How Concrete Mistakes Added Cost to the Recent Frederick Douglass Memorial Bridge Project
December 16, 2023 —
Richard Korman - Engineering News-RecordA disputed insurance claim heading for trial next year over construction of Washington, D.C.'s two-year-old Frederick Douglass Memorial Bridge revolves around the design-build joint venture's problems in 2019 with concrete voids and honeycombing. The flaws required demolition and rebuilding costing millions of dollars.
Reprinted courtesy of
Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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Contractual Assumption of Liability Does Not Bar Coverage
August 27, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe Michigan Court of Appeals rejected the insurer's argument that coverage was barred for the insured's contractual assumption of liability of another. Travelers Prop. Cas. Co. of Am v. Peaker Serv., Inc., 2014 WL 3605680 (Mich. Ct. App. July 22, 2014).
The contractor was hired to install an "electronic over-speed system" at the University of Michigan. The hope was that the new system would prevent the steam turbines at the central power plant from turning too quickly. The parties' contract provided,
“Section 15.18. Supplier Damage to University Property. Without regard to any other section of the Agreement, Supplier shall be responsible for the costs to return to ‘as was’ condition from any damage caused to the building, grounds, or other equipment and furnishings caused in whole or part by Supplier Personnel while performing activities arising under this Agreement.”
The contractor improperly calibrated the system, causing one of the university's turbines to operate at twice the safe operational speed, causing significant damage to the generator equipment. The university sued the contractor for more than $3 million in damages. Travelers defended, but filed a declaratory judgment action, contending that coverage did not exist because the "contractual liability" exclusion applied. Section 15.18 of the contract purportedly constituted an "assumption" of the insured's own liability, and was therefore not covered under the CGL policy.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Christopher Leise Recognized by US News – Best Lawyers 2022 "Lawyer of the Year"
September 06, 2021 —
Christopher Leise - White and Williams LLPWhite and Williams is proud to announce that Christopher Leise has been named Best Lawyers® 2022 "Lawyer of the Year" in Cherry Hill, NJ for his work in Litigation - Insurance.
Chris focuses his practice on complex insurance and commercial litigation, including the representation of licensed insurance agents and brokers in professional liability claims and agency contract disputes. He also has extensive experience litigating complex insurance coverage, insurance bad faith, RICO and insurance fraud claims, fire damage claims, and ERISA disputes. Chris works with regional and national brokerage firms defending professional liability claims and handling disputes with insurance companies throughout the mid-Atlantic region, as well as with commercial insurance carriers defending allegations of bad faith.
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Christopher Leise, White and Williams LLPMr. Leise may be contacted at
leisec@whiteandwilliams.com
How Technology Reduces the Risk of Façade Defects
March 20, 2023 —
Ori Aphek - Construction ExecutiveThe shell of the building is an onlooker’s first impression and crafts the architectural aesthetic, but it also plays a crucial role in enabling energy efficiency and protecting against the elements. Because façades are in direct contact with the elements, issues with water intrusion are the most common problem and the costliest to remedy, with anywhere from 30% to 70% of lawsuits related to water intrusion, half of it through the façade. Additionally, improperly installed façades pose significant safety risks because unsecured parts can fall and hit people below.
All these factors contribute to the façade being one of the most complex and costly aspects of a building to construct and inspect, making up 205 of the total project cost. Installing these systems correctly the first time is the most effective way to mitigate these threats. Teams should utilize data-informed technology that ensures plan adherence, reducing risk and avoiding errors during installation.
The Challenges of Façade Installation
Façade installation and subsequent inspection are inherently challenging, particularly for high-rise buildings. When performing post-installation verification manually, inspectors must review every element, joint by joint, window by window, stone by stone and brick by brick, which can take months to complete. Inspections of the entire building system are limited by this process, as inspectors can only access one portion of the building façade at a time and often have to inspect from indoors, on balconies or at the ground level, which doesn’t paint a complete picture. As a result, teams typically only perform spot checks on the façade and are rarely inspected to their fullest. This leaves many installation errors and defects, which serve as ticking bombs for future water intrusion or safety hazards.
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Ori Aphek, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Major Change to Residential Landlord Tenant Law
July 15, 2019 —
Lawrence S. Glosser - Ahlers Cressman & Sleight PLLCGovernor Inslee has just signed SB 5600 which results in major changes to the Residential Landlord-Tenant Act (RCW 59.18) regarding the eviction process of residential tenants. The changes do not apply to non-residential tenancies which are still governed by RCW 59.12. The new law includes additional protections for tenants and limits the ability of landlords to evict tenants or recover costs for legal proceedings. It also grants judges substantial discretion in eviction hearings whereas judges were previously bound by the express terms of the statute.
