Columbus Ohio Building Expert Directory

Application of Efficient Proximate Cause Doctrine Supports Coverage

January 06, 2012 — Tred R. Eyerly - Insurance Law Hawaii

Relying on the efficient proximate cause doctrine, the court determined coverage potentially existed for damage caused by water. Union Sav. Bank v. Allstate Indem. Co., 2011 U.S. Dist. LEXIS 134398 (S.D. Ind. Nov. 21, 2011).

The Tods purchased property that was mortgaged by Union Savings. The Tods obtained a Landlords Policy for the property from Allstate. When the Tods were in default on their loan, Union Savings notified them that foreclosure proceedings would commence. Union Savings sent an appraiser to the property who discovered water in the basement. Water and electricity to the building were off. Union Savings notified Allstate and later filed a formal claim under the mortgagee clause in the Landlords Policy. This clause stated, "A covered loss will be payable to the mortgagees named on the policy declaration. . . ."

Allstate denied coverage, citing exclusions for water damage.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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Damage Control: Major Rebuilds After Major Weather Events

October 21, 2024 — David McMillin - Construction Executive
More than two feet of rain drenching Fort Lauderdale in a day, baseball-sized hail chunks falling on Minneapolis and the deadliest wildfire in more than a century destroying more than 2,100 acres of Maui—2023 was a stark reminder that Mother Nature is a force to be reckoned with. In total, $28 billion dollars’ worth of extreme weather and climate-related disasters ripped across the U.S. last year—a new record, according to the National Oceanic and Atmospheric Administration. And there’s no relief in sight: 2024 is already the second-busiest tornado season on the books, and wildfires were burning in Oregon, California, Montana and Texas as this issue went to print. Part of dealing with disasters is preparing for their impact to infrastructure, and Roland Orgeron Jr.—who co-founded New Orleans-based Legacy Industries with business partner Blake Couch in 2016—has been helping clients do just that. “We do a lot of consulting to identify vulnerabilities, and we offer action plans for companies based on potential storm scenarios,” Orgeron Jr. says. Some of those clients include large oil and gas companies with operations along the Mississippi River that cannot afford to be shut down for any extended period. “Before Hurricane Ida hit, we pre-positioned equipment inside some facilities, and we had guys responding the day after the storm to clear the area and assess the damage,” Orgeron Jr. says. During the immediate response to Hurricane Ida in 2021, the company’s work involved more than keeping the business locations up and running; they needed to help a business’ employees find a place to live. “We have a home stabilization contract with one oil and gas company designed to make sure their employees can get back to work as comfortably and quickly as possible,” Orgeron Jr. says. Reprinted courtesy of David McMillin, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Plaza Construction Negotiating Pay Settlement for Florida Ritz-Carlton Renovation

August 31, 2020 — Scott Van Voorhis - Engineering News-Record
Lionstone Development, owner of the Ritz-Carlton hotel in Miami Beach's South Beach section, began a $90-million renovation in 2017 after damage by Hurricane Irma forced the property's closing. The company reopened the hotel this past January to considerable acclaim in the hospitality industry press. Scott Van Voorhis, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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Texas LGI Homes Goes After First-Time Homeowners

May 13, 2014 — Beverley BevenFlorez-CDJ STAFF
According to Big Builder, while many consumers have “gone to rentals…as the homeownership rate fell,” that hasn’t stopped Texas-based builder LGI Homes from marketing to the entry-level buyer: “We do not believe that we’re becoming a renter society,” Eric Lipar, LGI CEO told Big Builder. “We believe there is a need and a desire for homeownership.” “The real growth will be powered by an aggressive sales and marketing operation that aims to pull renters out of their apartments (or single-family rentals) and into LGI homes,” reported Big Builder. “So far this pitch has worked in Texas (Dallas, Houston, San Antonio, and Austin), in addition to Phoenix and Tampa, Fla.” Read the court decision
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NY Construction Safety Firm Falsely Certified Workers, Says Manhattan DA

