Hunton Partner Michael Levine Appointed to Law360’s 2024 Insurance Authority Property Editorial Advisory Board
May 20, 2024 —
Hunton Insurance Recovery BlogWashington, DC-based partner
Michael Levine has been recognized for his extensive experience and insights into emerging and legacy property and business interruption insurance coverage issues by being selected to Law360’s 2024 Editorial Advisory Board for Insurance Authority Property. As a member of the board, Mike will provide feedback on Law360’s coverage of property issues and expert insight on how best to shape future reporting of issues affecting businesses across all industry sectors.
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Hunton Andrews Kurth llp
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Construction Defect Suit Can Continue Against Plumber
June 28, 2013 —
CDJ STAFFThe Kansas Court of Appeals has reversed a district court ruling that a homeowner’s suit against a plumber was barred under the economic loss doctrine. However, subsequently the Kansas Supreme Court “refused to extend the economic loss doctrine to homeowner claims against construction contractors.” In light of this, the appeals court sent the case back to the lower court.
The case, Coker v. Siler, was brought by Gregory Coker, who had bought a home from J.M.C. Construction. JMC purchased an unfinished house from Michael D. Siler in August 2006. As part of the completion process, John M. Chaney, the president of JMC, installed the water line into the residence. Mr. Coker bought the home in September 2007.
Starting in April 2008, Mr. Coker noticed that his water bills had increased. Mr. Coker could find “no evidence of a leak above the ground,” so he contacted JMC Construction. Mr. Chaney had R.D. Johnson Excavation dig up the water line, after which a gap was discovered that had been allowing water to flow under the foundation. In addition to the higher water bills, an engineer determined that the water “resulted in cracks in the wall and uneven doors.”
Mr. Coker sued, Siler, J.M.C. and Chaney for negligence, breach of implied warranty, strict liability, and breach of express warranty. J.M.C. and Chaney requested a summary judgment. The court dismissed Mr. Coker’s claims of negligence, strict liability, and breach of implied warranty on the basis of the economic loss doctrine, rejecting a petition from Mr. Coker to reconsider. The court, however, allowed Mr. Cocker to proceed with his claim of express warranty. In December, 2011, Mr. Coker accepted an offer from J.M.C. of $40,000.
Mr. Coker then appealed the summary judgment, making the claim that while the court’s decision was based on Prendiville v. Contemporary Homes, Inc., this has now been overruled by David v. Hett. In this case, “the court ultimately found the rationale supporting the economic loss doctrine failed to justify a departure from a long time of cases in Kansas that establish a homeowner’s right to assert claims against residential contractors.” The appeals court concluded that “although the district court properly relied on the law as it existed at the time of its ruling, the intervening change in the law necessarily renders the conclusion reached by the district court erroneous as a matter of law.”
In sending this case back to the district court, the appeals court noted that the lower court will need to determine if the “defendant accused of negligence did not have a duty to act in a certain manner towards the plaintiff,” in which case “summary judgment is proper. Mr. Coker claims that Mr. Chaney did indeed have this duty.
Further, Mr. Coker claimed that Mr. Chaney had a duty arising out of implied warranty. The appeals court questioned whether the district court properly applied the economic loss doctrine to this claim, because despite being president of the construction company, Mr. Chaney “in his individual capacity as a plumber performing work for Coker, was not a party to the J.M.C. contract.” The court found that “Coker’s claim that Chaney breached an implied duty within such a contract fails as a matter of law.”
However, the court did uphold Cocker’s claim of a contractor liability for injury to a third party, noting that “Chaney owed Coker a legal duty independent of Coker’s contact with J.M.C.” The appeals court left it to the district court to determine if the defect that caused the damage was present when the house left J.M.C.’s possession.
The case was reversed and remanded “with directions to reinstate Coker’s claim of negligence against Chaney in his individual capacity as a plumber.”
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Cause Still Unclear in March Retaining Wall Collapse on $900M NJ Interchange
June 07, 2021 —
Stephanie Loder - Engineering News-RecordA probe continues by construction engineer Hardesty and Hanover LLC into what caused the late March collapse of a retaining wall that is part of one of New Jersey's largest roadbuilding projects—the already late-running effort called Direct Connection, which aims to untangle the convoluted interchange of north-south I-295 and east-west Route 42 in Camden County.
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Stephanie Loder, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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Resulting Loss From Faulty Workmanship Covered
May 20, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Washington Supreme Court found there was coverage for resulting loss despite the original faulty contraction, an exclusion in the policy. Gardens Condominium v. Farmers Ins. Exchange, 544 P.3d 499 (Wash. 2024).
