Forethought Is Key to Overcoming Construction Calamities
February 10, 2020 —
Mitch Cohen - Construction ExecutiveWithout warning, an under-construction structure in the southern United States suffered a catastrophic collapse. The tragedy resulted in the death of several people. As a result, engineering and construction post-collapse forensics experts engaged in an 18-month investigation.
Those involved in the design and build project included the general contractor hired by the owner, a prime engineer, a consulting peer-review engineer and a prime structural design firm supported by a sub-consulting structural engineer. Although significant cracking was noticed several weeks before the failure, no one sounded the alarm or deemed the cracking worthy of corrective action.
In their findings, forensic experts found the collapse resulted from the combined failure of the general contractor, engineers and even the owner, who all failed to shut down the work once the cracking reached unacceptable levels and/or take the appropriate actions needed to secure the public safety and mitigate the risk. This was even after the general contractor requested that the engineer-of-record and design manager assess the structure’s extreme cracking. Consequently, the choice to not seriously investigate the crack or seek an independent peer review to design a rectification plan contributed directly to the tragedy. This is typically referred to within the industry as a “negligent professional design error.”
Reprinted courtesy of
Mitch Cohen, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Cohen may be contacted at
mitch.cohen@rtspecialty.com
Appellate Court Lacks Jurisdiction Over Order Compelling Appraisal
January 16, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Eleventh Circuit recently held that the district court's order compelling appraisal and staying the proceedings pending appraisal was an interlocutory order that was not immediately appealable under 28 U.S.C. 1292 (a) (1). Positano Place at Naples Condominium Association, Inc. v. Empire Indem. Ins. Co., 2023 U.S. App. LEXIS 27961 (11th Cir. Oct. 20, 2023).
Postiano Condominium Association suffered damage from Hurricane Irma. Pastiano notified its insurer, Empire, seven months later. Empire investigated the claim and inspected the property. Positano sent a written request for appraisal. Empire did not respond and Pastiano filed suit, alleging that the parties' dispute was not a coverage dispute but a dispute over the amount of the loss. Postiano moved to compel appraisal and to stay the proceedings pending completion of the appraisal.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
The Coverage Fun House Mirror: When Things Are Not What They Seem
December 14, 2020 —
Randy J. Maniloff - White and Williams LLPWhen it comes to commercial general liability coverage, sometimes things are not what they seem. Some policy language looks like it has a clear meaning. But it turns out that there is more than meets the eye. To see this, you need not look further than the first page of the commercial general liability form. Take its insuring agreement. Its words are by now etched in stone tablets. But even so.
Any potential coverage is tied, in part, to damages because of “bodily injury.” Everyone knows what “bodily injury” is. The blood and broken bones are hard to miss. But is emotional injury bodily injury? Or what about hair loss, weight loss, fragile fingernails, loss of sleep, crying or a knot in your stomach? Courts have been required to address whether all of these are “bodily injury.”
And was that “bodily injury” caused by an “occurrence?” as required by the CGL insuring agreement? An “occurrence” is defined as an accident. Of course everyone knows what an accident is. Then why is it the oldest and most litigated coverage question of them all, with courts struggling with it for about 150 years?
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Randy J. Maniloff, White and Williams LLPMr. Maniloff may be contacted at
maniloffr@whiteandwilliams.com
GRSM Team Wins Summary Judgment in Million-Dollar HOA Dispute
December 17, 2024 —
Robert A. Bragalone & B. Ryan Fellman - Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani Partner Bob Bragalone and Senior Counsel Ryan Fellman won a complete summary judgment on behalf of five board members who had been added to an HOA dispute by the defendant homeowners. The GRSM team resolved the matter within just 60 days of taking over the case, bringing an end to a legal battle that had lasted more than four years.
The dispute began when the HOA, as plaintiff, filed suit against the homeowners in Denton County District Court. The HOA alleged that the homeowners had violated the HOA’s Covenants, Conditions, and Restrictions by constructing a non-conforming carport and sought a declaratory judgment to resolve the issue. In response, the homeowners filed a counterclaim and third-party petition, adding the individual HOA board members to the lawsuit. They accused the board members—who were serving in a voluntary capacity—of mishandling the dispute and filed claims against them for intentional infliction of emotional distress, negligence, and gross negligence.
Reprinted courtesy of
Robert A. Bragalone, Gordon Rees Scully Mansukhani and
B. Ryan Fellman, Gordon Rees Scully Mansukhani
Mr. Bragalone may be contacted at bbragalone@grsm.com
Mr. Fellman may be contacted at rfellman@grsm.com
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ASCE Statement on House Passage of Infrastructure Investment and Jobs Act
November 15, 2021 —
American Society of Civil EngineersThe following is a statement by Dennis D. Truax, P.E., President, American Society of Civil Engineers (ASCE):
WASHINGTON, DC. – It is a great day for the nation as the U.S. House of Representatives passed the Infrastructure Investment and Jobs Act (IIJA), fulfilling President Biden's vision with a historic piece of legislation that will have monumental impacts on the economy, public safety, global competitiveness, and each American's well-being. Passage of this five-year, $1.2 trillion bill proves once again that the country can lead with infrastructure.
