CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

American Arbitration Association Revises Construction Industry Rules and Mediation Procedures

April 08, 2024 — Dennis Cavanaugh & Larry Grijalva - Construction Law Zone
The American Arbitration Association (AAA), one of the longest-standing and experienced alternative dispute resolution (ADR) administrators, has unveiled a significant update to its Construction Industry Rules and Mediation procedures. This update, last revised in 2015, became effective March 1, 2024. Changes to the AAA Construction Industry Rules are significant as these rules are incorporated by default in American Institute of Architects standard construction forms, which are widely used in the industry. Advancements in remote access technology drive a substantial number of new changes. Others are designed to streamline the arbitrator appointment process and certain prehearing procedures and to make arbitration more cost-efficient by enhancing the arbitrator’s case management authority. Some of the more notable changes are: Fast Track F-1: The limit for cases eligible for AAA’s Fast Track Procedures has been increased from $100,000 to $150,000 so long as no claim or counterclaim exceeds that amount. Reprinted courtesy of Dennis Cavanaugh, Robinson & Cole and Larry Grijalva, Robinson & Cole Mr. Cavanaugh may be contacted at dcavanaugh@rc.com Mr. Grijalva may be contacted at lgrijalva@rc.com Read the court decision
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It’s Not Just the Millennium Tower That’s Sinking in San Francisco

December 06, 2021 — Beverley BevenFlorez – CDJ Staff
Much has been reported over the years regarding the sinking Millennium Tower in San Francisco, but now new reports are emerging regarding sinking sidewalks in the Mission Bay neighborhood and images from space demonstrating that the entire Downtown San Francisco area may also be sinking. According to CBS SF BayArea, some sidewalks in Mission Bay have sunk “as much as a foot and more in some spots.” The neighborhood is built upon a landfill, which requires the buildings to be anchored to bedrock—the streets and sidewalks, however, are the property owners’ responsibility. Engineers for the UCSF Medical Center at Mission Bay “took a proactive approach.” CBS SF BayArea alleges, however, that many surrounding condo developers did not. SFGate reported that the sidewalk issue may be difficult to solve “as any fixes to the surface only serve to increase the weight of the pavement, speeding its descent into the landfill.” It may not just be sidewalks and streets that are sinking. U.S Geological Survey research geophysicist Tom Parsons “says earth-based and space-based observations confirm the entire downtown area around it is sinking as well.” According to the NBC Bay Area story, Parsons “estimated settlement of three inches across the entire Bay Area.” The Millennium Tower weighs an estimated 686 million pounds, making it the third heaviest building in San Francisco. However, it is the only one that’s significantly leaning. San Francisco building officials told NBC Bay Area that there are plans in place “to shore up the seawall that protects the Embarcadero.” Read the full story at CBS SF BayArea... Read the full story at SFGate... Read the full story at NBC Bay Area... Read the court decision
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Pennsylvania Superior Court Fires up a Case-By-Case Analysis for Landlord-Tenant, Implied Co-Insured Questions

February 03, 2020 — Gus Sara - The Subrogation Strategist
In Joella v. Cole, 2019 PA Super. 313, the Superior Court of Pennsylvania recently considered whether a tenant, alleged by the landlord’s property insurance carrier to have carelessly caused a fire, was an implied co-insured on the landlord’s policy. The court found that the tenant was an implied co-insured because the lease stated that the landlord would procure insurance for the building, which created a reasonable expectation that the tenant would be a co-insured under the policy. Since the tenant was an implied co-insured on the policy, the insurance carrier could not maintain a subrogation action against the tenant. This case confirms that Pennsylvania follows a case-by-case approach when determining whether a tenant was an implied co-insured on a landlord’s insurance policy. The Joella case stems from a fire at an apartment building in Northampton County, Pennsylvania. The landlord’s property insurance carrier paid the landlord $180,000 to repair the damages resulting from the fire. In March 2018, the insurer brought a subrogation action against Annie Cole, a tenant in the building, alleging that Ms. Cole’s negligent use of an extension cord caused the fire. Ms. Cole raised the affirmative defense that she was an implied co-insured on the landlord’s insurance policy. The subrogating insurer filed a partial motion for summary judgment seeking to dismiss Ms. Cole’s defense. In response, Ms. Cole filed a cross motion for partial judgment, arguing that because the lease specified that the landlord would maintain fire insurance for the building, there was a reasonable expectation that she would be a co-insured on that policy. The trial court found in favor of Ms. Cole, holding that the landlord’s insurer could not maintain a subrogation action against her because she was an implied co-insured of the landlord’s insurance policy under the terms of the lease. The landlord’s insurer filed an appeal with the Superior Court of Pennsylvania. Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

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Illinois Joins the Pack on Defective Construction as an Occurrence

