Jury Awards 20 Million Verdict Against Bishop Abbey Homes
April 08, 2014 —
Beverley BevenFlorez-CDJ STAFFA Rockwall County, Texas “jury has awarded a $20.8 million verdict against a Dallas homebuilder for performing substandard work on a local family's home and refusing to accept responsibility,” according to a press release published in The Wall Street Journal.
The lawsuit alleged that “the defendants were aware that the site of the Hales' future Highpoint Lake Estates home had significant foundation defects before construction began. The Hales said Mr. Halsey later promised that his company would take responsibility by fixing the structural defects that arose after construction, but he reneged and refused to repair the problems.”
The award included “damages for the cost of repairs, lost value and additional penalties based on Mr. Halsey's actions and the defendants' ‘grossly negligent’ conduct, including violations of the Texas Deceptive Trade Practices Act. The jury award includes attorneys' fees for the Hales' legal team.”
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The Court-Side Seat: FERC Reviews, Panda Power Plaints and Sovereign Immunity
April 26, 2021 —
Anthony B. Cavender - Gravel2GavelThis is a brief report on new environmental law decisions, regulations and legislation.
THE U.S. SUPREME COURT
Massachusetts Lobsterman’s Association v. Raimondo, Secretary of Commerce
On March 22, 2021, the Supreme Court rejected a petition to review a Presidential decision to invoke the Antiquities Act of 1906 to designate as a monument “an area of submerged land about the size of Connecticut” in the Atlantic Ocean. This action forbids all sorts of economic activity, which compelled the filing of litigation in the First Circuit challenging this designation. Chief Justice Roberts supported the Court’s denial of certiorari, but remarked that a stronger legal case may persuade the Court to review such liberal uses of the Antiquities Act.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Court Grants Summary Judgment to Insurer in HVAC Defect Case
August 04, 2011 —
CDJ STAFFThe US District Court in Colorado has determined in the case of RK Mechanical, Inc. v. Travelers Property Casualty Company of America that Travelers did not breach its insurance contract when it refused to cover RK Mechanical.
RK Mechanical performed an HVAC installation for a residential project for which J.E. Dunn Rocky Mountain was the general contractor. As part of the work, RK “installed approximately one hundred seventy-one CPVC flanges, which were manufactured by Charlotte Pipe and Foundry Company.” Two of these flanges failed in June, 2009 leading to water damage. RK replaced the cracked flanges and engaged in water remediation. “Travelers paid Dunn and RK for the costs associated with the water damage associated with the Flange Failure.” The court notes that Travelers did not pay for the cracked flanges, however.
Subsequently, RK examined the remaining flanges, finding many cracked ones. These were replaced with new ones. Later, all the Charlotte flanges were replaced with ones from another manufacturer. RK applied for coverage.
All sides brought in their experts: “Microbac Laboratories, Inc. prepared a report on behalf of RK concluding that the Flange Failure was due, in part, to an assembly or workmanship defect in addition to manufacturing defects in the flanges. Higgins & Associates prepared a report on behalf of Travelers concluding that the flanges failed due to improper installation. Plastic Failure Labs prepared a report on behalf of the flange manufacturer concluding that the flanges failed due to improper installation by RK.”
At this point, Travelers denied coverage. RK sued alleging that the coverage for flange failure and water damage implicitly includes mitigation costs. The court rejected this claim, noting it would do so even if Travelers had paid for the replacement of the first two flanges. Nor did the court find that replacement of the faulty flanges is not "a covered cause of loss." RK also argued that as it was required to mitigate, Travelers was obligated to cover costs. However, the court found that “the mitigation costs expended by RK were not incurred in an effort to avoid damages from a potential breach of contract by Travelers.” The court additionally noted that despite RK’s claims, the Colorado courts have not found a common law duty to mitigate. Finally, the court found that the exclusions in the policy were not in violation of public policy.
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Will They Blow It Up?
March 28, 2012 —
CDJ STAFFThe issues concerning the Harmon Towers building in Las Vegas continue to make their way through the courts. As we noted in a previous piece, Cook County building officials stated that the building could be a hazard if Las Vegas were struck by an earthquake. The question of whether the building will continue to stand is just one of the issues in front of a judge.
MGM Resorts International argued at a March 13 hearing for permission to implode the Harmon hotel building. They claim that more than 1,700 defects have been discovered in the building and that the building is a public safety hazard. Arguing against demolition, Perini Building Company, the general contractor for the hotel, and its subcontractors are claiming that imploding the building would destroy evidence and prejudice juries in the ongoing construction defect claims. They claim that MGM Resorts wishes to abandon the building due to the economic slowdown. Perini Corp, the contractor for the project, claims that the building can be fixed. Perini claims that MGM’s position in the construction trial would be improved if the building is demolished.
