No Coverage for Counterclaim Arising from Insured's Faulty Workmanship
August 03, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe Eighth Circuit found there was no coverage for the insured's faulty workmanship. Am. Family Mut. Ins. Co., S.I. v. Mid-American Grain Distributors, LLC, 958 F.3d 748 (8th Cir. 2020).
Mid-American contracted with Lehenbauer to design and construct a grain storage and distribution facility for Lehenbauer. Before the work was competed, Lehenbauer terminated Mid-American's services. Mid-American then sued Lehenbauer for breach of contract. Lehenbauer counterclaimed against Mid-American, alleged breach of "implied duties of workmanlike performance and fitness for a particular purpose" and negligence. Mid-American tendered the counterclaim to American Family. American Family accepted the tender under a reservation of rights, but sued Mid-American for a declaratory judgment.
The district court granted American Family's motion for summary judgment, concluding that the counterclaims did not allege an occurrence.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Toll Brothers Named #1 Home Builder on Fortune Magazine's 2023 World's Most Admired Companies® List
February 06, 2023 —
Toll Brothers, Inc.FORT WASHINGTON, Pa., Feb. 01, 2023 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL) (www.TollBrothers.com), the nation's leading builder of luxury homes, has been named the #1 Most Admired Home Builder in the 2023 Fortune magazine survey of the World's Most Admired Companies, the eighth year the company has achieved this honor.
To determine the best-regarded companies, Fortune and its partner Korn Ferry conducted the 2023 survey with 645 of the world's highest-revenue companies across 52 industries and 27 countries. Executives, directors, and Wall Street analysts were asked to rate companies in their own industries on nine criteria, ranging from investment value, financial soundness and quality of management, to quality of products, innovation, social responsibility and people management.
"We are proud to once again be honored as the #1 Home Builder on the Fortune World's Most Admired Companies list," said Douglas C. Yearley, Jr., chairman and chief executive officer of Toll Brothers. "All of us at Toll Brothers are focused on upholding our reputation for quality, value, and service built over the past 56 years. I would like to thank every Toll Brothers employee for their commitment to excellence and to serving our customers. We appreciate this tremendous recognition within the home building industry and the larger business community."
ABOUT TOLL BROTHERS
Toll Brothers, Inc., a Fortune 500 Company, is the nation's leading builder of luxury homes. The Company was founded 56 years ago in 1967 and became a public company in 1986. Its common stock is listed on the New York Stock Exchange under the symbol "TOL." The Company serves first-time, move-up, empty-nester, active-adult, and second-home buyers, as well as urban and suburban renters. Toll Brothers builds in over 60 markets in 24 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington, as well as in the District of Columbia. The Company operates its own architectural, engineering, mortgage, title, land development, golf course development, smart home technology, and landscape subsidiaries. The Company also operates its own lumber distribution, house component assembly, and manufacturing operations.
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Are Construction Defect Claims Covered Under CGL Policies?
January 27, 2014 —
Beverley BevenFlorez-CDJ STAFFCourts have ruled differently as to whether a construction defect is or is not an “occurrence,” according to the publication Business Insurance. Four states—Colorado, Arkansas, Hawaii and South Carolina—have sought to remove ambiguity by passing statutes that define construction defect claims as occurrences.
Colorado, the first state to create such a statue, passed H. B. 10-1394 in May 2010. The state legislature passed the statute “because of the complex and lengthy endorsements and exclusions facing construction professionals, according to the bill” reported Business Insurance.
The article stated that “incongruous court decisions over whether construction defect claims are covered under CGL policies continue to drive uncertainty in coverage and increase litigation costs.”
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Unpredictable Power Surges Threaten US Grid — And Your Home
April 08, 2024 —
Naureen S Malik - BloombergPaul LeBlanc was barefoot when he stepped outside that morning.
He was taking the trash out when he saw the red glow of flames engulfing a nearby home. A former firefighter, LeBlanc grabbed his shoes before racing across the street. He smashed a window, then rushed inside. The only person believed to be home was a teenage boy who had already escaped, luckily with just minor burns. Alarms blared “fire” loudly, again and again, blasting from homes through the area.
