Efficient Proximate Cause Doctrine Bars Coverage for Collapse of Building
July 31, 2013 —
Tred Eyerly, Insurance Law HawaiiThe court rejected the insured's argument that there was coverage for the collapse of a building caused by water leakage (a covered peril) and landslide (an uncovered peril). Stor/Gard, Inc. v. Strathmore Ins. Co., 2013 U.S. LEXIS App. 11015 (1st Cir. May 31, 2013).
A severe rain storm caused soil to slide down a hill and over a retaining wall, thereby damaging a building owned by the insured. Investigators hired by Strathmore Insurance Company determined that rain had soaked into the soil, causing the landslide. Although the investigators found some water leakage, they determined the leakage was not a cause or contributing factor, and was negligible compared to the rain amount.
The insured's policy with Strathmore was an all-risk policy. Loss caused by a landslide was excluded. Further, loss caused by collapse was excluded from coverage except as set forth in the policy's "additional coverage for collapse" section. This section provided coverage for a collapse caused by water damage or a leakage of water. Another exclusion barred coverage for loss caused by weather conditions.
Read the court decisionRead the full story...Reprinted courtesy of
Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Parks and Degradation: The Mess at Yosemite
September 09, 2024 —
Laura Bliss - BloombergA couple of miles past the western entrance to Yosemite National Park, visitors pass from California into a postcard. The road opens to a majestic view of
Half Dome, El Capitan and Cathedral Rocks—celebrity peaks if ever there were—which form the towering walls of Yosemite Valley. On the pine-scented floor of John Muir’s mountain mansion, the Merced River flows gently by the side of the road as signs point toward trailheads and tourist destinations. Not far from
Curry Village, a cluster of tent cabins and eateries at the eastern end of the road, is a section of employee housing known as the Stables. It was there that Erin Rau found herself wrapped in a sleeping bag one broiling afternoon last summer, wondering whether she was about to die.
Rau was a little over a month into a seasonal job selling goods in the village’s general store. Almost as soon as she arrived from Michigan, she recalls, she got the sense this wouldn’t be the carefree, post-college summer gig she’d imagined. In the evenings, she was left alone to manage a bunch of fellow early-twentysomethings making the same sixteenish bucks an hour until the shop closed at 10. At night a family of ringtail possums would crawl down from the rafters to tear into a display of baked goods, a long-standing issue she says her bosses did nothing to resolve, apart from throwing away half-eaten muffins in the morning. Similarly, deer mice kept leaving droppings on the pillows and sheets in the cabin Rau shared with three other women. When one of her roommates complained, she says, management supplied a Ziploc with a couple of mouse traps, a mask, gloves and some hand wipes, leaving the employees to sort out the rest.
Read the court decisionRead the full story...Reprinted courtesy of
Laura Bliss, Bloomberg
Don’t Forget to Mediate the Small Stuff
August 02, 2017 —
Christopher G. Hill - Construction Law MusingsIt’s been a while since I talked mediation here at Construction Law Musings. Those that read regularly (thanks) have likely missed my musings on the topic. Those who read this construction blog regularly also know that I am both a Virginia Supreme Court certified general district court mediator and a huge advocate of mediation as a method to resolve construction disputes. While many of us think of mediation as a method to resolve the major disputes or litigation that occasionally rear their heads in the course of running a construction law practice or construction business, my experience as both a construction attorney and a mediator has taught me something: mediation works for all sizes of cases.
As an advocate for my construction clients, I know that proper trial preparation requires the same diligence and attention to detail for a smaller case as it does for a larger case. While a smaller case in the Virginia general district court may not have the depositions, written discovery and motions practice that a Virginia circuit court case may have, it still requires witness preparation, document processing and review and many of the other aspects of a larger case. While construction litigation is never a money maker in the best of circumstances, in the smaller cases the attorney fees often total a larger percentage of the total potential recovery. For this reason, the small cases are almost better suited for a quick mediated resolution than the larger ones. The larger cases may cost more to prosecute or defend, but the fees are less likely to eat up such a large percentage of any recovery.
Read the court decisionRead the full story...Reprinted courtesy of
Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
The California Legislature Passes SB 496 Limiting Design Professional Defense and Indemnity Obligations
November 21, 2017 —
Mark Himmelstein & Jenny Guzman – Newmeyer & Dillion LLPOriginally published by CDJ on June 15, 2017
Since 2008 when the California legislature limited subcontractor indemnity obligations, the design professional community has been shouting “what about us?” Well, the legislature finally responded and a new law that limits design professional’s defense and indemnity obligations to their percentage of fault goes into effect on January 1, 2018.
