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DIRECTORY AND CAPABILITIES

Court Finds That SIR Requirements are Not Incorporated into High Level Excess Policies and That Excess Insurers’ Payment of Defense Costs is Not Conditioned on Actual Liability

April 22, 2019 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Deere & Co. v. Allstate Ins. Co. (No. A145170, filed 2/25/19), a California appeals court held that the insured was not required to pay additional self-insured retentions (SIRs) in order to trigger higher level excess coverage because the retained limits applicable to the first layer of coverage did not also apply to the higher-layer excess policies. In Deere, the insured was sued for injuries from alleged exposure to asbestos-containing assemblies used in Deere machines. In a declaratory relief action against its umbrella and excess insurers, the case was tried on: (1) whether the higher-layer excess policies were triggered once the first-layer excess policy limits, which were subject to an SIR paid by Deere, had been exhausted; and (2) whether the insurers’ indemnity obligation extended to Deere’s defense costs incurred in asbestos claims that had been dismissed. The trial court found in favor of the insurers, concluding that the retained limits in the first layer of coverage also applied to the higher-layer excess, which was not triggered until Deere paid additional SIRs. The court also concluded that the insurers were not obligated to pay defense costs when underlying cases were dismissed without payment to a claimant either by judgment or settlement. Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Read the court decision
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California Ballot Initiative Seeks to Repeal Infrastructure Funding Bill

September 25, 2018 — Garret Murai - California Construction Law Blog
California voters will get to vote on November 6, 2018 on a ballot initiative to repeal an infrastructure funding bill signed by Governor Brown this past year that is estimated to raise more than $5 billion annually during the next ten years for road repairs and mass transit improvements in California. In 2017, Governor Brown signed Senate Bill 1, the Road Repair and Accountability Act of 2017, which increased the excise tax on gasoline in the state by 12 cents per gallon, to 30 cents per gallon, and increasing vehicle registration fees from $25 to $175 dollars depending on the value of the vehicle. The last time the state’s gas tax was increased was in 1994 and the last time the federal gas tax was increased was in 1993. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel, Rosen, Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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Preparing Your Business For Internal Transition

October 14, 2019 — Stephen P. Katz, Esq. - ConsensusDocs
When is it right to start thinking about succession planning and preparing a construction company for transition? Many would agree – in concept, at least – that serious thought regarding succession and transition planning should begin at a company’s inception and be revisited throughout its lifecycle, but as a practical matter, it is frequently not part of the mindset when growing a business. This article explores issues that construction company owners should consider in order to achieve smooth transition of ownership and control. We will address three critical questions:

• What happens to the business when an owner retires;
• In the event an owner(s) become disabled; and,
• Unplanned exit/owner pre-deceases her/his exit from the company

Owners who do not plan carefully for transition are often faced with the less than appealing option of liquidating their business for much less than its value, or by closing the business with no return upon that event. However, those who plan carefully can realize the value of their life’s work, pass the business to the next generation and see their legacy continue. Read the court decision
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Reprinted courtesy of Stephen P. Katz, Esq., Peckar & Abramson, P.C.
Mr. Katz may be contacted at skatz@pecklaw.com

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2017 Legislative Changes Affecting the Construction Industry

July 13, 2017 — Melinda S. Gentile – Peckar & Abramson, P.C.
The 2017 Florida Legislative Session recently concluded, and a number of important construction-related House Bills (HB) and Senate Bills (SB) were presented during the Session, most notably SB 204/HB 377. These Bills may impact General Contractors and Construction Managers in a number of ways, not the least of which is the period of time that a cause of action may be initiated for the design, planning or construction of an improvement. The following construction-related Bills passed in both the House and Senate and will become law if approved by the Governor. Senate Bill (SB) 204/House Bill (HB) 377: Relating to the Statute of Repose for causes of action based on design, planning or construction of an improvement to real property. This bill passed both the House and the Senate and was approved by the Governor on June 14, 2017. This bill becomes effective on July 1, 2017. Read the court decision
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Reprinted courtesy of Melinda S. Gentile, Peckar & Abramson, P.C.
Ms. Gentile may be contacted at mgentile@pecklaw.com

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Meet the Forum's In-House Counsel: ERIN CANNON-WELLS

