Notice of Claim Sufficient to Invoke Coverage
August 06, 2014 —
Tred R. Eyerly – Insurance Law HawaiiIndirect notice to the insurer was sufficient to trigger coverage for the additional insured under a liability policy. Spoleta Constr., LLC v. Aspen Ins. UK Ltd., 2014 N.Y. App. Div. LEXIS 5174 (N.Y. App. Div. July 11, 2014).
An employee of the subcontractor was injured at the construction project on October 20, 2008. The general contractor was named as an additional insured on the subcontractor's CGL policy with Aspen. Under the subcontract, the subcontractor also agreed to defend and indemnify the general contractor for all claims arising out of the subcontractor's work.
The general contractor did not receive notice of the accident until late December 2009 in a letter from the injured employee's attorney. On January 27, 2010, the general contractor's liability carrier sent a letter to the subcontractor giving notice of the employee's claim and requesting that the subcontractor put its carrier on notice. On February 9, 2010, the subcontractor sent to Aspen a claim form with the January 2010 letter attached.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
The Right to Repair Act Isn’t Out for the Count, Yet. Homebuilders Fight Back
October 02, 2015 —
Garret Murai – California Construction Law Blog“[I]t ain’t how hard you hit; it’s about how hard you can get hit, and keep moving forward. How much you can take, and keep moving forward. That’s how winning is done. . . .” – Sylvester Stalone as Rocky Balboa in Rocky Balboa.
Ding, ding.
The Little Case That Roared
Two years ago we wrote about a case that caused an uproar in the homebuilding industry – Liberty Mutual Insurance Company v. Brookfield Crystal Cove LLC, 219 Cal.App.4th 98 (2013) – in which the California Court of Appeals for the Fourth District held for the first time that the Right to Repair Act does not provide the exclusive remedy for construction defect claims involving “actual,” as opposed to “economic,” damages in new residential housing.
It was a blow to the homebuilding industry who back in 2002, following a wave of construction defect lawsuits involving new residential housing, lobbied the State Legislature for the Right to Repair Act which gave homebuilders an opportunity to repair defects before being sued in court.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Fort Lauderdale Partner Secures Defense Verdict for Engineering Firm in High-Stakes Negligence Case
June 10, 2024 —
Lewis Brisbois NewsroomFort Lauderdale, Fla. (June 3, 2024) - Fort Lauderdale Managing Partner Cheryl Wilke recently secured a defense verdict for civil engineering firm Gulfstream Design Group and its owner, Matthew Lahti, in a high-stakes professional negligence case in which the plaintiff sought more than $20 million. The verdict by a six-person jury in St. Augustine followed a nine-day trial.
The case involved a 100-acre tract of land in St. Johns County, Florida, owned by the plaintiff, Cynthia Taylor. The land was zoned for rural farming, and she wished to sell the property for development. She entered into a contract with Southeast Georgia Acquisitions (“SGA”) to sell the property with the goal of creating a 200-home subdivision. SGA hired Doug Burnett as land use counsel and our client, Gulfstream Design Group, as the civil engineer to design the project.
In St. Johns County, only a property owner can submit a Planned Unit Development Plan (“PUD”) for the purpose of rezoning. In this case, Burnett and Gulfstream created text and a proposed map for the PUD and submitted it for approval. The PUD was approved first at the staff level, then by planning and zoning and then by the County Commission. All the services were provided prior to closing with PUD approval, a condition of sale.
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Lewis Brisbois
Safety Officials Investigating Death From Fall
September 09, 2011 —
CDJ STAFFCalifornia safety officials are looking into the circumstances surrounding the death of a construction worker who fell from a roof in Tiburon, California. Another worker found Gabriel Vasquez unconscious at the site. Vasquez was later pronounced dead. The State Division of Occupational Safety and Health are trying to determine how Vasquez fell.
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The Activist Group Suing the Suburbs for Bigger Buildings
December 10, 2015 —
Patrick Clark – BloombergIn a speech last month, Council of Economic Advisers Chairman Jason Furman blamed zoning restrictions—local land-use rules governing things like how tall buildings can grow—for the lack of affordable housing, lost economic productivity, and rising inequality across the U.S.
On Tuesday, a San Francisco activist named Sonja Trauss took Furman's argument to the streets, filing a lawsuit in Contra Costa County (Calif.) to fight what she sees as a lost opportunity to build more housing.
Trauss's organization, the San Francisco Bay Area Renters Federation (yes, SFBARF), is suing the City of Lafayette, a Bay Area suburb of about 25,000, to block plans to build 44 single-family homes on a plot of land once slated for a 315-unit apartment complex. Her argument relies on a three-decade-old California law intended to check local governments’ ability to reduce the density of certain construction projects. Called the Housing Accountability Act, the law has been used successfully by developers of affordable housing who have had their projects blocked, Trauss said, but never by an advocacy group advocating for greater density as a public good.
