Construction Litigation Roundup: “Indeed, You Just Design ‘Em”
April 29, 2024 —
Daniel Lund III - LexologySeeking to be extracted from personal injury litigation initiated by a laborer on a project in New Orleans, an architect sued for negligence filed a motion for summary judgment.
The plaintiff had “testified in his deposition that after demolishing most of one of the side walls of the vault and a smaller section of the front wall, he was instructed to stand on top of the vault's concrete ceiling in order to demolish it with a hydraulic jackhammer.” One court noted that: “Shortly after beginning that task, the entire vault structure collapsed.” Claims against the architect included assertions of “failure to monitor and supervise the execution of the plans to ensure safety at the jobsite.”
The architect urged in support of its MSJ that it did not owe a duty to oversee, supervise, or maintain the construction site, or have any responsibility for the plaintiff’s safety. Summary judgment was granted to the architect by the trial court, and an appeal ensued, whereupon the appellate court reversed. That intermediate court found that potential intervening knowledge of the architect of a potentially unsafe demolition practice created an issue of material fact.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Appeals Court Reverses Summary Judgment over Defective Archway Construction
February 10, 2012 —
CDJ STAFFA judge has ruled that a plaintiff can go forward with her suit that she was injured by a defective archway during a birthday party. A three-judge panel of the California Court of Appeals issued this ruling on January 23, 2012, in the case of Trujillo v. Cosio.
Ms. Trujillo attended a birthday party at the home of Maria Cosio and Joel Verduzco. A piñata was hung between a tree and a brick archway. Ms. Trujillo went to get candy that had fallen from the piñata, during which the archway fell on her hand. Subsequent examination of the archway showed that it had not been “properly anchored to the supporting pillars to protect the arch from falling.”
Ms. Cosio and Mr. Verduzco argued that they could not have been aware of the defective nature of the archway’s construction, as it had been built at the request of the prior property owner. The structure was constructed without building permits. Mark Burns, a civil engineer testifying for the plaintiff, said that “a reasonable property owner would have thoroughly tested the archway to ensure it was capable of withstanding such horizontal forces before allowing children to enter into the area.” Mr. Burns noted that twenty rope pulls would have been sufficient to demonstrate the structure’s instability.
The trial court rejected Mr. Burn’s statements, finding that the respondents did not have any knowledge of the defect and that a visual inspection should have sufficed. The court noted that this a triable issue, whether visual inspection suffices, or whether the property owners should have done as Mr. Burns suggested and yank a rope twenty times. The court noted that “although a jury may ultimately disagree with Burn’s opinion, it was supported by sufficient foundation and was not speculative.”
The opinion was written by Judge Flier, with Judges Rubin and Grimes concurring.
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Alabama Appeals Court Rules Unexpected and Unintended Property Damage is an Occurrence
June 17, 2015 —
Beverley BevenFlorez-CDJ STAFFIn Pennsylvania National Mutual Casualty Insurance Company v St. Catherine of Siena Parish, a U.S. appeals court affirmed "that unexpected and unintended property damage is an ‘occurrence,’” reported Construction Equipment Guide. The underlying case involved roof leaks after the replacement of two Parish roofs, which ultimately led to a trial where Parish was awarded $350,000 in compensatory damages for breach of contract. However, Penn National disputed any obligation to pay, stating that “a breach of contract claim was not an ‘occurrence’ under the policy and even if such claims were an occurrence, the contractual liability and/or ‘your work’ exclusions would bar recovery.”
However, the U.S. District Court for the Southern District of Alabama ruled “that there was coverage for the property damage caused by the leaks because an ‘accident’ meant an unintended and unforeseen injury and the allegedly faulty workmanship led to damage to other areas of the structure and thus damage beyond simply the cost to replace the defective roof.”
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Los Angeles Wildfires Will Cause Significant Insured Losses, Ranking Amongst the Most Destructive in California's History
January 14, 2025 —
Morningstar DBRSWildfires currently burning in the Pacific Palisades, Eaton, Hurst and other Los Angeles neighborhoods will cause significant losses for the insurance industry, in
Morningstar DBRS’ view. The fires have already burned more than 1,100 homes and threaten more than 28,000 additional structures, according to local fire officials. Preliminary estimates point to total insured losses in excess of $8 billion depending on the final number of properties being affected by the wildfires. By way of comparison, the 2018 Woolsey Fire, which destroyed 1,643 structures just north of Los Angeles, caused more than $6 billion in property damages at that time. Morningstar DBRS expects the ongoing wildfires to have a negative but manageable impact on major property insurers active in the Californian market, with the impact somewhat mitigated by their use of reinsurance and their high degree of diversification. Similarly, losses should be manageable for the global reinsurance industry and not affect their credit profiles.
While leading U.S. property insurers are in good financial condition, the California property insurance market has been challenging because of high wildfire and other natural catastrophe risks combined with regulatory restrictions on coverage and pricing, leading many insurers to re-think their product offering, including an outright exit from the market. For example, market leaders such as State Farm and Allstate started reducing their exposure to the California market beginning 2022-2023. It is therefore possible that a larger than usual portion of the losses caused by the wildfires will be uninsured or may be covered under the California FAIR Plan, which is designed to provide fire coverage up to $3 million per home and spread the risk across the industry when it is not available from traditional carriers.
