Efficient Proximate Cause Applies to Policy's Collapse Provisions
February 23, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe court applied the efficient proximate cause doctrine to find coverage under a property policy for a building's collapse. Vardanyan v. Amco Ins. Co., 2015 Cal. App. LEXIS 1181 (Cal. Ct. App. Dec. 11, 2015).
The insured submitted a claim to Amco for damage to the flooring of the house and for mold. Amco's adjustor reported that the house seemed to be settling, possibly due to a water leak. A structural engineer then inspected and found multiple potential leaks in the roof, gutters in disrepair, downspouts that deposited water at the base of the walls of the house, and evidence that a faucet had been spraying the wall in one area. Water damage was noticed in these areas. Further, the kitchen was water damaged and had past termite infestation.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
How Pennsylvania’s Supreme Court Decision Affects Coverage of Faulty Workmanship Claims
March 31, 2014 —
Beverley BevenFlorez-CDJ STAFFDarin J. McMullen of the firm Anderson Kill explained how a recent opinion by the Pennsylvania Supreme Court allows “Pennsylvania policyholders” to “more confidently challenge insurance companies’ denials of faulty workmanship claims.”
The decision in Indalex Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA, 2013 Pa. Super 311 (Dec. 3, 2013) “reverses a nearly decade-long trend of Pennsylvania decisions narrowing the scope of insurance coverage for construction and defect-related claims under commercial general liability insurance policies,” according to McMullen. “Equally important, the Indalex ruling dealt a blow to the insurance industry’s continual efforts to win overbroad expansion of the rulings in Kvaerner Metals Div. of Kvaerner U.S., Inc. v. Commercial Union Ins. Co., Millers Capital Ins. Co. v. Gambone Bros. Dev. Co., and Erie Ins. Exchange v. Abbott Furnace Co., which found that claims of faulty workmanship in some circumstances may not constitute coverage-triggering ‘occurrences.’”
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Price Escalation Impacts
August 22, 2022 —
Denise Motta - Gordon & Rees Construction Law BlogThis Bulletin provides guidance to contractors, subcontractors, suppliers, and others to ensure compliance with contractual change order requirements in the event work on a construction project is impacted by price escalation.
Construction projects are being impacted by increased costs for most construction materials. The Producer Price Index shows a 69% increase in the cost of construction materials from March 2020 to March 2022. Many construction contracts do not address escalation or specifically exclude change orders for material escalation, leaving the risk of escalation of construction materials with the contractor, subcontractor, or suppliers.
Bid Protection Tips:
- Keep bids open for less than 30 days with a designated sunset date:
- Keeping your bids open for less than 30 days can help protect you from sudden changes in pricing and help maintain your bids’ competitive status.
- If asked to extend time a bid is open, reconfirm prices before agreeing.
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Denise Motta, Gordon Rees Scully Mansukhani, LLPMs. Motta may be contacted at
dmotta@grsm.com
AB 685 and COVID-19 Workplace Exposure: New California Notice and Reporting Requirements of COVID Exposure Starting January 1, 2021
February 01, 2021 —
Sewar K. Sunnaa & Nathan A. Cohen - Peckar & Abramson, P.C.SUMMARY
Effective January 1, 2021, a new California law requires employers to notify employees about possible or known exposure to COVID-19 at the workplace. The law requires actual notification to employees within one day.
In addition, the law requires notifications to local public health authorities of a COVID-19 outbreak. The law also gives Cal/OSHA a new emergency police power to issue Orders Prohibiting Use (“OPU”), permitting Cal/OSHA to close workplaces that constitute an imminent hazard to employees due to COVID-19.
ANALYSIS AND GUIDANCE
On January 1, 2021, a new California law took effect, which will enforce stringent new mandatory protocols governing notification of employees of COVID-19 exposures in the workplace. Until now, federal agencies such as the Occupational Safety and Health Administration (“OSHA”) and state agencies such as the California Division of Occupational Safety and Health Administration (“Cal/OSHA”) have released guidance to help employers navigate employee training, workplace surveillance and temperature-taking, among many other issues, that have arisen during the COVID-19 pandemic. Beginning January 1st, the new law places mandatory notice requirements of COVID-19 contact on all public and private employers under Labor Code Section 6409.6, with two exceptions: (1) health facilities, as defined in Section 1250 of the Health and Safety Code and (2) employees whose regular duties include COVID-19 testing or screening, or who provide patient care to individuals who are known or suspected to have COVID-19.
Reprinted courtesy of
Sewar K. Sunnaa, Peckar & Abramson, P.C. and
Nathan A. Cohen, Peckar & Abramson, P.C.