June 26, 2023 — Jessica Knox - The Dispute Resolver
Company: Keller North America, Inc. Email: ecannon@keller-na.com Website: https://www.keller-na.com/ Under Grad: University of Delaware (Bachelor of Civil Engineering 2000) Grad School: The University of Texas (Master of Civil Engineering 2002) Law School: Howard University (JD 2008) States Where Company Operates/Does Business: Throughout the US and Canada Q: Describe your background and the path you took to becoming in-house counsel. A: I studied civil engineering in undergrad and finally found my "calling" when I took a construction course, prompting me to pursue a master's in construction engineering. I started my career at Turner, holding various engineering positions, the last of which introduced me to the "contracting" side of construction. I was inspired to go to law school (in hopes of becoming an in-house lawyer there). After law school, I joined BigLaw, but maintained my desire to practice construction law. I then jumped to a small construction practice group at a mid-size firm, and the mentoring and experience there was everything I could hope for (but for the looming business development and billable hour requirements). From there, I became the sole in-house counsel for a large cement manufacturer and was a true construction generalist. Now I am part of a great legal team for a leading geotechnical specialty contractor. My moves were strategic, and I'm pleased to say that this is the very career I went to law school to have. Read the court decision
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Reprinted courtesy of Jessica Knox, Stinson LLP
Ms. Knox may be contacted at jessica.knox@stinson.com

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Traub Lieberman Partner Lisa Rolle Obtains Summary Judgment in Favor of Defendant

November 15, 2022 — Lisa M. Rolle - Traub Lieberman
Traub Lieberman Partner Lisa M. Rolle obtained summary judgment in favor of defendant SRI Fire Sprinkler, LLC, a family-owned and operated fire sprinkler company which generally provides fire sprinkler installation, inspection, and maintenance services throughout the Northeast and New England. The judgment was determined pursuant to CPLR 3211(a)(5) on the grounds that Philadelphia Indemnity Insurance Company’s (Plaintiff) negligent construction claim accrued on the date when work was completed at the premises, not on the date of the incident as alleged in the Plaintiff’s complaint. In the underlying subrogation action, the Plaintiff commenced the action in subrogation of its insured, Bet Am Shalom Synagogue (Bet Am), to recover damages in excess of $173,390.86 which it allegedly paid to Bet Am for water damage cleanup and remodeling after certain sprinkler pipes froze and burst in the recently constructed wing of the Westchester synagogue on January 1, 2019 and January 7, 2019. The Plaintiff alleged that its subrogor, Bet Am, sustained interior water damage on the first floor and basement levels of the premises, including the carpets, drywall, insulation, bathroom, kitchen and appliances, dining room, hallways, closets, basement storage rooms and supplies, and basement classrooms. Read the court decision
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Reprinted courtesy of Lisa M. Rolle, Traub Lieberman
Ms. Rolle may be contacted at lrolle@tlsslaw.com

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Additional Insurance Coverage Determined for General Contractor

January 07, 2015 — Tred R. Eyerly- Insurance Law Hawaii
A series of communications requiring the subcontractor to provide additional insured coverage for the contractor were sufficient to fit within the policy's provision identifying additional insureds. KB Home Tucson, Inc. v. The Charter Oak Fire Ins. Co., 2014 Ariz. App. LEXIS 228 (Ariz. Ct. App. Nov. 25, 2014). KB, the general contractor, hired CRG Construction Co., Inc. in 1999 to perform work at a residential subdivision in Tucson. Charter Oak provided liability coverage for CRG, including additional insured coverage for any person or entity that CRG was obligated to cover under written contract or agreement. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Part I: Key Provisions of School Facility Construction & Design Contracts

May 16, 2018 — David R. Cook Jr. - Autry, Hall & Cook, LLP
We all expect our school construction projects will go smoothly, on time and under budget. But despite our best efforts, some projects will encounter speed bumps, detours or outright roadblocks. While there are many precautions a school facility manager may take, one of the best precautions is to have solid construction and design contracts. A good contract will account for the known risks and specify an outcome in favor of the school authority. School construction risks can be categorized into a few categories: performance risk, time risk, cost risk and political risk. Some risks are typical to all construction projects, while others are peculiar to the unique needs of school authorities. Read the court decision
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Reprinted courtesy of David R. Cook Jr., Autry, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

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