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    Design Firm Settles over Construction Defect Claim

    Breaking News: Connecticut Supreme Court Decides Significant Coverage Issues in R.T. Vanderbilt

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    Fairfield, Connecticut

    Lien Waivers Should Be Fair — And Efficient

    February 18, 2015 —
    This week for our Guest Post Friday here at Construction Law Musings, we welcome back my good friend Scott Wolfe. Scott, a thought leader in the construction industry, combines his construction background, tech experience, entrepreneurial spirit, and legal education to bring a unique perspective to the industry’s construction payment problem. Scott is the founder of zlien, a venture-backed construction payment platform. A licensed attorney in six states, his writing has appeared in the New York Times, CFMA’s Building Profits, Supply House Times, Construction Executive, and tED Magazine. He has been a Keynote Speaker for the American Subcontractors Association annual conference, and spoken at CFMA events. Lien waivers are perhaps the most legally and practically complicated documents exchanged in the construction industry. Unfortunately, this results in huge corporate inefficiencies, and worse, provides an opportunity for some parties to exert undue leverage over others. Lien waivers — or lien releases, as they are commonly (but mistakenly) called — aren’t supposed to be complicated, though. They are designed to make the complex construction payment process easy and fair. This article will address why that is, how it works, and where things have gone awry. Read the court decision
    Read the full story...
    Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
    Mr. Hill may be contacted at chrisghill@constructionlawva.com

    No Subrogation, Contribution Rights for Carrier Defending Construction Defect Claim

    December 23, 2023 —
    The Court held that the insurer defending the additional insured general contractor had no right to equitable subrogation or equitable contribution from a separate carrier who also insured the general contractor as an additional insured. Old Republic Gen. Ins. Co. v. Amerisure Ins. Co., 2023 U.S. Dist. LEXIS 170293 (N.D. Ill. Sept. 25, 2023). Tanger Grand Rapids, LLC hired Rockford Construction Company to build the Tanger Outlet Center. Rockford subcontracted with Kamminga & Roodvoeis, Inc. (K&R) to work on the pavement for the outlet mall. Under the subcontract, K&R agreed to maintain primary commercial general liability insurance for itself, with Rockford as an additionial insured. K&R obtained a policy from Amerisure. For additional paving work, Rockford subcontracted with Michigan Paving & Materials, CP. The subcontract also required Michigan Paving to maintain primary coverage, with Rockford as an additional insured. Michigan Paving obtained a policy from Liberty Mutual. Read the court decision
    Read the full story...
    Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
    Mr. Eyerly may be contacted at te@hawaiilawyer.com

    Is Your Design Professional Construction Contract too Friendly? (Law Note)

    July 09, 2014 —
    My husband often travels the back roads between Chapel Hill and Fuquay Varina to visit friends. En route (a circuitous route that goes past Sharon Harris Nuclear Power Plant, among other places), he passes by the “Friendly Grocery.” [Sign] No *Loitering*Littering*Alcoholic Beverages on Premises*Bike*Skateboard* *10 minutes Parking Limit*Towing Enforced* I’m not sure which is the “friendly” part of that sign. In fact, the sign seems to be the antithesis of friendly. What does this have to do with your construction contracts? Sometimes, in an effort to please the client and/or secure the project, architects and engineers have the habit of being too friendly in their contract language. That is, you make promises or proposals that may promise too much of a good thing for the client. This can cause big problems. Bigger than being towed away from a rural grocery store in the middle of nowhere. You could be putting your insurance coverage at risk. Have you ever promised to use “best efforts” in your design or plans? Promised to design to a specific LEED standard? Guaranteed 100% satisfaction? You might be putting your errors & omission coverage at issue. By warrantying or guaranteeing something, you are assuming a level of liability well beyond the standard of care required by law. By law, you only need to conform to the standard of care, and your insurance will only provide coverage up to that standard of care. In other words, if you make guarantees or promise “best efforts,” you are contracting to something that will *not* be insured. If something goes wrong, you will be without the benefit of your professional liability coverage. Read the court decision
    Read the full story...
    Reprinted courtesy of Melissa Dewey Brumback, Construction Law in North Carolina
    Ms. Brumback may be contacted at mbrumback@rl-law.com

    Are Contracting Parties Treated the Same When it Comes to Notice Obligations?

