Insurer Must Defend Faulty Workmanship Claims
May 02, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe court determined that the insurer improperly denied a defense for construction defect claims made against the insured. Amerisure Mut. Ins. Co. v. McMillin Tex. Homes, 2022 U.S. Dist. LEIS 40363 (W.D. Texas March 8, 2022).
McMillin was a developer, general contractor and home seller. It constructed multiple homes in various communities in the San Antonio area. After the homes were completed, homeowners observed defects in the artificial stucco exterior finish. After claims were lodged against McMillin, the various claims were tendered to Amerisure. Amerisure filed for declaratory judgment that it had to duty to defend or indemnify and moved for summary judgment.
Amerisure first argued the homeowners' faulty workmanship claims did not allege "property damage" under the policies. It argued there were no allegations that any property damage existed, but merely that the stucco suffered from construction defects. The court disagreed. Among the allegations was the statement that due to the construction defects, the homes suffered damage "not only to the exterior stucco, but also to the underlying wire lath, paper backing, house wrap, flashing, water resistive barriers, sheathing, interior walls, interior floors and/ or other property." Consequently, the underlying claims amounted to property damage.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Haight Welcomes New Attorneys to Los Angeles, Sacramento and San Francisco
October 07, 2019 —
Haight Brown & BonesteelHaight Brown & Bonesteel is happy to announce the addition of new attorneys to our Los Angeles, Sacramento and San Francisco offices.
- Alexandra Angel – Los Angeles: Alexandra is a member of the firm’s Business Solutions, General Liability and Transportation Law Practice Groups. Her practice focuses on a variety of civil litigation matters involving premises liability, personal injury, judgment collection, breach of contract, and landlord-tenant. Her clients have included individual private clients, international property management companies, national and local real estate investment companies, a large car finance company, and local businesses.
- Josh Maltzer – San Francisco: Josh is a partner in the firm’s Construction Law, General Liability and Risk Management & Insurance Law Practice Groups. He is a seasoned civil litigator who focuses his practice on construction defect, general liability and insurance coverage. Josh is an experienced trial attorney who has litigated matters in state and federal courts throughout California and in Arizona, Washington and Wyoming. He has represented business owners, property managers, developers, real estate purchasers and public housing agencies in matters that resulted in millions of dollars in insurance recovers, judgments and settlements for his client.
Reprinted courtesy of Haight Brown & Bonesteel attorneys
Alexandra Angel,
Josh A. Maltzer,
Philip E. McDermott,
Patrick F. McIntyre,
Evan M. Reese, and
Amanda F. Riley
Ms. Angel may be contacted at aangel@hbblaw.com
Mr. Maltzer may be contacted at jmaltzer@hbblaw.com
Mr. McDermott may be contacted at pmcdermott@hbblaw.com
Mr. McIntyre may be contacted at pmcintyre@hbblaw.com
Mr. Reese may be contacted at ereese@hbblaw.com
Ms. Riley may be contacted at ariley@hbblaw.com
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New California Construction Law for 2019
January 02, 2019 —
Daniel F. McLennon - Smith CurrieThe California Legislature introduced over 2637 bills in the second half of the 2017-2018 session. This article summarizes some of the more important bills affecting contractors in their roles as contractors, effective January 1, 2019, unless otherwise noted. Not addressed here are many other bills that will affect contractors in their roles as businesses, taxpayers, and employers. Each of the summaries is brief, focusing on what is most important to contractors. Because not all aspects of these bills are discussed, each summary’s title is a live link to the full text of the referenced bills for those wanting to explore the details of the new laws.
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Daniel F. McLennon, Smith CurrieMr. McLennon may be contacted at
dfmclennon@smithcurrie.com
Florida Condos Bet on Americans Making 50% Down Payments
October 29, 2014 —
John Gittelsohn – BloombergJorge Perez crashed along with the real estate market, then regained his crown as Florida’s “Condo King” by building new projects with 50 percent deposits from foreign buyers. Now, for his next development, he’s looking to wealthy Americans.
In December, he’ll begin marketing the Auberge Beach Residences and Spa Fort Lauderdale, a $500 million oceanfront project 35 miles (56 kilometers) north of Miami. He expects as many as two-thirds of the buyers to come from the U.S. or Canada. All future owners must pay hefty deposits to finance construction by Perez’s Related Group, Fortune International Group and Fairwinds Group in a partnership that the companies plan to announce tomorrow.
