A Compilation of Quirky Insurance Claims
August 13, 2014 —
Beverley BevenFlorez-CDJ STAFFProperty Casualty 360 showcased five “nutty claims stories” based upon recollections by several insurance professionals.
Number four, subtitled, “The Case of the Soaked Survivalists,” described a claim by an elderly couple who “made a $350,000 water-damage claim after heavy rains and an inadequate sump pump ruined what they described as thousands of ‘valuable items’ in their storage area.” However, a claims adjuster discovered during the investigation that the area in question was actually a bomb shelter built during the Cold War era, and the so-called valuable items were actually “soap, toothpaste, canned goods, and more.” The insurer ended up settling for about $200,000.
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Washington Court Denies Subcontractor’s Claim Based on Contractual Change and Notice Provisions
January 29, 2024 —
Wendy Rosenstein - Ahlers Cressman & Sleight PLLCThe recent unpublished case, Cascade Civil Construction, LLC v. Jackson Dean Construction, Inc., et al.,[1] provides a legal justification for contractors to require a directive or change order in advance of performing changed work—thereby preventing the party who requested the changed work from later arguing that notice provisions were not complied with.
In the case, Jackson Dean, the prime contractor, hired Cascade to perform excavation work on a project to build a new Costco Corporate headquarters. Due to the Covid-19 pandemic and other issues, Jackson Dean directed resequencing, which required Cascade to perform excavation concurrent to dewatering. Jackson Dean also required deeper-than-planned excavation under one of the buildings.
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Wendy Rosenstein, Ahlers Cressman & Sleight PLLCMs. Rosenstein may be contacted at
wendy.rosenstein@acslawyers.com
COVID-19 Response: Executive Order 13999: Enhancement of COVID-19-Related Workplace Safety Requirements
March 08, 2021 —
Alan Rupe & Luis Mendoza - Lewis BrisboisPresident Biden has signed 28 Executive Orders as of February 2, 2021. While this is a large number of Executive Orders compared to the historical record, most call for creating task forces and directing agencies to explore policy changes. However, there is one that stands out to employment lawyers – Executive Order 13999 (Order). Titled “Protecting Worker Health and Safety,” the Order addresses workplace safety. It sets out instructions, primarily to the Secretary of Labor and Assistant Secretary of Labor for Occupational Safety and Health, for establishing and issuing a set of guidelines under the Occupational Safety and Health Act (OSHA).
Pursuant to the Order, the Secretary of Labor will issue revised guidance to employers on workplace safety concerning COVID-19, determine if emergency workplace standards are required, and improve overall OSHA shortcomings related to COVID-19 workplace protections and enforcement. Enforcement will include the use of anti-retaliation principles concerning employees reporting unsafe conditions in the workplace. OSHA has issued initial guidance based on the Order.
Reprinted courtesy of
Alan Rupe, Lewis Brisbois and
Luis Mendoza, Lewis Brisbois
Mr. Rupe may be contacted at Alan.Rupe@lewisbrisbois.com
Mr. Mendoza may be contacted at Luis.Mendoza@lewisbrisbois.com
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Five Construction Payment Issues—and Solutions
October 03, 2022 —
Michael Bignold - Construction ExecutiveSales are important for construction companies that want to succeed. However, while companies certainly need to spend time on sales and marketing, having a full order book is only part of the equation. They still need to do the work and, even more importantly, they need to be able to collect payment from customers.
Here are common payment issues in the construction industry and what leaders can do to prevent or mitigate them.
1. Change Order Disputes
If a project goes exactly as planned and quoted, billing the customer is a fairly simple matter. However, it’s very rare that any job goes exactly according to the quote in the construction business. Change orders, omissions and additions are typical on jobs of any size across the industry. If contractors are not handling those changes properly by getting everything in writing, they could be in trouble when the time comes to send invoices.
Reprinted courtesy of
Michael Bignold, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Edgewater Plans to Sue Over Pollution During Veterans Field Rehab
August 13, 2014 —
Beverley BevenFlorez-CDJ STAFFIn New Jersey, “Borough officials have announced plans to sue ‘all responsible parties’ over new contaminants inadvertently brought onto Veterans Field during soil remediation that was halted last year,” reported The Record.
According to The Record, Waterside Construction “trucked in contaminated crushed concrete” and has “been in mediation for months” with the borough over the issue.
“Waterside violated the sanctity of the public trust by improperly disposing of PCB waste materials at Veterans Field,” Timothy Corriston, special counsel to the borough, told The Record. “They believe that others are partly responsible. That is ultimately what will be litigated.”
