Property Damage to Non-Defective Work Is Covered
February 18, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe New Hampshire Supreme Court found some of the property damage evolving from the insured's portion of the work was covered under its liability policy. Cogswell Farm Condo. Ass'n v. Tower Group, Inc., 2015 N.H. LEXIS 3 (N.H. Jan. 13, 2015).
Lemery Building Company, Inc. constructed and developed 24 residential condominium units. After units were sold, the Cogswell Farm Condominium Association sued Lemery, asserting that the "weather barrier" components of the units were defectively constructed and resulted in damage to the units due to water leaks. Cogswell then sued its insurer, Tower Group, Inc., seeking a declaratory judgment that its claims against Lemery were covered.
The trial court eventually determined that exclusions J (1) and J (6) both applied to exclude coverage. Exclusion J (1) excluded coverage for "property damage" to property that Lemery "owns, rents, or occupies." Exclusion J (6) excluded coverage for property damage to "[t] hat particular part of any property that must be restored, repaired or replaced because [Lemery's] work was incorrectly performed on it."
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
#3 CDJ Topic: Underwriters of Interest Subscribing to Policy No. A15274001 v. ProBuilders Specialty Ins. Co., Case No. D066615
December 30, 2015 —
Beverley BevenFlorez-CDJ STAFFMichael R. Vellado and
Nicole R. Kardassakis of
Lewis Brisbois Bisgaard & Smith LLP analyzed the appeals case that “reversed the trial court’s entry of summary judgment in favor of ProBuilders Specialty Insurance Company (“ProBuilders”) and held that the ‘other insurance’ clause in the ProBuilders policy did not relieve it of its duty to participate in the defense of its insured, Pacific Trades Construction & Development, Inc. ('Pacific Trades')."
Read the full story...
Another discussion of the ProBuilders appeal ruling occurred on the
California Construction Law Blog, written by
Yas Omidi of
Wendel Rosen Black & Dean LLP. Omidi explained the appeal’s court decision: “In reversing the trial court’s decision, the appellate court characterized ProBuilder’s ‘other insurance’ clause as an ‘escape clause’—i.e., a clause that attempts to have coverage, paid for with the insured’s premiums, evaporate in the presence of other insurance.” Furthermore, she noted that “California public policy disfavors such clauses.”
Read the full story...
Read the court decisionRead the full story...Reprinted courtesy of
Are Construction Contract Limitation of Liability Clauses on the Way Out in Virginia?
March 11, 2024 —
Christopher G. Hill - Construction Law MusingsRemember BAE Systems and Fluor? This post is the third here at Construction Law Musings relating to this case which is a seemingly never-ending source for content. In the prior post discussing this case, the Court found that Va. Code 1-4.1:1 which bars waiver of a right to payment before work is performed did not apply because Fluor had provided work before execution of the contract or any change orders.
In the most recent opinion in this long-running litigation, and after a motion to reconsider by Fluor that was granted, the Court re-examined this finding along with the contractual language found in the Limitation of Damages (LOD) clause and came to the opposite conclusion regarding certain change orders that remained unpaid by BAE.
The Court first looked to the language of the contract itself and specifically the language in the LOD provision that states “Except as otherwise provided in this Subcontract.” The Court then looked at the change order provision and its typical equitable adjustment language and the mandatory nature of the equitable adjustment language. The Court found that the LOD provisions did not apply to change orders both because price increases due to change orders are not “damages” and because of the exception language in the LOD provision itself.
Read the court decisionRead the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Insurance Policies Broadly Defining “Suits” May Prompt an Insurer’s Duty to Defend and Indemnify During the Chapter 558 Pre-Suit Notice Process
May 30, 2018 —
Daniel Garcia - Gordon & Rees Construction Law BlogIn Altman Contractors, Inc. v. Crum & Forster Specialty Insurance Company, No. SC16-1420, 2017 WL 6379535 (Fla. Dec. 14, 2017), the Florida Supreme Court addressed whether the notice and repair process set forth in chapter 558, Florida Statutes, constitutes a “suit” within the meaning of a commercial liability policy issued by Crum & Forster Specialty Insurance Company (“C&F”) to Altman Contractors, Inc. (“Altman”). The Court found that because the chapter 558 pre-suit process is an “alternative dispute resolution proceeding” as included in the definition of “suit” in the policy by C&F to Altman, C&F had a duty to defend Altman during the chapter 558 process, prior to the filing of a formal lawsuit.
Chapter 558, titled “Construction Defects,” sets forth procedural requirements before a claimant may file a construction defect action. It requires a claimant to serve a written notice of claim on the applicable contractor, subcontractor, supplier, and/or design professional prior to filing a construction defect lawsuit. The legislature intended for Chapter 558 to be an alternative dispute resolution mechanism in certain construction defect matters allowing an opportunity to resolve the claim without further legal process.
