Eleventh Circuit Asks Georgia Supreme Court if Construction Defects Are Caused by an "Occurrence"
December 20, 2012 —
TRED EYERLY, INSURANCE LAW HAWAIIThe Eleventh Circuit certified a question to the Georgia Supreme Court, asking whether property damage can constitute an "occurrence" under a CGL policy where its effects are not felt on "other property."
HDI-Gerling Am. Ins. Co. v. Morrison Homes, Inc., 2012 U.S. App. Ct. LEXIS 23813 (11th Cir. Nov. 19, 2012).
The general contractor, Taylor Morrison Services, Inc., was covered by a CGL policy issued by Gerling. The policy excluded "expected or intended injury," contractual liability," and business risk exclusions. Morrison was sued by homeowners in a class action suit. Morrison had allegedly omitted four inches of gravel required beneath the base of the concrete foundations by the Uniform Building Code. Thereafter, the houses sustained water intrusion, cracks in the floors and driveways, and warped and buckling flooring.
Gerling defended, but sued Morrison for a declaratory judgment.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Insurance Law Hawaii.Mr. Eyerly can be contacted at
te@hawaiilawyer.com
ASCE Statement on House Passage of Infrastructure Investment and Jobs Act
November 15, 2021 —
American Society of Civil EngineersThe following is a statement by Dennis D. Truax, P.E., President, American Society of Civil Engineers (ASCE):
WASHINGTON, DC. – It is a great day for the nation as the U.S. House of Representatives passed the Infrastructure Investment and Jobs Act (IIJA), fulfilling President Biden's vision with a historic piece of legislation that will have monumental impacts on the economy, public safety, global competitiveness, and each American's well-being. Passage of this five-year, $1.2 trillion bill proves once again that the country can lead with infrastructure.
With this legislation, the federal government will restore their critical partnership with cities and states to modernize our nation's roads, bridges, transit systems, drinking water pipes, school facilities, broadband, ports, airports and more. Without a strong federal partner, local projects that are community lifelines have hung in the balance, oftentimes being paused or outright cancelled due to funding uncertainties. When this happens, American households and businesses are the ones who pay the price.
The IIJA is the culmination of decades of advocacy by American Society of Civil Engineers (ASCE) members who worked tirelessly to educate Congress about the role infrastructure plays in supporting the economy and our quality of life. ASCE's Infrastructure Report Cards have sounded the alarm on our nation's infrastructure conditions since 1998, with new reports being released every four years. While all categories of infrastructure have been the cause of some concerns, the common denominator behind each category's struggles has been a backlog of projects, overdue maintenance, and a need for resilience. This bill includes investments to repair and modernize these critical assets for almost all of the 17 categories in the 2021 Report Card for America's Infrastructure, which assigned our nation's infrastructure a cumulative grade of 'C-'.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
Read the court decisionRead the full story...Reprinted courtesy of
Beginning of the 2020 Colorado Legislative Session: Here We Go Again
February 10, 2020 —
David M. McLain – Colorado Construction LitigationThe 2020 Colorado legislative session started on Wednesday, January 8th. It seems like there will be plenty of issues this year to which home builders will want to pay close attention. On January 13th, Senators Fenberg, Foote, and Jackson sponsored SB 20-093, known as the “Consumer and Employee Dispute Resolution Fairness Act.”
For certain consumer and employment arbitrations, the act:
- Prohibits the waiver of standards for and challenges for evident partiality prior to a claim being filed and requires any waiver of such provisions after the claim is filed to be in writing;
- Provides that the right of a party to challenge an arbitrator based on evident partiality is waived if not raised within a reasonable time of learning of the information leading to the challenge but that such right is not waived if caused by the opposing party;
- Establishes ethical standards for arbitrators; and
- Requires specified public disclosures by arbitration services providers but includes protections for certain confidential information.
Read the court decisionRead the full story...Reprinted courtesy of
David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Retainage on Pennsylvania Public Contracts
January 31, 2018 —
Wally Zimolong - Supplemental ConditionsAh yes, retainage, what could represent your profit on a project and something frequently abused by owners on private and public projects alike. Fortunately, Pennsylvania law offers public works contractors some protection from retainage abuse. The Public Prompt Payment Act dictates when retainage can be withheld and when it must be released. Agencies that fail to follow the Prompt Payment Act’s retainage rules can end up owing you interest, penalty, and attorney’s fees.
