Anti-Concurrent, Anti-Sequential Causation Clause Precludes Coverage
February 26, 2015 —
Tred R. Eyerly – Insurance Law HawaiiWhere the building was damaged by both a covered cause and a non-covered cause, the policy's anti-concurrent/anti-sequential causation clause barred coverage for a collapsed building. Ashrit Realty LLC v. Tower Nat'l Ins. Co., 2015 N.J. Super. Unpub. LEXIS 107 (N.J. Super. Ct. App. Div. Jan. 20, 2015).
The property sustained moderate damage during a storm on August 14, 2011. More extensive damage was caused by Hurricane Irene two weeks later. After the hurricane, a large hole formed due to the collapse of a pipe which ran underneath the property. Once the pipe collapsed, leaking water caused substantial soil erosion, which led to the collapse of the rear portion of the building.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
As Fracture Questions Remain, Team Raced to Save Mississippi River Bridge
September 06, 2021 —
Jim Parsons - Engineering News-Record"How is this bridge still standing?”
That was the initial reaction of Aaron Stover, Michael Baker International’s vice president and regional bridge practice lead, as he first studied images of a fractured tie beam that forced the May 11 emergency shutdown of the I-40/Hernando de Soto Bridge between Tennessee and Arkansas. Discovered by chance earlier in the day during MBI’s routine above-deck inspection, the fracture on the bridge’s eastbound span affected nearly half the cross-section of a 26-in. by 33-in. welded girder supporting one of the 50-year-old structure’s 900-ft-long, 100-ft-high arched navigation spans across the Mississippi River.
Reprinted courtesy of
Jim Parsons, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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Sixth Circuit Finds No Coverage for Faulty Workmanship Under Kentucky Law
December 30, 2013 —
Tred Eyerly — Insurance Law HawaiiFollowing Kentucky law, the Sixth Circuit determined there was no coverage for a construction defect claim. Liberty Mut. Fire Ins. Co. v. Kay & Kay Contracting, LLC, 2013 U.S. App. LEXIS 23587 (6th Cir. Nov. 19, 2013).
Walmart hired a contractor to build a new store. The contractor hired Kay and Kay to perform site preparation work and construct the building pad for the new store.
After Kay and Kay completed the building pad and the store was erected, cracks were noticed in the building's walls. Walmart contended there was settling in the some of the fill areas. Kay and Kay denied liability, but demanded coverage under its CGL policy with Liberty Mutual.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Pennsylvania Superior Court Fires up a Case-By-Case Analysis for Landlord-Tenant, Implied Co-Insured Questions
February 03, 2020 —
Gus Sara - The Subrogation StrategistIn Joella v. Cole, 2019 PA Super. 313, the Superior Court of Pennsylvania recently considered whether a tenant, alleged by the landlord’s property insurance carrier to have carelessly caused a fire, was an implied co-insured on the landlord’s policy. The court found that the tenant was an implied co-insured because the lease stated that the landlord would procure insurance for the building, which created a reasonable expectation that the tenant would be a co-insured under the policy. Since the tenant was an implied co-insured on the policy, the insurance carrier could not maintain a subrogation action against the tenant. This case confirms that Pennsylvania follows a case-by-case approach when determining whether a tenant was an implied co-insured on a landlord’s insurance policy.
The Joella case stems from a fire at an apartment building in Northampton County, Pennsylvania. The landlord’s property insurance carrier paid the landlord $180,000 to repair the damages resulting from the fire. In March 2018, the insurer brought a subrogation action against Annie Cole, a tenant in the building, alleging that Ms. Cole’s negligent use of an extension cord caused the fire. Ms. Cole raised the affirmative defense that she was an implied co-insured on the landlord’s insurance policy. The subrogating insurer filed a partial motion for summary judgment seeking to dismiss Ms. Cole’s defense. In response, Ms. Cole filed a cross motion for partial judgment, arguing that because the lease specified that the landlord would maintain fire insurance for the building, there was a reasonable expectation that she would be a co-insured on that policy. The trial court found in favor of Ms. Cole, holding that the landlord’s insurer could not maintain a subrogation action against her because she was an implied co-insured of the landlord’s insurance policy under the terms of the lease. The landlord’s insurer filed an appeal with the Superior Court of Pennsylvania.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
Hawaii Supreme Court Finds Subcontractor Has No Duty to Defend Under Indemnity Provision
July 14, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe Hawaii Supreme Court vacated the decision of the Intermediate Court of Appeals [see prior post here] and determined that a subcontractor did not have a duty to defend the developer upon tender under an indemnify provision in the parties' contract. Arthur v. State of Hawaii, 2016 Haw. LEXIS 155 (June 27, 2016).
