Replacement of Gym Floor Due to Sloppy Paint Job is Not Resulting Loss
January 02, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe court granted the insurer's motion for summary judgment finding damage to the gym floor due to a poor paint job was not a resulting loss. Bob Robinson Commercial Flooring, Inc. v. RLI Ins,. Co., 2023 U.S. Dist. LEXIS 196105 (D. Ark. Nov. 1, 2023).
Bob Robinson Commercial Flooring (BRCF) submitted a bid to the general contractor, Nabholz Construction Corporation, to install a vinyl athletic floor and striping at a middle school. The job also included the painting of a "Wildcat" logo the main gym floor. Therefore, BRCF's job was to install floors with proper painting and striping. Robert Liles and Robert Lines Parking Lot Services was the subcontractor hired to do the painting and striping. BRCF did not supervise or inspect Liles' work while it was ongoing.
Nabholz informed BRCF that there were problems with the floor painting, including crooked lines, incorrect markings, misplacement of the three point lines for the basketball surface, drips, smudges, etc. The gym floor was eventually rejected due to the nature of the vinyl flooring, once primer and paint were applied, the paint could not be removed and repainted. BRCF had to hire a new subcontractor to remove the flooring, install new flooring and then paint new lines. The cost for removal and replacement was $134,188.95.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Carillion Fallout Affects Major Hospital Project in Liverpool
October 30, 2018 —
Peter Reina - Engineering News-RecordManagers of a 90%-complete, 646-bed hospital in Liverpool will take charge of the project after unravelling a public-private partnership with the contractor Carillion Plc, which collapsed ignominiously in January (ENR 1/22 p. 12). Following cancellation of the contractor’s other large U.K. hospital P3, near Birmingham, project lenders face large losses.
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Peter Reina, ENRMr. Reina may be contacted at
reina@btinternet.com
Homebuilding Continues to Recover in San Antonio Area
December 04, 2013 —
CDJ STAFFThere was a slowing in the third quarter, but home builders expect that 2013 will see more than 9,000 home starts in the San Antonio area. And even though the third quarter was slow, it was still about 3% above the same quarter in 2012.
And the new homes are more expensive. Jack Inselmann, a senior vice president at MetroStudy noted that “in 2011, 40 percent of housing activity was under $175,000. And here we are two years later and 31 percent is under $175,000.” He worries that people looking for homes will go to the resale market, instead of buying a new home.
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Insureds Survive Summary Judgment on Coverage for Hurricane Loss
June 19, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe magistrate judge recommended that the insurer's motion for summary judgment be denied, finding a material issue of fact regard the cause of loss after Hurricanes Laura and Delta. Armstrong v. Amguard Ins Co., 2023 U.S. Dist. LEXIS 76869 (E.D. Texas, April 14, 2023).
The policy excluded damage caused by wear and tear, differential foundation movement, as-built deficiencies, manual damage, and pre-existing conditions. Texas applied the doctrine of concurrence causes, meaning if damages were due to both covered and non-covered causes of loss, the insureds had to segregate the damage caused by covered causes of loss from the damage caused by non-covered causes of loss. Coverage was denied and the insureds filed suit.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
California Trial Court Clarifies Application of SB800 Roofing Standards and Expert’s Opinions
February 18, 2020 —
Scott Calkins & Anthony Gaeta - Collinsworth, Specht, Calkins & Giampaoli; Mark Chapman - Bert L. Howe & Associates, Inc.Collinsworth, Specht, Calkins & Giampaoli partners Scott Calkins and Anthony Gaeta obtained a trial victory when the jury returned a 12-0 defense verdict against one plaintiff homeowner, and awarded the other homeowner less than $2,000, an amount well below the defendant’s pre-trial CCP 998 Offers to Compromise. One of the main issues in the case was the application of SB800 roofing standards. Plaintiffs’ roofing expert testified in deposition no water entered the structure or passed through a moisture barrier [Civ. Code §896(a)(4)], and no materials had fallen off the roof [§896(g)(11)]. In an attempt to circumvent the applicable performance standards, Plaintiffs argued Civ. Code §869(g)(3)(A), also known as the ‘useful life’ exception, applied because the various components of the roof (nailing pattern, tiles, vents, etc.) were installed in such a manner so as to reduce the useful life of the roof. Following pre-trial motions and objections made during Plaintiffs’ direct examination, the Court ruled Section 896(g)(3)(A) did not apply to a conventional roof, as it is not a “manufactured product” as defined in §896(g)(3)(C). Plaintiffs’ roofing claims were summarily dismissed and Plaintiffs’ expert was prevented from testifying.
