Columbus Ohio Building Expert Directory

Jet Crash Blamed on Runway Construction Defect

December 11, 2013 — CDJ STAFF
The Old Republic Insurance Company is suing Macon, Georgia, claiming that the runway was improperly built, leading to the crash of the corporate jet of one of their clients. The insurer paid out $1 million to the owner of the jet. Now it seeks to recover that from the city, claiming the runway was both too short and built in a manner that caused rainwater to pool. Read the court decision
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Final Thoughts on New Pay If Paid Legislation in VA

August 15, 2022 — Christopher G. Hill - Construction Law Musings
This past General Assembly session, and after a governor’s amendment and with the convening of a study group, a new statute banning so-called “pay-if-paid” clauses from enforcement was passed. Some of the key features of the legislation are as follows: It does not take effect until January 1, 2023, and, For those construction contracts in which there is at least one general contractor and one subcontractor:

It requires payment within 60 days of receipt of an invoice following the satisfactory performance of the work or within 7 days of receipt of payment by the Owner
It allows for retainage
It allows the higher-tier contractor to withhold money for improper performance

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Judge Halts Sale of Brazilian Plywood

June 06, 2022 — Beverley BevenFlorez – CDJ Staff
A permanent injunction was issued by Judge Roy Altman in a Ft. Lauderdale federal court on May 24th that requires the revocation of all PS 1 certificates that were issued by PFS-TECO to more than a dozen Brazilian mills that produced structural plywood for the U.S. market, reported Business Wire. “This case highlights how a few bad actors profited by essentially looking the other way while substandard, and potentially dangerous plywood was imported into the U.S. and used to build homes and businesses,” Michael Haglund, counsel representing the U.S. Structural Plywood Integrity Coalition, of Haglund Kelley, LLP, told Business Wire. Building codes throughout the U.S. require the use of PS 1 structural plywood in construction. "If product standards are not being met, there can be serious implications for all homes constructed using those substandard wood panel products," Tyler Freres, VP of Sales for Freres Engineered Wood, told CDJ. "Contractors and homeowners should be able to trust that U.S. certification agencies are doing their due diligence to accurately inspect panels, ensuring consumers' health and safety." The U.S. Structural Plywood Integrity Coalition, including nine family-owned U.S. plywood manufacturers, alleged that PFS-TECO falsely certified that plywood from Brazil met U.S. structural integrity requirements. This substandard plywood has been used throughout the U.S. In particular, it was used during the hurricane reconstruction efforts in Florida and Puerto Rico due to its cheaper price. In 2021, Brazilian plywood made up 11% of the U.S. supply with nearly 1.2 billion square feet sold. Read the court decision
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Fifth Circuit Holds Insurer Owes Duty to Defend Latent Condition Claim That Caused Fire Damage to Property Years After Construction Work

October 05, 2020 — Jeremy S. Macklin - Traub Lieberman Insurance Law Blog
Most general liability policies only provide coverage for “property damage” that occurs during the policy period. Thus, when analyzing coverage for a construction defect claim, it is important to ascertain the date on which damage occurred. Of course, the plaintiffs’ bar crafts pleadings to be purposefully vague as to the date (or period) of damage to property. A recent Fifth Circuit decision applying Texas law addresses this coverage issue in the context of allegations of a condition created by an insured during the policy period that caused damage after the policy expired. In Gonzalez v. Mid-Continent Cas. Co., 969 F.3d 554 (5th Cir. 2020), Gilbert Gonzales (the insured) was a siding contractor. In 2013, the underlying plaintiff hired Gonzales to install new siding on his house. In 2016, the underlying plaintiff’s house was damaged in a fire. The underlying plaintiff sued Gilbert in Texas state court alleging that when Gonzalez installed the siding in 2013, he hammered nails through electrical wiring and created a dangerous condition that caused a fire three years later in 2016. At the time Gilbert performed construction work, he was insured by Mid-Continent Casualty Company. Mid-Continent disclaimed coverage to Gonzales on the basis that the complaint unequivocally alleged that property was damaged in 2016 and there were no allegations that property damage occurred prior to 2016 or was continuing in nature. Read the court decision
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Reprinted courtesy of Jeremy S. Macklin, Traub Lieberman
Mr. Macklin may be contacted at jmacklin@tlsslaw.com

