Collapse of Underground Storage Cave Not Covered
June 29, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe Eighth Circuit faced unusual facts in determining that the collapse of a cave serving as a storage facility was not covered under the policy. Westchester Surplus Lines Ins. Co. v. Interstate Underground Warehouse & Storage, Inc., 2020 U. S. App. LEXIS 83 8th Cir. Jan. 3, 2020).
Interstate operated an underground storage facility in a cave that formerly housed a limestone mine. In 2014, Interstate experienced a series of "dome-outs," in which layers of rock destabilized, detached, and collapsed from above into the cave.
Interstate's policy with Westchester included coverage for collapse of a "building" caused by "building decay." Westchester sought a declaratory judgment that Interstate's loss was not covered. The district court granted summary judgment for Westchester because the cause of the loss was not "building decay" within the meaning of the primary policy.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Why Is California Rebuilding in Fire Country? Because You’re Paying for It
March 14, 2018 —
Christopher Flavelle – BloombergAfter last year’s calamity, officials are making the same decisions that put homeowners at risk in the first place.
At the rugged eastern edge of Sonoma County, where new homes have been creeping into the wilderness for decades, Derek Webb barely managed to save his ranch-style resort from the raging fire that swept through the area last October. He spent all night fighting the flames, using shovels and rakes to push the fire back from his property. He was even ready to dive into his pool and breathe through a garden hose if he had to. His neighbors weren’t so daring—or lucky.
On a recent Sunday, Webb wandered through the burnt remains of the ranch next to his. He’s trying to buy the land to build another resort. This doesn’t mean he thinks the area won’t burn again. In fact, he’s sure it will. But he doubts that will deter anyone from rebuilding, least of all him. “Everybody knows that people want to live here,” he says. “Five years from now, you probably won’t even know there was a fire.”
As climate change creates warmer, drier conditions, which increase the risk of fire, California has a chance to rethink how it deals with the problem. Instead, after the state’s worst fire season on record, policymakers appear set to make the same decisions that put homeowners at risk in the first place. Driven by the demands of displaced residents, a housing shortage, and a thriving economy, local officials are issuing permits to rebuild without updating building codes. They’re even exempting residents from zoning rules so they can build bigger homes.
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Christopher Flavelle, Bloomberg
SEC Proposes Rule Requiring Public Firms to Report Climate Risks
April 11, 2022 —
Debra K. Rubin - Engineering News-RecordThe U.S. Securities and Exchange Commission issued a proposal March 21—both anticipated and feared—that would require publicly-traded companies to standardize disclosure for the first time of climate-related business risks such as those related to severe weather and decarbonization. Exchange-listed firms would also have to report greenhouse gas emissions, their own and in the supply chain, creating a major reporting mandate. The rules also apply to firms listed on overseas exchanges that operate in the U.S.
Reprinted courtesy of
Debra K. Rubin, Engineering News-Record
Ms. Rubin may be contacted at rubind@enr.com
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Digitalizing the Construction Site – Interview with Tenderfield’s Jason Kamha
August 30, 2017 —
Aarni Heiskanen - AEC BusinessHere’s my interview with Jason Kamha, Director at Tenderfield, an Australian construction software company.
Can you say a few words about yourself and your company?
Tenderfield is based in Sydney, Australia and was established in 2014. We provide a software-as-a-service (SAAS) platform that enables construction firms to collaborate on large construction projects throughout the tendering and project management phases.
A bit about myself, I have been working in the construction management field for over 10 years as an Estimator and a Contracts Administrator. I have always been interested in how technology can improve productivity and collaboration in construction. I worked on large projects and witnessed first-hand what can happen when information and people are disconnected.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
info@aepartners.fi
Combating Climate Change by Reducing Embodied Energy in the Built Environment
December 02, 2019 —
Brent Trenga - Construction ExecutiveThe building and construction industry is a significant consumer of non-renewable energy resources and is contributing to changing the earth’s environment in damaging and irreversible ways. These impacts are being felt in climate-related shifts that include increases in the earth’s average temperature and rising sea levels.