A simplified version of the detailed facts and procedural history follows. The case involved the wrongful death of Mona Arthur. Mona typically gardened on the hillside behind her home. She would cross a concrete drainage ditch and climb over a two-foo-high chain length fence to reach the hillside.
Mona was found lying in a concrete ditch with severe head injuries, which ultimately led to her death. Her husband and estate sued for her wrongful death. Claims were asserted for negligence in failing to build a fence higher than two feet, which would have prevented Mona from having access to the garden. Defendants included the Department of Hawaiian Home Lands; Kamehameha Investment Corporation ("KIC"), the developer; Design Partners, Inc., the architect; Coastal Construction Company, the general contractor; and Sato and Associates, the civil engineer. The second amended complaint sought punitive damages against KIC.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Top 10 Hurricane Preparedness Practices for Construction Sites
September 25, 2018 —
Andrew Gilbert - Construction ExecutiveLast year, the National Oceanic and Atmospheric Administration (NOAA) recorded that the North Atlantic saw the third highest number of major hurricanes to date. North America alone saw three tropical storms and four hurricanes make landfall, the most since 2005.
As the 2018 hurricane season takes shape (running from June 1 to Nov. 30), it’s imperative to begin construction site hurricane planning efforts early and to be as prepared as possible prior to any storm. Preparing for a storm can help ensure the safety of not only project and onsite teams, but also of the surrounding communities.
1. DEVELOP AND REVIEW A HURRICANE PREPAREDNESS AND SAFETY PLAN
Prior to hurricane season, make sure the project contractor has provided the team with a hurricane preparedness and safety plan. Review this plan with the entire team and the owner. This document outlines the exact timeline and steps the contractor will take to safely secure the project site in the event of a storm. The integrated process is especially important when dealing with renovation projects, exterior upgrades or projects that connect new construction to existing facilities.
Reprinted courtesy of
Andrew Gilbert, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Gilbert may be contacted at
andrew.gilbert@cbre.com
Trump Order Waives Project Environment Rules to Push COVID-19 Recovery
June 15, 2020 —
Debra K. Rubin, Mary B. Powers & Jim Parsons - Engineering News-RecordCiting the "national emergency" spurred by the COVID-19 pandemic's economic hit, President Donald Trump has signed an executive order that directs federal agencies to bypass environmental laws to expedite infrastructure projects, including those on federal lands, as a stimulus.
Reprinted courtesy of Engineering News-Record attorneys
Debra K. Rubin,
Mary B. Powers and
Jim Parsons
Ms. Rubin may be contacted at rubind@enr.com
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Microsoft Said to Weigh Multibillion-Dollar Headquarters Revamp
September 17, 2015 —
Dina Bass & Hui-Yong Yu - BloombergMicrosoft Corp. is considering a multibillion-dollar revamp of its headquarters campus in suburban Seattle, seeking to foster more collaboration among employees and attract young engineers, according to people with knowledge of the plans.
The software giant has hired architecture firm Skidmore, Owings & Merrill LLP as part of the effort at its Redmond, Washington, offices, said the people, who asked not to be named because the plans aren’t public. Skidmore Owings designed Dubai’s Burj Khalifa, the world’s tallest building, and is helping Microsoft with a makeover of its much smaller campus in Mountain View, California.
Microsoft hasn’t yet decided whether to move forward with the Redmond overhaul, said one of the people familiar with the matter.
Reprinted courtesy of
Dina Bass, Bloomberg and
Hui-Yong Yu, Bloomberg
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