Cambridge Massachusetts Building Expert Directory

Insured Cannot Sue to Challenge Binding Appraisal Decision

December 16, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The court dismissed the insured condominium association's challenge to an appraisal award. The Courtyards at Prairie Fields Condominium Association v. West Band Mut. Ins. Co., 2023 U.S. Dist. LEXIS 169458 (N. D. Ill. Sept. 22, 2023). In July 2020, the insured filed a claim with West Bend for damage to the property's roof and other building components as a result of wind and hail. West Bend inspected and estimated the replacement cost for the damage was $60,989.54. This amount was paid to the insured minus the $10,000 deductible. The insured believed the damage was so severe that the roofs need to be replaced, which the insured estimated would cost $1,389,600. The insured demanded an appraisal. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Restaurant Wants SCOTUS to Dust Off Eleventh Circuit’s “Physical Loss” Ruling

February 01, 2021 — Michael S. Levine & Geoffrey B. Fehling - Hunton Insurance Recovery Blog
A South Florida restaurant has asked the US Supreme Court to overturn a federal district court’s ruling that the restaurant is not entitled to coverage under an “all risk” commercial property insurance policy for lost income and extra expenses resulting from nearby road construction. In the underlying coverage action, the policyholder, Mama Jo’s (operating as Berries in the Grove), sought coverage under its all-risk policy for business income losses and expenses caused by construction dust and debris that migrated into the restaurant. Should the Supreme Court grant certiorari, the case will be closely watched by insurers and policyholders alike as an indicator of the scope of coverage available under all-risk policies and whether the principles pertinent to construction dust and debris (at issue in Mama Jo’s claim) have any application to the thousands of pending claims for COVID-19-related business interruption losses pending in the state and federal court systems. As previously discussed on this blog, the Eleventh Circuit’s decision deviates from Florida precedent on the issue of “direct physical loss” and even its own understanding of that term as described in the August 18, 2020 decision now at issue before the Supreme Court. Mama Jo’s points to this in its petition along with several other errors arguing, for example, that the appellate court’s ruling renders entire areas of coverage nonexistent by requiring “tangible destruction” of property under all-risk policies that expressly afford coverage for types of clean-up costs required to remove debris from covered property. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Geoffrey B. Fehling, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Fehling may be contacted at gfehling@HuntonAK.com Read the court decision
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UPDATE: Trade Secrets Pact Allows Resumed Work on $2.6B Ga. Battery Plant

April 19, 2021 — Mary B. Powers - Engineering News-Record
Construction on a $2.6-billion battery manufacturing plant near Atlanta can continue under an agreement reached April 11 between two rival South Korean auto battery makers—including SK Innovation, which is owner of the half-completed project. Reprinted courtesy of Mary B. Powers, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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Balfour Taps Qinetiq’s Quinn as new CEO to Revamp Builder

October 15, 2014 — Benjamin Katz and Simon Thiel – Bloomberg
Balfour Beatty Plc (BBY) named Leo Quinn as new chief executive officer to revamp Britain’s biggest builder which has suffered from mismanaged projects and a lack of demand. Quinn will start on Jan. 1 after five years as CEO of defense specialist Qinetiq Group Plc, Balfour Beatty said today. The executive began his career at Balfour Beatty in 1979 as a civil engineer and later worked as president of Honeywell Building Controls and CEO of banknote printer De La Rue Plc. The stock gained 5.3 percent in London trading today. Balfour Beatty, which rejected a merger proposal from British rival Carillion Plc in August, has struggled since the global recession slashed orders and prices. Its stock had fallen 48 percent this year before today, reducing the company’s value to 1 billion pounds ($1.6 billion). In September, Balfour Beatty cut its U.K. construction-services unit’s profit forecast and said Chairman Steve Marshall plans to leave. Mr. Thiel may be contacted at sthiel1@bloomberg.net; Mr. Katz may be contacted at bkatz38@bloomberg.net Read the court decision
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Reprinted courtesy of Benjamin Katz and Simon Thiel, Bloomberg

