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    A Court-Side Seat – Case Law Update (February 2022)

    Montana Significantly Revises Its Product Liability Laws

    Musk’s Cousins Battle Utilities to Make Solar Rooftops Cheap

    U.S. District Court of Colorado Interprets Insurance Policy’s Faulty Workmanship Exclusion and Exception for Ensuing Damage

    Insurer Wrongfully Denies Coverage When Household Member Fails to Submit to EUO

    Pennsylvania: When Should Pennsylvania’s New Strict Products Liability Law Apply?

    Granting of Lodestar Multiplier in Coverage Case Affirmed

    Contract Should Have Clear and Definite Terms to Avoid a Patent Ambiguity

    One Nation, Under Renovation

    Insurer Beware: Failure to Defend Ends with Hefty Verdict

    US Court Disputes $1.8B AECOM Damage Award in ‘Remarkable Fraud’ Suit

    Landmark Contractor Licensing Case Limits Disgorgement Remedy in California

    Federal Miller Act Payment Bond Claim: Who Gets Paid and Who Does Not? What Are the Deadlines?

    AI in Construction: What Does It Mean for Our Contractors?

    Construction Defects and Warranties in Maryland

    Negligent Failure to Respond to Settlement Offer Is Not Bad Faith

    There is No Claims File Privilege in Florida, Despite What Insurers Want You to Think

    South Carolina Law Clarifies Statue of Repose

    Women Make Slow Entry into Building Trades

    Defend Trade Secret Act of 2016–-Federalizing Trade Secret Law

    Traub Lieberman Attorneys Burks Smith and Katie Keller Win Daubert Motion Excluding Plaintiff’s Expert’s Testimony in the Middle District of Florida

    When an Insurer Proceeds as Subrogee, Defendants Should Not Assert Counterclaims Against the Insured/Subrogor

    Can We Compel Insurers To Cover Construction Defect in General Liability Policies?

    Congratulations to BWB&O’s Newport Beach Team on Obtaining a Defense Verdict in Favor of their Subcontractor Client!

    New Washington Law Nixes Unfair Indemnification in Construction Contracts

    Dorian Lashes East Canada, Then Weakens Heading Out to Sea

    If You Purchase a House at an HOA Lien Foreclosure, Are You Entitled to Excess Sale Proceeds?

    Useful Life: A Valuable Theory for Reducing Damages

    Millennium’s Englander Buys $71.3 Million Manhattan Co-Op

    Loan Snarl Punishes Spain Builder Backed by Soros, Gates

    Home Prices in 20 U.S. Cities Rose in June at a Slower Pace

    NIBS Consultative Council Issues Moving Forward Report on Healthy Buildings

    More Details Emerge in Fatal Charlotte, NC, Scaffold Collapse

    Reinsurer Must Reimburse Health Care Organization for Settlement Costs

    The Year 2010 In Review: Design And Construction Defects Litigation

    Lawsuit Gives Teeth to Massachusetts Pay Law

    Ninth Circuit Holds Efficient Proximate Cause Doctrine Applies Beyond All-Risk Policies

    AECOM Out as General Contractor on $1.6B MSG Sphere in Las Vegas

    Tiny Houses Big With U.S. Owners Seeking Economic Freedom

    Construction Contracts and The Uniform Commercial Code: When Does it Apply and Understanding the Pre-Dominant Factor Test

    Happenings in and around the 2015 West Coast Casualty Seminar

    How Pennsylvania’s Supreme Court Decision Affects Coverage of Faulty Workmanship Claims

    Southern California Lost $8 Billion in Construction Wages

    Brooklyn’s Industry City to Get $1 Billion Modernization

    Delaware “occurrence” and exclusions j(5) and j(6)

    Best Practices: Commercial Lockouts in Arizona

    Eleventh Circuit Asks Georgia Supreme Court if Construction Defects Are Caused by an "Occurrence"

    Subcontractors Must be Careful Providing Bonds when General Contractor Does Not

    Haight’s Sacramento Office Has Moved

    ACS Recognized by Construction Executive Magazine in the Top 50 Construction Law Firms of 2021
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    Leveraging from more than 7,000 construction defect and claims related expert witness designations, the Fairfield, Connecticut Building Expert Group provides a wide range of trial support and consulting services to Fairfield's most acknowledged construction practice groups, CGL carriers, builders, owners, and public agencies. Drawing from a diverse pool of construction and design professionals, BHA is able to simultaneously analyze complex claims from the perspective of design, engineering, cost, or standard of care.

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    Fairfield, Connecticut

    Just When You Thought the Green Building Risk Discussion Was Over. . .

