How AI and Machine Learning Are Helping Construction Reduce Risk and Improve Margins
November 28, 2018 —
Manu Venugopal - Construction ExecutiveThe construction industry is often characterized as high risk and low margin. According to a McKinsey report, almost 98 percent of projects incur cost overruns or delays. Meanwhile, the construction productivity curve has remained flat when compared to other industries.
In the last decade, with the advent of cloud and mobile technologies, industry leaders have been focused on digitizing construction workflows. This has resulted in improved efficiencies, but also has created an explosion of new data sources in the construction industry. Project teams are now capturing and documenting data on mobile devices, site progress is documented via drones and sensors are used to create a connected jobsite.
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Manu Venugopal, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Six-Month Prison Term for Role in HOA Scam
January 28, 2013 —
CDJ STAFFBen Kim, the former police lieutenant whose wife is one of the figures in the scheme to take over Las Vegas homeowner associations in order to profit from construction defect settlements, might face a six-month sentence in a bank fraud scheme. Mr. Kim has plead guilty in the charges that he submitted false financial documents. Others who were involved in the homeowner scandal, including Mr. Kim's wife, were also involved in this case.
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Products Liability Law – Application of Economic Loss Rule
April 02, 2024 —
David Adelstein - Florida Construction Legal UpdatesWhen it comes to product liability law, one important doctrine that will always come up is the economic loss rule. The economic loss rule, oftentimes going by its acronym ELR, lives and breathes in the realm of product liability law.
Does the economic loss rule extend to a manufacturer’s distributor for a duty to warn when the product is NOT defective? A recent opinion out of the Eleventh Circuit Court of Appeals, NBIS Construction & Transport Ins. Services v. Liebherr-America, Inc., 2024 WL 861257 (11th Cir. 2024), was confronted with this question, including whether the economic loss rule should even extend to a distributor of a product, and certified the following to Florida’s Supreme Court to answer: “Whether, under Florida law, the economic loss rule applies to negligence claims against a distributor of a product, stipulated to be non-defective, for the failureto alert a product owner of a known danger, when the only damages claimed are to the product itself?” NBIS, supra, at *8.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Teaching An Old Dog New Tricks: The Spearin Doctrine and Design-Build Projects
October 30, 2018 —
John Castro - Gordon & Rees Construction Law BlogThe United States District Court for the Southern District of California has now held that the Spearin doctrine applies to design-build subcontractors where the subcontractor is expected to design a portion of their work. The case is United States for the use and benefit of Bonita Pipeline, Inc., et al. v. Balfour Beatty Construction, LLC, et al. (“Bonita Pipeline”) (Case No. 3:16-cv-00983-H-AGS).
In Bonita Pipeline, a subcontractor sued the general contractor and its sureties alleging breach of contract, breach of implied warranty, declaratory relief, and recovery under the Miller Act. The subcontractor then filed a motion for partial summary judgment against the general contractor on its declaratory relief cause of action, seeking a finding that the general contractor could not shift legal responsibility for its defective plans and specifications to the subcontractor.
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John Castro, Gordon & Rees Scully MansukhaniMr. Castro may be contacted at
jcastro@grsm.com
Buyers Are Flocking to NYC’s Suburbs. Too Bad There Aren’t Many Homes to Sell.
February 20, 2023 —
Jennifer Epstein & Prashant Gopal - BloombergIn the midst of the worst US housing slump in a decade, a wave of finance and tech layoffs and drumbeats of a potential recession, open houses in affluent New York suburbs are packed.
Offers come in fast — sometimes for hundreds of thousands over asking.
A typical scene played out on a cloudy Sunday last month in Scarsdale, a suburb about 20 miles (32 kilometers) north of Manhattan known for its bucolic setting and high-rated schools. At the tail end of an open house, a dozen people were still wandering in and around a 1926 Tudor-style house listed for about $1.93 million.
An older couple took video on their iPhone for their offspring too busy to attend, while a younger man walked around with his infant in a chest carrier. The house was in need of some touch-ups. Somebody whispered that the hardwood floors were scratched, another said that the refrigerator looked warped, and a pair of kitchen cabinet doors was missing. It hardly mattered.
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Jennifer Epstein, Bloomberg and
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Emotional Distress Damages Not Distinct from “Annoyance and Discomfort” Damages in Case Arising from 2007 California Wildfires
February 16, 2017 —
Kirsten Lee Price & Lawrence S. Zucker II - Haight Brown & Bonesteel LLPIn Hensley v. San Diego Gas & Elec. Co., (No. D070259, filed 1/31/17), the California Court of Appeal for the Fourth Appellate District held that emotional distress damages are available on claims for trespass and nuisance as part of “annoyance and discomfort” damages.
