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DIRECTORY AND CAPABILITIES

Pennsylvania Federal Court Confirms: Construction Defect Claims Not Covered by CGL Policies

March 06, 2022 — Nathan A. Cazier & Scott S. Thomas - Payne & Fears
The construction industry operates under the constant spectre of claims seeking damages for defective or faulty workmanship. Fortunately, the law in most states treats these claims as covered under commercial general liability (“CGL”) policies. A small minority of states take a much stingier view. In a newly decided case, a Pennsylvania federal court confirmed that Pennsylvania belongs to this small group of states that regard construction claims as not worthy of liability insurance coverage. Main St. Am. Assurance Co. v. Howard Lynch Plastering, Inc., No. CV 21-3977, 2022 WL 445768, (E.D. Pa. Feb. 14, 2022). Main St. involves a typical construction defect case: W.B. Homes (“W.B.”) developed a residential community, contracting with various trades to build the homes. W.B. required these subcontractors to obtain liability insurance covering their work and, when homeowners sued W.B. for damages due to allegedly faulty work, W.B. tendered the claim to these insurers. One of them, Main Street Assurance Co. (“Main Street”) then sued W.B. for declaratory relief, arguing that under Pennsylvania law, it had no duty to defend W.B. Reprinted courtesy of Nathan A. Cazier, Payne & Fears and Scott S. Thomas, Payne & Fears Mr. Cazier may be contacted at nac@paynefears.com Mr. Thomas may be contacted at sst@paynefears.com Read the court decision
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After Restoring Power in North Carolina, Contractor Faces Many Claims

August 10, 2017 — Jim Parsons - Engineering News-Record
Having successfully helped to restore power to two North Carolina barrier islands, PCL Civil Constructors now faces the fallout from a July 27 construction incident that forced a week-long evacuation of 60,000 visitors, putting a potential multimillion-dollar dent in the region’s tourism-dependent economy. Read the court decision
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Reprinted courtesy of Jim Parsons, ENR
ENR may be contacted at ENR.com@bnpmedia.com

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Muir named Brown and Caldwell Eastern leader

January 09, 2023 — Brown and Caldwell
HARTFORD, Conn., Jan. 04, 2023 — Leading environmental engineering and construction services firm Brown and Caldwell today announces Senior Vice President Eric Muir has been promoted to leader of its growing Eastern business. The largest of the company's regions with over 40 offices east of the Mississippi River, the Eastern business consists of clients in the water, wastewater, stormwater, environmental services, and water resources sectors. Muir has a 20-year background in delivering highly technical civil and environmental engineering projects. He has held leadership and technical roles on some of the most complex projects encompassing water and wastewater treatment, distribution and collection, pumping, and conveyance systems. His experience includes master planning, detailed design, permitting, and construction services. Since joining Brown and Caldwell in 2018, Muir's business development expertise and client-centric focus have played a key role in setting the company's regional strategic direction to achieve strong financial results. "Eric is a highly strategic and inclusive leader, passionate about mentoring employees to reach their full potential," said Brown and Caldwell Chief Operating Officer Euan Finlay. "His deep knowledge of clients' environmental obstacles will enhance the positive impacts our teams have on the communities we serve." Based in Connecticut, Muir will manage overall operations and lead the implementation of the firm's strategy in the East. He will continue the region's growth and lead efforts to make Brown and Caldwell the company of choice for clients, employees, and partners. He will work alongside regional leadership to align the firm's talent pool with clients to provide innovative, cost-effective solutions to challenges related to water quality, biosolids management, and aging infrastructure. About Brown and Caldwell Headquartered in Walnut Creek, California, Brown and Caldwell is a full-service environmental engineering and construction services firm with 52 offices and 1,800 professionals across North America and the Pacific. For 75 years, our creative solutions have helped municipalities, private industry, and government agencies successfully overcome their most challenging water and environmental obstacles. As an employee-owned company, Brown and Caldwell is passionate about exceeding our clients' expectations and making a difference for our employees, our communities, and our environment. For more information, visit www.brownandcaldwell.com Read the court decision
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Repairs Could Destroy Evidence in Construction Defect Suit

June 28, 2013 — CDJ STAFF
Repair work is underway on the Palladium concert hall in Carmel, Indiana, a suburb of Indianapolis, a contractor for the project says that the repairs will destroy evidence that they need to defect against additional construction defect allegations. Work stopped in 2009 for three months of repairs after problems were found in the steel roof supports. Steel Supply & Engineering Co. has claimed that the column failures are due to errors in the design. They say that if the repair work continues, it “would result in the spoliation of evidence, and will irreparably harm the defendants, and ultimately adversely affect their ability to protect their rights in the action.” They have asked the court to bring repairs to a stop until they are able to inspect the steel. Read the court decision
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Real Estate & Construction News Roundup (4/24/24) – Omni Hotels Hit with Cyberattack, Wisconsin’s Low-Interest Loans for Home Construction, and Luxury Real Estate Sales Increase

May 20, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, alternative lenders take the lead in CRE loans, construction workers worry about artificial intelligence, prospective homeowners express concerns about climate risks, and more!