“I’ve been in buildings without protection before — I just wanted to make sure no one was stuck in there,” said LeBlanc, who spent more than three decades as a firefighter before retiring.
The damage to the Alonge family’s four-bedroom home built in the early 1800s was so bad they haven’t been able to return since the blaze in June. The source of the conflagration in Waltham, Massachusetts, came from a facility about 2 miles west of the home. An electric substation, which had been dealing with a rodent infestation, had a sudden, unstable surge in voltage.
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Naureen S Malik, Bloomberg
Congratulations 2016 DE, NJ, and PA Super Lawyers and Rising Stars
June 02, 2016 —
White and Williams LLPTwenty-one White and Williams lawyers have been named by Super Lawyers as a Delaware, New Jersey, or Pennsylvania "Super Lawyer" while ten received "Rising Star" designations. Each lawyer who received the distinction competed in a rigorous selection process which took into consideration peer recognition and professional achievement. The winners named to this year's Super Lawyer list represent a multitude of practices throughout the firm.
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White and Williams LLP
Implied Warranties for Infrastructure in Florida Construction Defect Claims
December 30, 2013 —
CDJ STAFFThe homeowners in the Lakeview development built by Maronda Homes in Orange County, Florida started having water and drainage problems shortly after the homeowners association took control of the community. They fought their case all the way to the Florida Supreme Court, where the question was whether implied warranties of fitness covered the community’s infrastructure.
William Martin III, writing on the DestinLog, notes that previous Florida Supreme Court decisions went the other way. In a case involving a seawall, the court held that “unless the seawall was part of or in connection with the construction of a home or in support of a residence.” In the Lakeview case, they determined that the community’s infrastructure was just that: “essential to the habitability of the residence.” The court specifically included roads for ingress and egress, drainage systems to divert flooding, retention ponds to correct water flow damage, and underground pipes which are necessary for living accommodations.”
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Eleventh Circuit Rules That Insurer Must Defend Contractor Despite “Your Work” Exclusion, Where Damage Timing Unclear
May 13, 2019 —
Michael S. Levine & David M. Costello - Hunton Andrews KurthThe Eleventh Circuit has reversed an insurer’s award of summary judgment after finding that uncertainty about when the alleged property damage occurred raised questions about whether the damage came within the scope of the “Your Work” exclusion. More specifically, the court found unclear whether the damage occurred before or after the contractor abandoned the job, thereby triggering an exception to the “Your Work” exclusion for damage to work that had “not yet been completed or abandoned.” The decision illustrates how timing can be a critical factor when it comes to triggering coverage for work and completed operations.
In Southern-Owners Insurance Company v. MAC Contractors of Florida, LLC, a pair of trustees hired MAC Contractors (doing business as KJIMS Construction) to serve as the general contractor for a custom residence. After construction began, disputes between the trustees and KJIMS caused the contractor to abandon the job before completing the project. The trustees followed with a lawsuit alleging, among other things, that KJIMS had damaged wood floors and a metal roof, which KJIMS had promised to remediate but never did.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
David Costello, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Costello may be contacted at dcostello@HuntonAK.com
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Does “Faulty Workmanship” Constitute An Occurrence Under Your CGL Policy?
January 08, 2024 —
David Adelstein - Florida Construction Legal UpdatesThere is nothing more scintillating than an insurance coverage dispute, right? Well, some folks would agree with this sentiment. Others would spit out their morning coffee in disagreement. Regardless of where you fall in the spectrum, they are always important because maintaining insurance is a NECESSARY part of business, particularly in the construction industry. The ideal is to have insurance that covers risks you are assuming in the performance of your work.
Sometimes, insurance coverage disputes provide valuable insight, even in disputes outside of Florida. Recently, the Western District of Kentucky in Westfield Insurance Co. v. Kentuckiana Commercial Concrete, LLC, 2023 WL 8650791 (W.D.KY 2023), involved such a dispute. While different than how Florida would treat the same issue, it’s still noteworthy because it sheds light into how other jurisdictions determine whether “faulty workmanship” constitutes an “occurrence” under a commercial general liability (CGL) policy.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com