Colorado Federal Court Confirms Consequetial Property Damage, But Finds No Coverage for Subcontractor
November 01, 2022 —
Tred R. Eyerly - Insurance Law HawaiiA recommended decision from the Magistrate Judge of the Federal District Court for the District of Colorado found there was no coverage for the subcontractor's faulty workmanship, but recognized that Colorado finds consequential damages to be property damage. Indian Harbor Ins. Co. v. Houston Cas. Co., 2022 U.S. Dist. LEXIS 117857 (D. Colo. July 5, 2022).
The insured, Tripp Construction, was a subcontrator for contructing balconies at an apartment complex. The owner complained that Tripp failed to properly install balconies. The defective installation of certain balcony components damaged other, non-defective components.
The general contractor had an OCIP policy issued by Houston Casualty Company (HCC). The general contractor also had a Subcontractor Default policy issued by Indian Harbor.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Endorsement Excludes Replacement of Undamaged Property with Matching Materials
August 20, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe court approved the insurer's endorsement which stated the insured would not pay for undamaged property in order to match damaged property. Noonan v. Am. Family Mut. Ins. Co., 2019 U.S. App. LEXIS 15545 (May 24, 2019).
After hail and wind damaged part of the roof in the insureds' home, American Family inspected the roof and determined that it had suffered $12,000 in damage. The insureds disputed this amount and demanded an appraisal to provide a binding estimate of the amount of loss. American Family asked the appraisers to divide their estimate into two categories - one for replacing damaged shingles and another for replacing undamaged shingles that would not match those needed to replace the damaged ones. The appraisers did not do so. They instead found that replacing the entire roof would cost $141,000 and noted there was a matching issue because alternative products did not match the current shingles on the roof.
Of the $141,000 needed to replace the entire roof, American Family estimated that $87,232.98 was due to the costs of matching. The insureds sued. The district court remanded the case to the appraisers to clarify the award by differentiating the costs attributable to the actual roof damage from those attributable to shingle matching. The appraisers clarified the award and reported that actual damages were $66,619, meaning that $74,381 was attributable to matching. American Family then paid the actual damages, less the deductible, but refused to pay the rest.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Haight Proudly Supports JDC's 11th Annual Bike-A-Thon Benefitting Pro Bono Legal Services
July 21, 2018 —
Stephen M. Tye - Haight Brown & Bonesteel LLPHaight proudly donates to the Justice & Diversity Center of the Bar Association of San Francisco’s 11th Annual “Ride for Justice” in support of San Francisco attorney Stephen M. Tye. This is Mr. Tye’s second year participating in the JDC’s Bike-A-Thon, which raises funds to provide pro bono legal services programs that provide access to justice for thousands of San Franciscans every year.
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Stephen M. Tye, Haight Brown & Bonesteel LLPMr. Tye may be contacted at
stye@hbblaw.com
Considering Stormwater Management
March 26, 2014 —
Beverley BevenFlorez-CDJ STAFFAmanda Voss discusses stormwater and erosion control in a recent article published in Big Builder. “Stormwater and erosion control regulations are expanding their reach in the building industry,” Voss stated. “Now, even some remodeling programs have them.”
Voss presented various ideas to assist builders with stormwater management. First, she says, to identify potential pollutants: “You’ve got to pay attention not just to what you bring on to a site, but also to what leaves it—think erosion control and existing sediment.” Factors to consider include “site topography,” “materials brought in and out,” and the “staging area.”
Voss also suggested to “[m]ake sure that your stormwater strategy dovetails with a drainage plan,” and finally, to “[e]nlist the inspector as an ally.”
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Issue and Claim Preclusion When Forced to Litigate Similar Issues in Different Forums: White River Village, LLP v. Fidelity and Deposit Company of Maryland
October 10, 2013 —
Brady Iandiorio — Higgins, Hopkins, McLain & Roswell, LLC.Often in construction litigation the parties wish to move the case to arbitration. However, there are certain circumstances in which such change of litigation forums should be carefully analyzed. The case of White River Village, LLP v. Fidelity and Deposit Company of Maryland, serves as an example of one of those circumstances.