• Even as overall real estate sales fell 4% nationwide in the first quarter, luxury real estate sales increased more than 2%, posting their best year-over-year gains in three years. (Robert Frank, CNBC)
• As many banks cut back from commercial real estate loans amid rising interest rates and a regional banking crisis that exploded in early 2023, a number of alternative lenders jumped in to lead the way. (Andrew Coen, Commercial Observer)
• Workers in construction and other industries are worried about artificial intelligence, and it’s keeping their companies from moving forward more decisively with the surging technology. (Matthew Thibault, Construction Dive)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Remote Trials Can Control Prejudgment Risk

September 07, 2020 — Robert G. Devine, Victor J. Zarrilli & Kimberly M. Collins - White and Williams LLP
While courts across the country are largely unavailable to litigants demanding a jury trial, pre-judgment interest rules present an increasing penalty risk to a defendant wanting its day in court and may not always make a plaintiff whole. The COVID-19 pandemic has altered the manner in which people and industries operate across the board. In light of the need to maintain social distancing whenever possible, the use of technology to replace in-person appearances is becoming more commonplace. As more attorneys become comfortable with the remote platform, the willingness to consider a remote trial grows. With in-person jury trials suspended until further notice, it is important for attorneys and parties to consider the attendant consequences of the indefinite delay in waiting for a traditional jury trial. Aside from general inconvenience, continued delays may have a substantial financial impact, particularly with regard to the accumulation of pre-judgment interest. Reprinted courtesy of White and Williams LLP attorneys Robert G. Devine, Victor J. Zarrilli and Kimberly M. Collins Mr. Devine may be contacted at deviner@whiteandwilliams.com Mr. Zarrilli may be contacted at zarrilliv@whiteandwilliams.com Ms. Collins may be contacted at collinsk@whiteandwilliams.com Read the court decision
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South Carolina School District Investigated by IRS and FBI

March 12, 2014 — Beverley BevenFlorez-CDJ STAFF
The IRS and FBI are investigating operations of the Jasper County School District in South Carolina. According to The Post and Courier, “Assistant U.S. Attorney James May sent a letter to district officials asking them to keep financial documents, the minutes of school board meetings, employment files for top officials and all letters and emails between district employees.” Some of the problems the school district has dealt with are “legal challenges.” One of the disputes, involved a “multi-million dollar” construction defect claim for “facilities built in 2007.” The Post and Courier reported that this made up twenty percent of the more than half a million dollars paid in legal fees by the district. South Carolina “lawmakers are considering the Parent Empowerment Act, a bill that would allow the state's Education Department to take over districts that are mismanaged or need improvement if a majority of parents call for it,” according to The Post and Courier. Read the court decision
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New Illinois Supreme Court Trigger Rule for CGL Personal Injury “Offenses” Could Have Costly Consequences for Policyholders

March 09, 2020 — Michael S. Levine & Kevin V. Small - Hunton Insurance Recovery Blog
The Illinois Supreme Court’s recent decision in Sanders v. Illinois Union Insurance Co., 2019 IL 124565 (2019), announced the standard for triggering general liability coverage for malicious prosecution claims under Illinois law. In its decision, the court construed what appears to be a policy ambiguity against the policyholder in spite of the longstanding rule of contra proferentem, limiting coverage to policies in place at the time of the wrongful prosecution, and not the policies in effect when the final element of the tort of malicious prosecution occurred (i.e. the exoneration of the plaintiff). The net result of the court’s ruling for policyholders susceptible to such claims is that coverage for jury verdicts for malicious prosecution – awarded in today’s dollars – is limited to the coverage procured at the time of the wrongful prosecution, which may (as in this case) be decades old. Such a scenario can have costly consequences for policyholders given that the limits procured decades ago are often inadequate due to the ever-increasing awards by juries as well as inflation. Moreover, it may be difficult to locate the legacy policies and the insurers that issued such policies may no longer be solvent or even exist. A copy of the decision can be found here. The Sanders case arose out of the wrongful conviction of Rodell Sanders in 1994 by the City of Chicago Heights (the “City”). Mr. Sanders sought recompense for, among other things, malicious prosecution through a federal civil rights action against the City. In September 2016, Mr. Sanders obtained a consent judgment for $15 Million; however, at the time of the wrongful conviction, seventeen years earlier, the City’s only applicable insurance policy provided just $3 million in coverage. The City contributed another $2 million towards the judgment and, in exchange for Mr. Sanders’s agreement not to seek the $10 million balance from the City, assigned its rights under the policies for the 2012 to 2014 period. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Kevin V. Small, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Small may be contacted at ksmall@HuntonAK.com Read the court decision
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