Construction Defects and Warranties in Maryland
November 27, 2013 —
CDJ STAFFNicholas D. Cowie, a partner with Cowie & Mott, P.A., has started a blog focusing on construction defect claims in Maryland condominium complexes. In his first post, he writes about the statutory remedies in Maryland law for condominium owners. He notes that “four separate statutory warranties apply to the sale of condominiums.”
He further discusses the varying duration of these warranties and when they come into effect, saying that “associations and unit owners are often incorrectly informed that their construction defect-related problems (such as leaks around windows) are ‘out of warranty’ because the problems did not occur during the warranty period.”
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Sometimes you Need to Consider the Coblentz Agreement
January 19, 2017 —
David Adelstein – Florida Construction Legal UpdatesSince insurance, particularly liability insurance, is such an important component when it comes a construction project, understanding certain nuances such as a
Coblentz Agreement (a what kind of agreement agreement?!?—keep reading) becomes helpful.
If there is a construction defect claim / lawsuit, the implicated parties (e.g., contractor, design professional, subcontractor, sub-consultants) are going to tender the claim / lawsuit to their respective liability insurer. This is what they should be doing – notifying the insurer so that the insurer can defend them from the claim / lawsuit and indemnify them from covered damages associated with the claim / lawsuit.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
First Circuit Rejects Insurer’s “Insupportable” Duty-to-Cooperate Defense in Arson Coverage Suit
October 24, 2023 —
Geoffrey B. Fehling & Yaniel Abreu - Hunton Insurance Recovery BlogIn
Philadelphia Indemnity Insurance Co. v. BAS Holding Corp., the Court of Appeals for the First Circuit rejected an insurer’s “insupportable” defense that the insured company had breached its duty to cooperate by refusing the insurer’s request for an examination under oath of the company’s president. The decision is a reminder that, while examinations under oath can be effective tools to allow the insurer to properly investigate a claim, an insured’s duty to cooperate is not boundless and does not demand attendance at examinations that are not reasonably requested.
Background
BAS Holding involves the destruction of a landmark building in Boston by an arsonist. The owner, BAS Holding Corporation, submitted an insurance claim to its property insurer to recover insurance proceeds for the damage to the building. The insurer investigated the claim to determine whether the damage to the building was covered and issued a reservation of rights letter suggesting that the policy may not provide coverage for the fire. As part of its investigation, the insurer requested an examination under oath as a condition to coverage under the policy, which led to BAS presenting the property’s operations coordinator for an interview. Shortly after examining the operations coordinator, the insurer sought another examination of BAS’s president and owner, as well as five other employees. In response, BAS questioned whether the additional examinations were “reasonably required” and said that it would consider the requests if the insurer could explain why they were necessary.
Reprinted courtesy of
Geoffrey B. Fehling, Hunton Andrews Kurth and
Yaniel Abreu, Hunton Andrews Kurth
Mr. Fehling may be contacted at gfehling@HuntonAK.com
Mr. Abreu may be contacted at yabreu@HuntonAK.com
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Pennsylvania Federal Court Confirms: Construction Defect Claims Not Covered by CGL Policies
March 06, 2022 —
Nathan A. Cazier & Scott S. Thomas - Payne & FearsThe construction industry operates under the constant spectre of claims seeking damages for defective or faulty workmanship. Fortunately, the law in most states treats these claims as covered under commercial general liability (“CGL”) policies. A small minority of states take a much stingier view. In a newly decided case, a Pennsylvania federal court confirmed that Pennsylvania belongs to this small group of states that regard construction claims as not worthy of liability insurance coverage. Main St. Am. Assurance Co. v. Howard Lynch Plastering, Inc., No. CV 21-3977, 2022 WL 445768, (E.D. Pa. Feb. 14, 2022).
Main St. involves a typical construction defect case: W.B. Homes (“W.B.”) developed a residential community, contracting with various trades to build the homes. W.B. required these subcontractors to obtain liability insurance covering their work and, when homeowners sued W.B. for damages due to allegedly faulty work, W.B. tendered the claim to these insurers. One of them, Main Street Assurance Co. (“Main Street”) then sued W.B. for declaratory relief, arguing that under Pennsylvania law, it had no duty to defend W.B.
