Arctic Roads and Runways Face the Prospect of Rapid Decline
July 19, 2021 —
Tony Frangie Mawad - BloombergMelting permafrost across Arctic regions has already caused highways to buckle and homes to sink. A new study conducted in the north of Alaska helps explain why rising temperatures are hitting roads, airports and other infrastructure particularly hard.
Researchers who monitored temperatures and melting near Prudhoe Bay on Alaska’s North Slope documented how the thawing of frozen ground beneath a highway tended to spread laterally to the side of the road, with the melting process accelerated by snow accumulations and puddling. Those interactions led to more rapid thawing than in areas of undisturbed permafrost.
Researchers also found that melting in their test area, alongside a highway that runs atop permafrost, followed a two-phase process — a gradual initial thaw, followed by an accelerated process once warming exceeded a critical point.
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Tony Frangie Mawad, Bloomberg
CGL Policy Covering Attorney’s Fees in Property Damage Claims
December 11, 2018 —
David Adelstein - Florida Construction Legal UpdatesDoes a CGL policy cover attorney’s fees and costs in property damages claims, to the extent there is a contractual or statutory basis to recover attorney’s fees? Naturally, you need to review the policies and this is not a clear-cut issue, but there is law to argue under.
A case I have argued in support of CGL policies providing for coverage for attorney’s fees as a component of property damage claims when there is a contractual or statutory basis is Assurance Co. of America v. Lucas Waterproofing Co., Inc., 581 F.Supp.2d 1201 (S.D.Fla. 2008). In this case, the following applied:
- The policy provided coverage for “those sums that the insured becomes legally obligated to pay as damages of… ‘property damage’….
- Property damage was defined as “physical injury to tangible property, including all resulting loss of use of that property.”
- The term damage, in of itself, was not defined in the policy.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Unwrapped Pipes Lead to Flooding and Construction Defect Lawsuit
July 31, 2013 —
CDJ STAFFHomeowners in New Jersey have filed a lawsuit over unwrapped pipes in exterior walls. During the cold winter weather, the pipes froze, leading one homeowner to experience a “massive leak.” A plumber was able to end the flooding by shutting off water to the house. He then told the homeowner, Robert Long, that he had been doing the same at other homes in the community.
The Longs are now party to a class-action lawsuit which seeks that the homebuilder, Ryan Homes, tell those who have purchased homes about the defect. Further, the suit seeks compensation for those whose home have been damaged, and repairs to assure that additional homes do not have their pipes burst.
Stephen P. DeNittis, who is representing the Longs, said that “the code violation alleged in this case is particularly troublesome because it involves unprotected pipes hidden inside an exterior wall.”
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Fifth Circuit Reverses Summary Judgment Award to Insurer on Hurricane Damage Claim
December 18, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe Fifth Circuit reversed the district court's grant of summary judgment to the insurer on a property damage claim arising from Hurricane Harvey. Advanced Indicator and Manufacturing, Inc. v. Acadia Ins. Co., 50 F.4th 469 (2022).
After Hurricane Harvey struck southern Texas in 2017, Advanced submitted a claim to Acadia for damage to its building that it claimed was caused by the hurricane's winds. Acadia sent an adjuster, Nick Warren, as well as an engineer, Jason Watson. Watson determined that pre-existing conditions - including ongoing leaks from deterioration and poor workmanship - caused the damage, rather than winds from Hurricane Harvey. Warren adopted these conclusions in his recommendations to Acadia. Acadia denied Advanced's claim based on these reports.
