Connecticut Supreme Court Finds Faulty Work By Subcontractor Constitutes "Occurrence"
July 31, 2013 —
Tred Eyerly, Insurance Law HawaiiThe U.S. District Court in Alabama certified a question to the Connecticut Supreme Court: Is damage to a project caused by faulty workmanship "property damage" resulting from an "occurrence"? With some qualification, the Connecticut Supreme Court answered in the affirmative. Capstone Building Corp. v. Am. Motorists Ins. Co., SC 18886 (Conn. June 11, 2013).
Captsone Development agreed to coordinate and supervise construction on a building at the University of Conneticut. Capstone Building was the general contractor. UConn secured an OCIP policy from American Motorist Insurance Company ("AMICO"). More than three years after completion, UConn notified the insureds of alleged defects in the project, including elevated levels of carbon monoxide. The source of the leak was the individual hot water heaters in residential units and insufficient draft of exhaust from the heater.Other defects were found during an investigation.
The insureds tendered to AMICO. Coverage was denied because the liability arose out of the insureds' own work.The insureds settled with UConn, paying $1 million each. The insureds then sued AMICO in Alabama and the question was certified to the Connecticut Supreme Court.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Traub Lieberman Attorneys Recognized in the 2022 Edition of The Best Lawyers in America®
September 13, 2021 —
Traub LiebermanTraub Lieberman is pleased to announce that three Partners have been selected by their peers for inclusion in the 2022 edition of The Best Lawyers in America®. In addition, five attorneys have been included in the 2022 Best Lawyers®: Ones to Watch list. These recognitions include attorneys from the firm’s Chicago, IL; Palm Beach Gardens, FL; and St. Petersburg, FL offices.
2022 Best Lawyers®
Chicago, IL
- Brian C. Bassett – Insurance Law
Palm Beach Gardens, FL
- Rina Clemens – Personal Injury Litigation – Defendants
St. Petersburg, FL
- Scot E. Samis – Appellate Practice
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Traub Lieberman
Insurer's Motion in Limine to Dismiss Case for Lack of Expert Denied
June 26, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe court denied the insurer's motion in limine seeking to dismiss the insureds' complaint due to the absence of expert testimony. Fabozzi v. Lexington Ins. Co., 2014 U.S. Dist. LEXIS 74069 (E.D. N.Y. May 30, 2014).
During the policy period, the insureds noticed their house had serious structural problems, including cracks in the walls and floors that were pitched toward the rear of the house. The insureds had to move from their house. When they submitted a claim, it was denied by Lexington because the losses were caused by "wear and tear, deterioration, earth movement, settlement, shrinking, bulging or expansion of the property leading to cracking of structural components."
The insureds sued. Lexington filed a motion in limine to preclude the testimony of the insureds' expert and to dismiss the complaint for inability to offer prima facie proof of a covered loss absent such expert testimony.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Top Developments March 2024
April 22, 2024 —
Complex Insurance Coverage ReporterCLAIMS-MADE COVERAGE
Zurich Am. Ins. Co. v. Syngenta Crop Prot. LLC, 2024 Del. LEXIS 68 (Del. Feb. 26, 2024)
Delaware Supreme Court concludes that a letter from a lawyer informing an insured of possible lawsuits without identifying potential plaintiffs or demanding payment is not a “claim for damages” within the meaning of claims-made CGL and umbrella liability policies. Citing case law from Delaware and other jurisdictions, it reasoned that, in the ordinary sense, a “claim for damages” (which the policies did not define) is “a demand or request for monetary relief by or on behalf of an identifiable claimant.” According to the court, the letter in question did not meet this definition because it did not identify any claimants “except in the vaguest terms” or request monetary relief on any claimant’s behalf, but rather communicated only a threat of future litigation. As a result, the letter was not a claim made before the policy periods at issue.
POLLUTION EXCLUSION
Wesco Ins. Co. v. Brad Ingram Constr., 2024 U.S. App. LEXIS 1488 (9th Cir. Jan. 23, 2024)
A divided Ninth Circuit panel, applying California law, holds that a pollution exclusion* in a CGL policy does not preclude a duty to defend an underlying suit alleging physical injury from exposure to “clouds of toxic dust” deposited in the environment by a wildfire and released during clean up efforts. Citing MacKinnon v. Truck Ins. Exch., 73 P.3d 1205 (Cal. 2003), the majority explained that determining whether a “pollution event” (i.e., “environmental pollution”) resulting in excluded injury has occurred involves consideration of “the character of the injurious substance” and whether the exposure resulted from a “mechanism specified in the policy.” It concluded that a potential for coverage (and, therefore, a defense obligation) existed because, although wildfire debris may be considered a “pollutant” in certain circumstances, the mechanism alleged in the underlying complaint – “expos[ure] . . . to clouds of toxic dust during the loading and unloading of [the underlying plaintiff’s] truck” – did not clearly constitute an “event commonly thought of as pollution.”
