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DIRECTORY AND CAPABILITIES

2021 Construction Related Bills to Keep an Eye On [UPDATED]

March 08, 2021 — Christopher G. Hill - Construction Law Musings
Each year here at Musings, I try and highlight some key construction industry-related bills that are winding their way through the Virginia General Assembly. This year is no different, though this year does not have the action level that prior years have had. Without further ado, here are those that I spotted and which I will be “Tracking” as they move through the sausage-making process: HB2288– Virginia Public Procurement Act; construction contracts; requirement to submit list of subcontractors. Requires bidders or offerors on contracts for construction of $250,000 or more to submit along with their bid or proposal a list of all subcontractors, regardless of tier, that the bidder or offeror intends at the time of submitting the bid or proposal to use on the contract to perform work valued at $50,000 or more, including labor and materials. The bill requires such list to include certain information about each contractor. This bill also includes a re-passage provision that requires that it be re-enacted in the 2022 session to become effective. Finally, the Senate General Laws and Technology committee has continued this to the First Special Session. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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The Montrose Language Interpreted: How Many Policies Are Implicated By A Construction Defect That Later Causes a Flood?

March 17, 2011 — Shaun McParland Baldwin

The Court of Appeals of Indiana recently addressed the “Montrose” language added to the CGL ISO form in 2001 in the context of a construction defect claim where a fractured storm drain caused significant flooding a year after the drain was damaged. The insuring agreement requires that “bodily injury or “property damage” be caused by an occurrence and that the “bodily injury or “property damage” occur during the policy period. The Montrose language adds that the insurance applies only if, prior to the policy period, no insured knew that the “bodily injury or “property damage” had occurred in whole or in part. Significantly, it also states that any “bodily injury” or “property damage” which occurs during the policy period and was not, prior to the policy period known to have occurred, includes a continuation, change or resumption of that “bodily injury” or “property damage” after the end of the policy period.



In Grange Mutual Cas. Co. v. West Bend Mut. Ins. Co., No. 29D04-0706-PL-1112 (Ct. App. IN March 15, 2011), http://www.ai.org/judiciary/opinions/pdf/03151109ehf.pdf, Sullivan was the General Contractor for a school construction project. Its subcontractor, McCurdy, installed the storm drain pipes. One of the storm pipes was fractured in 2005 while McCurdy was doing its installation work. More than a year later, the school experienced significant water damage due to flooding. It was later discovered that the flooding was due to the fractured storm drain. Sullivanrsquo;s insurer paid $146,403 for the water damage. That insurer brought a subrogation claim against McCurdy and its two insurers: West Bend and Grange. West Bend had issued CGL coverage to McCurdy while the construction was ongoing, including the date in which the storm pipe was fractured. Grange issued CGL coverage to McCurdy at the time of the flooding. Those two carriers jointly settled the subrogation claim and then litigated which insurer actually owed coverage for the loss. Significantly, the loss that was paid included only damages from the flooding, not any damages for the cost of repairing the pipe.



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Reprinted courtesy of Shaun McParland Baldwin of Tressler LLP. Ms Baldwin can be contacted at sbaldwin@tresslerllp.com

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More Broad-Based Expansion for Construction Industry Expected in 2015

January 07, 2015 — Garret Murai - California Construction Law Blog
It’s a short week for most of us this week. Christmas is over and New Year’s is approaching. So, what will 2015 bring us? According Dodge Data & Analytics’s 2015 Dodge Construction Outlook: Continuing expansion of the construction sector, but one that is more broad-based than in recent years. “The economic environment going forward carries several positives that will help to further lift total construction starts,” said Robert Murray, Chief Economist and Vice President at Dodge Data & Analytics. “Financing for construction projects is becoming more available, reflecting some easing of bank lending standards, a greater focus on real estate development by the investment community, and more construction bond measures getting passed. While federal funding for construction programs is still constrained, states are now picking up some of the slack. Interest rates for the near term should stay low, and market fundamentals (occupancies and rents) for commercial building and multifamily housing continue to strengthen.” 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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Partner Yvette Davis Elected to ALFA International’s Board of Directors

