CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

More on Duty to Defend a Subcontractor

March 29, 2021 — Christopher G. Hill - Construction Law Musings
While we don’t often discuss insurance coverage issues here at Construction Law Musings, occasionally a case comes up that makes the grade for a post. One such case was Erie Insurance Exchange v. Salvi, where the question of an “occurrence” that warranted coverage and defense under an insurance policy was at issue. That case discussed this key question in a residential construction context based upon poor workmanship. A recent case out of the Western District of Virginia federal court analyzed this coverage issue in the commercial context. In Nautilus Ins. Co. v. Strongwell Corp., the Court considered a challenge by the insurance company, Nautilus, to its duty to defend based on both the definition of “occurrence” and the definition of “property damage.” Nautilus filed a declaratory judgment action seeking a declaration that it need not either defend or indemnify because the extrinsic evidence (as distinguished from the “eight corners” of the policy) precluded coverage for the types of claims made by an owner and by extension a general contractor in a separate lawsuit. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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D.C. Decision Finding No “Direct Physical Loss” for COVID-19 Closures Is Not Without Severe Limitations

August 24, 2020 — Michael S. Levine & Michael L. Huggins - Hunton Andrews Kurth
On August 6, 2020, in Rose’s 1 LLC, et al. v. Erie Insurance Exchange, Civ. Case No. 2020 CA 002424 B, a District of Columbia trial court found in favor of an insurer on cross motions for summary judgment on the issue of whether COVID-19 closure orders constitute a “direct physical loss” under a commercial property policy. At its core, the decision ignores key arguments raised in the summary judgment briefing and is narrowly premised on certain dictionary definitions of the terms, “direct,” “physical,” and “loss.” Relying almost entirely on those definitions – each supplied by the insureds in their opening brief – the court set the stage for its ultimate conclusion by finding “direct” to mean “without intervening persons, conditions, or agencies; immediate”; and “physical” to mean “of or pertaining to matter ….” The court then apparently accepted the policy’s circular definition of “loss” as meaning “direct and accidental loss of or damage to covered property.” Importantly, however, despite recognizing the fundamental rule of insurance policy construction that the court “must interpret the contract ‘as a whole, giving reasonable, lawful, and effective meaning to all its terms, and ascertaining the meaning in light of all the circumstances surrounding the parties at the time the contract was made,’” the court apparently ignored the insureds’ argument that the term “property damage” is specifically defined in the policy to include “loss of use” without any specific reference to physical or tangible damage. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Michael L. Huggins, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Huggins may be contacted at mhuggins@HuntonAK.com Read the court decision
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Construction Law Alert: Appellate Court Lets Broad General Release Stand in SB 800 Case

February 26, 2015 — Steven M. Cvitanovic and Colin T. Murphy – Haight Brown & Bonesteel LLP
Under California's SB 800 "Right to Repair Act," a builder may obtain a "reasonable release" to resolve a construction defect claim in exchange for a cash payment. So, what's a "reasonable release" under SB 800? This question was answered by the Second Appellate District in the case of Belasco v. Wells (filed 2/17/2015, No. B254525). Plaintiff David Belasco ("Plaintiff") purchased a newly constructed residence in 2004 from the builder defendant Gary Loren Wells ("Wells"). In 2006, Plaintiff filed a complaint against Wells with the Contractors' State License Board (the "Board") regarding certain alleged construction defects. The parties settled the 2006 action through written agreement that required Wells to pay Plaintiff $25,000 in consideration for Plaintiff executing a release and a Civil Code §1524 waiver of all known or unknown claims. In 2012, Plaintiff filed a subsequent action against Wells and Wells’ surety, American Contractors Indemnity Company ("American Contractors") (collectively "Defendants"), alleging a defect in the roof that was discovered by Plaintiff in 2011. Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and Colin T. Murphy, Haight Brown & Bonesteel LLP Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com Mr. Murphy may be contacted at cmurphy@hbblaw.com Read the court decision
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Evacuations in Santa Barbara County as more Mudslides are Predicted

March 14, 2018 — Dave Suggs – CDJ Staff
Alene Tchekmedyian’s LA times article “Storm triggers evacuations in Santa Barbara County: 'Don't be fooled into thinking that this can’t happen again',” warns of the deadly potential of mudslides following the devastation that occurred in January that caused 21 fatalities and damaged homes in Montecito. Debris flow could be triggered by rainfall rates predicted to exceed half and inch per hour. In some areas as much as seven-tenths of an inch of rain per hour are possible because of a chance of thunderstorms. Mandatory evacuations began Monday to protect residents from the fast-moving storm that is predicted to be worse than January’s. Santa Barbara county officials asked that people help spread the word of the evacuation to everyone in their community. They also created an interactive map to help residents determine their risk level. Matilija Canyon and North Fork in Ventura County are under voluntary evacuation orders. Areas at the highest risk include Thomas, Sherpa, and Whittier burn areas. Residents can find shelter at the Goleta Valley Community Center at 5679 Hollister Avenue. Read the court decision
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A New Lawsuit Might Change the Real Estate Industry Forever

