CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Construction Defects Are Not An Occurrence Under New York, New Jersey Law

June 18, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The New York Supreme Court, Appellate Division, determined there was no coverage for construction defects under New York or New Jersey law. Nat'l Union Fire Ins. Co. of Pittsburgh, PA v. Turner Constr. Co., 2014 N.Y. App. Div. LEXIS 3546 (N.Y. App. Div. May 15, 2014). The property owner retained Turner Construction to serve as the general contractor. Turner subcontracted with Permasteelisa North America Corporation to design and build the exterior wall, a "curtain wall," which consisted of granite and glass. A segment of the pipe rail system fell to the street from the eighth floor of the building. An investigation determined that more than 20% of the pipe rail connections surveyed did not conform to the building plans. Additional problems included inconsistencies in the method of rail attachment, bent brackets on the pipe rail system, cracked glass louvers, cracked glass panels, and water infiltration. Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

---

One Insurer's Settlement with Insured Does Not Bar Contribution Claim by Other Insurers

October 30, 2013 — Tred Eyerly — Insurance Law Hawaii
The New Jersey Supreme Court held that one insurer could seek contribution from another insurer who settled with and secured a release from the insured. Potomac Ins. Co. v. Pennsylvania Manufacturers' Ass'n Ins. Co., 2013 N.J. LEXIS 847 (N.J. Sept. 16, 2013) The township of Evesham retained Roland Aristone, Inc. to be its general contractor for construction of a new middle school. After completion of the school, the roof leaked. Evesham sued Aristone for the construction defects. Aristone tendered to its various CGL carriers. Two insurers, Selective Way Insurance Company and OneBeacon Insurance Company, defended. Two others, Pennsylvania Manufacturers' Insurance Company (PMA) and Royal Insurance Company, denied coverage. Aristone sued PMA and Royal, and ultimately settled with PMA for $150,000 in exchange for Aristone's release from all claims, including claims for defense fees and costs. Read the court decision
Read the full story...
Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

---

This Company Wants to Cut Emissions to Zero in the Dirty Cement Business

November 12, 2019 — Nick Rigillo - Bloomberg
Europe’s biggest maker of cement plants is looking for help to clean up one of the world’s dirtiest industries. FLSmidth A/S, which is based in climate-friendly Denmark, wants to reduce emissions in cement production to zero by 2030. The company says it can achieve 70% of that target by leveraging existing technologies, for instance by blending clinker with alternative materials. Read the court decision
Read the full story...
Reprinted courtesy of Nick Rigillo, Bloomberg

---

Suspend the Work, but Don’t Get Fired

May 20, 2015 — Craig Martin – Construction Contractor Advisor
Getting paid for your work is often times one of the hardest parts of a project. If you find yourself working without getting paid, it’s easy to think, “I’ll just stop working until I get paid.” While the law may support you in that decision, the contract may not and you may be found in breach of the contract if you walk off the job. Nebraska Law Nebraska courts have held that a contractor or subcontractor may stop working on a project if the owner or upstream contractor is in material breach. This, of course, raises the question of “What is a material breach?” The facts of the particular circumstance will control. But, the risk is significant. If the unpaid contractor is wrong, in that the breach is not material, he will face the claim by the upstream party for all costs necessary to finish the contractor’s work. If the upstream party is in material breach, he will face a claim for profit on the remaining portion of the project. Read the court decision
Read the full story...
Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

---

Federal Court Asks South Dakota Supreme Court to Decide Whether Injunction Costs Are “Damages,” Adopts Restatement’s Position on Providing “Inadequate” Defense

August 13, 2019 — Anthony L. Miscioscia & Timothy A. Carroll - White and Williams LLP
Do costs associated with complying with an injunction constitute covered “damages?” The U.S. District Court for the District of South Dakota recently certified that question to the South Dakota Supreme Court, in Sapienza v. Liberty Mutual Fire Insurance Company, No. 3:18-CV-03015-RAL, 2019 U.S. Dist. LEXIS 84973 (D.S.D. May 17, 2019). If the South Dakota Supreme Court takes on the question, it will become one of the few highest state courts to do so.[1] The Sapienza case is also notable because the court adopted § 12 of the Restatement of the Law of Liability Insurance (Restatement) regarding an insurer’s potential liability for providing an “inadequate” defense. In doing so, the Sapienza court joins a growing list of courts to rely upon or cite to the Restatement. The Sapienza case arose out of an underlying dispute between residential neighbors over the size and location of the Sapienzas’ new house they built in a historic district in Sioux Falls, SD. The newly-built house allegedly prevented the neighbors from using their fireplace, blocked natural light the neighbors previously enjoyed, and decreased the value of the neighbors’ house. The neighbors sought a permanent injunction requiring the Sapienzas to modify or relocate the house. The Sapienzas’ homeowners’ insurer provided them with defense counsel, but the insurer instructed the Sapienzas that it would not cover any costs associated with an injunction as such costs did not constitute covered “damages.” Reprinted courtesy of Timothy Carroll, White and Williams LLP and Anthony Miscioscia, White and Williams LLP Mr. Schulman may be contacted at carrollt@whiteandwilliams.com Mr. Anderson may be contacted at misciosciaa@whiteandwilliams.com Read the court decision
Read the full story...
Reprinted courtesy of

