Cambridge Massachusetts Building Expert Directory

Insurer Ordered to Participate in Appraisal

March 27, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The court found that the insured's request for an appraisal was timely and ordered the insurer to participate. Cloisters of Naples, Inc v. Landmark Am. Ins. Co., 2023 U.S. Dist. LEXIS 6884 (M.D. Flag. Jan. 13, 2023). A hurricane damaged Cloisters, a condominium. Cloisters made a claim under its commercial insurance policy with Landmark. Landmark acknowledged coverage but failed to pay what Cloisters thought was needed. Cloisters sued. The policy had a standard appraisal provision, but another clause had a suit litigation provision requiring a request for appraisal within two years after physical loss to the property. The dispute was whether Florida law, allowing appraisal clauses to be valid for 130 years, or Georgia law, which had no such extension on requesting an appraisal. Landmark contended the contract was formed in Georgia, so its law should apply. Florida followed the lure of lex loci, which provided that the law of the jurisdiction where the contract was executed governed. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Sales of U.S. New Homes Decline After Record May Revision

July 30, 2014 — Victoria Stilwell – Bloomberg
Fewer new U.S. homes were sold in June than forecast and May data showed the biggest downward revision on record, painting a picture of a housing market that is struggling to gain traction. Sales of newly built homes declined 8.1 percent to a 406,000 annualized pace, the fewest since March and less than any economist surveyed by Bloomberg forecast, Commerce Department figures showed today in Washington. That followed a May reading of 442,000 that was 12.3 percent lower than estimated last month. Restrictive lending rules, limited land supply, higher mortgage rates and more expensive properties are keeping a lid on how much the housing recovery can accelerate. Continued employment gains and bigger increases in wages will be needed to support further growth in the industry, which has stalled since interest rates started climbing last year. Read the court decision
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Reprinted courtesy of Victoria Stilwell, Bloomberg
Ms. Stilwell may be contacted at vstilwell1@bloomberg.net

No Coverage for Foundation Collapse

November 08, 2017 — Tred R. Eyerly - Insurance Law Hawaii
Coverage for the collapse of a foundation was not covered under the contractor's builder's risk policy. Taja Investments LLC v. Peerless Ins. Co., 2017 U.S. App. LEXIS 19855 (4th Cir. Oct. 11, 2017). Taja Construction LLC was renovating a row house owned by Taja Investments LLC when the east wall of the property collapsed. Taja submitted a claim for repair costs in the amount of $400,000. Peerless denied coverage because the collapse was caused by Taja's failure to support the building's foundation properly while excavating the basement. The policy excluded coverage for defects in construction or workmanship. The claim was also denied under the earth movement exclusion. Read the court decision
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Reprinted courtesy of Tred R. Eyerly - Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

The Future of Construction Defects in Utah Unclear

December 11, 2013 — CDJ STAFF
In recent years, more courts have started to view construction defects as accidents, covered under insurance policies. In a post on the Parr Brown Gee & Loveless web site, Jeffrey D. Stevens writes that “the number of courts siding with insurance companies to deny contractors and subcontractors insurance coverage in construction defect lawsuits has been shrinking.” Recently, the Supreme Court of West Virginia “switched sides on this issue completely.” The Utah Supreme Court has not made a ruling on this, but the Federal District Court for the District of Utah and the Tenth Circuit have looked at Utah law and concluded that “under Utah law damage caused by construction defects is not accidental.” But in another case, “the district court determined that property damage allegedly caused by defective or defectively installed windows was caused by an accident.” Mr. Stevens thinks that “it is likely” that the Utah Supreme Court “will follow the increasing number of courts that have held that damage caused by construction defects is an accident for insurance purposes. Read the court decision
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A Murder in Honduras Reveals the Dark Side of Clean Energy

October 12, 2020 — Monte Reel - Bloomberg
Berta Cáceres campaigned to stop a renewable energy project, and the long fight turned her into one of Central America’s most prominent environmentalists. She won a prestigious international prize known as the “Green Nobel” for protecting a river, using some of the award money to purchase a modest bungalow in La Esperanza, her hometown in central Honduras. Her activism is also what brought three gunmen to her back door. The men broke into her kitchen around 11:30 p.m. on March 2, 2016. Cáceres heard a noise and called out from her bedroom: “Who’s out there?” Within seconds, a gunman entered her room and shot her dead. Read the court decision
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Reprinted courtesy of Monte Reel, Bloomberg

