SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

New Jersey Legislation Would Bar Anti-Concurrent Causation Clause in Homeowners' Policies

June 08, 2020 — Tred R. Eyerly - Insurance Law Hawaii
A bill prohibiting the use of anti-concurrent causation clauses in homeowners' insurance policies has been introduced before the New Jersey legislature. The bill is here. Under an anti-concurrent causation clause, the policy bars coverage if two perils (i.e., wind and water damage) contribute to a loss and one peril is excluded from coverage. For example, wind damage alone may be covered, while water damage is excluded. If both wind and water contribute to the loss, regardless of the degree to which each peril contributes, the anti-concurrent causation clause would bar coverage. New Jersey S 217 states,

An insurer authorized to transact the business of homeowners insurance in this state shall not exclude coverage in a homeowners insurance policy for loss or damage caused by a peril insured against under the terms of the policy on the grounds that the loss or damage occurred concurrently or in any sequence with a peril not insured against under the terms of the policy. Any such provision to exclude coverage shall be void and unenforceable.

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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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Report to Congress Calls for Framework to Cut Post-Quake Recovery Time

February 01, 2021 — Bruce Buckley - Engineering News-Record
Engineers and government agencies along with model building code and standard developers should work together to create a national framework more focused on earthquake resilience and post-quake recovery time, according to a report delivered to Congress last week. While current seismic codes address life safety, the report says stakeholders should also consider re-occupancy and functional recovery time, taking into account the potential impacts to a community as a whole. Reprinted courtesy of Bruce Buckley, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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Hawaii Federal District Court Remands Coverage Dispute

June 15, 2020 — Tred R. Eyerly - Insurance Law Hawaii
Accepting the insured's amended complaint, the federal district court of Hawaii remanded the coverage action to state court. Hale v. Lloyd's, London, 2020 U.S. Dist. LEXIS 9061 (D. Haw. Jan. 17, 2020). Hale purchased a policy for his home in Hilo, Hawaii, from Defendant Pyramid Insurance Centre. The policy was memorialized by a Lloyd's Certificate issued by Defendant Lloyd's. On September 19, 2017, Hale entered Chapter 7 Bankruptcy. Included in the bankruptcy proceeding was Hale's home and a secured home mortgage loan now owned by Defendant Specialized Loan Servicing, LLC. The Bankruptcy Court issued a discharge order on January 18, 2018. On May 9, 2018, Hale's home was destroyed, being covered with lava from the Kilauea volcano eruption. Hale filed a claim with Lloyd's based upon the loss of his home. The claim was denied. Subsequently, however, Lloyd's issued a check for the full amount of the policy. Both Hale and Specialized Loan were listed as payees on the check. 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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Traub Lieberman Partners Lenhardt and Smith Obtain Directed Verdict in Broward County Failed Repair Sinkhole Trial

September 03, 2019 — Michael Francis Lenhardt & Burks A. Smith, III - Traub Lieberman
On Tuesday, July 16, 2019, Traub Lieberman Partners Michael Lenhardt and Burks Smith won a Directed Verdict at trial in a dispute over Sinkhole Loss coverage in Broward County Circuit Court. The lawsuit arose out of a claim for Breach of Contract involving an alleged “failed repair” of a 2005 sinkhole at the insureds’ property. The Plaintiffs argued that their Policy Limits did not apply because the carrier allegedly undertook the subsurface repairs, relying on Drew v. Mobile USA Ins. Co., 920 So.2d 832 (Fla. 4thDCA 2006). The Plaintiffs asserted that because the insurance company allegedly hired the below ground repair company, a “new contract” was formed, and the Plaintiffs should be entitled to limitless repairs to their home, notwithstanding the Policy Limits. This argument obviously presented the carrier with very significant exposure. Attorneys Lenhardt and Smith provided a vigorous defense for the insurance company at trial, during which they presented the jury with evidence that the carrier did not, in fact, hire the subsurface repair company. They further established to the jury that the insureds actually signed a contract with the repair company directly, and that the defendant did not invoke the Our Option repair clause of the Policy. After the Plaintiffs rested their case, Mr. Lenhardt and Mr. Smith moved the Court for entry of a directed verdict. The defense argued to the Court that the Plaintiffs could not prove their case to the jury based upon the facts presented as a matter of law, thus entitling the insurance company to a defense verdict. Reprinted courtesy of Michael Francis Lenhardt, Traub Lieberman and Burks A. Smith, III, Traub Lieberman Mr. Lenhardt may be contacted at mlenhardt@tlsslaw.com Mr. Smith may be contacted at bsmith@tlsslaw.com Read the court decision
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No Coverage for Construction Defect Claim Only Impacting Insured's Work

