Failure to Comply with Contract Leaves No Additional Insured Coverage
January 07, 2015 —
Tred R. Eyerly – Insurance Law HawaiiIndemnity obligations and additional insured coverage were at issue in Strauss Painting, Inc. v. Mt. Hawley Ins. Co., 2014 N.Y. LEXIS 3347 (N.Y. Nov. 24, 2014).
Strauss Painting, Inc. (Strauss) contracted with the Metropolitan Opera Association, Inc. (the Met) to strip and repaint the rooftop steel carriage track for the opera house's automated window-washing equipment. The contract provided that Strauss would indemnify and hold the Met harmless. Exhibit D to the contract set forth three types of insurance that Strauss was to procure: (1) workers' compensation; (2) owners and contractors protective liability (OCP); and (3) comprehensive general liability. The OCP policy was to add the Met as an additional insured. Strauss failed to obtain the OCP policy.
At the time it contracted with the Met, Strauss had a CGL policy issued by Mt. Hawley. The policy's additional insured endorsement (ICO form CG 20 33 07 04) stated that "an insured" included "any organization for whom Strauss is performing operations when Strauss and such organization have agreed in writing that such organization be added as an additional insured."
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Substitutions On a Construction Project — A Specification Writer Responds
July 03, 2022 —
Melissa Dewey Brumback - Construction Law in North CarolinaIn response to the post about
Substitute Materials on a construction project, Phil Kabza explains how his company,
SpecGuy, handles tracking of all such materials on a project.
Phil writes:
Excellent and important topic, about which there is much confusion among design professionals and contractors. We try to maintain definitions for:
- Pre-bid requests for prior approval of proposed comparable products where products are named in the specifications
- True pre-bid substitution requests that present an alternate type of product from that specified (ie., not “comparable” but perhaps suitable)
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Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett
Ms. Brumback may be contacted at mbrumback@rl-law.com
Back to Basics – Differing Site Conditions
December 19, 2018 — Tracey W. Pruiett - Smith Currie
Encountering an unexpected site condition is one of the more common risks on a construction project. A “differing site condition”, or it is sometimes called a “changed condition”, is generally understood to be a physical condition that is discovered while performing work and that was not visible or otherwise expected at the time of bidding. Often, the condition could not have been discovered by a reasonable site investigation. Examples of common differing site conditions include: soil with inadequate bearing capacity to support the building being constructed, soil that cannot be reused as structural fill, unanticipated groundwater, quicksand, mud, rock formations, or other artificial subsurface obstructions. Differing site conditions may also occur within the walls or ceilings of a renovation project such as the renovation of a hospital or historic building. Read the court decision
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Reprinted courtesy of Tracey W. Pruiett, Smith Currie
Ms. Pruiett may be contacted at twpruiett@smithcurrie.com
How a Robot-Built Habitat on Mars Could Change Construction on Earth
October 14, 2019 — Drew Turney - Engineering News-Record
According to a 2018 report by the International Energy Agency and UN Environment, the global construction industry is responsible for 39% of energy-related carbon-dioxide emissions. That is a huge, scary number—but one that comes with an equally large opportunity to mitigate climate change. The 2015 Paris climate talks revealed that by using existing technology, construction could cut global carbon emissions by up to a third. Read the court decision
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Reprinted courtesy of Drew Turney, ENR
ENR may be contacted at ENR.com@bnpmedia.com
The Rise Of The Improper P2P Tactic
September 18, 2023 — Tim Capowski - Kahana Feld
About a year ago a colleague brought my attention to the increase in irrelevant, inflammatory, scandalous, and improper language in plaintiff pleadings in catastrophic injury, fire, and death cases. Since that time, the problem has only intensified around the country. The purpose of this improper practice is multifaceted, and has nothing to do with properly or sufficiently pleading a lawsuit. Primarily, it is designed to create ready-made and targeted sensational content for news organizations to publish and re-publish (and for news bots to disseminate) to poison the future jury pool. The lay public interprets this content as imbued with credibility not only because it emanates from sworn or verified court filings but because it carries the further patina afforded by multiple news sources’ reliance on it. This method of pleading-to-press (hereinafter “P2P”) publicity attack carries far more weight than mere press conference allegations. Ironically, P2P is demonstrably wrong because a plaintiff counsel making the identical assertions at a press conference or via a press release during litigation would be subject to libel claims (litigation privilege does not attach), gag orders, and professional misconduct referrals in most jurisdictions. Just like the Reptile attacks are simply a repackaged variant of the long precluded “Golden Rule” tactic, the P2P attacks are nothing more than a very clever but highly improper way to circumvent the press conference publicity impropriety; the defense bar and judiciary simply haven’t caught up with it yet. Read the court decision
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Reprinted courtesy of Tim Capowski, Kahana Feld
Mr. Capowski may be contacted at tcapowski@kahanafeld.com
Be Careful When Walking Off of a Construction Project
November 24, 2019 — Christopher G. Hill - Construction Law Musings
I am truly grateful that my buddy Craig Martin (@craigmartin_jd) continues his great posts over at The Construction Contractor Advisor blog. He is always a good cure for writer’s block and once again this week he gave me some inspiration. In his most recent post, Craig discusses a recent Indiana case relating to the ever present issue of termination by a subcontractor for non-payment. In the Indiana case, the court looked at the payment terms and determined that the subcontractor was justified in walking from the project when it was not paid after 60 days per the contract.
