CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

CEB’s Mechanics Liens and Related Remedies – 2014 Update

November 26, 2014 — Garret Murai – California Construction Law Blog
I’ve been writing for the CEB – the Continuing Education of the Bar – which publishes legal practice guides for lawyers for some time now. But I don’t think I’ve been quite as excited to write for the CEB than writing for its publication, California Mechanics Liens and Related Construction Remedies, for the first time this year. Particularly, since it’s one of the first publications I used as a young lawyer to learn about construction law, and still use today. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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Liability Insurer’s Duty To Defend Insured Is Broader Than Its Duty To Indemnify

June 03, 2019 — David Adelstein - Florida Construction Legal Updates
When it comes to liability insurance, an insurer’s duty to defend its insured from a third-party claim is much broader than its duty to indemnify. This broad duty to defend an insured is very important and, as an insured, you need to know this. “A liability insurer’s obligation, with respect to its duty to defend, is not determined by the insured’s actual liability but rather by whether the alleged basis of the action against the insurer falls within the policy’s coverage.” Advanced Systems, Inc. v. Gotham Ins. Co., 44 Fla. L. Weekly D996b (Fla. 3d DCA 2019) (internal quotation omitted). This means: Even where the complaint alleges facts partially within and partially outside the coverage of a policy, the insurer is nonetheless obligated to defend the entire suit, even if the facts later demonstrate that no coverage actually exists. And, the insurer must defend even if the allegations in the complaint are factually incorrect or meritless. As such, an insurer is obligated to defend a claim even if it is uncertain whether coverage exists under the policy. Furthermore, once a court finds that there is a duty to defend, the duty will continue even though it is ultimately determined that the alleged cause of action is groundless and no liability is found within the policy provisions defining coverage. Advanced Systems, supra(internal citations and quotations omitted). Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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New York Court Holds Insurer Can Rely on Exclusions After Incorrectly Denying Defense

March 26, 2014 — Tred R. Eyerly – Insurance Law Hawaii
Reversing its prior decision, the New York Court of Appeals held that the insurer could raise policy exclusions regarding its duty to indemnify after it incorrectly denied its duty to defend. K2 Invest. Group, LLC v. Am. Guar. & Liab. Co., 2014 N.Y. LEXIS 201 (N.Y. Ct. App. Feb. 18, 2014). The insured was sued for legal malpractice. His insurer, American Guarantee, refused to defend and a default judgment was entered. The insured assigned his rights against American Guarantee to the plaintiffs. When the underlying plaintiffs sued, American Guarantee said coverage was barred by two exclusions. In a previous decision, K2 Inv. Group, LLC v. Am Guar. & Liab. Ins. Co., 21 NY 3d 284, the court held that American Guarantee's breach of its duty to defend prevented it from relying on policy exclusions. This, however, contradicted another case issued by the court, Servidone Const. Corp. v. Security Ins. Co. of Hartford, 64 N.Y 2d 419 (1985). 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

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Washington Supreme Court Upholds King County Ordinance Requiring Utility Providers to Pay for Access to County’s Right-of-Way and Signals Approval for Other Counties to Follow Suit

March 02, 2020 — Kristina Southwell - Ahlers Cressman & Sleight PLLC
On December 5, 2019, the Washington State Supreme Court released its opinion in King County v. King County Water Districts, et al.,[1] upholding King County’s Ordinance 18403, which requires utility companies who are franchise grantees to pay “franchise compensation” for their use of the County rights-of-way. Generally, utility companies must apply for and obtain from the County a franchise permitting it to do necessary work in the County rights-of-way. [2] Previously, King County only charged an administrative fee associated with issuing such a franchise. But with the new franchise compensation charges, King County estimates that it will raise approximately $10 million dollars per year for its general fund. Ordinance 18403 passed in November 2016 and was the first of its kind in the state. The ordinance created a rule, set forth in RCW 6.27.080, requiring electric, gas, water, and sewer utilities who are granted a franchise by King County to pay “franchise compensation” in exchange for the right to use the County’s rights-of-way. The rule provides that franchise compensation is in the nature of an annual rent payment to the County for using the County roads. King County decides an initial estimate of the charge by considering various factors such as the value of the land used, the size of the area that will be used, and the density of the households served. But utility companies can negotiate with the County over the final amount of franchise compensation. Read the court decision
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Reprinted courtesy of Kristina Southwell, Ahlers Cressman & Sleight PLLC
Ms. Southwell may be contacted at kristina.southwell@acslawyers.com

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Anti-Concurrent Causation Clause Bars Coverage for Pool Damage

February 23, 2016 — Tred R. Eyerly – Insurance Law Hawaii
Relying upon the policy's anti-concurrent causation clause, the Illinois Court of Appeals affirmed the trial court's ruling that there was no coverage for a pool that popped out of the ground. Bozek v. Erie Ins. Group, 2015 Ill. App. LEXIS 940 (Ill. Ct. App. Dec. 17, 2015). Following a rainstorm, the insureds reported damage to the swimming pool to Erie. An investigation determined that the heavy rain saturated soils around the pool. This created a significant uplift hydrostatic pressure. The weight of the water in the pool typically prevented the uplift forces, but the pool had been emptied to clean debris making it susceptible to uplift. The pool had a pressure relief valve to prevent uplift, but it was not working properly. As a result, the pool was damaged to the point that it had to be replaced in its entirety. The heaving of the pool also damaged the concrete slab around the pool, which also had to be replaced. 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