THE NEW LAW – SB 496
SB 496 amends California Civil Code section 2782.8 and states that indemnity agreements must be limited to the negligence, recklessness or willful misconduct of the indemnitee (i.e. no more Type I indemnity with design professionals). The amendment also provides that “in no event shall the cost to defend charged to the design professional exceed the design professional’s proportionate percentage of fault”, with a limited opportunity for reallocation in the event another defendant is judgment proof.
However, the duty to defend still remains and still arises at the time of the tender of the defense (both issues that were unsuccessfully targeted by the design professional lobbyists).
Reprinted courtesy of
Mark Himmelstein, Newmeyer & Dillion LLP and
Jenny Guzman, Newmeyer & Dillion LLP
Mr. Price may be contacted at mark.himmelstein@ndlf.com
Ms. Zucker may be contacted at jenny.guzman@ndlf.com
Read the court decisionRead the full story...Reprinted courtesy of
Five "Boilerplate" Terms to Negotiate in Your Next Subcontract
November 08, 2017 —
James R. Lynch - Ahlers & Cressman PLLCWhether you negotiate your own subcontracts or rely on your lawyer to do the heavy lifting at contract time, a savvy subcontractor should understand the basic purpose of common subcontract provisions, and be prepared to negotiate for fair and commercially reasonable terms. While most sophisticated subcontractors are skilled at negotiating the core terms of a subcontract—scope of work, price, and time—a few simple but less obvious tweaks to common subcontract terms and conditions can go a long way to protect a subcontractor from unfair results when a dispute arises.
From the desk of an experienced construction lawyer, below are the first three of the top five “boilerplate” provisions that subcontractors too often overlook during contract negotiations, along with tips on language to include and to avoid.
Read the court decisionRead the full story...Reprinted courtesy of
James R. Lynch, Ahlers & Cressman PLLCMr. Lynch may be contacted at
jlynch@ac-lawyers.com
The Value of Photographic Evidence in Construction Litigation
April 26, 2021 —
Marie Mueller - Construction ExecutiveIf a picture is worth a thousand words, can it be worth a thousand dollars? Ten thousand? Maybe, if it provides key evidence in a construction dispute. Litigating a construction case involves each side telling their story. Details and visual context make a story compelling. Evidence and corroboration make a story persuasive. Photographs can help on both of these fronts.
The Value of Photographic Evidence in Construction Litigation
Consider the following examples:
- A dispute relates to the timeliness of particular work. An employee has a memory of a load of materials arriving to the site later than it should have, but the records are incomplete or ambiguous about when it actually occurred. If the employee also took a photo of the materials, on the day they arrived, they could match up the date of the photo to their memory and build a clear timeline.
- A dispute relates to the presence or absence of obstructions in drilled shafts. There are no available photographs or videos of the work due to site restrictions. Presentation of this type of case may be severely limited by not being able to show photos depicting the size, shape and type of material removed from the shafts, and by the lack of video depicting the work.
Reprinted courtesy of
Marie Mueller, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Ms. Mueller may be contacted at
mmueller@verrill-law.com
UCP Buys Citizen Homes
March 31, 2014 —
Beverley BevenFlorez-CDJ STAFFUCP, a home builder and land developer based in San Jose, California, has purchased “Charlotte-based Southeast regional home building venture Citizens Homes, whose chairman is well-known home building industry veteran Tony Mon, and whose president and chief operating officer is third-generation home builder Scott Thorson,” according to Big Builder.
According to a UCP press statement, as quoted by Big Builder, “[t]he purchase price, estimated to be approximately $15 million, is based on the total assets of Citizens at the closing of the acquisition, less cash and cash equivalents, and less certain assumed trade payables. In addition, Citizens is eligible to receive earnout payments from UCP of up to $6 million in the aggregate based on performance over the next five years.”
The acquisition is expected to close during the second quarter of 2014.
Read the court decisionRead the full story...Reprinted courtesy of
Don’t Believe Everything You Hear: Liability of Asbestos Pipe Manufacturer Upheld Despite Exculpatory Testimony of Plaintiff
May 24, 2021 —
Garret Murai - California Construction Law BlogIn the next case, Morgan v. J-M Manufacturing Company, Inc. 60 Cal.App.5th 1078 (2021), the 2nd District Court of Appeal upheld a $7 million personal injury verdict against an asbestos-cement pipe manufacturer despite exculpatory testimony from the plaintiff, holding that the testimony was an issue of witness credibility rather than sufficiency of the evidence, and holding that the trial court’s denial of a jury instruction requested by the pipe manufacturer was appropriate because, while the requested jury instruction was a recitation of undisputed facts, the purpose of jury instructions is to recite the law rather than facts, even undisputed ones.
The Morgan Case
Norris Morgan was exposed to asbestos at construction sites where he worked in the 1970s and 80s. After he was diagnosed with mesothelioma in December 2017, Morgan and his wife sued a number of defendants, including J-M Manufacturing for personal injuries and loss of consortium.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com