Damages to Property That is Not the Insured's Work Product Are Covered
October 27, 2016 —
Tred R. Eyerly – Insurance Law HawaiiReversing the district court, the Eighth Circuit predicted that under Iowa law, damage to property other than the insured's work product was covered. Decker Plastics Inc. v. West Bend Mut. Ins. Co., 2016 U.S. App. LEXIS 15235 (8th Cir. Aug. 19, 2016).
A 1's, Inc. packaged and sold landscaping materials. Decker Plastics Corporation sold plastic bags to A 1's. The plastic bags were filled with sand and rock, and stored outdoors for sale to customers. Because Decker failed to manufacture the bags with an ultraviolet inhibitor, the bags deteriorated in the sunlight. This caused small shreds of plastic to commingle with A 1's landscaping materials. The plastic was a contaminant that could not be inexpensively separated form A 1's products. A 1's had to clean spilled materials from customer sites, purchase replacement bags from another supplier, and pay to clean up its own property.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Home Building Up in Kansas City
November 20, 2013 —
CDJ STAFFIt’s been a good year for home builders in Kansas City, Missouri. In fact, it’s the best year since 2007. The total number of home permits issued through October exceeds the number issued in 2012 by 164, having reached 3,463. Sara Corless, executive vice president of the Builders Association, focused more on the growth, though she noted that some builders were hoping the year’s total would exceed 4,000, which she described as “a psychological victory at a minimum.”
The Kansas City metropolitan area lead the state in the number of building permits issued.
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My Top 5 Innovations for Greater Efficiency, Sustainability & Quality
October 25, 2020 —
Cristina Savian - AEC BusinessAs a construction professional and British citizen, I genuinely could not have been any prouder and humbled to have opened UK Construction Week Virtual last week.
2020 is the year of disruptions, and we are all looking for this “New Normal”, and while this newfound regularity may have opened new opportunities, as we are now broadcasting to a much wider audience than previous in-person events, and indeed we have to thank technology for that. For us construction professionals, this pandemic has put our industry further under pressure, however, it has also taught us something extremely important. The pandemic has shown the world how vital the construction industry is. The world cannot function without it. This new extraordinary experience has given us the prospect to turn our industry around and transform it into one of the most productive industries in our society.
How are we going to do it? I think you can guess what I am about to say, of course by leveraging technology! The panel discussion with leading construction experts across the UK with representatives from Skanska UK, Bryden Wood, and Innovate UK, focused on our top 5 innovations for greater efficiency, sustainability and quality in construction. Here are my top 5.
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Cristina Savian, AEC Business
Florida Project Could Help Address Runoff, Algae Blooms
September 17, 2018 —
Thomas F. Armistead - Engineering News-RecordHeavy rainfall this spring overwhelmed Everglades infrastructure and required operators to discharge nutrient-laden water from Lake Okeechobee to South Florida’s east and west coasts. The resulting toxic algal blooms are fouling Florida’s coast, killing wildlife, driving away vacationers and local beachgoers and threatening public health.
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Thomas F. Armistead, ENRENR may be contacted at
ENR.com@bnpmedia.com
Use It or Lose It: California Court of Appeal Addresses Statutes of Limitations for Latent Construction Defects and Damage to Real Property
August 02, 2017 —
Omar Parra & Jesse M. Sullivan - Haight Brown & Bonesteel LLPThe First Appellate District of the California Court of Appeal recently confirmed California’s latent defect statute of limitations, codified in California Code of Civil Procedure section 337.15, bars only claims based on construction defects. Estuary Owners Association v. Shell Oil Company, No. A145516, (Cal. Ct. App. July 26, 2017). The Court also reemphasized that under California’s three-year statute of limitations for damage to real property, delineated in California Code of Civil Procedure section 338(b), the actual and constructive knowledge of the prior landowner is imputed to the current landowner.
Estuary Owners Association concerned the development and construction of a 100-unit condominium by Signature at the Estuary, LLC (“Signature”) on land Shell Oil Company (“Shell”) previously used as a fuel distribution terminal. Construction of the condominiums was completed in 2006. In 2008, it was discovered that residual concentrations of petroleum related chemicals remained in the soil, soil gas, and groundwater beneath the development. Later that year, Signature revealed that the condominiums had been constructed with moisture barriers beneath the building slabs instead of the vapor/gas barriers called for in the corrective action plan.
Reprinted courtesy of
Omar Parra, Haight Brown & Bonesteel LLP and
Jesse M. Sullivan, Haight Brown & Bonesteel LLP
Mr. Parra may be contacted at oparra@hbblaw.com
Mr. Sullivan may be contacted at jsullivan@hbblaw.com
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Flint Water Crisis Prompts Call for More Federal Oversight
August 28, 2018 —
Associated Press - Engineering News-RecordWASHINGTON (AP) — A federal watchdog is calling on the Environmental Protection Agency to strengthen its oversight of state drinking water systems nationally and respond more quickly to public health emergencies such as the lead-in-the water crisis in Flint, Michigan .
In a 74-page report released Thursday, the EPA's inspector general report pointed to "oversight lapses" at the federal, state and local levels in the response to Flint's contaminated drinking water.
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Engineering News-RecordENR may be contacted at
ENR.com@bnpmedia.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
Understand and Define Key Substantive Contract Provisions
March 23, 2020 —
Phillip L. Sampson Jr. & Richard F. Whiteley, Construction ExecutiveThe following contract provisions should be clearly understood before undertaking any construction project commences.
Force Majeure
Often referred to as an “Act of God,” a force majeure is an event, typically beyond the parties’ control, that prevents performance under a contract. To determine if a contractor need a force majeure clause in its contract, it should ask whether there may be instances where events beyond the contractor’s control could impact its contractual performance? If so, it will want this clause.
Courts currently treat force majeure as an issue of contractual interpretation, focusing on the express language in the contract. Consequently, the scope and applicability of a force majeure clause depends on the contract’s terms. Using broad language in a force majeure clause may help protect against unforeseen events. But to the extent possible, parties should describe with particularity the circumstances intended to constitute a force majeure.
The law relating to force majeure also fairly consistently provides that parties cannot avoid contractual obligations because performance has become economically burdensome. Courts have refused to apply force majeure clauses where an event only affects profitability. Recent attempts to categorize tariffs on construction materials as a force majeure have failed. Unless a tariff or tax is specifically listed as a force majeure event, it is unlikely to constitute a force majeure because it only affects profitability.
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Phillip L. Sampson Jr. & Richard F. Whiteley, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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