No Concrete Answers on Whether Construction Defects Are Occurrences
February 14, 2013 —
CDJ STAFFAaron Mandel and Stevi Raab of Sedgwick Law write Construction Defect Coverage Quarterly addressing the question of “whether defective construction constitutes an ‘occurrence’ (and therefore may be covered) under liability insurance policies.” They note that some courts have held that construction defects are not an occurrence but instead are the “natural consequence of performing substandard work.” Other courts conclude that while construction defects are not occurrences, “the resulting damage may be covered because it was fortuitous and unintended.” And, finally, other courts have concluded that “defective construction work itself is accidental and the inured rarely expects construction defects.” Mandel and Raab put forth that “these decisions essentially provide insured with huge, unintended and unfair windfalls – performance bonds for basically no premium.”
Legislatures have also looked at this issue, passing laws that mandate that construction defects are occurrences. These are all fairly recent and the courts have yet to address these laws, and Mandel and Raab note that “it is unclear what their ultimate effect on the ‘occurrence’ issue will be.” They do not expect the laws to end litigation over whether construction defects are occurrences.
Finally, they discuss what the ultimate results of these court decisions and laws will be. Insurers might write more policy exclusions, or increase premiums, or even cease insuring construction.
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Project Delivery Methods: A Bird’s-Eye View
November 01, 2021 —
Levi W. Barrett, Nathan A. Cohen & Stewart Shurtleff - ConsensusDocsFor centuries the ability to construct sophisticated structures has been the yardstick for measuring civilizations. Naturally, as our knowledge and capacity to build has evolved and developed over the ages, the methods of project delivery have similarly progressed.
From Design-Bid-Build to CM-at-Risk and Design-Build to Integrated Project Delivery, each method developed to fit a very specific need—but each carries its own set of inherent risks and rewards. In this article we explore key aspects and differences among the various delivery methods that are commonly used in today’s construction industry, and provide guidance related to the obligations and risk profiles of the parties involved. Ideally, contractors and construction managers may refer to the advice provided herein when determining whether a proposed delivery method properly fits the requirements of the project under consideration.
Reprinted courtesy of
Levi W. Barrett, Peckar & Abramson, P.C.,
Nathan A. Cohen, Peckar & Abramson, P.C. and
Stewart Shurtleff, Peckar & Abramson, P.C.
Mr. Barrett may be contacted at lbarrett@pecklaw.com
Mr. Cohen may be contacted at ncohen@pecklaw.com
Mr. Shurtleff may be contacted at sshurtleff@pecklaw.com
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Hydrogen—A Key Element in the EU’s Green Planning
December 07, 2020 —
Matthew Oresman & Henrietta Worthington - Gravel2Gavel Construction & Real Estate Law BlogGettyImages-1150744671-300x225Hydrogen is gaining global recognition for its potential as a key player in the energy transition. Investors and businesses are exploring opportunities across multiple sectors, including energy, manufacturing, transport and finance. According to a report by Bloomberg, the current pipeline for global hydrogen projects is worth an estimated $90 billion. The EU is not going to be left behind, with a focal point of its Green Deal being on hydrogen.
The EU’s executive branch (the European Commission or EC) has confirmed its commitment to increasing hydrogen projects across the bloc, with a priority on green hydrogen. Its Hydrogen Strategy, released in March, states that hydrogen is “essential to support the EU’s commitment to reach carbon neutrality by 2050 and for the global effort to implement the Paris Agreement while working towards zero pollution.”
The EU’s executive branch (the European Commission or EC) has confirmed its commitment to increasing hydrogen projects across the bloc, with a priority on green hydrogen. Its Hydrogen Strategy, released in March, states that hydrogen is “essential to support the EU’s commitment to reach carbon neutrality by 2050 and for the global effort to implement the Paris Agreement while working towards zero pollution.”
Reprinted courtesy of
Matthew Oresman, Pillsbury and
Henrietta Worthington, Pillsbury
Mr. Oresman may be contacted at matthew.oresman@pillsburylaw.com
Ms. Worthington may be contacted at henrietta.worthington@pillsburylaw.com
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Corps Issues Draft EIS for Controversial Alaskan Copper Mine
March 27, 2019 —
Pam Radtke Russell - Engineering News-RecordA proposed copper and gold mine in Alaska could impact up to 12,000 acres of wetlands as well as local fisheries but would help meet a worldwide demand for copper, according to the draft environmental impact statement on the Pebble Mine in the Bristol Bay area of Alaska.
