Georgia Supreme Court Says Construction Defects Can Be an “Occurrence”
July 31, 2013 —
CDJ STAFFThe Georgia Supreme Court has ruled in an insurance coverage case, concluding that under a commercial general liability policy, defective construction can count as an occurrence. William Wildman and Kent Collier discuss the case in a Legal Alert published by their firm, Sutherland Asbill & Brennan LLP. The court decisions came about after the U.S. Court of Appeals certified the question to the Georgia Supreme Court.
Wildman and Collier note that the Georgia Supreme Court “after analyzing recent Georgia decisions regarding CGL insurance and construction defects, as well as noting cases from other jurisdictions, held that ‘an “occurrence” as the term is used in a standard CGL policy, does not require damage to the property or work of someone other than the insured.” The court also “held that an ‘occurrence’ must arise from liability for a causeof action that is consistent with the concept that the ‘occurrence’ is ‘accidental.’”
However, they note that the court also concluded that “certain ‘business risk’ coverage exclusions common in many standard CGL policies may apply to exclude coverage for defective construction even though such defective construction constitutes an ‘occurrence.’”
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Design-Build Contracting for County Road Projects
September 19, 2022 —
David R. Cook Jr. - Autry, Hall & Cook, LLPEffective July 1, 2022, counties may execute design-build contracts for transportation-related projects that include buildings, bridges and approaches, rail corridors, technology deployments, and limited- or controlled-access project, or projects that may be constructed within existing rights of way when the work is clearly defined or when significant savings may result in project delivery time.
[1] Additionally, counties may combine any environmental services, utility-relocation services, right-of-way services, design services, and construction phases of a public road or other project into a single design-build contract.
Reprinted courtesy of
David R. Cook Jr., Autry, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com
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The Goldilocks Rule: Panel Rejects Proposed Insurer-Specific MDL Proceedings for Four Large Insurers, but Establishes MDL Proceeding for the Smallest
November 16, 2020 —
Eric B. Hermanson & Konrad R. Krebs - White and WilliamsIt is an outcome few people expected. Back in August, the Judicial Panel on Multidistrict Litigation (Panel) refused plaintiffs’ requests to set up a single industry-wide multi-district litigation, which would have consolidated — in a single massive proceeding — all federal lawsuits seeking COVID-related business interruption coverage from insurers. The Panel acknowledged common legal issues, and potential benefits of coordinated management, but it balanced those benefits against the numerous factual differences between policies, carriers, and insureds, and noted that “[t]hese differences will overwhelm any common factual questions.”
Then, after lengthy argument, the Panel ordered further briefing as to whether separate, company-specific MDL proceedings might be appropriate against five specific insurance carriers: specifically, the five carriers against whom the largest numbers of federal claims were pending.
By choosing these five carriers and not others for further argument, the Panel seemed to be suggesting a formula: the larger the carrier, and the greater the number of claims against it, the greater the potential benefit from coordinated management, and the stronger the plaintiffs’ case for pre-trial consolidation.
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Eric Hermanson, White and WilliamsMr. Hermanson may be contacted at
hermansone@whiteandwilliams.com
2011 Worst Year Ever for Home Sales
September 09, 2011 —
CDJ STAFFSo few new single-family homes have sold in 2011 that expectations are that this will be the worst year for new homes sales since the Commerce Department started tracking this in 1963. The Harford Courant notes that previously builders created a new supply to which was added homes under foreclosure.
Ed Leamer, economist and director of UCLA’s Anderson Forecast, says that recovery would be driven by two sectors, manufacturing and construction. “It doesn’t look like there is going to be a big recovery in manufacturing,” he says. “It is going to have to come in housing.”
The soft housing market, however, is leading to a loss of construction jobs, as reported by the Associated General Contractors of America. As a result, stock prices for the twelve largest publicly-traded home builders have declined 22.7 percent in a market that has declined 4.2 percent overall.
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Ahlers, Cressman & Sleight PLLC Ranked Top Washington Law Firm By Construction Executive
July 06, 2020 —
Joshua Lane - Ahlers Cressman & Sleight BlogACS is proud to announce that in its review of the top 50 national construction law firms, Construction Executive has ranked ACS as the top 23rd national firm, and first among firms with a majority of their attorneys based in Washington.
