California Appellate Court Rules That Mistakenly Grading the Wrong Land Is Not an Accident
June 27, 2022 —
Jared De Jong & Scott S. Thomas - Payne & FearsIn a decision that further muddies the already murky waters of “occurrence” jurisprudence, the California Court of Appeal has ruled that a general liability policy does not cover a homeowner who mistakenly grades the wrong piece of land because the act of grading land is not “accidental.”
In Ghukasian v. Aegis Security Insurance Company, ___ Cal. App. 5th ___, 2022 WL 1421511 (2022), a homeowner instructed her contractor to clear and level a piece of land that the homeowner believed was part of her property. Unfortunately, the land was owned by a neighbor, who sued the homeowner and the contractor for trespass and negligence. The homeowner tendered to her insurer, Aegis. The homeowner’s policy contained a standard insuring agreement creating coverage for property damage caused by an “occurrence,” defined by the policy as an “accident, including continuous or repeated exposure to substantially the same general harmful conditions.” The insurer denied coverage, arguing that intentionally grading land is not an accident. Coverage litigation ensued.
Reprinted courtesy of
Jared De Jong, Payne & Fears and
Scott S. Thomas, Payne & Fears
Mr. De Jong may be contacted at jdj@paynefears.com
Mr. Thomas may be contacted at sst@paynefears.com
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Construction Litigation Roundup: “You Left Out a Key Ingredient!”
September 12, 2023 —
Daniel Lund III - Lexology“Baking is as much of a science as it is an art. It’s important to take the time to understand what you’re doing and why. Skipping steps can make or break your cupcakes, and there are a lot of things that can go wrong when baking from scratch.”
And so it is with construction contract drafting.
Defendants on a Miller Act claim filed by a second-tier subcontractor in federal court in Pensacola, Florida, sought to have the case transferred to Virginia, based upon a forum selection clause in the first-tier subcontract.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
My Top 5 Innovations for Greater Efficiency, Sustainability & Quality
October 25, 2020 —
Cristina Savian - AEC BusinessAs a construction professional and British citizen, I genuinely could not have been any prouder and humbled to have opened UK Construction Week Virtual last week.
2020 is the year of disruptions, and we are all looking for this “New Normal”, and while this newfound regularity may have opened new opportunities, as we are now broadcasting to a much wider audience than previous in-person events, and indeed we have to thank technology for that. For us construction professionals, this pandemic has put our industry further under pressure, however, it has also taught us something extremely important. The pandemic has shown the world how vital the construction industry is. The world cannot function without it. This new extraordinary experience has given us the prospect to turn our industry around and transform it into one of the most productive industries in our society.
How are we going to do it? I think you can guess what I am about to say, of course by leveraging technology! The panel discussion with leading construction experts across the UK with representatives from Skanska UK, Bryden Wood, and Innovate UK, focused on our top 5 innovations for greater efficiency, sustainability and quality in construction. Here are my top 5.
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Cristina Savian, AEC Business
Are Untimely Repairs an “Occurrence” Triggering CGL Coverage?
January 17, 2023 —
Christopher G. Hill - Construction Law MusingsAll Class A commercial contractors in Virginia are required to have a minimum level of Commercial General Liability (CGL) coverage. As a general rule, this insurance is there for damage to property or persons arising from an “occurrence” that is covered by the policy. Many cases that are litigated relating to coverage for certain events under a CGL policy turn on the definition of “occurrence” and whether the event leading to a request for coverage constitutes an “occurrence.”
A recent case in Fairfax County, Virginia,
Erie Insurance Exchange v. Spalding Enterprises, et al., is just such a case. In the Spalding Enterprises case, the Court considered the following scenario. A homeowner, Mr. Yen contracted with Spalding Enterprises to fix some fire damage at his home. Spalding promised the repairs would be complete in October of 2019. However, after Mr. Yen paid a $300,000.00 deposit, Spalding Enterprises stated that the work would not be completed until November of 2019. Yen then fired Spalding Enterprises and sued for breach of contract, constructive fraud, and violation of the Virginia Consumer Protection Act. Spalding Enterprises sought coverage from Erie Insurance for the claim and Erie denied coverage and sought a declaratory judgment that the events alleged in the Complaint by Mr. Yen did not fall under the definition of “occurrence” in the CGL policy held by Spalding Enterprises.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
In Review: SCOTUS Environmental and Administrative Decisions in the 2020 Term
August 10, 2021 —
Anthony B. Cavender - Gravel2GavelSeveral decisions of interest were issued in the 2020 term, which stretched from October 2020 until early July 2021. This review will concentrate on environmental and administrative law cases.