December 16, 2023 — Anna M. Perry - Saxe Doernberger & Vita, P.C.
Illinois joins the majority of states finding “property damage that results inadvertently from faulty work can be caused by an ‘accident’ and therefore constitute an ‘occurrence’.” The Illinois Supreme Court’s ruling in Acuity v. M/I Homes of Chicago, LLC1 (“Acuity v. M/I Homes”) is the first high court ruling in Illinois on this critical coverage issue for contractors. M/I Homes of Chicago, LLC (“M/I Homes”) constructed a townhome development. After completion, water entered the townhomes resulting in interior water damage. The townhome owners’ association filed suit against M/I Homes alleging it, or its subcontractors, caused the damage because it used defective materials, conducted faulty workmanship, and failed to comply with applicable building codes (the “Underlying Action”). Read the court decision
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Reprinted courtesy of Anna M. Perry, Saxe Doernberger & Vita, P.C.
Ms. Perry may be contacted at APerry@sdvlaw.com

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Florida Appellate Courts Holds Underwriting Manuals are Discoverable in Breach of Contract Case

February 14, 2022 — Andrea DeField & Adriana A. Perez - Hunton Insurance Recovery Blog
Recently, Florida’s First District Court of Appeals handed down a victory for policyholders when it affirmed a Circuit Court’s order compelling an insurer to produce its underwriting manual in a breach of contract action. In People’s Trust Insurance Co. v. Foster, No. 1D21-845 (Fla. 1st DCA Jan. 26, 2022), the policyholder, Mr. Foster, filed a breach of contract claim against his insurer, People’s Trust, after People’s Trust failed to pay his insurance claim for damage caused to Mr. Foster’s home due to a leaking water pipe. People’s Trust denied Foster’s claim because “Foster’s pipe damage predated the policy’s inception.” During discovery Foster requested People’s Trusts’ underwriting manual(s) in effect at the time his policy was issued or renewed. People’s Trust objected to the request. In response, Foster filed a motion to compel production of the underwriting manual(s). After a hearing, the Circuit Court granted Foster’s motion and People’s Trust sought a writ of Certiorari from the First District Court of Appeal to quash the order compelling production. Reprinted courtesy of Andrea DeField, Hunton Andrews Kurth and Adriana A. Perez, Hunton Andrews Kurth Ms. DeField may be contacted at adefield@HuntonAK.com Ms. Perez may be contacted at pereza@HuntonAK.com Read the court decision
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Recent Amendments and Caselaw Affecting the Construction Industry in Texas

April 19, 2022 — Frederick H. Wen - Gordon Rees Scully Mansukhani, LLP
Here are some recent Texas legislative amendments and Texas Supreme Court cases from the past year concerning the construction industry in Texas. 1) Recent Legislative Amendments Concerning the Construction Industry: a) The Texas Legislature throws a “Spear” in the Lonergan Doctrine to reduce general/subcontractor liability for owner-provided plans and specs: Forty-nine out of the fifty states follow the Spearin Doctrine under which owners warrant the accuracy and sufficiency of owner-provided plans and specs in construction contracts. On the other hand, for over a century, Texas has followed the Lonergan Doctrine under which, absent contractual language to the contrary, a general contractor/subcontractor, instead of the owner, bears the risk of deficiencies in owner-provided design documents, once they started construction. Texas Senate Bill 219, which went into effect on September 1, 2021, finally changed that and brought Texas in line with the rest of the country, with a few exceptions. Read the court decision
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Reprinted courtesy of Frederick H. Wen, Gordon Rees Scully Mansukhani, LLP
Mr. Wen may be contacted at fhwen@grsm.com

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City Council Authorizes Settlement of Basement Flooding Cases

March 12, 2014 — Beverley BevenFlorez-CDJ STAFF
Last July in Dearborn, Michigan, “torrential rain” caused flooding to hundreds of basements, according to Press & Guide. Of the 250 claims filed by residents, “the city determined that about 150 were caused by defects in its water or sewer lines. About 125 of the claims to be settled are for more than $3,000; 26 are for $3,000 or less.” Press & Guide reported that “Attorney Tarek Baydoun, who is representing some clients whose basements flooded, asked about recourse for ‘botched’ claims, and was concerned because the city hasn’t released the list of those with whom it is settling.” The Mayor, Jack O’Reilly, stated that the law department would release the list to the city council. Read the court decision
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Manhattan Condo Resale Prices Reach Record High

September 03, 2014 — Oshrat Carmiel – Bloomberg
Prices for previously owned Manhattan condominiums rose to a record last month even as an increase in the supply of units eased competition among buyers. An index of resale prices climbed 1.1 percent from June to reach the highest level in data going back to 1995, StreetEasy.com, a New York real estate website, said in a report today. The inventory of condos on the market grew 5.4 percent from a year earlier, the biggest annual gain since October 2009. The market is still tight, with the number of available condos about 16 percent below the five-year average for Manhattan. That will continue to drive up prices, according to StreetEasy, which projects a 0.4 percent increase for August. Read the court decision
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Reprinted courtesy of Oshrat Carmiel, Bloomberg
Ms. Carmiel may be contacted at ocarmiel1@bloomberg.net

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