Cambridge Massachusetts Building Expert Directory

Business Interruption Insurance Coverage Act of 2020: Yet Another Reason to Promptly Notify Insurers of COVID-19 Losses

May 25, 2020 — James Hultz - Newmeyer Dillion
Business interruption coverage stemming from the COVID-19 pandemic is a matter of intense debate. The number of policyholder lawsuits continues to rise sharply and an increasing number of state legislatures are considering laws to specifically address such coverage. Now, additional proposed legislation at the federal level could completely and definitively resolve the debate in favor of coverage for policyholders. The Business Interruption Insurance Coverage Act of 2020 On April 14, Congress introduced the Business Interruption Insurance Coverage Act of 2020 (the “Act”) which, if passed, would require insurance companies to cover business interruption losses due to “viral pandemics, forced closures of businesses, mandatory evacuations, and public safety power shut-offs.” The bill further states:

Any exclusion in a contract for business interruption insurance that is in force on the date of the enactment of this Act shall be void to the extent that it excludes losses specified . . . .

The draft legislation also specifies that it preempts state approval of any contrary exclusion and renders such approval “void to the extent that it excludes losses specified.” Read the court decision
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Reprinted courtesy of James Hultz, Newmeyer Dillion
Mr. Hultz may be contacted at james.hultz@ndlf.com

Brookfield to Start Manhattan Tower After Signing Skadden

April 15, 2015 — David M. Levitt – Bloomberg
Brookfield Property Partners LP said it will start building its 1 Manhattan West office tower, after signing a lease with the law firm Skadden, Arps, Slate, Meagher & Flom LLP for about a quarter of the skyscraper. The agreement, announced Tuesday in a statement by New York-based Brookfield, jump-starts office construction at the 7 million-square-foot (650,000-square-meter) Manhattan West project, part of an effort to draw the Midtown business district west toward toward the Hudson River. It’s another step in the plan to remake the once-industrial Hudson Yards area into a neighborhood for housing and commerce, with office tenants including Coach Inc. and Time Warner Inc. and stores such as the city’s first Neiman Marcus. The Skadden law firm agreed to a 20-year lease for 550,000 square feet on floors 28 to 43 of the 67-story tower. Read the court decision
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Reprinted courtesy of David M. Levitt, Bloomberg

Merger to Create Massive Los Angeles Construction Firm

July 16, 2014 — Beverley BevenFlorez-CDJ STAFF
AECOM Technology Corp., a Los Angeles engineering and construction firm, has agreed to pay $4 billion to acquire URS Corp., their San Francisco competitor. According to the Sacramento Bee, “The combined company will employ about 95,000 people in 150 countries.” AECOM is currently building the World Trade Center in New York, and previous projects include the Los Angeles Police Department headquarters, and renovations to the Port of Los Angeles and the Bradley international terminal at the Los Angeles International Airport, the Sacramento Bee reported. Furthermore, “URS has worked on the Garden Grove (22) Freeway reconstruction, the UCLA Ronald Reagan Medical Center, the Port of Long Beach, the Gold Line Eastside Extension in Los Angeles and the Disneyland resort expansion.” Read the court decision
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Consequential Damages Can Be Recovered Against Insurer In Breach Of Contract

July 22, 2019 — David Adelstein - Florida Construction Legal Updates
In a favorable case for insureds, the Fifth District Court of Appeal maintained that “when an insurer breaches an insurance contract, the insured is entitled to recover more than the pecuniary loss involved in the balance of the payments due under the policy in consequential damages, provided the damages were in contemplation of the parties at the inception of the [insurance] contract.” Manor House, LLC v. Citizens Property Insurance Corp., 44 Fla. L. Weekly D1403b (Fla. 5thDCA 2019) (internal citations and quotation omitted). Thus, consequential damages can be recovered against an insurer in a breach of contract action (e.g., breach of the insurance policy) if the damages can be proven and were in contemplation of the parties at the inception of the insurance contract. In Manor House, the trial court entered summary judgment against the insured holding the insured could not seek lost rental income in its breach of contract action against Citizens Property Insurance because the property insurance policy did not provide coverage for lost rent. However, the Fifth District reversed this ruling because the trial court denied the insured the opportunity to prove whether the parties contemplated that the insured, an apartment complex owner, would suffer lost rental income (consequential damages) if the insurer breached its contractual duties. 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

Second Circuit Certifies Question Impacting "Bellefonte Rule"

