SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Occurrence Definition Trends Analyzed

August 27, 2014 — Beverley BevenFlorez-CDJ STAFF
In The Legal Intelligencer, Gordon S. Woodward, partner at Schnader Harrison Segal & Lewis, analyzed the changing definition of occurrence in the insurance industry, and more specifically in Pennsylvania. Woodward begins by going over “the traditional view of occurrence as it relates to coverage for faulty products or defective work,” in which “the existence of a defect in a product or an event in which a defective product injures only itself does not constitute an occurrence.” However, he stated that “there is a growing trend in favor of finding that an occurrence can include the circumstance where defective work results in damage only to the work or product itself (so long as the damage was neither intended nor expected by the insured).” Woodward also explained Pennsylvania developments and legislative changes (such as a South Carolina statute). These changes need to be monitored, Woodward stated, “as they have the potential to dramatically alter the coverage landscape from one jurisdiction to the next.” Read the court decision
Read the full story...
Reprinted courtesy of

---

Flood Sublimits Do Not Apply to Loss Caused by Named Windstorm

May 07, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The New Jersey Superior Court considered whether recovery for storm surge was limited by the policy's sublimit for loss caused by flood. Public Serv. Enter. Group, Inc. v. Ace Am. Ins. Co., 2015 N. J. Super. Unpub. LEXIS 620 (N.J. Super. Ct. Law Div. March 23, 2015). Storm surge from Superstorm Sandy inundated and damaged Public Service Enterprise Group, Inc.'s (PSEG) property, including eight large generating stations. PSEG had coverage of $1 billion under policies with defendant carriers. There was no sublimit in the policies for "named windstorms," other than named windstorms in Florida. A $250 million sublimit appeared in the policies for losses caused by "flood." The carriers paid only a portion of PSEG's claim. The total damages exceeded $500 million. Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

---

Construction Law Alert: A Specialty License May Not Be Required If Work Covered By Another License

March 07, 2011 — Steven M. Cvitanovic

Contractors should always be sure that they understand the licensing in any Subcontract or Prime Contract before entering into any agreement. However, on March 3, 2011, in the case of Pacific Casson & Shoring, Inc. v. Bernards Bros., Inc. 2011 Cal.App.Lexis 236, the Court of Appeal determined that if a specialty license is subsumed within another license, the specialty license may not be required.



Bernards entered into a subcontract with Pacific to excavate, backfill, grade and provide geotechnical design parameters for a hospital. The Prime Contract required the bidder to maintain a Class C-12 specialty earthwork license. However, Pacific only held a Class A general engineering license which it turns out was suspended during the performance of the work. Pacific sued Bernards for nonpayment of $544,567, but the lawsuit was dismissed because the trial court found that Pacific (1) lacked a C-12 license, and (2) Pacific’s Class A license was suspended for failure to pay an unrelated judgment. Pacific was also ordered to disgorge $206,437 in prior payments.



The Court of Appeal reversed and remanded. The Court of Appeal agreed with Pacific and held that a C-12 specialty license was not required despite the Prime Contract. The Court of Appeal found that the C-12 specialty license would have been “superfluous” since it was fully encompassed within the Class A requirements. However, the Court of Appeal also remanded the case for further



Read the full story...



Reprinted courtesy of Steve Cvitanovic of Haight Brown & Bonesteel, LLP.

Read the court decision
Read the full story...
Reprinted courtesy of

---

Connecticut Reverses Course for Construction Managers on School Projects

August 05, 2024 — Anand Gupta - Construction Law Zone Blog
On June 6, 2024, Connecticut Governor Ned Lamont signed into law Public Act 24-151 (H.B. 5524) (Bill 5524). Bill 5524 authorized and adjusted bonds of the state and provisions related to state and municipal tax administration, as well as addressed school building projects. Notably, Bill 5524 removed the ban on construction managers self-performing work on public school construction projects, effective July 1, 2024. Allowing construction managers to self-perform certain portions of the work, such as general trades, subject to the standard bidding requirements, is a common industry practice that, theoretically, reduces total project costs by reducing the amount of subcontracted work. However, proponents of banning self-performance argue that construction managers have too much information to bid fairly and competitively. Reprinted courtesy of Anand Gupta, Robinson+Cole Mr. Gupta may be contacted at agupta@rc.com Read the full story... Read the court decision
Read the full story...
Reprinted courtesy of

---

California Court of Appeal Finds Coverage for Injured Worker Despite Contractor's Exclusion