Texas v. New Mexico
On December 14, 2020, the Court issued its ruling in an Original Action. Water is precious in the Pecos River Valley, and the distribution of water is governed by the Pecos River Compact. Here, Texas complained that New Mexico illegally was seeking delivery credits for evaporated water credits but the Court agreed that New Mexico was entitled to these credits under the provisions of the River Master’s Manual.
Florida v. Georgia
On April 1, 2021, in another waters right ruling on an Original Action filed in the Supreme Court, the Court rejected Florida’s claims that Georgia’s use of interstate waters harmed Florida’s businesses. Florida had to satisfy a heavy burden of proof, which it failed to do.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Landlord Duties of Repair and Covenant of Quiet Enjoyment
February 10, 2020 —
Lawrence S. Glosser - Ahlers Cressman & Sleight PLLCA recent case from Division I Washington Court of Appeals addressed both a landlord’s duties of repair and maintenance and the Covenant of Quiet Enjoyment in commercial leases. Votiv, Inc. v. Bay Vista Owner LLC, No. 78289-4-I, 2019 WL 4419446 (Wash. Ct. App., Sept. 16, 2019).
The Plaintiff in that case leased an office space in a mixed-use residential/office/commercial building in Seattle. Although the ownership groups of the various portions of the building were each separate, the entire building was managed by defendant Bay Vista Owner LLC (“BVO”), that was also the Plaintiff’s landlord.
There was a need to replace a deteriorating roof membrane to repair water intrusion into the building. The work involved significant demolition on the roof surface over the premises that Votiv, Inc. (“Votiv”), a music/media company, leased on the top floor. The repair work was done primarily during business hours causing significant disturbance to Votiv’s business operations.
Votiv sued BVO and other defendants for, among other things, nuisance, breach of lease, constructive eviction, and breach of the covenant of quiet enjoyment. The trial court denied Votiv’s claim for injunctive relief and granted summary judgment to the Defendants.
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Lawrence S. Glosser, Ahlers Cressman & Sleight PLLCMr. Glosser may be contacted at
larry.glosser@acslawyers.com
Pulte’s Kitchen Innovation Throw Down
December 10, 2015 —
Beverley BevenFlorez-CDJ STAFFPulte Group’s national purchasing director, Kellee Hansen, created a kitchen competition where six unaffiliated manufacturers competed against each other to build a kitchen vignette based on three consumer segments, reported Builder Online.
On October 19th, each team had fifteen minutes to present their vignettes to about 100 people.
“In our industry, I think we lack some collaboration, historically,” Hansen told Builder Online. “Listening to our suppliers just makes us better and it makes us better as an industry. I think it raises the level for all our peers as well when we listen to our manufacturers.”
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Is it the End of the Story for Redevelopment in California?
October 02, 2015 —
Garret Murai – California Construction Law BlogLong, long ago (in 2012 to be exact) in a land not so far away (also known as California), legislation which allowed local governments to establish redevelopment agencies tasked with eliminating blight through the development, reconstruction and rehabilitation of residential, commercial, industrial and retail districts were abolished.
Note: For a relatively concise history of redevelopment in California see the U.S. Department of Housing and Urban Development’s working paper
Redevelopment Agencies in California: History, Benefits, Excesses, and Closure (January 2014).
A quite war has been waged ever since. Cities, community development commissions, successor agencies to redevelopment agencies, nonprofit housing corporations and individual taxpayers have fought the legislation (AB 1X 26 (Blumenfield 2011)) which eliminated California’s 425 redevelopment agencies, principally, on constitutional grounds.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com