Cambridge Massachusetts Building Expert Directory

5 Questions about New York's Comprehensive Insurance Disclosure Act

February 14, 2022 — Richard W. Brown & Michael V. Pepe - Saxe Doernberger & Vita, P.C.
On December 31, 2021, New York enacted the Comprehensive Insurance Disclosure Act (“CIDA”), requiring defendants to provide plaintiffs with “complete” information for any insurance policy through which a judgment could be satisfied, within sixty (60) days after serving an answer. The stated goal is to reduce delay tactics by compelling disclosures of all policies implicated by a claim as well as other claims, contracts, or agreements that may deplete available coverage or residual limits of policies that have already been eroded by other payments. The impact of CIDA’s disclosure requirements may be scaled back by proposed amendments currently pending before the New York state legislature. 1. What does CIDA Require? CIDA requires the automatic disclosure of insurance information to plaintiffs. New York’s Civil Practice Law & Rules (“CPLR”) 3101(f) permits civil discovery of the contents of existing insurance agreements by which an insurer may be liable for all or part of a judgment. However, CIDA amends the CPLR to mandate that defendants must automatically disclose the following information in all pending cases starting March 1, 2022, or within sixty (60) days of filing an answer to a complaint going forward:

Complete copy of all insurance policies that are available to satisfy all or part of a potential judgment.

This includes Primary, Excess, and Umbrella policies.

The relevant applications for insurance.

Reprinted courtesy of Richard W. Brown, Saxe Doernberger & Vita and Michael V. Pepe, Saxe Doernberger & Vita Mr. Brown may be contacted at RBrown@sdvlaw.com Mr. Pepe may be contacted at MPepe@sdvlaw.com Read the court decision
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How Long is Your Construction Warranty?

February 26, 2015 — Craig Martin – Construction Contractor Advisor
The Nebraska Court of Appeals threw a wrench into the calculation of your warranty earlier this year in Adams v. Manchester Park, LLC and Southfork Homes, Inc. In that case, the court found that the statute of limitations for a warranty claim started running after the homebuilder’s warranty expired. So, the four year breach of warranty statute of limitations did not begin until after the one year homebuilder warranty expired. In this case, the homeowner purchased a home from Southfork in September, 2007. The purchase agreement provided for a one-year New Home Limited Warranty which covered material defects in workmanship and materials. The homeowner noticed cracks in the drywall and problems with windows within 6 months of the purchase. The builder told the homeowner to keep track of all the problems and they would be fixed at the yearend walk through. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

Largest Per Unit Settlement Ever in California Construction Defect Case?

October 28, 2011 — CDJ STAFF

BusinessWire reports that the Chelsea Court Homeowners Association has settled their construction defect case for $5.4 million. That works out to $169,000 per unit, which BusinessWire describes as “California’s largest per-unit recovery known to be on record to date.”

Most of the money in the settlement is coming from insurance companies for the builder and thirteen subcontractors. Issues included roof and window leaks, deck failures, and unsafe walkways.

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Ohio: Are Construction Defects Covered in Insurance Policies?

January 09, 2015 — Beverley BevenFlorez-CDJ STAFF
Amanda M. Leffler of Brouse McDowell analyzed Ohio’s 2012 Supreme Court case Westfield Ins. Co. v. Custom Agri Sys., Inc., which ruled that “’[c]laims of defective construction or workmanship brought by a property owner are not claims for ‘property damage’ caused by an ‘occurrence’ under a commercial general liability policy.’” Leffler stated that the Ohio Supreme Court decision wasn’t as “sweeping” as it might at first appear: “Rather, the Ohio Supreme Court adopted the rule that construction defects are covered ‘occurrences’ within the meaning of commercial general liability (‘CGL’) policies, but only to the extent that property other than the policyholder’s own work is damaged.“ Read the court decision
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Supreme Court’s New York Harbor Case Isn’t a ‘Sopranos’ Episode

