Forensic Team Finds Fault with Concrete Slabs in Oroville Dam Failure
September 14, 2017 —
Greg Aragon - Engineering News-RecordWeathered and weakened portions of concrete contributed to the Oroville Dam's spillway failing last February, causing panic and mass evacuations in Northern California. This was part of the findings by an Independent Forensic Team (IFT), appointed by the California Department of Water Resources (DWR).
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Greg Aragon, ENRENR may be contacted at
ENR.com@bnpmedia.com
State Audit Questions College Construction Spending in LA
August 17, 2011 —
CDJ STAFFA state audit of the Los Angeles Community College District found many problems with their construction spending. Their report, as described in the Los Angeles Times, found construction money spent for other purposes, such as promotional photography and public relation tours, $28.3 million spent on projects that were later cancelled, and oversight committees that provided no oversight.
Earlier this year, the LA Times ran a series of articles detailing problems with the Los Angles Community College District’s construction program. The LA Times reported that the State Controller’s audit reached many of the same conclusions.
The Community College District disputed the findings.
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Funding the Self-Insured Retention (SIR)
August 17, 2020 —
David Adelstein - Florida Construction Legal UpdatesUnlike a deductible, a self-insured retention (referred to an “SIR”) is, as the name suggests, a self-insured obligation of the insured before its insurer picks up coverage. The SIR needs to be exhausted by the insured (as the primary self-insurance component) before the carrier’s excess defense and indemnification obligations kick-in under the terms of the policy. However, an insured can generally exhaust an SIR by paying legal fees and costs associated with a claim.
Oftentimes, the language in the policy requires the SIR to be paid for by the named insured or an insured under the policy. This was an issue addressed by the Florida Supreme Court in Intervest Const. of Jax, Inc. v. General Fidelity Ins. Co., 133 So.3d 494 (Fla. 2014).
In this matter, a personal injury claimant asserted a claim against the contractor dealing with a residential home. The contractor hired a subcontractor to install attic stairs and the subcontract required the contractor to indemnify it. The owner of the house injured herself on the attic stairs and sued the contractor. The contractor, in turn, sought indemnification against the subcontractor that installed the attic stairs.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
New York Court Discusses Evidentiary Standards for Policy Rescission Based on Material Misrepresentation
August 10, 2020 —
Robert S. Nobel - Traub LiebermanOn July 27, 2020, in the case of Mt. Hawley Ins. Co. v. AKI Renovations Group, Inc., (Sup. Ct. NY Co. 2020), Index No. 159421/2017 (unpublished), the trial court issued an Order granting summary judgment permitting rescission of a CGL policy based upon material misrepresentations in a policy application. The insured submitted an application in which it failed to disclose its demolition operations despite specific questions seeking this information. Mt. Hawley issued a primary and excess policy for the period of December 29, 2016 to December 29, 2017 (collectively, the policy).
Subsequently, the insured sought coverage for a claim in which it was alleged that the insured was acting as a general contractor for demolition of a three-story building when the plaintiff was injured. The insurer advised the defendants that it was rescinding the policy ab initio, and also returned defendants’ premium in its entirety. The insurer asserted that it would not have issued the policy had defendants disclosed their demolition operations, then filed the coverage action seeking a judicial declaration ratifying its rescission of the policy.
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Robert S. Nobel, Traub LiebermanMr. Nobel may be contacted at
rnobel@tlsslaw.com
DC Circuit Upholds EPA’s Latest RCRA Recycling Rule
September 23, 2019 —
Anthony B. Cavender - Gravel2GavelOn July 2, 2019, the U.S. Court of Appeals for the District of Columbia Circuit decided the case of California Communities Against Toxics, et al. v. EPA. In this decision, the court rejected the latest petition to strike or vacate EPA’s 2018 revisions to the Resource Conservation and Recovery Act (RCRA) hazardous waste recycling rules. In 1985, EPA promulgated a new regulatory definition of “solid waste,” which is the linchpin of the agency’s very stringent hazardous waste management rules. (See the rules located at 40 CFR Sections 260-268.) Unless a material is a “solid waste” as defined by the rules, it cannot also be a hazardous waste.
