Cambridge Massachusetts Building Expert Directory

Statute of Limitations and Bad Faith Claims: Factors to Consider

May 16, 2022 — Anastasiya Collins - Saxe Doernberger & Vita
How much time do our clients have to bring a bad faith action against an insurer? Although we are not frequently asked this question, it is one that we constantly analyze before asserting a bad faith claim. To answer this question, we look to the statute of limitations, which is a law passed by a state legislative body that sets the maximum amount of time for a party to bring a claim based upon a particular cause of action. For policyholders, knowing which statute of limitations applies to their bad faith claim is critical because it indicates whether it is possible to initiate legal proceedings. In addition, it determines the amount in damages available in case of a successful resolution. Statute of Limitations in Breach of Contract vs. Tort Claims One key determinant of a statute of limitations for bad faith is whether the claim is brought as a tort or a breach of contract action. The consequence of framing bad faith as a tort is that a policyholder is not just limited to contract damages. The policyholder can also receive recourse for emotional distress, pain, suffering, punitive damages, attorney’s fees, and other damages that the court may consider appropriate. Unfortunately, however, not every jurisdiction allows plaintiffs to bring bad faith actions as tort claims. While, for example, courts in California, Colorado, and Connecticut allow bad faith claims sounding in tort, courts in jurisdictions such as Tennessee do not. Read the court decision
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Reprinted courtesy of Anastasiya Collins, Saxe Doernberger & Vita
Ms. Collins may be contacted at ACollins@sdvlaw.com

A Third of U.S. Homebuyers Are Bidding Sight Unseen

February 28, 2018 — Noah Buhayar – Bloomberg
Thirty-five percent of homebuyers in the U.S. aren’t even visiting the property before they put in a bid, amid torrid competition in a tight market, according to the latest survey by Redfin Corp. Read the court decision
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Reprinted courtesy of Noah Buhayar, Bloomberg

Lawsuit Gives Teeth to Massachusetts Pay Law

September 16, 2024 — Joseph Barra - Robinson+Cole
“The Massachusetts Legislature passed the state’s Prompt Pay Act 14 years ago to improve the downstream flow of money on most large-scale private construction projects. While the act established detailed protocols for administering applications for payment and other important construction phase processes, several questions about its interpretation and impact remained unanswered. Over the years, I watched as a significant portion of the Massachusetts design and construction community either ignored the law’s exacting requirements or were unaware of their applicability. The first indication of how the act would be interpreted came in 2022, when the state appeals court decided Tocci Building Corp. v. IRIV Partners LLC. In that case, the court strictly construed the act. It held that an owner (and its agent) who failed to promptly advise the project’s general contractor of specific factual and legal reasons why it was withholding payment, coupled with a failure to certify that funds were being withheld in good faith, violated the law—making the contractor liable for the unpaid funds. Read the court decision
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Reprinted courtesy of Joseph Barra, Robinson+Cole
Mr. Barra may be contacted at jbarra@rc.com

SIG Earnings Advance 21% as U.K. Construction Strengthens

August 13, 2014 — Benjamin Katz – Bloomberg
SIG Plc (SHI) earnings surged 21 percent in the first half as the distributor of building products benefited from a strengthening recovery in the U.K. housing market as well as procurement savings. Underlying operating profit rose to 47.8 million pounds ($80 million) from 39.6 million pounds a year earlier, the Sheffield, England-based company said in a statement today. Sales in the U.K. and Ireland from continuing operations climbed 14 percent to 650 million pounds, offsetting flat revenue in continental Europe. “Trading conditions in the U.K. have continued to gather momentum, led by the revival in the housing market,” Chief Executive Officer Stuart Mitchell said in the statement. “The group’s first-half performance and progress on its strategic initiatives provide a strong base on which to achieve its full-year expectations.” Read the court decision
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Reprinted courtesy of Benjamin Katz, Bloomberg
Mr. Katz may be contacted at bkatz38@bloomberg.net

Certificates as Evidence of Additional Insured Coverage Are All the Rage, But You Deserve Better