December 23, 2023 — Tracy Alloway, Joe Weisenthal, and Aashna Shah - Bloomberg
Last month, a Missouri jury found that real estate brokers colluded to artificially inflate and fix their own commissions, and as a result, ordered the National Association of Realtors to pay $1.8 billion in damages. While the ruling will be appealed, with highly uncertain damages and remedies, the case is shining a light on how participants in the real estate industry get paid, and raising the question of whether homebuyers are paying too much to their brokers. So how do brokers get paid? What are their incentives? And why haven't fees for brokers gone down, even as online platforms that compete with them have proliferated. On this episode of the podcast, we speak with Andra Ghent, a finance professor at the University of Utah and a specialist in real estate who explains how the structure works currently, and how the lawsuit could ultimately change the entire business model of buying and selling homes. This transcript has been lightly edited for clarity. Reprinted courtesy of Tracy Alloway, Bloomberg, Joe Weisenthal, Bloomberg and Aashna Shah, Bloomberg Read the court decision
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Chapman Glucksman Press Release

October 17, 2022 — Chapman Glucksman
Chapman Glucksman Dean & Roeb, a Los Angeles based law firm, has unveiled a dynamic new brand. The firm will now be known as “Chapman Glucksman.” The name change reflects the forward thinking and creative approach that the firm brings to its client service. “Chapman Glucksman has always been a firm of innovative thinkers with a keen focus on obtaining very favorable results for our clients. Our new brand captures the firm’s energy and focus,” said Craig Roeb, a shareholder who has spent his entire legal career with the firm. “We are excited about the growth of Chapman Glucksman, with the recent addition of new shareholder, Greg Sabo, partners, Chelsea Zwart and David Weinberger, as well as six new associate attorneys. The continued growth of Chapman Glucksman is a reflection of our strong client loyalty and growth,” said Randall Dean, shareholder and head of the Professional Liability Practice Group. Founded in 1985, Chapman Glucksman is a multi-faceted law firm with offices in Los Angeles, Orange County, Bay Area and Palm Springs. Our AV rated firm has diverse practice groups consisting of highly skilled, experienced, insightful, responsive, pragmatic and creative lawyers who vigorously advocate our client’s interests, and secure result-oriented, favorable and creative solutions to complex issues. Our achievements derive directly from our commitment to providing our clients with an unparalleled level of attention, exceptional work product and a strong work ethic with outstanding results achieved. Read the court decision
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Reprinted courtesy of Chapman Glucksman

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Corrective Action Protest Grounds for GSA Schedule Federal Construction Contractors

September 09, 2024 — Marissa L. Downs - The Dispute Resolver
A contract awarded, protested, terminated, appealed, then reinstated. It’s no secret that federal construction procurements are plagued with uncertainty. From delays, constructive suspensions, compromised supply chains, the litigation-laden critical path method, and the mandate for all construction materials used in federally funded projects for infrastructure to be produced in the United States under the Build America, Buy America Act (BABAA) (to name just a few traditional and emerging favorites), just one of these issues could fill the rest of anyone’s month with substantive research. To add one more, which is entirely unique to bid protests, federal contractors–including construction contractors–listed in a General Service Administration (GSA) Schedule may have new grounds to have a contract award reinstated that was terminated by a federal agency pending a GAO decision. GAO Protest An initial GAO protest filed by Deloitte & Touche LLP (Deloitte) argued that the National Geo-Spatial Intelligence Agency (Agency) wrongfully made an award to Kearney & Company, P.C. (Kearney) when the Agency: (1) improperly evaluated quotes; and (2) failed to conduct a proper best-value tradeoff analysis. At issue was a competed task order with Kearney under a GSA FSS multiple-award contract. Before the GAO issued an opinion, however, it held an unrecorded predictive-outcome conference with Deloitte and Kearney where the only mutual consensus was the likely ineligibility of all offerors for the relevant award. The Agency subsequently elected to take corrective action, terminating Kearney’s contract award for convenience, amending the solicitation to avoid issues (including undisputed issues) addressed in the GAO protest. After the Agency adopted their corrective action, the GAO protest was dismissed as academic and moot. Read the court decision
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Reprinted courtesy of Marissa L. Downs, Laurie & Brennan, LLP
Ms. Downs may be contacted at mdowns@lauriebrennan.com

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Eleventh Circuit Holds that EPA Superfund Remedial Actions are Usually Entitled to the FTCA “Discretionary Function” Exemption

February 18, 2019 — Anthony B. Cavender - Gravel2Gavel
An unusual Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA, known also as Superfund) remedial action has resulted in a broad ruling that Environmental Protection Agency (EPA) remedial actions and their implementation by EPA contractors may be entitled to broad protection from liability insofar as the Federal Tort Claims Act (FTCA) is involved. The case is Gadsden Industrial Park LLC v. United States of America, CMC Inc., and Harsco Corporation, an unpublished opinion released by the court on November 30, 2018. After the Gulf States Steel Corporation, the owner and operator of a former steel manufacturing facility located in Gadsden, AL, declared bankruptcy, in 2002, Gadsden Industrial Park LLC (Gadsden) purchased 434 acres of the 761 acre site, as well as assets located in what is described as the “Excluded Real Property”—recyclable materials generated in the steel making process known as “kish” and “slag,” and a track of a railroad line located in this area. However, in the 2007 or 2008, the Eleventh Circuit observes, EPA began a CERCLA remedial cleanup action on the Excluded Real Property and barred Gadsden from entering the Excluded Real Property to make use of its new assets. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

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