Insurer’s Attempt to Shift Cost of Defense to Another Insurer Found Void as to Public Policy
June 09, 2016 —
Garret Murai – California Construction Law BlogWhile construction can sometimes be risky, construction litigation is almost always expensive. This volatile mix of risk and expense has made risk shifting, through indemnity and insurance, a primary goal and concern of project owners, contractors and suppliers alike. Construction insurers know this all too well and insurers, even between themselves, seek to shift risk.
As one primary insurer found, however, risk shifting provisions in their policies – specifically, one which sought to shift the cost of defense to another insurer – is not without its limitations.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
How New York City Plans to Soak Up the Rain
May 02, 2022 —
Linda Poon - BloombergWhen the remnants of Hurricane Ida pummeled New York City with more than 3 inches of rain in just one hour, the city struggled to soak it up. Instead, streets and subways flooded as storm drains were overwhelmed, basement apartments were inundated, and more than a dozen people died.
That September 2021 storm and the ones before it, including a cloudburst downpour during Tropical Storm Elsa in July, have forced New York to take a hard look at becoming a “spongier” city — one that combines nature-based green infrastructure like street-side rain gardens with gray infrastructure like storm drains to divert or absorb water and prevent catastrophic flooding.
“New York City is preparing for both chronic storm events — these cloudburst events that we see occurring more and more frequently — as well as extreme storm events like Ida,” says Jennifer Cherrier, a professor of earth and environmental sciences at Brooklyn College. On top of that, the city also faces mounting risks from storm surges, like during Hurricane Sandy in 2012.
Read the court decisionRead the full story...Reprinted courtesy of
Linda Poon, Bloomberg
The Hidden Dangers of Construction Defect Litigation
March 28, 2012 —
David M. McLain, Colorado Construction LitigationDavid M. McLain, writing at Colorado Construction Litigation, has an interesting blog post republishing his article in Common Interests magazine, the monthly periodical of the Rocky Mountain Chapter of the Community Associations Institute. In his article, he touches on a number of pitfalls in construction defect litigation, including the potential conflicts of interests facing HOAs. He also considers the problems homeowners can face, including both “strong-arm tactics” taken by attorneys to compel homeowners to join the lawsuit, or situations in which the interests of the HOA do not match those of the homeowners. He writes:
There is also a conflict of interest with individual owners who attempt to opt out of the case. This can lead to shocking strong-arm tactics on the part of plaintiffs’ attorneys. In one instance, a plaintiffs’ attorney sent a letter to an individual homeowner that stated that as a 1/58th owner of the common elements, if he refused to go along with the suit, and there was ultimately a finding in favor of the HOA which was in any way limited by his refusal to participate, he would be personally liable for 1/58th of the HOA’s total damages. In another instance, a different plaintiffs’ attorney sent a letter to a homeowner who wanted the builder to perform warranty repairs, informing the owner that if he let the builder perform any repairs, the attorney would bill the HOA according to the fee agreement entered by the HOA board (without knowledge or consent of non-board members) and that the HOA would assess the homeowner for that expense. These are just two examples of conflicts which may arise between the HOA board and individual homeowners when the HOA pursues CD cases.
Another example of a conflict which will arise as a result of CD litigation occurs post-settlement. When an HOA settles for less than 100% of the amount necessary to fund all repairs outlined by its experts, plus attorneys’ fees and litigation costs, there will obviously be a shortfall in the amount necessary to fix the development. The HOA board must then choose to impose a special assessment to cover the shortfall or to make some, but not all, of the repairs outlined by its experts. In choosing the latter, the conflict arises with respect to which homes get fixed and which do not. In this situation, the HOA board has acted as the attorney-in-fact for the individual owners by bringing claims on their behalf, and has compromised those claims without their knowledge or consent.
Read the full story…
Reprinted courtesy of David M. McLain of Higgins, Hopkins, McClain & Roswell, LLC. Mr. McClain can be contacted at mclain@hhmrlaw.com.
Read the court decisionRead the full story...Reprinted courtesy of
Massachusetts Clarifies When the Statute of Repose is Triggered For a Multi-Phase or Multi-Building Project
December 07, 2020 —
Jeffrey J. Vita & Anna M. Perry - Saxe Doernberger & Vita, P.C.Lennar Hingham Holdings, LLC (“Lennar”) built a twenty-eight-building, 150-unit condominium project containing twenty-four discrete phases over a seven-year span. The condominium association subsequently brought an action against Lennar and others alleging design and construction defects to four main components of the common elements: “decks and columns,” “roofing/flashing,” “exterior walls/flashing/building envelope,” and “irrigation system.” In response, the defendants argued that the plaintiff’s claims with respect to six of the twenty- eight buildings were barred by Massachusetts’s six-year statute of repose, G. L. c. 206 § 2B.
