The Sounds of Silence: Pennsylvania’s Sutton Rule
January 29, 2024 —
William L. Doerler - The Subrogation StrategistIn Westminster Am. Ins. Co. a/s/o Androulla M. Toffalli v. Bond, No. 538 EDA 2023, 2023 Pa. Super. LEXIS 626, 2023 PA Super 272, the Superior Court of Pennsylvania (Appellate Court) recently discussed the impact of silence on the Sutton Rule with respect to the landlord, Androulla M. Toffalli (Landlord), securing insurance. After holding that the tenant, Amy S. Bond (Bond) t/a Blondie’s Salon – who leased both commercial and residential space in the building pursuant to written leases – was not an implied “co-insured” on Landlord’s insurance policy, the Appellate Court reversed the decision of the trial court.
In this case, Bond rented the ground floor of a property located in Monroe County pursuant to a written commercial lease (Commercial Lease) and operated Blondie’s salon out of the leased location. In addition, Bond rented and lived in a second-floor apartment pursuant to a residential lease (Residential Lease). Both leases required the tenants (Tenants) to obtain insurance for personal items. The leases, however, did not require Landlord to obtain fire insurance for the property.
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William L. Doerler, White and Williams LLPMr. Doerler may be contacted at
doerlerw@whiteandwilliams.com
Big Builder’s Analysis of the Top Ten Richest Counties
June 26, 2014 —
Beverley BevenFlorez-CDJ STAFFBig Builder took Forbes’ 2014 top ten richest U.S. counties list (based on household median income) and researched who the top builders were in those regions, buyer requirements, among other categories. The top three richest counties according to Forbes and Big Builder are Falls Church, Virginia; Loudoun County, Virginia; and Los Alamos County, New Mexico.
Information listed for each county include the median-closing price, price per square foot, living square feet, top builders, and an examination of what makes each region unique.
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Snooze You Lose? Enforcement of Notice and Timing Provisions
November 11, 2024 —
Cornelius F. "Lee" Banta, Jr. - ConsensusDocsDeadlines are an inescapable part of the construction industry. Bid deadlines. Submittal deadlines. Material delivery deadlines. Substantial completion. Final completion. And so, inevitably, fighting about deadlines becomes a necessary byproduct. Was the deadline really a deadline? Was the schedule slippage on the critical path? Should there be an equitable extension to the date of substantial completion? Given the amount of attention and concern conferred on deadlines, those drafting construction contracts naturally seek to clarify which deadlines really matter with the inclusion of notice and timing provisions.
A contract’s change order and claims procedures are often a key friction point for those drafting and administering the contract. Should there be a requirement for prior written notice of a claim for cost/time relief? How much advance notice? Who should the request be sent to? Is a specific form of notice required? What are the consequences of failing to provide timely notice? A practitioner should pay careful attention to negotiating these terms on the front end, because rest assured, these contract provisions will garner scrutiny when a change order dispute boils over.
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Cornelius F. "Lee" Banta, Jr., Peckar & Abramson, P.C.Mr. Banta may be contacted at
lbanta@pecklaw.com
No Coverage for Additional Insured for Construction Defect Claim
July 02, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Seventh Circuit affirmed the district court's grant of summary judgment to the insurers, finding there was no coverage for the additional insured on a construction defect claim. St. Paul Guardian Ins. Co. v. Walsh Construction. Co., 2024 U.S. App. LEXIS 10285 (7th Cir. April 29, 2024).