March 25, 2024 — Johanna Knapschaefer - Engineering News-Record
A New York-based construction safety firm and 25 individuals were indicted Feb. 28 for allegedly operating a bogus safety training school, Manhattan District Attorney Alvin Bragg's office says. The firm, Valor Security & Investigations is also linked to “endangering the life” of Ivan Frias, who fell to his death from the 15th floor of a New York City construction site in 2022. Reprinted courtesy of Johanna Knapschaefer, Engineering News-Record Ms. Knapschaefer may be contacted at knapj@enr.com Read the full story... Read the court decision
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Construction Litigation Roundup: “Builder’s Risk Indeed”

October 24, 2023 — Daniel Lund III - Lexology
A contractor for a hotel in Seattle was tasked with constructing the hotel utilizing premanufactured modular hotel rooms. The modular unit portion of the project was the subject of a $15.8 million subcontract between the general contractor and the manufacturer. The manufacturer was also responsible to the GC for shipping and installing the modular units. Shipping was to be “DDP,” or “Delivery Duty Paid” – which, according to a New York federal court, “is an international shipping term meaning that the seller assumes all responsibilities and costs for delivering property to the named place of destination, including export and import clearance, fees, duties, and taxes.” Additionally, per the subcontract, the manufacturer was responsible for “ensur[ing] all modular units [were] covered, secured[,] and protected from damage during the shipping process….” The modular units were shipped from Poland to Seattle. In the shipping process, the units spent some time in the Port of Everett in Washington state, where the units sustained water damage while sitting in port. A related damage claim made by the subcontractor against the general contractor’s builder’s risk policy. On the face of the policy, the policy covered subcontractors as “additional insured” parties, covered all manner of materials and the like to be used on the project, and would provide that coverage in the process of transporting the materials insofar as “inland or coastal waters” were concerned. Yet, the builder’s risk insurer refused to cover the claim for the damages to the modular units which occurred while sitting in port in Everett. 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

Update Coverage for Construction Defect Claims in Colorado

February 11, 2013 — Tred R. Eyerly
Whether construction defect claims against an insured contractor or subcontractor are covered is undergoing an intense debate in Colorado that is reminiscent of the current coverage battle in Hawaii. Although I missed the case until recently, the decision in Colo. Pool Sys. v. Scottsdale Ins Co., 2012 Colo. App. LEXIS 1732 (Colo. Ct. App. Oct. 25, 2012), appears to divert from a prior case from the Colorado Court of Appeals, Gen. Sec. Indem. Co. v. Mountain States Mut. Cas. Co., 205 P.3d 529 (Colo. App. 2009). Gen. Security held that faulty workmanship, standing alone, was not an "accident." Gen. Security was heavily relied upon by the Hawaii Intermediate Court of Appeals when it found construction defects arose from breach of contract and were not covered under a liability policy. See Group Builders v. Admiral Insurance Co., 123 Haw. 142, 231 P.3d 67 (Haw. Ct. App. 2010). In Colo. Pool Sys., Colorado Pool hired subcontractors to construct a poll's concrete shell. After the shell was poured, an inspection noticed that some re-bar was too close to the surface. The owner turned to its general contractor, White Construction Group, and demanded that the pool be removed and replaced. White turned to Colorado Pool, who notified its carrier, Scottsdale. Read the court decision
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Reprinted courtesy of Insurance Law Hawaii
Mr. Eyerly can be contacted at te@hawaiilawyer.com

No Indemnity Coverage Where Insured Suffers No Loss

November 05, 2014 — Tred R. Eyerly - Insurance Law Hawaii
The insured subcontractor sought coverage under its Builder's Risk policy for loss despite already being paid under contract the amount sought under the policy. MKB Constr. v. Am Zurich Ins. Co., 2014 U.S. Dist. LEXIS 136096 (W.D. Wash. Sept. 24, 2014). MKB contracted with the Lower Yukon School District (LYSD) to place gravel fill for a new building pad upon which a school building would be placed in Emmonak, Alaska. The project site was built on tundra that melted in the summer, becoming marshy and pocketed by pools of standing water. LYSD provided the bidding contractors with information stating that settlements of 3 to 9 inches could be expected in areas with 30 inches of fill. The contract was awarded to MKB, who subsequently realized it had under bid the amount of gravel fill that would be required. The estimated difference in the amount bid and the amount that would be needed was 6,583 cubic yards. LYSD refused to increase the contract price. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

COLUMBUS OHIO BUILDING EXPERT DIRECTORY AND CAPABILITIES