CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Consequential Damages Flowing from Construction Defect Not Covered Under Florida Law

November 17, 2016 — Tred R. Eyerly -Insurance Law Hawaii
Interpreting Florida law, the United States District Court found there was no duty to defend a contractor against construction defect claims. Evanston Ins. Co. v. Dimmucci Dev. Corp. of Ponce Inlet, Inc., 2016 U.S. Dist. LEXIS 123678 (M.D. Fla. Sept 13, 2016). The insured built condominiums and townhomes. It held three successive CGL policies issued by Evanston. The "your work" exclusion in the policies barred coverage as follows:

"Property Damage" to "your work" arising out of it or any part of it and included in the "products-completed operations hazard." This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor.

The insured constructed the Towers Grande Condominium. In 2012 the Towers Grande Condominium Association, Inc. initiated the underlying action alleging that the insured's failure to construct the Towers Grande properly resulted in building defects and deficiencies. Damage to the roof, generator exhaust pipe, and HVAC system was alleged. Further, water intrusion and decking/structural issues were claimed. In addition to the construction defects, the Association also alleged that the insured's faulty work led to additional damages. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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DOI Aims to Modernize its “Inefficient and Inflexible” Type A Natural Resource Damages Assessment Regulations

March 25, 2024 — Amanda G. Halter, Jillian Marullo & Ashleigh Myers - Gravel2Gavel Construction & Real Estate Law Blog
The U.S. Department of the Interior (DOI) published a proposed rule aimed at modernizing and streamlining the “Type A” Natural Resource Damage Assessment (NRDA) regulations under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and the Clean Water Act (CWA). (The comment deadline was later extended.) The revisions, first previewed in a January 2023 Advanced Notice of Proposed Rulemaking (ANPR), are intended to fulfill “the original statutory purpose of providing a streamlined and simplified assessment process” with the overarching goal of facilitating settlements and expediting restoration efforts following injury resulting from pollution in a broader range of cases. The NRDA regulations provide two paths to assessing natural resource damages (NRD): (1) the more complex, site-specific Type B procedures for detailed NRDAs and (2) what is intended to be the standard, simplified Type A assessment procedures requiring minimal field observation. Particularly, the Type A process is reserved for two specific aquatic environments (coastal and marine areas or Great Lakes environments) when a relatively minor release of a single hazardous substance occurs, resulting in a smaller scale and scope of natural resource injury, and the rebuttal presumption for the Type A procedure is limited to damages of $100,000 or less under the current version of the rule. Reprinted courtesy of Amanda G. Halter, Pillsbury, Jillian Marullo, Pillsbury and Ashleigh Myers, Pillsbury Ms. Halter may be contacted at amanda.halter@pillsburylaw.com Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com Read the court decision
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Reprinted courtesy of

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Another Law Will Increase Construction Costs in New York

May 29, 2023 — Bill Wilson - Construction Law Zone
New York recently enacted legislation known as Carlos’ Law, which increases penalties for corporate liability for the death of, or serious injury to, an employee. The bill, S.621B / A.4947B, was named after Carlos Moncayo, a construction worker killed in a trench collapse on a New York City construction project. Moncayo’s employer repeatedly flouted safety rules and ignored warnings of dangerous conditions on its construction site before failing to properly support the trench that collapsed and killed Moncayo. Moncayo’s employer was convicted for his death, but the penalty was light. The company was sentenced to pay only $10,000, the maximum penalty at the time for any company convicted of a felony in New York State. The legislature responded with Carlos’ Law, which increases accountability for “employers,” and expands the scope of “employees” covered. The corporate criminal law, NY Penal § 20.20(2)(c)(iv), imposes liability on an employer when “the conduct constituting the offense is engaged in by an agent of the corporation while acting within the scope of his employment and on behalf of the corporation, and the offense is . . . in relation to a crime involving the death or serious physical injury of an employee where the corporation acted negligently, recklessly, intentionally, or knowingly.” An “agent” of an employer is any “director, officer or employee of a corporation, or any other person who is authorized to act on behalf of the corporation.” § 20.20(a). An “employee” now includes any person providing labor or services for remuneration for a private entity or business within New York State without regard to an individual’s immigration status, and includes part-time workers, independent contractors, apprentices, day laborers and other workers. § 10.00 (22). The penalties for criminal corporate liability for the death or serious injury of an employee now include maximums of $500,000 when centered on a felony, and $300,000 when centered on a misdemeanor. § 80.10(1)(a) and (b). Read the court decision
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Reprinted courtesy of Bill Wilson, Robinson & Cole LLP
Mr. Wilson may be contacted at wwilson@rc.com