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Patrick Clark, Bloomberg
Comparing Contracts: A Review of the AIA 201 and ConsensusDocs - Part I
March 22, 2018 —
Michael Sams and Amanda Cox – Construction Executive, A publication of Associated Builders and Contractors. All Rights Reserved.Here’s a helpful comparison of and analysis of some important contract sections in the
AIA 201 (2007 and 2017 versions) and
ConsensusDocs (2014 and 2017 versions). While not intended to be all inclusive, this summary comparison of the contract documents will run as a three-part series. Part I covers Financial Assurances, Design Risk, Project Management and Contract Administration. Part II will cover Schedule/Time, Consequential Damages/LDs, Claims and Disputes/ADR. Part III will cover Insurance and Indemnification and Payment.
FINANCIAL ASSURANCES
- What assurances are there that the owner can pay for the project?
- The Contractor should have the right to request and obtain proof that the Owner has funding sufficient to pay for the Work. The provision should also provide that the Contractor may terminate the Contract if the Owner refuses to allow a review of funding documents, or should the Contractor reasonably determine that the Owner does not have sufficient funds to pay for the Work.
Relevant Sections:
- A201 2007 Section 2.2.1; 2017 Section 2.2.1-2.2.2 A201
- 2014 & 2017 ConsensusDocs 200: Section 4.2
AIA:
- Section 2.2.1 A201 2007 & 2017: Both editions require the Owner, upon Contractor’s written request, to provide, “reasonable evidence that the Owner has made financial arrangements to fulfill the Owner’s obligations under the Contract.” Thereafter, the Contractor may only request such evidence if (1) the Owner fails to make payments; (2) a change in the Work materially changes the Contract Sum; or (3) the Contractor identifies in writing a reasonable concern regarding the Owner’s ability to make payment when due. If the Owner does not comply, the Contractor may stop work.
- Additionally, A201 2017 Section 2.2.2 awards costs to the Contractor for demobilization and remobilization.
Reprinted courtesy of
Michael Sams , Kenney & Sams and
Amanda Cox, Kenney & Sams
Mr. Sams may be contacted at mpsams@KandSlegal.com
Ms. Cox may be contacted at ajcox@KandSlegal.com
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Penn Station’s Revival Gets a $1.6 Billion Down Payment
February 08, 2021 —
James S. Russell - BloombergThe newly opened Moynihan Train Hall at New York Penn Station, America’s busiest rail hub, is the culmination of a vision that New York Senator Daniel Patrick Moynihan first promoted in the early 1990s. Moynihan, a champion of civic-minded federal architecture, proposed converting a portion of the Farley Post Office building to expand the crowded and much-unloved Penn Station facilities underneath Madison Square Garden. That scheme was repeatedly delayed, but on January 1, 2021, the result of those efforts – a $1.6 billion train hall designed by architectural firm Skidmore, Owings & Merrill (SOM) – welcomed its first passengers.
It’s a beautiful new space. Roofed by elegant bubbles of glass tensioned by almost-invisible cables, the shafts of daylight in contrast to the gloom of the long-neglected Penn Station are heartening. The hall is lined by glass-walled ticket offices for the Long Island Railroad and Amtrak. Sleek new escalators descend to the platforms. Airy new entrances draw passengers from the west. Above one entrance, breakdancers ebulliently leap from cloud to cloud in a stained-glass sky — an artwork by Kehinde Wiley. Above the other, an abstract skyline by Elmgreen & Dragset hangs overhead like urban stalactites. A waiting room evokes a suavely Art Deco diner. Moynihan Hall is a bracing restorative vision, at a time when rail travel needs all the help it can get.
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James S. Russell, Bloomberg
Insured’s Bad Faith Insurance Claim Evaporates Before its Eyes
August 03, 2020 —
Garret Murai - California Construction Law BlogSometimes it’s right there before your eyes. Then, poof, it’s gone. This was the experience of one insured, who brought a bad faith insurance denial claim against his insurer thinking that the facts were in his favor, only to discover they were not.
The 501 E .51st Street Case
The Water Main Break and AGI’s Report
The owner of a 10-unit apartment building built in 1963, 501 East 51st Street, Long Beach-10 LLC (just rolls off the tongue doesn’t it?), filed a bad faith action against its insurer Kookmin Best Insurance Co., Ltd., after it denied 501 East’s insurance tender following a water main break that caused the building’s foundation to subside.
The water main break occurred sometimes between December 31, 2015 and January 2, 2016 next to the southwest side of the building. 501 East tendered its insurance claim to Kookmin on March 8, 2016, and in April 2016, presented a report prepared by American Geotechnical, Inc. (“AGI”) concerning damage to the building. According to the report prepared by AGI, AGI conducted a “limited geotechnical investigation” to “evaluate site conditions relating to the reported building distress following a waterline breach near the south end of the building.” The scope of AGI’s investigation was limited to “observation, photo documentation of the site conditions, [and[ floor-level survey of the interior of the first level units.” AGI’s investigation did not involve any subsurface investigation or soil testing.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com