November 15, 2021 — Yvette Davis - Haight Brown & Bonesteel LLP
Congratulations to Haight Partner Yvette Davis who was elected by her peers to serve a three-year term on ALFA International’s 15 Member Board of Directors. The announcement was made during ALFA International’s Annual Business Meeting which took place in San Diego, California on October 20-22, 2021. About ALFA International ALFA International is the premier network of independent law firms. Founded in 1980, ALFA International was the first and continues to be one of the largest and strongest legal networks. We have 150 member firms throughout the world. Our 80 U.S. firms maintain offices in 95 of the 100 largest metropolitan areas. Our 70 international firms are located throughout Europe, Asia, Australia/New Zealand, Africa, Canada, Mexico and South America. Read the court decision
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Reprinted courtesy of Yvette Davis, Haight Brown & Bonesteel LLP
Ms. Davis may be contacted at ydavis@hbblaw.com

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Housing Starts in U.S. Climb to an Almost Eight-Year High

August 19, 2015 — Sho Chandra – Bloomberg
New-home construction in the U.S. climbed in July to the highest level in almost eight years, indicating the industry will pick up in the second half of the year. Residential starts rose 0.2 percent to a 1.21 million annualized rate, the most since October 2007, from a 1.2 million pace in the prior month that was higher than previously estimated, a Commerce Department report showed Tuesday in Washington. The median forecast of 77 economists surveyed by Bloomberg was 1.18 million. A drop in permits, a proxy for future construction, signals additional gains will take time to develop. Rising employment and historically low mortgage rates are enticing buyers, while increasing prices induced by a lack of homes on the market is an incentive to start new developments. Data showing builder sentiment at a decade high in August underscores the view that the housing rebound will stay on track even as the Federal Reserve is poised to boost borrowing costs. Read the court decision
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Reprinted courtesy of Sho Chandra, Bloomberg

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New Zealand Using Plywood Banned Elsewhere

October 30, 2013 — CDJ STAFF
Copper chromium arsenate helps protect wood against insect damage and fungal growth. Unfortunately, its use leads to arsenic exposure. The safety concerns over CCA for both construction workers and the people who later use the buildings have led to the CCA-treated plywood being banned or restricted in most countries, including the United States, Canada, France, the United Kingdom, and Germany. New Zealand is not on the list of countries restricting or banning CCA-treated wood. Dr. Merial Watts, a science coordinator for Pesticide Action Network NZ described the product as an “unacceptable public health risk,” and said that “wrapping homes in CCA-treated plywood is a very bad idea.” One construction official, speaking anonymously, noted that “workers have to handle it with gloves and full body suits,” but those guidelines may not be followed. A foreman on a building site said “I know about the treatment but I don’t take many precautions.” Read the court decision
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How New York City Plans to Soak Up the Rain

May 02, 2022 — Linda Poon - Bloomberg
When the remnants of Hurricane Ida pummeled New York City with more than 3 inches of rain in just one hour, the city struggled to soak it up. Instead, streets and subways flooded as storm drains were overwhelmed, basement apartments were inundated, and more than a dozen people died. That September 2021 storm and the ones before it, including a cloudburst downpour during Tropical Storm Elsa in July, have forced New York to take a hard look at becoming a “spongier” city — one that combines nature-based green infrastructure like street-side rain gardens with gray infrastructure like storm drains to divert or absorb water and prevent catastrophic flooding. “New York City is preparing for both chronic storm events — these cloudburst events that we see occurring more and more frequently — as well as extreme storm events like Ida,” says Jennifer Cherrier, a professor of earth and environmental sciences at Brooklyn College. On top of that, the city also faces mounting risks from storm surges, like during Hurricane Sandy in 2012. Read the court decision
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Reprinted courtesy of Linda Poon, Bloomberg

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No Prejudicial Error in Refusing to Give Jury Instruction on Predominant Cause

November 11, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The California Court of Appeal affirmed the trial court's judgment after the jury determined there was no coverage for a leaking pipe. Mendoza v. Pacific Spec. Ins. Co., 2024 Cal. App. Unpub. EXIS 5477 (Cal. Ct. App. Aug. 20, 2024). The Mendoza's third amended complaint alleged their home was damaged "by overflow of water from the dwelling's plumbing system resulting from a broken pipe, which overflow undermined the structural integrity of the dwelling." The Mendozas insured their home under a policy issued by Pacific. The policy insured the property against "sudden and accidental direct physical loss" except where expressly excluded. The Mendozas submitted a claim Pacific paid approximately $1800 for the loss and closed the claim. The amount paid did not include payment for any structural damage to the home. The Mendozas alleged that Pacific's failure to conduct a full and fair investigation into the structural damage and its inadequate payment of benefits was a breach of the implied covenant of good faith and fair dealing. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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