimes, a party tries to leverage a construction lien to get what they want. In all disputes, a party would certainly be best suited to work with construction counsel that has experience navigating construction disputes. An example of a construction dispute that took a nasty turn involving an interior decorator is SG 2901, LLC v. Complimenti, Inc., 2021 WL 2672295 (Fla. 3d DCA 2021). In this case, a condominium unit owner wanted to renovate his apartment. He hired an interior decorator to assist. As his renovation plans became more expansive, the interior decorator told him he would need to hire a licensed contractor and architect. The interior decorator arranged a meeting with those professionals and, at that meeting, they were hired by the owner and told to deal directly with the interior decorator, almost in an owner’s representative capacity since the owner traveled a lot. The interior decorator e-mailed the owner about status and requested certain authorizations, as one would expect an owner’s representative to do. At the completion of the renovation job, the owner did not pay the interior decorator because he was unhappy with certain renovations. The interior decorator recorded a construction lien and sued the owner which included a lien foreclosure claim. There was no discussion of the contracts in this case because, presumably, contracts were based on proposals, were bare-boned, or were oral. Read the court decision
Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

---