In Hensley, plaintiffs sustained fire damage to their home and property during the 2007 California wildfires. The Hensleys were forced to evacuate as the fires advanced. Although their home was not completely destroyed, it sustained significant damage and they were not able to return home permanently for nearly two months. Thereafter, the Hensleys filed suit against San Diego Gas and Electric Company (“SDG&E”) asserting causes of action for trespass and nuisance, among others. Mr. Hensley, who had suffered from Crohn’s disease since 1991, further claimed that as a result of the stress from the fire, he experienced a substantial increase in his symptoms and his treating physician opined that “beyond a measure of reasonable medical certainty... the stress created by the 2007 San Diego fires caused an increase of [Mr. Hensley’s] disease activity, necessitating frequent visits, numerous therapies, and at least two surgeries since the incident.” SDGE moved, in limine, to exclude evidence of Mr. Hensley’s asserted emotional distress damages arguing he was not legally entitled to recover them under theories of trespass and nuisance. The trial court agreed and excluded all evidence of such damages.
Reprinted courtesy of
Kirsten Lee Price, Haight Brown & Bonesteel LLP and
Lawrence S. Zucker II, Haight Brown & Bonesteel LLP
Ms. Price may be contacted at kprice@hbblaw.com
Mr. Zucker may be contacted at lzucker@hbblaw.com
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English High Court Finds That Business-Interruption Insurance Can Cover COVID-19 Losses
November 02, 2020 —
Lorelie S. Masters, Scott P. DeVries, Patrick M. McDermott & Jorge R. Aviles - Hunton Insurance Recovery BlogIn a decision that will influence how policyholders and insurers around the world address business-interruption coverage for COVID-19 losses, the English High Court recently handed down its much-anticipated judgment in the “Test Case,” The Financial Conduct Authority (FCA) v. Arch et al. The High Court’s comprehensive analysis will likely serve as an additional tool in policyholders’ arsenal in the ongoing battles over COVID-19 coverage.
The Panel, composed of two well-respected judges, one from the High Court (the UK’s trial court) and the other from the English Court of Appeal, analyzed 21 sample policy wordings in coverage extensions for business-interruption losses due to disease or the issuance of public authority orders. (Many of these wordings are also found in policies sold to US policyholders.) The High Court found that the COVID-19 pandemic and ensuing government actions fell within the coverage provided by the sample policy wordings.
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Lorelie S. Masters, Hunton Andrews Kurth,
Scott P. DeVries, Hunton Andrews Kurth,
Patrick M. McDermott, Hunton Andrews Kurth and
Jorge R. Aviles, Hunton Andrews Kurth
Ms. Masters may be contacted at lmasters@HuntonAK.com
Mr. DeVries may be contacted at sdevries@HuntonAK.com
Mr. McDermott may be contacted at pmcdermott@HuntonAK.com
Mr. Aviles may be contacted at javiles@HuntonAK.com
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Read Carefully. The Insurance Coverage You Thought You Were Getting May Not Be The Coverage You Got
November 27, 2013 —
Bret Cogdill — Higgins, Hopkins, McLain & Roswell, LLCA recent U.S. District Court case in Colorado highlighted the importance for an insured to read and understand the terms of its insurance policy. The case 2-BT, LLC v. Preferred Contractors Insurance Company Risk Retention Group, LLC, Civil Action No. 12CV02167PAB, was a controversy between an insured’s expectations for coverage, and the terms and exclusions of the insurance policy.
2-BT is a heating, ventilation, and air-conditioning (“HVAC”) contractor, which utilizes soldering devices and heat sources among other tools for its trade. 2-BT needed liability insurance to cover its work, and found a provider, Preferred Contractors Insurance Company Risk Retention Group, LLC (“PCIC”). 2-BT read PCIC’s online materials, which stated “PCIC’s personalized underwriting process allows us to tailor coverage to properly outfit the contractor with excellent coverage and rates.”
2-BT filled out a policy application, which included a description of the type of HVAC work it performs, initialed several sections, and signed it. One of the initialed paragraphs on the application, “Policy Exclusions,” stated that damages arising from “fungi/bacteria,” “open flame,” and “use of heating devices,” was not covered. PCIC issued a policy to 2-BT, which included a section titled, “Additional Exclusions” that excluded coverage for mold and damage related to heating elements among others.
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Bret CogdillBret Cogdill can be contacted at
cogdill@hhmrlaw.com