    May 25, 2020 —
    As a reader of Construction Law Musings, you no doubt realize that I am a big proponent of “green” or sustainable building. I have also been known to sound a bit like Eeyore when discussing the charge into the breach of green building without considering the potential risks. Thankfully, and despite some of the risk predictions made here (and elsewhere for that matter) there have not been but so many major court cases relating to these risks. However, as a recent article in ENR Magazine warns, this lack of litigation does not mean that you should let your guard down. Just because the economy, warnings by attorneys and others, and possible lack of financial incentive to sue have kept the litigation numbers down does not mean that the risks have gone away. LEED requirements, time horizons and other risks that have become evident during the process of vetting green building contracts and practices still must be dealt with in contracts and insurance policies. These risks are well laid out in the ENR article and in other places here at Musings so I won’t outline them in detail here. Read the court decision
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    Reprinted courtesy of The Law Office of Christopher G. Hill
    Mr. Hill may be contacted at chrisghill@constructionlawva.com

    Construction Law Alert: A Specialty License May Not Be Required If Work Covered By Another License

    March 07, 2011 —

    Contractors should always be sure that they understand the licensing in any Subcontract or Prime Contract before entering into any agreement. However, on March 3, 2011, in the case of Pacific Casson & Shoring, Inc. v. Bernards Bros., Inc. 2011 Cal.App.Lexis 236, the Court of Appeal determined that if a specialty license is subsumed within another license, the specialty license may not be required.

    Bernards entered into a subcontract with Pacific to excavate, backfill, grade and provide geotechnical design parameters for a hospital. The Prime Contract required the bidder to maintain a Class C-12 specialty earthwork license. However, Pacific only held a Class A general engineering license which it turns out was suspended during the performance of the work. Pacific sued Bernards for nonpayment of $544,567, but the lawsuit was dismissed because the trial court found that Pacific (1) lacked a C-12 license, and (2) Pacific’s Class A license was suspended for failure to pay an unrelated judgment. Pacific was also ordered to disgorge $206,437 in prior payments.

    The Court of Appeal reversed and remanded. The Court of Appeal agreed with Pacific and held that a C-12 specialty license was not required despite the Prime Contract. The Court of Appeal found that the C-12 specialty license would have been “superfluous” since it was fully encompassed within the Class A requirements. However, the Court of Appeal also remanded the case for further

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    Reprinted courtesy of Steve Cvitanovic of Haight Brown & Bonesteel, LLP.

    Read the court decision
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    Reprinted courtesy of

    Top 10 Take-Aways from the 2024 Annual Forum Meeting in New Orleans

    May 20, 2024 —
    Over 600 construction lawyers, experts, and consultants met in New Orleans last week for the Forum’s 2024 Annual Meeting where Program Coordinators Brenda Radmacher and Joseph Imperiale together with John Cook and Buck Beltzer put together an insightful program focused on all things construction litigation. Here are our 10 top take-aways from this unique program. 10. Don't underestimate the soft skills that are necessary to effectively represent your clients. There are different ways to measure success when it comes to construction litigation, according to Stephen Dale (WSP USA), Melissa Beutler Withy (Big-D), and Matthew Whipple (Wohlsen Construction). What these (and likely other inside counsel) will look for when retaining outside counsel is the ability to accurately forecast litigation expense and timely communicate case developments. Being able to master these "soft" skills is as important (if not more so) as an attorney's aptitude for trial advocacy. The in-house counsel who hire litigation counsel will be held accountable to deliver results on the investment they are making in legal fees. Outside counsel who cannot manage budgets or avoid surprises in the course of a case will not be successful as litigators. Reprinted courtesy of Marissa L. Downs, Laurie & Brennan, LLP and Brendan Witry, Laurie & Brennan, LLP Ms. Downs may be contacted at mdowns@lauriebrennan.com Mr. Witry may be contacted at bwitry@lauriebrennan.com Read the court decision
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    Reprinted courtesy of

    What If an Irma-Like Hurricane Hit the New York City Metro Area?