The major changes to the law are listed below:
- A landlord must provide a tenant 14 days’ notice instead of three days’ notice in order to cure default in the payment of overdue rent. The Attorney General’s Office will create a uniform 14-day notice to pay and vacate default form.
- Landlords must first apply any payment by a tenant to the rent amount before applying it towards other charges, including fees or other costs.
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Lawrence S. Glosser, Ahlers Cressman & Sleight PLLCMr. Glosser may be contacted at
larry.glosser@acslawyers.com
California Rejects Judgments By Confession Pursuant to Civil Code Section 1132
May 08, 2023 —
Drew M. Jorgenson & Louis "Dutch" Schotemeyer - Newmeyer DillionThe Elimination of Judgment by Confession
Following in the footsteps of Massachusetts and Florida, California recently updated California Code of Civil Procedure section 1132 which renders judgments by confession unenforceable and inadmissible in any superior court, effective January 1, 2023. The bar is not retroactive, so judgments by confession obtained or entered before January 1, 2023 are still valid. Moving forward, consider the following.
What is a Judgment By Confession?
A judgment by confession, also known as a confession of judgment or "cognovit" clause, is a mechanism by which a debtor agrees that a creditor may summarily obtain a legal judgment against that debtor and enforce it in the event of the debtor's breach of contract or default. In other words, it is a private admission by a debtor that they are liable for a debt without the need for a trial, and consequently, agree to forfeit very important rights. Most importantly, parties agreeing to such clauses are waiving rights such as the right to notice of the judgment and the right to assert defenses against the creditor or third party's claims. Historically, without any judicial involvement, these types of out-of-court judgments would be enforceable.
Reprinted courtesy of
Drew M. Jorgenson, Newmeyer Dillion and
Louis "Dutch" Schotemeyer, Newmeyer Dillion
Mr. Jorgenson may be contacted at drew.jorgenson@ndlf.com
Mr. Schotemeyer may be contacted at dutch.schotemeyer@ndlf.com
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The Small Stuff: Small Claims Court and Limited Civil Court Jurisdictional Limits
June 10, 2024 —
Garret Murai - California Construction Law BlogSometimes the small stuff matters.
And when it comes to legal disputes this can pose a problem for clients as well as their attorneys because litigation and arbitration, the two most frequently utilized venues to resolve legal disputes in the United States, can be and usually are expensive.
Data on the cost of civil litigation is sparse. According to a 2013 survey of trial lawyers conducted by the National Center of State Courts, the median cost of litigating a contract dispute – which is the category that most construction disputes would fall under – is $90,575. And this is in 2013 dollars. With inflation, that number rises to nearly $120,000 in 2023, and based upon our experience litigating and arbitrating complex (and even not so complex) construction disputes, it can be many multiples over that.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Not Just Another Client Alert about Cyber-Risk and Effective Cybersecurity Insurance Regulatory Guidance
April 01, 2015 —
Robert Ansehl – White and Williams LLPThe prefix "cyber" was coined about 70 years ago to describe early stage computers, computer networks and virtual reality. Since then, the term has been used as a prefix for hundreds of words, however, the most recent (and newsworthy) usage is its link to the word “risk” and the correlative term “security.” Two sides of the same coin and not a day goes by when a data breach is not reported and the importance of cyber risk and cybersecurity underscored. Insurers, like other financial institutions, are at the forefront of the “cyber-curve.” Many insurers are particularly vulnerable on at least two fronts: (1) from a cyber risk/ cyber invasion perspective and; (2) an insurer’s insurance policy exposure, intentional and not, to third-parties under cyber policies, and even policies such as CGLs that may inadvertently cover such risks.
A number of federal and state regulators have spoken to this issue in an effort to address cyber risks with varying degrees of specificity. At last count, in addition to a myriad of existing and proposed state laws and regulations, there are at least nine federal Bills under consideration by Congress (covering six federal agencies including one new agency) that seek to impose regulatory requirements upon the cyber-arena. Those Bills empower six regulatory agencies; including one new agency. Initially, some states required companies to notify affected persons of a data breach. As breaches became more serious, state and federal regulators sought to increase the industry’s awareness of the potential exposures and provided instructions on appropriate steps to protect data from cyber invasions. Now, state insurance regulators are examining not only the threat of data theft, but the balance sheet impact of insurance exposures for underwriting such risks for third-parties’ under cyber risk policies. The regulatory efforts continue to multiply in an effort to stem some of these risks.
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Robert Ansehl, White and Williams LLPMr. Ansehl may be contacted at
ansehlr@whiteandwilliams.com