December 15, 2016 — Ellen Burrows – White and Williams LLP
Calling into question the continued validity of the so-called “Bellefonte Rule,” on December 8, 2016, the United States Court of Appeals for the Second Circuit certified to the New York Court of Appeals the question whether a facultative reinsurance contract limit is presumptively all-inclusive and “caps” the reinsurer’s total exposure even where the reinsured policy pays defense costs in addition to the limit. Global Reinsurance Corporation v. Century Indemnity Company Docket No. 15-2164-cv (December 8, 2016).[1] In Bellefonte Reinsurance Company v. Aetna 903 F.2d 910 (2d Cir. 1990), the court ruled that a reinsurer was not liable to pay defense costs above the stated reinsurance contract limit. Although litigants argued that this ruling was dependent on the fact that the reinsured policy limits were defense cost-inclusive, a later panel of the Second Circuit applied the “cap” ruling in Bellefonte to a situation where the reinsured policy limit was not cost-inclusive and where the insurer was obligated to pay defense costs in addition to the policy limit. Unigard Security Insurance Company v. North River Insurance Company 4 F.3d 1049 (2d Cir. 1993). Read the court decision
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Reprinted courtesy of Ellen Burrows, White and Williams LLP
Ms. Burrows may be contacted at burrowse@whiteandwilliams.com

Top 10 Lessons Learned from a Construction Attorney

February 18, 2015 — Craig Martin – Construction Contractor Advisor
I have had the pleasure of working with Cordell Parvin, who in his earlier career was a preeminent construction attorney, and now, coaches attorneys. Cordell has shared countless construction guides and presentations with me over the years, for which I am extremely grateful. Below is Cordell’s Lesson’s Learned list, that is as true today as when he drafted it years ago. 1. Contracts and owners are not all alike. Some are fairer than others. Some create greater risks of making the budget if we encounter changes, delays and impacts. We should appreciate the risks before bidding and not underestimate indirect costs of staff to deal with these situations. 2. It is important to have a thorough understanding of the Contract Administration requirements of complex contracts. Identifying specifically what must be done when changes, delays and differing site conditions are encountered is one way to establish the understanding. 3. If a project ever ends up in court, every letter, note, e-mail and memo is evidence and will be taken out of context by the opposing lawyer. Recording every mistake, miscalculation, problem or lesson learned during construction of the project will come back to haunt you. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

4 Breakthrough Panama Canal Engineering Innovations

October 11, 2017 — Hobbes S. Sujith - Construction Informer
Through the rainforest of Central America stretches one of the seven wonders of the modern world. It’s the mother of all shortcuts – the Panama Canal. Over 300 million tons of cargo pass through its gates every year. Stretching through the heart of the Americans, this canal has changed the face of global trade. Ships traveling between the Atlantic and Pacific used to sail thousands of kilometers around Cape Horn. So in 1879 engineers planned to cut a channel through the Isthmus of Panama. And that, was going to become the history of Panama Canal engineering. To understand how the Panama Canal can carry such a huge amount of cargo, we need to travel back in time to 17th century France. There, engineers building the Briare Canal (Canal de Briare) faced an big problem. How to make water flow up a hill? Read the court decision
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Reprinted courtesy of Hobbes S. Sujith, Construction Informer

Halliburton to Pay $1.1 Billion to Settle Spill Lawsuits

September 03, 2014 — David Wethe, Margaret Cronin Fisk and Laurel Calkins – Bloomberg
Halliburton Co. agreed to pay $1.1 billion to settle a majority of lawsuits brought over its role in the largest offshore oil spill in U.S. history. The agreement is subject to court approval and includes legal fees, the Houston-based company said in a statement today. Halliburton was accused by spill victims and BP Plc of doing defective cementing work on the Macondo well before the April 2010 Gulf of Mexico oil spill. Halliburton blamed the incident on decisions by BP, which owned the well. The settlement comes as the judge overseeing oil-spill cases weighs fault for the disaster. An agreement now averts the company’s risk of a more costly judgment for some spill victims and removes much of the uncertainty that has plagued Halliburton for the past four years as investors waited to see the payout tally. With its biggest piece of liability resolved, Halliburton can refocus its attention on developing new oilfield technology that will help it boost profits worldwide. Reprinted courtesy of Bloomberg journalists David Wethe, Margaret Cronin Fisk and Laurel Calkins Mr. Wethe may be contacted at dwethe@bloomberg.net; Ms. Fisk may be contacted at mcfisk@bloomberg.net; and Ms. Calkins may be contacted at lcalkins@bloomberg.net Read the court decision
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