Four Things Construction Professionals Need to Know About Asbestos
September 23, 2019 —
Daniel King - Construction ExecutiveAlthough asbestos had its heyday in America half a century ago, asbestos exposure remains a major health risk and financial liability for construction professionals. One study estimates that at least 1.3 million construction industry workers are still at risk for occupational asbestos exposure.
Up until the 1980s, U.S. manufacturers mixed asbestos into thousands of construction products. Asbestos is a unique mineral that can be worked into flexible fibers while still retaining its durability and heat resistance. Unfortunately, the fibrous nature of asbestos also makes it highly toxic.
This article provides an overview of what construction professionals need to know about asbestos, including:
- potential long-term health consequences of asbestos exposure for workers and short-term financial consequences for employers;
- Occupational Safety and Health Administration asbestos regulations;
- how to identify and safely remove asbestos-containing materials; and
- what people should do if they have a history of asbestos exposure.
Reprinted courtesy of
Daniel King, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. King may be contacted at
dking@asbestos.com
1 De Haro: A Case Study on Successful Cross-Laminated Timber Design and Construction in San Francisco
November 06, 2023 —
Cait Horner, Adam J. Weaver & Allan C. Van Vliet - Gravel2Gavel Construction & Real Estate Law BlogAt the intersection of San Francisco’s SOMA, Potrero Hill and Showplace Square districts, a first-of-its-kind building offers an example of the potential widespread success of mass timber construction in the United States. 1 De Haro, a 134,000-square-foot, 4-story office and light industrial project built by Bay Area developer
SKS Partners is not only the first cross-laminated timber (CLT) building in the San Francisco, it is also the first multistory mass timber building of its type to be fully executed in California and the first CLT project in the United States to be delivered via railways. We recently sat down with Yvonne Fisher and Lee Ishida of SKS to discuss the unique design process, marketing success and overall industry buzz surrounding one of their latest
projects.
Reprinted courtesy of
Cait Horner, Pillsbury,
Adam J. Weaver, Pillsbury and
Allan C. Van Vliet, Pillsbury
Ms. Horner may be contacted at cait.horner@pillsburylaw.com
Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com
Mr. Van Vliet may be contacted at allan.vanvliet@pillsburylaw.com
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New York Instructs Property Carriers to Advise Insureds on Business Interruption Coverage
April 13, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe New York Department of Financial Services (DFS) took the unusual step last week of instructing all property/casualty insurers to provide information on commercial property insurance and details on business interruption coverage in light of the COVID-19 outbreak. The notice is
here.
The notice recognizes that policyholders have urgent questions about the business interruption coverage under their policies. Insurers must explain to policyholders the benefits under their policies and the protections provided in connection with COVID-19.
The explanation to policyholders is to include the following relevant information.
What type of commercial property insurance or otherwise related insurance policy does
the insured hold?
Does the insured's policy provide "business interruption" coverage? If so, provide the
"covered perils" under such policy. Please also indicate whether the policy contains a
requirement for "physical damage or loss" and explain whether contamination related
to a pandemic may constitute "physical damage or loss." Please describe what type of
damage or loss is sufficient for coverage under the policy.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Not Everything is a Pollutant: A Summary of Recent Cases Supporting a Common Sense and Narrow Interpretation of the CGL's Pollution Exclusion
October 26, 2020 —
Philip B. Wilusz & Jeffrey J. Vita - Saxe Doernberger & VitaThose of us who suffered through law school are familiar with the argument that there are fundamental rules applicable to contract interpretation and that a certain contract language interpretation would “swallow the rule.” However, insurance companies have long advocated for an interpretation of the CGL policy’s pollution exclusion that would “swallow the coverage” that the insureds thought they were purchasing. Insurers have successfully argued in several states that the pollution exclusion’s definition of “pollutant” should be read literally, and be applied to any “solid, liquid, gaseous, or thermal irritant or contaminant including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste.” As anyone with children can attest to, the range of items and substances that can be considered an “irritant” is limitless. The logical extent of the insurer’s interpretation brings to mind the high school student who, for his science fair project, convinced his fellow students to ban “dihydrogen monoxide.”1 Citing evidence such as the fact that everyone who has ever died was found to have consumed “dihydrogen monoxide,” he convinced them of the dangers of . . . water. Similarly, an overly expansive reading of the definition of “pollutant” could lead to the absurd result of even applying it to ubiquitous harmless substances such as water. The pollution exclusion, therefore, has run amok in many states and has allowed insurers to avoid liability for otherwise covered claims.
Fortunately, insureds in many states have successfully argued that the pollution exclusion is subject to a more limited interpretation based on several different theories. For example, some courts have agreed that the pollution exclusion, as initially introduced by the insurance industry, should be limited to instances of traditional environmental pollution. Others have held that the exclusion is ambiguous as to its interpretation. The reasonable expectations of the insureds do not support a broad reading of the defined term “pollutant.” Below, this article addresses a number of recent decisions that have adopted a pro policyholder interpretation of the pollution exclusion. As with most insurance coverage issues, choice of law clearly matters.