Reprinted courtesy of
Nathan A. Cazier, Payne & Fears and
Scott S. Thomas, Payne & Fears
Mr. Cazier may be contacted at nac@paynefears.com
Mr. Thomas may be contacted at sst@paynefears.com
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No Collapse Coverage Where Policy's Collapse Provisions Deleted
July 26, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court found there was no coverage for the homeowners' collapse claim because the collapse provisions were deleted from the policy. Gueng-Ho Kim v. State Farm Fire & Cas. Co., 2017 U.S. Dist. LEXIS 97871 (D. Conn. June 26, 2017).
The homeowners purchased their home in 2004. They also purchased a homeowners policy from State Farm. In the policy, State Farm deleted the additional coverage for collapse.Also deleted from the policy was language excluding coverage for "collapse, except as specifically provided in Section I - Additional Coverages, Collapse."
The homeowners discovered a problem with the property's foundation when they attempted to sell the house in 2014. The homeowners hired an engineer who found that the interior and exterior foundation had numerous spider-web cracks and the foundation walls in several locations bowed inward by as much as one and a half inches.
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Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
A Court-Side Seat: Permit Shields, Hurricane Harvey and the Decriminalization of “Incidental Taking”
May 31, 2021 —
Anthony B. Cavender - Gravel2GavelThis is a brief review of some of the significant environmental (and administrative law decisions) released the past few weeks.
THE U.S. SUPREME COURT
On April 22, 2021, the Court decided two important administrative law cases: Carr, et al. v. Saul and AMG Capital Management v. Federal Trade Commission.
Carr, et al. v. Saul
In this case, the constitutionality of Social Security Administrative Law Judges (ALJs) hearing disability claims disputes was at issue. More precisely, were these ALJs selected in conformance with the Appointments Clause of the Constitution? A similar issue was litigated in the case of Lucia v. Securities and Exchange Commission. There, the Court held that many of the agency’s ALJs were not selected in conformance with the Appointment’s Clause. Here, the Court held that this issue could be decided by the courts without compelling the litigants to first exhaust their administrative remedies. Thousands of ALJs are employed by the federal government, and it may take some time to resolve this question for every agency.
AMG Capital Management v. Federal Trade Commission
In this case, the court held, unanimously, that the Commission does not presently have the authority to employ such equitable remedies as restitution or disgorgement.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
What Counts as Adequate Opportunity to Cure?
June 13, 2022 —
Christopher G. Hill - Construction Law Musingsqimono @ PixabayHere at Musings, we like to discuss (likely more than readers would like) the fact that in Virginia, the contract is king and its terms will be looked at carefully by the courts. One of those provisions that will be looked at carefully is the so-called “cure period.” The “cure period” is the time that a subcontractor has to fix any non-compliant construction after receiving notice of any deviation from the contract documents that must be fixed.
In United States ex rel Allan Myers VA, Inc. v. Ocean Construction Services, Inc. the federal court for the Eastern District of Virginia examined what it means to grant a proper opportunity to cure. The Ocean Construction Services case arises from a contractual dispute between Allan Myers VA Inc. and Ocean Construction Services Inc., or OCS, involving renovation work performed in sections of Arlington National Cemetery. Presently before the court is Myers’ motion for partial summary judgment, arguing that the undisputed facts demonstrate that it was not provided with a three-day cure period, a contractual prerequisite to OCS terminating the subcontract for default.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
The Construction Lawyer as Problem Solver
October 21, 2015 —
Christopher G. Hill – Construction Law MusingsAs a construction attorney here in Virginia I “wear many hats.” Counselor, mediator, adviser, risk manager, litigator, and others depending upon the situation. I take each and every one of these roles seriously and at times take on more than one depending on a client’s situation. One “role” that I try to keep in mind every day when I come to work is that of problem solver.
In response to the various attacks on an attorney’s role in the construction world, I have written that your friendly neighborhood construction lawyer can and should be part of the solution, and not part of the problem. A big part of this in my mind is the need to focus on the fact that any construction dispute is a problem to be solved, preferably earlier rather than later. By the time that a construction matter reaches my desk, the parties to that dispute have likely reached some sort of impasse in need of an efficient solution.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com