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Alabama Supreme Court Finds No Coverage for Construction Defect to Contractor's own Product

October 21, 2013 — Tred Eyerly — Insurance Law Hawaii
The Alabama Supreme Court followed prior precedent and found that the contractor's faulty workmanship causing damage to his own product did not arise from an occurrence. Owners Ins. Co. v. Jim Carr Homebuilder, LLC, 2013 Ala. LEXIS 122 (Ala. Sept. 20, 2013). The plaintiffs contracted with Carr to construct a new home. After completion of the home and taking occupancy, the plaintiffs noted several problems with the house related to water leaking through the roof, walls and floors, resulting in water damage to various areas of the house. The plaintiffs sued Carr and the case eventually went to arbitration. The arbitrator entered an award in favor of plaintiffs for $600,000. Owners filed an action against Carr for a declaratory judgment seeking to establish there was no coverage because the property damage did not arise from an occurrence. The trial court granted summary judgment to Carr. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

Fraud and Construction Contracts- Like Oil and Water?

December 31, 2014 — Christopher G. Hill – Construction Law Musings
We have discussed the interaction of fraud and breach of contract actions on occasion here at Construction Law Musings. In most cases the two do not mix. Between the economic loss rule and the general desire of Virginia courts to keep contract actions and tort actions separate, most of the time it is impossible to make a fraud action relating to a contract stick in a construction context. The Virginia Supreme Court recently confirmed this fraud/contract distinction. As discussed in the Virginia Real Estate Land Use & Construction Law blog (Thanks Heidi!), Station No. 2, LLC v. Lynch, et. al. strongly re-states the Virginia courts’ strong reluctance to allow a breach of contract turn into a claim for fraud. Without re-iterating the great discussion of the facts of the case found in the post by Heidi Meizner, suffice it to say that certain contractual promises between and among the parties were not fulfilled much to Station 2, LLC’s detriment. 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

What I Learned at My First NAWIC National Conference

September 25, 2023 — Ivette Kincaid - Kahana Feld
On August 9-12, 2023, I attend my first National Association of Women in Construction (“NAWIC”) National Conference in beautiful Portland, Oregon. What is NAWIC, you ask? NAWIC originated as Women in Construction of Fort Worth, Texas and was founded in 1953 by sixteen women in the construction industry. Knowing that back then women only represented a fraction of the construction industry, the founders organized to create a support network for women to work in a male dominated field. The organization has grown by leaps and bounds and now consists of 115 chapters throughout the United States. NAWIC’s core purpose is to “Strengthen and amplify the success of women in the construction industry.” I joined this organization in December of 2022 at the suggestion of my law partner Jason Feld. Before Jason’s suggestion I had never heard of NAWIC. I joined the Orange County chapter and attended my first meeting in December and did not look back. In NAWIC I found a group of women kindred spirits in whom a found a commonality of interests, experiences, and goals. This is an organization that provides support, encouragement, education, and advocacy for women in all aspects of the construction industry. It also provides an outlet to share ideas, network and build relationships. I am happy to report that on September 12, 2023, I will be installed as one of the directors of the Orange County Chapter. Read the court decision
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Reprinted courtesy of Ivette Kincaid, Kahana Feld
Ms. Kincaid may be contacted at ikincaid@kahanafeld.com

Denver Condo Development Increasing, with Caution

January 21, 2015 — Beverley BevenFlorez-CDJ STAFF
According to Aldo Svaldi of The Denver Post, condo development has increased in the Denver metro area, though builders stated they are carefully documenting each step of construction as well as vetting contractors and materials. "We are being ultra-careful about everything," Roy Kline, a managing director at Western Development Group, told the Denver Post. Western Development is behind the 250 Columbine development. Svaldi reported that Western Development Group has been “photographing or filming every step of construction.” Brian Levitt and Trevor Hines of NAVA Real Estate Development “have spent the past year crafting a detailed three-page, 18-point action plan to deal with any contingency they could think of arising from the state's constructions-defects law.” Levitt told Svaldi that he “estimates all the safeguards being put in place will add 5 percent to 10 percent to the costs of the units at NAVA Sloan Lake, whose final price points are being determined.” Read the court decision
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Appeals Court Explains Punitive Damages Awards For Extreme Reprehensibility Or Unusually Small, Hard-To-Detect Or Hard-To-Measure Compensatory Damages

November 10, 2016 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Nickerson v. Stonebridge Life Ins. Co. (No. B234271A, filed 11/3/16), (“Nickerson II”) a California appeals court outlined the requirements for complying with the single-digit multiplier annunciated as a Constitutional limitation on punitive damages by the United States Supreme Court in State Farm Mut. Automobile Ins. Co. v. Campbell (2003) 538 U.S. 408, for awards of punitive damages against insurers in cases of extreme reprehensibility or unusually small, hard-to-detect or hard-to-measure compensatory damages. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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Claimants’ Demand for Superfluous Wording In Release Does Not Excuse Insurer’s Failure to Accept Policy Limit Offer Within Time Specified

September 15, 2016 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Barickman v. Mercury Casualty Co. (No. B260833, filed 7/25/16, ord. pub. 8/15/16) a California appeals court affirmed a $3 million bad faith award against Mercury Casualty Co. based upon its failure to accept a policy limit demand within the time provided, finding that wording inserted by the claimants’ counsel into the release did not affect the insured’s rights such that the refusal to agree to the wording was unreasonable and in bad faith, exposing the insurer to liability for the insured’s stipulated judgment. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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Dump Site Provider Has Valid Little Miller Act Claim

October 19, 2020 — Christopher G. Hill - Construction Law Musings
You may have thought that a Virginia “Little Miller Act” bond claim, like a mechanic’s lien, could only be brought by those that provide materials and labor incorporated into the construction project. If you did, you aren’t alone. In fact, Safeco Insurance Co. of America, a surety, made exactly the above argument in Yard Works LLC v. GroundDown Constructors LLC. In that case, a debris hauling company failed to pay Yard Works, the company that provided the dumping site for the debris. Yard Works sued pursuant to the Little Miller Act to get paid. In response, the surety sought to have the claim against the payment bond dismissed and argued that because Yard Works did not actually improve the property or provide improvements and that Yard Works only passively provided a dump site, Yard Works could not claim under the payment bond. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Insurer's Judgment on the Pleadings Based Upon Expected Injury Exclusion Reversed

October 30, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The appellate court reversed the trial court's granting of a judgment on the pleadings based upon the expected injury exclusion in a homeowner's policy. Allstate Indemn. Co. v. Contreras, 2018 Ill. App. LEXIS 170964 (Ill. Ct. App. July 20, 2018). Alejandra Contreras owned Jasmine's Day Care. Her husband, Adan Contreras, was not an employee of the Day Care. Alejandra and Adan had a homeowner's policy which provided day care liability coverage through an endorsement. 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

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