Remand of Bad Faith Claim Evidences Split Among Florida District Courts
September 04, 2018 —
Michael S. Levine & Daniel Hentschel - Hunton Insurance Recovery BlogWhether an insurance bad faith claim, joined by amendment to an underlying insurance coverage action, may be removed more than a year after the original action was begun has divided federal judges in the state of Florida but has not yet been considered by the Eleventh Circuit. Now, a new opinion out of the Middle District of Florida (Jacksonville Division) has added to the debate.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Daniel Hentschel, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Hentschel may be contacted at dhentschel@HuntonAK.com
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The Connecticut Appellate Court Decides That Construction Contractor Was Not Obligated To Continue Accelerated Schedule to Mitigate Its Damages Following Late Delivery of Materials by Supplier
April 11, 2022 —
Robert M. Barrack - Gordon & ReesIn United Concrete Prods. v. NJR Constr., LLC, 207 Conn. App. 551, 263 A.3d 823 (2021), the Connecticut Appellate Court has issued a decision that should be of interest to the Connecticut construction industry and the construction bar. The lawsuit arose out of the late delivery of materials on a construction project, which is a frequent problem on construction projects. In United Concrete Products, the defendant general contractor, NJR Construction, LLC (“NJR”) was retained by the State of Connecticut Department of Transportation (“DOT”) to replace a bridge over the Hockanum River (“Project”). Id. at 555-58 (2021). The Prime Contract provided that NJR with an eight-week time-frame to perform the work, at which time the road would be closed to traffic. Id. The Prime Contract also provided for a bonus of $3,000 for each day the road was opened to traffic prior to the eight week deadline of August 8, 2016, and for liquidated damages of $3,000 for each day the road remained closed beyond the deadline. Id.
NJR subsequently entered into a purchase order (“Subcontract”) with the plaintiff, United Concrete Products, Inc. (“United”), whereby United agreed to provide certain concrete components for the Project, including ten pre-stressed concrete beams. Id. The Subcontract required that United deliver the concrete beams by June 7, 2016, but, NJR did not actually schedule the delivery until June 29, 2016. Id. Nevertheless, even with that schedule NJR could have reopened the road by July 19, 2016, which would have allowed it to receive the full $60,000 incentive bonus. However, United did not deliver the concrete beams until July 26, 2016, which caused NJR to lose the incentive bonus, be assessed liquidated damages by the DOT, and to incur additional delay damages. Id. After deducting the amount of $179,500 in damages that it incurred due to United’s late delivery of the beams, NJR paid United the balance of $66,074.75. Id.
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Robert M. Barrack, Gordon Rees Scully Mansukhani, LLPMr. Barrack may be contacted at
rbarrack@grsm.com
No Coverage for Property Damage That is Limited to Work Completed by Subcontractor
April 25, 2012 —
Tred R. Eyerly - Insurance Law HawaiiThe issue before the 11th Circuit was whether, under Florida law, a general contractor had coverage for a property damage claim limited to the defective work performed by a subcontractor, and not affecting any other portion of the project. The court found no coverage in Amerisure Mut. Ins. Co. v. Auchter Co., 2012 U.S. App. LEXIS 5412 (11th Cir. March 15, 2012).
Amelia Island Company contracted with Auchter Company, a general contractor, for construction of an inn and conference room. Auchter subcontracted with Register Contracting Company to install the Inn’s roof. Pursuant to the Florida Building Code, installation of the roof required that it be able to withstand 110 m.p.h. winds.
Register completed installing the roof tiles in January 1998. Beginning in 2002, the tiles began dislodging from the roof. During the 2004 hurricane season, three hurricanes caused more tiles to come off the roof. Some of these tiles hit other tiles, cracking them.
In 2006, the parties went to arbitration over the costs of repairs for the roof.
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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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Texas Federal Court Finds Total Pollution Exclusion Does Not Foreclose a Duty to Defend Waterway Degradation Lawsuit
October 24, 2022 —
Jeremy S. Macklin - Traub Lieberman Insurance Law BlogEvanston Ins Co. v. Tex. Concrete and Sand Gravel, Inc., No. 4:20-cv-00103 (S.D. Tex. Aug. 30, 2022) is a coverage dispute over Evanston Insurance Co.’s (“Evanston”) duty to defend and indemnify Texas Concrete Sand and Gravel, Inc. (“Texas Concrete”) and Apcon Services, LLC (“Apcon”) (collectively, the “Insureds”) for their contributions to the degradation of the waterways and retention lakes built to control flooding in the Houston area. On August 3, 2022, Magistrate Judge Yvonne Y. Ho recommended that Evanston’s motion for summary judgment be denied. On August 30, 2022, District Court Judge Alfred H. Bennett adopted Judge Ho’s Memorandum and Recommendations.
