Duty to Defend Requires Payments Under Policy's Supplemental Payments Provision
February 16, 2017 —
Tred R. Eyerly – Insurance Law HawaiiThe California Court of Appeal determined there was no duty to indemnify and the insured had to reimburse the insurer's contribution to a settlement. Nevertheless, there was a duty to defend, meaning the insured did not have to reimburse amounts it was entitled to under the supplemental payments provision. Navigators Specialty Ins. Co. v. Moorefield Constr., 2016 Cal. App. LEXIS 1132 (Cal. Ct. App. Dec. 27, 2016).
Moorefield was the general contractor for a shopping center project to be developed by DBO Development No. 28 (DBO). The project included the construction of a 30,055-square-foot building to by used as a Best Buy store. In January 2002, DBO entered a 15-year lease with Best Buy.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Safety, Technology Combine to Change the Construction Conversation
September 30, 2019 —
Neil Riddle & Brent Burger - Construction ExecutiveNew technologies are redefining how to plan, build and deliver the full spectrum of construction projects. Automation, software and new processes are changing the construction industry in unprecedented ways, and construction management is evolving along with it. Construction companies are adapting—using innovative tools and resources, joined by more aggressive risk management and decision-making methods. All the while, safety remains at the heart of every successful new build.
Envisioning the Modern Job Site
Productivity has increased by leaps and bounds as processes have gotten faster and cheaper. Twenty years ago, the industry looked completely different— a $500 million project would have taken four years to deliver; today, it can be done in 29 months.
These new projects are becoming incredibly complex as new technologies change the size and scope, giving rise to more specialization and fragmentation. Building projects faster with fewer people requires a whole new level of preparation. This is where advanced planning and advanced work packaging can play a big role—by informing exactly how the material is going to arrive, how it will be staged, how it will be fabricated and how the area can be best managed to deliver the work.
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Neil Riddle & Brent Burger, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Riddle may be contacted at RiddleRN@bv.com
Mr. Burger may be contacted at BurgerBB@bv.com
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The International Codes Development Process is Changing to Continue Building Code Modernization
March 06, 2023 —
The International Code CouncilWashington D.C., March 02, 2023 (GLOBE NEWSWIRE) -- The International Code Council is revising its rigorous code development process. The changes will take effect in 2024-2026 for the development of the 2027 International Codes (I-Codes) and will move the development process to an integrated and continuous three-year cycle.
In the new timeline, year one will include two Committee Action Hearings for Group A Codes; year two will include two Committee Action Hearings for Group B Codes; and year three will be the joint Public Comment Hearings and Online Governmental Consensus Vote for both Group A and B Codes.
The addition of the second Committee Actions Hearings in year one and two will foster a more in-depth vetting of code change proposals, allowing an opportunity for the committee members to review and evaluate the original proposals and consider the submitted responses. This also provides more opportunity for proponents to build consensus for their code change proposal and ensure the best version of their intended improvement to the existing codes.
Additionally, with combined Public Comment Hearings in the third year, voting members are able to vote on all suggested changes to the next edition of the I-Codes at one time. The updated process also provides more opportunity for proposed new referenced standards to be developed and finalized on a consistent timeline regardless of the group (Group A or B) with which they are associated.
About the International Code Council
The International Code Council is the leading global source of model codes and standards and building safety solutions. Code Council codes, standards and solutions are used to ensure safe, affordable and sustainable communities and buildings worldwide.
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2018 Construction Outlook: Mature Expansion, Deceleration in Some Sectors, Continued Growth in Others
January 24, 2018 —
Garret Murai – California Construction Law BlogU.S. construction starts are expected to increase 3 percent to $765 billion in 2018 according to
Dodge Data & Analytics in its 2018 Dodge Construction Outlook. But we may be approaching the end of a construction boom, at least in certain industry segments.
The construction industry as a whole is in a “mature stage of expansion,” indicates Robert Murray, Chief Economist for Dodge Data & Analytics. “After rising 11% to 13% per year from 2012 through 2015, total construction starts advanced a more subdued 5% in 2015. An important question entering 2017 was whether the construction industry had the potential for further expansion,” explained Murray.
