Insured's Motion for Reconsideration on Denial of Coverage Unsuccessful
September 28, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe insured's motion to reconsider an order granting the insurer summary judgment challenges the insured's theory it was an additional insured was rejected by the federal district court. Hanover Ins. Co. v. Superior Labor Servs., 2017 U.S. Dist. LEXIS 133127 (E.D. La. Aug. 21, 2017).
The court previously granted Lexington Insurance Company's motion for summary judgment, finding Allied Shipyard, Inc. was not an additional insured and was not entitled to a defense in the underlying actions. On reconsideration, Allied argued the court ruled it was not a "certificate holder" under the Lexington policy, but Allied was not given the opportunity to conduct discovery with respect to whether it was a "certificate holder." Summary judgment was granted before Allied answered Lexington's amended complaint in intervention. Allied submitted its answer could have raised a genuine issue of material fact because it was entitled to coverage under the policy if it was a certificate holder.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Inspectors Hurry to Make Sure Welds Are Right before Bay Bridge Opening
August 27, 2013 —
CDJ STAFFEach of the 20 welds at the base of the tower of the Bay Bridge took more than four hours to complete, with the lengthy welds forming at one-and-a-half inches per minute. They’ve been finished for two years now, but inspectors are just now checking the welds for defects.
Any defects found will have to be removed and repaired. Mazen Wahbeh, an engineer on the project, assumes that less than 5 percent of the total welded area will have to be repaired. According to Wahbeh, the bridge can open before the welds are thoroughly checked and repaired, and so “the contractor is prioritizing the remaining work.”
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Lessons Learned from Implementing Infrastructure BIM in Helsinki
February 07, 2018 —
Aarni Heiskanen – AEC Business BlogFinland’s capital is currently experiencing a construction boom. Old industrial citadels are turning into residential areas with new commercial centers. Consequently, Helsinki needs to build new infrastructure. To improve the efficiency and quality of infrastructure construction, the city has started using BIM, and is now learning how to get the most value from it.
Ville Alajoki, Team Leader in Helsinki’s Urban Development Division, is a keen proponent of BIM. “Infrastructure construction is still in its early stages when it comes to using BIM. For the most part, BIM implementation has not been systematic in our city yet. We tend to use it in our own structural design and often in building construction. However, in infrastructure project management, its active individuals who have set the pace,” Ville admits. He believes that the city’s strategy for 2017–2021 will spur the use of new technologies, including BIM. “Helsinki aims to be the city in the world that makes the best use of digitalization,” Mayor
Jan Vapaavuori has declared.
A good start, but there’s room for improvement.
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Aarni Heiskanen, AEC Business Blog Mr. Heiskanen may be contacted at
info@aepartners.fi
Real Estate & Construction News Round-Up (03/08/23) – Updates on U.S. Mortgage Applications, the Inflation Reduction Act, and Multifamily Sector
March 20, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogThis week’s round-up explores the cooling housing market and plummeting mortgage applications, potential tax-savings as a result of the 2022 Inflation Reduction Act (IRA), and new developments in the multifamily sector.
- Rising interest rates are impacting affordability and cooling the U.S. housing market, driving mortgage applications to lowest levels in decades. (Nicole Friedman, The Wall Street Journal)
- A number of companies are going all out to entice workers back to the office, and as new data on New York City emerges, upscale offices might help do the trick. (Emily Peck, Axios)
- For real estate developers and investors across the U.S., tax-saving opportunities are popping up as a result of the Inflation Reduction Act of 2022. (David Harlan & Laura Theiss, Dallas Business Journal)
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Illinois Court Determines Duty to Defend Construction Defect Claims
March 22, 2021 —
Tred R. Eyerly - Insurance Law HawaiiGiven the underlying allegations of damage to personal property, the court determined the insurer had a duty to defend. Certain Underwriters at Lloyd's London v. Metropolitan Builders, Inc., 2019 Ill. App. LEXIS 979 (Ill. Ct. App. Dec. 18, 2019).
Metropolitan was hired as the general contractor for construction, renovation and demolition at contiguous properties - the 1907 Property, 1909 Property, and 1911 Property. During construction activities, the structures on the 1907 Property and 1909 Property collapsed. The existing structures on the properties were later deemed unsafe and were demolished by the city of Chicago.
