Illinois Supreme Court Finds Construction Defect Claim Triggers Initial Grant of Coverage
February 26, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Illinois Supreme Court found that the underlying allegations addressing construction defects were sufficient to establish "property damage" caused by an "occurrence."Acuity v. M/I Homes of Chicago, LLC, 2023 Ill. LEXIS 1019 (Ill. Nov. 30, 2023).
M/I Homes was the general contractor for a residential townhome development. The Owners' Association sued for breach of conract and breach of the implied warranty of habitability against M/I Homes. The complaint alleged that M/I Homes' subcontractors caused construction defects by using defective materials, conducting faulty workmanship and failing to comply with applicable building codes. The defects included leakage and uncontrolled water with moisture in locations in the buildings where it was not intended or expected. The Association further alleged that M/I Homes did not intend to cause the construction defects nor did it expect or intend the resulting property damage, such as damage to other building materials. The complaint further alleged that M/I Homes did not perform any of the construction work and that the subconractors performed all the work on its behalf.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Montana Significantly Revises Its Product Liability Laws
May 22, 2023 —
William L. Doerler - The Subrogation StrategistOn May 4, 2023, Montana changed its product liability laws when the Governor signed SB 216, which was effective upon passage and applies to claims that accrue on or after May 4, 2023. Among the changes is the adoption of a sealed container defense and the application of comparative negligence principles in strict liability actions. Montana also adopted a defense based on certain actions not being brought within 10 years. In addition, Montana adopted a rebuttable presumption with respect to a product’s defective condition. A jury must be informed about this rebuttable presumption with respect to certain warnings claims, premarket licensing procedures or claims involving drugs and/or medical devices. The changes to the Montana Code are further described below.
- In situations where there are multiple defendants, a defendant in a strict liability or breach of warranty action may now assert, as a defense, that the damages of the claimant were caused in full or in part by a person with whom the claimant has settled or released from liability. See MCA § 27-1-703(6)(a) (as revised). Comparative negligence or fault defenses are also available in actions against sellers, even where there are not multiple defendants. See MCA § 27-1-719(4)(e) (discussing a seller’s defenses in situations other than multiple defendant situations) (as revised).
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William L. Doerler, White and Williams LLPMr. Doerler may be contacted at
doerlerw@whiteandwilliams.com
Happenings in and around the 2015 West Coast Casualty Seminar
May 07, 2015 —
Beverley BevenFlorez-CDJ STAFFWest Coast Casualty Construction Defect Seminar returns to the Disneyland Hotel next week (May 14th and 15th), and the Construction Defect Journal has compiled a list of concerts, sporting events, and museum exhibitions taking place in and around Anaheim. Whether you like to spend your personal time checking out a new band, or watching your favorite Angel slide into home, or perusing the local art museum, there is something to spark your interest.
CONCERT VENUES
THE HOUSE OF BLUES IN ANAHEIM
Located in Downtown Disney, The House of Blues in Anaheim is a short walk from the convention hall.
Live Band Karaoke
Wednesday, May 13th Starting at 10pm
No Cover
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Rockin’ The Blues with Griff Hamlin
Thursday, May 14th at 10pm
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Tyrone Wells
Saturday, May 16th at 7pm
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THE GROVE OF ANAHEIM
Near Angel Stadium, the Grove of Anaheim is just a few miles away from the seminar location.
Ministry
Monday, May 11th Doors Open at 7pm / Show Begins at 8pm
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Kamelot plus Special Guest Dragonforce
Friday, May 15th Doors Open at 7pm / Show Begins at 8pm
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CHAIN REACTION
Attendees can escape to this all-ages club that’s just a ten minute drive from the Disneyland Hotel.
Ice Nine Kills
Wednesday, May 13th at 7pm
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Warped Tour Battle of the Bands
Thursday, May 14th at 7pm
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Manifest Presents
Saturday, May 16th at 7pm
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SPORTING EVENTS
ANGEL’S STADIUM – BASEBALL
Take care of your popcorn-and-peanuts-and-cracker-jacks fix while cheering for the Angel’s—conveniently just a few miles from the Disneyland Hotel.
Angels v. Colorado Rockies
Tuesday, May 12th at 7:05pm
Wednesday, May 13th at 7:05pm
For More Information and to Purchase Tickets...
MUSEUM EXHIBITIONS
MUZEO
This local museum and cultural center is a short drive from the convention hall.
Cougars and Grizzlies: Sharing their Path
April 18, 2015-September 13th, 2015
Museum Days/Hours: Tuesday – Sunday (Closed Mondays) / 10 am to 5 pm
For More Information and to Purchase Tickets...
BOWERS MUSEUM (Santa Ana)
Voted “The Best Museum in Orange County” by OC Register Readers for 16 consecutive years, this arts and cultural center is worth the fifteen minute drive.
Qi Baishi: China’s Modern Master
April 11th, 2015-July 11th, 2015
Museum Days/Hours: Tuesday – Sunday (Closed Mondays) / 10 am to 4 pm
For More Information and to Purchase Tickets...
Where Ends Meet: A Retrospective of Works by Nancy Ravenhall Johnson
March 13th, 2015-August 16th, 2015
Museum Days/Hours: Tuesday – Sunday (Closed Mondays) / 10 am to 4 pm
For More Information and to Purchase Tickets...
