Buyer Beware: Insurance Agents May Have No Duty to Sell Construction Contractors an Insurance Policy Covering Likely Claims
May 20, 2024 —
David McLain - Higgins, Hopkins, McLain & Roswell, LLCConstruction contractors in the market for insurance coverage have few legal protections if their insurance agent fails to provide insurance that covers likely claims against the contractor. As construction defect lawsuits continue to be a frequent occurrence throughout Colorado, we have seen an increase in the number and complexity of coverage endorsements and exclusions in insurance policies. Some of these exclusions result in insurance policies that are essentially useless to the contractor who purchased them. For example, we have seen dirt work contractors with earth movement exclusions or an earth movement sublimit that turns their $2 million policy into a $100,000 policy. We have seen contractors who primarily build tract homes in subdivisions with tract home exclusions. We have seen general contractors whose policies state that every subcontractor must name the contractor as an additional insured or else the general contactor’s policy converts from a seven-figure policy to a five-figure policy with eroding limits (meaning that the attorney’s fees, expert fees, and litigation costs reduce the coverage limits). The list goes on and leads to an unfortunately high number of contractors who pay significant sums for their insurance policies, finding themselves uninsured or underinsured.
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David McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
Court Grants Partial Summary Judgment on Conversion Claim Against Insurer
February 01, 2023 —
Tred R. Eyerly - Insurance Law HawaiiAlthough the court was incredulous that the parties were disputing the possession of a gate opener allegedly damaged in a lightning strike, it granted the insured's motion for partial summary judgment finding the insurer had converted the gate opener. Privratsky v. Liberty Mut. Fire Ins Co., 2022 U.S. Dist. LEXIS 196002 (D. Haw. Oct. 27, 2022). (Full disclosure, our office is co-counsel for the insured).
Mr. Privratsky alleged his home on Maui was struck by lightning which caused an electrical surge. The home and personal property were damaged. The alleged cost of repair work at one point was as much as $325,000. A claim was submitted under a homeowner's policy issued by Liberty Mutual. Liberty paid for only some of the damage. Privratsky filed suit alleging three causes of action for: (1) declaratory judgment that the losses were covered by the policy issued by Liberty; (2) bad faith; and (3) conversion of personal property, namely, the damaged gate operator.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Undercover Sting Nabs Eleven Illegal Contractors in California
January 27, 2014 —
Beverley BevenFlorez-CDJ STAFFA sting operation conducted in Rancho Murieta, California on January 16th by the Statewide Investigative Fraud Team, with assistance from the state Department of Consumer Affairs Division of Investigation netted “11 people accused of illegal, unlicensed home improvement contracting,” reported the Merced Sun-Star. The news source stated that “the statewide drought” provided “a new angle in approaching conservation-minded property owners, according to the Contractors State License Board.”
The accusations included “illegal contracting after seeking bids for exterior painting, fencing and landscaping jobs,” according to the Merced Sun-Star. The eleven individuals received notices to appear in Sacramento Superior Court for arraignment March 27th.
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Texas Windstorm Insurance Agency Under Scrutiny
April 05, 2011 —
Beverley BevenFlorez CDJ STAFFRepresentative Larry Taylor has introduced a bill in the Texas Legislature (HB 2818) that would further regulate the Texas Windstorm Insurance Agency (TWIA). According to Taylor, “In order to be adequately prepared for future hurricane seasons, it is imperative that TWIA be operating at maximum efficiency, that the Reserve Trust Fund be solvent and that the agency have adequate management measures in place to protect consumers and ensure that claims are paid in a timely manner. House Bill 2818 is an important step in the right direction toward restoring public confidence in TWIA.”
HB 2818 includes measures that would create an expert panel that would advise the commissioner on how to evaluate loss from the storm, and a greater transparency of TWIA Board meetings and actions.
In addition, the Texas Department of Insurance (TDI) has placed TWIA on Administrative Oversight. According to TDI, “While under Administrative Oversight, the Department may require its prior review and approval of executive decisions, certain expenditures, and other transactions. The insurer is required to fully cooperate with the Department and provide complete and timely disclosure of all information responsive to Department requests.”
Read the full story (Rep. Taylor’s Press Release)...
Read the full story (Texas Department of Insurance’s Press Release)...
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Muir named Brown and Caldwell Eastern leader
January 09, 2023 —
Brown and CaldwellHARTFORD, Conn., Jan. 04, 2023 — Leading environmental engineering and construction services firm Brown and Caldwell today announces Senior Vice President Eric Muir has been promoted to leader of its growing Eastern business.
The largest of the company's regions with over 40 offices east of the Mississippi River, the Eastern business consists of clients in the water, wastewater, stormwater, environmental services, and water resources sectors.
Muir has a 20-year background in delivering highly technical civil and environmental engineering projects. He has held leadership and technical roles on some of the most complex projects encompassing water and wastewater treatment, distribution and collection, pumping, and conveyance systems. His experience includes master planning, detailed design, permitting, and construction services.