No Coverage for Repairs Made Before Suit Filed

August 22, 2022 — Tred R. Eyerly - Insurance Law Hawaii
After a hurricane damaged the building the insured was constructing, there was no coverage under the CGL policy for repairs the insured made in the absence of a suit being filed. Planet Construction J2911 LLC. v. Gemini Ins. Co., 2022 U.S. Dist. LEXIS 105468 (W.D. La. June 13, 2022). Planet Construction was a general contractor hired to build a fitness club. On August 27, 2020, Hurricane Laura struck the area. After the storm, a pipe in the sprinkler system broke, allegedly due to faulty materials and workmanship by a subcontractor, S&S Sprinkler. Planet Construction sought coverage under its policy with Gemini as well as under S&S's policy with Zurich. Both insurers denied coverage and Planet Construction filed suit. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

In South Carolina, Insurer's Denial of Liability Does Not Waive Attorney-Client Privilege for Bad Faith Claim

October 14, 2019 — Ashley L. Cooper & Bethany L. Barrese - Saxe Doernberger & Vita, P.C.
Determining the scope of discovery can be challenging, particularly when an insurance bad faith claim is involved. Courts often face the difficult decision of weighing the importance of preserving attorney-client privilege with the public policy rationale of protecting an insured against their insurer’s bad faith behavior. The Supreme Court of South Carolina recently recognized this dilemma by rejecting a hardline approach to bad faith discovery disputes and adopting a case-by-case analysis. The case, In re Mt. Hawley Ins. Co.,1 arose out of a construction defect claim. ContraVest Construction Company (“ContraVest”) constructed a development in South Carolina and was later sued for alleged defective construction. ContraVest sought coverage for the lawsuit from its insurers, including Mount Hawley Insurance Company (“Mount Hawley”), which had provided excess commercial liability insurance to ContraVest during the relevant timeframe. Mount Hawley denied the claim, which prompted ContraVest to sue it for bad faith, breach of contract, and unjust enrichment. Reprinted courtesy of Ashley L. Cooper, Saxe Doernberger & Vita, P.C. and Bethany L. Barrese, Saxe Doernberger & Vita, P.C. Ms. Cooper may be contacted at alc@sdvlaw.com Ms. Barrese may be contacted at blb@sdvlaw.com Read the court decision
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The Construction Industry's Health Kick

October 02, 2018 — Erin Ansley - Construction Executive
The construction industry appears to be on a health kick, and by all accounts it isn’t a fad. Trends identified in recent years in the health care sector are strengthening with a surge of new projects nationwide. “All parts of the country are experiencing significant health care design and construction activity,” observes Hank Adams, HDR’s global director of health. “We’re expecting continued growth into the near future and feel optimistic that the marketplace will continue to be strong.” Modern urban planning strategies, engineering advancements and sophisticated design take center stage as oversized hospitals serving large patient populations within a 100-mile radius make way for more specialized centers that target the overall wellness of the local community. Reprinted courtesy of Erin Ansley, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Partner Jonathan R. Harwood Obtained Summary Judgment in a Case Involving a Wedding Guest Injured in a Fall

December 30, 2019 — Jonathan R. Harwood - Traub Lieberman Perspectives
On September 30, 2019, Traub Lieberman partner Jonathan Harwood obtained summary judgment in an action involving a guest injured in a fall at a wedding. Traub Lieberman’s client owned the property where the fall occurred. Plaintiff fell while exiting a row of seats after the bridal party had recessed down the aisle. Plaintiff claimed that she tripped over the raised side of a paper runner that had been placed in the aisle at the property. Plaintiff brought an action against Traub Lieberman’s client (the owner of the building) and the florist that had provided the runner. The owner had provided the bridal party with access to the property but did not assist in the set up for the wedding or have any employees present during the ceremony. The florist had supplied the runner for the wedding. The florist commenced a third-party action against the bride, whose wedding party had actually placed the runner in the aisle. Plaintiff asserted that the runner had become bunched and crumpled during the ceremony, creating a dangerous condition. She further asserted that the owner was responsible for her injuries since the dangerous condition existed on its property and it should have an employee present to insure no dangerous conditions existed. During the course of discovery, Mr. Harwood established that no one representing the owner was present during the wedding, had any involvement in the placement of the runner or had received any complaints about the runner. In support of the motion for summary judgment Mr. Harwood introduced pictures showing, in conjunction with deposition testimony, that there were no problems with the runner minutes before plaintiff’s fall. Mr. Harwood also argued that the alleged defect did not involve the property itself, absolving the owner of any obligation to plaintiff. In granting the motion for summary judgment, the court held that evidence and testimony showed that the owner neither created the condition nor had actual or constructive notice that any dangerous condition existed. The court also held that there the owner did not have any duty to have a representative present during the wedding since the property itself was not dangerous or defective. Finally, the court held that the condition of the runner was open and obvious and not inherently dangerous. Read the court decision
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Reprinted courtesy of Jonathan R. Harwood, Traub Lieberman
Mr. Harwood may be contacted at jharwood@tlsslaw.com

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