Read the court decisionRead the full story...Reprinted courtesy of
Daniel Garcia, Gordon & Rees Scully MansukhaniMr. Garcia may be contacted at
daniel.garcia@grsm.com
What You Need to Know About CARB’s In-Use Off-Road Diesel Regulations
May 20, 2024 —
Garret Murai - California Construction Law BlogIn November 2022, the California Air Resources Board (CARB) approved amendments to . . . wait for it . . . its “In-Use Off-Road Diesel-Fueled Fleet” regulations – that enough hyphens for you – which took effect on January 1, 2024. The purpose of the regulations is to reduce emissions from off-road equipment, many of which are used by construction contractors, such as forklifts, bulldozers, cranes and excavators.
Are these new regulations?
Yes and no. CARB has regulated in-use off-road diesel-fueled vehicles since 2008 and has periodically amended these regulations. The most recent amendments take effect on January 1, 2024.
What vehicles do the regulations apply to?
The regulations apply to two classes of vehicles (1) self-propelled off-road diesel-fueled vehicles of 25 horsepower (hp) or more; and (2) two-engine vehicles other than on-road two-engine sweepers. The regulations apply to both owned as well as rented and leased vehicles. As used in this article, the term “vehicle(s)” refers to these two classes of vehicles.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Building the Secondary Market for Reclaimed Building Materials
August 30, 2021 —
Christopher G. Hill - Construction Law MusingsFor this week’s guest post Friday, Musings welcomes Mark Rabkin of Deconstruction Management, Inc., the first, dedicated, for-profit deconstruction management firm in the country. Based in Northeast Ohio, it through all stages of building removal from property acquisition to deconstruction to recycling and architectural salvage.
With 10 years of professional experience as an independent risk advisor focusing on sustainable real estate and development, Mark counsels his clients on effective strategies to reduce hazards and mitigate losses. Mark oversees the marketing and administrative functions of Deconstruction Management, Inc. and is responsible for managing the architectural salvage and the upcycled material reuse and resale side of the business.
Mark is a leader in the advocacy of sustainable building strategies both locally and nationally. Mark serves as the volunteer Director of Advocacy for the Northeast Ohio Chapter of the United States Green Building Council. He is also an active contributor on many of the chapter’s strategic implementation teams. Mark is a member of Entrepreneurs for Sustainability, the Council of Smaller Enterprises’ Sustainability Task Force and is an active participant in the Sustainable Cleveland 2019 Initiative.
Read the court decisionRead the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Colorado’s Federal District Court Finds Carriers Have Joint and Several Defense Duties
July 31, 2013 —
Tred Eyerly, Insurance Law HawaiiAn issue that has plagued builders in Colorado construction defect litigation is the difficulty of getting additional insured carriers to fully participate in the builder’s defense, oftentimes leaving the builder to fund its own defense during the course of the litigation.
Many additional insurers offer a variety of positions regarding why they will not pay for fees and costs during the course of a lawsuit. Some insurers argue that, until after trial, it is impossible to determine its proper share of the defense, and therefore cannot make any payments until the liability is determined as to all of the potentially contributing policies. (This is often referred to as the “defense follows indemnity” approach.) Others may make an opening contribution to defense fees and costs, but fall silent as fees and costs accumulate. In such an event, the builder may be forced to fund all or part of its own defense, while the uncooperative additional insured carrier waits for the end of the lawsuit or is faced with other legal action before it makes other contributions.
Recent orders in two, currently ongoing, U.S. District Court cases provide clarity on the duty to defend in Colorado, holding that multiple insurers’ duty to defend is joint and several. The insured does not have to go without a defense while the various insurers argue amongst themselves as to which insurer pays what share.
Read the court decisionRead the full story...Reprinted courtesy of
Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
You Are Not A “Liar” Simply Because You Amend Your Complaint
March 14, 2022 —
David Adelstein - Florida Construction Legal UpdatesIn litigation, it is common for a plaintiff to amend their complaint. They may amend to add additional parties. To add new claims. To change the factual allegations. Or, to change the theme of their case.
Most of the time, complaints are not verified by the plaintiff. Instead, complaints are drafted and signed by the plaintiff’s counsel.
A question becomes: how prior reiterations of a complaint can be used against the plaintiff to show they are a bunch of “liars” by making amendments to their complaint. Sounds prejudicial to the plaintiff, right? Particularly if there is a jury.
The reality is that amending complaints for various reasons is routine. Doing so does NOT make the plaintiff a liar and is not a vehicle that a defendant should use to create this inference. A defendant that tries to do so simply wants to detract from the substantive facts and issues.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com