No Occurrence Found for Damage to Home Caused by Settling
October 22, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe Nebraska Supreme Court found the insurer properly denied coverage to the general contractor for damage to a home caused by settlement. Cizek Homes, Inc. v. Columbia Nat. Ins. Co., 2014 Neb. LEXIS 152 (Neb. Sept. 9, 2014).
The general contractor built and then sold the residence. Subsequently, the homeowners complained that the soil beneath their residence was settling and causing damage to their home. The homeowners presented a draft complaint to the general contractor, alleging that negligence and faulty workmanship had caused damage to the home.
The general contractor notified its carrier, Columbia. Coverage was denied.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
NEW DEFECT WARRANTY LAWS – Now Applicable to Condominiums and HOAs transitioning from Developer to Homeowner Control. Is Your Community Aware of its Rights Under the New Laws?
February 07, 2014 —
Nicholas D. Cowie – Maryland Condo Construction Defect Law BlogAll condominium associations and homeowners associations (“HOAs”) created in Maryland 0n or after October 1, 2010 are subject to new laws pertaining to statutory warranties for construction defects in workmanship and materials.
Most associations that have recently transitioned, or that are about to transition, from developer to homeowner control were created on after October 1, 2010. It is now time for these Associations to become familiar with the new laws to ensure they protect and preserve their warranty rights. Below is an Article I wrote regarding these new laws, which I helped create. See Blog Post: “Maryland Construction Defect Lawyers Enforcing Warranty Claims for Condominiums.”
Too often our firm is contacted by condominium associations who never knew what there warranty and other legal rights were until it was too late to seek developer repairs and reimbursement for construction defects. There is no reason for community associations to remain uniformed.
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Nicholas D. Cowie, Maryland Condo Construction Defect Law BlogMr. Cowie may be contacted at
ndc@cowiemott.com
Congratulations to San Diego Partner Johnpaul Salem and Senior Associate Scott Hoy for Obtaining a Complete Defense Verdict!
November 13, 2023 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPPartner Johnpaul Salem and Senior Associate Scott Hoy just concluded a 4-week trial defending a local renowned hotel in San Diego. Plaintiff alleged premises liability against BWB&O’s client arguing plaintiff was injured while riding in an elevator due to alleged negligent maintenance and inspection. Plaintiff brought in a “hired gun” elevator expert from Missouri and sought $25 million in damages for two fractured ankles, a compound tibia fracture, and lifelong CRPS/PTDS/anxiety. BWB&O argued any injuries sustained were a direct result of Plaintiff’s actions. After a passionate and powerful closing argument by Mr. Salem, attacking the foundation of Plaintiff’s expert’s opinions and presenting vigilance of the hotel in the safety of its guests, the jury unanimously ruled in BWB&O’s client’s favor.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
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Insurers in New Jersey Secure a Victory on Water Damage Claims, But How Big a Victory Likely Remains to be Seen
April 03, 2019 —
Kevin Sullivan - TLSS Insurance Law BlogProperty insurance policies commonly cover water damage caused by an accidental discharge or leakage of water from an on-site plumbing system and commonly exclude water damage caused by a sewer backup. So it’s not surprising that the cause of water damage is a common battleground between policyholders and insurers. In Salil v. Ohio Security Insurance Co., 2018 WL 6272930 (N.J. App. Div. Dec. 3, 2018), insurers scored a victory when the court held that the release of water and sewage into a restaurant was subject to a $25,000 sublimit for water damage caused by a sewer backup. But claims adjusters and policyholders confronted with water damage claims in New Jersey will no doubt continue to do battle over whether the Salil decision was a decisive victory for insurers or a limited one.
In Salil, the insured landlord leased its building to a restaurant operator. After the insured’s tenant reported water and odor at the restaurant, the insured contacted a plumber, who informed the insured that a clog in the restaurant’s toilet caused Category 3 water to flow into the restaurant. The insured allegedly sustained approximately $160,000 in restoration costs and loss of business income. The plumber used a snake to clear the sewer line to remedy the issue. The restoration company confirmed the cause of the loss was a sewer back up. On this basis, the insurer determined that the cause of loss was a sewer backup. The policy excluded coverage for water damage caused by a sewer back-up, but an endorsement restored that coverage, subject to a $25,000 sub-limit for “direct physical loss or damaged caused by water… which backs up into a building or structure through sewers or drains which are directly connected to a sanitary sewer or septic system.” Pursuant to this endorsement, the insurer paid its $25,000 sublimit.
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Kevin Sullivan, Traub LiebermanMr. Sullivan may be contacted at
ksullivan@tlsslaw.com
Retaining Wall Contractor Not Responsible for Building Damage
July 20, 2011 —
CDJ STAFFThe Court of Appeals of Indiana ruled on July 8 in the case of Rollander Enterprises, Inc. v. H.C. Nutting Co. Judge Baily wrote the opinion affirming the decision of the trial court.
The case involved an unfinished condominium complex, the Slopes of Greendale, in Greendale, Indiana. Rollander is a real estate development company incorporated in Ohio. One of the issues in the case was whether the case should be settled in the Indiana courts or be tried in Ohio. The project was owned by a special purpose entity limited liability corporation incorporated in Indiana.
Rollander hired Nutting to determine the geological composition of the site. Nutting’s report described the site as “a medium plastic clay containing pieces of shale and limestone.” The court summarized this as corresponding with “slope instability and landslides.” Rollander then hired Nutting to design the retaining walls, which were constructed by Scherziner Drilling.
