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DIRECTORY AND CAPABILITIES

Let’s Get Surety Podcast – #126 Building the Future: AI, Construction and Law

December 31, 2024 — Denis Serkin - Peckar & Abramson, P.C.
Denis Serkin, partner in P&A’s New York and New Jersey offices, joins the latest episode of the NASBP podcast “Let’s Get Surety” to delve into the transformative impact of AI on the construction industry and construction law. In this insightful discussion, Denis explores how AI tools are already enhancing design and supply chains and shares his vision for AI’s eventual integration across every facet of the industry. Read the court decision
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Reprinted courtesy of Denis Serkin, Peckar & Abramson, P.C.
Mr. Serkin may be contacted at dserkin@pecklaw.com

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$24 Million Verdict Against Material Supplier Overturned Where Plaintiff Failed To Prove Supplier’s Negligence Or Breach Of Contract Caused A SB800 Violation

June 05, 2017 — Jon A. Turigliatto & Chelsea L. Zwart - CGDRB News & Publications
The Fourth District California Court of Appeal published its decision, Acqua Vista Homeowners Assoc. v. MWI, Inc. (2017) 7 Cal.App.5th 1129, holding that claims against a material supplier under SB800 (Civil Code §895, et. seq.) require proof that the SB800 violation was caused by the supplier’s negligence or breach of contract. In this case, Acqua Vista Homeowners Association (“the HOA”) sued MWI, a supplier of Chinese pipe used in the construction of the Acqua Vista condominium development. The HOA’s complaint asserted a single cause of action for violation of SB800 standards, and alleged that defective cast iron pipe was used throughout the building. At trial, the HOA presented evidence that the pipes supplied by MWI contained manufacturing defects, that they leaked, and that the leaks had caused damage to various parts of the condominium development. The jury returned a special verdict against MWI, and the trial court entered a judgment against MWI in the amount of $23,955,796.28, reflecting the jury’s finding that MWI was 92% responsible for the HOA’s damages. MWI filed a motion for a directed verdict prior to the jury’s verdict and motion for judgment notwithstanding the verdict following the entry of judgment, both on the grounds that the HOA had failed to present any evidence that MWI had caused a SB800 violation as a result of its negligence or breach of contract, and had therefore failed to prove negligence and causation as required by SB800. MWI relied on the Fourth District’s prior decision in Greystone Homes, Inc. v. Midtec, Inc. (2008) 168 Cal.App.4th 1194, and its interpretation therein of Civil Code §936, which states, in relevant part, that the statute applies “to general contractors, subcontractors, material suppliers, individual product manufacturers, and design professionals to the extent that the general contractors, subcontractors, material suppliers, individual product manufacturers, and design professionals caused, in whole or in part, a violation of a particular standard as the result of a negligent act or omission or a breach of contract….” (emphasis added.) However, the trial court denied both motions, relying on the last sentence of Civil Code §936, which states in part, “[T]he negligence standard in this section does not apply to any…material supplier…with respect to claims for which strict liability would apply.” Reprinted courtesy of Jon A. Turigliatto, Chapman Glucksman Dean Roeb & Barger and Chelsea L. Zwart, Chapman Glucksman Dean Roeb & Barger Mr. Turigliatto may be contacted at jturigliatto@cgdrblaw.com Ms. Zwart may be contacted at czwart@cgdrblaw.com Read the court decision
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“Other Insurance” and Indemnity Provisions Determine Which Insurer Must Cover

September 01, 2011 — Tred R. Eyerly - Insurance Law Hawaii

A policy’s “other insurance” clause and a contractual indemnity provision were at the root for determining which of two insurers had to cover for injuries at a construction site. Valley Forge Ins. Co. v. Zurich Am. Ins. Co., 2011 U.S.Dist. LEXIS 76061 (N.D. Calif. July 14, 2011).

Hathaway was the general contractor at a demolition and construction project. Hathaway was insured by Zurich. Reinhardt Roofing was the roofing subcontractor. Reinhardt was insured by Valley Forge under a policy which named Hathaway as an additional insured. The subcontract also required Reinhardt to indemnify Hathaway for acts or omissions arising from Reinhardt’s work unless Hathaway was solely negligent.

Four of Reinhardt’s workers were injured when a canopy roof on which they were working collapsed. At the time of the accident, Hathaway’s on-site supervisor was inspecting a gap in the canopy roof, but did not order Reinhardt’s workers to stop working. 