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Arizona Court Cites California Courts to Determine Construction Defect Coverage is Time Barred

December 30, 2013 — CDJ STAFF
Construction defect claims in an Arizona community are time barred and so the judge had determined that National Fire & Marine Insurance is not liable for coverage. National Fire claimed that while there was no Arizona case law concerning statutes of limitations for equitable contributions by insurance carriers, the court agreed that “its position is directly supported by cases from other jurisdictions.” In the underlying construction defect case, Steadfast Insurance had settled with homeowners over allegations of construction defects. National Fire was a co-insurer and declined coverage. National Fire’s citing of two California cases was not unique for the Arizona courts. Other Arizona cases cited the same two California cases. Read the court decision
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Reprinted courtesy of

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Florida Appellate Court Holds Four-Year Statute of Limitations Applicable Irrespective of Contractor Licensure

June 22, 2016 — Clay Whittaker – Florida Construction Law Update
In Brock v. Garner Window & Door Sales, Inc.,[1] Florida’s Fifth District Court of Appeal rejected a novel attempt to circumvent Florida’s well-established four-year statute of limitations for all actions founded on the construction of an improvement to real property. Plaintiff filed a lawsuit alleging breach of contract as a result of water intrusion damage following the installation of windows.[2] It was undisputed that Plaintiff commenced the litigation more than four years following the discovery of the allegedly latent defect in the window installation.[3] Plaintiff’s counsel argued that the window contractor could not rely on the four-year statute of limitations because the window subcontractor was not a licensed contractor and, therefore, the five-year statute of limitations for actions founded on written contracts should apply. Read the court decision
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Reprinted courtesy of Clay Whittaker, Cole, Scott, & Kissane, P.A.
Mr. Whittaker may be contacted at clay.whittaker@csklegal.com

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How To Lock Disputes Out Of Your Project In Construction

July 22, 2019 — Anastasios Koutsogiannis – LetsBuild
Disputes are seen as one of the main threats for the successful completion of a project in construction. There is a plethora of factors which could lead to a construction dispute (e.g. contracts, behavior, environment) but, strangely enough, the industry seems to invest more attention on the resolution of a conflict instead of its prevention. Thanks to the progress that digital technologies have witnessed during the last few years, there is a good chance that things in construction will change for the better soon. The ability to exchange crucial updates in real time, while keeping a detailed record of everything that happens on the field adds an extra level of protection to your project and ensures that all agents are on the same page. In an effort to shed some light on the issue of construction disputes, we present below four tips that could help your team to lock conflicts out of your project: 1. Standardize your processes Before you kickstart your project, it is of paramount importance that you standardize all your systems and processes. In that way, you will be able to add extra clarity to your workflow and eliminate misunderstandings. Once you have achieved that, you can replicate the same process to your future projects. The more you manage to repeat the same project structure the better your team will become in completing their tasks without ending up in any kind of conflict. In that sense, standardization could be a long-term investment for your organization. 2. Go digital As soon as your processes are defined, it is time for the digital journey to begin. Finding the right tool for your project will result in a streamlined construction process where all the members of the team are on the same page without any room for costly mistakes or disagreements. Furthermore, with the help of digital solutions it becomes easier for project managers to measure the performance on site and monitor the completion of the set benchmarks. Like that, all payments will be on time and the program of the project will reflect reality. 3. Be extra careful with the contracts A poorly-written contract can have a big impact on the effort to lock disputes out of your construction project. While putting together a new contract, you should always make sure that you have taken into account all the different scenarios for your project. Either that is a delay due to weather conditions or an accident on site everything should be described in detail in the contracts and be well understood by those in charge. In any other case, things can get a bit risky and a costly dispute might wait to happen. 4. Hold regular meetings with all stakeholders Last but certainly not least, meet regularly with all project stakeholders. The frequent contact with the different members of your team will allow you to discuss and resolve any problematic situations before they grow out of proportion. What is more, regular meetings will help both your field teams and the people in the office to remain aligned and will eliminate the possibility of having people working on outdated versions of the program. Of course, these meetings don’t need to be time-consuming or even in person. With the help of technology, you can keep these meetings short and to the point. In that manner, everybody involved will be able to get the most out of them. Final word All in all, it becomes clear that locking disputes out of your project in construction requires continuous work and a carefully-elaborated plan. Thankfully, the emergence and progress of digital solutions have made this process much easier contributing significantly to the development of the industry far from disputes and project misunderstandings. About the author: Anastasios Koutsogiannis is Content Marketing Manager at LetsBuild. Read the court decision
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Reprinted courtesy of Anastasios Koutsogiannis, LetsBuild

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