Architects Should Not Make Initial Decisions on Construction Disputes
July 05, 2023 —
Bill Wilson - Construction Law ZoneA common provision often deleted from the standard form AIA documents is the provision in the AIA A201 General Conditions requiring an Initial Decision Maker (IDM) for claims between the contractor and owner. In the A201, the contracting parties have the option of naming their own IDM for the project. If an IDM is not selected (which is typically the case) the architect serves this role by default. While it is in all parties’ best interests to resolve disputes quickly and efficiently, using the architect as the IDM is not the best way to achieve such a resolution.
Several reasons work against using the architect as the IDM. Contractors typically don’t trust architects to be impartial in resolving disputes because the architect is paid by the owner. Most architects don’t have the temperament or any training to facilitate dispute resolution. An architect’s “initial decision” could even drive the parties further apart and lead to further issues later in the project. The architect may also be perceived to be part of the problem that led to the dispute in the first place. Also, many architects simply prefer to avoid serving the thankless role of an IDM altogether. Lastly, inserting the architect into the dispute resolution process as a required IDM adds an additional unnecessary step to dispute resolution, which can delay the overall procedure.
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Bill Wilson, Robinson & Cole LLPMr. Wilson may be contacted at
wwilson@rc.com
New York Developers Facing Construction Defect Lawsuit
June 26, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to The Real Deal, L Lofts condominium developers are involved in an eight million dollar lawsuit for “allegedly failing to correct extensive construction defects in the” Brooklyn, New York “building, including water leaks, defective roof construction and other alleged code violations.”
The L Lofts’ board filed suit against the American Development Group on June 19th. However, Perry Finkelman, partner and managing director at American Development Group claimed that the building had been hit by a tornado, making the allegations baseless: “While there may be issues, they weren’t properly addressed at the time. That’s not a sponsor’s responsibility to handle,” as quoted by The Real Deal.
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Insurer Has No Obligation to Cover Arbitration Award in Construction Defect Case
May 22, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe court determined there was no coverage for an adverse arbitration decision suffered by the insured in a construction defect case. Am. Fire and Cas. Co. v. Unforgettable Coatings, Inc., 2023 U.S. Dist. LEXIS 64846 (D. Nev. April 13, 2023).
Unforgettable contracted with Muirfield Village Homeowner's Association for painting and related services. Following completion of the project, Muirfield alleged that Unforgettable's work was defective and filed suit. The parties agreed to arbitration. The arbitrator found that Unforgettable breached the contract and its implied warranty. Damages were awarded to Muirfield.
American Fire and Casualty Company (AFCC) was Unforgettable's insurer and defended Unforgettable at the arbitration. AFCC sued for a declaration that it had no obligation to indemnify Unforgettable for the damages awarded. Unforgettable and Murifiled counterclaimed, alleging that AFCC breached the policy by not covering the award, as well as a variety of extracontractual claims related to the investigation process. AFCC moved for judgment on the pleadings. The motion was granted with leave to amend.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
OH Supreme Court Rules Against General Contractor in Construction Defect Coverage Dispute
October 30, 2018 —
Theresa A. Guertin - Saxe Doernberger & Vita, P.C.On October 9, 2018, the Ohio Supreme Court issued a decision in Ohio Northern University v. Charles Construction Services, Inc., Slip Op. 2018-Ohio-4057, finding that a general contractor was not entitled to defense or indemnity from its CGL insurer in a construction defect suit brought by a project owner post-project completion. With this decision, Ohio has solidified its place amongst a diminishing number of states, including Pennsylvania and Kentucky, which hold that there is no coverage for defective construction claims because those losses do not present the level of fortuity required to trigger CGL coverage. This places Ohio amongst the worst in the country on this issue at a time when numerous states have abandoned old precedent and moved towards a policyholder friendly analysis.