---

Real Estate & Construction News Round-Up (10/27/21)

November 19, 2021 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
Commercial real-estate sales surge in the third quarter, blockchain-integrated real estate is poised to span into new sectors, a major home builder is teaming with a Texas startup to create a community of 100 3-D printed homes, and more.

• In the not-too-distant future, it is predicted blockchain-integrated real estate will be implemented in sectors beyond payments via digital currency, spanning to automated transactions, smart contracts, and more. (Adam Redolfi, Forbes)
• Despite warnings that the COVID-19 pandemic would erode property values, purchases of apartment buildings, life-science labs and industrial properties resulted in commercial sales of more than $193 billion in the quarter, up 19% compared with the same three months in 2019. (Peter Grant, The Wall Street Journal)

Read the court decision
Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

---

Cooperation and Collaboration With Government May Be on the Horizon

September 17, 2018 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel
In Is the Pendulum Swinging on Agency and Government Contractor Cooperation?, Pillsbury attorneys Mike Rizzo, Glenn Sweatt and Kevin Massoudi discuss comments from the Department of Defense as well as recent good faith and fair dealing court decisions that point to and encourage improved contractor/government relationships. Their key takeaways include

• Government officials are actively encouraging collaboration with, and less antagonism of, industry contractors.

Read the court decision
Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

---

Illinois Supreme Court Holds that Constructions Defects May Constitute “Property Damage” Caused By An “Occurrence” Under Standard CGL Policy, Overruling Prior Appellate Court Precedent

January 08, 2024 — Jason Taylor - Traub Lieberman Insurance Law Blog
On November 30, 2023, the Illinois Supreme Court issued an opinion that overturned precedent in Illinois regarding whether faulty workmanship that only caused damage to the insured’s own work constituted “property damage” caused by an “occurrence” under Illinois law. In Acuity v. M/I Homes of Chicago, LLC, 2023 IL 129087, the Illinois Supreme Court considered whether Acuity, a mutual insurance company, had a duty to defend its additional insured, M/I Homes of Chicago, LLC (M/I Homes), under a subcontractor’s commercial general liability (CGL) policy in connection with an underlying lawsuit brought by a townhome owners’ association for breach of contract and breach of an implied warranty of habitability. The Cook County Circuit Court granted summary judgment in favor of Acuity finding no duty to defend because the underlying complaint did not allege “property damage” caused by an “occurrence” under the initial grant of coverage of the insurance policy. The appellate court reversed and remanded, finding that Acuity owed M/I Homes a duty to defend. The Illinois Supreme Court affirmed, in part, holding construction defects to the general contractor’s own work may constitute “property damage” caused by an “occurrence” under the standard CGL Policy. This is significant as it overrules prior Illinois precedent finding that repair or replacement of the insured’s defective work does not satisfy the initial grant of coverage of a CGL Policy. By way of background, the underlying litigation stems from alleged construction defects in a residential townhome development in the village of Hanover Park, Illinois. The townhome owners’ association, through its board of directors (the Association) subsequently filed an action on behalf of the townhome owners for breach of contract and breach of the implied warranty of habitability against M/I Homes as the general contractor and successor developer/seller of the townhomes. The Association alleged that M/I Homes’ subcontractors caused construction defects by using defective materials, conducting faulty workmanship, and failing to comply with applicable building codes. As a result, “[t]he [d]efects caused physical injury to the [t]ownhomes (i.e. altered the exterior’s appearance, shape, color or other material dimension) after construction of the [t]ownhome[ ] was completed from repeated exposure to substantially the same general conditions.” The defects included “leakage and/or uncontrolled water and/or moisture in locations in the buildings where it was not intended or expected.” The Association alleged that the “[d]efects have caused substantial damage to the [t]ownhomes and damage to other property.” Read the court decision
Read the full story...
Reprinted courtesy of Jason Taylor, Traub Lieberman
Mr. Taylor may be contacted at jtaylor@tlsslaw.com

---