Federal Court Predicts Coverage In Utah for Damage Caused By Faulty Workmanship
April 03, 2013 —
Tred EyerlyThe federal district court predicted that the Utah Supreme Court would find that damage to property other than the insured's work product is unexpected and arises from an occurrence. Cincinnati Ins. Co. v. AMSCO Windows, 2013 U.S. Dist. LEXIS 15999 (D. Utah Feb. 5, 2013).
The insured, AMSCO Windows, installed windows in new homes constructed in Nevada. A number of homeowners asserted claims against the contractors who built their homes, alleging numerous construction defects, including the windows, and that the defects caused property damage to their homes. The contractors, in turn, asserted claims against AMSCO.
The insurer, Cincinnati Insurance Company, filed for a declaratory judgment that it had no duty to defend or indemnify AMSCO.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Exclusion for Construction of Condominiums Includes Faulty Construction of Retaining Wall
August 04, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe exclusion for suits arising out of construction of condominiums encompassed the underlying claim for faulty construction of a retaining wall. HT Serv., LLC v. Western Heritage Ins. Co., 2021 U.S. App. LEXIS 16259 (10th Cir. June 1, 2021).
HT Services was a land developer. HT Services designed and constructed a residential community. The AOAO sued HT Services for negligent design and construction of a retaining wall. When its carrier, Western Heritage Insurance Company, denied coverage, HT Services sued. The district court granted summary judgment to Western.
The exclusion eliminated coverage for claims or suits "arising out of, relating to or in any way connected with 'your operations' . . . involving the development [or] construction . . . of . . . condominiums . . . or . . . residential structures." HT Services argued that a retaining wall was not a "residential structure."
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Amazon Feels the Heat From Hoverboard Fire Claims
January 20, 2020 —
William L. Doerler - The Subrogation StrategistIn State Farm Fire & Cas. Co. v. Amazon.com, Inc., No. 3:18CV166-M-P, 2019 U.S. Dist. LEXIS 189053 (Oct. 31, 2019), the United States District Court for the Northern District of Mississippi considered a Motion for Judgment on the Pleadings filed by defendant Amazon.com, Inc. (Amazon). Amazon argued that, because it was a “service provider” who cannot be held liable under Mississippi’s Product Liability Act (MPLA), Miss. Code § 11.1.63, the negligence and negligent failure to warn claims filed against it by plaintiff State Farm Fire & Casualty Company (State Farm) failed as a matter of law. The court, looking beyond the MPLA, held that State Farm’s complaint stated a claim against Amazon.
In State Farm, Taylor and Laurel Boone (the Boones), State Farm’s subrogors, purchased two hoverboards from third parties in transactions facilitated by Amazon. They purchased the first hoverboard on October 31, 2015 and the second on November 10, 2015. The Boones started using the hoverboards on or about December 25, 2015. On March 16, 2016, the hoverboards caught fire and the fire spread to destroy the Boones’ home. As alleged in the amended complaint, the hoverboards were “manufactured by unknown manufacturers from China.” State Farm, as the Boones’ subrogee, filed suit asserting negligence and negligent failure to warn claims against Amazon.
Amazon filed a Motion for Judgment on the Pleadings, arguing that State Farm’s claims against it were governed by the MPLA and, as a service provider, it was not liable under the MPLA. In response, State Farm argued that Amazon was liable because it acted as a “marketplace” and that, rather than MPLA claims, Amazon is subject to common law negligence and failure to warn claims. The District Court agreed with State Farm.
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William L. Doerler, White and Williams LLPMr. Doerler may be contacted at
doerlerw@whiteandwilliams.com
Nevada Supreme Court Rejects Class Action Status, Reducing Homes from 1000 to 71
July 02, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Las Vegas Review-Journal reported that the “Nevada Supreme Court has rejected a request for class action status for claims of damaged stucco from faulty construction by Del Webb Communities involving nearly 1,000 Sun City Summerlin residents,” however, “the court upheld the award of damages to 71 homeowners following a jury trial in Clark County District Court in 2008.”
The case began in 2003, and the Las Vegas Review-Journal referred to it as “one of the largest construction-defect cases in Nevada history.” But District Judge Allan Earl denied class action lawsuit in 2006. “Attorneys were seeking $70 million for the homeowners.” In 2008, another court “determined that only 71 homeowners merited compensation totaling $4 million for the stucco issues.”
According to the Las Vegas Review-Journal, “[h]omeowners alleged that Del Webb failed to install metal screeds that would protect homes from water damage, and as a result, the homes suffered from cracked stucco, mold and weakened walls.”
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Bert L. Howe & Associates Returns as a Sponsor at the 30th Annual Construction Law Conference in San Antonio
January 13, 2017 —
Don MacGregor - Bert L. Howe & Associates, Inc.Bert L. Howe & Associates, Inc. is proud to join with the Texas Institute of CLE, and return for the third year as a sponsor and exhibitor at the 30th Annual Construction Law Conference to be held March 2nd & 3rd, 2017 at the La Cantera Resort and Spa in San Antonio.