Since joining Brown and Caldwell in 2018, Muir's business development expertise and client-centric focus have played a key role in setting the company's regional strategic direction to achieve strong financial results.
"Eric is a highly strategic and inclusive leader, passionate about mentoring employees to reach their full potential," said Brown and Caldwell Chief Operating Officer Euan Finlay. "His deep knowledge of clients' environmental obstacles will enhance the positive impacts our teams have on the communities we serve."
Based in Connecticut, Muir will manage overall operations and lead the implementation of the firm's strategy in the East. He will continue the region's growth and lead efforts to make Brown and Caldwell the company of choice for clients, employees, and partners. He will work alongside regional leadership to align the firm's talent pool with clients to provide innovative, cost-effective solutions to challenges related to water quality, biosolids management, and aging infrastructure.
About Brown and Caldwell
Headquartered in Walnut Creek, California, Brown and Caldwell is a full-service environmental engineering and construction services firm with 52 offices and 1,800 professionals across North America and the Pacific. For 75 years, our creative solutions have helped municipalities, private industry, and government agencies successfully overcome their most challenging water and environmental obstacles. As an employee-owned company, Brown and Caldwell is passionate about exceeding our clients' expectations and making a difference for our employees, our communities, and our environment. For more information, visit www.brownandcaldwell.com
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Potential Problems with Cases Involving One Owner and Multiple Contractors
January 27, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Matthew Devries’ blog, Best Practices Construction Law, problems can arise in a case with one owner and multiple contractors: “Increasingly, two or more contractors may each have a separate contract with the owner for different portions of the work on a single project.”
The problems occur when contractor responsibilities or storage sites become entangled, “for example, from one contractor’s storage of materials on a site where the other has work to perform, or from one contractor’s failure to progress with work that is preliminary to the other’s work.”
Devries adds that in “addition to claims against the other contractor, claims may also be made against the owner for failure to coordinate the work.”
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New York Signs Biggest Offshore Wind Project Deal in the Nation
August 06, 2019 —
Will Wade, Chris Martin, & Millicent Dent - BloombergNew York has signed the biggest-ever deals for offshore wind power in U.S. history, a key part of the state’s plan to get all of its power from emissions-free sources by 2040.
On Thursday, Governor Andrew Cuomo awarded contracts for two projects off Long Island that will total 1,700 megawatts in capacity. Equinor ASA and a joint venture between Denmark’s Orsted A/S and Massachusetts-based Eversource Energy were chosen to build the farms, which will supply enough power to light up a million homes.
Cuomo is counting on the wind projects to achieve the most aggressive clean energy goal in the U.S., and signed the state’s 100% renewable energy target into law right after announcing the wind contracts. New York’s ultimate plan is to get enough turbines erected off its shores to generate 9,000 megawatts by 2035.
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Will Wade, Chris Martin, & Millicent Dent, Bloomberg
BHA Sponsors the 9th Annual Construction Law Institute
January 21, 2016 —
CDJ STAFF Bert L. Howe & Associates, Inc. is proud to be partnering with the Florida Bar Continuing Legal Education Committee and the Construction Law Committee of the Florida Bar Real Property, Probate and Trust Law Section, as a sponsor and exhibitor at 9th Annual Construction Law Institute to be held March 11th, 12th & 13th, 2016 at the JW Marriott Orlando Grande Lakes in Orlando.
With offices in Miami serving all of Florida, Bert L. Howe & Associates, Inc. (BHA) offers the experience of over 20 years of service to carriers, defense counsel, and insurance professionals as designated experts in nearly 6,000 cases. BHA’s staff encompasses a broad range of licensed and credentialed experts in the areas of general contracting and specialty trades, as well as architects, and both civil and structural engineers, and has provided services on behalf of developers, general contractors and sub-contractors.
BHA’s experience covers the full range of construction defect litigation, including single and multi-family residential (including high-rise), institutional (schools, hospitals and government buildings), commercial, and industrial claims. BHA specializes in coverage, exposure, premises liability, and delay claim analysis as well.
As the litigation climate in Florida continues to change, and as the number of construction defect and other construction related cases continues to rise, it is becoming more important for contractors and builders here to be aggressive in preparing for claims before they are made, and in defending against those claims once they are filed. Since 1993, Bert L. Howe & Associates has been an industry leader in providing construction consulting services, and has been a trusted partner with builders and insurance carriers, both large and small, across the Western and Southern United States. Here in Florida, we have been providing construction defect and construction-claims related forensic expert services for the past decade with a proven track record of successful results.
For those of you planning on attending the conference, or those who may know someone who will be, we encourage you to stop by the BHA booth and we welcome the opportunity to discuss further the broad range of services provided by BHA.
For your convenience, here is a link to the registration page for the 9th Annual Construction Law Institute:
http://www.floridabar.org/FBWEB/CLEReg.nsf/zLocations2/MAOS-A4UK4Z?OpenDocument
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