Eleventh Circuit Finds No “Property Damage” Where Defective Component Failed to Cause Damage to Other Non-Defective Components
October 11, 2021 —
Anthony L. Miscioscia & Margo Meta - White and WilliamsIn Florida, damage caused by faulty workmanship constitutes “property damage;” however, the cost of repairing or removing defective work does not. Amerisure Mutual Insurance Company v. Auchter Company, 673 F.3d 1294 (11th Cir. 2012) (Auchter). But what happens when the cost of repairing or removing defective work results in loss of use of the tangible property which is not physically injured?
The United States Court of Appeals for the Eleventh Circuit was recently faced with this question in Tricon Development of Brevard, Inc. v. Nautilus Insurance Company, No. 21-11199, 2021 U.S. App. LEXIS 27317 (11th Cir. Sep. 10, 2021). Tricon arose out of the construction of a condominium. Tricon was hired to serve as general contractor for the project and hired a subcontractor to fabricate and install metal railings. The railings installed by the subcontractor were defective and damaged, improperly installed, and failed to meet the project’s specifications. Tricon filed an insurance claim with Nautilus Insurance Company, the subcontractor’s commercial general liability insurer, for the cost to remove and replace the railings.[1]
Reprinted courtesy of
Anthony L. Miscioscia, White and Williams and
Margo Meta, White and Williams
Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com
Ms. Meta may be contacted at metam@whiteandwilliams.com
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Chambers USA 2021 Ranks White and Williams as a Leading Law Firm
June 07, 2021 —
White and Williams LLPWhite and Williams is once again recognized by Chambers USA as a leading law firm in Pennsylvania for achievements and client service in the areas of insurance law, real estate finance and banking and finance law. The firm has also been recognized for achievements and client service in banking and finance law in Philadelphia and the surrounding area. In addition, five lawyers received individual honors – two for their work in insurance, one for his work in real estate finance, another for her work in bankruptcy and restructuring and one for his work in commercial litigation.
White and Williams is acknowledged for our renowned practice offering exceptional representation to insurers and reinsurers across an impressive range of areas including coverage, bad faith litigation and excess liability. The firm is recognized for notable strength in transactional and regulatory matters, complemented by the team's adroit handling of complex alternative dispute resolution proceedings. Chambers USA also acknowledged the firm's broad trial capabilities, including handling data privacy, professional liability, toxic tort coverage claims, and experience in substantial claims arising from bodily injury and wrongful death suits. White and Williams' cross-disciplinary team is also highlighted, as one source commented that "all advice was reasoned and respectful. They worked well together and provided exceptional representation."
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White and Williams LLP
When Coronavirus Cases Spike at Construction Jobsites
July 27, 2020 —
Richard Korman, Scott Judy & Jeff Rubenstone - Engineering News-RecordWhen Covid-19 took hold in several US states in early spring, Choate Construction responded, as many contractors did, by quickly adopting federal workplace safety guidelines for disinfecting surfaces and maintaining social distancing. Enhanced by various state lockdown measures for businesses and the general public, the new safety system seemed to work with only a handful of workers on Choate’s projects testing positive.
Reprinted courtesy of Engineering News-Record reporters
Richard Korman,
Scott Judy and
Jeff Rubenstone
Mr. Korman may be contacted at kormanr@enr.com
Mr. Judy may be contacted at judys@enr.com
Mr. Rubenstone may be contacted at rubenstonej@enr.com
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New York's New Gateway: The Overhaul of John F. Kennedy International Airport
September 09, 2024 —
Aileen Cho - Engineering News-RecordOn the cusp of the 70th anniversary of the originally named New York Airport’s opening in Queens, N.Y., a blue-ribbon panel in 2017 released a report to the governor of New York: The facility, once popularly known as Idlewild Airport, needed a comprehensive master plan and a total transformation. In the seven years since, builders at John F. Kennedy International Airport have been anything but idle, and the speed at which that $19-billion transformation of the roads and terminals is occurring could be called wild.
Reprinted courtesy of
Aileen Cho, Engineering News-Record
Ms. Cho may be contacted at choa@enr.com
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Reconciling Prompt Payments and Withholding of Retention Payments
March 30, 2016 —
Eric J. Rollins, Esq. – Newmeyer & Dillion, LLPIt is common in California for the owners of a project to make monthly payments to a contractor for work as it is completed, but withhold a certain percentage as a guarantee of future satisfactory performance. Contractors almost always pass these withholdings on to their subcontractors. Unsurprisingly, disputes can arise regarding when the withheld retentions must be paid.
