Cambridge Massachusetts Building Expert Directory

Force Majeure Under the Coronavirus (COVID-19) Pandemic

March 08, 2021 — Lindsay T. Watkins - Ahlers Cressman & Sleight PLLC
As COVID-19 disrupts work and life as we know it, the question many contractors have is what protections are available against the inevitable project impacts and delays? Generally, construction contracts require a contractor to timely perform work until project completion or potentially face damages (liquidated or actual) and possible termination. When events occur, however, that are beyond our control (such as a national pandemic), it is important to review and understand what contract provisions or avenues are available for potential relief. 1. Review Your Contract For A Force Majeure Provision. A “force majeure” contract provision is commonly included in construction contracts, service agreements, purchase orders, etc. It typically covers events or conditions that can be neither anticipated nor controlled. These provisions, however, will vary greatly from contract to contract and may not include the language “force majeure” but rather may be included in general delay or impact clauses. For example, some common provisions include:

Washington State Department of Transportation Clause (2018 Standard Specifications for Road, Bridge and Municipal Construction): The Contractor shall rebuild, repair, restore, and make good all damages to any portion of the permanent or temporary Work occurring before the Physical Completion Date and shall bear all the expense to do so, except damage to the permanent Work caused by: (a) acts of God, such as earthquake, floods, or other cataclysmic phenomenon of nature, or (b) acts of the public enemy or of governmental authorities; or (c) slides in cases where Section 2-03.3(11) is applicable; Provided, however, that these exceptions shall not apply should damages result from the Contractor’s failure to take reasonable precautions or to exercise sound engineering and construction practices in conducting the Work.

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Reprinted courtesy of Lindsay T. Watkins, Ahlers Cressman & Sleight PLLC
Ms. Watkins may be contacted at Lindsay.Watkins@acslawyers.com

Sellers of South Florida Mansion Failed to Disclose Construction Defects

October 08, 2014 — Beverley BevenFlorez-CDJ STAFF
A couple who reportedly sold their custom, beach-front home on Golden Beach for more money than any other home in that town previously, may have failed to disclose construction defects, according to Daily Business Review. The original owners, reported Daily Business Review, claimed (according to court documents) that “they were ‘unable to spend even one night because an overwhelming smell of mold in the home triggered a severe reaction in Mrs. Hochberg.’" They also alleged the new home had “cracked walls, drafty doors, leaky windows, poorly cut marble and peeling stucco.” The owners sued the subcontractors, but lost due to not filing within the four-year statute of limitations. While water leaks were disclosed during the sale with a notation that all leaks had been repaired, “the extent of the home's repair history was not discussed during nearly eight months of haggling over the property, the buyer's broker said.” Read the court decision
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Extreme Heat, Smoke Should Get US Disaster Label, Groups Say

July 15, 2024 — Jennifer A Dlouhy - Bloomberg
Activists are petitioning the US government to formally classify extreme heat and wildfire smoke as major disasters, as soaring temperatures threaten to set records across much of the country. In a petition filed with the Federal Emergency Management Agency, they seek to unlock new funding to help communities address such events before they strike, with money for air filters that strip out smoke and rooftop solar systems that can supply electricity when demand overwhelms power grids. Climate change has made fatal heat waves more intense and frequent, while hotter, drier conditions stoke the risk of fires that can blanket the US in toxic smoke. An estimated 2,300 people in the US died from heat-related illness in 2023, the hottest year on record. And heavy smoke from wildfires in Canada last year traveled as far south as Georgia, prompting people to shelter inside and canceling flights in some of the largest US cities. Read the court decision
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Reprinted courtesy of Jennifer A Dlouhy, Bloomberg

Massachusetts Business Court Addresses Defense Cost Allocation and Non-Cumulation Provisions in Long-Tail Context

March 06, 2022 — Eric B. Hermanson & Austin D. Moody - White and Williams
A business court in Massachusetts has weighed in on two key issues affecting allocation of insurance coverage for long-tail liabilities in Massachusetts. Specifically, in Crosby Valve LLC et al. v. OneBeacon America Insurance Company, et al.,[1] involving asbestos bodily injury claims, Judge Kenneth Salinger of the Suffolk County Business Litigation Session addressed:

whether defense costs in long-tail cases were subject to the same pro rata allocation scheme the Supreme Judicial Court (SJC) adopted to govern successively triggered insurers' indemnity obligations in Boston Gas Company v. Century Indemnity Company;[2] and
whether “non-cumulation” provisions, like those addressed by the New York Court of Appeals in Matter of Viking Pump,[3] were consistent with this pro rata allocation methodology.

