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South Carolina Legislature Redefining Occurrences to Include Construction Defects in CGL Policies

April 01, 2011 — Beverley BevenFlorez CDJ STAFF

The question of what circumstances must be in place for construction defects to be covered in a general commercial liability (CGL) policies is being raised by the courts and the legislature in South Carolina. The Insurance Journal reports that the American Insurance Association as well as the Property and Casualty Insurers Association of America are speaking out on the issue.

The problem seems to be centered on what defines an “occurrence.” CGL policies were not meant to cover faulty workmanship, according to the filing by the South Carolina Supreme Court. In January of this year, the South Carolina Supreme Court reversed the ruling in Crossmann Communities v Harleysville Mutual declaring that “Respondents cannot show the damage here was the result of an occurrence. Rather, the damage was a direct result and the natural and expected consequence of faulty workmanship; faulty workmanship did not cause an occurrence resulting in damage.” They focused their attention on the word “accident,” stating that there is a fortuity element that is not diminished.



The South Carolina legislature reacted by producing a bill that would add new language directly negating the ruling by the Supreme Court. The South Carolina bill S-431 would change the definition of an occurrence in regards to construction defects as follows: “For a liability insurance policy issued to a construction professional, an ‘occurrence’ means, at a minimum: (1) an accident; or (2) continuous or repeated exposure to substantially the same general harmful condition or substance. No additional requirement of a fortuitous event is needed to constitute an ‘occurrence.’”



S-431 is currently residing in the House Committee on Labor, Commerce and Industry.



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Mass. Gas Leak Follows NTSB Final Report, Call for Reforms

November 24, 2019 — Johanna Knapschaefer - Engineering News-Record
A major natural-gas leak forced Lawrence, Mass., residents to evacuate their homes early on Sept. 27. National Grid cut power to more than 1,300 customers to avoid another disaster like last year’s natural-gas explosions and fires in Lawrence and two other towns north of Boston. The leak came just days after federal officials called for changes to national pipeline regulations as they released a final report on the causes of the Sept. 13, 2018, disaster. Reprinted courtesy of Johanna Knapschaefer, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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Congratulations to BWB&O’s Las Vegas Team on Obtaining Summary Judgment for the Firm’s Landowner Client!

August 03, 2022 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Bremer Whyte Brown & O’Meara, LLP is proud to announce Partner Anthony Garasi, Senior Associate Madeline Arcellana, and Associate Laura Rios successfully won a Motion for Summary Judgment (“MSJ”), while also defeating two competing MSJs filed by Plaintiff, and ultimately obtaining a full dismissal of their landowner client against claims of premises liability. Plaintiff, who sued both BWB&O’s client (the landowner) and its tenant, alleged injury when he slipped and fell, while utilizing a temporary wooden board as a ramp that was placed on the subject property by the tenant, who was occupying the property subject to a lease-to-own arrangement with BWB&O’s client. In this Motion practice, the BWB&O team successfully obtained a ruling from the Court to find that BWB&O’s client had effectively contracted to delegate its maintenance responsibilities to its tenant, and also that the tenant owed BWB&O’s client full indemnity for Plaintiff’s alleged losses. Read the court decision
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Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

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Texas Supreme Court to Review Eight-Corners Duty-to-Defend Rule

April 05, 2021 — Jared De Jong - Payne & Fears
The Texas Supreme Court has accepted certified questions from the Fifth Circuit Court of Appeals to clarify Texas’ eight-corners rule for determining the existence of a duty to defend. In Bitco Gen. Ins. Corp. v. Monroe Guar. Ins. Co., No. 19-51012, 2021 WL 955155 (5th Cir. Mar. 12, 2021), certified question accepted (Mar. 19, 2021), the Fifth Circuit asked the Texas Supreme Court to provide guidance on Texas insurance law. In Bitco, the insured was sued for negligently drilling an irrigation well. The insured allegedly got a drilling bit stuck in a bore hole, refused to fix the issue, and eventually abandoned the well. The policy did not cover continuing property damage known to the insured before the policy incepted. The policy period ran from Oct. 6, 2015 to Oct. 6, 2016, and the parties stipulated the drill bit became stuck in November 2014. Read the court decision
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Reprinted courtesy of Jared De Jong, Payne & Fears
Mr. De Jong may be contacted at jdj@paynefears.com

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Meet BWB&O’s 2025 Best Lawyers in America!