August 30, 2021 — Joseph L. Cohen, W. Mason & Sean Milani-nia - ConsensusDocs
Consider the following scenario: the construction project is ready to proceed. The deal is done. The agreements have all been carefully crafted, with detailed provisions on insurance dedicated to reducing risk. Those provisions require the downstream trade contractors to furnish certificates of insurance listing the owner and prime contractor as additional insureds on the downstream contractor’s policies of insurance. A provision in the prime contract further requires the prime contractor to provide the owner with a certificate of insurance showing the owner as an additional insured on the prime contractor’s policies. At the ceremonial ground-breaking and right before work commences, the downstream contractors deliver their insurance certificates to the prime contractor and the prime contractor delivers its certificate plus the downstream certificates to the owner. From there, each insurance certificate will begin its final destination to the project file (either electronic or physical) where, with any luck, it will serve the regular stint before being discarded after the project’s successful conclusion. Otherwise, it will be retrieved under much stress and heavy scrutiny. The acceptance of insurance certificates is often viewed as standard industry practice, but should it be? The answer is a resounding “no.” There are many form development and construction agreements in circulation that deem insurance certificates to be acceptable evidence of insurance. But, a certificate of insurance should not be relied upon because it does not mean that insurance has been placed. You deserve real evidence that the requisite additional insured coverage is in place (in the form of a policy endorsement), and here is why. Reprinted courtesy of Joseph L. Cohen, Fox Rothschild, W. Mason, Fox Rothschild and Sean Milani-nia, Fox Rothschild Mr. Cohen may be contacted at jlcohen@foxrothschild.com Mr. Mason may be contacted at wmason@foxrothschild.com Mr. Milani-nia may be contacted at smilani@foxrothschild.com Read the court decision
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Certificate of Merit to Sue Architects or Engineers Bill Proposed

May 03, 2011 — CDJ STAFF

North Carolina may become the twelfth state to require a Certificate of Merit to sue an architect or engineer. If North Carolina Senate Bill 435 (SB435) passes, then plaintiffs when filing a complaint will need to also attach an affidavit of a third-party licensed professional engineer or architect stating that the case has merit.

SB435 is a short two pages in its current form. The bill states that the “third-party licensed professional engineer or licensed architect shall (i) be competent to testify and hold the same professional license and practice in the same area of practice as the defendant design professional and (ii) offer testimony based upon knowledge, skill, experience, education, training, and practice. The affidavit shall specifically state for each theory of recovery for which damages are sought, the negligence, if any, or other action, error, or omission of the design professional in providing the professional service, including any error or omission in providing advice, judgment, opinion, or a similar professional skill claimed to exist and the factual basis for each such claim. The third-party licensed professional engineer or licensed architect shall be licensed in this State and actively engaged in the practice of engineering or architecture respectively.”

A few of the amendments allude to disciplining design professionals who certify civil actions that are without merit. The bill has been referred to the Committee on Judiciary I.

While North Carolina is considering enacting a Certificate of Merit law, eleven other states already require one, including Arizona, California, Colorado, Georgia, Maryland, Minnesota, New Jersey, Oregon, Pennsylvania, South Carolina, and Texas. Christopher D. Montez, a partner with Thomas, Feldman & Wilshusen, LLP, has written a useful summary for each state’s certificate of merit scheme.

Read the text of SB435

Track the progress of SB435

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CSLB Releases New Forms and Announces New Fees!

April 05, 2017 — Garret Murai – California Construction Law Blog
The California Contractors State License Board (CSLB”) has issued new application forms. Effective May 1, 2017, the CSLB will only accept forms with a revision date of October 2017 (Pro tip: see bottom of form to verify it indicates a revision date of “10/16” or later). Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Insured Entitled to Defense After Posting Medical Records Online

September 17, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The insurer had a duty to defend the insured contractor's publication of medical records online, making them accessible to anyone. Travelers Indem. Co. of Am. v. Portal Heathcare Solutions, LLC, 2014 U.S. Dist. 110987 (E.D. Va. Aug. 7, 2014). Portal specialized in safekeeping of medical records for hospitals, clinics, and other medical providers. Portal was sued in a class action suit filed in New York state court for failing to safeguard the confidential medical records of patients at Glen Falls Hospital. Two patients of Glen Falls conducted a Google search of their respective names, and found a direct link to their Glen Falls medical records. Travelers provided policies to Portal in 2012 and 2013, obligating Travelers to cover damages because of injury arising from (1) the "electronic publication of material that . . . gives unreasonable publicity to a person's private life" (the 2012 policy) or (2) the "electronic publication of material that . . . disclosed information about a person's private life" (the 2013 policy). Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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