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A Relatively Small Exception to Fraud and Contract Don’t Mix

April 01, 2015 — Christopher G. Hill – Construction Law Musings
Remember all of my posts about how fraud and contract claims don’t usually play well in litigation? Well, as always with the law, there are exceptions. For instance, a well plead Virginia Consumer Protection Act claim will survive a dismissal challenge. A recent opinion out of the Alexandria division of the U. S. District Court for the Eastern District of Virginia sets out another exception, namely so called fraudulent inducement. In XL Specialty Ins. Co. v. Truland et al, the Court considered the question of whether both a tort and contract claim can coexist in the same lawsuit when the tort claim is based upon the information provided to the plaintiff when that information proves false. As the courts of Virginia have held for years, only certain information and statements made pre-contract can be the basis for a fraud claim in the face of a contractual duty to perform. One type of statement that is not properly the subject of a fraud in the inducement type claim is sales talk or opinion. Such sales talk (for example claiming that your company is the best for the job) is not the subject of a fraud claim because it is not meant to be relied upon and that such talk is an opinion about future performance, not a false statement of present fact or intent. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Construction Contracts and The Uniform Commercial Code: When Does it Apply and Understanding the Pre-Dominant Factor Test

November 01, 2022 — Keith Sparks - Ahlers Cressman & Sleight PLLC
The Uniform Commercial Code (“UCC”) replaces the common law in many commercial transactions, providing provisions and a framework governing the conduct of business. The UCC attempts to develop uniformity among state laws on commercial matters as many of these contracts involve parties from different states. The UCC has been adopted in almost all states, including Washington, and substantially mirror each other throughout the country. The question that is most commonly presented, in the Construction law context, is when does the UCC apply and control? Read the court decision
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Reprinted courtesy of Keith Sparks, Ahlers Cressman & Sleight PLLC
Mr. Sparks may be contacted at keith.sparks@acslawyers.com

Insurer's Refusal to Consider Supplemental Claim Found Improper

June 17, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Eleventy Circuit reversed the district court's finding that the insurer had properly rejected the insured's supplemental claim. Great Lakes Ins. SE v. Concourse Plaza A Condomiium Association, Inc., 2024 U.S. App. LEXIS 8958 (11th Cir. April 15, 2024). On September 10, 2017, Hurrican Irma struck Concourse Plaza's building, causing wind and water damage. Great Lakes sent a adjuster to inspect the property. The adjuster found damages to the building were $31,035.21, well below the policy's deductible. Accordingly, Great Lakes advised that the net amount of the claim was zero. Concourse Plaza responded on September 4, 2020, just shy of three years after the cliam accured. Concourse Plaza disputed the damages estimate, but did not include a competing estimate. The letter said an estimate was being prepared and Great Lakes should consider the letter as notice of the intent to pursue additional benefits for the loss pursuant to the policy's notice provisions and Florida law. 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

Nevada Bill Would Bring Changes to Construction Defects

February 21, 2013 — CDJ STAFF
If Nevada Senate Republicans get there way, changes are afoot for construction defect law in Nevada. Senate Minority Leader Michael Roberson has introduced a bill that, according to the Las Vegas Sun, “redefines what constitutes a construction defect, reduces the time in which lawsuits can be filed, and removed automatic awarding of attorney fees.” Roberson notes that over the last six years, construction defect claims have more than tripled. Read the court decision
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Reprinted courtesy of

“Source of Duty,” Tort, and Contract, Oh My!

September 06, 2023 — Christopher G. Hill - Construction Law Musings
Here at Construction Law Musings, I have discussed the general rule in Virginia that tort and contract do not mix. I have also discussed a few narrow exceptions. A Virginia Supreme Court case from October of 2019 lays out both sides of this issue in one glorious opinion. In Tingler v. Graystone Homes, Inc., a summary of the facts and lawsuit(s) are as follows: Water leaks developed after the home was built. Graystone’s post-construction efforts to repair the leaks and remediate mold were unsuccessful. The Tinglers and their children abandoned the home after developing mold-related medical problems. The Tinglers and their children sued Graystone in tort for personal injury, property damage, and economic loss. In other litigation that will not be discussed in this post, but that is described in the opinion linked above, Belle Meade sued Graystone in contract for property damage and economic losses. George and Crystal Tingler filed a separate complaint alleging the same contract claims. 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

Pennsylvania “occurrence”

December 30, 2013 — Scott Patterson — CDCoverage
In Indalex Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA, 2013 WL 6237312 (Pa. Super. 2013), insured Indalex was sued in multiple underlying actions, filed in states other than Pennsylvania, alleging that Indalex defectively designed or manufactured windows and doors resulting in leaks causing damage beyond the Indalex product, including mold, wall cracks, and personal injuries. The complaints included strict liability, negligence, breach of warranty, and breach of contract causes of action. After Indalex’s primary CGL policies exhausted, Indalex filed a declaratory judgment action against its umbrella insurer National Union. Read the court decision
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Reprinted courtesy of Scott Patterson
Scott Patterson can be contacted at cdcoverage.com

Construction Litigation Roundup: “Wrap Music to an Insurer’s Ears?”

February 05, 2024 — Daniel Lund III - Lexology
The general contractor on a New Orleans condominium construction project obtained a Contractor Controlled Insurance Program/CCIP policy or "Wrap-Up" policy for the job. An accident occurred on the job when a construction elevator/hoist fell, injuring several workers. The elevator/hoist was provided by a subcontractor, pursuant to a rental agreement and related subcontract with the general contractor. Contained within the subcontract was a provision which states that the general contractor "has arranged for the Project to be insured under a controlled insurance program (the "CCIP" or "WrapUp"),” and that the CCIP shall provide "commercial general liability insurance and excess liability insurance, in connection with the performance of the Work at the Project site." A third-party administrator for the wrap-up policy had been in communication with the subcontractor prior to the commencement of the work, “specifically advising that insurance coverage was not automatic” and providing the subcontractor with an enrollment form for the CCIP. Ultimately, the subcontractor “declined to comply with the request,” stating that the subcontractor would "not participate in paying any wrap insurance premiums" – because the subcontractor had its own insurance. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

White and Williams Announces Lawyer Promotions, Four Attorneys Promoted to Partner and One Attorney Promoted to Counsel

January 23, 2023 — White and Williams LLP
PHILADELPHIA -- White and Williams LLP is very pleased to announce the promotion of the following attorneys: Michael J. Ciamaichelo, Russell P. Lieberman, Tanya A. Salgado and Brett N. Tishler, who have become members of the firm’s partnership. All four attorneys are promoted from counsel to partner. The firm has also promoted Zachery B. Roth from associate to counsel. The partnership concluded in elevating these attorneys that each have made significant contributions to the firm and their respective practices. “All of our new partners and counsel enrich the firm both internally and externally. They have a demonstrated, deep commitment to client service excellence and through their dedication, personal sacrifice and leadership warranted elevation to partnership and counsel at White and Williams,” said firm Managing Partner Andy Susko. “We are proud to welcome these four lawyers to our partnership and look forward to their continued contributions to the firm’s success.” Read the court decision
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Reprinted courtesy of White and Williams LLP

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