Now in its 18th year of publication, Construction Executive is the leading trade magazine about the business of construction. In its June 2020 issue, CE published a comprehensive ranking of The Top 50 Construction Law Firms™ featuring breakouts and analysis accompanied by an article in which leading legal experts discuss the impact of the COVID-19 pandemic on the construction industry. To determine the 2020 ranking, CE asked hundreds of US law firms with a construction practice to complete a survey. Data collected included: 1) 2019 revenues from the firm’s construction practice; 2) number of attorneys in the firm’s construction practice; 3) percentage of firm’s total revenues derived from its construction practice; 4) number of AEC clients; and 5) the year in which the construction practice was established. The ranking was determined by an algorithm that weighted the aforementioned factors in descending order of importance.
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Joshua Lane, Ahlers Cressman & Sleight BlogMr. Lane may be contacted at
joshua.lane@acslawyers.com
AI Systems and the Real Estate Industry
April 03, 2023 —
Robert G. Howard & Craig A. de Ridder - Gravel2Gavel Construction & Real Estate Law BlogArtificial intelligence (AI) systems captured considerable attention with the release of a large language chatbot, ChatGPT, by OpenAI, in November of last year. On March 14, OpenAI unveiled GPT-4, a more powerful “multimodal” chatbot responding to both text and images. And, on March 21, Google launched its conversational computer program, Bard, to compete with GPT-4. These chatbots allow users to initiate detailed queries or requests and receive prompt responses in complete sentences. Users are not forced to scroll through a list of results like those produced by search engines and follow-up questions can be asked.
AI systems have been touted for many years and these new breakthroughs may drastically change the way that we create content.
Notwithstanding their unprecedented capabilities, AI systems can produce imperfect results. New chatbots, for example, can generate plausible-sounding but nonsensical, biased or false responses. Accordingly, heavy fact-checking is necessary. OpenAI has warned that ChatGPT is prone to filling in replies with incorrect data if there is not enough information available on the topic on the internet. Bard includes a website disclaimer that it “may display inaccurate or offensive information that doesn’t represent Google’s views.” On March 20, a breach at OpenAI allowed users to see other people’s chat histories before the service was shut down. Further, there is a real risk that courts will rule that certain content generated by these systems infringes the copyright or database rights of the owner of the materials and data that the technologies relied on. When entering into agreements with AI software providers, companies should also be concerned about
other risks, including misappropriation of data, security, confidentiality, privacy and third-party claims.
Reprinted courtesy of
Robert G. Howard, Pillsbury and
Craig A. de Ridder, Pillsbury
Mr. Howard may be contacted at robert.howard@pillsburylaw.com
Mr. de Ridder may be contacted at craig.deridder@pillsburylaw.com
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Business Risk Exclusions Bar Coverage for Construction Defect Claims
August 27, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe homeowners' assigned claims against the general contractor's insurer were barred by business risk exclusions in the CGL policies. W. Heritage Ins. Co. v. Cannon, 2014 U.S. Dist. LEXIS 101382 (E.D. Wash. July 24, 2014).
The Cannons contracted with Cook Custom Homes to build their home. Cook never hired a soil engineer. The lot was excavated and the basement foundation was back-filled. When the Cannons moved in, they noticed cracks throughout the foundation, basement slab, ceilings and driveway. The Cannons' home was rendered uninhabitable.
The Cannons sued Cook. Cook agreed to a confession of judgment and assignment of its rights against Western Heritage, who defended Cook under a reservation of rights. Western Heritage filed an action for declaratory judgment.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Policy's One Year Suit Limitation Does Not Apply to Challenging the Insurer's Claims Handling
October 07, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe California Supreme Court held that the policy's suit limitation of one year, consistent with the statute requiring suit be file within twelve months after a loss, did not apply to claims alleging violation of the state's unfair competition law (UCL). Rosenberg-Wohl v. State Farm Fire and Cas. Co., 2024 Cal. LEXIS 3806 (Cal. July 18, 2024).
Plaintiff held a homeowners policy issued by State Farm that provided coverage for all risks except those specifically excluded under the policy. The suit limitation provision provided, "Suit Against Us. No action shall be brought unless there has been compliance with the policy provision.The action must be started within one year after the date of loss or damage."
On two occasions in late 2018 or early 2019, plaintiff's neighbor stumble and fell as she descended a staircase at plaintiff's residence. Plaintiff discovered that the pitch of the stairs had changed, and replacement of the stairs was required to fix the issue. She contacted State Farm on or around April 23, 2019. On August 9, 2019, plaintiff submitted a claim to State Farm, seeking reimbursement for what she paid to repair the staircase. State Farm denied the claim, advising there was no coverage and identifying several exclusions as potentially applicable.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com