In contrast, the defense expert, Mark Chapman, was allowed to testify regarding his expert opinions as to the appropriate SB800 standard relative to each alleged defect and whether the standards were violated. The SB800 performance standards were included on the jury verdict form, and the jury found Mr. Chapman’s testimony compelling, which was a substantial factor in awarding only minor damages to one Plaintiff.
For more information, contact
Scott Calkins (scalkins@cslawoffices.com),
Anthony Gaeta (ageta@cslawoffices.com) or
Mark Chapman (mchapman@berthowe.com).
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Another Municipality Takes Action to Address the Lack of Condominiums Being Built in its Jurisdiction
March 12, 2015 —
Heather M. Anderson – Higgins, Hopkins, McLain & Roswell, LLCWhether you are in the market to downsize or are looking to be a first time home buyer, you have likely noticed that your housing options in Colorado have become extremely limited over the course of the last several years. If you are a contractor and have worked on multi-family projects in the recent past, you know why the housing options are limited in the State of Colorado. In the past two years, there have been studies commissioned and articles published in local periodicals investigating the extreme slowdown seen in the construction of owner-occupied multi-family housing, namely condominiums and townhomes. Those of us involved in and with the construction industry are intimately familiar with the lengthy, complicated, and incredibly expensive construction defect litigation that has plagued multi-family construction in the State of Colorado and brought it to a virtual halt.
And now, local municipalities and elected officials are starting to take notice. Most recently, the City of Lone Tree passed Ordinance No. 15-01, to become effective on April 1, 2015. According to the City of Lone Tree, Ordinance No. 15-01 is “aimed at encouraging the development of owner-occupied, multi-family residential projects through the adoption of regulations designed to balance the risk and exposure to builders and developers of such projects, while still protecting homeowners from legitimate construction defect claims.”
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Heather M. Anderson, Higgins, Hopkins, McLain & Roswell, LLCMs. Anderson may be contacted at
Anderson@hhmrlaw.com
Uniwest Rides Again (or, Are Architects Subject to Va. Code Section 11-4.1?)
October 16, 2018 —
Christopher G. Hill - Construction Law MusingsIn 2010, the Virginia Supreme Court held in Uniwest Const., Inc. v. Amtech Elevator Servs., Inc., that Va. Code Sec. 11-4.1 renders completely void and unenforceable any indemnification provision in a construction contract between a contractor and subcontractor that seeks to indemnify the indemnified party from its own negligent acts. In short, the Virginia Supreme Court stated that such overly broad provisions violate Section 11-4.1.
A recent case out of the Eastern District of Virginia Federal District Court examined a provision in a contract between a designer/architect and a contractor or owner on a project. In Travelers Indem. Co. of Conn. v. Lessard Design Inc. the Court examined the application of Section 11-4.1 to the following provision of a design contract where Lessard, the indemnitor, agreed to:
[i]ndemnify, defend and hold the Owner, Owner’s Developer, and Owner’s and Owner’s Developer’s wholly owned affiliates and the agents, employees and officers of any of them harmless from and against any and all losses, liabilities, expenses, claims, fines and penalties, costs and expenses, including, but not limited to reasonable attorneys’ fees and court costs relating to the services performed by the Architect hereunder . . .
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
MTA Implements Revised Contractors Debarment Regulations
July 06, 2020 —
Steven M. Charney, Gregory H. Chertoff & Paul Monte - Peckar & Abramson, P.C.On June 3, 2020, the Metropolitan Transit Authority (“MTA”) published and implemented revised regulations pertaining to the debarment of contractors. The revised regulations address many of the deep concerns raised by the contracting community.
Under relevant administrative procedure, the MTA publication of the revised regulations starts a 45 day notice period before the regulations can be adopted as final.
The prior regulations essentially required that debarment occur upon a purely formulaic calculation establishing that a contractor: 1) was more than 10% late, or 2) had submitted invalid claims that exceeded the adjusted contract price by a measure of 10%.
The revised regulations represent improvements over the prior regulations.
Critically, the revised regulations address the primary concern raised by the contracting community, that being the mandate of purely formulaic debarment. Instead, the revised regulations establish a process that includes greater flexibility and discretion before debarment may ensue.
Reprinted courtesy of Peckar & Abramson, P.C. attorneys
Steven M. Charney,
Gregory H. Chertoff and
Paul Monte
Mr. Charney may be contacted at scharney@pecklaw.com
Mr. Chertoff may be contacted at gchertoff@pecklaw.com
Mr. Monte may be contacted at pmonte@pecklaw.com
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