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Garret Murai, Wendel, Rosen, Black, Dean, LLP Mr. Murai may be contacted at
gmurai@wendel.com
Supreme Court Upholds Prevailing Wage Statute
August 19, 2024 —
Ahlers Cressman & Sleight PLLCHistorically, the prevailing wage was calculated by averaging the wages within a certain industry and county. However, in 2018 the Washington Legislature amended the statute so that the prevailing wage would be assessed based on the highest wage set by collective bargaining agreements in the county. The amendment (RCW 39.12.015(3)) reads as follows:
(3)(a)…the industrial statistician shall establish the prevailing rate of wage by adopting the hourly wage, usual benefits, and overtime paid for the geographic jurisdiction established in collective bargaining agreements…
(b) For trades and occupations in which there are no collective bargaining agreements in the county, the industrial statistician shall establish the prevailing rate of wage by…conducting wage and hour surveys.
So, for example, if union engineers bargain for a wage, that is the wage all engineers in the county must be paid on public projects. The legislature passed this law for the sake of efficiency because it took significant resources for the Industrial Statistician to compute the prevailing wage for every trade and every county, but the law has significant knock-on effects.
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District Court of Missouri Limits Whining About the Scope of Waiver of Subrogation Clauses in Wine Storage Agreements
May 01, 2019 —
Gus Sara - The Subrogation StrategistIn Netherlands Ins. Co. v. Cellar Advisors, LLC, 2019 U.S. Dist. Lexis 10655 (E.D. Mo.), the United States District Court for the Eastern District of Missouri considered the scope of a waiver of subrogation clause in two wine storage agreements. The court held that the subrogation waivers were limited in scope and, potentially, did not apply to the damages alleged in the pleadings. This case establishes that, in Missouri, waivers of subrogation are narrowly construed and cannot be enforced beyond the scope of the specific context in which they appear.
In 2005, Krista and Reid Buerger (the Buergers) contracted Marc Lazar (Lazar) to assist with purchasing, transporting and storing their wine. In 2006, the Buergers entered into a contract with Lazar’s company, Domaine StL, for the storage of their wine in St. Louis. In 2012, the Buergers contracted with Lazar’s other company, Domaine NY, for storage of their wine in New Jersey. The 2006 and 2012 contracts included subrogation waivers. Pursuant to the contracts, Lazar and the Domaine companies (collectively, Defendants) would buy wine for the Buergers by either using the Buergers’ credit card or invoicing them after a purchase.
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Gus Sara, White and Williams LLPMr. Sara may be contacted at
sarag@whiteandwilliams.com
Ohio Condo Owners Sue Builder, Alleging Construction Defects
September 10, 2014 —
Beverley BevenFlorez-CDJ STAFFSeventy-four condominium owners that reside in the Villas at Northstar in Westerville, Ohio, have sued Romanelli & Hughes, the builder, for alleged construction issues that led to water intrusion, according to The Columbus Dispatch.
“There have been noted deficiencies at every building out there, with both the roofs and wall systems,” Kevin Fields, a partner at Kasman & Cusimano, the firm that is representing the condo owners, told The Columbus Dispatch. “There’s been severe water infiltration through the walls, which has caused underlying damage, and various roof leaks and roofs not properly secured — in essence, sliding off the buildings.”
Counsel for the builder, Gabe Roehrenbeck, a partner with Thompson Hines law firm, stated that “he could not comment on the specifics of the case…because he has not had time to analyze it.” But he issued the statement, “Romanelli & Hughes is an award-winning builder that over the course of more than 40 years has built a reputation for client service and satisfaction.”
Construction defects listed in the suit include “failure to install or improper installation of flashing, ice shields, roofing paper, shingles, control joints in stucco and weather-resistant barriers.”
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Colorado Senate Revives Construction Defects Reform Bill
January 04, 2018 —
BEVERLEY BEVENFLOREZ - CDJ STAFFOriginally Published by CDJ on March 1, 2017
A re-booted construction defects reform bill recently passed its first Senate committee, according to the Denver Business Journal. Next, Senate Bill 156, sponsored by Sen. Owen Hill, R-Colorado Springs, heads to the Senate floor for debate.
SB 156 “would require that condominium owners alleging construction defects take their disputes to arbitration or mediation if requested by builders,” the Denver Business Journal reported. “It also would require that homeowners be informed of the consequences of filing legal actions over purported disputes and that a majority of all owners in a condominium complex vote to proceed with legal action, rather than just a majority of homeowners association board members.”
However, it is almost identical to the failed measures that were introduced in 2014 and 2015.
Homeowners association group members and owners of defective condominiums argued against the measure, stating “that the effort would not improve the quality of building in the state, but simply would block aggrieved Coloradans from taking their complaints before a jury of their peers.”
Proponent of the bill, Tom Clark, CEO of Metro Denver Economic Development Corp., said “that Denver’s housing costs have risen since the first bill was introduced in 2013 to the sixth-most-expensive in the country – and are tops for any metro area not on a coast.”
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