Coverage Under Builder's Risk Policy Properly Excluded for Damage to Existing Structure Only
April 05, 2017 —
Tred R. Eyerly – Insurance Law HawaiiThe Tenth Circuit affirmed the District Court's determination that there was no coverage under the builder's risk policy. Gerald H. Phipps, Inc. v. Travelers Prop. Cas. Co. of Am., 2016 U.S. App. LEXIS 2764 (10th Cir. Feb. 16, 2017).
GH Phipps Construction Company (GHP) was hired to renovate and expand the University of Denver's library. GHP was completing installation of a new roof on the library when water from melting snow leaked into the building. The water damaged existing drywall and insulation in the stairwells and elevator shafts that GHP planned to preserve and update. Before the snow melt mishap, GHP had completed some preliminary work in the damaged areas to designate locations for future installation of mechanical, plumbing and electrical systems. But GHP had not yet installed any new materials, updated any lighting fixtures, or patched and painted any existing drywall in the damaged areas.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Evaluating Smart Home Technology: It’s About More Than the Bottom Line
May 03, 2021 —
James W. McPhillips & Rachel Newell - Gravel2Gavel Construction & Real Estate Law BlogOutfitting a commercial real estate space with smart technology can be a significant cost. While the long-term benefits and strategic improvements we’ve discussed previously can make that investment worthwhile, the evaluation period is critical to ensure an impactful ROI. Property developers, owners, and managers should undertake a rigorous evaluation process to ensure the technology procurement aligns with the project’s overall financial plan. And this is not just about getting the cost right. If the technology does not meet the needs of the space, then all the smart technology in the world will not prevent the project from being a sunk cost.
Do the Research so You Know …
The Technology. While the RFP is a key step of the procurement process, a more informal research phase should be undertaken first. Smart technology is a rapidly evolving field, and before reaching out to vendors, the business should ensure that it understands what is available—both in terms of the kinds of technology that can be implemented, and the various companies that offer solutions. Gathering this information early will yield results that align more closely with a particular building’s needs.
Reprinted courtesy of
James W. McPhillips, Pillsbury and
Rachel Newell, Pillsbury
Mr. McPhillips may be contacted at james.mcphillips@pillsburylaw.com
Ms. Newell may be contacted at rachel.newell@pillsburylaw.com
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New York’s Highest Court Gives Insurers “an Incentive to Defend”
November 20, 2013 —
CDJ STAFFThe New York Court of Appeals, that state’s highest court, has ruled that when an insurer disclaims duty to defend, “if the disclaimer is found bad, the insurance company must indemnify its insured for the resulting judgment, even if policy exclusions would have otherwise negated the duty to indemnify.” The insurer who makes a failed claim that there was no duty to defend cannot thereafter claim exclusions.
This recent New York decision is discussed by Allen R. Wolff and Eric R. Reed of Anderson Kill in their Policyholder Advisor. They note that the decision “confirms that the estoppel rule applies in New York , as it does in at least four other states.”
But this may not be the last word. American Guarantee made a motion for reargument, which the court granted. The case will return to the court in January 2014. They note that “if paying defense costs is the only consequence an insurance company faces for breaching its duty to defend the insured, an insurance company has a financial incentive to ‘kick the can down the road.’”
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Rental Assistance Program: Good News for Tenants and Possibly Landlords
January 25, 2021 —
Marissa Levy, Rachel A. Schneidman & Nancy Sabol Frantz - White and Williams LLPThe recently enacted $2.3 trillion Consolidated Appropriations Act, 2021 (the Act), which combined a $900 billion coronavirus relief bill as part of a larger $1.4 trillion omnibus spending and appropriations bill for the 2021 federal fiscal year, contains key provisions that directly impact the hard-hit real estate industry. In particular, Section 501 of Subtitle A of Title V of Division N of the Act establishes the “Emergency Rental Assistance program” (ERA), which appropriates $25 billion through the U.S. Department of the Treasury (Treasury) to provide eligible households with direct financial housing assistance. The enactment of the ERA provides landlords, tenants, borrowers, potential buyers, financial institutions and small businesses with a necessary lifeline to weather the ongoing economic fallout from the COVID-19 pandemic.
From the $25 billion designated for rental assistance, $800 million is reserved for tribal communities and $400 million is reserved for U.S. territories, with the remaining funds to be distributed to state and local governments (grantees) within 30 days of enactment. Under the ERA, fund allocations will be based on a state’s population, with all states, and the District of Columbia, receiving at least $200 million. Local jurisdictions with populations of 200,000 or more may also apply directly to the Treasury for assistance, which would be reduced from the amount granted to the state in which the jurisdiction is located.
