CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Court Holds That Insurance Producer Cannot Be Liable for Denial of COVID-19 Business Interruption Claim

November 23, 2020 — Christopher P. Leise & Marc L. Penchansky - White and Williams LLP
After an insurance carrier denied a lawyer and her law firm’s claim for lost business income due to the COVID-19-related shutdown, she sued both her carrier and the insurance producer that procured the policy. See Wilson v. Hartford Casualty Company, No. 20-3384 (E.D.Pa. Sep. 30, 2020). In one of the first cases to consider producer liability in COVID-19 cases, Judge Eduardo Robreno dismissed the lawsuit against the producer and the carrier. USI procured the Policy from Hartford for Rhonda Hill Wilson and her law firm. The Policy included coverage for lost business income and extra expense caused by direct physical loss of, or damage to property. Similarly, the Policy covered lost business income if a nearby property experienced a direct physical loss that caused a civil authority to issue an order that prohibited access to the law firm’s property. The Policy also included a virus exclusion “for loss or damage caused directly or indirectly by . . . [p]resence, growth, proliferation, spread or any activity of . . . virus.” Judge Robreno did not decide whether the Policy afforded any coverage to Wilson and her law firm for their COVID-19 losses. Rather, he found that even if they could, the virus exclusion unambiguously barred any coverage they could possibly claim. For that reason, Judge Robreno dismissed the claims against Hartford. Reprinted courtesy of Christopher P. Leise, White and Williams LLP and Marc L. Penchansky, White and Williams LLP Mr. Leise may be contacted at leisec@whiteandwilliams.com Mr. Penchansky may be contacted at penchanskym@whiteandwilliams.com Read the court decision
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Wine without Cheese? (Why a construction contract needs an order of precedence clause)(Law Note)

August 11, 2011 — Melissa Brumback, Construction Law in North Carolina

For today’s law note, I’m addressing a comment that came to me last week from Dave O’Hern of Miller O’Hern Construction.  Dave writes:



I am a general contractor doing a fuel tank replacement project for our county. In the specifications there is a spec for a UL 142 tank, on the plans the spec references UL 2085 ? a much more expensive tank. My subcontractor bid the UL 142 tank. The specifications state that the specs and plans are on the same level of precedence.



The county wants me to furnish the more expensive tank without compensation citing the clause that states the plans and specs are complementary and what is called for by one is binding as if called by all and the most stringent requirement will apply.

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Reprinted courtesy of Melissa Brumback of Ragsdale Liggett PLLC. Ms. Brumback can be contacted at mbrumback@rl-law.com.

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Settlement Reached in California Animal Shelter Construction Defect Case

May 13, 2014 — Beverley BevenFlorez-CDJ STAFF
A construction defect case involving an animal shelter in Healdsburg, California has settled after two years of litigation, according to The Press Democrat. The $3.5 million, 7,500-square foot building had been “built largely with a behest from the estate of the late vintner Rodney Strong and his wife, Charlotte.” However, “shortly before the facility could be completed in late 2011, general contractor Syd Kelly went bankrupt. Unpaid sub-contractors filed liens for payment against the Healdsburg Animal Shelter, which in turn alleged construction and design defects in the building.” The Press Democrat reported that “[t]he most visible signs of problems were cracks in the cement foundation.” Robert Wilkie, the Healdsburg Animal Shelter board’s secretary-treasurer, stated that the shelter is “perfectly structurally viable and a rather attractive building” and that “the defects that make it not usable today can be mitigated in a variety of different ways.” Read the court decision
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New York Appellate Court Expands Policyholders’ Ability to Plead and Seek Consequential Damages

February 27, 2019 — Michael S. Levine & Joshua S. Paster - Hunton Andrews Kurth
In a huge win for policyholders, a New York appellate court, in D.K. Property, Inc. v National Union Fire Insurance Company of Pittsburgh, Pa., held that an insured need not provide a detailed factual description or explanation for why consequential damages are recoverable at the pleading stage. Rather, an insured’s complaint must only (i) specify the types of consequential damages claimed; and (ii) allege that those damages reasonably were contemplated by the parties prior to contracting. Here, D.K. Property’s building was damaged as a result of construction on an adjoining building, and it timely filed a claim with National Union under a policy that covers “direct physical loss or damage to” the building. National Union neither paid the claim nor disclaimed coverage. Instead, according to D.K. Property, National Union made unreasonable and increasingly burdensome information demands over a three-year period, which it alleges was a “tactic” to make pursuing the claim so expensive that D.K. Property would abandon the claim. As a result of the delay, D.K. Property alleges the structural damage to its building has worsened. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Joshua S. Paster, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Paster may be contacted at jpaster@HuntonAK.com Read the court decision
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Contractor Allegedly Injured after Slipping on Black Ice Files Suit

