Reversing Itself, West Virginia Supreme Court Holds Construction Defects Are Covered
July 31, 2013 —
Tred Eyerly, Insurance Law HawaiiThe West Virginia Supreme Court previously held that construction defects were not covered under a CGL policy. The Court, however, reversed itself in Cherrington v. Erie Ins. Prop. & Cas. Co., 2013 W.Va. LEXIS 724 (W.V. June 18, 2013).
The underlying complaint against the general contractor alleged various defects in the plaintiff’s recently constructed house, including an uneven concrete floor, water infiltration through the roof and chimney joint, a sagging support beam, and numerous cracks in the drywall walls and partitions throughout the house. Erie Insurance denied coverage. The insured general contractor sued, but the trial court found that faulty workmanship was not sufficient to give rise to an “occurrence.”
The West Virginia Supreme Court reversed its prior rulings determining there was no coverage for construction defects. The court recognized its prior position was in the minority, as is Hawaii's position on coverage for construction defects. See Group Builders Inc. v. Admiral Ins. Co., 123 Haw. 142, 148, 231 P.3d 67, 73 (Haw. Ct. App. 2010). Now joining the majority position, the West Virginia Supreme Court found that defective workmanship causing property damage was an “occurrence” under a CGL policy. Further, the homeowner had demonstrated that she sustained "property damage" as a result of the allegedly defective construction of her home.
The trial court also determined that the business risk exclusions barred coverage. Again, the West Virginia Supreme Court disagreed.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Nicholas A. Thede Joins Ball Janik LLP
October 02, 2015 —
Beverley BevenFlorez-CDJ STAFFAs of September 1st, Nicholas A. Thede, an insurance recovery litigator, joined Ball Janik LLP’s Insurance Recovery, Construction Defect, and Litigation practices. According to the release, Mr. Thede “has advised clients in a wide variety of insurance disputes, including claims arising under general liability, professional liability, directors and officers, employee dishonesty, homeowners, and automotive insurance policies. Thede has successfully represented clients in trials, arbitrations, and appeals, and has obtained numerous favorable settlements for his clients. He has handled insurance disputes throughout Oregon and Washington, along with several other jurisdictions. Mr. Thede has substantial experience litigating claims for insurance ‘bad faith’ and recovery of attorney fees in a variety of settings.”
Ball Janik LLP is headquartered in Portland, Oregon.
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California’s Wildfire Dilemma: Put Houses or Forests First?
November 29, 2021 —
Jim Hinch - BloombergAs record-breaking fires blacken millions of acres in California and elsewhere in the West this year, politicians are mostly sticking to a standard script in response. President Joe Biden’s proposed budget this year includes a $500 million boost to what the White House calls “forest management” and other efforts to reduce wildfire risk. In July, California lawmakers approved $1.5 billion in similar prevention spending.
The funds are in addition to the $2 billion the federal government spends each year fighting fires — a figure twice what it was 10 years ago and roughly five times more than in the 1980s and 1990s. A study last year found that in 2018, wildfires in California caused $148.5 billion in economic damage, including $46 billion outside the state.
Roughly one in three American houses is now in what forest scientists call the wildland-urban interface, where growing cities, remote workers, second-home buyers and commuters priced out of other housing markets are often pushing into fire-prone regions. A 2017 study found that 900,000 homes in the Western U.S. worth a combined $237 billion were “at high risk for fire damage.”
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Jim Hinch, Bloomberg
Former Trump Atlantic City Casino Set for February Implosion
December 29, 2020 —
Stephanie Loder - Engineering News-RecordThe 39-story main tower of the former Trump Plaza hotel-casino on the Atlantic City, N.J., boardwalk, sold to investor Carl Icahn in 2016, will be imploded in February by a Philadelphia general contractor already in the process of dismantling the former showplace of President Donald Trump's real estate holdings.
Reprinted courtesy of
Stephanie Loder, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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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.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
The Texas Storm – Guidance for Contractors
March 08, 2021 —
Curtis W. Martin & Paulo Flores - Peckar & Abramson, P.C.The Texas snow and ice storm of February 2021 will long be remembered. It has affected everyone across the State, and its impacts continue to be felt a week later. This Alert provides the construction industry with guidance and recommendations for navigating commercial risk resulting from the storm.
The potential impacts to your projects may be wide reaching. Consequences on a project site can include damage to the site, delays to work from the storm or from government orders, or simply the lack of help from trades who are dealing with serious personal catastrophes. Offsite impacts can cover a much broader scope of issues, including supply production issues or transportation interruptions. So, what can contractors facing such impacts do to avoid losses, mitigate the impacts, and prepare for what’s to come?
Reprinted courtesy of
Curtis W. Martin, Peckar & Abramson, P.C. and
Paulo Flores, Peckar & Abramson, P.C.
Mr. Martin may be contacted at cmartin@pecklaw.com
Mr. Flores may be contacted at PFlores@Pecklaw.com
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Traub Lieberman Partner Katie Keller and Associate Steven Hollis Obtain Summary Judgment Based on Plaintiff’s Failure to Comply with Policy Conditions
June 12, 2023 —
Kathryn Keller & Steven A. Hollis - Traub LiebermanTraub Lieberman Partner Katie Keller and Associate Steven Hollis obtained summary judgment on behalf of a major homeowners’ insurer in a breach of contract action in the Circuit Court for the Ninth Judicial Circuit in and for Osceola County, Florida. The underlying claim involved a water loss in the kitchen of the Plaintiff’s property allegedly resulting in substantial damage to the home necessitating renovations throughout the residence. The claim was reported seventeen days after the reported date of loss by Plaintiff’s counsel. The Plaintiff had retained counsel and two vendors before giving notice to the insurer. In addition, the insurer’s field adjuster was not provided the opportunity to inspect the plumbing materials which had been allegedly damaged. Specifically, the bottom panel of the sink kitchen cabinet box had been removed. The insurer retained an engineer, who concluded that the removal of the damaged property hindered the ability of the engineer to determine their conditions prior to removal or whether exposure from waste arm leakage occurred. It was later learned that the damaged plumbing fixtures and the bottom of the cabinets had been thrown out by the contractors, which all happened before the claim was reported to the insurer. The insured also failed to provide a signed, sworn proof of loss within sixty days after the loss.
Reprinted courtesy of
Kathryn Keller, Traub Lieberman and
Steven A. Hollis, Traub Lieberman
Ms. Keller may be contacted at kkeller@tlsslaw.com
Mr. Hollis may be contacted at shollis@tlsslaw.com
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Manhattan Condo Resale Prices Reach Record High
September 03, 2014 —
Oshrat Carmiel – BloombergPrices for previously owned Manhattan condominiums rose to a record last month even as an increase in the supply of units eased competition among buyers.
An index of resale prices climbed 1.1 percent from June to reach the highest level in data going back to 1995, StreetEasy.com, a New York real estate website, said in a report today. The inventory of condos on the market grew 5.4 percent from a year earlier, the biggest annual gain since October 2009.
The market is still tight, with the number of available condos about 16 percent below the five-year average for Manhattan. That will continue to drive up prices, according to StreetEasy, which projects a 0.4 percent increase for August.
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Oshrat Carmiel, BloombergMs. Carmiel may be contacted at
ocarmiel1@bloomberg.net