As to the first issue — i.e., allocation of defense costs — Judge Salinger declined to follow Boston Gas, and found the SJC’s holding in that case was limited to an insurers’ indemnity obligations. The SJC in Boston Gas had focused on the language of the policy insuring agreement, saying “[t]his policy applies to ... property damage ... which occurs anywhere during the policy period.” The SJC had also pointed to the policy definition of “occurrence” as “an accident, including injurious exposure to conditions, which results, during the policy period, in property damage neither expected nor intended from the standpoint of the insured.”[4] Reprinted courtesy of Eric B. Hermanson, White and Williams LLP and Austin D. Moody, White and Williams Mr. Hermanson may be contacted at hermansone@whiteandwilliams.com Mr. Moody may be contacted at moodya@whiteandwilliams.com Read the court decision
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Impairing Your Insurer’s Subrogation Rights

May 06, 2024 — David Adelstein - Florida Construction Legal Updates
Liability insurance policies have a provision that allows them to subrogate to the rights of their insured. This provision is commonly referred to as a transfer of rights provision and reads: If the insured has rights to recover all or part of any payment we have made under this Coverage Part, those rights are transferred to us. The insured must do nothing after loss to impair them. At our request, the insured will bring “suit” or transfer those rights to us and help us enforce them. In a recent dispute, an insurer sued its insured claiming the insured breached the insurance policy-a contract—by impairing the insurer’s subrogation rights. In other words, the insurer claimed its insured breach the insurance contract and the transfer of rights provision above. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

More Thoughts on “Green” (the Practice, not the Color) Building

February 01, 2021 — Christopher G. Hill - Construction Law Musings
It has been a while since I “mused” on the green building landscape. While I am a LEED AP and have presented on green (read “sustainable”) building in the past, I am not totally sold on LEED as the be all end all in sustainable construction (the USGBC is a private rating organization that, like the rest of us, is imperfect). I’ve also discussed, both here and elsewhere, the potential risks that come with any new(ish) building process. A recent post by my fellow construction attorney Matt Bouchard (@mattbouchardesq) piqued my interest and started me thinking yet again. Matt’s recent post, entitled Is the U.S. Green Building Council Becoming a Not-So-Jolly Green Giant? outlines recent developments in the sustainable building world (remember “green” is not a specification, but a color), and some of the debate out there among those in the know. From a great infographic on the Top 10 LEED states (Virginia is 3rd) to some sniping from the USGBC (read the LEED folks) toward the GBI (Green Globes) to the fact that LEED is losing some traction as the primary governmental green building certification platform, Matt’s post is worth a read. 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

Florida Project Could Help Address Runoff, Algae Blooms

September 17, 2018 — Thomas F. Armistead - Engineering News-Record
Heavy rainfall this spring overwhelmed Everglades infrastructure and required operators to discharge nutrient-laden water from Lake Okeechobee to South Florida’s east and west coasts. The resulting toxic algal blooms are fouling Florida’s coast, killing wildlife, driving away vacationers and local beachgoers and threatening public health. Read the court decision
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Reprinted courtesy of Thomas F. Armistead, ENR
ENR may be contacted at ENR.com@bnpmedia.com

Pennsylvania Federal Court Finds No Coverage For Hacking Claim Under E&O Policy

July 25, 2022 — Celestine Montague & Paul A. Briganti - White and Williams LLP
On June 9, 2022, the U.S. District Court for the Eastern District of Pennsylvania held, on summary judgment, that an insured was not entitled to coverage under a Professional Errors and Omissions (E&O) policy for loss allegedly resulting from a hacking incident. See Construction Fin. Admin. Servs., Inc. v. Federal Ins. Co., No. 19-0020, 2022 U.S. Dist. LEXIS 103042 (E.D. Pa. June 9, 2022). Applying North Carolina and Pennsylvania law, the court reasoned that: (1) coverage was barred by the policy’s unauthorized computer access, or “breach,” exclusions; and (2) the insured violated a condition in the policy that required the insurer’s consent to settlements and the violation prejudiced the insurer. The insured, Construction Financial Administration Services, Inc. (CFAS), was a third-party fund administrator for construction contractors. In April 2018, the CFAS received email requests from what it believed to be one of its clients, SWF Constructors (SWF), to disburse $1.3 million from an SWF account to a foreign company. CFAS authorized the payments, despite not having received a copy of any executed agreement between SWF and the foreign company. After the funds were disbursed, SWF advised that it had not authorized or requested the payments to the foreign company. In response, CFAS placed approximately $1.2 million of recovered and borrowed funds into the SWF disbursement account. SWF then sent a letter advising CFAS that the requests from the foreign company did not include documentation required under the contract between SWF and CFAS. It was later determined that the emails had been initiated by a fraudster who had gained unauthorized access to the sender’s email account. Reprinted courtesy of Celestine Montague, White and Williams LLP and Paul A. Briganti, White and Williams LLP Ms. Montague may be contacted at montaguec@whiteandwilliams.com Mr. Briganti may be contacted at brigantip@whiteandwilliams.com Read the court decision
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CAMBRIDGE MASSACHUSETTS BUILDING EXPERT DIRECTORY AND CAPABILITIES