August 03, 2022 — Stephen L. Carter - Bloomberg
The long-simmering harbor dispute between New York and New Jersey has observers reaching for illustrations from “The Sopranos” and “On the Waterfront.” But now that the US Supreme Court has agreed to adjudicate the spat, I wonder whether a more useful resource might be “The Paper Chase.” The disagreement stems from New Jersey’s determination to exit the Waterfront Commission of New York Harbor, an entity established by the two states back in 1953 in response to news reports of widespread corruption and violence among those who loaded and unloaded ships. New Jersey argues that as a sovereign state, it can’t be forced to remain in the pact forever. New York replies that the deal has the force of law and neither state can quit without the permission of the other. (And Congress!) The Supreme Court is now involved because that’s the venue the Constitution prescribes when one state sues another. Four days before New Jersey’s announced departure date of March 28, the justices issued an injunction preventing the move. This week they agreed to adjudicate the dispute and set an accelerated schedule for briefs and oral argument. Read the court decision
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Reprinted courtesy of Stephen L. Carter, Bloomberg

The Pandemic of Litigation Sure to Follow the Coronavirus

March 30, 2020 — Aaron Lovaas - Newmeyer Dillion
As the Coronavirus crisis persists, America’s richly diverse private business sector finds itself increasingly subject to unprecedented governmental orders and restrictions that were unheard of only a few weeks ago. While the various “shutdown,” “shelter in place,” and “non-essential business” orders all aim to protect the public health, there is no doubt that the wave of litigation to follow is already swelling. Business interruption, civil authority, and cyber insurance coverages have already been widely discussed as issues certain to be litigated over the coming months and beyond. Additionally, breach of contract litigation is likely to spike as parties attempt to recoup their losses from canceled events, unfulfilled purchase commitments and other unmet obligations. Moreover, regional and national businesses are now in the difficult position of managing their respective affairs to comply with a patchwork of executive orders that are inconsistent from state to state. And, as the pandemic wears on, many are questioning the authority under which some of these executive orders and emergency regulations are being issued in the first place. Indeed, constitutional challenges are almost certain to follow as the business community reframes the characterization of their losses into notions of unconstitutional takings of private property and governmental impairment of private contract rights. Read the court decision
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Reprinted courtesy of Aaron Lovaas, Newmeyer Dillion
Mr. Lovaas may be contacted at aaron.lovaas@ndlf.com

Final Furnishing Date is a Question of Fact

November 10, 2016 — David Adelstein – Florida Construction Legal Updates
Construction liens need to be recorded within 90 days from the lienor’s final furnishing date on the project. This date is exclusive of punchlist or warranty work. The final furnishing date needs to be proven at trial to establish that the construction lien was timely recorded. If there is an evidentiary dispute as the final furnishing date (the contractor claims the date was “x” to establish the lien was timely and the owner claims the date was “y” to establish the lien was untimely), then the date is a question of fact to be determined by the jury. For instance, in Best Drywall Services, Inc. v. Blasczyk, 2016 WL 6246701 (Fla. 2d DCA 2016), a contractor and owner entered into an oral agreement for a residential renovation project. The contractor recorded a construction lien after its final two invoices went unpaid. During trial, the contractor offered conflicting evidence as to when its final furnishing date on the project was. Numerous dates were offered in the record including dates that were more than 90 days prior to the date the contractor recorded its lien, meaning the lien was arguably untimely. As a result, the trial judge entered a directed verdict in favor of the owner and against the contractor on the contractor’s lien claim finding the lien was untimely recorded. Read the court decision
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Reprinted courtesy of David Adelstein, Katz, Barron, Squitero, Faust, Friedberg, English & Allen, P.A.
Mr. Adelstein may be contacted at dma@katzbarron.com

Billionaire Row Condo Board Sues Developers Over 1,500 Building Defects

September 29, 2021 — Robert Burnson, Bloomberg
The condo board at one of New York’s tallest and toniest towers sued the building’s developers, claiming design flaws are to blame for flooding, stuck elevators and “horrible and obtrusive noise and vibration.” The residential tower at 432 Park Avenue is a 1,396-foot skyscraper overlooking Central Park that was opened in 2015 on the city’s so-called Billionaire Row. The condo board claims its engineering consultant has identified more than 1,500 construction and design defects — “many of which are described as life safety issues.” The board that represents the condo owners sued the developers, CIM Group and Macklowe Properties, and the company, also known as sponsor, that the developers formed to build the tower. The board is seeking $250 million, plus punitive damages, in the lawsuit, filed Thursday in New York Supreme Court. Read the court decision
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Reprinted courtesy of Robert Burnson, Bloomberg

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