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White and Williams LLP
San Francisco Airport’s Terminal 1 Aims Sky High
January 06, 2020 —
Aileen Cho - Engineering News-RecordEach night, a prancing robotic dog roves the site of Terminal 1 at San Francisco International Airport (SFO), taking photographs of construction on the new terminal, which replaces a 1960s-era building with nearly 900,000 sq ft of state-of-the-art space. The $2.6-billion Harvey Milk terminal is the highlight of a $7.2-billion capital plan. “We are about halfway through,” says Geoff Neumayr, chief development officer for SFO. The program includes a 3,600-space parking garage, a consolidated office campus, a new hotel, a waste treatment plant, improvements to Terminal 2 and the international terminal, and a new on-airport train station. This summer the first nine gates opened at Terminal 1, with nine more slated to open next year and a completion date of 2023 with 25 total gates, including two that will accommodate Airbus A380s double-decker planes.
Aileen Cho, Engineering News-Record
Ms. Cho may be contacted at choa@enr.com
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Wendel Rosen’s Construction Practice Group Receives First Tier Ranking by U.S. News and World Reports
December 02, 2015 —
Garret Murai – California Construction Law BlogOk, it may not be an Oscar, or even an Emmy, but we’re humbled and honoured just the same.
Wendel Rosen’s Construction Practice Group has received a first-tier ranking by the U.S. News and World Reports in its 2016 Best Law Firms rankings. This is the third year in a row that the firm’s Construction Practice Group has received this honor. Joining it on stage is the firm’s Real Estate, Bankruptcy, and Real Estate Litigation practices which also received first-tier rankings and the firm’s Land Use practice which received a second-tier ranking.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
A Recession Is Coming, But the Housing Market Won't Trigger It
June 12, 2023 —
Edward Harrison - BloombergOne big reason to continue to believe this is no 2008-style financial crisis in the making is the housing market, which has held up well. That means, we’re more likely to experience a garden-variety recession, and I think it will happen sometime later this year.
Why this isn’t another 2008-style crisis
Residential property was famously the trigger for a cataclysmic global financial crisis a decade and a half ago. That’s because residential property is one of the principal assets of the middle classes across the globe. And it’s a leveraged investment to boot because of the money borrowed through mortgages. That makes large and pervasive house-price declines toxic for the economy.
But not that many people are worrying about house prices today. So I thought I’d take a breather from the doom and gloom surrounding commercial real estate, banks and the debt ceiling to focus on house prices and why they aren’t worrying us this go round. And I’ll use one of the pricier markets, the UK, as a first example.
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Edward Harrison, Bloomberg
Contractor’s Claim for Interest on Subcontractor’s Defective Work Claim Gains Mixed Results
April 27, 2020 —
John J. Gazzola, Associate, Pepper Hamilton LLP - ConsensusDocsThis case concerns calculation of a damages award to a general contractor, Skanska USA Building, Inc., on its claim for breach of contract against its masonry subcontractor, J.D. Long Masonry, Inc., arising from Long’s faulty construction of a masonry façade at a medical research facility in Baltimore. When the façade collapsed and Long failed to repair it, Skanska hired a replacement subcontractor, C.A. Lindman, to remediate Long’s defective work and filed suit against Long to recover the resulting damages. After the court granted Skanska’s motion for summary judgment as to liability, Skanska moved for summary judgment on the issue of damages, relying on the indemnification provision of the subcontract to seek compensatory damages, pre- and post-judgment interest, and litigation fees. In the subcontract, Long agreed to indemnify and hold Skanska harmless from all claims, losses, costs and expenses, including attorneys’ fees, arising before or after completion of Long’s work, caused by, arising out of, resulting from, or occurring in connection with Long’s performance of the work or breach of the subcontract.
The court first applied the terms of this provision to award Skanska compensatory damages, holding that Skanska was, as a matter of law, entitled to recover the amount of the Lindman subcontract and general conditions incurred to supervise remediation of Long’s work. The court, however, denied Skanska’s claim for pre-judgment interest on the entirety of these damages. Skanska asserted that it was entitled to pre-judgment interest on the full award, calculated from the date on which it first paid Lindman. The court disagreed, explaining that, under Maryland law, a claimant is entitled to an award of pre-judgment interest as of right only when the amount due is certain, definite and liquidated by a specific date prior to judgment. The court reasoned that, because much of the Lindman subcontract value was composed of later-executed change orders, an award of pre-judgment interest could not be uniformly calculated back to the date of Skanska’s first payment to Lindman. And moreover, because Skanska continued to withhold sums due to Lindman pending resolution of certain issues, awarding Skanska pre-judgment interest on amounts it had not yet paid would result in a “windfall” to Skanska because there was no “use of income” loss to be compensated.
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John J. Gazzola, Pepper Hamilton LLPMr. Gazzola may be contacted at
gazzolaj@pepperlaw.com