The 1985 rules grappled with the challenges posed by recycling practices, and attempted to distinguish between legitimate recycling which is not subject to hazardous waste regulation, and other more suspect forms of recycling. The rules are complex and replete with nuance. In doing so, EPA was adhering to RCRA’s statutory mandate that it develop appropriate rules to govern the treatment, storage and disposal of hazardous waste, while also promoting “properly conducted recycling and reuse.” The DC Circuit reviewed the 1985 rules in the seminal case of American Mining Congress v EPA, 824 F.2d 1177 (1987), (AMC) and stressed that only those materials that were truly discarded could be regulated as solid waste; for instance, those materials that were destined for immediate recycling or recovery in an ongoing production process were not discarded and hence were not solid waste. Over the years, the court has struggled to clarify the basic holding of AMC in numerous cases while EPA has frequently revised and amended the RCRA rules, and in particular the definition of solid waste, in an attempt to balance the policies mandated by the statute.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Court Dismisses Coverage Action In Lieu of Pending State Case
July 25, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer's coverage action was dismissed by the federal court in favor of the pending case in state court. Southern-Owners Ins. Co. v Marquez, 2021 U.S. Dist. LEXIS 108125 (S.D. Fla. May 4, 2021).
The underlying lawsuit was filed because of of an incident involving a golf cart on a sidewalk owned by the AOAO. The Marquezes owned the golf cart that injured the Murphy's child.
Southern-Owners issued a CGL policy to the AOAO. The Marquezes submitted a claim to Souther-Owners for coverage in the underlying lawsuit as additional insureds under the policy. Southern-Owners defended the AOAO and the Marquezes in the underlying lawsuit pursuant to a reservation of rights. The underlying complaint alleged that the Marquezes negligently permitted their daughter to operate the golf cart on the AOAO's pedestrian walkway. Further, the AOAO negligently failed to reasonably maintain the premises.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Housing in U.S. Cools as Rate Rise Hits Sales: Mortgages
April 28, 2014 —
John Gittelsohn and Prashant Gopal – BloombergAfter a roller-coaster decade of boom-bust-boom, the U.S. housing market is going downhill just when many economists thought annual sales would be heading up.
Sales of previously owned properties in March tumbled 7.5 percent from a year earlier to the slowest pace in 20 months, while purchases of new houses sank 14.5 percent from February, according to reports this week. Mortgage applications to buy homes plunged 19 percent from a year earlier, indicating slowing demand during what is typically the busiest season for deals.
The housing market’s underlying fragility is emerging as outside influences that fueled a two-year rebound are receding. Mortgage interest rates are rising from record lows as the central bank withdraws its stimulus, and investors, who had helped drive national prices up more than 20 percent as they went on a buying spree, are now retreating.
Mr. Gittelsohn may be contacted at johngitt@bloomberg.net; Mr. Gopal may be contacted at pgopal2@bloomberg.net
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John Gittelsohn and Prashant Gopal, Bloomberg
Urban Retrofits, Tall Buildings, and Sustainability
January 14, 2025 —
Christopher G. Hill - Construction Law MusingsAs I took a small break between cases and contract reviews, an article in the November 2, 2009 issue of ENR Magazine caught my eye. The article discusses the efforts of a Chicago architect to create a holistic approach to the renovation and “de-carbonization” of the Chicago Loop area. The plan involves large scale energy retrofits and sustainable reuse of Chicago’s tall buildings.
Another interesting aspect of this article points out that tall buildings in general have hit the construction skids in the US and Latin America, this is not the case in Europe and the Middle East. However, those buildings that are going up (and up and up) are trying to go “green.” Several of the worlds tallest buildings, or soon to be so, are seeking LEED gold or platinum certification.
These two trends, in my view, are healthy. First of all, much like the goal of Build2Sustain, the Chicago effort is a move toward sustainable reuse and retrofit/renovation. I see this as a great trend and a way to perform the “Three R’s” (Reduce, Reuse, Recycle), by reusing existing building materials and footprints without the cost and use of newer materials from tear downs and rebuilds.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com