Reprinted courtesy of
Marissa Levy, White and Williams LLP,
Rachel A. Schneidman, White and Williams LLP and
Nancy Sabol Frantz, White and Williams LLP
Ms. Levy may be contacted at levymp@whiteandwilliams.com
Ms. Schneidman may be contacted at schneidmanr@whiteandwilliams.com
Ms. Frantz may be contacted at frantzn@whiteandwilliams.com
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Trump Signs $2-Trillion Stimulus Bill for COVID-19 Emergency
April 06, 2020 —
Tom Ichniowski - Engineering News-RecordPresident Donald Trump has signed the massive measure approved by Congress aimed at helping laid-off workers, financially strapped companies and a stressed health care system as a result of the coronavirus outbreak.
Final congressional action came on March 27, when the House passed the bill by voice vote. President Trump signed it a short time later.
Tom Ichniowski, Engineering News-Record
Mr. Ichniowski may be contacted at ichniowskit@enr.com
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2011 West Coast Casualty Construction Defect Seminar – Recap
June 01, 2011 —
CDJ STAFF |
Event exhibitors and sponsors contribute to an informative and engaging environment |
This year’s meeting was the best yet for the industry-leading construction defect and claims event.
This year’s seminar concluded on May 13, 2011 with the Construction Defect Community Charitable Foundation Golf Tournament, held at Strawberry Farms Golf Course.
The Disneyland Hotel in Anaheim, California was the place where more than 1,500 attendees convened for two days of professional development activities and seminars that included CLE workshops and panel discussions of special interest to legal and insurance professionals concerned with construction defect and claims litigation. Key events included “Challenges for Experts in Construction Defect Claims and Litigation,” “Keeping Up with Construction Defect Coverage,” and “Tips for Avoiding the ‘Perfect Storm’ in Handling of Wrap Claims.”
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Supporting the golf tournament at the 15th hole |
This year’s Ollie award was given to George D. Calkins II, Esq. The West Coast Casualty Jerrold S. Oliver Award of Excellence was named in honor of the late Judge Jerrold S. Oliver, and recognizes an individual who is outstanding or has contributed to the betterment of the construction community.
In addition to being the most comprehensive professional development seminar in the area of construction defects, this year’s seminar was equally valuable as a networking opportunity for members of the industry. People participated in professional development events during the day and then continued networking in the evening at numerous social events. The Lawn Party as well as the legendary Wood, Smith, Henning & Berman events were very well attended. Additional valuable networking events were hosted by a number of industry professionals at the House of Blues, and Tortilla Joe’s.
As of this writing the 2011, West Coast Casualty's Construction Defect Seminar has applied for or has already received the following continuing education accreditation in the following areas;
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For more information about next year’s event, visit West Coast Casualty.
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Lis Pendens – Recordation and Dissolution
July 28, 2016 —
David Adelstein – Florida Construction Legal UpdatesWhen you file a construction lien foreclosure lawsuit, you must also record a lis pendens in the official (public) records against the property. This lis pendens serves as written notice that there is a lawsuit concerning the real property, and more specifically, title relating to that real property. If the property is then sold or rented, the buyer or tenant will ultimately be bound by a final determination relating to the lawsuit concerning title to the property. This is the value in recording a lis pendens and why it is a MUST in any foreclosure lawsuit. (This is the same value in any mortgage foreclosure lawsuit and why lis pendens are recorded in these lawsuits too.) A lis pendens will show up in a title report. In most instances, title companies will not issue a title policy if there is a lis pendens or may require a certain amount of money escrowed as a result of the lis pendens and pending action in order to issue a title policy. Also, a buyer, in particular, and a tenant are not going to want to invest in property where the title to that property is at-issue in a lawsuit. Hence, the lis pendens impacts the sale and potential re-financing of the property.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
South Dakota Supreme Court Holds That Faulty Workmanship Constitutes an “Occurrence”
September 14, 2017 —
Samantha Martino - Saxe Doernberger & Vita, P.C.The South Dakota Supreme Court recently determined that damage resulting from a subcontractor’s failure to test soil compaction before constructing a home constituted an “accident” and was therefore an “occurrence” under a commercial general liability (CGL) policy.
In Owners Ins. Co. v. Tibke Construction, Inc., the homeowners hired Tibke Construction, Inc. to build a new house, and Tibke Construction hired subcontractor Jerry’s Excavating to perform excavation work. The homeowners contended that Jerry’s Excavating failed to do soil compaction testing before commencing construction, which resulted in the home being built on highly expansive soils, leading to damage including excessive settlement, cracking and structural unsoundness.
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Samantha Martino, Saxe Doernberger & Vita, P.C.Ms. Martino may be contacted at
smm@sdvlaw.com