Design Firm Settles over Construction Defect Claim
July 31, 2013 —
CDJ STAFFA Pennsylvania township has announced that it has reached a settlement with the architectural firm that designed its administration building. Cee Jay Frederick Associates will be paying than $1.05 million to settle claims of defects in the design of the building.
West Whiteland’s administration building was completed in July 2007. The first leaks were noticed in November and December 2008. In response, the township stopped payments to the contractor, Magnum, Inc. Magnum sued, claiming that their work was not to blame for the leaks. Magnum joined the township in suing the design firm.
Although Cee Jay Frederick Associates will be paying the township to settle the claim, West Whiteland will be paying $75,000 of that back to the firm to settle outstanding bills that had been withheld during litigation.
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Construction Slow to Begin in Superstorm Sandy Cases
March 12, 2014 —
Beverley BevenFlorez-CDJ STAFFU.S. Senator Robert Mendendez of New Jersey, “has called on government officials to speed up the way home rebuilding aid is reaching thousands of New Jersey victims of Superstorm Sandy,” according to CBS New York. Mendendez stated that out of the 12,000 people who have received “preliminary approval for aid” under New Jersey’s “Reconstruction, Elevation and Mitigation program,” only “2,700 have been told they can begin construction.” The storm occurred more than sixteen months ago.
“Part of the problem,” Mendendez told CBS New York, “has been that state officials have placed federally required environmental and historic preservation reviews at the end of the lengthy aid application process. That delays rebuilding because federal rules allow reconstruction work to begin once those reviews are completed.”
CBS New York reported that the state announced that those “using their own contractors to rebuild homes can request 50 percent of their grant in advance under the change, which went into effect Monday.”
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Top 10 Insurance Cases of 2020
January 11, 2021 —
Grace V. Hebbel, Andrew G. Heckler & Jeffrey J. Vita - Saxe Doernberger & Vita P.C.COVID-19 business interruption coverage litigation may have stolen the show in 2020, but those cases should not eclipse other important insurance coverage cases decided throughout this past year. As the courts nationwide struggled with the insurance coverage implications of COVID-19 related business loss, other significant coverage decisions were overshadowed. Read on to learn about how computer glitches, biometric privacy, and a falling wheelbarrow have all played a role in\ shaping some of the most interesting and influential insurance coverage decisions of 2020, as well as get a sneak peek at the key coverage decisions looming in 2021. Enjoy!
1. Nash Street, LLC v. Main Street America Assurance Company,
No. 20389, 2020 WL 5415325 (Conn. 2020)
Do exclusions k(5) and k(6) absolve an insurer of its duty to defend its insured for allegations of faulty workmanship?
Reprinted courtesy of
Grace V. Hebbel, Saxe Doernberger & Vita P.C.,
Andrew G. Heckler, Saxe Doernberger & Vita P.C. and
Jeffrey J. Vita, Saxe Doernberger & Vita P.C.
Ms. Hebbel may be contacted at GHebbel@sdvlaw.com
Mr. Heckler may be contacted at AHeckler@sdvlaw.com
Mr. Vita may be contacted at JVita@sdvlaw.com
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Crossrail Audit Blames Busted Budget and Schedule on Mismanagement
August 13, 2019 —
Peter Reina - Engineering News-RecordIn a new report on London’s Crossrail, the U.K. National Audit Office says the beleaguered transportation project is around two years late and nearly 20% over budget because of poor management. The NAO, charged by Parliament with monitoring public spending, pointed to ill-conceived “aspirational” plans that proved to be unfit for the technologically challenging and vast program when things went wrong.
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Peter Reina, ENR
Fungi, Wet Rot, Dry Rot and "Virus": One of These Things is Not Like the Other
November 02, 2020 —
Hugh D. Hughes - Saxe Doernberger & VitaThe Hartford’s so-called virus exclusion in its commercial property forms is getting a workout, and policyholders now have an argument that may help their cases move past the pleadings stage. A U.S. District Court in Florida has deemed the exclusion ambiguous and denied an insurer’s motion to dismiss.1 The exclusion applies to “presence, growth, proliferation, spread, or any activity of ’fungi’, wet rot, dry rot, bacteria or virus.”2 The Court held that the parties did not necessarily intend to exclude a pandemic.
