WSHB Secures Victory in Construction Defect Case: Contractor Wins Bench Trial
October 01, 2024 —
Wood Smith Henning & BermanWood Smith Henning & Berman is pleased to announce a significant victory in a bench trial led by trial attorney
Thomas Fama. The case, which had been pending for nearly five years due to pandemic-related delays and unreasonable demands by the plaintiff, concluded with a resounding judgment in favor of the defendant.
"The result of this trial is a testament to our team's unwavering tenacity and strategic focus throughout the entire process," stated WSHB partner Tom Fama, lead counsel in the case. "We kept our eye on the proverbial ball and diligently worked to expose the lack of evidence supporting the plaintiff's claims."
The matter involved allegations of defective installation of a solar energy system, which the plaintiff claimed leaked during inclement weather. Fama and his team successfully demonstrated that the plaintiff's claims lacked substance, highlighting numerous pre-existing conditions on the roof that could have been responsible for the problem.
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Wood Smith Henning & Berman
Claimants’ Demand for Superfluous Wording In Release Does Not Excuse Insurer’s Failure to Accept Policy Limit Offer Within Time Specified
September 15, 2016 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Barickman v. Mercury Casualty Co. (No. B260833, filed 7/25/16, ord. pub. 8/15/16) a California appeals court affirmed a $3 million bad faith award against Mercury Casualty Co. based upon its failure to accept a policy limit demand within the time provided, finding that wording inserted by the claimants’ counsel into the release did not affect the insured’s rights such that the refusal to agree to the wording was unreasonable and in bad faith, exposing the insurer to liability for the insured’s stipulated judgment.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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California Court Broadly Interprets Insurance Policy’s “Liability Arising Out of” Language
December 20, 2017 —
Garret Murai - California Construction Law BlogIn McMillin Mgmt. Servs. v. Financial Pacific Ins. Co., Cal.Ct.App. (4th Dist.), Docket No. D069814 (filed 11/14/17), the California Court of Appeal held that the term “liability arising out of,” as used in an ongoing operations endorsement, does not require that the named insured’s liability arise while it is performing work on a construction project.
In the McMillin case, the general contractor and developer (McMillin) contracted with various subcontractors, including a concrete subcontractor and stucco subcontractor insured by Lexington Insurance Company. Both subcontractors performed their work at the project prior to the sale of the units.
The Lexington policies contained substantively identical additional insured endorsements that provided coverage to McMillin “for liability arising out of your [the named insured subcontractor’s] ongoing operations performed for [McMillin].” Several homeowners filed suit against McMillin, alleging that they had discovered various defective conditions arising out of the construction of their homes, including defects arising out of the work performed by Lexington’s insureds. Lexington argued that there was no potential for coverage in McMillin’s favor under the endorsements because there were no homeowners during the time that the subcontractors’ operations were performing work at the project (the homes closed escrow after the subcontractors had completed their work); thus, McMillin did not have any liability for property damage that took place while the subcontractors’ operations were ongoing.
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Garret Murai, Wendel Rose Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Six Reasons to Use Regular UAV Surveys on Every Construction Project
October 14, 2019 —
Dustin Price - Construction ExecutiveUAVs are the future of the construction industry. From accurate 3D modeling simulations to regular safety and maintenance checks, UAVs can improve construction projects in many ways—and the value and applications for UAVs is consistently growing. Drones are agile, cost-effective and safe.
Here are some reasons why UAV surveys should be part of any construction project.
1. UAV scans are much faster than human inspections
Drones can cover large territory much faster than human inspectors can. They can also be used over more difficult terrain, and they can survey areas that are otherwise inaccessible. A drone survey can be completed in a day; not only does this mean that the territory is well-surveyed each time, but it also means surveys can be done more frequently.
Construction projects need to be inspected regularly and on time if the project is to meet its deadlines. Delayed construction projects can cost a company millions of dollars, as construction projects need to be completed stage by stage, usually on a strict timeline. Drones will improve the consistency of the project and, in turn, this will improve the reputation of the company itself.
Reprinted courtesy of
Dustin Price, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Law Firm Fails to Survive Insurer's and Agent's Motions to Dismiss
May 08, 2023 —
Tred R. Eyerly - Insurance Law HawaiiInterpreting New Jersey law, the federal district court dismissed without prejudice the law firm's complaint against its insurer and agent. Law Office of Drew J. Bauman v. Hanover Ins. Co., 2023 U.S. Dist. LEXIS 31844 (D. N. J. Feb. 27, 2023).