August 05, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The California Court of Appeal affirmed the trial court's finding that the policy covered a worker's injuries despite the Contractor's Exclusion. Cal. Spec. Insulation . Allied Work Surplus Lines, Ins. Co., 2024 Cal. App. LEXIS 317 (Cal. Ct. App. May 17, 2024). Air Control Systems, Inc. was retained by a property owner to perform improvement work on a building. Air Control retained California Specialty Insulation, Inc. (CSI) to install duct insulation. Jason Standiford, an Air Control employee, sure CSI, asserting negligence for injuries he suffered when he fell 16 to 20 feet after. A CSI employee drove a scissor lift into a ladder he was standing on. CSI was insured through a commercial general liability policy from Allied World. The policy included an endorsement titled "Bodily Injury to Any Employee or Temporary Worker of Contractors Exclusion." The Contractor Exclusion state the policy did not apply to "'Bodily injury' . . . to any 'employee' or 'ten,poary work' of any contractor or subcontractor arising out of in or the course of the rendering or performing services of any kind or nature by such contractor or subcontractor." Neither the endorsement nor the policy defined the term "contractor." Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

---

Rather Than Limit Decision to "That Particular Part" of Developer's Policy Necessary to Bar Coverage, 10th Circuit Renders Questionable Decision on Exclusion j(6)

September 06, 2021 — William S. Bennett - Saxe Doernberger & Vita, P.C.
The 10th Circuit Court of Appeals, applying Colorado law, recently extended Colorado’s broad application of the phrase “arising out of” in insurance interpretation, barring an insured real estate developer from receiving a defense to a suit alleging liability for construction of a defective retaining wall and associated resulting damage.1 The decision also included a questionable analysis of the commercial general liability (“CGL”) policy’s exclusion j(6), contradicting both the plain meaning of the exclusion as well as existing 10th Circuit case law. The underlying dispute concerned a land developer, HT Services, LLC, who was sued by the homeowner’s association (“HOA”) of one of its developments. The HOA alleged that HT Services negligently designed and constructed a retaining wall in the community. HT Services had CGL policies from Western Heritage Insurance Company in place from 2010 to 2013 that insured it for liability associated with four acres of land that the community was built upon. HT Services tendered the HOA’s lawsuit to Western Heritage, which declined to defend and indemnify HT Services. After that matter settled, HT Services sued Western Heritage, alleging breach of contract and bad faith. Western Heritage moved for summary judgment, asserting two exclusions, and the District Court granted the motion in Western Heritage’s favor. In upholding the District Court’s decision, the 10th Circuit discussed two exclusions that the District Court determined precluded coverage. Read the court decision
Read the full story...
Reprinted courtesy of William S. Bennett, Saxe Doernberger & Vita, P.C.
Mr. Bennett may be contacted at wsb@sdvlaw.com

---

The Impact of the Russia-Ukraine Conflict on the Insurance Industry, Part One: Coverage, Exposure, and Losses

August 22, 2022 — Michael Kopit - Lewis Brisbois
(August 10, 2022) - The Russia-Ukraine conflict has far-reaching implications for the insurance industry and for insurers and insureds alike. Many corporate policy holders around the world have withdrawn or scaled back operations with Russia and/or Russian-based corporations. In doing so, the corporate policy holders left behind property, assets, and inventory in Russia and/or suffered losses in revenue. Corporate policy holders are looking to their insurers to offset the losses. It is estimated that the insurance and reinsurance markets could face losses at nearly $20 billion. S&P Global predicts that losses could reach $35 billion. Additionally, the conflict in Ukraine creates uncertainty for insurers on how to navigate the influx of claims, especially from the cybersecurity sector. A key issue with the rise in claims is coverage. The general rule is that coverage under a policy for any loss must be evaluated by considering the policy language, the law applicable to the governing jurisdiction, and the facts surrounding the loss. Many policies contain a “war exclusion” clause, which can exclude property losses resulting from acts of war or governmental instability. However, corporate policy holders may have Political Risk Insurance, which can provide coverage for losses for items such as damaged property, seized property, and lost assets at a time of political turmoil or war. Even if a policy has Political Risk Insurance, it does not guarantee payout. Careful analysis of the policy language and facts surrounding the loss must still take place. For example, in the event of property claims, an insurer must still determine whether the loss is related to the conflict and/or whether the subject property was voluntarily abandoned or seized. Read the court decision
Read the full story...
Reprinted courtesy of Michael Kopit, Lewis Brisbois
Mr. Kopit may be contacted at Michael.Kopit@lewisbrisbois.com

---

Recent Developments with California’s Right to Repair Act

June 11, 2014 — Beverley BevenFlorez-CDJ STAFF
In Lexology, Amy Kuo Alexander of Gordon Rees Scully Mansukhani, LLP analyzed recent decisions involving California’s Right to Repair Act, SB 800. According to Alexander, “SB 800, applies to all new residential construction sold after January 1, 2003” and “[i]t establishes a process to resolve certain construction defect claims prior to the filing of any lawsuit by a homeowner of new residential construction.” Alexander’s three main discussion points include “SB 800 is Not the Exclusive Remedy,” “Notice Requirements to Builder Under SB 800,” and “Parties Can Opt Out of SB 800 to Adopt Their Own Prelitigation Procedure So Long as the Terms Are Not Unconscionable.” Read the court decision
Read the full story...
Reprinted courtesy of

---