This result was the correct, if surprising. Why do I say surprising? Because I am always reluctant to recommend that a subcontractor walk from a job for non payment if it is possible to continue. This is not so much for legal reasons (not paying a sub is a clear breach of contract by a general contractor) but practical ones. The practical effect of walking from the job is that the subcontractor is put on the defensive. Instead of arguing later that it performed but was not paid, that subcontractor is put in the position of arguing that the general contractor cannot collect its completion related and other damages because it breached first. This is a more intuitively difficult argument and one that is not as strong as the first.
Of course, all of this is contingent on the language in your contract (is there a “pay if paid” or language like that in the Indiana case?). Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com
Trial Court’s Grant of Summary Judgment On Ground Not Asserted By Moving Party Upheld
December 17, 2015 — Laura C. Williams & R. Bryan Martin – Haight Brown & Bonesteel LLP
In Marlton Recovery Partners, LLC v. County of Los Angeles, et al. (filed 11/20/15), the California Court of Appeal, Second Appellate District, affirmed summary judgment in favor of the defendants County of Los Angeles, the County Treasurer-Tax Collector and Board of Supervisors (collectively the “County”) despite the fact summary judgment was granted on grounds not raised by the County. The Court of Appeal determined that because the plaintiff could not have shown a triable issue of material fact on the ground of law relied upon by the trial court, summary judgment was proper.
In the underlying case, plaintiff sought cancellation of penalties on delinquent property taxes for 26 parcels under Revenue and Taxation Code §4985.2, which allows the tax collector to cancel such penalties under certain circumstances. The County denied the request prompting plaintiff to challenge the denial on a petition for peremptory writ of mandate to the trial court.
Reprinted courtesy of Laura C. Williams, Haight Brown & Bonesteel LLP and R. Bryan Martin, Haight Brown & Bonesteel LLP
Ms. Williams may be contacted at lwilliams@hbblaw.com
Mr. Martin may be contacted at bmartin@hbblaw.com
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There is No Claims File Privilege in Florida, Despite What Insurers Want You to Think
June 17, 2024 — Susana Arce & Stephanie A. Giagnorio - Saxe Doernberger & Vita, P.C.
As Florida insurers continue their attempts to narrow protections for policyholders, it is imperative - now more than ever - that insureds be well-informed and know their rights. Most recently, in Florida, insurers are attempting to weaponize the death of Senate Bill 1726 and House Bill 1287 to limit the documents disclosed to policyholders. Specifically, the proposed bill, which required insurers to disclose their claims file to policyholders, hoped to thwart insurers from utilizing “claims file privilege” to obstruct justice for policyholders and help level the playing field. The goal of the proposed bill was to promote transparency of the claim adjustment process and undercut insurers’ attempts to dodge discovery of relevant and necessary information during litigation, forcing the insurers to fully and honestly justify their basis for withholding coverage . Unfortunately for policyholders, on March 8, 2024, the proposed legislation was not passed by the Insurance and Banking Subcommittee.
While insurers want you to believe this is a significant victory and a free pass to continue withholding documents under a “claims file privilege,” this is not the case. The proposed bill merely codified current Florida law – simply put, the “claims file privilege” never existed, and still does not.
Reprinted courtesy of Susana Arce, Saxe Doernberger & Vita, P.C. and Stephanie A. Giagnorio, Saxe Doernberger & Vita, P.C.
Ms. Arce may be contacted at SArce@sdvlaw.com
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