September 09, 2024 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Bremer Whyte Brown & O’Meara, LLP is proud to announce Partners Nicole Whyte, Keith Bremer, Vik Nagpal, John O’Meara, Sheila Stiles, Patrick Au, and Nicole Schmidt have been selected by their peers for inclusion in the 31st edition of The Best Lawyers in America, and Partner Devin Gifford, and Associates Melissa Youngpeter, Ryan Flanagan, and Alexandria Zeis are included in the fifth edition of Best Lawyers: Ones to Watch in America. Each person is being recognized for their diligent work in the areas of Family Law, Construction, Commercial, Personal Injury, and Real Estate Litigation. Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP Read the full story... Read the court decision
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Home Prices in 20 U.S. Cities Increase at Slower Pace

February 25, 2014 — Victoria Stilwell – Bloomberg
Home prices in the U.S. climbed at a slower pace in the year through December, pointing to a moderation in the market that will help keep more properties within reach for prospective buyers. The S&P/Case-Shiller index of property values in 20 cities rose 13.4 percent from December 2012 after increasing 13.7 percent in the year ended in November, the group said today in New York. It was the first deceleration since June. The gain matched the median estimate of 33 economists surveyed by Bloomberg. Price appreciation is slowing as rising mortgage rates combined with harsh winter weather to cool home purchases over the past few months. Smaller increases mean more homes will remain affordable as the labor market improves, helping maintain the rebound in residential real estate that has boosted growth. Read the court decision
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Reprinted courtesy of Victoria Stilwell, Bloomberg
Ms. Stilwell may be contacted at vstilwell1@bloomberg.net

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The Advantages of Virtual Reality in Construction

August 20, 2019 — Spivey Lipsey - Construction Executive
Virtual realty provides an unparalleled spatial sense for visualization at a lower cost than full-scale replicas. Today, VR is being used heavily in preconstruction to align owner expectations and educate design team stakeholders. For those already employing BIM solutions, coordination can be made much more effective by leveraging existing design models with very little added cost. As anyone who has tried a VR headset before can attest, the ability to accurately perceive spatial relationships in design cannot be replicated through traditional 2D media such as screens or paper. VR solutions also have the ability to iterate rapidly. These technologies are linked to BIM, providing real-time feedback as the design changes. This is in stark contrast to traditional full-scale mockups and offline renders, which are cumbersome and time-consuming to update with design changes. Substantial benefits without a hefty price tag Budget limitations and ROI are always a concern with emerging technology. Fortunately, VR comes cheaply with BIM production. These solutions are significantly less expensive than full-scale mockups and far more efficient when compared to longhand sequencing explanations and esoteric detailing of complex designs. Even the most elaborate VR setups are a fraction of overall construction cost, ranging from a few hundred to a few thousand dollars depending on the level of adoption. Reprinted courtesy of Spivey Lipsey, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Vertical vs. Horizontal Exhaustion – California Supreme Court Issues Ruling Favorable to Policyholders

May 11, 2020 — Alan Packer & James Hultz - Newmeyer Dillion
For years, when faced with damage or injury spanning several policy periods, excess general liability insurers have argued that all potentially applicable underlying policies must be exhausted before the excess drops down to provide coverage (“horizontal exhaustion”). Insureds, on the other hand, insist that they are entitled to immediately access an excess policy for any given policy year, if that year’s underlying policy has exhausted (“vertical exhaustion”). Vertical exhaustion not only enables insureds to directly tap into the excess insurance for which they paid substantial premiums, but also enables the insured to moderate risk given that different lower level policies might (1) be needed for other claims, (2) have larger self-insured retentions, or (3) have other less favorable coverage provisions. Allowing an insured to proceed via vertical exhaustion would also eliminate the heavy administrative and logistical burden that could result from having to pursue and exhaust all underlying coverage on multi-year claims. In Montrose Chemical Corp. v. Superior Court, 2020 WL 1671560 (April 6, 2020), the California Supreme Court has come down in favor of policyholders and vertical exhaustion. The Montrose case involved contamination that allegedly occurred between 1947 and 1982 and different liability insurance towers (comprised of primary and excess layers) for each year. The insured, Montrose, maintained a tower of insurance coverage, year by year, and faced claims asserting damage that spanned several decades. Montrose sought coverage from excess insurers under a vertical exhaustion approach. Not surprisingly, Montrose’s excess insurers insisted that horizontal exclusion was required and that Montrose was required to exhausted all other policies with lower attachment points in every single involved policy period. The California Supreme Court ruled in Montrose’s favor, holding that the insured may insist upon full coverage from an excess insurer once the layer directly below it has exhausted. The Court reasoned that the burden of spreading the loss among insurers is one that is appropriately borne by insurers, not insureds. Reprinted courtesy of Alan H. Packer, Newmeyer Dillion and James S. Hultz, Newmeyer Dillion Mr. Packer may be contacted at alan.packer@ndlf.com Mr. Hultz may be contacted at james.hultz@ndlf.com Read the court decision
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