Ms. Sunnaa may be contacted at ssunnaa@pecklaw.com
Mr. Cohen may be contacted at ncohen@pecklaw.com
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Phoenix Flood Victims Can’t Catch a Break as Storm Nears
September 17, 2014 —
Brian K. Sullivan – BloombergA week ago, Hurricane Norbert pumped tropical moisture across the U.S. Southwest, touching off record rainfall in Phoenix and Tucson that killed at least two people, flooded hundreds of homes and shut highways throughout the region.
This week, Hurricane Odile moved onto the Baja California peninsula after becoming the strongest system since 1967 to hit that part of Mexico, the U.S. National Hurricane Center said.
While it isn’t time to get the rowboat out again for the morning commute, the earth in the desert Southwest doesn’t absorb water very well, the way a Florida swamp or Louisiana bayou might. A lot of rain can be far more unpredictable.
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Brian K. Sullivan, BloombergMr. Sullivan may be contacted at
bsullivan10@bloomberg.net
How Helsinki Airport Uses BIM to Create the Best Customer Experience
September 07, 2017 —
Aarni Heiskanen - AEC BusinessHelsinki Airport is arguably one of the best in the world. Thanks to its perfect location between Asia and Europe, it’s becoming an ever-more-popular hub. I interviewed Finavia’s Design Manager, Kari Ristolainen, about the airport’s development program and how building information modeling (BIM) is essential to its success.
On my way to Finavia’s project office, I walked by the newly opened South Pier. The construction company’s blue site huts were still there, but inside, the terminal seemed fully operational. The South Pier is the latest addition in the development program that started in 2014. Of the 21 airports that Finavia has in Finland, Helsinki is the crown jewel. The €900 million expansion and renovation program will eventually double the airport’s capacity.
In 2014, Finavia chose Lemminkäinen as the project management contractor for the terminal expansion. Destia is the partner in the alliance for extending the airport apron. PES Architects continues as the principal designer, while other designers include Sweco Structures, Granlund, and SITO.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
info@aepartners.fi
South Carolina “Your Work” Exclusion, “Get To” Costs
July 30, 2014 —
Scott Patterson - CD CoverageIn Precision Walls, Inc. v. Liberty Mutual Fire Insurance Co., No. 2013-000787 (S.C. Ct. App. July 23, 2014), SYS was the general contractor for a project. SYS contracted with Precision for the supply and installation of exterior insulation board, to include the taping of all joints. After Precision completed its work, another subcontractor began construction of the brick veneer wall over the insulation board. During construction of the brick wall, some of the joint sealing tape installed by Precision began to come loose. To correct the problem, the existing portion of the brick veneer wall had to be torn down, all of the joint sealing tape removed and replaced, and the brick veneer wall rebuilt. SYS deducted the cost of tearing down and rebuilding the brick veneer wall from Precision’s contract. Precision sought reimbursement for this amount from its CGL policy issued by Liberty Mutual.
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Scott Patterson, CD Coverage
South Carolina Legislature Redefining Occurrences to Include Construction Defects in CGL Policies
April 01, 2011 —
Beverley BevenFlorez CDJ STAFFThe question of what circumstances must be in place for construction defects to be covered in a general commercial liability (CGL) policies is being raised by the courts and the legislature in South Carolina. The Insurance Journal reports that the American Insurance Association as well as the Property and Casualty Insurers Association of America are speaking out on the issue.
The problem seems to be centered on what defines an “occurrence.” CGL policies were not meant to cover faulty workmanship, according to the filing by the South Carolina Supreme Court. In January of this year, the South Carolina Supreme Court reversed the ruling in Crossmann Communities v Harleysville Mutual declaring that “Respondents cannot show the damage here was the result of an occurrence. Rather, the damage was a direct result and the natural and expected consequence of faulty workmanship; faulty workmanship did not cause an occurrence resulting in damage.” They focused their attention on the word “accident,” stating that there is a fortuity element that is not diminished.
The South Carolina legislature reacted by producing a bill that would add new language directly negating the ruling by the Supreme Court. The South Carolina bill S-431 would change the definition of an occurrence in regards to construction defects as follows: “For a liability insurance policy issued to a construction professional, an ‘occurrence’ means, at a minimum: (1) an accident; or (2) continuous or repeated exposure to substantially the same general harmful condition or substance. No additional requirement of a fortuitous event is needed to constitute an ‘occurrence.’”
S-431 is currently residing in the House Committee on Labor, Commerce and Industry.
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