Should CGL Insurer have Duty to Defend Insured During Chapter 558 Notice of Construction Defects Process???
September 01, 2016 —
David Adelstein – Florida Construction Legal UpdatesDoes a CGL insurer have a duty to defend its insured-contractor during Florida Statutes Chapter 558 notice of construction defects pre-suit process? This answer is currently undecided and will be up to the Florida Supreme Court to decide. (It is on appeal stemming from a federal district court saying that an insurer does not have a duty to defend its insured-contractor in the 558 process based on the definition of the word “suit” in the CGL policy.)
Why is this an important issue?
The 558 pre-suit notice of construction defects process is designed to facilitate an avenue for construction defect lawsuits to get resolved without having to file a lawsuit or, at least, have issues narrowed before a lawsuit needs to be filed. (Check here for a summary of the 558 process.) It requires pre-suit notifications so that implicated parties can become aware of the defects and have an opportunity to inspect the defects / damage, test the defects / damage, and respond to the notice of construction defects; it provides an avenue for beneficial pre-suit discovery. Through participating in the 558 process, the contractor and/or design professional (and those downstream from them) can: (i) offer to remedy the defect, (ii) settle the defect, whether through money or a combination of money and repairs, (iii) dispute the defect, or (iv) advise that available insurance proceeds will be determined by its liability insurer. See Fla. Stat. s. 558.004.
Read the court decisionRead the full story...Reprinted courtesy of
David M. Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
A Court-Side Seat: SCOTUS Clarifies Alien Tort Statute and WOTUS Is Revisited
July 11, 2021 —
Anthony B. Cavender - Gravel2GavelWhat follows is a brief account of some of the notable U.S. environmental and administrative law cases recently decided.
THE U.S. SUPREME COURT
Nestle USA, Inc. et al. v. Doe, et al.
The Supreme Court has decided another important case interpreting the Alien Tort Statute. Released on June 17, 2021, this decision reverses the Ninth Circuit which had ruled that the respondents—six individuals who alleged they were child slaves employed on Ivory Coast cocoa farms, could sue the American-based companies for aiding and abetting child slave labor. Without dissent, the Court rejected this reading of the ATS and affirmed its own recent rulings on the scope of the ATS.
Read the court decisionRead the full story...Reprinted courtesy of
Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
New Jersey Supreme Court Hears Arguments on Coverage Gap Dispute
October 26, 2017 —
Austin D. Moody - Saxe Doernberger & Vita, P.C.On Tuesday, October 24, the New Jersey Supreme Court heard arguments in a 17-year-old battle over whether Honeywell International Inc. (Honeywell) will have to help cover the costs of asbestos-related injury suits that were filed against it after insurers began to universally exclude coverage for asbestos-related liabilities. The Court considered the arguments made by two excess insurers, St. Paul Fire and Marine Insurance Co. (St. Paul) and parent Travelers Casualty and Surety Co. (Travelers), that the Court should overturn a state appellate court’s ruling that Honeywell does not have to contribute to these costs.
During the course of this case, Honeywell has sought coverage under more than 300 different policies, ultimately settling with all insurers except St. Paul and Travelers, who had issued a total of 10 excess policies to Honeywell’s predecessor, Bendix Corp. (Bendix) between 1968 and 1983. Honeywell has only sought coverage for claims made by individuals who allege that they were first exposed to asbestos prior to 1987.
Read the court decisionRead the full story...Reprinted courtesy of
Austin D. Moody, Saxe Doernberger & Vita, P.C.Mr. Moody may be contacted at
adm@sdvlaw.com
Legislative Update: Bid Protest Law Changes to Benefit Contractors
November 24, 2019 —
Brett M. Hill - Ahlers Cressman & Sleight PLLCA new statute became effective July 28, 2019 that benefits contractors who have bid protests in Washington. A bid protest is the only way for disappointed bidders to challenge irregularities in the public bidding process on public works projects. Bid protests ensure the integrity of the public bidding system and are the contractor’s only remedy if its bid is improperly rejected or the winning bidder has errors in its bid that render it nonresponsive.
Under the old law, a contractor was required to submit their bid protest within 2 days after the bid opening. The problem was that a contractor often does not know the basis to protest an award without seeing the other bids to determine whether the winning bid was responsive. Many owners provide copies of the bids if requested at the bid opening, but some contractors found that owners were refusing to provide copies of the other bids until after the 2-day protest period expired.
The new law, which passed this last Legislative session[1], states that a contractor has two days after the bid opening to either submit a written protest or request copies of the competing bids. If the contractor requests copies of the competing bids from the owner, the contractor then has until 2 days after the competing bids are provided by the owner before the contractor is required to submit its bid protest.
Read the court decisionRead the full story...Reprinted courtesy of
Brett M. Hill, Ahlers Cressman Sleight PLLCMr. Hill may be contacted at
brett.hill@acslawyers.com
Congratulations to Las Vegas Partner Jeffrey W. Saab and Associate Shanna B. Carter on Obtaining Another Defense Award at Arbitration!