Farmers issued a policy to Gardens Condominium providing coverage for loss or damage caused by a "Covered Cause of Loss." "Covered Cause of Loss" was defined as any risk of direct physical loss. However, a loss was not covered if it was caused by an excluded event. The policy further provided that damage was caused by an excluded event if that event "initiates a sequence of events that results in loss or damage, regardless of the nature of any intermediate or final event in that sequence." The policy excluded coverage for faulty, inadequate, or defective design, specifications, workmanship, repair, construction, or renovation. The faulty workmanship exclusion also contained a resulting loss exception: "[I]f loss or damage caused by a Covered Cause of Loss results, we will pay for that resulting loss or damage."
Gardens found damage to the building that was caused by faulty design and construction of the building's roof. There was insufficient interior vents and the design of the rafters and joists prevented need ventilation Water vapor condensed on the underside of the roof sheathing, causing damage. Gardens redesigned and repaired the roof assembly to increase ventilation and eliminate condensation by installing sleepers on top of the joists.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Withholding Payment or Having Your Payment Withheld Due to Disputes on Other Projects: Know Your Rights to Offset
January 04, 2021 —
Christopher C. Broughton, Jones Walker LLP - ConsensusDocsIntroduction
The right to offset refers to the common sense ability to reduce or eliminate your payment obligations to a party who owes you money on another contract. With offsets, common law largely tracks common sense. The right of offset is recognized by statute and court decisions in many states as well as under federal law and the U.S. Bankruptcy Code. The right to offset can also be established in the contract or subcontract.
But like many things that may seem simple, the right to offset can easily become complex. This article provides an overview of the extent and limits of the right to offset varies from state to state and with federal government contracts about the extent and limits of the right of offset. Construction trust fund statutes add another layer of complications.
These variations may not be obvious or intuitive, but they have a tremendous impact on your right to get paid or your right to withhold payment. Because of the variations, you must always confirm the law applicable to your contract or subcontract, which may not be where the project or you are located.
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Christopher C. Broughton, Jones Walker LLPMr. Broughton may be contacted at
cbroughton@joneswalker.com
Certificates Of Merit For NC Lawsuits Against Engineers And Architects? (Still No)(Law Note)
April 22, 2019 —
Melissa Dewey Brumback - Construction Law in North CarolinaCertificates of Merit are documents intended to show that a true issue exists with a professional’s work, prior to that person being sued. While North Carolina does require that a person suing a medical provider first have the matter reviewed by a professional (and attest to that in the Complaint), there is no requirement for any review prior to a lawsuit against an architect, engineer, or surveyor. Thus, anyone can file a lawsuit against an engineer/architect/surveyor without first having their case eyeballed reviewed by another professional.
Over the years, there have been attempts at adding a Certificate of Merit requirement to design professional lawsuits. See, for example, examples here: from
2005; from
2007; from
2011; and from
2013.
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
California Supreme Court Declines to Create Exception to Privette Doctrine for “Known Hazards”
September 13, 2021 —
Tracy D. Forbath - Lewis BrisboisIn Gonzalez v. Mathis (Aug. 19, 2021, S247677) __ Cal.5th___, the California Supreme Court reversed an appellate decision holding that a landowner may be liable to an independent contractor, or the contractor’s workers, for injuries resulting from “known hazards,” as running contrary to the Privette doctrine.
In Gonzalez, the contractor, who specialized in washing skylights, slipped and fell while accessing the landowner’s particularly hard to reach skylight from a narrow retaining wall that was allegedly covered in loose gravel and slippery. (Slip opn., p. 3.) While the trial court initially granted the landowner summary judgment pursuant to the Privette doctrine, the appellate court reversed and held that the landowner had a responsibility to take reasonable safety precautions where there was a known safety hazard on the landowner’s premises. (Id. at p. 6.) Whether the landowner could have taken various safety precautions also raised disputed issues of material fact precluding summary judgment. (Ibid.)
However, the California Supreme Court concluded that no broad, third exception to the Privette doctrine lies; “unless a landowner retains control over any part of the contractor’s work and negligently exercises that retained control in a manner that affirmatively contributes to the injury [citation], it will not be liable to an independent contractor or its workers for an injury resulting from a known hazard on the premises.” (Slip opn., p. 2.)
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Tracy D. Forbath, Lewis BrisboisMs. Forbath may be contacted at
Tracy.Forbath@lewisbrisbois.com
Construction Manager Has Defense As Additional Insured
September 03, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe court found that the construction manager was an additional insured under the contractor's policy. Turner Constr. Co. v. Navigators Ins. Co., 2015 N.Y. Misc. LEXIS 2704 (N.Y. Sup. Ct. July 23, 2015).
The owner hired two contractors, Enclos Corp. and Five Star Electric Corp. In their separate contracts with the owner, each contractor agreed to procure a CGL policy naming the owner and a person identified as the construction manager as additional insureds. Travelers was Enclos's insurer, and Navigators Insurance Company was Five Star's insurer.
Turner was hired to "provide pre-construction services and construction management services for the Project."
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com