    June 25, 2019 —
    Overview Experienced project delivery team members know too well the importance of timely and proper notice during a construction project. Ideally, contractual notice provisions, and any penalties for non-compliance, should apply equally to all of the contracting parties. For example, failure to comply with a notice provision concerning contract changes could bar a party from pursuing claims. And, untimely or improper notice can, likewise, prevent certain defenses to claims. Nowhere is notice more scrutinized than in the federal government contracting arena. Recently, the United States Court of Federal Claims issued two separate decisions involving the same construction project and the same parties and dealing with two specific aspects of notice in the federal government contracting process. The court’s decisions on the notice issues may, at first, appear to contradict each other or to favor one party over the other. A closer look at these two decisions reveals that notice requirements, in the context of federal government construction contracts, can come in multiple forms and notice is not a “one size fits all” proposition. Read the court decision
    Read the full story...
    Reprinted courtesy of G. Scott Walters, Smith Currie
    Mr. Walters may be contacted at gswalters@smithcurrie.com

    Limitation on Coverage for Payment of Damages Creates Ambiguity

    April 03, 2013 —
    Unable to discern the meaning of a provision stating that payment of damages would be made "through a trial but not any appeal", the court found an ambiguity.Parker v. Am. Family Ins. Co., 2013 U.S. Dist. LEXIS 9085 (D. Ore. Jan. 23, 2013). The homeowners sued the general contractor for defective construction of their home. In November 2008, the homeowners reached a settlement through mediation with the general contractor. The general contractor's claims under its policies with American Family and Mid-Continent were assigned to the homeowners. The homeowners then sued both insurers for breach of insurance contract and/or equitable contribution. American Family moved for summary judgment, claiming the homeowners did not prove their damages claim against the general contractor "through a trial but not any appeal." Read the court decision
    Read the full story...
    Reprinted courtesy of Tred Eyerly
    Tred Eyerly can be contacted at te@hawaiilawyer.com

    Happenings in and around the West Coast Casualty Seminar

    April 02, 2014 —
    For those who are attending the West Coast Casualty Construction Defect Seminar May 15th-16th, the Construction Defect Journal has compiled a list of concerts, sporting events, and museum exhibitions taking place in and around Anaheim that week. Whether you like to spend your personal time checking out a new band, or watching your favorite Angel slide into home, or perusing the local art museum, there is something to spark your interest. CONCERT VENUES THE HOUSE OF BLUES IN ANAHEIM Blessthefall with Silverstein, The Amity Affliction, SECRETS and Heartist Tuesday, May 13th, 2014 Doors Open at 6pm / Show Begins at 7pm For More Information and to Purchase Tickets... THE HOUSE OF BLUES IN ANAHEIM Stephen "Ragga" Marley Saturday, May 17th, 2014 Doors Open at 8pm / Show Begins at 9pm For More Information and to Purchase Tickets... THE GROVE OF ANAHEIM Lindsey Stirling plus special guest Dia Frampton Wednesday, May 14, 2014 Doors Open at 7pm / Show Begins at 8pm For More Information and to Purchase Tickets... THE GROVE OF ANAHEIM Primal Fear Thursday, May 15, 2014 Doors Open at 6:30pm / Show Begins at 7pm For More Information and to Purchase Tickets... THE GROVE OF ANAHEIM Jillian Michaels 'Maximize Your Life' Tour Friday, May 16, 2014 Doors Open at 6pm / Show begins at 8pm For More Information and to Purchase Tickets... SPORTING EVENTS ANGEL’S STADIUM - BASEBALL The Los Angeles Angels of Anaheim v. Tampa Bay Rays Thursday, May 15th at 7:05pm Friday, May 16th at 7:05pm Saturday, May 17th at 6:05pm Sunday, May 18th at 12:35pm For More Information and to Purchase Tickets... MUSEUM EXHIBITIONS MUZEO Transcending Trash: The Art of Upcycling Sat Apr 26 – Sun Aug 31, 2014 Museum Days/Hours: Tuesday – Sunday (Closed Mondays) / 10 am to 5 pm For More Information and to Purchase Tickets... BOWERS MUSEUM (Santa Ana) BEETHOVEN: THE LATE GREAT February 8, 2014 - May 18, 2014 Museum Days/Hours: Tuesday – Sunday (Closed Mondays) / 10 am to 4 pm For More Information and to Purchase Tickets... Read the court decision
    Read the full story...
    Reprinted courtesy of

    California Plant Would Convert Wood Waste Into Hydrogen Fuel

    January 10, 2022 —
    A climate-focused tech company announced plans to open a $100-million plant outside Bakersfield, Calif., to convert wood waste into hydrogen fuel to prevent the material from emitting greenhouse gases. There has been no construction contract award, to date. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
    Read the full story...
    Reprinted courtesy of

    Concurrent Causation Doctrine Applies Where Natural and Man-made Perils Combine to Create Loss

    January 19, 2017 —
    The Florida Supreme Court resolved a conflict between the District Courts in applying the Concurrent Causation Doctrine where there were multiple causes creating the loss. Sebo v. Am. Home Assur. Co., 2016 Fla. LEXIS 2596 (Fla. Dec. 1, 2016). After purchasing his home, John Sebo procured an "all risks" homeowners policy provided by American Home Assurance Company (AHAC). Shortly after Sebo purchased the property, water began to intrude the home during rainstorms. Major water leaks occurred. It became clear that the home suffered from major design and construction defects. In October 2005, Hurricane Wilma further damaged the home. AHAC denied coverage for most of the claimed losses. It provided $50,000 for mold. The residence could not be repaired and was eventually demolished. Read the court decision
    Read the full story...
    Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
    Mr. Eyerly may be contacted at te@hawaiilawyer.com