January 14, 2025 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPThe case arose from an incident at Plaintiff’s residence where she alleged that a failure to properly diagnose an issue with her HVAC unit led to its destruction, displacement from her home, and damage to her roof and kitchen, resulting in a diminution of value to her house. Jeff and Shanna represented the HVAC contractor, who denied any wrongdoing during the two-day arbitration at which a total of six witnesses were examined. Jeff and Shanna utilized Plaintiff’s own experts’ testimony to successfully challenge liability and bring forth a motion for spoliation, resulting in a complete defense award for Jeff and Shanna’s client, which included an award of costs.
Read the court decisionRead the full story...Reprinted courtesy of
Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Attorneys Fees Under California’s Prompt Payment Statutes. Contractor’s “Win” Fails the Sniff Test
October 02, 2015 —
Roger Hughes – California Construction Law BlogThis past month, the California Court of Appeals for the Third District, in James L. Harris Painting & Decorating, Inc. v. West Bay Builders, Inc., Case No. C072169 (August 27, 2015), handed down a decision in a construction contract battle that has raged since 2007. And, once again, the winner is . . . in the words of Justice Andrea Lynn Hoch who authored the opinion . . . . “no prevailing party in [the] case” and hence “no prevailing party attorney’s fees [ ] awarded.”
Background
In Harris, subcontractor James L. Harris Painting & Decorating, Inc. (“Harris”) sued general contractor West Bay Builders, Inc. (“West Bay”) for extra work performed on a school construction project in Stockton, California. Among its claims, Harris asserted that West Bay was liable under California’s prompt payment statutes for failure to timely pay Harris.
Read the court decisionRead the full story...Reprinted courtesy of
Roger Hughes, Wendel Rosen Black & Dean LLPMr. Hughes may be contacted at
rhughes@wendel.com
Tall Mass Timber Buildings Now Possible Under 2021 IBC Code Changes
February 03, 2020 —
Kenneth Bland - Construction ExecutiveThe International Code Council (ICC) has approved 17 changes to the 2021 editions of the International Building Code (IBC) and International Fire Code, allowing for mass timber buildings up to 18 stories. With the addition of three new mass timber construction types (Type IV-A, IV-B, and IV-C), this is the first time in the history of the modern building code that significantly new construction types have been added to the code.
Building Materials
The primary building material that makes tall mass timber (TMT) buildings possible is cross-laminated timber (CLT). CLT is manufactured from dimension lumber (nominal 2x lumber) laid side-by-side or mass plywood panels of a specified width. Laminations of lumber are typically laid perpendicular to each other to form panels of various thicknesses that are bonded together using heat resistant adhesives that cure in large hydraulic presses. CLT commonly consists of an odd number of laminations.
These solid wood panels can be anywhere from 6 inches to 20 inches nominal thickness and 60 feet long. Typical CLT panels will be 6 inches to 14 inches nominal thickness. The panels are fabricated off site, transported onto the construction site and assembled in a manner that is efficient and remarkably fast. CLT panels can be used as floor, wall, or roof building elements supported by glued-laminated beams and columns.
Reprinted courtesy of
Kenneth Bland, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Facts about Chinese Drywall in Construction
September 10, 2014 —
William M. Kaufman – Construction Lawyers BlogMost of us have heard that there are problems with Chinese drywall, but do not really know what specifically is wrong with it when it comes to construction in the United States.
Let’s begin with a brief overview about why Chinese drywall came to be used in the United States in the first place. Chinese drywall was first imported into the United States beginning in 2001. Most of the homes that have Chinese drywall were built between 2001 and 2008. During the construction boom, Chinese drywall was being imported into the U.S. partly due to the shortage of American-made drywall as a result of several hurricanes that devastated Florida in 2004-2005, and the damage caused by Hurricane Katrina. Hundreds of millions of pounds of Chinese drywall were imported into the United States during that time period. While this is only a fraction of the percentage of drywall used in American homes, the problem has been concentrated in certain regions of the country, mostly the South.
So what is the problem with Chinese Drywall? To understand it, we must first explore what constitutes drywall. Drywall is a building material made of a gypsum-based sheet of plaster covered with heavy paper on both sides. Drywall is also referred to as plasterboard or sheetrock. Testing of Chinese drywall has found unusually high instances of pyrite. There is speculation that the pyrite oxidation results in sulfur compounds being released by the drywall during periods of high heat and humidity. The combination of high temperatures and humidity is ripe for bringing out problems associated with Chinese drywall. That is why most cases associated with Chinese drywall are found in the Southeastern United States. Reports show that homeowners typically complain of corroding copper in their homes, and a rotten egg odor emanating from copper surfaces that, in turn, turn black and exhibit a powdery ash type substance. Experts opine that this is a result of a reaction of the copper with hydrogen sulfide. Much of wiring or piping found in homes is made of copper. Exposure to Chinese drywall can result in nose bleeds, headaches, coughs, upper respiratory or sinus problems, rashes, and difficulty breathing. There have also been cases reported of pets dying due to exposure to Chinese drywall.
Reprinted courtesy of
William M. Kaufman, Lockhart Park LP
Mr. Kaufman may be contacted at wkaufman@lockhartpark.com, and you may visit the firm's website at www.lockhartpark.com
Read the court decisionRead the full story...Reprinted courtesy of