“The U.S. buyers have made up an increasing share of luxury beachfront condominiums and, like our foreign buyers, they have shown little resistance to larger deposits,” Perez said in an e-mail. “Most feel that if they can’t put a 50 percent down payment, they probably should not be buying.”
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John Gittelsohn, BloombergMr. Gittelsohn may be contacted at
johngitt@bloomberg.net
Washington Supreme Court Interprets Ensuing Loss Exception in All-Risk Property Insurance Policy
May 20, 2024 —
David G. Jordan & William E. Phillips IV - Saxe Doernberger & Vita, P.C.The "ensuing loss" clause is a provision that restores coverage for property insurance claims that are subject to certain policy exclusions, such as “faulty workmanship” and “faulty design.” It applies in cases where there is damage from a covered cause of loss that ensues, or results from, the excluded cause of loss. Courts across jurisdictions have grappled with interpreting the breadth of this clause, leading to varying conclusions regarding its scope and applicability. One of the primary challenges in interpreting “ensuing loss” lies in determining the ultimate cause of damage. Courts must ascertain whether the ensuing loss is sufficiently distinct from the excluded event to warrant coverage under the policy. This analysis often hinges on whether the cause of loss is thought to constitute a separate and independent occurrence or is merely a continuation or exacerbation of the excluded event.
Reprinted courtesy of
David G. Jordan, Saxe Doernberger & Vita, P.C. and
William E. Phillips IV, Saxe Doernberger & Vita, P.C.
Mr. Jordan may be contacted at DJordan@sdvlaw.com
Mr. Phillips may be contacted at WPhillips@sdvlaw.com
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Scaffolding Purchase Suggests No New Building for Board of Equalization
July 30, 2014 —
Beverley BevenFlorez-CDJ STAFFEmployees at California’s Board of Equalization spoke out against the Brown administration after the state purchased new scaffolding for the defect-riddled building, rather than finding a new facility, reported the Sacramento Bee. The existing scaffolding was leased for $10,000 per month, but the lease expired, prompting the purchase of new scaffolding for about $100,000.
The board’s Chairman Jerome Horton stated “that while the change may make financial sense in the short term, it sends a signal that the Department of General Services intends to keep Equalization’s 2,200 or so employees in the troubled building,” according to the Sacramento Bee.
Building problems include “toxic mold, defective elevators, leaking windows, corroded wastewater pipes, floods, and exterior glass panels that spontaneously break or pop off.” So far, $2.3 million has been paid “in connection with building-related employee injury claims” along with $60 million in repairs. However, an additional $115 million is estimated to completely fix the defects.
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Roof Mounted Solar Panels: Lower Your Risk of Fire
September 25, 2023 —
The Hartford Staff - The Hartford InsightsAs the federal government, individual states, businesses and consumers take steps to address climate change, the use of renewable energy – including roof-mounted solar panels – has steadily increased. Over the past decade, the use of solar energy solutions has grown by 33% annually. This is driven by tax-based incentives for clean energy, combined with installation costs that are down more than 50% from 10 years ago.1
As more companies execute climate-focused goals to limit greenhouse emissions, reduce their carbon-footprint and lower energy costs, the use of solar power for commercial buildings is likely to increase. Currently, it's estimated that only 3.5% of commercial buildings have rooftop solar panels, but 70% are potential targets for solar.2
We know the use of solar power can have positive impacts on the environment and generate long-term energy cost savings. However, there are several considerations and potential risks that commercial property owners and facilities managers should consider prior to investing in solar, says Tracey Greene, underwriting director for Middle and Large Commercial Real Estate at The Hartford.
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The Hartford Staff, The Hartford Insights
When to use Arbitration to Resolve Construction Disputes
February 25, 2014 —
Beverley BevenFlorez-CDJ STAFFOn the blog Construction Contractor Advisor, Craig Martin answers the question of whether arbitration is always the best choice for resolving construction claims. His answer: “Some claims may benefit from arbitration, but the benefit is not always clear.”
Martin brings forth four points to consider. First, AIA Contracts do not “push Arbitration.” Second, the cost of arbitration may be expensive: “You could well spend over $5,000 just to have the arbitrator decide your case—again, not to mention your own attorneys fees.” Third, arbitration doesn’t avoid discovery. And finally, “mediation is always an option, regardless of which way you pursue your claim.”
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