Supreme Court Finds Insurance Coverage for Intentional (and Despicable) Act of Contractor’s Employee
July 21, 2018 —
Garret Murai - California Construction Law BlogNot to cast shade on your fun in the sun, but here’s an unusual, albeit sad and creepy, one for you. I’m bummed even writing about this one.
In Liberty Surplus Insurance Corporation v. Ledesma & Meyer Construction Company, Inc., Case No. S236765 (June 4, 2018), the California Supreme Court addressed whether a general contractor’s commercial general liability carrier was obligated to defend and whether the carrier was liable for damages sustained by a young girl who was molested by an employee of the general contractor during construction at a school. At issue was whether the policy’s definition of an “occurrence,” which was defined, like most policies, as “an accident,” was triggered by the “intentional” and clearly not accidental act of the general contractor’s employee.
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Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Five Frequently Overlooked Points of Construction Contracts
October 18, 2021 —
Craig H. O'Neill - White and Williams LLPThere is no shortage of articles addressing the key points of construction contracts. Just enter that phrase into any internet search engine and you will find plenty. It should go without saying that a construction contract should be in writing, it should clearly identify the scope of work to be performed and the sums to be paid for that work, and it should address the parties’ rights and responsibilities with regard to termination or suspension of the contract, correcting defective work, and handling claims and disputes—just to name a few. Of course, these items should receive their due consideration. Too often, however, other important aspects of the construction contract get shortchanged. This article aims the spotlight on five often overlooked aspects of construction contracts.
Project Schedules
Surprisingly, many construction contracts pay little attention to a central component of any construction project: the project schedule. Many contracts provide the dates of commencement and substantial completion but not much else. With the frequent use of project management techniques such as the Critical Path Method (CPM) and the associated software, it is easier than ever to identify which tasks should be prioritized and identify potential areas of delay. The owner’s contract with the general contractor should clearly define the scheduling methods used and provide measures to keep the parties informed of the progress of the work. By including basic scheduling requirements in the contract documents—such as the submission of “Baseline Project Schedules” (consistent with the contract time provisions), “Schedule Progress Updates” (comparing the progress of the work against the Baseline Project Schedule), and “Schedule Recovery Plans” (when Schedule Project Updates indicate projected delays)—the parties can avoid or reduce disputes over project delays that often lead to litigation.
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Craig H. O'Neill, White and Williams LLPMr. O'Neill may be contacted at
oneillc@whiteandwilliams.com
EPA Will Soon Issue the Latest Revision to the Risk Management Program (RMP) Chemical Release Rules
February 10, 2020 —
Anthony B. Cavender - Gravel2GavelOn November 21, 2019, EPA released a pre-publication copy of its Reconsideration of the revised Risk Management Program (RMP) Rules. In an accompanying statement, the agency noted that it has taken steps to “modify and improve” the existing rule to remove burdensome, costly and unnecessary requirements while maintaining appropriate protection (against accidental chemical releases) and ensuring responders have access to all of the necessary safety information. This action was taken in response to EPA’s January 13, 2017 revisions that significantly expanded the chemical release prevention provisions the existing RMP rules in the wake of the disastrous chemical plant explosion in West, Texas. The Reconsideration will take effect upon its publication in the Federal Register.
Background
As recounted by the D. C. Circuit in its August 2018 decision in the case of Air Alliance Houston, et al. v. EPA, in 1990, the Congress amended the Clean Air Act to force the regulation of hazardous air pollutants (see 42 USC Section 7412). An initial list of these hazardous air pollutants was also published, at Section 7412 (b). Section 112(r) (codified at 42 USC Section 7412 (r)), authorized EPA to develop a regulatory program to prevent or minimize the consequences of a release of a listed chemical from a covered stationary source. EPA was directed to propose and promulgate release prevention, detection, and correction requirements applicable to stationary sources (such as plants) that store or manage these regulated substances in amounts determined to be above regulated threshold quantities. EPA promulgated these rules in 1996 (see 61 FR 31668). The rules, located at 40 CFR Part 68, contain several separate subparts devoted to hazard assessments, prevention programs, emergency response, accidental release prevention, the development and registration of a Risk Management Plan, and making certain information regarding the release publicly available. EPA notes that over 12.000 RMP plans have been filed with the agency.