Civil Code section 8814, subdivision (a), states that a direct contractor must pay each subcontractor its share of a retention payment within ten days after receiving all or part of a retention payment. However, an exception exists -- a direct contractor may withhold from the retention paid to a subcontractor an amount not in excess of 150 percent of the estimated value of the disputed amount, whenever a “good faith dispute exists between the direct contractor and a subcontractor.” (See Cal. Civ. Code, § 8814, subd. (c).) The problem with the statute is that it offers no help in defining a “good faith dispute,” and the California courts have historically not provided much guidance either. Can a “good faith dispute” be any dispute between the contracting parties, e.g., a dispute regarding change orders, mismanagement, etc.? Or must the dispute relate specifically to the retention? Unfortunately for California litigants, the answer may depend on the appellate district in which the parties find themselves.
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Eric J. Rollins, Esq., Newmeyer & Dillion, LLPMr. Rollins may be contacted at
eric.rollins@ndlf.com
Insurance Policy Language Really Does Matter
August 19, 2015 —
Craig Martin – Construction Contractor AdvisorThe debate continues on whether a subcontractor’s faulty work constitutes property damage and an occurrence such that the insurer must cover the claim. The most recent court to weigh in on this issue is the New Jersey appellate court (one step down from the New Jersey Supreme Court) in Cypress Point Condominium Association, Inc. v. Adria Towers, LLC.
In this case, the condominium association sued the general contractor, who also acted as the developer, and subcontractors for faulty workmanship. The condominium association also sued the insurer for the general contractor, demanding payment of consequential damages caused by a subcontractor’s faulty work. The trial court granted summary judgment to the insurer, holding that the subcontractor’s faulty work was not property damage and thus not an occurrence under the Commercial General Liability (CGL) insurance policy, so no coverage.
The appellate court reversed the trial court’s decision, finding that the claims for consequential damages caused by faulty workmanship constituted property damage and an occurrence as defined in the policy. This was a shift from earlier opinions in New Jersey.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Commercial Real Estate Brokerages in an Uncertain Russian Market
March 28, 2022 —
Cait Horner & Adam J. Weaver - Gravel2Gavel Construction & Real Estate Law BlogSeveral commercial real estate firms have joined the growing list of companies temporarily suspending – or outright terminating – property and facility management operations in Russia amid economic sanctions and mounting international pressure. CBRE is the latest to make such a move, discontinuing its Russian leasing, investment and property management operations and denouncing Russia’s invasion of Ukraine in a statement issued March 7th. Other major players, including Savills, Knight Frank, and Colliers, have already suspended operations in the country, citing similar concern for international sanctions and the humanitarian impact of the invasion. Colliers is going even further to suspend operations in Belarus as well. Recently, global real estate service giant JLL switched course, issuing a formal statement that “with great sadness,” it will begin the process of separating from its domestic operations in Russia, though not commenting on whether the separation will be temporary or permanent. This is a significant change from just earlier this month , where, when asked about pulling operations from the country, JLL stated it would stay abreast of the situation abroad and continue to ensure the safety of its people and clients.
Now that CBRE and Dallas-based JLL have joined the list, Houston-based powerhouse Hines appears to be continuing its “wait and see” approach. Hines currently owns Russian assets valued at $2.9 billion, nearly 2 percent of its entire $160 billion asset portfolio, and its property management portfolio manages more than 243 million square feet worldwide. While other firms have temporarily suspended current operations, Hines has gone so far as to say it will avoid servicing any future investments in the country, though it did similarly condemn Russia’s actions. With JLL’s recent decision , if Hines does take a stronger stance, it will likely happen soon.
Reprinted courtesy of
Cait Horner, Pillsbury and
Adam J. Weaver, Pillsbury
Ms. Horner may be contacted at cait.horner@pillsburylaw.com
Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com
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Reminder: Know Your Contractor Licensing Rules
January 09, 2023 —
Christopher G. Hill - Construction Law MusingsIn the course of my construction law practice, I have the pleasure of speaking with and talking to contractors and subcontractors that are based in Virginia and also based in other states. With the more nationalized construction landscape due to the constricted construction economy, I have more and more interaction with the latter category.
When I get a call from an out of state contractor (often when that construction company has an issue), one of my first questions is always whether that contractor has obtained its contractors license here in Virginia. In most cases, the answer is “Yes” and we can move on. However, in some instances, the answer is no and we have to discuss the potential consequences.
Among the consequences for failure to obtain the proper contractor license prior to performing work in Virginia are as follows:
- Inability to record a mechanic’s lien
- Possible criminal charges
- Possible inability to collect for construction work performed
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com