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Pam Radtke Russell, ENRMs. Russell may be contacted at
Russellp@bnpmedia.com
California Construction Bill Dies in Committee
July 21, 2011 —
CDJ STAFFAB 20, which its sponsor, Linda Halderman (R-Fresno), stated would discourage class action lawsuits against builders and protect jobs in the construction industry, has died in committee. Although the Business Journal reported in June that Haldeman was promoting the bill during a talk in her district and the bill is still on her web site, the California Assembly reports that the bill failed in committee on March 15, 2011. It is possible that the bill could be reconsidered, but the Assembly Committee on Judiciary sees the bill as responding to issues quieted by SB 800 which gives builders the right to repair alleged defects before any suit can be filed.
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AB 1701 – General Contractor Liability for Subcontractors’ Unpaid Wages
December 01, 2017 —
Alex Baghdassarian, Eric M. Gruzen, & Kerri Sakaue – Peckar & Abramson, P.C.Contractors will soon find themselves on the frontline of wage disputes on projects if laborers working on behalf of their subcontractors or vendors are unpaid. On October 14, 2017, Governor Jerry Brown signed into law AB 1701, which will allow laborers to seek direct compensation from the general contractors on private projects, if their wages remain unpaid.
The legislative mandate requires direct contractors—defined as contractors who have a direct contractual relationship with an owner—to assume liability for any debt incurred by a subcontractor, at any tier, for a wage claimant’s performance of labor included in the subject of the original contract between the general contractor and the owner. The California bill will apply to all private construction contracts entered into on or after January 1, 2018. Previously, all laborers could maintain a mechanic’s lien claim against private property, without needing to serve a 20-day preliminary notice, but there was no statutory obligation on the “direct contractors” to reimburse the laborers their unpaid wages.
Reprinted courtesy of Peckar & Abramson, P.C. attorneys
Alex Baghdassarian,
Eric M. Gruzen and
Kerri Sakaue
Mr. Baghdassarian may be contacted at abaghdassarian@pecklaw.com
Mr. Gruzen may be contacted at egruzen@pecklaw.com
Ms. Sakaue may be contacted at ksakaue@pecklaw.com
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Dave McLain included in the 2023 edition of The Best Lawyers in America
March 06, 2023 —
David M. McLain – Colorado Construction LitigationColleagues and friends:
I am pleased to share with you that I have been recognized in the 2023 edition of The Best Lawyers in America for my work in construction law. This honor comes as a surprise and is a testament to the dedication and hard work of my team at Higgins, Hopkins, McLain & Roswell, LLC.
As many of you know, my practice focuses on the defense of complex construction lawsuits on behalf of developers, general contractors, and other construction professionals. I have been fortunate enough to work with some of the largest home builders and general contractors in the state and country, regional and custom builders, and numerous insurance carriers over the years. Through these experiences, I have been able to gain valuable insights into the construction industry, and I am proud to be considered an expert in this field.
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Toddler Crashes through Window, Falls to his Death
January 24, 2014 —
Beverley BevenFlorez-CDJ STAFFTwo-year old Alijah Glenn fell 17 stories to his death after crashing through “a floor-to-ceiling window” at the Crystal Tower apartments in East Cleveland, Ohio, on January 13th, according to The Plain Dealer. Solandra Wallace, East Cleveland’s building and housing manager, told The Plain Dealer that “the city inspects the building whenever a complaint is filed and does not have regular inspections.” The apartment complex “was built in 1966 and would have to adhere to that era's building code standards,” according to the article.
The Plain Dealer reports that three complaints have been filed at the Crystal Tower since 2010. A resident complained in 2012 that “her apartment was falling apart, causing water damage and emitting a foul odor,” however, by the time an inspector arrived the ceiling was being fixed. In 2011, an “unspecified roof leak” turned out to be “condensation from a hot pipe.” An elevator was reported inoperable in 2010, however the claim was deemed “invalid” since the elevator worked when inspectors arrived.
The Cuyahoga County Medical Examiner ruled Glenn’s death accidental.
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