Construction Defect Claims Not Covered
May 10, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe court found that the insured's negligent acts causing damage to only the structure of the home it built were not covered under the CGL policy. Westfield Ins. Co. v. Zaremba Builders II LLC, 2022 U.S. Dist. LEXIS 36189 (N.D. Ill. March 2, 2022).
Zaremba contracted to build a house for the Vrdolyak Trust. After completion of the home, the occupants found many problems, including painting defects such as bubbling and peeling, leaving the basement full of water for months, causing damage to ductwork, framing and piping in the house, etc. The Trust sued and Westfield denied a defense.
Westfield filed a declaratory judgment action for a ruling that it had no duty to defend or indemnify. On Westfield's motion for summary judgment, the court determined there was no property damage. Property damage included "physical injury to tangible property." When the alleged damage occurred in the course of a construction project, tangible property had to be property outside the scope of the contract for project.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
NYPD Investigating Two White Flags on Brooklyn Bridge
July 23, 2014 —
Chris Dolmetsch – BloombergThe New York City Police Department is trying to figure out who replaced the American flags that fly atop the Brooklyn Bridge with white banners.
The replacement flags were discovered this morning on the towers at opposite ends of the bridge, where the Stars and Stripes are normally displayed, and were removed, police said.
The NYPD’s Counterterrorism Bureau and Emergency Service Unit are probing the incident and reviewing surveillance video to determine who replaced the flags and when the act took place, police said.
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Chris Dolmetsch, BloombergMr. Dolmetsch may be contacted at
cdolmetsch@bloomberg.net
Picketing Threats
July 09, 2019 —
Jerry Morales - Snell & Wilmer Under ConstructionLetters from unions to owners, general contractors and other contractors informing them of the union’s dispute with one or more of the subcontractors, working at a common construction project site (or common situs), and of the union’s plans to engage in “public informational campaigns” at the site, in furtherance of the dispute, may constitute unlawful threats of secondary boycott.
Unions often send letters to various employers that share a common construction project site, informing them that the union has a dispute with one or more of the subcontractors working or scheduled to work at the same site. In labor law, the employers that do not have a dispute with the union are referred to as “neutral employers,” in contrast with the employers with which the union has the dispute, referred to as “primary employers.”
In the letters, the unions typically describe the reason for the labor dispute (e.g., alleged failure to pay “area standards”), request that the neutrals use their “managerial discretion” not to allow the primary employers to perform work at the project site until the dispute is resolved, and inform that the union will engage in public information campaigns against the primary employer at the common situs. The “public information campaign” is described in the union’s letter as including banner displays, distribution of handbills, picketing and other demonstration activity.
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Jerry Morales, Snell & WilmerMr. Morales may be contacted at
jmorales@swlaw.com
The Best Laid Plans: Contingency in a Construction Contract
September 13, 2021 —
Josh Levy, Katesha Long & Samantha Schacht - Construction ExecutiveThis article is the first of a three-part series on contingencies in construction contracts. This series will explain:
- what a construction contingency is;
- the two primary schools of thought regarding how a construction contingency fund should be used and managed; and
- construction contract drafting considerations for contingency clauses.
Armed with this information, owners and contractors will be better equipped to tackle the inevitable project surprises.
Life is full of surprises, some good and some not too good. Surprises during construction are seldom welcome events. However, experienced owners and contractors know to expect the unexpected and plan accordingly by including contingency funds in their budgets. For them, the question is not whether or not to include a contingency, but how much to set aside and how to structure and manage the fund.
Reprinted courtesy of
Josh Levy, Katesha Long & Samantha Schacht, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Ms. Schacht may be contacted at samantha.schacht@huschblackwell.com
Ms. Long may be contacted at katesha.long@huschblackwell.com
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Drowning of Two Boys Constitutes One Occurrence
August 06, 2014 —
Tred R. Eyerly – Insurance Law HawaiiWhen two boys drowned at a summer camp, the issue arose as to whether there were one or two occurrences. Fellowship of Christian Athletes v. AXIS Ins. Co., 2014 U.S. App. LEXIS 13176 (8th Cir. July 11, 2014).