Ohio Northern University (“ONU”) hired Charles Construction Services, Inc. (“CCS”) to construct the University Inn and Conference Center, a new hotel and conference center on their campus in Ada, Ohio. CCS purchased CGL insurance from Cincinnati Insurance Company (“CIC”) insuring the project. Following completion of the project, ONU sued CCS alleging defects in the construction of the completed project, including allegations that windows improperly installed by one subcontractor led to damage to walls built by another subcontractor. CIC agreed to defend CCS under a reservation of rights but intervened in the action between ONU and CCS to pursue a declaratory judgment that it had no obligation to defend or indemnify its insured for the alleged losses.
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Theresa A. Guertin, Saxe Doernberger & Vita, P.C.Ms. Guertin may be contacted at
tag@sdvlaw.com
Alexander Moore Promoted to Managing Partner of Kahana Feld’s Oakland Office
May 08, 2023 —
Alexander R. Moore - Kahana FeldKahana Feld is pleased to announce that Alexander R. Moore, Esq., has been promoted to Managing Partner of our Oakland office. Mr. Moore has been at Kahana Feld since 2021 and is a member of the construction defect and general liability practice groups.
Mr. Moore has over 23 years of experience representing individual and commercial clients in complex disputes arising out of construction contracts, construction defect allegations, premises liability matters, landlord-tenant disputes, and contractual disputes arising out of various business relationships involving financial services companies, technology companies, telecommunications companies, real estate brokerages, non-profits, and a range of small businesses. When not focused on litigation, Mr. Moore enjoys consulting on transactional matters including the development of construction and business contracts. He has extensive experience evaluating rights and obligations under construction contracts and related insurance programs. He also assists clients in the implementation of pre-litigation risk management strategies.
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Alexander R. Moore, Kahana FeldMr. Moore may be contacted at
amoore@kahanafeld.com
“Source of Duty,” Tort, and Contract, Oh My!
September 06, 2023 —
Christopher G. Hill - Construction Law MusingsHere at Construction Law Musings, I have discussed the general rule in Virginia that
tort and contract do not mix. I have also discussed a
few narrow exceptions. A Virginia Supreme Court case from October of 2019 lays out both sides of this issue in one glorious opinion.
In
Tingler v. Graystone Homes, Inc., a summary of the facts and lawsuit(s) are as follows: Water leaks developed after the home was built. Graystone’s post-construction efforts to repair the leaks and remediate mold were unsuccessful. The Tinglers and their children abandoned the home after developing mold-related medical problems. The Tinglers and their children sued Graystone in tort for personal injury, property damage, and economic loss. In other litigation that will not be discussed in this post, but that is described in the opinion linked above, Belle Meade sued Graystone in contract for property damage and economic losses. George and Crystal Tingler filed a separate complaint alleging the same contract claims.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
The Future of Construction Work with Mark Ehrlich
February 19, 2024 —
Aarni Heiskanen - AEC BusinessIn this episode of the AEC Business
podcast, I had the pleasure of speaking with Mark Ehrlich, a veteran of the construction industry from the USA and the author of “The Way We Build: Restoring Dignity to Construction Work.” Our conversation delved into the evolving landscape of construction work and the challenges faced by construction workers today.
Mark shared his extensive background, starting as a carpenter and rising through the ranks to become the head of a 25,000-member union organization. His experience spans decades, and he has authored three books and numerous articles on labor issues.
The historical labor shifts
We discussed the historical shift from a predominantly unionized construction workforce to the current bifurcated system in the US, where union strongholds in the north contrast sharply with the non-union, lower-wage environments in the south and other regions. Mark highlighted the issues of wage theft, declining safety standards, and the exploitation of undocumented workers.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Shutdowns? What A Covid-19-Safe Construction Site Looks Like
April 20, 2020 —
ENR Editors - Engineering News-RecordThere’s no end to published opinions about construction project shutdowns where the widely different types of jobsites are reduced to a single Dickensian nightmare crying out to be closed during this COVID-19 pandemic.
ENR Editors
ENR may be contacted at ENR.com@bnpmedia.com
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