In 2017, Hurricane Harvey caused significant flooding of the Houston area, which resulted in large-scale property damage. The underlying lawsuits alleged that, since 1954, Lake Houston’s waterways sustained a steady decline in capacity because of the release of materials into the waterway system. The Insureds allegedly contributed to the decline by allowing “materials and substances” (such as processed water, silt, sand, sediment, dirt, rock, and aggregate) to run off their privately controlled properties and into the Houston waterways. The reduced capacity, allegedly caused in part by the Insureds, exacerbated the flooding after Hurricane Harvey hit, increasing the damage from the hurricane.
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Jeremy S. Macklin, Traub LiebermanMr. Macklin may be contacted at
jmacklin@tlsslaw.com
Pile Test Likely for Settling Millennium Tower
October 04, 2021 —
Nadine M. Post - Engineering News-RecordA pilot pile program to prove the efficacy of a less-disruptive method for the paused foundation fix at the ailing Millennium Tower in San Francisco could begin the week of Oct. 4. Accelerated settling and tilt—caused by a pile upgrade intended to correct settlement of the 645-ft-tall residential condominium—ceased after Aug. 20, when the engineer-of-record halted the $100-million fix.
Reprinted courtesy of
Nadine M. Post, Engineering News-Record
Ms. Post may be contacted at postn@enr.com
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The “Your Work” Exclusion—Is there a Trend against Coverage?
September 10, 2014 —
Craig Martin – Construction Contractor AdvisorTwo more courts have weighed in on the “your work” exclusion in commercial general liability (CGL) policies, finding that contractors did not have coverage for work performed improperly. These cases highlight that whether you have coverage for poor workmanship will depend on the state’s law applied. It now appears that if you are in South Carolina or Massachusetts, you will not have coverage.
The South Carolina case, Precision Walls, Inc. v. Liberty Mutual Fire Insurance Company, involved a subcontractor hired to tape insulation. After taping the insulation, a brick veneer was installed on the exterior. During the brick installation, the mason reported that the tape was losing its adhesion and the subcontractor was instructed to repair the problem. In order to access the tape, portions of the brick veneer had to be removed and re-installed. The subcontractor then sought coverage for the costs associated with repairing the tape.
The insurer denied coverage and the subcontractor sued its insurer. The court ruled in favor of the insurer, finding that the defective tape was “your work” because it was “material furnished in connection” with the subcontractor’s work. The policy specifically excluded from coverage damage to property caused by “your work”. Thus, there was no coverage for the subcontractor.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Arizona – New Discovery Rules
May 16, 2018 —
John Belanger - Bremer Whyte Brown & O'Meara LLPEffective July 1, 2018
New Rules of Civil Procedure are taking effect in Arizona on July 1, 2018. The new Rules will change how discovery works in civil litigation in the state. Here is a sneak peek at the changes that will impact your file handling the most:
Tiered Discovery
- How much discovery is allowed in a case will now depend on the amount and type of relief sought
- Cases will be assigned to one of three tiers
- Parties can agree on a tier assignment, the court can assign a tier, or a tier can be assigned based on the amount of damages, or a combination of monetary and non-monetary damages
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John Belanger, Bremer Whyte Brown & O'Meara LLPMr. Belanger may be contacted at
jbelanger@bremerwhyte.com
Governor Bob Ferguson’s Recent Executive Orders – A Positive Sign for Washington’s Construction Industry
January 21, 2025 —
Ryan Sternoff & Trygve Groh - Ahlers Cressman & SleightOn January 15th, in his first act as Washington’s Governor, Bob Ferguson signed three executive orders, two of which may have a direct impact by removing some of the “red tape” that stifles Washington’s construction industry. This appears to be a positive sign that the Governor’s office is focused on pragmatic action, rather than partisan politics.
Executive Order 25-02 is entitled “Assessing Regulatory Efficiency and Addressing Washington’s Affordable Housing Crisis” and directs all executive and small cabinet agencies (collectively, “State Agencies”) to review their rules and regulations and prepare a report for the Governor’s Office that identifies rules or regulations that impact the construction of new housing. The reports will also identify rules or regulations that are no longer necessary and can be rescinded, rules or regulations that can be amended to speed up housing construction. The reports will include descriptions of proposed amendments to such rules and regulations. The reports must be provided to the Governor’s Office within sixty days.
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Ryan Sternoff, Ahlers Cressman & SleightMr. Sternoff may be contacted at
ryan.sternoff@acslawyers.com