CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Florida Supreme Court: Notice of Right to Repair is a CGL “Suit,” SDV Amicus Brief Supports Decision

January 10, 2018 — Gregory Podolak & Brian Clifford - SD&V Case Alert
Construction policyholders in Florida have been given substantial ammunition to compel general liability insurers to provide a defense against pre-suit accusations of defective work. Florida is one of approximately thirty (30) states that require property owners to serve contractors with notice and an opportunity to repair construction defects before filing suit. Only a few states have addressed whether a CGL policy should provide a defense for similar processes. Altman Contractors, Inc. v. Crum & Forster Specialty Ins. Co., decided late in December by the Florida Supreme Court, acknowledged that the 558 process is a “suit,” thus impeding insurers from refusing a defense during this notice period. Section 558.004(1), Florida Statutes (2012) requires a property owner alleging construction defects to serve a written notice to repair on the contractor before filing an action in court. Altman Contractors built a condominium in Broward County, Florida. In 2012, the condominium owners alleged defects in accordance with Section 558. Altman demanded that its general liability carrier, Crum & Forster, defend and indemnify it against the 558 notices. Crum & Forster denied coverage, claiming that 558 notices are not a “suit” as defined by the policy. Reprinted courtesy of Gregory Podolak, Saxe Doernberger & Vita, P.C. and Brian Clifford, Saxe Doernberger & Vita, P.C. Mr. Podolak may be contacted at gdp@sdvlaw.com Mr. Clifford may be contacted at bjc@sdvlaw.com Read the court decision
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The Privilege Is All Mine: California Appellate Court Finds Law Firm Holds Attorney Work Product Privilege Applicable to Documents Created by Formerly Employed Attorney

June 29, 2017 — David W. Evans & Stephen J. Squillario – Haight Brown & Bonesteel LLP
In Tucker Ellis LLP v. Superior Court (A148956 – Filed 6/21/2017), the First Appellate District held that (1) the holder of the attorney work product privilege is the employer law firm rather than the former employee attorney who created the privileged documents while a firm employee, and (2) as a result, the firm did not owe a duty to obtain the former attorney’s permission before disclosing the subject documents to third parties. In Tucker Ellis LLP, the attorney, while still employed by Tucker Ellis, exchanged a series of e-mails with a consultant retained by the firm to assist in asbestos litigation for a client. The firm also entered into an agreement with the consultant to summarize scientific studies on the causes of mesothelioma in a published review article. After the attorney departed the firm, Tucker Ellis was served with a subpoena in connection with a matter pending in Kentucky for the production of communications with the consultant regarding the article. In response, Tucker Ellis, in relevant part, produced the work product e-mails authored by the former attorney. The e-mails eventually ended up on the Internet and reached over 50 asbestos plaintiffs’ attorneys, resulting in the attorney’s termination from his new firm. After Tucker Ellis ignored the attorney’s “claw-back” letter, he filed suit against the firm for negligence, among other causes of action. The trial court granted the former attorney’s motion for summary adjudication on the issue of duty, reasoning that the firm owed the attorney a legal duty to prevent the disclosure of the work product. Tucker Ellis filed a petition for a writ of mandate with the Court of Appeal challenging the trial court’s decision on the duty issue. Reprinted courtesy of David W. Evans, Haight Brown & Bonesteel LLP and Stephen J. Squillario, Haight Brown & Bonesteel LLP Mr. Evans may be contacted at devans@hbblaw.com Mr. Squillario may be contacted at ssquillario@hbblaw.com Read the court decision
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Europe’s Satellites Could Help Catch the Next Climate Disaster

February 15, 2021 — Jonathan Tirone - Bloomberg
Spain began the new year battling Storm Filomena, a once-in-a-generation weather event that blanketed Madrid in snow and paralyzed the economy. Health workers were stranded, supermarkets shut, and the army was called in. At least four people died. “Now, consider a government or company that knew two weeks ago there was a risk that this would happen,” said Francisco Doblas-Reyes, a physicist at Barcelona’s Supercomputing Center. “Knowing the risk that a 1-in-20-year event was going to happen would have given more possibilities to prepare.” Doblas-Reyes and his team are working on complex models that they hope can better detect the next Filomena, a job that’s become increasingly important as climate change makes weather more unpredictable — and extreme. The data collected by European satellites is at the heart of the continent’s multibillion-euro Destination Earth program seeking to develop the world’s best digital simulation of Earth. Read the court decision
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Reprinted courtesy of Jonathan Tirone, Bloomberg

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St. Mary & St. John Coptic Orthodox Church v. SBS Insurance Services, Inc.

