Construction Defect Claims Not Covered
May 10, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe court found that the insured's negligent acts causing damage to only the structure of the home it built were not covered under the CGL policy. Westfield Ins. Co. v. Zaremba Builders II LLC, 2022 U.S. Dist. LEXIS 36189 (N.D. Ill. March 2, 2022).
Zaremba contracted to build a house for the Vrdolyak Trust. After completion of the home, the occupants found many problems, including painting defects such as bubbling and peeling, leaving the basement full of water for months, causing damage to ductwork, framing and piping in the house, etc. The Trust sued and Westfield denied a defense.
Westfield filed a declaratory judgment action for a ruling that it had no duty to defend or indemnify. On Westfield's motion for summary judgment, the court determined there was no property damage. Property damage included "physical injury to tangible property." When the alleged damage occurred in the course of a construction project, tangible property had to be property outside the scope of the contract for project.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
The Association of Southern California Defense Counsel (ASCDC) and the Construction Defect Claims Managers Association (CDMA) Annual Construction Defect Seminar
December 04, 2013 —
CDJ STAFF
The Association of Southern California Defense Counsel (ASCDC) and the Construction Defect Claims Managers Association (CDMA) Jointly Present the 2013 Construction Defect Seminar and Holiday Party to be Held Thursday, December 5, at the Hilton Hotel, Costa Mesa
Professional development activities will include panel discussions including “What Happened to Simple HOA Actions – Litigating Commercial Projects,” a roundtable discussion by Ross Hart, Keith Koeller, Alex Robertson, Les Robertson, Todd Schweitzer, Wendy Wilcox, and Brian D. Kahn. A timely discussion of California’s “right to repair” laws “SB800 – Is It Still Worth Fighting For?,” will be presented by Nick Cammarota, Timothy Earl, Luke Ryan, Dave Simons, Dave Stern, John Terry, and Adrienne Cohen is also on the the agenda.. Additionally, Assemblyman Donald P. Wagner will serve as the event’s Special Guest Speaker.
Bert L. Howe & Associates, Inc. is pleased to return this year as an event sponsor. BHA will be exhibiting our latest inspection data collection system and forensic analysis platforms newly optimized for the new iOS 7. Visitors of the BHA exhibit booth can enter into our drawing for a 16 GB iPad Air with WiFi.
Professional development activities will be followed by a holiday party and reception honoring the Orange County Judiciary. The reception will be hosted by Glenn Barger, Adrienne Cohen, and Brian Kahn. It will place from 5:30 p.m. through 7.00 p.m.
For further information for the event, please visit http://www.ascdc.org/Events.asp.
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Construction Problems May Delay Bay Bridge
May 10, 2013 —
CDJ STAFFFaulty bolts could lead to a delay in the opening of the Bay Bridge. Caltrans noticed problems with bolts and found that the bolts had cracked. Of the 98 bolts already tightened, 30 have failed. According to the San Francisco Chronicle, workers will be tightening all 288 bolts and then testing them. According to Tony Anziano, Caltrans’s toll bridge program manager, repairs could take one or two months. Mr. Anziano noted that the manufacturer might be responsible for part of the expense, but that the budget for the bridge also has funds set aside for unanticipated repairs.
The bolts were supplied by Dyson, an Ohio company, but it was clear whether Dyson manufactured the bolts or simply marketed them.
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Construction Project Bankruptcy Law
February 05, 2014 —
Beverley BevenFlorez-CDJ STAFFGarret Murai, on the California Construction Law Blog, discusses the ins and outs of bankruptcy in construction projects. Murai discusses “bankruptcy basics” and answers questions regarding filing for project owners, general contractors, and subcontractors.
Murai explained the importance of learning about how bankruptcy affects construction projects: “Bankruptcy on a construction project is one of the biggest fears for owners and contractors. At best it can slow down a project and at worst it can cause a domino effect of bankruptcies as contractors and suppliers aren’t paid, causing the entire project to fail.”
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EEOC Chair Issues New Report “Building for the Future: Advancing Equal Employment Opportunity in the Construction Industry”
June 05, 2023 —
The U.S. Equal Employment Opportunity CommissionWASHINGTON – The U.S. Equal Employment Opportunity Commission (EEOC) Chair Charlotte A. Burrows issued a report today titled, “
Building For The Future: Advancing Equal Employment Opportunity in the Construction Industry.” The report provides findings and next steps based on the agency’s enforcement experience, witness testimony presented at the EEOC’s
May 2022 hearing on discrimination and harassment in construction and other Commission hearings, and academic research.