Spokesman Alan Marcus wrote in an email to The Record, “Waterside continues to be willing to participate in mediation and hopes to reach an amicable settlement among all of the parties.”
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New Jersey Federal Court Examines And Applies The “j.(5)” Ongoing Operations Exclusion
October 07, 2019 —
Anthony L. Miscioscia and Timothy A. Carroll - White and Williams LLPIn PJR Construction of N.J. v. Valley Forge Insurance Company, 2019 U.S. Dist. LEXIS 127973 (D.N.J. July 31, 2019) (PJR Construction), a New Jersey federal court held that the “j.(5)” “Ongoing Operations Exclusion” applied to bar coverage for property damage to property on which a construction company allegedly performed faulty work. The court’s opinion follows prior New Jersey state court precedent, including Ohio Casualty Insurance Company v. Island Pool & Spa, Inc., 12 A.3d 719 (N.J. Super. Ct. App. Div. 2011) (Island Pool), but also provides additional guidance on the elements which can make the Ongoing Operations Exclusion applicable to exclude coverage.
In PJR Construction, a commercial property owner engaged a construction company to build a 26,000 square foot swim club and related 3,000 square foot pavilion building in New Jersey. After about 75% of the work was completed, the property owner fired the construction company and denied it access to the property. The owner later sued the construction company in New Jersey state court alleging “shoddy workmanship” in, among other things, sealants, flashing, water resistant barriers, masonry and the handicap ramps. The construction company sought coverage from its CGL insurer, which denied coverage based on, among other things, the j.(5) Ongoing Operations Exclusion. After the denial of coverage, the company sued the insurer in New Jersey federal court seeking a declaration of coverage.
Reprinted courtesy of
Anthony L. Miscioscia, White and Williams LLP and
Timothy A. Carroll, White and Williams LLP
Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com
Mr. Carroll may be contacted at carrollt@whiteandwilliams.com
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Update Regarding New York City’s Climate Mobilization Act (CMA) and the Reduction of Carbon Emissions in New York City
July 05, 2021 —
Caroline A. Harcourt, Natalie S. Starkman & Nika Bederman - Gravel2Gavel Construction & Real Estate Law BlogIn a previous post, we described how the New York City Climate Mobilization Act, 2019 (the CMA, or Local Laws 92, 94, 95, 96, 97, and 147 enacted in 2019) was passed with the goal of reducing New York City’s carbon emissions by 40 percent by 2030 and by 80 percent by 2050 (as against a 2005 baseline as provided for in item 3 of Local Law 97). It is the most ambitious building emissions law to be enacted by any city in the world. The CMA impacts “Covered Buildings” (described below) and, besides contemplating the retrofitting of Covered Buildings to achieve energy efficiency and establishing a monitoring program for Covered Buildings, the CMA contemplates compliance by means of the purchase of carbon offset credits or renewable energy. (Note the new NYC Accelerator program, launched in 2012 by the Mayor’s Office of Sustainability, provides guidance regarding energy-efficient upgrades to properties and emission reductions.)
Pursuant to the CMA:
- Beginning in 2024, Covered Buildings will have to meet the first emission targets, which are calculated by multiplying the gross floor area of each Covered Building by the occupancy classification as set forth in Local Law 97; and
- In 2025, owners of Covered Buildings will need to establish compliance by submitting a report establishing such compliance (prepared by a certified design professional) to the newly created Office of Building Energy and Emissions Performance.
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Caroline A. Harcourt, PillsburyMs. Harcourt may be contacted at
caroline.harcourt@pillsburylaw.com
A Few Things You Might Consider Doing Instead of Binging on Netflix
April 13, 2020 —
Garret Murai - California Construction Law BlogGovernments throughout the world have issued “shelter in place” orders requiring that residents stay at home except for “essential” purposes. As a result, in the United States, more than a third of Americans have been ordered to stay at home. This, in turn, has had a direct impact on construction projects which have slowed or have been temporarily shuttered altogether, and it will (not may) have an impact on the flow of project funds. So what can project owners and contractors do? We’ve got a few tips.
1. Read Your Contract, Paying Particular Attention to Force Majeure, No Damages for Delay and Notice Provisions
For the most part, with the exception of statutory rights and remedies which we will discuss below, your contract spells out your rights and remedies should the proverbial “S” hit the fan. It is, in other words, the rules you agreed to, and you should know what those rules provide. Three provisions you should look for, and if they’re in your contract, you should review carefully are: (1) Force majeure provisions; (2) No damages for delay provisions; and (3) notice provisions.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com