Seattle Washington Building Expert Directory

Allegations That COVID-19 Was Physically Present and Altered Property are Sufficient to Sustain COVID-19 Business Interruption Suit

May 24, 2021 — Michael S. Levine & Joseph T. Niczky - Hunton Insurance Recovery Blog
On Wednesday, a federal judge in Texas denied Factory Mutual’s Rule 12(c) motion for judgment on the pleadings, finding that the plaintiffs adequately alleged that the presence of COVID-19 on their property caused covered physical loss or damage in the case of Cinemark Holdings, Inc. v. Factory Mutual Insurance Co., No. 4:21-CV-00011 (E.D. Tex. May 5, 2021). This is the third COVID-19-related business interruption decision from Judge Amos Mazzant since March, but the first in favor of a policyholder. Taken together, the three decisions have two key takeaways and provide a roadmap for policyholders in all jurisdictions. First, the Cinemark decision recognizes that the alleged presence of COVID-19 viral particles that physically altered the policyholder’s property is sufficient under federal pleading standards and controlling state law. In its motion, FM relied on Judge Mazzant’s recent decision in Selery Fulfillment, Inc. v. Colony Insurance Co., No. 4:20-CV-853, 2021 WL 963742 (E.D. Tex. Mar. 15, 2021), which dismissed a lawsuit alleging that the policyholder’s losses were caused by government orders that closed its business, rather than from the actual presence of the virus on its property. The Court held that government orders alone do not constitute physical loss or damage, and declined to rule on whether the physical presence of the virus does. Judge Mazzant reached the same conclusion weeks later in Aggie Investments, L.L.C. v. Continental Casualty Co., No. 4:21-CV-0013, 2021 WL 1550479 (E.D. Tex. Apr. 20, 2021). Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Joseph T. Niczky, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Niczky may be contacted at jniczky@HuntonAK.com Read the court decision
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The Irresistible Urge to Build Cities From Scratch

November 21, 2018 — Monte Reel - Bloomberg
Embedded in the cerebral folds of every city planner who’s ever lived, there’s a cluster of neurons that lights up like Las Vegas when confronted with the possibility of a blank slate. It started with Hippodamus, the man Aristotle claimed was the father of urban planning. When the Persians destroyed his hometown of Miletus, Hippodamus discovered a bright side to catastrophe: The attackers had erased all the regrettable improvisations that, over the centuries, had made a mess of the place. Tasked with rebuilding, he seized his chance to impose order upon chaos. And so the concept of the urban grid was born. Ever since, the dream of carte blanche has proved an all-but-irresistible seduction. Leonardo da Vinci drafted detailed sketches of an “ideal city” after the plague ravaged Milan, and a few hundred years later, Frank Lloyd Wright designed a metropolis that solved the problem of vehicular congestion via a network of helicopter taxis. Every so often, this urge in city planners breaks out into a full-scale epidemic, such as the one that spread throughout Europe and North America in the early 1900s. Known as the “garden city movement,” it aimed to counter the indignities of the Industrial Revolution by creating planned communities with plenty of green space. Read the court decision
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Reprinted courtesy of Monte Reel, Bloomberg

Town Sues over Defective Work on Sewer Lines

January 13, 2014 — CDJ STAFF
The Handy Sanitary District in North Carolina has filed a lawsuit against one of the subcontractors on the Badin Lake Sewer Project, which the Lexington Dispatch describes as “delay riddled.” The town claims that the materials used by Hobbs, Upchurch and Associates “were not adequate for the project.” Additionally, the town claims that valves were improperly installed or damaged, and that pipes were of the incorrect type and improperly connected. The Sanitary District Board of Commissioners has additionally settled a lawsuit over non-payment for work on the sewer project. The Handy Sanitary District has settled claims brought by Monroe Roadways Contractors and Young Construction with a payment of $250,000. Read the court decision
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I-35W Bridge Collapse may be Due to “Inadequate Load Capacity”

January 22, 2014 — Beverley BevenFlorez-CDJ STAFF
The Crookston Times reports that the I-35W Bridge collapse that occurred five years ago in Minneapolis, Minnesota, killing 13 people and injuring another 145, may have been caused by “inadequate load capacity.” The National Transportation Safety Board (NTSB) report stated that it is “a simple design flaw in metal plates that help connect one steel beam to another.” Due to the findings, “the NTSB set new safety recommendations for bridge design plans, bridge inspection and training of bridge inspectors.” Read the court decision
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No Coverage for Installation of Defective Steel Framing