A new report by NASA and the National Oceanic and Atmospheric Administration shows that 2018 was the fourth-hottest year since 1880, the earliest year for which reliable global temperature data is available. The three hottest years on record were 2015, 2016 and 2017.
Additionally, the rise in sea levels is causing “nuisance floods” to become more common. From the 1950s to the early 2000s, the days of flooding in the 27 most vulnerable cities across the United States grew from two per year to nearly 12.
These and other environmental impacts underscore the urgency of battling climate change and how critical it is for all industries—including construction—to stem the tide on this issue.
Reducing embodied energy in the built environment is one way the building and construction sector can do its part to address one of the major challenges of this century.
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Brent Trenga, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Trenga may be contacted at
brent.trenga@kingspan.com
Discussion of History of Construction Defect Litigation in California
September 10, 2014 —
William M. Kaufman – Construction Lawyers BlogCalifornia literally wrote the book on construction defect litigation. Construction defects began to surface after World War II due to cheap track homes being constructed haphazardly on a large scale. Throughout the 1960s, developers began utilizing the services of subcontractors to build massive developments. Rather than having their own employees perform the work, developers began relying more heavily on the specialty subcontractors to perform quality control functions. In 1969, the California Supreme Court expanded liability for developers with respect to residential housing through the concept of strict liability for mass produced homes. Strict liability defendants in construction defect cases may include builders of mass-produced homes, building site developers, component part manufacturers, and material suppliers. Courts have noted that there is little distinction between the “mass production and sale of homes and the mass production and sale of automobiles, and the pertinent overriding policy considerations are the same.” Kriegler v. Eichler Homes, Inc. (1969) 269 Cal. App. 2d 224, 227 (1969). Accordingly, developers of mass-produced tract homes may be held strictly liable whether or not there is privity of contract. Ibid. Courts have held, however, that there is no strict liability against contractors or sub-contractors. See Ranchwood Communities v. Jim Beat Construction (1996) 57 Cal.Rptr.2d 386; La Jolla Village Homeowners’ Assn., Inc. v. Superior Court (1989) 261 Cal.Rptr. 146. Within ten years, attorneys in California were using strict liability theories to seek compensation for homeowners. The initial strict liability lawsuits in California in the 70s and 80s generally applied to condominium projects. The Construction defect “industry” began to take off in the 1980s due to the housing boom and the enforcement of strict liability claims by the courts.
Reprinted courtesy of
William M. Kaufman, Lockhart Park LP
Mr. Kaufman may be contacted at wkaufman@lockhartpark.com, and you may visit the firm's website at www.lockhartpark.com
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Repeated Use of Defective Fireplace Triggers Duty to Defend Even if Active Fire Does Not Break Out Until After End of Policy Period
November 30, 2016 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Tidwell Enterprises v. Financial Pacific Ins. Co. (No. C078665, filed 11/29/16), a California appeals court held that that even though a house fire occurred after the policy period, there was nonetheless a possibility of coverage because the fire might have been the result of ongoing damage to the wood in the chimney chase during the policy period, due to the exposure of that wood to excessive heat from the chimney every time a fire was burned in the fireplace.
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Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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This New Indicator Shows There's No Bubble Forming in U.S. Housing
April 01, 2015 —
Michelle Jamrisko and Nina Glinski – BloombergWhen a parking space in Manhattan costs $136,000 and only 15 percent of San Francisco's homes are affordable for the middle class, it's easy to worry that another housing bubble is around the corner.
The vast majority of American homeowners have little to fear: A new gauge from Nationwide Insurance in Columbus, Ohio, suggests the national market is in its best shape since 2001 and there's no reason to fear a national downturn, no less a bursting bubble.
In its first data release, the national Leading Index of Healthy Housing Markets rose to 109.8 in the fourth quarter. Values greater than 100 indicate a robust industry. The index uses local data in 373 metropolitan statistical areas that are underlying drivers of the housing market, including measures on employment changes, demographics and the mortgage market.
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Michelle Jamrisko, Bloomberg and
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