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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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Roof's "Cosmetic" Damage From Hail Storm Covered

August 19, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Seventh Circuit affirmed the district court's determination that cosmetic damage to the insured's roof was covered. Advance Cable Co., LLC v. Cincinnati Ins. Co., 2015 U.S. App. LEXIS 9805 (7th Cir. June 11, 2015). The insured submitted a claim to its insurer, Cincinnati, for damage to the metal roof of its building caused by a hail storm. The insured inspected the roof with a claims representative for Cincinnati. Dents were spotted, but there was little other evidence of damage. The loss was estimated at $1,894.74. A check for this amount was sent to the insured. Six months later, the insured considered selling the building. A potential buyer inspected the roof and found hail damage. At the request of the insured, Cincinnati conducted another inspection of the roof. Again, dents of approximately 1 inch in diameter were found. The inspector noted that the denting would not affect the performance of the roof panels or detract from their life expectancy. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Feds Used Wire to Crack Las Vegas HOA Scam

July 31, 2013 — CDJ STAFF
Court documents have revealed that the FBI used informants wearing listening devices in order to uncover the plan to take over Las Vegas area homeowner associations with the intent of bilking the residents through backdoor agreements on construction defect claims. The Las Vegas Review-Journal notes one important step was when the FBI managed to get a member of the Mission Pointe board to act as an informant. The FBI informant was recruited by one of the conspirators, Sami Robert Hindiyeh. The informant eventually spoke with Benzer himself. The plan was to convince the community manager of Mission Pointe to take bribes, all part of rigging the board election. At one point, the informant was paid $20,000 for his help in convincing the manager to take part. The manager had agreed to play along in the FBI sting. Ralph Priola, one of the conspirators, told the informant that “as long as we keep everything on the up and up, that’s the way our company operates.” Later Priola asked the informant if legitimate ballots could be swapped out for those voting for Benzer’s candidates. But the election didn’t happen. The FBI raided Benzer’s office, bringing the scam to its end. Read the court decision
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Former Mayor Arrested for Violating Stop Work Order

October 30, 2013 — CDJ STAFF
The former mayor of Springfield, Florida has been arrested on charges of insurance fraud. More than a year ago, an investigator for the Bureau of Workers’ Compensation found that an employee of Walker’s construction company was working without workers’ compensation and issued a stop work order. Walker’s employees continued work. The charges were delayed because Walker challenged the stop work order. Once it was determined that the stop work order was issued properly, Walker was charged with a third-degree felony. Read the court decision
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Pennsylvania Supreme Court: Fair Share Act Does Not Preempt Common Law When Apportioning Liability

March 09, 2020 — Mark T. Caloyer & Joelle Nelson - Lewis Brisbois Newsroom
On February 19, 2020, the Pennsylvania Supreme Court issued a long awaited opinion in the matter of Roverano v. John Crane, Inc., No. 26 EAP 2018, No. 27 EAP 2018 (Pa. 2020). The Court’s opinion is a must-read for anyone involved in asbestos litigation in Pennsylvania. In Roverano, the Court ruled that Pennsylvania’s Fair Share Act (42 Pa.C.S. § 7102) does not preempt Pennsylvania common law favoring per capita apportionment of liability to strict liability defendants. In addition, the Court ruled that bankruptcy trusts, that are either joined as third-party defendants or that have entered into a release with the plaintiff, may be included on the verdict sheet for purposes of liability. In this case, Mr. Roverano sued 30 defendants in strict liability and Defendant Crane filed a joinder complaint against Johns-Manville Personal Injury Trust. The case proceeded to trial against eight defendants in the Court of Common Pleas of Philadelphia County. At trial, some of the defendants filed motions in limine seeking a ruling that the Fair Share Act applied to asbestos cases. The trial court denied the motion, concluding that asbestos exposure cannot be quantified, and held that that it would apportion liability on a per capita basis consistent with the Court’s opinion in Baker v. AC&S, 755 A.2d 664 (Pa. 2000). Reprinted courtesy of Mark T. Caloyer, Lewis Brisbois and Joelle Nelson, Lewis Brisbois Mr. Caloyer may be contacted at Mark.Caloyer@lewisbrisbois.com Ms. Nelson may be contacted at Joelle.Nelson@lewisbrisbois.com Read the court decision
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The “Climate 21 Project” Prepared for the New Administration

December 21, 2020 — Anthony B. Cavender - Gravel2Gavel
This is a brief review of the recently released “Climate 21 Project” policy memo. It is the work of many former members of the Obama Administration who are deeply concerned about climate change and what steps the new administration can take in the first 100 days to confront a problem. Offering “actionable advice” rather than a policy agenda, the group recognizes that Congress must do its part by providing new statutory authorities within the early days of the new administration, and the President must be prepared to aggressively exercise the powers of his office. As the members of the Group see it, there are four interlocking crises facing the President: (a) the COVID-19 pandemic; (b) the economic devastation visited upon many people by the pandemic; (c) racial injustice; and (d) accelerating threats posed by climate change. Accordingly: 1. The Executive Office of the President must take stronger steps to reduce greenhouse gas emissions through domestic investment, rulemakings, policy changes, and international diplomacy. A new Special Assistant for Climate Change must be created to take charge of these climate change initiatives. There should also be established in the Executive Office of the President a National Climate Change Council. All agencies must be advised of the urgency of this problem. The paper seems to envision a substantial growth in the White Hose staff. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

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