Cambridge Massachusetts Building Expert Directory

Property Damage Caused By Construction Next Door Covered as Ensuing Loss

July 16, 2014 — Tred R. Eyerly – Insurance Law Hawaii
Damage to the insureds' property caused by construction undertaken on the adjacent lot was covered under the insureds' property policy. Chubb Indem. Ins Co. v. 21 E. Cedar, 2014 U.S. Dist. LEXIS 79906 (N.D. Ill. June 12, 2014). The insureds' home sustained damage contemporaneous with demolition, excavation, and construction taking place on a adjacent lot. Chubb paid benefits to the insureds for their loss, and then sought to recover as subrogee from the defendants who performed the construction. The defendants argued there was no coverage under Chubb's policy. Faulty planning, construction or maintenance were excluded. An exception to the exclusion stated, however, "we do insure ensuing covered loss unless another exclusion applies." Defendants argued characterizing the damages as ensuing losses was purely semantic and self-serving, designed to involve the ensuing loss provision in order to protect Chubb's coverage determination. Chubb contended the exclusion applied only to the specific property being insured and not to a neighbor's property where work is being performed. Therefore, the faulty construction exclusion did not apply and the ensuing loss provision was triggered. 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

Thousands of London Residents Evacuated due to Fire Hazards

June 29, 2017 — David Suggs – Bert L. Howe & Associates, Inc.
Nearly 4,000 residents were ordered by municipal authorities to “urgently evacuate apartments in five London high-rise buildings…after fire inspectors warned that the safety of the residents could not be guaranteed,” reported the New York Times. Displaced families were urged to find shelter with family or friends, but temporary accommodations were offered. Repairs may take up to four weeks. The five London towers that were evacuated all contain the same exterior cladding and insulation that is similar to what was used in Grenfell Tower, where 79 people died in fire only the preceding week, according to the New York Times. Camden Council stated that the cladding material would be removed. They had ordered noncombustible cladding, but later learned that combustible cladding had been installed. “Preliminary tests on the insulation samples from Grenfell Tower show that they combusted soon after the test started,” Detective Superintendent McCormack said in a televised statement, as quoted by the New York Times. “Cladding tiles had also failed initial tests,” she continued. Read the court decision
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Congratulations to BWB&O Partner John Toohey and His Fellow Panel Members on Their Inclusion in West Coast Casualty’s 2022 Program!

March 14, 2022 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Bremer Whyte Brown & O’Meara is pleased to announce that Newport Beach Partner John Toohey was selected to speak during the West Coast Casualty Conference on Friday, May 13th at 12 PM PST., alongside panel members Al Clarke of Clarke Mediation, Inc., Brett Reuter of Arch Insurance Group, Inc., Kevin Stineman of Hannover Re Services, Inc. and Scott Rembold of Rembold Hirschman To register for the West Coast Casualty Conference, please click here! Mr. Toohey and his fellow speakers will be discussing The Alternative-to-Alternative Dispute Resolution-Arbitration in Construction Matters and Beyond! Unfortunately, many construction projects end in dispute and the parties frequently find themselves in the middle of uncharted territory – arbitration! Join us as we explore the pitfalls, debunk the myths, and discuss the benefits of arbitration in construction disputes. Read the court decision
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Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

Auditor: Prematurely Awarded Contracts Increased Honolulu Rail Cost by $354M

February 11, 2019 — Honolulu Star-Advertiser - Engineering News-Record
Jan. 10 --A series of "prematurely" awarded rail contracts doled out to construction companies as early as 2009 prompted delay claims and change orders that increased the cost of the Honolulu rail project by more than $354 million , according to a new report by the Hawaii State Auditor released today. Read the court decision
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Reprinted courtesy of Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com

A License to Sue: Appellate Court Upholds Condition of Statute that a Contracting Party Must Hold a Valid Contractor’s License to Pursue Action for Recovery of Payment for Contracting Services

