The Colorado Court of Appeals Rules that a Statutory Notice of Claim Triggers an Insurer’s Duty to Defend.
October 23, 2012 —
David M. McLain, Higgins, Hopkins, McLain & RoswellGene and Diane Melssen d/b/a Melssen Construction (“Melssen”) built a custom home for the Holleys, during which period of time Melssen retained a CGL insurance coverage from Auto Owners Insurance Company. Soon after completion of the house, the Holleys noticed cracks in the drywall and, eventually, large cracks developed in the exterior stucco and basement slab. Thereafter, the Holleys contacted Melssen, the structural engineer, an attorney, and Auto-Owners, which assigned a claims adjuster to investigate the claim.
In April 2008, the Holleys sent Melssen a statutory notice of claim pursuant to C.R.S. § 13-20-803.5 (“NOC”). In this NOC, the Holleys claimed approximately $300,000 in damages related to design and construction defects. The Holleys also provided a list of claimed damages and estimated repairs, accompanied by two reports from the Holleys’ consultant regarding the claimed design and construction defects. In June 2008, Melssen tendered the defense and indemnity of the claim to Auto-Owners. While Auto-Owners did not deny the claim at that time, it did not inspect the property or otherwise adjust the claim. Thereafter, in October 2008, Auto-Owners sent Melssen a letter denying coverage on the basis that the damage occurred outside of the applicable policy period.
Ultimately, Melssen settled the claims against it for $140,000.
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Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell, LLC. Mr. McLain can be contacted at mclain@hhmrlaw.com
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NY State Appellate Court Holds That Pollution Exclusions Bar Duty to Defend Under Liability Policies for Claims Alleging Exposure to PFAS
February 01, 2022 —
Robert F. Walsh & Paul A. Briganti - White and Williams LLPOn January 6, 2022, the New York Supreme Court, Appellate Division, Third Department, held that the “sudden and accidental” pollution exclusion (SAPE) and “absolute” pollution exclusion (APE) in liability policies relieved two insurers of a duty to defend the insured-manufacturer in connection with claims alleging damages as a result of exposure to perfluorooctanoic acid (PFOA) and perfluorooctane sulfonate (PFOS), which are man-made chemicals within the group of per- and polyfluoroalkyl substances (PFAS). See Tonoga, Incorporated v. New Hampshire Insurance Company, No. 532546, 2022 N.Y. App. Div. LEXIS 105 (App. Div. 3rd Dep’t Jan. 6, 2022).
In Tonoga, starting in 1961, the insured and its predecessors owned and operated a manufacturing facility in Petersburg, New York that produced materials coated with polytetrafluoroethylene (PTFE). Until 2013, the manufacturing process involved the use of PFOA and/or PFOS. In early 2016, excessive PFOA and/or PFOS concentrations were detected in Petersburg’s municipal water supply. Later that year, the New York Department of Environmental Conversation designated the insured’s facility a Superfund site, and the insured entered into a consent agreement that required it to assist in remedial measures. 2022 N.Y. App. Div. LEXIS 105, at *1-2.
Reprinted courtesy of
Robert F. Walsh, White and Williams LLP and
Paul A. Briganti, White and Williams LLP
Mr. Walsh may be contacted at walshr@whiteandwilliams.com
Mr. Briganti may be contacted at brigantip@whiteandwilliams.com
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2017 Legislative Changes Affecting the Construction Industry
July 13, 2017 —
Melinda S. Gentile – Peckar & Abramson, P.C.The 2017 Florida Legislative Session recently concluded, and a number of important construction-related House Bills (HB) and Senate Bills (SB) were presented during the Session, most notably SB 204/HB 377. These Bills may impact General Contractors and Construction Managers in a number of ways, not the least of which is the period of time that a cause of action may be initiated for the design, planning or construction of an improvement.
The following construction-related Bills passed in both the House and Senate and will become law if approved by the Governor.
Senate Bill (SB) 204/House Bill (HB) 377: Relating to the Statute of Repose for causes of action based on design, planning or construction of an improvement to real property. This bill passed both the House and the Senate and was approved by the Governor on June 14, 2017. This bill becomes effective on July 1, 2017.
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Melinda S. Gentile, Peckar & Abramson, P.C.Ms. Gentile may be contacted at
mgentile@pecklaw.com
Design Immunity Does Not Shield Public Entity From Claim That it Failed to Warn of a Dangerous Condition
May 17, 2021 —
Garret Murai - California Construction Law BlogReaders of this blog are familiar with the concept of the design immunity defense.
Codified at Government Code section 830.6, it provides in pertinent that a public entity is not liable for an injury caused by a plan or design of a public improvement where the plan or design has been “approved in advance . . . by the legislative body of the public entity or by some other body or employee exercising discretionary authority to give such approval or where such plan or design is prepared in conformity with standards previously so approved” if the trial or appellate court finds that there “is any substantial evidence upon the basis of which (a) a reasonable public employee could have adopted the plan or design or the standards therefor or (b) a reasonable legislative body or other body or employee could have approved the plan or design or the standards therefor.”
