Cambridge Massachusetts Building Expert Directory

Coverage for Construction Defect Barred by Contractual-Liability Exclusion

July 30, 2014 — Tred R. Eyerly – Insurance Law Hawaii
Relying upon precedent from the Texas Supreme Court, the Fifth Circuit upheld the District Court's denial of coverage based upon the policy's contractual-liability exclusion. Crownover v. Mid-Continent Cas. Co., 2014 U.S. App. LEXIS 12158 (5th Cir. June. 27, 2014). The Crownovers entered a construction contract with Arrow Development, Inc. to construct a home. Paragraph 23.1 of the contract contained a warranty-to-repair clause, which provided Arrow "would correct work . . . failing to conform to the requirements of the Contract Documents." After the work was completed, cracks began to appear in the walls and foundation of the Crownovers' home. Additional problems with the heating, ventilation, and air conditioning system caused leaking in exterior lines and air ducts inside the home. When Arrow refused to correct the problems, the Crownovers initiated arbitration. The arbitrator found that the Crownovers had a meritorious claim for breach of the express warranty to repair contained in paragraph 23.1 of the construction contract. Damages were awarded. 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

A Bill for an Act Concerning Workers’ Compensation – 2014 Edition

January 13, 2014 — W. Berkeley Mann, Esq. - Higgins, Hopkins, McLain & Roswell, LLC
Workers’ compensation (“WC”) costs are a significant portion of the labor costs experienced by construction companies. These costs have typically risen over time due to the “experience modification factor.” This term means the amortized cost of past claims recovered through future premiums charged by an insurer to an employer. As a company’s claims go up in both number of claims and total expense of claims over time, the experience modifier increases as a multiplier of the base WC premium. As with other general medical costs, the question is not whether the cost of claims with a medical component will go up, but rather the rate at which they will increase from year to year. It is with these facts of life in mind that it is reported that the Colorado legislature will take up a bill concerning WC benefits in the 2014 session. This bill, if passed, will have the likely effect of dramatically increasing the cost of WC claims to the construction industry - along with all other Colorado employers. The draft bill has three distinct changes for the current law, each of which serves to change the delicate balance of rights and obligations of employers and employees under existing law. Read the court decision
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Reprinted courtesy of W. Berkeley Mann, Esq.
W. Berkeley Mann, Esq. can be contacted at mann@hhmrlaw.com

Boston Building Boom Seems Sustainable

November 20, 2013 — CDJ STAFF
According to the analytics and advisory firm PPR, the Boston-area market is “ungodly tight.” So even with all the building planned for the area, it’s likely to make the market normal and not lead to a glut. PPR predicts that the building boom may cool off in 2016, with the next mayoral administration. Some of the condo real estate has been fetching multi-million prices. Sue Hawkes, president and CEO of The Collaborative Cos. Points out that there are about 1,500 units in Boston priced in excess of $2 million. She wonders about future buyers in the luxury market. “Where are all these people going to come from?” Read the court decision
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What You Need to Know About Home Improvement Contracts

July 30, 2019 — Garret Murai - California Construction Law Blog
Given the variety of problems that can arise on a construction project, from defects to delays, it’s difficult to draft a construction contract that addresses every possible problem exactly right. However, so long as you adequately address the “big three” of scope, price and time, it’s also difficult to draft a construction contract wrong. That is, with one exception. And that one exception, in California, is home improvement contracts. In 2004, the California State Legislature enacted the state’s Home Improvement Business statute (Bus. & Prof. Code §§7150 et seq.). Section 7159 of the statute sets forth what must be included in home improvement contracts. It’s a section that could have been written by Felix Unger of the Odd Couple. In addition to setting forth required language that must be included in a home improvement contract, it directs where that language is to be set forth in a home improvement contract, and even how it is to be presented, down to type sizes. 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