Massachusetts District Court Holds Contractors Are Not Additional Insureds on Developer’s Builder’s Risk Policy

August 31, 2020 — Gus Sara - The Subrogation Strategist
In Factory Mut. Ins. Co. v. Skanska United States Bldg., No. 18-cv-11700-DLC, 2020 U.S. Dist. LEXIS 95403 (Skanska), the United States District Court for the District of Massachusetts considered whether contractors on a construction job were additional insureds on the developer’s builder’s risk insurance policy. After a water loss occurred during construction, the builder’s risk insurance carrier paid its named insured for the resultant damage, and subsequently filed a subrogation action against two contractors. The defendants filed a motion for summary judgment, claiming that the anti-subrogation rule barred the carrier from subrogating against them because they were additional insureds on the policy. The court found that based on the particular language of the additional insured provision in the policy, the defendants were not additional insureds for purposes of the subrogation action. Skanska arose from property damage that occurred during a construction project where Novartis Corporation (Novartis) endeavored to construct a biomedical research building in Cambridge, Massachusetts and retained Skanska USA Building, Inc. (Skanska) as the general contractor. In turn, Skanksa hired J.C. Cannistraro, LLC (JCC) as a subcontractor. Novartis secured a builder’s risk insurance policy from Factory Mutual Insurance Company (Factory Mutual). The policy defined “Insured” as Novartis and its subsidiaries, partnerships and joint ventures that it controlled or owned. The policy included another provision, titled “Property Damage,” which stated that the policy “insures the interest of contractors and subcontractors in insured property… to the extent of the Insured’s legal liability for insured physical loss or damage to such property.” Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

Pennsylvania Federal Court Addresses Recurring Asbestos Coverage Issues

March 04, 2019 — Craig O’Neill & Laura Rossi - Complex Insurance Coverage Reporter
In a pair of recent asbestos coverage decisions, a Pennsylvania federal court issued rulings addressing expedited funding orders, number of “occurrences,” and the applicability of aggregate limits under the Fourth Circuit’s Wallace & Gale approach. Zurn Industries, LLC v. Allstate Insurance Company, 2018 U.S. Dist. LEXIS 197481 (W.D. Pa. Nov. 20, 2018) Policyholder Zurn, a manufacturer and distributor of boilers, was named as a defendant in thousands of underlying asbestos-related bodily injury suits. After its primary insurers claimed exhaustion, Zurn moved on an expedited basis to require two of its excess insurers to each assume fifty percent of its defense and indemnity costs until they reached a permanent cost-sharing agreement. In denying Zurn’s expedited request for interim funding, the court held that the record was insufficient “in the opening stages of litigation, before discovery has occurred” to determine whether the underlying coverage had been properly exhausted but left the door open for Zurn to refile its motion on a more developed record. Reprinted courtesy of Craig O’Neill, White and Williams LLP and Laura Rossi, White and Williams LLP Mr. Levine may be contacted at oneillc@whiteandwilliams.com Ms. Rossi may be contacted at rossil@whiteandwilliams.com Read the court decision
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Real Estate & Construction News Roundup (7/10/24) – Strong Construction Investment in Data Centers, Increase Use of Proptech in Hospitality and Effects of Remote-Work on Housing Market

August 05, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, renters stay in their units longer, GenAI change how commercial real estate operates, and banks continue high exposure due to commercial real estate.

Strong investor interest, particularly in opportunistic and value-add segments, signals a strong market for construction firms specializing in high-yield projects. (Sebastian Obando, Construction Dive)
A growing number of renters are staying in their units for longer periods of time than they did a decade ago with over one-third of U.S. renters have lived in the same apartment for more than five years. (Mary Salmonsen, Multifamily Dive)
Several U.S. regional and mid-sized banks continue to face the squeeze from high exposure to the commercial real estate sector that has been shaken by higher-for-longer interest rates and empty office buildings. (Reuters)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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