AIG insured the owner of the buildings and paid over $1.8 million for repairs and associated expenses arising from the collapse. AIG then invoked its rights of subrogation against Metropolitan by filing suit. Metropolitan tendered the suit to its insurer, Lloyd's, who denied coverage and filed for a declaratory judgment. The trial court found the underlying complaint alleged property damage, but not an occurrence. Summary judgment was awarded to Lloyd's.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Miami's Condo Craze Burns Out on Strong Dollar
June 10, 2015 —
Prashant Gopal and John Gittelsohn – BloombergThe sales office for condominiums at Miami’s Brickell City Centre attracted more than 100 visitors daily last year, with prospective buyers crowding in and snapping selfies beside a scale model of the $1 billion project.
Now, the flow of people has trickled to about a quarter of what it once was.
“Buyers are asking really good questions” instead of rushing into deals, said Stephen Owens, president of the U.S. unit of Hong Kong-based Swire Properties Ltd., the developer of the 9-acre (3.6-hectare) condo, hotel, office and shopping complex. “Two years ago, it was, ‘Where can I sign?’”
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Prashant Gopal, Bloomberg and
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“Time Is Money!” In Construction and This Is Why There Is a Liquidated Damages Provision
February 01, 2022 —
David Adelstein - Florida Construction Legal UpdatesIn construction, the adage “Time is Money!” rings true for all parties involved on a project. This includes an owner of a project that wants a project completed on time, i.e., by a substantial completion date. While substantial completion is often defined as when an owner can use a project for its intended purpose, this intended purpose typically equates to beneficial occupancy (in new construction) and other factors as identified in the contract.
The best mechanism for an owner to reinforce time and the substantial completion date is through a liquidated damages provision (also known as an LD provision) that includes a daily monetary rate for each day of delay to the substantial completion date.
A liquidated damages provision is not designed, and should NEVER be designed, to serve as a penalty because then it would be unenforceable. Instead, it should be designed to reasonably compensate an owner for delay to the substantial completion date that cannot be ascertained with any reasonable degree of certainty at the time the contract is being negotiated and executed. (Liquidated damages are MUCH easier to prove than actual damages an owner may incur down the road.) As an owner, you don’t really want to assess liquidated damages because that means the project is not substantially completed on time. And, in reality, a timely completed and performing project should always be better and more profitable than a late and underperforming project. However, without the liquidated damages provision, there isn’t a great way to hold a contractor’s feet to the fire with respect to the substantial completion date.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Colorado Court of Appeals holds that insurance companies owe duty of prompt and effective communication to claimants and repair subcontractors
March 01, 2011 —
Colorado Construction LitigationIn Dunn v. American Family Insurance, 09CA2173, 2010 WL 4791948 (Colo. App. Nov. 24, 2010), the Dunns reported a claim to American Family on their homeowners insurance policy after sewer and water backup caused sewage to flood their basement. American Family gave the Dunns contact information for a contractor (ICA) to remediate the flooding. However, ICA was unsuccessful and sewage began to infiltrate the Dunns’ HVAC system. Subsequently, black mold was detected in the HVAC system, the Dunns suffered health and respiratory problems, and they soon after vacated the home. The Dunns hired and fired two more contractors for unsatisfactory work throughout the winter before hiring a fourth to finish the job. Because the home remained vacant and unheated throughout the winter, the water pipes ruptured. The mold spread throughout the entire home and all of the contents needed to be replaced, which amounted to a claim of $340,000 on the policy.
American Family agreed to pay the full $340,000. However, the Dunns brought suit claiming that American Family breached the implied duty of good faith and fair dealing by: 1) failing to screen ICA for expertise; 2) failing to screen ICA for liability insurance coverage; 3) failing to monitor ICA’s work; 4) failing to advise them that flooding can cause further damage, including freezing pipes and mold; and, 5) failing to adequately and promptly communicate with them and remediation subcontractors in the course of investigating and handling their claim.The trial court found no duty owed by American Family beyond adjustment and timely payment of claims. Because American Family paid timely and in full, they dismissed all of the Dunns’ claims. However, the Court of Appeals reversed in part.
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Reprinted courtesy of Chad Johnson, Higgins, Hopkins, McLain & Roswell, LLC. Mr. Johnson can be contacted at johnson@hhmrlaw.com
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