“The recent historic federal infrastructure investments provide a once-in-a-generation opportunity to break down barriers and expand opportunity in the construction industry,” said EEOC Chair Charlotte A. Burrows. “While discrimination has long been an issue in the industry, we can decide the future. I look forward to working with industry leaders, employers, and unions to help ensure safe and inclusive workplaces for all workers.”
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Yellen Has Scant Power to Relieve U.S. Housing Slowdown
June 11, 2014 —
Rich Miller and Victoria Stilwell - BloombergThe hesitant housing recovery has surprised and concerned Federal Reserve Chair Janet Yellen and her colleagues at the central bank. It’s not clear how much they can do about it.
While the industry is rebounding from a weather-ravaged first quarter, the pickup will probably fall short of previous projections, according to economists at Goldman Sachs Group Inc. of New York and Macroeconomic Advisers LLC in St. Louis. As a result, they trimmed their forecasts for economic growth in the second half of 2014 to about 3.25 percent from 3.5 percent.
“Housing is a growing worry,” said Macroeconomic Advisers’ senior economist Ben Herzon.
Mr. Miller may be contacted at rmiller28@bloomberg.net; Ms. Stilwell may be contacted at vstilwell1@bloomberg.net
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Rich Miller and Victoria Stilwell, Bloomberg
Not so Fast – Florida’s Legislature Overrules Gindel’s Pre-Suit Notice/Tolling Decision Related to the Construction Defect Statute of Repose
May 11, 2020 —
Rahul Gogineni - The Subrogation StrategistAs discussed in a prior blog post, in Gindel v. Centex Homes, 2018 Fla.App. LEXIS 13019, Florida’s Fourth District Court of Appeal held that when the plaintiffs provided a pre-suit notice in compliance with §558.004 of Florida’s construction defect Right-to-Cure statute, Fla. Stat. §§ 558.001 to 558.005, et. seq., they commenced a “civil action or proceeding,” i.e. an “action,” within the meaning of Florida’s construction defect Statute of Repose, Florida Statue § 95.11(3)(c). Thus, the court held that the plaintiffs commenced their action prior to the time Florida’s 10-year statute of repose period ended. In overturning the lower court’s dismissal of the action, the court found that because the Right-to-Cure statute, §558 of the Florida Statutes, sets out a series of mandatory steps that must be taken prior to bringing a judicial action, filing pre-suit notice of claim sufficiently constituted an “action” for purposes of Florida’s Statute of Repose.
For various reasons, the parties appealed the decision to the Supreme Court of Florida. In July of 2019, before the Florida Supreme Court could decide whether to hear the case, the Florida legislature passed legislation that effectively overruled the decision. To overrule the decision, the Florida Legislature modified § 558.004 of Florida’s Right-to-Cure statute to expressly state that a notice of claim served pursuant to the Right-to-Cure statute does not toll the 10-year statute of repose period for construction claims. See Fla. Stat.
§ 558.004(d).
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Rahul Gogineni, White and Williams LLPMr. Gogineni may be contacted at
goginenir@whiteandwilliams.com
The Importance of Retrofitting Existing Construction to Meet Sustainability Standards
December 18, 2022 —
Chris Gray - Construction ExecutiveJust about every industry is looking for ways in which they can go “green,” with varying degrees of success. Historically, the real estate industry has underinvested in the infrastructure, even with government incentives and initiatives, buildings and construction continue to pollute our atmosphere and release excess amounts of carbon into the air.
As it stands, existing buildings are, and will continue to be, a main problem. Right now, the real estate sector is responsible for a whopping 40% of global carbon emissions, along with 70% of the world’s electricity, and while we must continue to prioritize new, sustainable buildings, that does not address the countless buildings that are already standing and producing mass amounts of carbon emissions detrimental to our earth’s environment.
It is predicted that 70% of the existing buildings across the world will still be standing by the year 2050, meaning these outdated, inefficient warehouses and office parks aren’t going anywhere. To address the real estate carbon footprint, the industry needs to use modern technological solutions to combat this massive issue and implement new technology that transforms dated buildings into high-value decarbonized assets.
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Chris Gray, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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