January 22, 2014 — Beverley BevenFlorez-CDJ STAFF
Albert Jimenez, a contractor working in Philadelphia, Pennsylvania “has filed a civil action against the real estate group that owns the complex over claims that he became injured after slipping on black ice at the property” according to the Pennsylvania Record. The defendant, The Council of Fairmont, is accused “of negligence for failing to identify the dangerous defect in the parking lot, in this case, the patch of black ice, and failing to correct the hazardous condition,” the Pennsylvania Record reports. “Jimenez seeks an unspecified amount of compensatory damages, plus interest and litigation costs.” Read the court decision
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Eleventh Circuit Upholds Coverage for Environmental Damage from Sewage, Concluding It is Not a “Pollutant”

May 24, 2018 — Lorelie S. Masters & Alexander D. Russo - Hunton Insurance Recovery Blog
On April 20, 2018, the Eleventh Circuit affirmed an Alabama district court decision finding that an “absolute pollution exclusion” did not bar coverage for environmental property damage and injuries from a sewage leak. Evanston Ins. Co. v. J&J Cable Constr., LLC, No. 17-11188, 2018 WL 1887459, (11th Cir. Apr. 20, 2018). J&J Cable was hired to install underground electrical conduit in a subdivision when it struck and broke the sewer pipe to two homes. As a result, sewage backed up into the homes causing property damage and personal injuries. The commercial general liability policy at issue contained an “absolute pollution exclusion,” which sought to bar coverage for “bodily injury” and “property damage” arising out of the actual, alleged, or threatened discharge, dispersal, seepage, migration, release or escape of “any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste.” The insurer relied on an earlier Alabama federal district court decision, which precluded coverage for liability from lead paint exposure, concluding that lead was a pollutant under a similar exclusion. The Eleventh Circuit disagreed, recognizing that insurance is a state law issue and opting instead to rely on binding state court precedent. The Eleventh Circuit, therefore, found that the decision in U.S. Fid. & Guar. Co. v. Armstrong, 479 So. 2d 1164 (Ala. 1985), by the state’s highest court, the Alabama Supreme Court, governed. That case made a distinction between industrial waste and residential sewage. Accordingly, the Eleventh Circuit found that the “absolute pollution exclusion” did not preclude coverage for liability for injuries caused by sewage. Reprinted courtesy of Lorelie S. Masters , Hunton Andrews Kurth and Alexander D. Russo , Hunton Andrews Kurth Ms. Masters  may be contacted at lmasters@HuntonAK.com Mr. Russo  may be contacted at arusso@huntonak.com Read the court decision
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White and Williams Recognizes Women’s History Month: Remembering Virginia Barton Wallace

April 08, 2024 — White and Williams LLP
March is Women’s History Month – a month dedicated to the accomplishments and history of women in the United States. The theme for International Women’s Day, which is this Thursday March 7, is “Inspire Inclusion.” White and Williams LLP is dedicated to understanding, valuing and inspiring inclusion in the field of law White and Williams is proud of the women who have become leaders in the firm’s history, starting with Virginia “Ginny” Barton Wallace, an extraordinarily accomplished pioneer among female attorneys. She joined the firm immediately after graduating from University of Pennsylvania School of Law in 1950, and in 1961, Ginny became the first woman to become the first female partner not only at White and Williams but also at any law firm in Philadelphia. Read the court decision
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One Colorado Court Allows Negligence Claim by General Contractor Against Subcontractor

December 20, 2012 — HEATHER ANDERSON , HIGGINS, HOPKINS, MCLAIN & ROSWELL
Judge Paul King of the Douglas County District Court recently confirmed that subcontractors in residential construction owe an independent duty, separate and apart from any contractual duties, to act without negligence in the construction of a home in Colorado. See Order, dated September 7, 2010, Sunoo v. Hickory Homes, Inc. et al., Case No. 2007CV1866; see also Cosmopolitan Homes, Inc. v. Weller, 663 P.2d 1041 (Colo. 1983); A.C. Excavating v. Yacht Club II Homeowners Ass’n, Inc., 114 P.3d 862 (Colo. 2005). He also verified that the holding in the B.R.W. Inc. v. Dufficy & Sons, Inc., 99 P.3d 66 (Colo. 2004)[1] case does not prohibit general contractors, such as Hickory Homes, from enforcing a subcontractor’s independent duty to act without negligence in the construction of a home. Read the court decision
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Reprinted courtesy of Heather Anderson, Higgins, Hopkins, McLain & Roswell, LLC.
Ms. Anderson can be contacted at anderson@hhmrlaw.com

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