Seattle Washington Building Expert Directory

South Carolina Supreme Court Requires Transparency by Rejecting an Insurer’s “Cut-and-Paste” Reservation of Rights

February 16, 2017 — Theresa A. Guertin & H. Scott Williams - Saxe Doernberger & Vita, P.C.
In a decision rendered on January 11, 2017, the Supreme Court of South Carolina reminded policyholders that they are entitled to an explanation of any and all grounds upon which their insurer may be contesting coverage in a reservation of rights letter. Specifically, in Harleysville Group Insurance v. Heritage Communities, Inc. et al., 1 the court found that an insurer’s reservation of rights, which included a verbatim recitation of numerous policy provisions that the court identified as the “cut-and-paste” method, was insufficient to reserve its rights to contest coverage. In 2003, Heritage Communities, Inc. (“Heritage”), a parent company of several corporate entities engaged in developing and constructing condominium complexes from 1997 to 2000, was sued by multiple property owners’ associations. The lawsuits sought actual and punitive damages against Heritage as a result of alleged construction defects, including building code violations, structural deficiencies, and significant water intrusion. During the period of construction, Heritage was insured by Harleysville Group Insurance (“Harleysville”) under several primary and excess general liability insurance policies. Reprinted courtesy of Theresa A. Guertin, Saxe Doernberger & Vita, P.C. and H. Scott Williams, Saxe Doernberger & Vita, P.C. Ms. Guertin may be contacted at tag@sdvlaw.com Mr. Williams may be contacted at hsw@sdvlaw.com Read the court decision
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The Risk of A Fixed Price Contract Is The Market

August 03, 2022 — David Adelstein - Florida Construction Legal Updates
When performing work on a fixed price or unit, there is risk that is being assumed on your end. One risk is the market. You are ultimately banking on the fact that the market is not going to make your fixed prices unprofitable. That’s not an unforeseeable occurrence because the market shifts and that shift can have a negative ripple effect. In a recent case out of the Federal Circuit, U.S. Aeroteam, Inc. v. U.S., 2022 WL 243176 (Fed.Cir. 2022), this market risk played a role in a fixed price contract. Here, a contractor was hired by the federal government to produce ground support trailers. A key component of these trailers was a running gear. The contractor relied on a vendor for these running gears. Due to financial difficulties, the vendor had to raise its unit price for the running gears. Based on the increased price, the contractor elected to manufacture the running gears itself. The contractor asked the government if this was ok and the government approved the request. Once the contractor started manufacturing these running gears, it had an “awe” moment – the manufacturing costs were higher than anticipated. The contractor submitted a request for equitable adjustment which the government denied. The Contractor than sued the government raising three arguments to support its entitlement to additional costs: (1) constructive change; (2) cardinal change; and (3) commercial impracticability. The contractor lost on all arguments. It probably should have lost on all arguments. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Embattled SNC-Lavalin Files Ethics Appeal, Realigns Structure

May 01, 2019 — Debra K. Rubin - Engineering News-Record
Even as Montreal design-build giant SNC-Lavalin Group Inc. faces corporate bribery charges on old Libya contracts, the firm now seeks, in an April 4 federal court appeal, to reverse Canadian prosecutors’ 2018 rejection of a negotiated settlement. Read the court decision
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Reprinted courtesy of Debra K. Rubin, ENR
Ms. Rubin may be contacted at rubind@enr.com

Construction Litigation Roundup: “Indeed, You Just Design ‘Em”