The City of Chicago hired Walsh Construction Company as general contractor for the Facade and Circulation Enhancement (FACE) project at O'Hare International Airport. The FACE project involved building and installing a new canopy for Terminals 1, 2 and 3. The project also called for the construction of a steel and glass curtain wall that would be integrated with the curtain wall at Terminals 2 and 3. Walsh contracted with Carlo Steel Corporation to manufacture the steel and curtain wall. Carlo, in turn, subcontracted with LB Steel, LLC to manufacture and install the steel elements of the wall, which included steel columns, hammer heads and box girders. The subcontract between Carlo and LB Steel included an indemnity provision that required LB Steel to indemnify Carlo and Walsh for any property damage resulting from LB Steel's negligent performance.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Construction in the Time of Coronavirus
March 30, 2020 —
Christopher G. Hill - Construction Law MusingsOne cannot look look at one’s phone, computer or even the road outside the window without seeing signs of the impact that coronavirus (COVD-19) is having on the world at large. Schools are shut down, traffic is lighter and there is the daily count of new confirmed cases, in Virginia and elsewhere. “Social distancing” is the buzzword of the day. I am writing this post from a home office because of CDC and other guidance regarding the best way to “flatten the curve.” We have all been told to avoid large groups and stay close to home.
All of this is well and good, but construction must go on. In travelling around Richmond, I see construction vehicles on the road quite a bit. This is a good thing. It seems that most of the Richmond, Virginia area contractors are trying to stay as close to “business as usual” as possible while still remaining vigilant and careful to follow CDC and OSHA guidelines on workplace activity and COVD-19. However, the situation is ever changing and government and other outside forces could lead to project slowdowns, project shutdowns or other virus related impacts to everything from permitting to staffing of a project.
As I have discussed, likely ad nauseam, any commercial or residential construction project is controlled by a series of contracts (hopefully well drafted) that control the relationships on the job. Subcontractors in particular have the provisions of their subcontract and those of the prime contract to worry about. One of the major provisions that could trip up any construction professionals on these jobs is the notice provision of the subcontract (thanks for the reminder go to a friend and fellow construction lawyer Mark Cobb at his blog).
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Man Pleads Guilty in Construction Kickback Scheme
November 06, 2013 —
CDJ STAFFMark M. Palombaro, a former vice president at Simon Property Group, a development firm, has plead guilty to receiving $766,000 from the head of a construction firm in payback for the projects. Robert E. Crawford at Fox Chapel then overbilled for these projects, which were located in Seattle, Washington and Laguna Beach, California, in order that he and Mr. Palombaro would profit.
The total value of the projects, overbilling included, was $15 million. The two men settled a civil suit brought by Simon Property Group by paying $3.3 million. Mr. Crawford plead guilty in June. He admitted to bribing Mr. Palombaro.
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Mitsui Fudosan Said to Consider Rebuilding Tilted Apartments
October 28, 2015 —
Katsuyo Kuwako – BloombergMitsui Fudosan Co., Japan’s biggest developer, is considering rebuilding an apartment complex in Yokohama after one of the four buildings started to tilt, according to a person familiar with the situation.
Kiyotaka Fujibayashi, president and chief executive officer of Mitsui Fudosan Residential Co., on Thursday explained the plans to residents, according to the person, who asked not to be named because the information is private. Another option the company is studying is buying back the apartments from the residents at a price higher than what they had paid, the person said. The project was sold in 2006.
Mitsui Fudosan is the latest developer to come under scrutiny for defects at residential projects in the Tokyo area. Mitsubishi Estate Co., Japan’s biggest developer by market value, said last year it would rebuild a residential complex in the upscale Aoyama neighborhood after finding faults. Also last year, Sekisui House Ltd. said it would reconstruct a residential complex that was being built by Taisei Corp. after finding some columns were missing reinforcing metals.
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Katsuyo Kuwako, Bloomberg
Condominium Exclusion Bars Coverage for Construction Defect
August 17, 2011 —
Tred R. Eyerly - Insurance Law HawaiiCoverage was denied under the policy’s condominium exclusion in California Traditions, Inc. v. Claremont Liability Ins. Co.,2011 Cal. App.LEXIS912 (Cal. Ct. App., ordered published July 11, 2011).
California Traditions was the developer and general contractor for a housing development. California Traditions subcontracted with Ja-Con to perform the rough framing work for 30 residential units. The project had 146 separate residences that were freestanding with no shared walls, roof, halls, or plumbing or electrical lines. To allow a higher density development, the project was developed, marketed and sold as condominiums.
The purchaser of one of the units filed a complaint against California Traditions alleging property damage from the defective construction. California Traditions cross-complained against Ja-Con.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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