After Judge Elizabeth Gonzalez heard the four days of testimony on the Harmon Towers building and whether it should be demolished, she scheduled more testimony, with two days in April and an entire week in July. Judge Gonzalez will be deciding whether the building will be torn down, imploded, or left in place.
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Hurricane Ian: Discussing Wind-Water Disputes
October 10, 2022 —
Randy J. Maniloff - White and Williams LLP“Most of the Florida homes in the path of Hurricane Ian lack flood insurance, posing a major challenge to rebuilding efforts, new data show. In the counties whose residents were told to evacuate, just 18.5 percent of homes have coverage through the National Flood Insurance Program, according to Milliman, an actuarial firm that works with the program.”
That’s how a September 29th article on The New York Times website begins.
When it comes to insurance coverage for hurricanes, the oft-stated maxim is that homeowner’s policies cover damage caused by wind but not flood waters.
Such a low take-up rate for flood insurance policies would seemingly create an incentive for those affected by Hurricane Ian to argue, when feasible, that their property damage, despite appearing to have been caused by flood, was also caused by wind. [And, of course, businesses looking to make business interruption claims, under commercial property policies, will be in the same boat.]
Further, even when someone has a homeowner’s policy and a flood policy, there may still be a reason to argue that the loss was caused by wind, as homeowner’s policies often have greater limits than flood policies.
[As an important aside, when hurricane damages are covered, homeowner’s policies can have a significant deductible, perhaps up to 10% of a home’s insured value.]
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Randy J. Maniloff, White and Williams LLPMr. Maniloff may be contacted at
maniloffr@whiteandwilliams.com
Edward Beitz and William Taylor Recognized by US News – Best Lawyers as a "Lawyer of the Year"
August 31, 2020 —
Edward Beitz & William Taylor - White and WilliamsWhite and Williams is proud to announce that Edward Beitz and William Taylor have been recognized by U.S. News – Best Lawyers® as a “Lawyer of the Year” in their respective practices in Philadelphia. Ed was named in the area of Medical Malpractice and Bill was named in Construction Law. "Lawyer of the Year" recognitions are awarded to individual lawyers with extremely high overall peer-feedback for a specific practice area and geographic location.
Ed is a member of the Healthcare Group and focuses his practice on medical malpractice defense, defending doctors, nurses, physician assistants and hospitals at the trial and appellate court levels, as well as general liability matters. He has successfully defended numerous medical malpractice cases at trial involving complex issues of the human anatomy, such as cardiac surgery, neurosurgery, orthopedic surgery, nursing care, obstetrical complications, nerve injury and vascular injury. Ed has authored briefs on appellate issues in healthcare and coverage matters to the Superior Court of Pennsylvania, the New Jersey Appellate Division and the Third Circuit Court of Appeals.
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Edward Beitz, White and Williams and
William Taylor, White and Williams
Mr. Beitz may be contacted at beitze@whiteandwilliams.com
Mr. Taylor may be contacted at taylorw@whiteandwilliams.com
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Indiana Court Enforces Contract Provisions rather than Construction Drawing Markings
January 14, 2015 —
Beverley BevenFlorez-CDJ STAFFTimothy J. Abeska, a vice-chair of Barnes & Thornburg LLP’s Construction Law Practice Group, analyzed Goodrich Quality Theaters, Inc. v. Fostcorp Heating and Cooling, Inc., 16 N.E.3d 426 (Ind. Ct. App. 2014), which “provides an example of a court enforcing contract provisions rather than markings on construction drawings that are inconsistent with contract requirements.”
The case evolved from a dispute on a construction of an IMAX theater, when the general contractor did not understand the architect’s markings for non-standard joist girders, and ordered standard joist girders, per the contract. The error created delays and other problems, which led to payment disputes and mechanic’s liens against the project.
Abeska stated that “[t]his case shows the importance of making sure all documents which comprise a construction contract are consistent with each other, as courts will enforce contracts negotiated by the parties. The case also demonstrates that litigation is not a quick process, as the Court of Appeals Opinion was issued more than seven years after the project was completed.”
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Wheaton to Require Sprinklers in New Homes
November 06, 2013 —
CDJ STAFFThe town of Wheaton, Illinois is considering a change to its building codes, based on the recommendations made in the 2012 building code, released by the International Code Council. Eighty-two towns in Illinois already require new homes to have fire sprinklers. Wheaton did not adopt any changes from the 2006 or 2009 building code; they are currently using the standards of the 2003 edition.
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