With offices in San Antonio and Houston serving all of Texas, Bert L. Howe & Associates, Inc. (BHA) offers the experience of over 20 years of service to carriers, defense counsel, and insurance professionals as designated experts in nearly 6,500 cases. BHA’s staff encompasses a broad range of licensed and credentialed experts in the areas of general contracting and specialty trades, as well as architects, and both civil and structural engineers, and has provided services on behalf of developers, general contractors and sub-contractors.
BHA’s experience covers the full range of construction and construction defect litigation, including single and multi-family residential (including high-rise), institutional (schools, hospitals and government buildings), commercial, and industrial claims. BHA specializes in coverage, exposure, premises liability, and delay claim analysis as well.
As the litigation climate in Texas continues to change, and as the number of construction defect and other construction related cases continues to rise, it is becoming more important for contractors and builders to be aggressive in preparing for claims before they are made, and in defending against those claims once they are filed. Since 1993, Bert L. Howe & Associates has been an industry leader in providing construction consulting services, and has been a trusted partner with builders and insurance carriers, both large and small, across the Western and Southern United States. Here in Texas, we have been providing construction defect and construction-claims related forensic expert services for the past decade with a proven track record of successful results. To-date, we have participated in the successful defense of claims involving thousands homes here in Texas alone.
For those of you planning on attending the conference, or those who may know someone who will be, we encourage you to stop by the BHA booth and we welcome the opportunity to discuss further the broad range of services provided by BHA.
For your convenience, here is a link to the information page for the 30th Annual Construction Law Conference: https://www.clesolutions.com/store.aspx?categoryid=2
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Don MacGregor, Bert L. Howe & Associates, Inc.Mr. MacGregor may be contacted at
dmac@berthowe.com
HHMR Celebrates 20 Years of Service!
October 18, 2021 —
David M. McLain – Colorado Construction LitigationI remember it (almost) like it was yesterday. It was September of 2001, and I was a third-year associate at Long & Jaudon, practicing with the construction litigation group. After a long weekend away, I received word that the firm had just announced that it would cease providing legal services. Long & Jaudon, which formed in 1967, had been a stalwart of Colorado’s defense bar, counting among its number some of the finest and most well-respected defense attorneys in the state. To learn that the firm would be shutting its doors was devastating. I would be out of a job.
Soon after L&J’s announcement, Dave Higgins, one of that firm’s senior partners, inquired as to whether I would be interested in starting a new firm focused on supporting Colorado’s construction industry and its insurers. Instead of riding into the sunset of retirement, Dave wanted to leave a legacy. That legacy is Higgins, Hopkins, McLain & Roswell. Shortly after the sprout of the idea, I spent an afternoon at a picnic table in Cheesman Park with Dave Higgins, Steve Hopkins, and Sheri Roswell, sketching out an idea for a new law firm. Twenty years later, HHMR is still here, still serving Colorado’s construction industry and its insurers, and still embodying the principles of service and stewardship upon which the firm was founded.
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Risk-Shifting Tactics for Construction Contracts
February 24, 2020 —
Nate Budde - Construction ExecutiveAnyone who has worked in the construction industry is familiar with the financial risks involved. With thin margins, cash flow issues and the litany of potential claims and damages that can arise, contractors need to be able to manage that risk properly.
There is the right way of going about it, and there's a wrong way. Unfortunately, the wrong way (which involves using leverage and shifting risk to other parties) is the more prevalent approach. There are different contractual tactics employed by owners and general contractors alike to shift financial risk to other parties.
Why is construction so financially risky?
There are a few different reasons there is so much risk involved. First and foremost, the construction payment chain itself is inherently risky. Owners and lenders release project funds and trust that the money will reach everyone on the job. But that can’t happen unless each link in the payment chain passes payment to the next. That's a lot of trust for an industry that's not particularly known for it.
Another reason is how construction projects begin. Upfront payment is rare in this industry. This leads to floating the initial costs, extending credit and potentially borrowing money to do so. And those who typically bear this burden, lower-tier subs and suppliers, are the least equipped for that level of risk.
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Nate Budde, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Budde may be contacted at
nate@levelset.com
Consumer Confidence in U.S. Increases More Than Forecast
August 26, 2015 —
Victoria Stilwell – BloombergConsumer confidence climbed more than forecast in August to the second-highest level in eight years as Americans held more favorable views of the labor market.
The Conference Board’s index rose to 101.5 this month from a revised July reading of 91, the New York-based private research group said Tuesday. The gauge exceeded the highest estimate in a Bloomberg survey of economists, whose median forecast was 93.4. The cutoff date for the survey was Aug. 13, before the recent stock-market sell-off.
Americans remained emboldened by job gains, cheaper gasoline and rising home prices in the period leading up to a slump in stock prices as global financial markets took a turn for the worse. The risk for the economy is that households will reassess their spending plans as they wait for evidence the U.S. expansion can withstand such shocks.
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Victoria Stilwell, Bloomberg