Reprinted courtesy of
Philip B. Wilusz, Saxe Doernberger & Vita and
Jeffrey J. Vita, Saxe Doernberger & Vita
Mr. Wilusz may be contacted at pbw@sdvlaw.com
Mr. Vita may be contacted at jjv@sdvlaw.com
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Contractor Definition Central to Coverage Dispute
July 22, 2024 —
Stacy R. Goldscher & Tracy M. Lewis - Wood Smith Henning & BermanHow do you define the term "contractor?" In the case of California Specialty Insulation Inc. v. Allied World Surplus Lines Insurance Company, No. B324805 (2024), the court ultimately honored the reasonable expectations of the insured and ordered that the insurer defend and indemnify in an underlying suit stemming from the policy. This case involves a commercial general liability insurance policy issued by Allied World Surplus Lines Insurance Company (Allied) to California Specialty Insulation, Inc. (CSI). The central issue is whether Allied World is obligated to defend and indemnify CSI against a negligence claim stemming from a construction site accident. The dispute hinges on the interpretation of a policy exclusion for bodily injury to employees of any "contractor," a term not defined in the policy.
Factual Background
In 2017 Air Control Systems. Inc. (Air Control) was contracted to perform improvement work at a Los Angeles building and subsequently hired CSI to install duct insulation. In 2019, Jason Standiford, and Air Control employee, filed a negligence lawsuit against CSI, alleging injuries from a 2017 incident where a CSI employee allegedly drove a scissor lift into a ladder Standiford was on, causing him to fall. CSI requested Allied World to defend it in the Standiford lawsuit. Initially, Allied World accepted the defense, but later withdrew, citing the Contractor Exclusion in the policy. CSI filed for declaratory relief, leading to cross-motions for summary judgment. The trial court ruled in favor of CSI, finding the term contractor ambiguous and construing it in CSI's favor. Allied World appealed the decision.
Reprinted courtesy of
Stacy R. Goldscher, Wood Smith Henning & Berman and
Tracy M. Lewis, Wood Smith Henning & Berman
Ms. Goldscher may be contacted at sgoldscher@wshblaw.com
Ms. Lewis may be contacted at tlewis@wshblaw.com
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Pennsylvania Homeowner Blames Cracks on Chipolte Construction
October 14, 2013 —
CDJ STAFF“Everything was shaking, like a big bomb went off.” That’s how Hersey, Pennsylvania resident Maria Yi described the situation during construction of a Chipolte restaurant next to her home. She and other people thought it was an earthquake, but then found it came from the construction site. She told the operator of the machine to stop.
Yi and her husband later found cracks in their home which they attribute to the construction activity. Township supervisors were sympathetic to Yi, with Kelly Fedeli, the Supervisor Vice Chairwoman, told Yi that she feels “very badly about what happened to you.” And Chuck Emerick, the township code officer told Yi that “we’re doing everything we can to help you.”
This is not Yi’s first conflict with the proposed restaurant. Yi was involved in a lawsuit that sought to stop the restaurant from being built at all. That suit is being appealed, but even if Yi were to win at the appeal, the restaurant would go forward. Said Yi of the supervisors, “they told me there would be no problem.”
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Residential Contractors, Be Sure to Have these Clauses in Your Contracts
May 16, 2018 —
Christopher G. Hill - Construction Law MusingsI have often “mused” on the need to have a good solid construction contract at the beginning of a project. While this is always true, it is particularly true in residential contracting where a homeowner may or may not know the construction process or have experience with large scale construction. Often you, as a construction general contractor, are providing the first large scale construction that the homeowner has experienced. For this reason, through meetings and the construction contract, setting expectations early and often is key.
As a side note to this need to set expectations, the Virginia Department of Professional and Occupational Regulation (DPOR) and the Virginia General Assembly require certain clauses to be in every residential construction contract. DPOR strictly enforces these contractual items and failure to put them in your contracts can lead to fines, penalties and possibly even revocation of a contractor’s license.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Government Claims Act Does Not Apply to Actions Solely Seeking Declaratory Relief and Not Monetary Relief
March 25, 2024 —
Garret Murai - California Construction Law BlogPerhaps it should come as no surprise, but public entities get special treatment under the law, and when filing a claim against a public entity, in most cases, a claimant is required to file a claim with the public entity before filing suit under the Government Claims Act (Gov. Code §810 et seq.).
But, as the next case demonstrates, that’s not always the case. In Stronghold Engineering Incorporated v. City of Monterey, 96 Cal.App.5th 1203 (2023), the 6th District Court of Appeals examined whether a public works contractor that alleged an extended overhead claim was required to file a Government Claims Act claim before filing suit when its initial complaint was limited to a claim for declaratory relief.
The Stronghold Case
In December 2015, general contractor Stronghold Engineering Incorporated entered into a construction contract with the City of Monterey for the renovation of the City’s conference center and an adjacent city-owned plaza. The construction contract provided that any modification to the construction contract had to be approved by the City through a written change order. No surprise there.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
