Breaking The Ice: A Policyholder's Guide to Insurance Coverage for Texas Winter Storm Uri Claims
August 30, 2021 —
Kelly A. Johnson - Saxe Doernberger & Vita, P.C.The devastating extreme cold weather event in Texas often referred to as Winter Storm Uri, which lasted from February 14 to February 18, 2021, caused significant damages to homes and businesses in the region. Temperatures during the winter storm were the coldest on record since 1883, with some areas reaching as low as negative 6 degrees.4 Millions of Texans were impacted and many lives were lost.
Insurance analysts predict that Uri will lead to the largest number of insurance claims in the state, totaling $20 billion in claimed losses.5 In fact, Uri is set to surpass Hurricane Harvey as the most devastating natural disaster in Texas, which resulted in $19 billion in insured losses. Further, Uri will be the largest insured loss from a United States winter storm in the industry’s history.6
The catastrophic Uri losses range from damage to property caused by the bursting of frozen pipes, collapsed roofs, weakened structures, loss of power, lack of public utility services, and the expenses incurred in the disruption of normal business operations. In addition, some commercial businesses were unable to operate due to bad weather conditions on the roads, while others were forced to halt operations due to power outages.
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Kelly A. Johnson, Saxe Doernberger & Vita, P.C.Ms. Johnson may be contacted at
KJohnson@sdvlaw.com
Fewer NYC Construction Deaths as Safety Law Awaits Governor's Signature
July 25, 2022 —
Richard Korman - Engineering News-RecordThe hoped-for progress in New York City construction safety is coming too late for laborer Jose Fortina Armenta Hernandez. At 8:37 a.m. on May 27, 2021, while jackhammering a roof section on a Brooklyn building, the section on which Armenta stood gave way and he fell 60 ft. When last year his family sent his body from New York City to Mexico to be buried, they used a GoFundMe page to raise money for the laborer's funeral.
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Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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Quick Note: Attorney’s Fees and the Significant Issues Test
November 03, 2016 —
David Adelstein – Florida Construction Legal UpdatesAttorney’s fees become a component of damages that parties seek to recover whenever there is a contractual or statutory basis for them to recover their fees. Parties want to be able to recover all or substantially most of the attorney’s fees they incurred in pursuing their claim. (In my experience, recovering all of the fees incurred is very challenging.) But, to be entitled to attorney’s fees, a party has to be deemed the
prevailing party. There is the sentiment that as long as you recover a positive net judgment (even if it is for $100 when your claim was for $50,000) then you will be able to recover your attorney’s fees which will likely exceed the amount that was ever in dispute.
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David Adelstein, Katz, Barron, Squitero, Faust, Friedberg, English & Allen, P.A.Mr. Adelstein may be contacted at
dma@katzbarron.com
AGC’s 2024 Construction Outlook. Infrastructure is Bright but Office-Geddon is Not
February 12, 2024 —
Garret Murai - California Construction Law BlogThe Associated General Contractors of America has issued its
2024 Construction Outlook. According to its survey of construction contractors throughout the United States, contractors have a mixed outlook for 2024 with firms predicting transitions in the demand for projects, the types of challenges they will face and technologies they plan on embracing. According to the survey, contractors continue to cope with significant labor shortages, the impact of higher interest rates and input costs and a supply chain which, while better than in past few years, is still far from normal.
Of the 17 categories of construction types included in the survey, respondents expected a net positive growth in 14 of those categories, with infrastructure projects leading the net positive readings following the passage of the
Infrastructure Bill in 2021, and commercial retail and office leading the net negative readings as a result of the continuing
office-geddon:
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
BIM Legal Liabilities: Not That Different
February 10, 2020 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday here at Musings, we welcome Scott P. Fitzsimmons. Scott is an attorney with the construction law firm Watt, Tieder, Hoffar & Fitzgerald, where he represents contractors, subcontractors, owners, and engineers. He is also a LEED AP and an instructor for AGC of D.C., where he teaches BIM Contract Negotiation and Risk Allocation as part of AGC’s Certificate of Management, Building Information Modeling program.