With this legislation, the federal government will restore their critical partnership with cities and states to modernize our nation's roads, bridges, transit systems, drinking water pipes, school facilities, broadband, ports, airports and more. Without a strong federal partner, local projects that are community lifelines have hung in the balance, oftentimes being paused or outright cancelled due to funding uncertainties. When this happens, American households and businesses are the ones who pay the price.
The IIJA is the culmination of decades of advocacy by American Society of Civil Engineers (ASCE) members who worked tirelessly to educate Congress about the role infrastructure plays in supporting the economy and our quality of life. ASCE's Infrastructure Report Cards have sounded the alarm on our nation's infrastructure conditions since 1998, with new reports being released every four years. While all categories of infrastructure have been the cause of some concerns, the common denominator behind each category's struggles has been a backlog of projects, overdue maintenance, and a need for resilience. This bill includes investments to repair and modernize these critical assets for almost all of the 17 categories in the 2021 Report Card for America's Infrastructure, which assigned our nation's infrastructure a cumulative grade of 'C-'.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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Northern District of Mississippi Finds That Non-Work Property Damages Are Not Subject to AIA’s Waiver of Subrogation Clause
July 11, 2018 —
Shannon M. Warren - The Subrogation StrategistIn recent months, the Northern District of Mississippi has grappled with how to interpret waivers of subrogation in American Institute of Architects (AIA) construction industry contracts and, specifically, how they apply to work versus non-work property. The distinction between work and non-work property has been commonly litigated and remains a hotly debated topic when handling subrogation claims involving construction defects.
In Liberty Mutual Fire Ins. Co. v. Fowlkes Plumbing, 2018 U.S. Dist. LEXIS 23515 (February 12, 2018), a fire consumed the entire insured risk when one of the defendants was performing window restoration services. Subsequently, the insured’s subrogated insurer filed suit against several defendants involved in the construction project at issue. In response to the defendants’ motion for summary judgment, the District Court for the Northern District of Mississippi considered whether the waiver of subrogation clause in AIA contract form A201-2007 precluded the subrogated insurer from recovering damages from the defendants. The court held that the waiver of subrogation provision contained in AIA document A201-2007 barred the insurer from recovering for damages to the work itself, but did not apply to non-work property.
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Shannon M. Warren, White and Williams LLPMs. Warren may be contacted at
warrens@whiteandwilliams.com
New 2021 ALTA/NSPS Land Title Survey Standards Effective February 23, 2021
March 01, 2021 —
Emily K. Bias & Josh D. Morton - Gravel2Gavel Construction & Real Estate BlogThe “Minimum Standard Detail Requirements for ALTA/NSPS Land Title Surveys” is a document jointly promulgated by the American Land Title Association (ALTA), representing the title insurance industry, and the National Society of Professional Surveyors (NSPS), representing professional land surveyors, which describes the uniform minimum standards with which surveyors must comply when preparing a survey to be used by a title insurance company for the purpose of deleting the general survey exception from ALTA title policy forms. The first such set of standards was developed in 1962 and has since been revised 10 times. The standards are currently updated every five years and are relied on by real estate professionals, including purchasers, lenders, title insurers and their attorneys, nationwide. In October 2020, a joint committee comprising representatives of both ALTA and NSPS adopted the “2021 Minimum Standard Detail Requirements for ALTA/NSPS Land Title Surveys,” which will become effective on February 23, 2021. The significant changes between the 2021 standards and the previous 2016 standards are summarized below.
Survey Matters
The 2021 standards clarify that only survey-related matters must be summarized on the survey. This revision was intended to foreclose a practice common among some institutional lenders to require that the survey list all items shown in Schedule BII of the title commitment on the face of the survey regardless of whether those items may in fact be survey related. The 2021 standards also add a requirement that the surveyor include a note specifying whether the location of a right of way, easement or other survey-related matter is shown on the survey. This change incorporates common lender and purchaser requirements that were not previously enumerated in the survey standards.
Reprinted courtesy of
Emily K. Bias, Pillsbury and
Josh D. Morton, Pillsbury
Ms. Bias may be contacted at emily.bias@pillsburylaw.com
Mr. Morton may be contacted at josh.morton@pillsburylaw.com
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Insurer Not Entitled to Summary Judgment Based Upon Vandalism Exclusion
June 18, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe court denied the insurer's motion for summary judgment on plaintiff's breach of contract claim because there was a disputed issue of fact regarding the applicability of the vandalism exclusion. Poole v. Untied Servs. Auto. Assn., 2014 N.Y. Misc. LEXIS 2394 (N.Y. Sup. Ct. May 16, 2014).
The plaintiff rented a residence to tenants. The tenants performed repairs to the residence which resulted in damage in excess of $126,000. The tenants vacated the residence. The plaintiff submitted a claim to USAA for benefits under her homeowners' policy.
USAA denied coverage based upon exclusions for damage caused by, among other things, faulty workmanship, renovation and remodeling. Plaintiff sued and USAA moved for summary judgment.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com