Construction Bright Spot in Indianapolis
March 01, 2012 —
CDJ STAFFThe downtown Indianapolis area is the site of about 85 major building projects that are from groundbreaking to just complete. The Indianapolis Star reports that the cumulative worth of the projects is about $3 billion, a level of construction that Indianapolis has seen only once before.
About thirty of the projects are residential. The main commercial project is a $754 million hospital building. The boom in downtown Indianapolis is not matched elsewhere, with the Indianapolis Star reporting that in the rest of Central Indiana, construction has slowed.
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PA Superior Court Provides Clarification on Definition of CGL “Occurrence” When Property Damage Is Caused by Faulty Building Conditions
September 30, 2019 —
Anthony L. Miscioscia & Konrad R. Krebs - White and Williams LLPThe standard for an “occurrence” under a commercial general liability (CGL) insurance policy has been addressed on several occasions by Pennsylvania courts when an insured has allegedly performed faulty workmanship on a construction project. Specifically, in Pennsylvania, a claim for damages arising from an insured’s performance of faulty workmanship pursuant to a construction contract, where the only damage is to property supplied by the insured or worked on by the insured, does not constitute an “occurrence” under the standard commercial general liability insurance policy definition. But what about the circumstance when the insured has failed to perform contractual duties where the claim is for property damage to property not supplied by the insured or unrelated to the service the insured contracted to provide? The Pennsylvania Superior Court recently addressed this question in Pennsylvania Manufacturers Indemnity Co. v. Pottstown Industrial Complex LP, No. 3489 EDA 2018, 2019 Pa. Super. 223, 2019 Pa. Super. LEXIS 729* (Pa. Super. 2019).
Pottstown Industrial Complex arose out of an underlying dispute between a landlord and a commercial tenant who had leased space to store its product inventory. The tenant alleged that the landlord was responsible under the lease for keeping the roof “in serviceable condition in repair.” Notwithstanding this responsibility, the tenant alleged that the landlord failed to properly maintain and repair the roof, resulting in leaks and flooding during four separate rainstorms, destroying over $700,000 in inventory. The tenant specifically alleged that the floods were caused by poor caulking of the roof, gaps and separations in the roofing membrane, undersized drain openings, and accumulated debris and clogged drains.
The insurer filed a declaratory judgment action, seeking a determination that there was no coverage under a commercial general liability policy issued to the landlord. Following a motion for judgment on the pleadings, the trial court entered an order in favor of the insurer, holding that allegations of inadequate roof repairs were claims for faulty workmanship and were not covered under Kvaerner Metals Division of Kvaerner U.S., Inc. v. Commercial Union Insurance Co., 908 A.2d 888 (Pa. 2006) and Millers Capital Insurance Co. v. Gambone Brothers Development Co., 941 A.2d 706 (Pa. Super. 2007).
Reprinted courtesy of
Anthony Miscioscia, White and Williams LLP and
Konrad Krebs, White and Williams LLP
Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com
Mr. Krebs may be contacted at krebsk@whiteandwilliams.com
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Don’t Put All Your Eggs in the Silent-Cyber Basket
August 07, 2022 —
William P. Sowers, Jr. & Michael S. Levine - Hunton Insurance Recovery BlogThe Eastern District of Pennsylvania recently gave another reminder why cyber insurance should be part of any comprehensive insurance portfolio. In Construction Financial Administration Services, LLC v. Federal Insurance Company, No. 19-0020 (E.D. Pa. June 9, 2022), the court rejected a policyholder’s attempt to find coverage under its professional liability insurance for a social engineering incident that defrauded over $1 million.
Construction Financial Administrative Services, which goes by CFAS, disburses funds to contractors. One of its clients, SWF Constructors, was hacked, and a bad actor posing as the client asked CFAS to distribute $600,000 to a sham third party. John Follmer, an executive at CFAS and the only person authorized to approve distribution of funds, approved it. The next day, the bad actor, again posing as the client, asked Follmer to transfer an additional $700,000. Follmer approved that distribution too.
Reprinted courtesy of
William P. Sowers, Jr., Hunton Andrews Kurth and
Michael S. Levine, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
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Merger to Create Massive Los Angeles Construction Firm
July 16, 2014 —
Beverley BevenFlorez-CDJ STAFFAECOM Technology Corp., a Los Angeles engineering and construction firm, has agreed to pay $4 billion to acquire URS Corp., their San Francisco competitor. According to the Sacramento Bee, “The combined company will employ about 95,000 people in 150 countries.”