June 21, 2017 — Omar Parra & Jesse M. Sullivan - Haight Brown & Bonesteel LLP
California Business & Professions Code section 7031(a) requires a party to have contractor’s license in order to maintain an action for compensation for services performed for which a contractor’s license is needed. In Phoenix Mechanical Pipeline, Inc. v. Space Exploration Technologies Corp., No. B269186 (2017 WL 2544856) (Cal. Ct. App. June 13, 2017), the Court of Appeal for the Second Appellate District considered the scope of this statute in denying, in part, Phoenix Mechanical Pipeline, Inc.’s (“Phoenix Pipeline”) appeal of a trial court ruling granting Space Exploration Technologies Corporation’s (“SpaceX”) demurrer to Phoenix Pipeline’s second amended complaint, without leave to amend. Phoenix Pipeline filed the underlying lawsuit for, among other claims, breach of contract and breach of the duty of good faith and fair dealing arising from an agreement with SpaceX for Phoenix Pipeline to perform various plumbing, concrete removal and electrical services. Phoenix Pipeline alleged SpaceX paid for such services from 2010 to October 2013, but failed to pay Phoenix for services performed from October 2013 to August 2014, totaling just over $1,000,000. According to Phoenix Pipeline, this work was performed pursuant to a series of invoices, which constituted individual agreements between SpaceX and Phoenix Pipeline. Reprinted courtesy of Omar Parra, Haight Brown & Bonesteel LLP and Jesse M. Sullivan, Haight Brown & Bonesteel LLP Mr. Parra may be contacted at oparra@hbblaw.com Mr. Sullivan may be contacted at jsullivan@hbblaw.com Read the court decision
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Extreme Heat, Smoke Should Get US Disaster Label, Groups Say

July 15, 2024 — Jennifer A Dlouhy - Bloomberg
Activists are petitioning the US government to formally classify extreme heat and wildfire smoke as major disasters, as soaring temperatures threaten to set records across much of the country. In a petition filed with the Federal Emergency Management Agency, they seek to unlock new funding to help communities address such events before they strike, with money for air filters that strip out smoke and rooftop solar systems that can supply electricity when demand overwhelms power grids. Climate change has made fatal heat waves more intense and frequent, while hotter, drier conditions stoke the risk of fires that can blanket the US in toxic smoke. An estimated 2,300 people in the US died from heat-related illness in 2023, the hottest year on record. And heavy smoke from wildfires in Canada last year traveled as far south as Georgia, prompting people to shelter inside and canceling flights in some of the largest US cities. Read the court decision
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Reprinted courtesy of Jennifer A Dlouhy, Bloomberg

Worker’s Compensation Exclusivity Rule Gets “Trumped” by Indemnity Provision

October 27, 2016 — Garret Murai – California Construction Law Blog
Sorry, I couldn’t help myself with the title. The next case, Aluma Systems Concrete Construction of California v. Nibbi Bros., Inc., California Court of Appeals for the First District, Case No. A145734 (August 16, 2016), discusses the interplay between indemnity provisions and the worker’s compensation exclusivity rule. The worker’s compensation exclusivity rule generally provides that worker’s compensation insurance is the exclusive remedy of employees for injuries or death arising out of the course and scope of their employment. In the Aluma case, the California Court of Appeals, addressed what happens when a subcontractor’s employees are injured on a project, sue the general contractor, and the general contractor, pursuant to an indemnity provision in its subcontract, tenders the claim to the subcontractor whose worker’s compensation insurance has already paid the employees. 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

Connecticut Federal District Court Keeps Busy With Collapse Cases

October 19, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court for the district of Connecticut has faced a slew of collapse cases, recently dismissing several such cases. The policies under consideration in each case cover the "entire collapse of a covered building structure" or "the entire collapse of part of a covered building structure." The collapse must be "a sudden and accidental physical loss caused by one of a list of specific causes such as defective methods or materials. In most of the recent cases, the insured alleged that the concrete in basement walls or foundations was cracking due to a chemical reaction. It was further alleged that the chemical reaction would continue to progressively deteriorate, rendering the building structurally unstable. 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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