No Coverage for Counterclaim Arising from Insured's Faulty Workmanship
August 03, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe Eighth Circuit found there was no coverage for the insured's faulty workmanship. Am. Family Mut. Ins. Co., S.I. v. Mid-American Grain Distributors, LLC, 958 F.3d 748 (8th Cir. 2020).
Mid-American contracted with Lehenbauer to design and construct a grain storage and distribution facility for Lehenbauer. Before the work was competed, Lehenbauer terminated Mid-American's services. Mid-American then sued Lehenbauer for breach of contract. Lehenbauer counterclaimed against Mid-American, alleged breach of "implied duties of workmanlike performance and fitness for a particular purpose" and negligence. Mid-American tendered the counterclaim to American Family. American Family accepted the tender under a reservation of rights, but sued Mid-American for a declaratory judgment.
The district court granted American Family's motion for summary judgment, concluding that the counterclaims did not allege an occurrence.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Sometimes it Depends on “Whose” Hand is in the Cookie Jar
January 21, 2015 —
Roger Hughes – California Construction Law BlogIn a lengthy and somewhat detailed decision, the California Court of Appeal for First District, in Pittsburg Unified School District v. S.J. Amoroso Construction Company, Inc., Case No. A138825 (December 22, 2014), held that a public entity could unilaterally withdraw retention funds during a pending legal dispute without the court first finding that the contractor had defaulted on the public works project.
Background
In 2008, general contractor S.J. Amoroso Construction Company, Inc. (“S.J. Amoroso”) entered into a construction contract with the Pittsburg Unified School District (“District”) for the reconstruction and modernization of a high school in Pittsburg, California.
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Roger Hughes, Wendel Rosen Black & Dean LLPMr. Hughes may be contacted at
rhughes@wendel.com
Zillow Topping Realogy Shows Web Surge for Housing Market
July 30, 2014 —
Prashant Gopal and John Gittelsohn – BloombergZillow Inc. (Z)’s purchase of Trulia Inc. makes the online company such a force in U.S. real estate that its market value now surpasses that of Realogy Corp., owner of renowned brokerage brands from Coldwell Banker to Century 21.
Zillow, the biggest U.S. real estate website, has seen its market value jump to about $5.83 billion from $4.99 billion on July 23, the day before Bloomberg News reported the deal talks with rival Trulia. Realogy, the largest residential brokerage operator, has a market value of about $5.47 billion, compared with $5.67 billion last week, data compiled by Bloomberg show.
The shift underscores the growing role of the Web in U.S. home sales as buyers start their hunt for homes and mortgages online and rely less on real estate agents, a migration that has taken longer than in industries such as music or travel. While Zillow is unlikely to compete directly with brokers, whose ad dollars are its top revenue source, buying Trulia (TRLA) gives it more command over marketing fees, sparking concerns among Realtors such as Stephen FitzMaurice that costs will rise.
Mr. Gopal may be contacted at pgopal2@bloomberg.net; Mr. Gittelsohn may be contacted at johngitt@bloomberg.net
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Prashant Gopal and John Gittelsohn, Bloomberg
Examining Best Practices for Fire Protection of Critical Systems in Buildings
July 16, 2023 —
Jon Jones - Construction ExecutiveProtecting building occupants and first responders is critically important when designing and constructing commercial buildings. The National Fire Protection Association (NFPA), devoted to eliminating death, injury, property and economic loss from fire, electrical and related hazards, was formed in 1896. Shortly afterward, in 1897, the National Electrical Code (NEC) was established to standardize electrical safety for wiring, alarms and related equipment. Since the birth of these two important standardizing organizations, fire codes have been constantly modified to meet the changing safety needs of new infrastructure.
In 1996, the NEC identified key circuits for fire survivability, including emergency systems, fire pumps and fire alarms. Per the 1996 code, these circuits needed to be able to survive for one hour in case of fire. However, in the late 1990s and early 2000s, these requirements began to shift to demand two hours of survivability.
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Jon Jones, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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L.A.’s Modest Solution to the ‘Missing Middle’ Housing Problem
May 24, 2021 —
Kriston Capps - BloombergPractical ideas aren’t often the stuff of architecture contests. Right off the bat, that set Los Angeles’s Low-Rise design challenge apart.