June 26, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The California Court of Appeal affirmed the trial court's holding that the insurer had no duty to defend claims arising out of the insureds' installation of defective steel framing in an apartment building. Regional Steel Corp. v. Liberty Surplus Ins. Corp., No. B245961(Cal. Ct. App. May 16, 2014) [decision here]. Regional Steel was a subcontractor for providing reinforced steel to the columns, walls, and floors of an apartment building under construction. Regional used 90 degree and 135 degree seismic hooks as approved by the general contractor, JSM Construction, Inc. The City building inspector issued a correction notice, however, requiring the exclusive use of the 135 degree hooks. Levels one through three had defective tie hooks and required repair. JSM refused to pay Regional's invoices and withheld $545,000. JSM had to make repairs that required opening up numerous locations in the concrete walls, welding reinforcements to the steel placed by Regional, and otherwise strengthening the inadequate installation. Regional sued JSM for the withheld payment. JSM cross-claimed, asserting breach of contract and breach of express and implied warranties. 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

Address 'Your Work' Exposure Within CPrL Policies With Faulty Workmanship Coverage

December 29, 2020 — Joseph Reynolds - Construction Executive
New faulty workmanship coverage forms have emerged to potentially address the “your work” exposure found in most contractors professional liability (CPrL) policies. Once offered by only a single carrier, several insurers have recently entered the marketplace to cover the cost to repair or replace faulty work or the related material costs associated with the “self-performed work” of general and trade contractors. Commonly serving as a separate insuring agreement and offered in carrier-specific CPrL policies, faulty workmanship coverage forms are designed to protect contractors from the “your work” claims triggered by project owners and other third parties. This includes the contractor’s workmanship as well as the equipment, parts and materials such as steel beams, epoxy activators and anchor bolts used to perform construction work. Insureds should be aware that exclusions and strict conditions apply. For instance, faulty workmanship policies typically do not cover resulting bodily injury and property damage and some policies even exclude project delays and other business risks that can arise from the claims of unhappy customers. Another potentially confusing issue is the scope of coverage offered under a ‘faulty work’ endorsement. While some faulty workmanship enhancements are specifically-designed to cover “your work,” claims, others may only cover the products manufactured or fabricated by the insured and not the work they perform or install. Reprinted courtesy of Joseph Reynolds, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Reynolds may be contacted at joseph.reynolds@rtspecialty.com

How a 10-Story Wood Building Survived More Than 100 Earthquakes

June 26, 2023 — Todd Woody - Bloomberg
One sunny morning last month, an earthquake jolted northeast San Diego. Minutes later, another temblor hit, causing a 10-story wood building to sway. The quakes, though, were triggered by a computer and the shaking was confined to a 1,000-square-foot platform on which the building — a full-size test model — stood. The structure is the tallest ever subjected to simulated earthquakes on the world’s largest high-performance “shake table,” which uses hydraulic actuators to thrust the steel platform through six degrees of motion to replicate seismic force. The shake-table trials at a University of California at San Diego facility are part of the TallWood Project, an initiative to test the seismic resiliency of high-rise buildings made of mass timber. An engineered wood building material, mass timber is increasingly popular as a more sustainable alternative to carbon-intensive concrete and steel. Read the court decision
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Reprinted courtesy of Todd Woody, Bloomberg

Duty to Defend Sorted Between Two Insurers Based Upon Lease and Policies

November 02, 2017 — Tred R. Eyerly - Insurance Law Hawaii
Two insurers disagreed on which was responsible for defense costs in the underlying personal injury suit against the insured. Nautilus Ins. Co. v. Westfield Ins. Co., 2017 U.S. Dist. LEXIS 158480 (E.D. Pa. Sept. 27, 2017). Knerr Group, Inc. lease property to Podcon, Inc. pursuant to a written lease. A man named Anthony Postell suffered an injury in an accident on the premises during the term of the lease. Postell filed a personal injury action against Knerr and Podcon, among others. Nautilus provided a defense to Knerr in the Postell case pursuant to a policy Nautilus issued to Knerr. Podcon was insured by Westfield. 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

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