    September 20, 2017 —
    It sounds like a Hollywood disaster movie. A Category 5 hurricane churning in the mid-Atlantic suddenly veers northwest -- and heads straight for New York City. The good news is that, for now, experts agree a Cat 5-sized deluge appears to be a meteorological impossibility in the U.S. Northeast, given today’s sea temperatures and weather patterns. The bad news: A storm doesn’t need to pack the wallop of a Harvey or an Irma to knock out the region. Superstorm Sandy, whose wind speed was a relatively tame 80 miles per hour when it reached New Jersey, did $70 billion of damage in October 2012. Irma made landfall in Puerto Rico at 185 mph. Reprinted courtesy of Christopher Flavelle, Bloomberg and Henry Goldman, Bloomberg Read the court decision
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    Reprinted courtesy of

    Cumulative Impact Claims and Definition by Certain Boards

    June 21, 2024 —
    What is a cumulative impact claim? This is commonly referred to as the unforeseeable ripple effect of changes, i.e., the death by a thousand cuts. Cumulative impact claims refer to a disruption on productivity based on the cumulative impact of changes and their impact on unchanged work. Cumulative impact claims are difficult claims to prove, particularly based on the causation standpoint (and argument they could be released based on change order language). If pursuing or considering a cumulative impact claim, you will need to work with a consultant(s) and lawyer that understand the dynamic of these claims to best maximize your arguments and recovery from a causation and damages standpoint. Cumulative impact damages are real. They occur. But they are not damages you can just throw out there or use loosely and expect to develop traction on compensation. Below is how cumulative impact claims are defined by certain Boards of Contract Appeals. The definitions are important. In Appeal of Centex Bateson Construction, Co., Inc., 9901 BCA P 30153, VABCA 4613 (VABCA 1998), the Board explained:
    Direct impact, as the immediate and direct effect of a change on unchanged work, is considered foreseeable.
    Read the court decision
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    Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
    Mr. Adelstein may be contacted at dma@kirwinnorris.com

    Federal Court Finds Occurrence for Faulty Workmanship Under Virginia Law

    July 31, 2013 —
    The Federal District Court in Virginia found that allegations of faulty workmanship could arise from an occurrence. Nautilus Ins. Co. v. Strongwell Corp., 2013 U.S. Dist. LEXIS 79163 (W. D. Va. June 4, 2013). Strongwell supplied certain fiberglass reinforced plastic materials to a subcontractor of Black & Veatch for a construction project at power plant. Black & Veatch subsequently sued Strongwell, claiming that numerous defects in Strongwell's materials and work were discovered after the project was completed. The complaint further alleged that as a result of the defects, there was widespread property damage to portions of the power plant. Nautilus defended under a reservation of rights. Nautilus also filed suit for a declaratory judgment that to establish it had no duty to defend or indemnify Strongwell. Strongwell moved to dismiss the complaint insofar as it requested a declaration that there was no duty to defend. Strongwell also filed a motion to stay the coverage action until the underlying case was completed. Read the court decision
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    Reprinted courtesy of Tred Eyerly
    Tred Eyerly can be contacted at te@hawaiilawyer.com

    Contract Should Have Clear and Definite Terms to Avoid a Patent Ambiguity

    December 11, 2023 —
    If you need more of a reason to have contracts with clear and definite terms, this case is it. This case exemplifies what can happen if the contract, not only does not have clear and definite terms, but contains a patent ambiguity. The contract will be deemed unenforceable which will make one of the contracting parties very unhappy! In Bowein v. Sherman, 48 Fla.L.Weekly D2208a (Fla. 6th DCA 2023), the buyer and seller entered into a real estate transaction. The transaction was for $2 Million. The purchase-and-sale agreement included the address and legal description of a parcel to be sold. However, there was a section in the agreement called “Other Terms and Conditions” which identified that the offer was actually for four properties that were being sold by the seller. When it came to closing time, the seller refused to close because the seller disputed that the $2 Million purchase price was for all four of his properties. The buyer sued the seller for specific performance to force the sale which the trial court agreed in favor of the buyer. However, the appellate court did not. First, the appellate court held that “[t]he equitable remedy of specific performance may be granted only where the parties have actually entered into a definite and certain agreement.” Bowein, supra (quotation and citation omitted). Read the court decision
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    Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
    Mr. Adelstein may be contacted at dma@kirwinnorris.com

    It’s Not What You Were Thinking!

    December 10, 2024 —
    At least it is not what the lower court was thinking… but the same result for a general contractor seeking to have its comprehensive general liability insurer pay the GC’s defense related to claims for physical damage on a construction project. In reviewing the Massachusetts federal district court’s ruling in favor of the insurer, the United States First Circuit Court of Appeals posited: “The principal question is whether a general contractor’s CGL insurance policy covers damage to a non-defective part of the contractor’s project resulting from a subcontractor’s defective work on a different part of that project.” The district court had held under Massachusetts law that the insurer had no duty to defend because the lawsuit “did not allege ‘property damage’ caused by an ‘ occurrence,’ as required for coverage” under the policy (a defense that was urged by the insurer). The Court of Appeals affirmed, “albeit for different reasons.” Read the court decision
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    Reprinted courtesy of Daniel Lund III, Phelps
    Mr. Lund may be contacted at daniel.lund@phelps.com