Read the court decisionRead the full story...Reprinted courtesy of
Wally Zimolong, Zimolong LLC
Tariffs, Supply Snarls Spur Search for Factories Closer to U.S.
February 21, 2022 —
Laura Curtis - BloombergSmall businesses looking for a factory that can make some stylish orthopedic shoes, chairs or construction materials may have an easier time finding a closer-to-home alternative to waiting for the supply-chain snarl in the Pacific Ocean to work itself out.
Zipfox, an online platform that links businesses up with factories in Mexico, launched this week, enabling near-shoring of production and the chance to get goods into the U.S. more quickly than if businesses were sourcing from manufacturing hubs in China.
“People are feeling the pain from sourcing from China right now but they aren’t really aware of the manufacturing capability and capacity that Mexico already has,” Zipfox founder Raine Mahdi said Tuesday.
Read the court decisionRead the full story...Reprinted courtesy of
Laura Curtis, Bloomberg
Policy's Limitation Period for Seeking Replacement Costs Not Enforced Where Unreasonable
March 12, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe New York Court of Appeals determined that a two year period for obtaining replacement costs for damage to property was unenforceable where the property could not be reasonably replaced in two years. Executive Plaza, LLC v. Peerless Ins. Co., 2014 WL 551251 (N.Y. Ct. App. Feb. 13, 2014).
Plaintiff's office building was severely damaged in a fire on February 23, 2007. It cost more than a million dollars to restore the building to its previous condition. Plaintiff had $1 million in coverage from Peerless. The policy provided that replacement costs for any loss would be paid after the damaged property was repaired. The insured was required to make the repairs as soon as possible. Further, the policy provided that any legal action against the insurer had to be brought within two years of the loss.
Peerless paid the "actual cash value" of the destroyed building pursuant to the policy in the amount of $757,812.50. Peerless informed the plaintiff that it would have to provide documentation of the completion of repairs to collect the full replacement value, another $242,187.50.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Will COVID-19 Permanently Shift the Balance between Work from Home and the Workplace?
April 13, 2020 —
Adam Weaver - Gravel2Gavel Construction & Real Estate Law BlogOn March 15, 2020, the Center for Disease Control and Prevention (CDC) issued formal guidance to combat the spread of the coronavirus by recommending against gatherings of 50 or more people for the next eight weeks (CDC guidance), which includes nearly every office building in America. Thus, began the most significant work from home experiment this country has ever seen.
With the majority of the workforce working from home, many employees see this as an opportunity to finally prove that, “yes, that meeting could have been an email.” However, while workers will not be distracted by constant (and potentially unnecessary) meetings, a number of issues and questions arise with working from home.
Most importantly, is this working from home experiment a temporary opportunity for businesses to test remote work ideas or is this the new normal? And how will this affect commercial real estate moving forward?
Read the court decisionRead the full story...Reprinted courtesy of
Adam Weaver, PillsburyMr. Weaver may be contacted at
adam.weaver@pillsburylaw.com
NLRB Broadens the Joint Employer Standard
September 17, 2015 —
Craig Martin – Construction Contractor AdvisorPerhaps in anticipation of Labor Day, the National Labor Relations Board issued its ruling in Browning-Ferris Indus. of Cal. d/b/a BFI Newby Island Recyclery, establishing an easier standard for unions to prove that a joint employer relationship exists. This will make it easier for unions to make the upstream company, like a parent company, liable for unfair labor practices, even if the upstream company had no direct involvement.
Some Background
BFI runs a recycling plant and contracts with Leadpoint to provide workers to sort garbage in the recycling plant. The staffing agreement specifically stated that Leadpoint was the sole employer of the personnel it supplied and Leadpoint handled supervision of the employees, not BFI.
Leadpoint’s employees sought to unionize and an election was held. The union filed a petition seeking a determination that Leadpoint and BFI were a joint employers.
Read the court decisionRead the full story...Reprinted courtesy of
Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com