Exclusion Does Not Bar Coverage for Injury To Subcontractor's Employee
April 28, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe Third Circuit reversed the district court and held that the additional insured was covered for injury to the subcontractor's employee despite an employee's exclusion in the policy. ArcelorMittal Plate, LLC v. Joule Technical Serv, Inc., 2014 U.S. App. LEXIS 2905 (3d Cir. Feb. 18, 2014).
ArcelorMittal Plate, LLC (AMP) owned a steel production facility. AMP contracted with Joule, an industrial staffing and engineering firm, for regular performance of maintenance and repair work at its plant. Joule was obligated to provide a CGL policy adding AMP as an additional insured "for all claims including, but not limited to, claims by Joule's employees."
Joule added AMP as an additional insured to its policy with Liberty Surplus Ins. Corp. The policy had an "employee exclusion" which stated, “This insurance does not apply to bodily injury to (1) an employee of the insured arising out of and in the course of (a) employment by the insured or (b) performing duties related to the conduct of the insured's business.”
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Public Projects in the Pandemic Pandemonium
September 07, 2020 —
Ashlynn E. Hutton, Michael J. Crook & Christian F. Torgrimson - Construction ExecutiveDespite the ongoing pandemic, states are opening up for business and establishing a new normal. This determination to move forward includes pushing public transportation projects full steam ahead. While this may be good news for certain industries, it may not be for commercial property owners hoping to see a slow down to public projects and avoid a taking of private property. As many grapple with new economic realities, we examine the approaches employed by states in the southeast to manage construction of public projects in this unprecedented time.
GEORGIA
The Georgia Department of Transportation (GDOT) is moving forward with all of its previously funded public projects, including the massive I-285 Top-End Project, designated as a “Major Mobility Project” for the Atlanta metro region. Affecting approximately 260 property owners along I-285 and Georgia Highway 400, environmental review of the project continues. GDOT anticipates a contract let date in 2022 and construction start in 2023. Like ocean liners, these projects don’t turn on a dime. Under the 2015 Transportation Funding Act, the budgeted funds cannot be shifted to other needs or projects due to economic shutdown. Once environmental review is complete, GDOT will approve the final design and move toward acquiring right-of-way from affected property owners.
Reprinted courtesy of
Ashlynn E. Hutton, Michael J. Crook & Christian F. Torgrimson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Yes, Virginia, Contract Terms Do Matter: Financing Term Offers Owner an Escape Hatch
November 25, 2024 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday, Musings welcomes Timothy R. Hughes, Esq., LEED AP. Tim (@vaconstruction on Twitter) is Of Counsel to the Arlington, Virginia firm of Bean, Kinney & Korman, P.C. In his practice as a business, corporate, and construction law attorney, Tim served as the previous Chair of the Construction Law and Public Contracts Section of the Virginia State Bar. He has served in numerous volunteer, board and leadership roles with such organizations as the Arlington Chamber of Commerce, the Northern Virginia Building Industry Association, Vanguard Services Unlimited, Leadership Arlington, Associated Builders & Contractors (Metro DC and Virginia), and numerous other volunteer and construction trade association activities. A regular speaker and writer, Tim is the lead editor of his firm blog, Virginia Real Estate, Land Use and Construction Law.
A recent Virginia case once again demonstrates that contract terms matter. An unusual financing term allowed the owner of a project a complete escape from any liability on a project despite significant work being performed. The opinion from the Circuit Court of Norfolk involved five separate cases consolidated together, four claims by subcontractors and one by the general contractor Turner. All five cases hinged on an unusual financing clause in Turner’s contract with the other. That provision stated:
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Construction Managers, Are You Exposing Yourselves to Labor Law Liability?
February 22, 2021 —
Timothy P. Welch - Hurwitz & Fine, P.C.When dealing with construction site accidents, who a party is matters. Under Labor Law sections 200, 240(1) and 241(6) owners, contractors,
and their agents have a non-delegable duty to provide reasonable and adequate protection to workers from risks inherent at work sites, with a specific emphasis placed on elevation-related hazards. Given the near strict liability nature of Labor Law section 240(1), it is critical to identify whether a party is a proper Labor Law defendant from the get-go.