U.S. Stocks Fluctuate Near Record After Housing Data

February 25, 2014 — Lu Wang and Callie Bost – Bloomberg
U.S. stocks fluctuated near a record high after data showed slower growth in home prices and a drop in consumer confidence, while Macy’s Inc. and Home Depot Inc. reported higher-than-estimated earnings. Macy’s and Home Depot rose at least 3.1 percent. Tesla Motors Inc. climbed 16 percent as Morgan Stanley more than doubled its projected price for the stock. Office Depot Inc. slumped 11 percent after reporting an unexpected loss. Tenet Healthcare Corp. declined 11 percent as its forecast missed analysts’ estimates. The S&P 500 (SPX) gained 0.1 percent to 1,848.59 at 1:59 p.m. in New York, poised for the highest close ever. Earlier, the U.S. equity benchmark lost 0.4 percent. The Dow Jones Industrial Average advanced 14.05 points, or 0.1 percent, to 16,221.19. Trading in S&P 500 stocks was 7 percent below the 30-day average during this time of the day. Ms. Wang may be contacted at lwang8@bloomberg.net; Ms. Bost may be contacted at cbost2@bloomberg.net Read the court decision
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Reprinted courtesy of Lu Wang and Callie Bost, Bloomberg

Coverage Established for Property Damage Caused by Added Product

April 28, 2014 — Tred R. Eyerly – Insurance Law Hawaii
Applying Minnesota law, the federal district court determined the supplier of contaminated dried milk had coverage. The Netherlands Ins. Co. v. Main Street Ingredients, LLC, 2014 WL 1012793 (8th Cir. March 18, 2014). In 2007, Plainview Milk Products sold dried milk to Main Street Ingredients, LLC, who then sold the dried milk to Malt-O-Meal. The dried milk was used by Malt-O-Meal in its instant oatmeal products. In June 2009, the FDA found Salmonella bacteria at Plainview's plant. The FDA also observed thirteen instances of insanitary conditions in the plant. Plainview issued a product recall notice announcing a "voluntary recall" of dried milk, stating its dried milk had "the potential to be contaminated with Salmonella." 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

Failure to Allege Property Damage Within Policy Period Defeats Insured's Claim

October 03, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The insured's inability to determine when water damage occurred meant it could not pursue claims of property damage against the insurers. Creek v. State Farm Fire & Cas. Co., 2022 U.S. Dist. LEXIS 116939 (W.D. Wash. July 1, 2022). Gold Creek Condominium complex experienced water damage. The complex was completed in 1982. The owners sued State Farm and Travelers under all-risk policies when tenders for the damage were denied. In 2017, Creek hired an expert to investigate deterioration due to water intrusion. The expert noted that "water intrusion had been evident in the exterior walls, soffits, terraces, handrails and elevated entry walkways for some time." Thereafter, Creek tendered claims for property damage to State Farm and to Travelers. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Vacation during a Project? Time for your Construction Documents to Shine!

October 09, 2023 — Melissa Dewey Brumback - Construction Law in North Carolina
Happy Lazy Day Everyone! What’s that? You didn’t know that August 10th is considered National Lazy Day? Well, it is. And it ties nicely in with today’s theme: how to take a vacation during the thick of the construction project. Everyone needs a break. You are no different. It can seem, however, that it is impossible to disconnect from the ongoing onslaught of questions, requests for information, change orders, pay applications, and the like. But you can. The key to taking–and enjoying–your vacation is to plan ahead. This is the time for your construction documents to shine. Make sure that your designs are on schedule; make sure that the change orders and RFIs have been processed so there is no backlog. And make sure that your second in command is familiar enough with the day to day details to step into your shoes for the duration. Then– be sure to give everyone notice. Is it any of their business that you are taking some time off? No. However, everyone procrastinates. So, if you give the entire team advance notice that you will be “off grid” starting on X date, they will be more inclined to get pending issues to you sooner rather than later. They won’t want to be stalled on progress, and with a heads up on when you are out of pocket, they will make it a priority to get requests to you ahead of your departure date. Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett
Ms. Brumback may be contacted at mbrumback@rl-law.com

CAMBRIDGE MASSACHUSETTS BUILDING EXPERT DIRECTORY AND CAPABILITIES