Advanced sued Acadia, alleging breach of contract and bad faith. Advanced filed a motion to remand to state court which was denied. Acadia moved for summary judgment arguing that it did not breach the policy and that Advanced could not segregate any damages caused by hurricane from pre-existing damage. The district court granted Acadia's motion, finding that Acadia's denial of Advanced's claim was based on "extensive consideration of the evidence." Further, Advanced failed to carry its burden of showing that covered and non-covered damages could be segregated as required by Texas's concurrent causation doctrine. Finally, the bad faith claim was dismissed because there was no breach of contract.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Landmark Contractor Licensing Case Limits Disgorgement Remedy in California
November 09, 2020 —
Candace Matson - Construction & Infrastructure Law BlogContractors performing work in California are required to be licensed by the California State License Board (“CSLB”). Cal. Bus. & Prof. Code §7065. Except for sole proprietors, contractors are typically licensed through “qualifiers,” i.e., officers or employees who take a licensing exam and meet other requirements to become licensed on behalf of the contractor’s company. Contractors who perform work in California without being properly licensed are subject to a world of hurt, including civil and criminal penalties (see, e.g., Cal. Bus. & Prof. Code §§ 7028, 7028.6, 7028.7, 7117, and Cal. Labor Code §§ 1020-1022), and the inability to maintain a lawsuit to recover compensation for their work. Cal. Bus & Prof. Code § 7031(a); Hydra Tech Systems Ltd. v. Oasis Water Park, 52 Cal.3rd 988 (1991).
But arguably the worst ramification of not being property licensed is that established in Business & Professions Code Section 7031(b), which provides that any person who uses the services of an unlicensed contractor may bring an action for the return of all compensation paid for the performance of the work, commonly known as “disgorgement.” This remedy is particularly harsh (often described as “draconian”) because it makes no allowance for the fact that an unlicensed contractor will likely have already paid out the bulk of its compensation to its subcontractors, suppliers and vendors, but nevertheless can be ordered to disgorge all compensation.
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Candace Matson, Sheppard MullinMs. Matson may be contacted at
cmatson@sheppardmullin.com
Schools Remain Top Priority in Carolinas as Cleanup From Storms Continues
November 06, 2018 —
Joanna Masterson - Construction ExecutiveA month after Hurricane Florence dumped more than 30 inches of rain on the Carolinas, Hurricane Michael delivered additional flash flooding, power outages and wind damage.
While the construction-related impact of Hurricane Michael is still being assessed (stay tuned for more on that front in the coming weeks), Moody’s Analytics estimates total property damage from Florence at $17 billion to $22 billion, factoring in losses from homes, roads, crops, livestock, coal ash ponds and more.
While it’s difficult to pinpoint which counties were hit the hardest, the majority of the damage was in the eastern coastal areas of North Carolina. According to Rob Beale, a vice president in W.M. Jordan’s Wilmington, North Carolina, office, Carteret and Onslow counties took the brunt of the storm, while Columbus and Brunswick counties experienced the biggest flooding impact.
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Joanna Masterson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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New Jersey Appellate Court Reinstates Asbestos Action
March 05, 2015 —
Beverley BevenFlorez-CDJ STAFFAccording to the New Jersey Law Journal, an asbestos case involving “a long-time ship worker who died of mesothelioma was reinstated by a New Jersey appellate court on March 3.” A lower court judge had “dismissed the claims against them based on his view that the evidence presented by the plaintiff was insufficient to show that the ships on which he worked contained asbestos and that he was exposed to it.” However, the appeals judges disagreed.
“Although the summary judgment motion was decided on a very narrow ground, we conclude that the record as a whole establishes a triable issue as to whether plaintiff was exposed to asbestos or asbestos-containing products on defendant’s dredges,” judges Susan Maven and Henry Carroll stated, according to the New Jersey Law Journal.
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Insurer's Motion to Dismiss Complaint for Failure to Cover Collapse Fails
April 13, 2017 —
Tred R. Eyerly – Insurance Law HawaiiThe insurer was unsuccessful in moving to dismiss the property owner's complaint that was filed after coverage for collapse of basement walls was denied. Cyr v. CCAA Fire & Cas. Ins. Co., 2017 U.S. Dist. LEXIS 39387 (D. Conn. March 20, 2017).
The Cyrs began observing cracking patterns in the basement wall of their home. A structural engineer inspected the wall and determined that the cracks were due to a chemical reaction in the concrete that would ultimately render the walls unstable. The Cyrs made a claim with CCAA under their homeowner's policy. The insureds contended that the progressive deterioration of the concrete in the basement walls was a collapse under the policy.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com