Nevada Supreme Court Holds That Insureds Can Use Extrinsic Evidence to Prove Duty to Defend
February 28, 2022 —
Bethany L. Barrese - Saxe Doernberger & VitaThe recent Nevada Supreme Court ruling in Zurich American Insurance Company v. Ironshore Specialty Insurance Company1 benefits insureds seeking to establish an insurer’s duty to defend. As a matter of first impression, the court clarified that insureds have the burden to prove that an exception to a policy exclusion applies in order to trigger the insured’s duty to defend. However, while the policyholder may use extrinsic evidence to establish the insurer’s duty to defend, the insurer may not use extrinsic evidence to deny that duty.
The facts of the underlying claim are set in the 2000s when the insured subcontractors worked to build thousands of homes in Nevada. The subcontractors were insured by Zurich American Insurance Company (“Zurich”) during that period. After the homes were complete, the subcontractors switched from Zurich to Ironshore Specialty Insurance Company (“Ironshore”). Between 2010 and 2013, homeowners brought claims against the subcontractors alleging that the properties were damaged due to construction defects. The subcontractors tendered the claims to Zurich as the insurer at the time of construction. Zurich then sought defense and indemnification from Ironshore. Ironshore denied coverage under a “continuing and progressive” policy exclusion, claiming that the property damage occurred due to faulty work that predated the Ironshore policy. Notably, an exception to the exclusion applied if “sudden and accidental” property damage occurred within the Ironshore policy period. Given that the underlying lawsuits did not include specific allegations describing when or how the property damage occurred, Ironshore and Zurich disagreed on whether the exception to the exclusion was triggered..
Read the court decisionRead the full story...Reprinted courtesy of
Bethany L. Barrese, Saxe Doernberger & VitaMs. Barrese may be contacted at
BBarrese@sdvlaw.com
Housing Inflation Begins to Rise
February 25, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Kathleen Madigan writing for The Wall Street Journal, “inflation remains muted at the start of 2014” except in one category: housing. Madigan stated that housing costs were “worth watching.”
The “owners’ equivalent rent index had been rising at a steady pace through most of 2012 and 2013, with 12-month percent changes hovering around 2%” however, “the pace picked up” at the end of last year.
Read the court decisionRead the full story...Reprinted courtesy of
When is a “Notice of Completion” on a California Private Works Construction Project Valid? Why Does It Matter for My Collection Rights?
January 27, 2020 —
William L. Porter - Porter Law GroupWhat is a Notice of Completion?
A “notice of completion” is a document recorded by the owner of property where construction work was performed. Specifically, it is recorded at the Office of the County Recorder in the County where the work was performed. The notice of completion tells the world at large that the construction project is complete. It also triggers the deadlines for those who have not been paid to make their claims for payment.
Is an Owner of a California Private Works Project Required to Record a Notice of Completion?
No, there is no requirement that an owner of a California private works construction project record a Notice of Completion. However, there are consequences which depend on whether an Owner elects to record the notice or not.
For My Collection Rights, Why Does it Matter Whether a Notice of Completion Has Been Recorded?
The date of recording of a valid notice of completion sets the deadline for those who have not been paid for work performed and materials supplied to a California construction project to pursue such important collection remedies as the “mechanics lien”, the “stop payment notice” and the “payment bond claim.” These are very powerful collection remedies for those who have not been paid. If the deadline to pursue these remedies is missed by a claimant, then the claimant’s right to pursue these remedies is also missed. One of these remedies, the mechanics lien, will enable the claimant to sell the owner’s property where the work was performed in order to get paid.
Read the court decisionRead the full story...Reprinted courtesy of
William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Near-Zero Carbon Cement Powers Sustainable 3D-Printed Homes
August 07, 2023 —
Aarni Heiskanen - AEC BusinessEco Material Technologies and Hive 3D have unveiled the first 3D-printed homes using near-zero carbon cement as part of a housing project called The Casitas @ The Halles.
The homes, ranging from 400 to 900 square feet, are constructed using Eco Material’s durable, longer-lasting cement called PozzoCEM Vite®. The cement replaces 100% of traditional Portland cement, has 92% lower emissions, and sets much faster.
Hive 3D has developed a system to mix Eco Material’s cement replacement products with locally-sourced aggregates on-site, enabling cost-efficient and affordable construction. The collaboration aims to offer sustainable housing solutions and transition the construction industry away from high-carbon materials.