In March 2013, U.S. District Court Judge Blackburn ruled on a motion for summary judgment filed by Fidelity and Deposit Company of Maryland (“F&D”). The order grants the motion in part and denies it in part. White River Village, LLP (“White River”) was the owner of the project which hired S&S Joint Venture (“S&S”), the contractor, to build two similar developments, directly adjacent to each other. The contracts between Whiter River and S&S for the two projects were so substantially similar that the court referred to them as the S&S Contracts. F&D issued payment and performance bonds guarantying the obligations of S&S under the S&S Contracts.
After S&S defaulted on the construction contracts, F&D, as the surety, undertook to complete performance on the contracts. White River alleged that F&D was liable for construction defects and delays in completing the project, and failed to fulfill its obligations under the performance bonds after it overtook the construction of the projects.
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Brady IandiorioBrady Iandiorio can be contacted at
Iandiorio@hhmrlaw.com
Broker for Homeowners Policy Has No Duty to Advise Insureds on Excess Flood Coverage
November 02, 2017 —
Tred R. Eyerly - Insurance Law HawaiiA broker who assisted the insureds in procuring a homeowners policy had no duty to advise the insureds to secure additional flood coverage. Ring v. Meeker Sharkey Assocs., LLC, 2017 N.J. Super. Unpub. LEXIS 3458 (N.J. Super Ct. App. Div. Sept.26, 2017).
The insureds owned two beachfront properties that were located in a designated flood zone. They secured homeowners and flood insurance through Meeker's predecessor. Subsequently, Meeker became the insureds' homeowners insurance broker while Willis, N.A. was their flood insurance broker.
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Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Killer Subcontract Provisions
January 20, 2020 —
Patrick McNamara - Porter Law GroupWe are frequently requested by subcontractor clients to review the subcontract that has been prepared by the prime contractor, before our client signs it. While no two agreements are identical, there are a number of problematic contract provisions that appear in many agreements. Here is a list of ten such provisions (and their variations) that are potential “deal breakers”:
- PAY IF/WHEN PAID (e.g. “Contractor shall have the right to exhaust all legal remedies, including appeals, prior to having an obligation to pay Subcontractor.”) “Pay-if-paid” provisions (“Receipt of payment from Owner shall be a condition precedent to Contractor’s duty to pay Subcontractor”) are illegal in California. However, the only legal limit on “Pay-When-Paid” provisions is that payment must be made “within a reasonable time.” The example above, as written, essentially affords the prime contractor a period of several years following completion of the project before that contractor has an independent duty to pay its subcontractors – not a “reasonable” amount of time, to those waiting to be paid. A compromise is to provide a time limit, such as 6 months or one year following substantial completion of the project.
- CROSS-PROJECT SET-OFF (e.g. “In the event of disputes or default by Subcontractor, Contractor shall have the right to withhold sums due Subcontractor on this Project and on any other project on which Subcontractor is performing work for Contractor.”) Such provisions are problematic and likely unenforceable, as they potentially bar subcontractors’ lien rights. Such provisions should be deleted.
- CONTRACTOR/SUBCONTRACTOR RESPONSIBILITY FOR DESIGN QUALITY (e.g. “Subcontractor warrants that the Work shall comply with all applicable laws, codes, statutes, standards, and ordinances.”) Unless a subcontractor’s scope of work expressly includes design work, this provision should either be deleted or modified, with the addition of the following phrase: “Subcontractor shall not be responsible for conformance of the design of its work to applicable laws, codes, statutes, standards, and ordinances.”
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Patrick McNamara, Porter Law GroupMr. McNamara may be contacted at
pmcnamara@porterlaw.com
Best Lawyers® Recognizes 38 White and Williams Lawyers
September 13, 2021 —
White and Williams LLPWhite and Williams is proud to announce that 30 lawyers were recognized in the 2022 edition of The Best Lawyers in America® 2022 and eight were recognized as “Ones to Watch.”
Inclusion in Best Lawyers® is based entirely on peer-review. The methodology is designed to capture, as accurately as possible, the consensus opinion of leading lawyers about the professional abilities of their colleagues within the same geographical area and legal practice area.
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White and Williams LLP
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