A project led by the mayor’s office and the city’s chief design officer, Christopher Hawthorne, Low-Rise asked entrants to reimagine what an L.A. urban landscape with abundant housing could look like in the years to come. The organizers wanted the participating designers to think about their submissions the way they might approach a project for a local client or community. The results, which were unveiled this week, don’t look like future-forward science fiction, but rather doable local solutions to a thorny problem: the stubborn lack of affordable options across the city.
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Kriston Capps, Bloomberg
Constructive Suspension (Suspension Outside of an Express Order)
December 13, 2022 —
David Adelstein - Florida Construction Legal UpdatesIn the federal procurement arena, there is a concept known as “constructive suspension.” Constructive suspension, while known in the federal arena, should reasonably apply to all projects when work is stopped outside of an express order to stop the work based on the law below. An unreasonable suspension is an unreasonable suspension and an express order to stop the work does not negate the effects of what really amounts to a suspension.
“Constructive suspension occurs when work is stopped absent an express order by the contracting officer and the government is found to be responsible for the work stoppage.” P.R. Burke Corp. v. U.S., 277 F.3d 1346, 1359 (Fed. Cir. 2002). The government delay must be unreasonable to support a constructive acceleration claim. Id.
“To demonstrate such a constructive suspension of work, the contractor must show that the delay (1) was for an ‘unreasonable length of time,’ (2) was proximately caused by the government’s actions, and (3) resulted in some injury to the contractor.” Fireman’s Fund Ins. Co. v. U.S., 2001 WL 36415627, *6 (Fed.Cl. 2001) (citation omitted). “Relative to proving that the delay was directly caused by the government, the contractor must concomitantly show that it was not delayed by any concurrent cause that would have independently generated the delay during the same time period even if it does not predominate over the government’s action as the cause of the delay.” Beauchamp Const. Co. v. U.S., 14 Cl.Ct. 430, 437 (Cl.Ct. 1988).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Insurer's Denial of Coverage to Additional Insured Constitutes Bad Faith
May 21, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe insurer's unreasonable denial of a defense and indemnity to a lessor/additional insured was found to be in bad faith. Seaway Props. v. Fireman's Fund Ins. Co., 2014 U.S. Dist. LEXIS 55998 (W.D. Wash. April 22, 2014).
Seaway leased restaurant space to Ciao Bella Food, LLC. In January 10, 2010, the underlying plaintiff was on her way to the restaurant when she attempted to step down from a concrete platform between the building parking lot and the entrance to the restaurant. Seaway's lease gave Ciao Bella the right to use the common areas, including the parking lot, but did not grant Ciao Bella exclusive control over the common areas. The plaintiff suffered injuries and claimed both Ciao Bella and Seaway were liable.
Seaway's lease required Ciao Bella to maintain a CGL policy and to name Seaway as an additional insured. Ciao Bella did so by securing a policy with Fireman's Fund. Fireman's Fund had notice of the plaintiff's claim by November 2010. Seaway demanded in March 2012 that Fireman's Fund indemnify and defend it. In September 2012, two years after it first learned of the plaintiff's injury, Fireman's Fund denied coverage, asserting that Seaway was not an insured under the policy.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Virtual Mediation – How Do I Make It Work for Me?
December 21, 2020 —
Adrian L. Bastianelli, III & Jennifer Harris - Peckar & Abramson, P.C.Mediation took the construction industry by storm in the late 1980’s and has become a staple for resolving construction claims. Today, most construction contracts, including the ConsensusDocs, require mediation as a condition precedent to binding dispute resolution, whether it be arbitration or litigation. As a result, many construction executives have spent long hours sitting in conference rooms trying to reach resolution with their counterpart through mediation in order to avoid the alternative – costly arbitration or litigation that often produces an unsatisfactory result.
While many businesses have foreclosed the possibility of meeting in person due to the COVID-19 pandemic, the contractual requirements for mediation remain. Thus, in most cases, in-person or live mediation is no longer an option; however, attorneys and mediators have developed a virtual process to replace the live process. With a new process comes many questions: Does the virtual process work? What are the best practices and pitfalls for virtual mediation? Will virtual mediation continue when COVID-19 fades away? How do I make virtual mediation work for me? The answers to these questions and more are discussed below.
Reprinted courtesy of
Adrian L. Bastianelli, III, Peckar & Abramson, P.C. and
Jennifer Harris, Peckar & Abramson, P.C.
Mr. Bastianelli may be contacted at abastianelli@pecklaw.com
Ms. Harris may be contacted at jharris@pecklaw.com
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