Summary Judgment for Insurer Reversed Based on Expert Opinion
May 30, 2022 —
Tred R. Eyerly - Insurance Law HawaiiAfter the trial court discounted the insured's expert witness and granted summary judgment to the insurer, the Florida District Court of Appeal reversed. Morales v. Citizens Prop. Ins. Corp., 2022 Fla. App. LEXIS 1831 (Fla. Ct. App. March 15, 2022).
The insureds' property was allegedly damaged by Hurricane Irma in 2017. They filed a claim with Citizens. Citizens sent its adjuster and eventually denied the claim because the policy did not cover damages caused by wear and tear. Further, there was no coverage for loss caused by "rain . . . unless a covered peril first damages the building causing an opening in a roof or wall and the rain . . . enters through this opening."
The insureds sued and Citizens moved for summary judgment. At the hearing, Citizens' expert, a civil engineer, concluded that there were no storm-created openings in the roof. The insureds engaged a licensed contractor, Steven Delgado, who stated that he found significant damage to the roofing system and water intrusion through the roof. He observed loose shingles which were most likely damaged during Hurricane Irma, allowing for high winds and airborne debris to create small openings permitting water intrusion.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
But Wait There’s More: Preserving Claims on Commonwealth Projects
February 07, 2018 —
Wally Zimolong - Supplemental Conditions BlogOn construction projects owned by the Commonwealth of Pennsylvania, a contractor may make a claim with the Board of Claims. But first, you must be aware of two limitations periods that could cause you to waive your claim if they are not met.
Read the court decisionRead the full story...Reprinted courtesy of
Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
“License and Registration, Please.” The Big Risk of Getting Busted for Working without a Proper Contractor’s License
July 25, 2021 —
Christopher A. Henry & Mia Hughes - ConsensusDocsThe need for contractors to maintain the proper contracting license may seem like a mundane, clerical detail, and generally is just that. If, however, the contractor ignores or mishandles paperwork and the proper license is not in hand, licensing may go from a mundane, clerical detail to a financial catastrophe. An unlicensed contractor may be barred from asserting claims or collecting payments for work already performed; the contractor may even be required to return payments for unlicensed work performed.
A recent case in Georgia, a state that had no state-wide general contractor’s license requirement in effect until 2008 illustrates the risk of unlicensed work.[1] In Saks Management and Associates, LLC v. Sung General Contracting, Inc.,[2] the court ruled that without a license the general contractor did not have the right to enforce a contract. The contractor’s claims for payment failed, and the mundane, clerical error led a major financial loss. This disastrous result for the Georgia contractor is far from an outlier, and is a real risk in many states.
Reprinted courtesy of
Christopher A. Henry, Jones Walker LLP and
Mia Hughes, Jones Walker LLP
Mr. Henry may be contacted at chenry@joneswalker.com
Read the court decisionRead the full story...Reprinted courtesy of
Biggest U.S. Gas Leak Followed Years of Problems, State Says
June 10, 2019 —
Mark Chediak & Edvard Pettersson - BloombergThe worst natural gas leak in U.S. history, which broke out at a Sempra Energy storage field near Los Angeles almost four years ago, was caused by corrosion, according to a report commissioned by California regulators.
The rupture of a 7-inch (18-centimeter) well casing at Sempra Energy’s Aliso Canyon storage complex was due to “microbial corrosion” brought on by contact with groundwater, an independent analysis conducted by Blade Energy Partners and commissioned by two state agencies found.
The report also concluded there had been more than 60 leaks in the field dating back to the 1970s, and Sempra didn’t carry out detailed inspections after they occurred, the California Public Utilities Commission and Department of Conservation said in a joint statement. The company’s Southern California Gas lacked “any form of risk assessment” to manage the integrity of its wells and hadn’t established systematic practices to protect against corrosion and monitor well pressure, the agencies said.