January 08, 2024 — Tred R. Eyerly - Insurance Law Hawaii
In a coverage dispute between two insurers over a claim for damages caused by faulty workmanship, the court found there was no right to equitable contribution or indemnity. Travelers Prop. Cas. Co. of Am. v. Mallcraft, Inc., 2023 Cal. Super. LEXIS 67568 (Cal. Super. Ct. Sept. 15, 2023). Mallcraft was the general contractor for a building project and was sued for construction defects. Travelers was an additional insured under a policy issued to a subcontractor, KitCor. Travelers defended Mallcraft in an arbitration. Travelers sought equitable contribution and equitable indemnity from Hartford, Mallcraft's insurer. Mallcraft and Travelers stiulated to a judgment agianst Mallcraft for all costs Travelers incurred in the arbitration. Travelers' insured, KitCor, was not implicated in the construction defect claims against Mallcraft. The judgment set forth findings, including the fact that the underlying plaintiff never made any claim that KitCor perfomred work on the project or casued property damage. 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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Will Colorado Pass a Construction Defect Reform Bill in 2016?

December 17, 2015 — Beverley BevenFlorez-CDJ STAFF
According to blogger Jill Jamieson-Nichols of the Colorado Real Estate Journal, another construction defects bill may be debated in Colorado next year. Representative Dan Pabon told Jamieson-Nichols that “the answer lies in ‘thinking about the insurance piece’ so condominium developers can afford insurance against litigation that might arise.” She also stated that the city of Denver is considering ways to increase funding to increase affordable housing in the area. Read the court decision
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New Home Construction Booming in Texas

October 24, 2022 — Jason Daniel Feld & Ron Raydon - Kahana Feld

With the rapid relocation trends of families moving to Texas, it was reported that new residential construction permits in Texas grew to a total value in excess of $2 billion and over 7,500 new construction permits in September 2022 alone. D.R. Horton lead the way with 1,139 new permits, while Lennar Homes clocked 696 new permits. Other leading homebuilders including KB Homes (239 permits) and Pulte Homes (253 permits) remained active heading into the 4th Quarter of 2022. The following is a breakdown of new permits and average home values in the 4 largest cities in Texas (Houston, Dallas, Austin and San Antonio) for September 2022:

Houston

Last month, there were approximately 340 home builders with new permits on record in the Houston area, and the following ranked as the top five total new permits:

Builder	Total Permits	Average Value
1-D.R. Horton	483	$ 129,812.00
2-Camillo Properties	190	$ 147,790.00
3-Lennar Homes	188	$ 195,503.00
4-Meritage Homes	124	$ 248,597.00
5-Wan Pacific Real Estate Development	117	$ 165,044.00

Dallas

In Dallas, there were more than 290 contractors with new residential construction activity on record with HBW last month, and the following ranked as the top five for total new permits:

Builder	Total Permits	Average Value
1-D.R. Horton	555	$ 179,430.00
2-Lennar Homes	232	$ 202,318.00
3-Trophy Signature Homes	111	$ 274,016.00
4-Bloomfield Homes	97	$ 405,235.00
5-Meritage Homes	92	$ 267,425.00

 Austin

Last month, there were nearly 125 home builders with new construction activity on record in the Austin area, and the following ranked as the top five for total new permits for the one-month period:

Builder	Total Permits	Average Value
1-Lennar Homes	150	$ 154,390.00
2-KB Homes	147	$ 253,606.00
3-D.R. Horton	99	$ 200,416.00
4-Taylor Morrison Homes	79	$ 365,183.00
5-David Weekley Homes	64	$ 436,978.00

 San Antonio

In San Antonio, there were nearly 120 contractors with new residential construction activity on record last month, and the following ranked as the top five for total new permits:

Builder	Total Permits	Average Value
1-Lennar Homes	126	$ 174,315.00
2-KB Homes	55	$ 254,109.00
3-Pulte Homes	52	$ 241,012.00
4-M/I Homes	51	$ 237,283.00
5-LGI Homes	30	$ 202,760.00

The residential construction boom is Texas does not appear to be slowing down anytime soon. With new corporations relocating corporate offices to the Lone Star State each year, we expect this trend to continue for the foreseeable future. And with increased home production, we will closely monitor the increase in construction related litigation over the next five to ten years.

The increase in market activity attracts new or inexperienced builders and tradesman, making the importance of a proactive approach to construction management all the more important. Given the labor shortages and supply chain issues. It is imperative that Texas homebuilders take extra precautions to ensure quality construction practices and oversight to minimize potential litigation.

Reprinted courtesy of Jason Daniel Feld, Kahana Feld and Ron Raydon, Kahana Feld

Mr. Feld may be contacted at jfeld@kahanafeld.com

Mr. Raydon may be contacted at rraydon@kahanafeld.com

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NTSB Sheds Light on Fatal Baltimore Work Zone Crash

April 25, 2023 — Justin Rice - Engineering News-Record
The National Transportation Safety Board recently released conclusions of a preliminary investigation into a March 22 crash that killed six construction workers when an errant car sped through a work zone along the Interstate-695 Beltway in Baltimore. Reprinted courtesy of Justin Rice, Engineering News-Record Mr. Rice may be contacted at ricej@enr.com Read the full story... Read the court decision
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