The law firm had a professional liability policy issued by Hanover. The law firm was sued in the underlying case involving a real estate transaction. The law firm tendered the defense and indemnity of the underlying complaint, but coverage was denied. The law firm sued, contending Hanover breached the policy by refusing to abide by its obligations under the policy.
In the alternative, the law firm alleged that its agent, USI Insurance Services, LLC, was liable if the policy did not require Hanover to defend and indemnify in the underlying case. It was further alleged that USI was responsible for procuring coverage for the law firm and knew of its insurance needs. USI was negligent in securing a policy with inadequate coverage.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Contractor Entitled to Continued Defense Against Allegations of Faulty Construction
November 01, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe U.S. District Court found that the contractor was entitled to a defense in the underlying state court action. Pa. Nat'l Mut. Cas. Ins. Co. v. Zonko Builders, 2021 U.S. Dist. LEXIS 168855 (D. Del. Sept. 7, 2021).
Zonko was the general contractor for building the Salt Meadows Townhomes Condominium. This included supervising subcontractors in the installation of siding, house wrap, and flashing in five buildings between 2005 and 2007. In 2016, Salt Meadows and its individual members ("Association") found property damage in the condominiums.
The Association sued Zonko in state court, alleged that resulting damages included drywall damage in ceilings or walls, flooring and carpet, water damage around window trim, rot on window frames, incorrect flashing around roofs and windows, possible ridge vent leaks, and possible foundation issues.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Manhattan Townhouse Sells for a Record $79.5 Million
April 05, 2017 —
Oshrat Carmiel - BloombergA home on Manhattan’s Upper East Side sold for $79.5 million, according to property records made public Wednesday, making it the highest price ever paid for a townhouse in the borough.
The 20,500-square-foot (1,905-square-meter) property, at 19 E. 64th St., had been owned by the Wildenstein family, billionaire art dealers whose gallery was located at the site for more than 80 years. The previous record for a Manhattan townhouse was the $53 million paid for 4 E. 75th St., in 2006, according to appraiser Miller Samuel Inc.
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Oshrat Carmiel, BloombergMr. Carmiel may be followed on Twitter @OshratCarmiel
Don’t Let Construction Problems Become Construction Disputes (guest post)
October 01, 2014 —
Melissa Dewey Brumback – Construction Law in North CarolinaTo start our week off right, today we have another important article from guest blogger Christopher G. Hill, LEED AP. Chris is a Virginia Supreme Court certified mediator, construction lawyer and owner of the Richmond, VA firm, The Law Office of Christopher G. Hill, PC. He authors the Construction Law Musings blog where he discusses legal and policy issues relevant to construction professionals. His practice concentrates on mechanic’s liens, contract review and consulting, occupational safety issues (VOSH and OSHA), and risk management for construction professionals. [His blog was also one of the first construction law blogs I found and followed, even if he is a Duke alum!] Take it away, Chris!
First and foremost, thanks to Melissa for inviting me back to post here at her great blog. She continues to invite me back despite my being a Blue Devil (and I try not to hold her Tar Heel status against her).
So much of discussion relating to construction law and construction lawyers centers on the litigation of disputes. This discussion comes in many forms from avoidance of such litigation through the early intervention of good counsel prior to getting into a project to what sort of resolution mechanism to use. Another branch of this discussion is essentially the right way to pursue your claim (or as some may read it start the dispute ball rolling). Sometimes a payment bond claim is the best method while others a straight up contractual suit is the best way to go.
Of course, all of this discussion presumes that there will be disputes. While I agree to some degree that in the Murphy’s Law riddled world of commercial construction, problems will arise. These problems need not rise to the level of a dispute that requires outside (read court or arbitrator) intervention. A few tips that are easy to write, but admittedly hard to practice at times can hopefully keep problems from blossoming into disputes. I’ve listed three big ones here:
1.Use “in house counsel.” Yes, I know that most of you engineers, architects, commercial general contractors and subcontractors out there aren’t big enough to either want or need a full time attorney on the payroll. What I mean by this is that when problems occur (or preferably before doing so), give your friendly local construction lawyer a call. As I learned from my dad, an ounce of prevention and all that. That 10 minute phone call may help avoid many hours of time and bills from your attorney later down the road.
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Melissa Dewey Brumback, Construction Law in North CarolinaMs. Brumback may be contacted at
mbrumback@rl-law.com