January 18, 2021 — Michael Velladao - Lewis Brisbois
In St. Mary & St. John Coptic Orthodox Church v. SBS Insurance Services, Inc., ----Cal.App.5th--- (November 23, 2020), the California First District Court of Appeal reversed the trial court's entry of judgment in favor of SBC Insurance Services ("SBC") regarding a claim for water damage sustained by a residence owned by St. Mary & John Coptic Church ("St. Mary") under property coverage afforded by a policy issued by Philadelphia Indemnity Insurance Company ("Philadelphia"). The policy was procured by SBC on behalf of St. Mary. Philadelphia denied coverage of the claim based on the vacancy exclusion in its policy, but entered into a settlement and loan receipt agreement, whereby St. Mary gave Philadelphia the right to control litigation in St. Mary’s name against SBC or third parties who might be liable for the loss in exchange for a loan of money to repair and remediate the damage sustained by the residence. The loan was to be repaid out of any recovery made against SBC or third parties. After a bench trial, the trial court found in favor of SBC and held that the vacancy exclusion was ambiguous. Essentially, the exclusion did not apply to the time period prior to the time St. Mary purchased the residence, such that the 60-day vacancy requirement could not be satisfied. The trial court reasoned that since St. Mary did not have an insurable interest in the property before it purchased the property, the 60-day requirement did not include the period before such residence was purchased and St. Mary held an insurable interest. The parties’ dispute arose of out of the Pope of the Coptic Church requesting St. Mary to purchase a home to be used as his papal residence in the Western United States. St. Mary also intended to use the home as a residence for visiting bishops. The home was purchased on May 28, 2015. As part of the purchase, SBC placed the home under St. Mary’s commercial policy, rather than purchasing a separate homeowner’s policy for the residence. Subsequently, the home sustained water damage due to a broken pipe. The water damage was discovered on July 24, 2015, 57 days after the inception of the Philadelphia policy and the loss. St. Mary tendered the property loss to Philadelphia, which denied coverage of the claim based on the reasoning that the home had been vacant for 60 consecutive days prior to the loss. Subsequently, St. Mary filed suit against SBC after securing the loan receipt agreement with Philadelphia based on the argument that the vacancy exclusion barred coverage of the claim and SBC breached its duty of care by not securing the proper coverage of the home. The trial court entered judgment in favor of SBC finding that the vacancy exclusion did not apply to bar coverage of the loss, such that SBC did not breach its duty of care owed to St. Mary as its broker. Read the court decision
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Reprinted courtesy of Michael Velladao, Lewis Brisbois
Mr. Velladao may be contacted at Michael.Velladao@lewisbrisbois.com

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Homeowner’s Policy Excludes Coverage for Loss Caused by Chinese Drywall

November 18, 2011 — Tred R. Eyerly - Insurance Law Hawaii

Exclusions barred the homeowners from recovering for losses caused by Chinese drywall in their home. Ross v. C. Adams Const. & Design, L.L.C., 2011 La. App. LEXIS 769 (La. Ct. App., released for publication Oct. 5, 2011).

Two years after purchasing their home, the Rosses began experiencing chronic malfunctions in the heating, ventilation and air conditioning system. After discovering the presence of gypsum drywall, or "Chinese drywall", they submitted a claim to their insurer, Louisiana Citizens Property Insurance Company, for damages caused by the Chinese drywall. Louisiana Citizens denied the claim.

The Rosses sued. The trial court granted summary judgment to Louisiana Citizens based upon exclusions in the policy.

On appeal, the appellate court first agreed the Rosses had sustained a direct physical loss. The inherent qualities of the Chinese drywall created a physical loss to the home and the drywall had to be removed and replaced.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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Ackman Group Pays $91.5 Million for Condo at NYC’s One57

April 15, 2015 — David M. Levitt and Oshrat Carmiel – Bloomberg
A group including billionaire investor Bill Ackman paid $91.5 million for a duplex penthouse at Extell Development Co.’s One57 condominium tower, one of New York City’s most expensive home purchases ever. The purchase of unit 75 in the luxury skyscraper overlooking Central Park closed on March 27, according to property records filed Thursday. The buyer was listed as 57157 Co. LLC, a single-purpose entity that Ackman controls. The 13,554-square-foot (1,259-square-meter), six-bedroom home spans the 75th and 76th floors of the 90-story skyscraper. Ackman last year told the New York Times it was “the Mona Lisa of apartments.” Monthly common charges on the unit were estimated at $23,595, according to documents Extell filed with the state attorney general’s office. Reprinted courtesy of David M. Levitt, Bloomberg and Oshrat Carmiel, Bloomberg Read the court decision
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Lasso Needed to Complete Vegas Hotel Implosion

February 18, 2015 — Beverley BevenFlorez-CDJ STAFF
The Miami Herald reported that “demolition workers used an Old West method on Tuesday to finish an incomplete casino implosion in Las Vegas.” The Clarion Hotel and Casino owner Lorenzo Doumani told the Miami Herald that “[t]hey lassoed the building with steel cables, got a crane, and pulled and pulled and pulled.” Burke Construction used a 2-ton explosive punch to bring the structure down, however, the concrete building dropped four stories but remained upright. Burke Construction’s corporate safety coordinator, Anthony Schlect, told the Miami Herald that he was investigating the incident. Read the court decision
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CA Homeowners Challenging Alternate Pre-Litigation Procedures

April 15, 2014 — Beverley BevenFlorez-CDJ STAFF
Garret Murai on his California Construction Law blog discussed how some homeowners have challenged homebuilders who use alternative pre-litigation procedures instead of the rules of California’s Right to Repair Act (SB 800). “The Right to Repair Act, which was intended to help curb the then rising tide of residential construction defect litigation, provides mandatory pre-litigation procedures which must be followed in construction defect cases involving new residential construction,” Murai explained. “One of the major exceptions to the statutory pre-litigation procedures under SB 800, however, is that a homebuilder can opt to use its own alternative pre-litigation procedures if disclosed to a homebuyer.” Murai used The McCaffrey Group, Inc. v. Superior Court case to demonstrate that homeowners can challenge the builder’s use of alternative pre-litigation procedures, and win if they can prove that the alternate procedures are “unconscionable.” “For homebuilders, the take away is that, sure you can adopt your own alternative pre-litigation procedures under the Right to Repair,” Murai stated, “but if you do just know that they may be challenged by homeowners who may contend that they are unconscionable, which kinda defeats the whole idea behind SB 800 which was intended to reduce the amount of litigation the first place.” Read the court decision
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