AECOM is currently building the World Trade Center in New York, and previous projects include the Los Angeles Police Department headquarters, and renovations to the Port of Los Angeles and the Bradley international terminal at the Los Angeles International Airport, the Sacramento Bee reported. Furthermore, “URS has worked on the Garden Grove (22) Freeway reconstruction, the UCLA Ronald Reagan Medical Center, the Port of Long Beach, the Gold Line Eastside Extension in Los Angeles and the Disneyland resort expansion.”
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General Release of Contractor Upheld Despite Knowledge of Construction Defects
February 27, 2019 —
Garret Murai - California Construction Law BlogAh, the elusive Lepus Cornutus, commonly known as the Jackalope. Rarely seen, we may have one in SI 59 LLC v. Variel Warner Ventures, LLC, Court of Appeals for the Second District, Case No. B285086 (November 15, 2018), an interesting case involving a developer, a contractor, a general release, and Civil Code section 1688.
SI 59 LLC v. Variel Warner Ventures, LLC
In 2005, Variel Warner Ventures, LLC (Variel Warner) entered into a construction contract with Verdugo Management & Investment, Inc. (Verdugo) to construct improvements at an 85 unit apartment complex. Under the terms of the contract, Verdugo agreed to construction the improvements in a good and workmanlike manner in strict compliance with all drawings and specifications and to comply with all laws. It didn’t. The work was defectively flashed, counterflashed, and waterproofed.
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Garret Murai, Wendel RosenMr. Murai may be contacted at
gmurai@wendel.com
Drone Use On Construction Projects
June 05, 2023 —
Brent N. Mackay - ConsensusDocsThe use of drones, or small unmanned aircraft systems (“UAS”), has become common throughout the construction industry in all phases of construction, including pre-construction, progress of the work, project closeout, and maintenance. This article examines the federal regulations related to drone use, as well as considerations for construction professionals related to state and local laws, project location, and weather issues.
Federal Regulations
Regardless of the state in which the project is located, companies and persons operating commercial drones must observe regulations promulgated by the Federal Aviation Administration (“FAA”), which has the exclusive authority to regulate aviation safety, airspace navigation, and air traffic control.
Reprinted courtesy of
Brent N. Mackay, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs)
Mr. Mackay may be contacted at bmackay@watttieder.com
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Open & Known Hazards Under the Kinsman Exception to Privette
February 15, 2018 —
Frances Ma & Lawrence S. Zucker II – Haight Brown & Bonesteel LLP Publications & InsightsGonzalez v. Mathis, 2018 WL 718528 confirms the difficulties a defendant will face when trying to overcome the Kinsman exception to the
Privette doctrine on a dispositive motion when dealing with an open and obvious hazard. There, a professional window washer fell off a roof while walking along a parapet wall constructed by the owner of a home.
The window washer filed suit against the homeowner and alleged three dangerous conditions on the roof: (1) the parapet wall forced those who needed to access a skylight to walk along an exposed two-foot ledge that lacked a safety railing; (2) dilapidated and slippery roof shingles; and (3) the lack of tie off points that would allow maintenance workers to secure themselves with ropes or harnesses. The homeowner filed a motion for summary judgment under
Privette v. Superior Court (1993) 5 Cal.4th 689 and its progeny which prohibits an independent contractor from suing his or her hirer for workplace injuries (
“Privette doctrine”).
There are two exceptions to the
Privette doctrine. First, a hirer cannot avoid liability when he or she exercises control over the manner and means in which a contractor does his or her work and that control contributes to the injuries sustained – known as the
“Hooker exception” (premised on the holding of
Hooker v. Department of Transportation (2002) 27 Cal.4th 198). Second, a hirer may be found liable if he or she fails to warn the contractor of a concealed hazard on the premises – known as the
“Kinsman exception” (premised on the holding of
Kinsman v. Unocal Corp. (2005)).
Reprinted courtesy of
Frances Ma, Haight Brown & Bonesteel LLP and
Lawrence S. Zucker II, Haight Brown & Bonesteel LLP
Ms. Ma may be contacted at fma@hbblaw.com
Mr. Zucker may be contacted at lzucker@hbblaw.com
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Employee Handbooks—Your First Line of Defense
April 15, 2015 —
Craig Martin – Construction Contractor AdvisorThis spring has been busy with questions about employee handbooks. Perhaps it is because the NLRB just issued a directive on the legality of various clauses usually contained in handbooks. Or perhaps it’s because employers, including construction companies, are realizing the importance that handbooks play in defending against claims of harassment.
Employee Handbooks Are Important
Employee handbooks are an employer’s first line of defense in claims of harassment. A key provision to any employee handbook is an anti-harassment provision that includes:
- A definition of harassment;
- The process to complain about harassment;
- A commitment to investigate all claims of harassment; and
- An assurance that no one will be retaliated against for reporting harassment.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com