Reprinted courtesy of
Mark Chediak, Bloomberg and
Edvard Pettersson, Bloomberg
Read the court decisionRead the full story...Reprinted courtesy of
Florida District Court Finds That “Unrelated” Design Errors Sufficient to Trigger “Related Claims” Provision in Architects & Engineers Policy
March 02, 2020 —
Jason Taylor - Traub LiebermanMost professional liability polices include some form of a “related claims” provision that generally provides where two or more claims or wrongful acts are causally or logically related, they will be deemed to constitute a single claim. Importantly, these provisions typically provide that those “claims” are then deemed to have been “first made” at the time the first claim or act was committed for purposes of the policy’s claims-made and reporting requirements. Understandably, these provisions provide insurers and insureds with some clarity over the number and timing of claims that could involve multiple errors or omissions, and potentially aggregate all related claims or acts into a single policy period. While reasonable in principle, application of such provisions, especially involving large scale design and construction projects, is not always so easy.
Nova Southeastern University, Inc. v. Continental Cas. Co., 18-cv-61842 (S.D. Fla. Dec. 27, 2019), involved such an insurance coverage dispute with a design project gone wrong. DeRose Design Consultants, Inc. (“DeRose”) was hired as a structural engineer to design “ice tanks” to store and chill water for an energy efficient air conditioning facility constructed on the campus of Nova Southeastern University (“NSU”). An early water test on one of the tanks determined the walls of the ice tank deflected, leaked, and cracked when the tank was filled with water. DeRose later discovered that the problems with the ice tank were caused by a structural design error.
The first errors were discovered in early 2009, and reported under DeRose’s professional liability policy with Evanston. DeRose then created a remedial design to repair the tanks, which involved strengthening repairs. Additional leaking and an early indication of corrosion involving the Remedial Design arose as early as October 25, 2009. Several field investigation reports were prepared in 2011 and 2012 confirming these issues with the Remedial Design. A third report in February 2012, however, identified a new error involving the concrete slab under the ice tanks also designed by DeRose. The third report concluded that the concreate slab was overstressed and could not handle the loads of the ice tanks. The report also concluded, however, that the design defects in the concrete slab were “unrelated” to the original design defect of the ice tank walls or Remedial Design.
Read the court decisionRead the full story...Reprinted courtesy of
Jason Taylor, Traub LiebermanMr. Taylor may be contacted at
jtaylor@tlsslaw.com
Liquidated Damages: A Dangerous Afterthought
January 15, 2019 —
Trevor B. Potter - Construction ExecutiveOwners and contractors frequently treat liquidated damages provisions as an afterthought, but they deserve to be treated as a key deal term. If a contractor breaches a contract by failing to complete the work in a timely manner, the remedy is typically an agreed upon amount or rate of liquidated damages.
Liquidated damages provisions seldom get more than a cursory, “back of the napkin” analysis, or worse, parties will simply plug in a number. This practice is dangerous because liquidated damages typically represent the owner’s sole remedy for delay and, more importantly, they are subject to attack and possible invalidation if certain legal standards are not met. The parties to a construction contract should never agree to an amount of liquidated damages without first attempting to forecast and calculate actual, potential damages.
Reprinted courtesy of
Trevor B. Potter, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Renovation Makes Old Arena Feel Brand New
February 15, 2021 —
Jim Parsons - Engineering News-RecordSince opening its doors in 1992, Phoenix’s downtown sports and entertainment arena has hosted hundreds of exciting contests involving the hometown Phoenix Suns and Phoenix Mercury professional basketball teams as well as high-profile concerts and other events.
Reprinted courtesy of
Jim Parsons, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of
Toolbox Talk Series Recap – Best Practices for Productive Rule 26(f) Conferences on Discovery Plans
May 13, 2024 —
Douglas J. Mackin - The Dispute ResolverIn the April 4, 2024 edition of Division 1’s Toolbox Talk Series,
Julian Ackert and
Steve Swart presented on how to prepare for and structure Rule 26(f) conferences to be more effective. While Swart and Ackert focused on the requirements of Federal Rule of Civil Procedure 26(f) regarding the requisite conference of the parties prior to a scheduling conference or scheduling order, it is worth noting that many states have substantially similar requirements.
Rule 26(f) requires the parties to (i) discuss the nature and basis of their claims or defense; (ii) make or arrange for mandatory disclosures pursuant to Rule 26(a)(1); (iii) discuss issues about preserving discoverable information (including Electronically Stored Information – “ESI”); and (iv) develop a proposed discovery plan. Swart and Ackert’s presentation focused on the preservation of ESI and the proposed discovery plan.
Read the court decisionRead the full story...Reprinted courtesy of
Douglas J. Mackin, Cozen O’ConnorMr. Mackin may be contacted at
dmackin@cozen.com