The United States District Court for the District of Massachusetts previously held that all twenty-eight of the condominium’s buildings should be treated as a single improvement for purposes of application of the statute of repose. Subsequently, the court certified the following question to the Massachusetts Supreme Judicial Court: Where the factual record supports the conclusion that a builder or developer was engaged in the continuous construction of a single condominium development comprising multiple buildings or phases, when does the six-year period for an action of tort relating to the construction of the condominium’s common or limited common elements start running?
Reprinted courtesy of
Jeffrey J. Vita, Saxe Doernberger & Vita, P.C. and
Anna M. Perry, Saxe Doernberger & Vita, P.C.
Mr. Vita may be contacted at JVita@sdvlaw.com
Ms. Perry may be contacted at APerry@sdvlaw.com
Read the court decisionRead the full story...Reprinted courtesy of
State-Fed Fight Heats Up Over Building Private Nuclear Disposal Sites
August 03, 2022 —
Mary B. Powers & Debra K. Rubin - Engineering News-RecordThe U.S. Nuclear Regulatory Commission and Interim Storage Partners, a joint venture that gained a federal license last year to build an interim storage facility for spent commercial nuclear fuel at a Texas site, have until Aug. 3 to answer a federal lawsuit claim by state officials that a new U.S. Supreme Court decision eliminates the federal agency’s licensing authority.
Reprinted courtesy of
Mary B. Powers, Engineering News-Record and
Debra K. Rubin, Engineering News-Record
Ms. Rubin may be contacted at rubind@enr.com
Read the full story...
Read the court decisionRead the full story...Reprinted courtesy of
7 Sustainability Ideas for Modular Classrooms in the Education Industry (guest post)
June 10, 2015 —
Melissa Dewey Brumback – Construction Law in North CarolinaToday, a guest post on sustainable modular classrooms from Kathy Werder, a freelance architect by profession and a researcher by nature. According to Kathy, most of her research papers focus on promoting integration that leads to sustainable and lean design and construction practices. Kathy is obsessed with the latest rage in the construction industry – modular building solutions. She is also an avid writer, and loves blogging about green buildings and portable construction units. Welcome, Kathy!
According to Wikipedia, a sustainable building refers to “ a structure and using process that is environmentally responsible and resource-efficient throughout a building’s life-cycle from sitting, to design, construction, operation, maintenance, renovation, and demolition.”
So if we accept this definition to be true, in order to make an actual sustainable building we have to consider the entire process of building right from the blueprint stage all the way to demolition, and ensure that at every step of the way there is minimal or no negative impact on the environment, especially in terms of resource efficiency.
Read the court decisionRead the full story...Reprinted courtesy of
Melissa Dewey Brumback, Construction Law in North CarolinaMs. Brumback may be contacted at
mbrumback@rl-law.com
Pennsylvania Supreme Court Will Not Address Trigger for DEP Environmental Cleanup Action at This Time
August 14, 2018 —
Gregory Capps - White and Williams LLPOn July 18, 2018, in Pennsylvania Manufacturers’ Association Insurance Company v. Johnson Matthey, Inc., et al., No. 24 MAP 2017 (Pa. July 18, 2018), the Pennsylvania Supreme Court quashed the Pennsylvania Manufacturers’ Association’s (PMA) appeal seeking review of a ruling denying its motion for summary judgment for an order that coverage for the cleanup of a toxic waste site is limited to the policy in effect when property damage was first discovered. In short, the court found the lower court’s ruling only narrowed the dispute between the parties and is, therefore, interlocutory and not appealable at this time.
Read the court decisionRead the full story...Reprinted courtesy of
Gregory Capps, White & Williams LLPMr. Capps may be contacted at
cappsg@whiteandwilliams.com
Insurance Attorney Gary Barrera Joins Wendel Rosen’s Construction Practice Group
July 26, 2017 —
Garret Murai - California Construction Law BlogWendel Rosen’s Construction Practice Group welcomes a new member to our band of merry men (and women), Gary Barrera.
Gary, an insurance attorney, has extensive experience with construction defect, property damage, professional liability and environmental claims. He has represented real estate developers and contractors in all aspects of construction defect litigation and has resolved insurance coverage disputes arising out of construction claims on behalf of policyholders. Prior to attending law school, Gary worked as a claims representative and examiner for several insurance carriers and third-party administrators.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com