April 29, 2024 — Daniel Lund III - Lexology
Seeking to be extracted from personal injury litigation initiated by a laborer on a project in New Orleans, an architect sued for negligence filed a motion for summary judgment. The plaintiff had “testified in his deposition that after demolishing most of one of the side walls of the vault and a smaller section of the front wall, he was instructed to stand on top of the vault's concrete ceiling in order to demolish it with a hydraulic jackhammer.” One court noted that: “Shortly after beginning that task, the entire vault structure collapsed.” Claims against the architect included assertions of “failure to monitor and supervise the execution of the plans to ensure safety at the jobsite.” The architect urged in support of its MSJ that it did not owe a duty to oversee, supervise, or maintain the construction site, or have any responsibility for the plaintiff’s safety. Summary judgment was granted to the architect by the trial court, and an appeal ensued, whereupon the appellate court reversed. That intermediate court found that potential intervening knowledge of the architect of a potentially unsafe demolition practice created an issue of material fact. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

Contractors Board May Discipline Over Workers’ Comp Reporting

November 06, 2013 — CDJ STAFF
California recently passed AB 1794, which authorized the Employment Development Department to share information it received on new hires with other agencies. The bill also allows the Contractors State License Board to audit members based on this information to determine if contractors are engaging in workers’ compensation fraud. Writing on the Cumming & White construction litigation blog, Iman Reza notes that “the new law is intended to deter contractors from cutting corners in underreporting employees.” The CSLB will be able to discipline contractors who seek to gain an illegitimate competitive advantage by circumventing the law. Read the court decision
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New Law Raises Standard for Defense Experts as to Medical Causation

September 05, 2023 — Haight Brown & Bonesteel LLP
On July 17, 2023, California Governor Gavin Newsom signed Senate Bill (SB) No. 652, adding Section 801.1 to the California Evidence Code. This section provides additional requirements for expert opinions relating to medical causation. In particular, it allows a party not bearing the burden of proof to offer a contrary expert in response to an expert proffered by a party bearing the burden of proof as to medical causation who is required to opine that causation exists to a reasonable medical probability. The contrary expert may only be proffered, however, if he or she is able to opine that an alternative medical causation is one that exists to a reasonable medical probability. Section 801.1, however, does not preclude an expert witness from testifying that a specific matter cannot meet a reasonable degree of probability in the applicable field. With respect to medical causation, a “reasonable degree of probability” means that the expert is testifying that a particular event or source was more likely than not the cause of a person’s injuries. Read the court decision
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Reprinted courtesy of Haight Brown & Bonesteel LLP

Engineer at Flint Negligence Trial Details Government Water Errors

April 04, 2022 — Richard Korman & Jeff Yoders - Engineering News-Record
Warren Green, vice president and chief engineer of Lockwood, Andrews & Newnam, an engineering consultant to Flint, Mich. during its disastrous water crisis of 2014 and 2015, testified in federal court last week that city officials forged ahead to switch its source of drinking water without adequate water softening or testing after one municipal manager assured him that the more extensive testing would be done. Reprinted courtesy of Richard Korman, Engineering News-Record and Jeff Yoders, Engineering News-Record Mr. Korman may be contacted at kormanr@enr.com Mr. Yoders may be contacted at yodersj@enr.com Read the full story... Read the court decision
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Legislation Update: S-865 Public-Private Partnerships in New Jersey Passed by Both Houses-Awaiting Governor’s Signature

July 02, 2018 — Steven M. Charney & Charles F. Kenny - Peckar & Abramson, P.C.
New Jersey is finally close to being among the many states with broad authority to develop or improve public projects through a Public-Private Partnership (P3) delivery method. This contracting model has stimulated growth and improvements in other States and led to the delivery of projects that may not otherwise have happened. Senate Bill 865 (“S-865”), after undergoing some last-minute amendments in a frenzied legislature dealing with budget and other critical issues, has passed in both houses of the Legislature and is waiting for Governor Murphy’s signature, which is expected shortly. The law will be effective 180 days from formal enactment. The administrative framework is now in place to make Public-Private Partnerships a reality in New Jersey. Reprinted courtesy of Steven M. Charney, Peckar & Abramson, P.C. and Charles F. Kenny, Peckar & Abramson, P.C. Mr. Charney may be contacted at scharney@pecklaw.com Mr. Kenny may be contacted at ckenny@pecklaw.com Read the court decision
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