While identifying the owner (and usually the contractor) may be relatively straightforward, identifying “their agents” has proven to be a more complex undertaking. It should be noted that the requirements set forth in the Labor Law are non-delegable from the standpoint of the owner or contractor, however, the duties themselves can be assigned to “agents” of an owner or “agents” of a contractor. When such an assignment occurs, the same non-delegable duty held by the owner or contractor is imposed on the agents as well. Moreover, “once an entity becomes an agent under the Labor Law it cannot escape liability to an injured plaintiff by delegating the work to another entity.[1]”
An entity that often skirts the line between being an agent and not, is the Construction Manager. Traditionally, the Construction Manager has been found to be outside the purview of the Labor Law when its scope of work is narrowly focused on scheduling and general coordination of the construction process. However, when a Construction Manager’s scope expands, so does its risk that it may, in fact, become a proper Labor Law defendant.
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Timothy P. Welch, Hurwitz & Fine, P.C.Mr. Welch may be contacted at
tpw@hurwitzfine.com
Seabold Construction Ties Demise to Dispute with Real Estate Developer
April 29, 2024 —
Richard Korman - Engineering News-RecordWhen Harry W. Seabold, co-founder and CEO of Seabold Construction, died unexpectedly in January 2023 at age 69, the Beaverton, Ore.-based general contractor, which had been in business since 1984, kept chugging along for a year on two adjacent North Portland apartment projects.
Reprinted courtesy of
Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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Are Construction Defect Laws a Factor in Millennials Home Buying Decisions?
March 12, 2015 —
Beverley BevenFlorez-CDJ STAFFKimberly A. O’Hagan of Otten Johnson Robinson Neff + Ragonnetti PC discussed Millennials in Denver, Colorado, and how their desire to buy may cause them to leave the area due to a lack of affordable housing.
O’Hagan describes various possible reasons for the lack of affordable housing: “Some cite the inability to qualify for financing and low demand as the reasons for the decreased number of condominium projects. Others, including Denver’s Mayor Hancock, credit the chill on condominium construction to Colorado’s construction defect laws, which they say have resulted in increased insurance costs that make condominium development economically infeasible.”
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Alabama Limits Duty to Defend for Construction Defects
October 10, 2013 —
CDJ STAFFWhile supreme courts in several states have expanded what is covered under a commercial general liability policy, Alabama has bucked the trend. Martha P. Brown and David L. Brown discuss this in a post on the site of their firm, Nelson Levine de Luca & Hamilton. They note that in a recent case, Owners Insurance Company v. Jim Carr Homebuilders, “the court held that liability for defective construction resulting in water intrusion damage to otherwise properly constructed component parts is not covered under a general contractor’s commercial general liability (CGL) policy because such damages are not caused by an ‘occurrence.’”
The background of Owners v. Jim Carr was that the work of the subcontractors was found not only to be defective, but responsible for damage to correctly performed work. The court held, however, that it was all part of the same project. The court “distinguished the present case from a situation where the insured’s work results in damages to other property outside the scope of the insured’s work,” which they noted could be covered under a CGL policy.
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Bremer Whyte Brown & O’Meara LLP Attorneys to Speak at the 2016 National Construction Claims Conference
September 01, 2016 —
Beverley BevenFlorez-CDJ STAFFBremer Whyte Brown & O’Meara, LLP (BWBO), announced that Keith G. Bremer, Founding Partner and John H. Toohey, Partner, will be speaking at the CLM National Construction Claims Conference being held September 28-30th this year. More than 500 professionals will gather at the conference location, the Manchester Grand Hyatt in San Diego, California.
According to BWBO’s release, “the CLM will hold the most comprehensive construction claims conference ever. In addition to addressing construction defect claims, conference sessions will also address facets of construction-related claims including construction site accidents/injuries, coverage issues, subcontractor issues, and new technologies. Sessions will also address issues on the national, regional, and state levels.”
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