Read the court decisionRead the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Google, Environmentalists and University Push Methane-Leak Detection
December 21, 2016 —
Mary B. Powers – Engineering News-RecordNational Grid, which serves New York, Massachusetts and Rhode Island, is set to be the second U.S. natural-gas utility to use technology advanced by Google Earth, the Environmental Defense Fund (EDF) and Colorado State University to boost large-scale methane-leak detection. It is launching a $3-billion effort to replace gas pipelines in New York. The technology uses cutting-edge spatial analytics methods and methane sensors, specially fitted to Google Street View cars, to identify leaks and accurately measure the amount of methane escaping.
Read the court decisionRead the full story...Reprinted courtesy of
Mary B. Powers, Engineering News-RecordENR may be contacted at
ENR.com@bnpmedia.com
Understanding Insurance Disputes in Construction Defect Litigation: A Review of Acuity v. Kinsale
December 17, 2024 —
David M. McLain – Colorado Construction Litigation BlogConstruction projects are inherently complex, and insurance coverage plays a crucial role in managing risks, especially when unforeseen issues arise. The case of Acuity v. Kinsale demonstrates the tangled web of insurance obligations, especially when multiple insurers provide coverage for a single event. This case, involving Monarch Stucco, Inc., Acuity, and Kinsale Insurance Company, sheds light on the challenges that contractors, subcontractors, and insurers may face when disputes over liability and coverage occur.
The Background of the Case
At the heart of this dispute lies a construction defect at a retirement community project in Lakewood, Colorado. Monarch Stucco, Inc. (“Monarch”), a subcontractor hired by GH Phipps Construction Company (“Phipps”), was responsible for stucco work on the project. Unfortunately, defects in the building’s envelope system, particularly Monarch’s stucco work, led to significant damage and costly repairs.
Read the court decisionRead the full story...Reprinted courtesy of
David M. McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
Default, Fraud, and VCPA (Oh My!)
September 12, 2023 —
Christopher G. Hill - Construction Law MusingsI’ve discussed the
Virginia Consumer Protection Act (VCPA) and the interaction between
fraud and contract on numerous occasions here at Construction Law Musings. A recent case from the Eastern District of Virginia District Court discusses this interaction (along with
that dreaded default) further.
In
Bhutta v. DRM Construction Corp., the homeowners, the Bhuttas, sued DRM for breach of contract, conversion, fraud, and a violation of the VCPA. These allegations were based upon DRM having taken a $40,000.00 deposit from the Bhuttas and then failing to even begin work. As you may have guessed from the title of this post, DRM did not respond to the Complaint and the Court granted default. The Court then took up the question of whether the Bhuttas had alleged enough on each count for default judgment on those counts. After going through a procedural recitation and finding that DRM was properly served and that the Court had jurisdiction, the Court got to the meat of the matter.
The Court held that the Bhuttas properly plead a breach of contract for the obvious reason. The reason was that DRM never performed any work and the Bhuttas were damaged because they both paid the deposit and also had to hire another contractor to complete the work at a higher price. The Court granted default judgment for breach of contract.
Read the court decisionRead the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Eyerly may be contacted at
te@hawaiilawyer.com
EPA Announces Decision to Retain Current Position on RCRA Regulation of Oil and Gas Production Wastes
June 03, 2019 —
Anthony B. Cavender - Gravel2GavelAfter much study, EPA has decided against changing its current RCRA Subtitle D rules affecting the state regulation of oil and gas exploration & production waste. Since 1988, EPA has determined that most such wastes should be regulated as only non-hazardous wastes subject to RCRA Subtitle D, and not the more onerous hazardous waste provisions of RCRA Subtitle C. (See the Regulatory Determination of Oil and Gas and Geothermal Exploration, Development and Production Wastes, 53 FR 25,446 (July 6,1988).)
As a result, under the Subtitle D rules, the primary regulators of such waste are state regulatory agencies, which follow the state plan non-hazardous waste guidelines developed by EPA. This regulatory disposition has proven to be fairly controversial, and it was recently challenged in a lawsuit filed in the U.S. District Court for the District of Columbia: Environmental Integrity Project, et al. v. McCarthy. To settle this lawsuit, EPA and the plaintiffs entered into a consent decree by which EPA was to make certain determinations about the future of the program after conducting an appropriate study. That study, Management of Exploration, Development and Production Wastes: Factors Informing a Decision on the Need for Regulatory Action, has been completed, and it concludes, after a fairly comprehensive review of these state regulatory programs, that “revisions to the federal regulations for the management of E&P wastes under Subtitle D of RCRA (40 CFR Part 257) are not necessary at this time.” In a statement released on April 23, 2019, EPA accepted these findings and promised that it would continue to work with states and other stakeholders to identify areas for improvement and to address emerging issues to ensure that exploration, development and production wastes “continue to be managed in a manner that is protective of human health and the environment.”
Read the court decisionRead the full story...Reprinted courtesy of
Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com