The two boys could not swim, and their camp permission forms indicated that they were non-swimmers. One night, the Fellowship of Christian Athletes (FCA) had a pool party. After the party, the FCA staff realized the two boys were missing. They had drowned, and their bodies were found lying side-by-side at the bottom of the deep end of the pool. The death certificate for one boy listed the time of death as 10:44 p.m., while the other boy's time of death was listed as 10:42 p.m.
The FCA was insured under three policies. AXIS Insurance Company insured FCA under a CGL policy with $1 million limits per occurrence and $5 million in the aggregate. The FCA also had two umbrella policies, one issued by Ironshore Speciality Insurance Company, which provided up to $10 million in coverage in excess of Axis's policy. Under the second umbrella policy, RSUI Indemnity Company covered up to $5 million in excess of the Axis and Ironshore policies.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
BHA Has a Nice Swing: Firm Supports NCHV and Final Salute at 2017 WCC Seminar
May 03, 2017 —
CDJ STAFFBert L. Howe & Associates (BHA) is excited to announce the return of their very popular Sink a Putt for Charity at the 2017
West Coast Casualty Construction Defect Seminar. This year, participant’s efforts on the green will help benefit both the
National Coalition for Homeless Vets and
Final Salute. As in years past, sink a putt in the BHA golf challenge and win a $25 Amazon gift card, and for every successful putt made, BHA will make a $25 cash donation in the golfer’s name to be distributed equally between these two worthy organizations.
While at the booth, don’t forget to test out BHA’s industry leading data collection and inspection analysis systems. BHA has recently added video overviews to their data collection process, as well as next-day viewing of inspection data via their secured BHA Client Access Portal. Discover meaningful cost improvements that translate to reduced billing while providing superior accuracy and credibility. Also learn about BHA’s expanding market presence and full range of services in Texas, Florida, and across the Southeast United States.
Attendees can also enter to win Dodger baseball tickets or a new iPad Pro! Other BHA giveaways include USB charging blocks, pocket tape measures, multi-tools, LED flashlights, and foam stress balls.
For more information on the National Coalition for Homeless Vets, please visit: http://nchv.org/
To learn more about how Final Salute provides homeless women Veterans with safe and suitable housing, please visit: http://www.finalsaluteinc.org/
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Managing Once-in-a-Generation Construction Problems – Part II
April 03, 2023 —
Jeffrey S. Wertman - Construction ExecutivePart I of this series discussed the benefits of construction participants using alternative project delivery methods and properly addressing change order issues, rising costs and payment structure issues to manage construction during these uncertain times. Part II below explores the possibility that higher prices and steady consumer demand could lead to an increase in unscrupulous contractor practices—and how owners can mitigate that risk, managing the challenges posed by the unforeseen labor shortage and turnover in the industry and evolving your construction team for short-term and long-term success.
Higher Prices and Steady Demand
With the demand for construction projects relatively stable, contractors remaining in high demand and a surge in prices for construction materials and components, owners are under great pressure to accept less favorable construction terms. This has presented unscrupulous contractors with perceived leverage over owners and new opportunities to engage in questionable business practices and fraud. Although some contractors may seek to stretch the boundaries of a construction contract, other contractors are more deliberate. Falsifying payment applications and invoices to inflate labor or materials costs, billing for work not yet performed or materials not yet delivered to the project site and manipulating change orders are examples of illicit and fraudulent practices by contractors.
Reprinted courtesy of
Jeffrey S. Wertman, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Las Vegas Partner Sarah Odia Named a 2023 Mountain States Super Lawyer Rising Star
August 28, 2023 —
Payne & Fears LLPPayne & Fears’ partner
Sarah J. Odia has been named to the list of 2023 Super Lawyers® Mountain States Rising Stars, recognizing her excellent contributions to the Las Vegas area legal community.
A Super Lawyers® Rising Stars selection is an honor reserved for those attorneys who exhibit excellence in practice. Lawyers nominate fellow attorneys who demonstrate excellence in the legal profession.
Reprinted courtesy of
Payne & Fears LLP
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