This event reinforces the need for adequate rate increases on home insurance in California, based on forward-looking pricing and catastrophe modelling, as well as for additional fire prevention and mitigation initiatives. However, property insurance affordability is likely to remain a challenge in the state going forward, with many property owners opting to remain uninsured or under-insured because of the high costs.
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Definitions Matter in Illinois: Tenant Held Liable Only for Damage to Apartment Unit
September 09, 2024 —
Gus Sara - The Subrogation StrategistIn Phila. Indem. Ins. Co. v. Gonzalez, No. 1-23-0833, 2024 Ill. App. Unpub. LEXIS 1372, the Appellate Court of Illinois considered whether the terms of a lease agreement limited a tenant’s liability for fire damages, a fire caused by her negligence, to her apartment unit only. The plaintiff insured the subject apartment building, which incurred damage to several units as result of a fire in the tenant’s unit. The lease defined “Premises” as the specific apartment unit occupied by the tenant and held the tenant responsible for damage caused to the Premises. While the court found that the lease permitted the plaintiff to subrogate against the tenant, it held that the lease terms limited the damages to the tenant’s apartment unit only.
In Gonzalez, the plaintiff’s insured owned a multi-unit apartment building in Chicago. In September 2019, the building owner entered into a lease agreement with the defendant for apartment Unit 601. The lease stated that Unit 601 was the “Leased Address (Premises).” Another provision stated that building owner “hereby leases to Tenant(s) and Tenant(s) hereby leases from Landlord(s) for use as a private dwelling only, the Premises, together with the fixtures and appliances (if any) in the premises…” The lease also stated that “Tenant shall be liable for any damage done to the premises as a result of Tenant’s or Tenant’s invitees, guests or others authorized to reside in the Premises [sic] direct action, negligence, or failure to inform Landlord of repairs necessary to prevent damage to the Premises.”
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
Digital Twins for a Safer Built Environment
November 24, 2019 —
Cristina Savian - AEC BusinessAs a native of Turin Italy, I was horrified at the Ponte Morandi bridge collapse last year. As a child and as an adult I have travelled over that bridge more times than I can imagine and have often pondered the what-if scenarios. What if it had happened when I or my loved ones were travelling on that bridge? As a chartered construction professional, I ask myself, what could have been done, what should have been done and what can we do to prevent this from happening in the future?
Having access to a digital twin with an integrated understanding of the way the bridge was designed, built and performed over the last 50 years and being able to run “what if” scenarios would have allowed us to have a much greater understanding of the structure and its limitations in its context. This is where I believe a digital twin of any built asset is a step in the right direction.
The digital twin has been proclaimed by many as a milestone innovation in the construction industry, with huge benefits to constructors and owners of assets through efficiencies in manufacturing and operation but also to attracting users of the spaces they replicate. However, digital replicas can take a broad range of forms depending on its purpose, use and application sparking debates among professionals on what they actually are and what represents a ‘true’ twin.
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Cristina Savian, AEC Business
New Jersey Condominium Owners Sue FEMA
June 11, 2014 —
Beverley BevenFlorez-CDJ STAFFOwners of a 230-unit New Jersey Condominium filed suit “against the Federal Emergency Management Agency and insurers and developers, seeking coverage and alleging the building was constructed with defects that led to severe flood damage during Hurricane Sandy.” According to Law 360, “[t]he complaint from 700 Grove Condominium Association Inc. alleges that common elements of the building were damaged and will continue to be damaged from floods because of defects caused by its contractors and architects.”
The owners, according to the complaint, alleged that they “made a timely claim to its insurers, but [the insurers] denied coverage.”
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Newmeyer & Dillion Attorney Casey Quinn Selected to the 2017 Mountain States Super Lawyers Rising Stars List
June 15, 2017 —
Newmeyer & Dillion LLPLAS VEGAS, Nev. – JUNE 14, 2017 – Prominent business and real estate law firm Newmeyer & Dillion LLP is pleased to announce that litigation attorney
Casey Quinn has been selected to the 2017 Mountain States Super Lawyers Rising Stars list. Each year, no more than 2.5 percent of lawyers are selected to receive this honor. Quinn will be recognized in the July 2017 issue of
Mountain States Super Lawyers Magazine.
Quinn, an associate in the Las Vegas office of Newmeyer & Dillion, focuses his practice in complex commercial and construction litigation. He represents a variety of business entities in commercial disputes, including contract claims, business torts, privacy lawsuits, defamation, and fraud. Quinn is the immediate-past chair of the Construction Law section of the State Bar of Nevada and has successfully argued before the Supreme Court of Nevada, as well as settled disputes through various forms of conflict resolution including mediation and arbitration.
Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high-degree of peer recognition and professional achievement. The patented selection process includes independent research, peer nominations and peer evaluations.
About Newmeyer & Dillion
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit http://www.newmeyeranddillion.com/.
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