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VOSH Jumps Into the Employee Misclassification Pool

July 30, 2015 — Christopher G. Hill – Construction Law Musings
The proper classification of workers by construction companies has been on the radar of the Department of Labor for both the US and Virginia governments for quite a while. While most of the misclassification is innocent and not done to create issues, there have been enough instances of purposeful misclassification of certain workers as independent contractors (thus avoiding workers comp and other payroll expenses) that innocent contractors have born the brunt of these issues through increased payroll costs over those that misclassify (in the form of necessarily higher bids, higher overhead, etc.). As an additional deterrent to improper classification of workers, the Virginia Department of Labor and Industry has issued guidelines for what will occur in Virginia Department of Safety and Health (VOSH) cases. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Forget Backyard Pools, Build a Swimming Pond Instead

June 17, 2015 — Mark Ellwood – Bloomberg
No self-respecting Californian can let the summer pass without a dip in the backyard—pools are as much a part of culture as the 49ers, Schwarzenegger, and dire earthquake warnings. Now, though, there’s something unseemly about pooling so much water for the occasional swim—enough, in fact, to generate its own hashstag, #droughtshaming. There’s one surefire way to mitigate opprobrium: Build a natural swimming pond that’s specifically designed to minimize environmental impacts (or the cash premiums required to keep it up). Typical is one example in Sonoma County, where the the water seems to leak down from the rock perched on the ridge. Like a natural spring, it trickles and tumbles, pooling into water features as it falls; one feature is full of aquatic plants and flowers, while another is a swimming hole—clear, cool and inviting. It was built by Dave Whitney, chief executive officer of Eco Solutions, a pioneer in engineering such eco swimming ponds. These dipping pools use natural filtration instead of chlorine pellets to keep the water clean. Read the court decision
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Reprinted courtesy of Mark Ellwood, Bloomberg

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#7 CDJ Topic: Truck Ins. Exchange v. O'Mailia

December 30, 2015 — Beverley BevenFlorez-CDJ STAFF
According to attorney Tred R. Eyerly on a post on his Insurance Law Hawaii blog, “The Montana Supreme Court determined there was no coverage for the insured due to a lack of property damage during the policy period.” Eyerly concluded, “Even if exposure to excessively high temperatures created a harmful condition during the policy period, the existence of that condition did not result in property damage to the water heater occurring during the policy period, and thus did not constitute an ‘occurrence’ as defined by the policy.” Read the full story... Read the court decision
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Study Finds San Francisco Bay is Sinking Faster than Expected

July 15, 2019 — Alan Rider - Engineering News-Record
All coastal cities in the U.S. face some potential threat from sea-level rise, but areas around San Francisco Bay may be more vulnerable than previously thought according to a recent study by Arizona State University’s Manoochehr Shirzaei and UC Berkley’s Roland Bürgmann published in the peer-reviewed journal Science Advances. Read the court decision
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Reprinted courtesy of Alan Rider, ENR
ENR may be contacted at ENR.com@bnpmedia.com

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Prevailing Payment Bond Surety Entitled to Statutory Attorneys’ Fees Even if Defended by Principal

January 09, 2023 — Garret Murai - California Construction Law Blog
For contractors involved in California public works projects the scenario is not uncommon: The general contractor awarded the public works project is required to obtain a payment bond for the benefit of subcontractors and suppliers and the payment bond surety issuing the payment bond requires the general contractor to defend and indemnify the surety from and against any claims against the payment bond. In Cell-Crete Corporation v. Federal Insurance Company, 82 Cal.App.5th 1090 (2022), the 4th District Court of Appeal examined whether a payment bond surety, who prevails in a claim against the payment bond, is entitled to statutory attorneys’ fees when the party actually incurring the attorneys’ fees was the general contractor, pursuant to its defense and indemnity obligations, as opposed to the surety itself. The Cell-Crete Case General contractor Granite Construction Company was awarded a public works contract issued by the City of Thermal known as the Airport Boulevard at Grapefruit Boulevard and Union Pacific Railroad Grade Separation Project. We’ll just call it the “Project.” Subcontractor Cell-Crete Corporation entered into a subcontract with Granite for lightweight concrete and related work. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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