In Urogynecology, the plaintiff sought coverage for the loss of the usefulness and functionality of its business location due to the Florida Governor’s shutdown order. The policy contained a 'fungi', wet rot, dry rot, bacteria, or virus” exclusion.3 The carrier moved to dismiss, and the plaintiff argued that the exclusion only applied if COVID-19 was present on-site, which was not the case.
The Court addressed none of the issues regarding direct physical loss and instead decided the motion on the fungi exclusion. The Court held the exclusion ambiguous because the exclusion of virus “does not logically align with the grouping of the virus exclusion with other pollutants such that the Policy necessarily anticipated and intended to deny coverage for these kinds of business losses.”5 In addition, the Court stated that pollution case law was not on point because “none of the cases dealt with the unique circumstances of the effect COVID-19 has had on our society – a distinction this Court considers significant.”
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Hugh D. Hughes, Saxe Doernberger & VitaMr. Hughes may be contacted at
hdh@sdvlaw.com
Court of Appeals Affirms Dismissal of Owner’s Claims Based on Contractual One-Year Claims Limitations Period
October 04, 2021 —
Cassidy Ingram - Ahlers Cressman & SleightIn a recent unpublished decision – Tadych v. Noble Ridge Construction, Inc.– the Washington State Court of Appeals, Division One, held that a one-year contractual claim limitations clause was valid and enforceable. The Tadych decision is important because it reiterates the strict approach courts will take to a claim limitations clause less than the statutory six years for breach of contract claims prescribed by RCW 4.16.040(1). In other words, when the parties agree to shorten the limitations period, the agreement will be enforced barring any procedural or substantive unconscionability.
In Tadych, plaintiff owners (the Tadychs) contracted with defendant contractor (Noble Ridge Construction, Inc., or NRC) for the construction of a custom home in 2012. The contract provided a one-year claim limitations clause in which claims could be raised, and that all claims not raised in the one-year period would be waived. In December 2013, as the project neared completion, the Tadychs met with NRC to identify any outstanding project issues. The Tadychs noted several, including rainwater pools at the landing at the bottom of the stairs and several nicks and cracks on the stucco exterior walls.
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Cassidy Ingram, Ahlers Cressman & SleightMs. Ingram may be contacted at
cassidy.ingram@acslawyers.com
Ensuing Losses From Faulty Workmanship Must be Covered
May 10, 2012 —
Tred R. Eyerly - Insurance Law HawaiiCoverage for damages resulting from faulty workmanship in the construction of an apartment complex was at issue in The Bartram, LLC v. Landmark Am. Ins. Co., 2012 U.S. Dist. LEXIS 44535 (N.D. Fla. March 30, 2012).
The owner of the apartments, Bartram, had primary coverage and three layers of excess coverage. Each contract excluded loss from faulty workmanship. The policies provided, however, "if loss or damage by a Covered Cause of Loss results, we will pay for that resulting loss or damage."
Bartram contended water intrusion occurred because of faulty workmanship, which caused damage to the buildings’ exterior and interior finishes, wood sheathing, framing, balcony systems, drywall ceilings and stucco walls. This damage was separate from the work needed to simply fix the faulty workmanship. Therefore, Bartram argued, the ensuing losses that resulted from the water intrusion was covered.
The insurer argued the ensuing loss exception was not applicable if the ensuing loss was directly related to the original excluded loss.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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Receiving a $0 Verdict and Still Being Deemed the Prevailing Party for Purposes of Attorney’s Fees
May 24, 2018 —
David Adelstein - Florida Construction Legal UpdatesLow and behold, a party can be the prevailing party for purposes of attorney’s fees even if that party is awarded $0. That’s right, even if the party is awarded a big fat zero, they can still be the prevailing party for purposes of being entitled to attorney’s fees. This is because a party is the prevailing party if they prevail on the significant issues in the case. A party can prevail on the significant issues even if that party is awarded $0. Whoa!
For example, in Coconut Key Homeowner’s Association, Inc. v. Gonzalez, 43 Fla.L.Weekly D1045a (Fla. 4th DCA 2018), a homeowner sued her homeowner’s association claiming the association breached its governing documents. There was a basis for fees under Florida’s homeowner’s association law (and there likely was a basis under the governing documents). At trial, the jury held that the association breached its governing documents, but awarded the homeowner nothing ($0). The trial court also issued injunctive relief in favor of the homeowner. The homeowner claimed she should be deemed the prevailing party for purposes of attorney’s fees; however, this was denied by the trial court based on the $0 verdict and no fees were awarded to the homeowner.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com