Exhibition: Adams, Curtis, and Weston: Photographers of the American West
May 16th, 2015-November 29th, 2015
Museum Days/Hours: Tuesday – Sunday (Closed Mondays) / 10 am to 4 pm
For More Information and to Purchase Tickets...
Lecture: Adams, Curtis, and Weston: Photographers of the American West
Saturday, May 16th from 1:30pm to 2:30pm
For More Information and to Purchase Tickets...
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Arkansas: Avoiding the "Made Whole" Doctrine Through Dépeçage
April 09, 2014 —
Robert M. Caplan – White and Williams LLPIn Arkansas, a workers’ compensation carrier’s subrogated recovery is subject to a determination of whether the injured worker—or, as the case may be, the worker’s surviving beneficiaries—has been “made whole” by the worker’s recovery against the third party tortfeasor. See, e.g., Yancey v. B & B Supply, 213 S.W.3d 657, 659 (Ark. App. 2005) (“An insured’s right to be made whole takes precedence over an insurer’s right to subrogation, and an insured must be fully compensated before the insurer's right to subrogation arises.”) [1] More often than not, a “made whole” determination will completely eradicate the carrier’s lien.
But under the right circumstances, a workers’ compensation carrier may be able to avoid the harsh outcome of “made whole” by intervening in a pending third party action and subsequently filing a motion for dépeçage—i.e., the conflict of laws principle requiring the court to conduct a separate choice of law analysis for discrete issues in a given case. A motion for dépeçage, in this sense, would demand that the court conduct a choice of law analysis to determine what state’s workers’ compensation subrogation law will apply on reimbursing a carrier’s lien.
We recently exploited this often underutilized tactic—to avoid Arkansas’ made whole doctrine—in a case involving a fatal plane crash in Louisiana. In that case, the deceased worker and his beneficiaries were residents of Louisiana; the accident took place in Louisiana; the worker was officially employed in Louisiana; and the workers’ compensation insurance policy was governed by, and benefits were paid under, Louisiana law. The only “contact” with Arkansas [2], meanwhile, was that Arkansas was the defendant’s domicile.
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Robert M. Caplan, White and Williams LLPMr. Caplan may be contacted at
caplanr@whiteandwilliams.com
Wisconsin Supreme Court Upholds Asbestos Exclusion in Alleged Failure to Disclose Case
January 22, 2014 —
Beverley BevenFlorez-CDJ STAFFIn the case Phillips v. Parmelee, the Wisconsin Supreme court ruled “that an asbestos exclusion in a liability policy barred a duty to defend and indemnify a building seller for claims that the seller failed to disclose that the building contained asbestos,” according to an article in Mondaq by Ruth S. Kochenderfer and Deanna P. Cook, both from Steptoe & Johnson LLP. The policyholder received a building report stating that the “heating ducts likely contained asbestos,” however, the buyers alleged that the policyholder never provided them the report. After the buyers purchased the property, contractors “cut through the heating ducts, unknowingly dispersing asbestos throughout the building.”
According to Kochenderfer and Cook’s article, “The insurer intervened in the buyers' suit and sought summary judgment against the policyholder and buyers, arguing that an asbestos exclusion precluded coverage for the buyers' suit against the policyholder.” The buyers took the case to the Wisconsin Supreme court and “attacked the asbestos exclusion,” but the court rejected every argument.
Kochenderfer and Cook stated that the “decision is significant because three courts, including Wisconsin's highest court, squarely rejected attempts to narrow a broad, clearly-worded asbestos exclusion. Further, it confirms that such an asbestos exclusion will apply to all causes of action, including an alleged failure to disclose the presence of asbestos.”
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Boston Catwalk Collapse Injures Three Workers
May 10, 2022 —
Scott Van Voorhis - Engineering News-RecordThe collapse of a catwalk in a defunct, 124-year-old power plant building in Boston on May 4 injured three workers in the latest in a spate of serious construction accidents in the city and its environs.
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Scott Van Voorhis, Engineering News-Record
ENR may be contacted at enr@enr.com
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No Occurrence Where Contract Provides for Delays
March 01, 2017 —
Tred R. Eyerly – Insurance Law HawaiiApplying Montana law, the federal district court found there was no coverage for a subcontractor who was sued by the contractor for breach of the subcontract. Phoenix Ins. Co. v. Ed Boland Constr., Inc., 2017 U.S. Dist. LEXIS 6654 (D. Mont. Jan 18, 2017).
Northbank was the general contractor on a project to repair a bridge for the Federal Highway Administration (FHA). Ed Boland Construction, Inc. (EBC) was the subcontractor to perform drilling and pile installation. After beginning its work, EBC ran into difficulties with unforeseen conditions at the work site. The FHA informed Northbank that it had concerns over EBC's ability to complete the work. The FHA alleged that EBC had brought equipment to the work site that differed from the equipment it had represented would be used.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
University of Tennessee’s New Humanities Building Construction Set to Begin
January 14, 2015 —
Beverley BevenFlorez-CDJ STAFFConstruction preparation of the Tennessee Volunteer’s $30.5 million new humanities building has begun, according to The Tennessean. The 80,000 square-foot facility will become the largest building on the university’s campus, and will feature 23 classrooms, 18 labs, 11 collaborative study areas, 56 offices, 20 adjunct faculty workrooms as well as an outdoor theater and courtyard.
“This is a significant milestone in the history of the college,” President Jerry Faulkner told The Tennessean. “This building has been on our wish list for about 12 years in terms of wanting to have this facility available, so for the first time our humanities division is going to have a home of its own.”
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