Lake Texoma, Texas Condo Case may go to Trial

February 05, 2014 — Beverley BevenFlorez-CDJ STAFF
A lawsuit that’s created a “four-year legal battle” over alleged construction defects at the Diamond Pointe Condominium Tower in Lake Texoma, Texas may soon be going to trial, according to KTEN News. A lawyer representing the Diamond Pointe condominiums stated that “he has 15 witnesses lined up for a two-week trial.” KTEN News reported that according to court papers, “the Association alleges issues with the elevator, doors not opening properly, cracks, water leaks, and septic containment system leaks over the past decade.” Furthermore, the Association president Dan Baucum said to KTEN, “There were some foundation repairs that we needed to do and there are some problems with the building. It was not built to the specifications, at least that's what we're alleging, and that has allowed some water seepage in certain areas.” Read the court decision
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Home-Building Climate Warms in U.S. as Weather Funk Lifts

May 20, 2015 — Sho Chandra and Steve Matthews – Bloomberg
The surge in April housing starts sends a clear signal that bad weather was the root cause of weak readings in the first quarter. The question now is whether the rebound is strong enough to lift the world’s largest economy. Builders broke ground on 1.14 million homes at an annualized rate last month, the most since November 2007 and up 20.2 percent from March, figures from the Commerce Department showed Tuesday in Washington. It was the single-biggest monthly surge since 1991, with both the Northeast and Midwest taking part, clearly showing milder temperatures had a hand. The rebound in home building is shaping up to be large enough to make a meaningful contribution to economic growth this quarter. Nonetheless, because residential construction accounts for less than 4 percent of the economy, it would take big gains to make up for what’s likely to be sustained weakness in manufacturing caused by slowing exports and cuts in business investment by the energy industry. Reprinted courtesy of Sho Chandra, Bloomberg and Steve Matthews, Bloomberg Read the court decision
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Do We Need Blockchain in Construction?

June 22, 2020 — Cristina Savian - AEC Business
Blockchain technology claimed to have the potential to disrupt many aspects of how companies do business. And like other emerging technologies, I have been exploring its uses, benefits and assessing its potential opportunities in the construction industry. If like me, you have been wondering what it is and if its applications are limited to financial services and cryptocurrencies; you will be pleasantly surprised to discover that it has a lot more applications with exciting opportunities for our sector too. Blockchain could have a significant impact on our industry. In writing this article I have discovered that the Australian government is full steam ahead, that many organisations are currently building their own blockchain networks and that it is something that businesses right across the built environment should be preparing for now. But more on that soon, first we need to define what blockchain is. Read the court decision
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Reprinted courtesy of Cristina Savian, AEC Business

Force Majeure Under the Coronavirus (COVID-19) Pandemic

March 08, 2021 — Lindsay T. Watkins - Ahlers Cressman & Sleight PLLC
As COVID-19 disrupts work and life as we know it, the question many contractors have is what protections are available against the inevitable project impacts and delays? Generally, construction contracts require a contractor to timely perform work until project completion or potentially face damages (liquidated or actual) and possible termination. When events occur, however, that are beyond our control (such as a national pandemic), it is important to review and understand what contract provisions or avenues are available for potential relief. 1. Review Your Contract For A Force Majeure Provision. A “force majeure” contract provision is commonly included in construction contracts, service agreements, purchase orders, etc. It typically covers events or conditions that can be neither anticipated nor controlled. These provisions, however, will vary greatly from contract to contract and may not include the language “force majeure” but rather may be included in general delay or impact clauses. For example, some common provisions include:

Washington State Department of Transportation Clause (2018 Standard Specifications for Road, Bridge and Municipal Construction): The Contractor shall rebuild, repair, restore, and make good all damages to any portion of the permanent or temporary Work occurring before the Physical Completion Date and shall bear all the expense to do so, except damage to the permanent Work caused by: (a) acts of God, such as earthquake, floods, or other cataclysmic phenomenon of nature, or (b) acts of the public enemy or of governmental authorities; or (c) slides in cases where Section 2-03.3(11) is applicable; Provided, however, that these exceptions shall not apply should damages result from the Contractor’s failure to take reasonable precautions or to exercise sound engineering and construction practices in conducting the Work.

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Reprinted courtesy of Lindsay T. Watkins, Ahlers Cressman & Sleight PLLC
Ms. Watkins may be contacted at Lindsay.Watkins@acslawyers.com

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