In January 2017, in response to the catastrophe in West, EPA issued substantial amendments to these rules, covering accident prevention (expanding post-accident investigations, more rigorous safety audits, and enhanced safety training), revised emergency response requirements, and enhanced public information disclosure requirements. (See 82 FR 4594 (January 13, 2017).) However, the new administration at EPA, following the submission of several petitions for reconsideration of these revised rules, issued a “Delay Rule” on June 14, 2017, which would have extended the effective date of the January 2107 rules until February 19, 2019. On August 17, 2018, the Delay Rule was rejected and vacated by the D.C. Circuit in the aforementioned Air Alliance case (see 906 F. 3d 1049 (DC Circuit 2018)), which had the effect of making the hotly contested January 2017 RMP revisions immediately effective.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Remediation Work Caused by Installation of Defective Tiles Not Covered
August 19, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe federal district court applied California law to find there was no coverage when the subcontractor was sued for broken tiles on a project. Am. Home Assur. Co. v. SMG Stone Co., 2015 U.S. Dist. LEXIS 75910 (N. D. Cal. June 11, 2015).
The subcontractor installed stone floor tiles at the project. The developer discovered fractures in some of the tiles. The fractured tiles were removed and replaced. This remediation process required the removal and replacement of portions of drywall and concrete subfloor installed by other subcontractors. The developer sued the subcontractor, who tendered the defense to its insurer.
The insurer denied coverage and filed for a declaratory judgment that there was no coverage for the floor tile fracture claims.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Pennsylvania Supreme Court’s Ruling On Certificates Of Merit And “Gist Of Action” May Make It More Difficult For An Architect Or Engineer To Seek An Early Dismissal
January 07, 2015 —
Jerrold P. Anders and Michael W. Jervis - White and Williams LLPIn Bruno v. Erie Ins. Co., the Pennsylvania Supreme Court clarified the gist of the action doctrine that distinguishes between tort and contract claims. In doing this, the Court also ruled that a Certificate of Merit in a professional liability claim is necessary only if the plaintiff is in a direct client relationship with the licensed professional. This clarification of the Certificate of Merit requirement may limit the ability of architects and engineers to obtain an early dismissal in lawsuits.
Bruno v. Erie Ins. Co. involves a common scenario. The Brunos filed a claim with their homeowners’ insurer after discovering mold in their home during remodeling. The policy included an endorsement providing coverage for mold. As part of the claim adjustment, Erie hired an engineer to inspect the mold and to provide an opinion on its severity to determine the extent of remediation required. The engineer hired by Erie reported to Mr. Bruno that the mold was harmless, that concern over health problems due to mold was merely a “media frenzy,” and that the Brunos should continue with their renovations.
Reprinted courtesy of
Jerrold P. Anders, White and Williams LLP and
Michael W. Jervis, White and Williams LLP
Mr. Anders may be contacted at andersj@whiteandwilliams.com
Mr. Jervis may be contacted at jervism@whiteandwilliams.com
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Extreme Rainfall Is Becoming More Frequent and Deadly
November 11, 2024 —
Lou Del Bello - BloombergTorrential rains that triggered floods and landslides have killed hundreds of people and displaced millions across parts of Africa, Europe, Asia and the US in recent months.
The unprecedented deluges overwhelmed even communities accustomed to extreme weather and showed the limitations of the early-warning systems and emergency protocols established in many countries to avoid major loss of life.
Climate scientists have warned that an accelerated water cycle is locked into the world’s climate system due to past and projected greenhouse gas emissions, and is now irreversible.
The communities that tend to pay the highest price are often in poorer countries, where environments can be more fragile and governance more patchy, and there are fewer resources to bounce back after a disaster.
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Lou Del Bello, Bloomberg
Gloria Gaynor Sues Contractor over Defective Deck Construction
October 22, 2013 —
CDJ STAFFGloria Gaynor, known for her 1978 disco hit, “I Will Survive” is suing the firm that renovated her second-floor deck, alleging that the work lead to water intrusion into her home. Ms. Gaynor also accuses the company of consumer fraud, alleging that Diaz Landscape Design & Tree Service LLC lacked registration as a home improvement contractor and failed to obtain a building permit for the structure.
Ms. Gaynor paid about $38,000 for the replacement of her deck and other renovations to her property in 2007. Subsequently, the singer noticed “ponding of water on the deck, water damage to wood sills and supports, and the formation of mold,” according to the lawsuit. Diaz Landscape attempted repairs, but “the problems persisted and continue to persist causing further damage.”
The lawsuit claims that the cost of replacing the defective deck construction would cost about $120,000.
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National Coalition to Provide Boost for Building Performance Standards
March 14, 2022 —
Pam McFarland - Engineering News-RecordEnergy efficiency advocates are hopeful that a new Biden administration coalition to promote and strengthen building performance standards could accelerate federal, state and local efforts to reduce carbon emissions from buildings.
Reprinted courtesy of
Pam McFarland, Engineering News-Record
Ms. McFarland may be contacted at mcfarlandp@enr.com
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