When a new technology is introduced to the construction industry, contractors inevitably ask themselves one question “Great, how can this new gadget get me into trouble?” Building Information Modeling (BIM) is exactly the kind of technology that raises this fear. But, BIM has been around for a few years now, and the construction industry has done a good job of curtailing the fear of unanticipated legal liability.
Nevertheless, contractors should be aware of the pitfalls BIM introduces and should know how to limit their risk arising from this new “gadget.”
Often described as “CAD on Steroids,” BIM is truly much more than a simple design program. Along with early clash detection, BIM provides time and cost integration; calculates energy efficiency; and assists building maintenance long after project completion. Unlike CAD, BIM also modifies the collaborative nature of a construction project. Thus, subcontractors no longer review a design, submit shop drawings, and go to work. Rather, subcontractors are brought into the design process early in the project and often are asked to contribute to the design long before construction begins.
Asking a contractor or subcontractor to provide design services appears to shift the roles of an architect and a contractor. So, the questions abound: Is a contractor now responsible for design? Can the contractor be held responsible for defective design? Do not fret. To date, there has been only one advertised case addressing BIM liability. The reason is simple. For almost a hundred years, the United States Supreme Court has held that contractors are not responsible for defective design on a traditional design-bid-build project. Using BIM, therefore, should not modify a contractor’s responsibility. But, to ensure that your obligations do not extend beyond construction, all BIM requirements should be in writing and made part of your contract.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
James R. Lynch Appointed to the Washington State Capital Project Review Committee
June 22, 2016 —
Ahlers & Cressman Crew - Ahlers & Cressman Construction Law BlogJames R. Lynch, one of the attorneys at the law firm of Ahlers & Cressman PLLC, has been appointed to the Washington State Capital Project Review Committee (PRC). Created by the legislature in 2007, the PRC is responsible for reviewing and approving all public projects in the State of Washington using the General Contractor/Construction Manager (GC/CM) and Design-Build (D-B) delivery methods of construction. The PRC also certifies certain qualified government bodies to use these methods more broadly. The PRC consists of key representatives of Washington public project owners, designers, general contractors, specialty/subcontractors, construction managers, construction trades labor, and minority/women businesses. James has been appointed to the PRC’s Private Sector seat for a three-year term.
You may learn more about Ahlers & Cressman PLLC at www.ac-lawyers.com
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First Suit Filed for Losses Caused by COVID-19
March 30, 2020 —
Tred R. Eyerly - Insurance Law HawaiiLast week, the first lawsuit was filed seeking insurance coverage for business-interruption due to losses caused by COVID-19. The case, Cajun Conti, LLC, et al. v. Certain Underwriters at Lloyd's of London, ,et al., was filed in Louisiana. A New Orleans restaurant, Oceana Grill," seeks a declaratory judgment that its "all risks" policy issued by Lloyd's covers losses resulting from the closure of its restaurant due to the Governor's order restricting public gatherings and the Mayor of New Orleans' order closing restaurants.
The lawsuit contends that "contamination of the insured premises by the coronavirus would be a direct physical loss needing remediation to clean the surfaces of the establishment." The lawsuit further alleges the policy contains no exclusions for a "viral pandemic." The suit seeks a declaration that "the policy provides coverage to plaintiffs for any future civil authority shutdowns of restaurants in the New Orleans area due to physical loss from coronavirus contamination and that the policy provides business income coverage in the event that the coronavirus has contaminated the insured premises." The obvious dispute will be whether the coronavirus constitutes a "direct physical loss or damage" as required by the policy.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
No Coverage for Hurricane Sandy Damage
August 02, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe magistrate recommended that summary judgment be entered in favor of the insurer, thereby eliminating coverage for property damage incurred during Hurricane Sandy. Madelaine Chocolate Novelties, Inc. v. Great Northern Ins. Co., 2017 U.S. Dist. LEXIS 103015 (E.D. N.Y. June 30, 2017).
Madelaine Chocolate owned a facility three blocks form the Atlantic Ocean and one block from the Jamaica Bay section of Long Island Sound. Hurricane Sandy arrived October 29, 2012. Madeline Chocolate's facility sustained significant damage to its inventory, production machinery and premises, as storm surge from both bodies of water hit the property. Operations ceased during the 2012 holiday season and beyond, resulting in millions of dollars in lost income.
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Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com