In the next case, Tansavatdi v. City of Rancho Palos Verdes, Case No. B293670 (January 29, 2021), the 2nd District Court of Appeal examined whether the design immunity defense also serves as a defense to a claim that a public entity has a duty to warn of a dangerous condition on public property.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
CA Homeowners Challenging Alternate Pre-Litigation Procedures
April 15, 2014 —
Beverley BevenFlorez-CDJ STAFFGarret Murai on his California Construction Law blog discussed how some homeowners have challenged homebuilders who use alternative pre-litigation procedures instead of the rules of California’s Right to Repair Act (SB 800).
“The Right to Repair Act, which was intended to help curb the then rising tide of residential construction defect litigation, provides mandatory pre-litigation procedures which must be followed in construction defect cases involving new residential construction,” Murai explained. “One of the major exceptions to the statutory pre-litigation procedures under SB 800, however, is that a homebuilder can opt to use its own alternative pre-litigation procedures if disclosed to a homebuyer.”
Murai used The McCaffrey Group, Inc. v. Superior Court case to demonstrate that homeowners can challenge the builder’s use of alternative pre-litigation procedures, and win if they can prove that the alternate procedures are “unconscionable.”
“For homebuilders, the take away is that, sure you can adopt your own alternative pre-litigation procedures under the Right to Repair,” Murai stated, “but if you do just know that they may be challenged by homeowners who may contend that they are unconscionable, which kinda defeats the whole idea behind SB 800 which was intended to reduce the amount of litigation the first place.”
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White and Williams Lawyers Recognized by Best Lawyers
August 26, 2015 —
White and Williams LLPTwelve White and Williams lawyers have been listed in The Best Lawyers in America 2016. Inclusion in Best Lawyers is based entirely on peer-review. The methodology is designed to capture the consensus opinion of leading lawyers about the professional abilities of their colleagues within the same geographical area and legal practice area. Best Lawyers employs a sophisticated, conscientious, rational, and transparent survey process designed to elicit meaningful and substantive evaluations of the quality of legal services.
2016 Best Lawyers
Attorney / Practice Area
Frank Bruno / Patent Law
James Coffey / Mergers and Acquisitions Law
Timothy Davis / Real Estate Law
Joseph Foster / Personal Injury Litigation - Defendants
William Hussey / Tax Law; Trusts and Estates
Michael Kraemer / Employment Law - Management; Labor Law; Management; Litigation - Labor and Employment
Randy Maniloff / Insurance Law
John Orlando / Personal Injury Litigation - Defendants
Thomas Rogers / Real Estate Law
Joan Rosoff / Real Estate Law
Craig Stewart / Insurance Law; Product Liability - Defendants
William Taylor / Construction Law
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You may contact White and Williams LLP attorneys at www.whiteandwilliams.com
Design-Assist Collaboration/Follow-up Post
March 16, 2020 —
John P. Ahlers - Ahlers Cressman & Sleight PLLCShortly after posting the blog article “Design-Assist an Ambiguous Term Causing Conflict in the Construction Industry,” I received an email from Brian Perlberg, the Executive Director and Senior Counsel for ConsensusDocs. He brought two ConsensusDocs forms to my attention: ConsensusDocs 541 Design Assist Addendum and ConsensusDocs 300 Integrated Form of Agreement (IFOA). In the ConsensusDocs model of “design-assist,” the lead design professional retains design responsibility but benefits from input and consultation from the construction team during design development. By contrast, in the design-build project delivery method, the constructor assumes design responsibility and liability for either the entire project design (design-build) or just a component of the design (delegated design).
The ConsensusDocs 541 document goal is to provide “accurate information concerning program, quality, cost, constructability and schedule from all parties.” It provides a range of standard and optimal services during design development that essentially shifts the curve of selecting the construction manager (CM) and most importantly, special trade contractors, to much earlier in the process, perhaps as soon as the owner’s program is developed. This opens a world of possibilities for the design and construction team to collaborate early and often. The design professional, however, does not abdicate its design responsibility or authority in this process. The ultimate goal is to end the all-too-common wasteful cycle of design and redesign that is common in construction projects.[1]
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John P. Ahlers, Ahlers Cressman & Sleight PLLCMr. Ahlers may be contacted at
john.ahlers@acslawyers.com
Three lawyers from Haight were recognized in The Best Lawyers in America© 2020 Edition
September 30, 2019 —
William G. Baumgaertner, Michael Leahy, & Denis Moriarty - Haight Brown & BonesteelCongratulations to Haight’s attorneys who were recognized in The Best Lawyers in America© 2020 Edition
Los Angeles, California
William G. Baumgaertner for personal injury and product liability litigation for plaintiffs and defendants
Michael Leahy for insurance law
Denis Moriarty for insurance law
Reprinted courtesy of Haight Brown & Bonesteel attorneys
William G. Baumgaertner,
Michael Leahy and
Denis J. Moriarty
Mr. Baumgaertner may be contacted at wbaum@hbblaw.com
Mr. Leahy may be contacted at mleahy@hbblaw.com
Mr. Moriarty may be contacted at dmoriarty@hbblaw.com
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