After cracking was discovered on State Route 1, the walls were discovered to be inadequate. More dirt was brought in and a system of tie-backs was designed to anchor the walls. Not only were the tie-backs unsightly, local officials would not approve the complex for occupancy. Further, the failure of the wall below one building lead to damage of that building.
The court concluded that since almost all events occurred in Indiana, they rejected Rollander’s contention that the case should be tried in Ohio. Further, the court notes “the last event making Nutting potentially liable on both claims was an injury that occurred in Indiana and consequently, under the lex loci delicti analysis, Indiana law applies.”
Nor did the court find that Nutting was responsible for the damage to the rest of the project, citing an Indiana Supreme Court ruling, that “there is no liability in tort to the owner of a major construction project for pure economic loss caused unintentionally by contractors, subcontractors, engineers, design professionals, or others engaged in the project with whom the project owner, whether or not technically in privity of contract, is connected through a network or chain of contracts.”
The court concluded:
Because Rollander was in contractual privity with Nutting, and Indy was connected to Nutting through a chain of contracts and no exception applies, the economic loss rule precludes their recovery in tort. Damage to Building B was not damage to "other property," and the negligent misrepresentation exception to the economic loss rule is inapplicable on these facts. The trial court therefore did not abuse its discretion by entering judgment on the evidence in favor of Nutting on the Appellants' negligence and negligent misrepresentation claims.
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Narberth Mayor Urges Dubious Legal Action
June 15, 2017 —
Wally Zimolong - Supplemental ConditionsWhen I left Philadelphia, I thought I had largely left NIMBY zoning disputes behind. However, I quickly learned that the Main Line NIMBY is simply a tiger of a different stripe (and better financed and represented than their Philadelphia brethren).
One dispute that recently caught my attention concerns the proposed demolition of a 120 year old church in Narberth. A developer wishing to demolish a church and develop apartments and drawing the ire of certain neighbors is something that is routine in Point Breeze or Fishtown. However, apparently the same is true on the Main Line. At issue in the case, is a restriction contained in a 1891 deed that apparently states that only a church can be built on the property. (The article discussing the case does not quote the precise language of the purported restriction.)
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Mental Health and Wellbeing in Construction: Impacts to Jobsite Safety
August 16, 2021 —
NAHB - NWFA and Hardwood Floors MagazineThis article originally appeared in the National Wood Flooring Association's Hardwood Floors Magazine.
In the construction industry, workplace safety efforts have often focused on eliminating the most-common causes of on-the-job accidents, such as falls, being struck by or caught in-between objects, electrocutions, or being exposed to hazardous chemicals and substances. For more than two decades, the National Association of Home Builders (NAHB) has been at the forefront of enhancing physical safety and health in residential construction. NAHB takes proactive steps to keep members and affiliated state and local associations informed and educated about safety and health issues and trends affecting the building industry, including developing safety and health resources to help builders and contractors operate safe jobsites and lower workers’ compensation costs.
However, we recently have learned that construction workers are particularly susceptible to mental health issues and suicide – which is a silent killer in construction, and we know that the home building industry is not immune to the issues in the construction industry at large. We also know that industry associations have a role to play in promoting the importance of worker health and well-being to their member organizations. Helping to create sustainable workplaces and healthy, thriving professionals strengthens the industry and deepens the volunteer leadership bench. In addition to the benefits to the association, workplace well-being is good for employee health and retention, may reduce the cost of insurance, sick time, and employee turnover, and increase productivity. This can be accomplished by addressing mental well-being as part of overall safety – both physical and psychological.
How big is this problem of mental health and suicides in construction? According to the Centers for Disease Prevention and Control (CDC), the construction industry has one of the highest rates of death by suicide compared to other industries. In 2017, the suicide rate for construction workers was 53.3 per 100,000 workers, which is nearly five times greater than the rate for all fatal work-related injuries in construction (9.5 per 100,000 workers) from the physical hazards companies focus on eliminating.
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NAHB
The Pandemic of Litigation Sure to Follow the Coronavirus
March 30, 2020 —
Aaron Lovaas - Newmeyer DillionAs the Coronavirus crisis persists, America’s richly diverse private business sector finds itself increasingly subject to unprecedented governmental orders and restrictions that were unheard of only a few weeks ago. While the various “shutdown,” “shelter in place,” and “non-essential business” orders all aim to protect the public health, there is no doubt that the wave of litigation to follow is already swelling.
Business interruption, civil authority, and cyber insurance coverages have already been widely discussed as issues certain to be litigated over the coming months and beyond. Additionally, breach of contract litigation is likely to spike as parties attempt to recoup their losses from canceled events, unfulfilled purchase commitments and other unmet obligations.
Moreover, regional and national businesses are now in the difficult position of managing their respective affairs to comply with a patchwork of executive orders that are inconsistent from state to state. And, as the pandemic wears on, many are questioning the authority under which some of these executive orders and emergency regulations are being issued in the first place. Indeed, constitutional challenges are almost certain to follow as the business community reframes the characterization of their losses into notions of unconstitutional takings of private property and governmental impairment of private contract rights.
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Aaron Lovaas, Newmeyer DillionMr. Lovaas may be contacted at
aaron.lovaas@ndlf.com