Massachusetts Federal Court Rejects Adria Towers, Finds Construction Defects Not an “Occurrence”
July 03, 2022 —
Eric B. Hermanson & Austin D. Moody - White and WilliamsIn an important ruling for insurers, U.S. District Court Judge Patti Saris found that Massachusetts does not follow the position taken in Cypress Point Condo Association v. Adria Towers, LLC, 226 N.J. 403, 418 (2016), i.e., it does not hold that "faulty workmanship claims [should be recognized] as ... an 'occurrence,' thus triggering coverage, 'so long as the allegedly defective work [was] performed by a subcontractor rather than the policyholder itself."
[1]
Instead, Judge Saris reaffirmed earlier Massachusetts authority holding faulty work is not an "occurrence" for coverage purposes,
[2] and found this authority applied whether or not the work in question was subcontracted.
In the alternative, Judge Saris found, even if a contractor's faulty work could be deemed an an "occurrence," such work did not constitute covered "property damage," because none of the alleged damage was "outside the scope of the work that Tocci was contractually required to fulfill as general contractor."
[3]
Reprinted courtesy of
Eric B. Hermanson, White and Williams and
Austin D. Moody, White and Williams
Mr. Hermanson may be contacted at hermansone@whiteandwilliams.com
Mr. Moody may be contacted at moodya@whiteandwilliams.com
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Lead Paint: The EPA’s Renovation, Repair and Painting Rule
September 09, 2019 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday here at Musings, we welcome Joshua Glazov for the first time. Josh has been a construction lawyer since 1995. He practices at Much Shelist in Chicago and focuses on negotiating and preparing design and construction contracts for owners, contractors, and lenders, as well as preparing for, and confronting, construction related insolvency when a project participant goes bankrupt or a lender goes into FDIC receivership. Josh publishes on these topics at his blogs: Construction Law Today and the Bank Failure Blog.
Last month the EPA finally issued their Renovation, Repair and Painting Rule (PDF), the one that sets up new requirements for work on projects that may involve lead paint. The requirements are many complex. You’ll need to become familiar with this rule if you do any renovation , repair, or painting work, especially of your work is on buildings built before lead paint was banned in 1978.
- You’ll need to become a certified by the EPA as a Certified Renovation Firm
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Your Construction Contract
April 08, 2024 —
David Adelstein - Florida Construction Legal UpdatesYour construction contract is an important topic. What’s even more important is YOUR process for reviewing and negotiating construction contracts.
Are you simply acting as a riverboat gambler willing to assume undue risk because you don’t value the investment in understanding what you are signing? If so, it becomes hard to complain about what you agreed to and signed when you chose NOT to invest in the process. Investing in the process means you are working with a construction attorney, you have an insurance broker that understands your industry, you have resources in place to ensure risk is negotiated and allocated, and you understand what risk you are assuming to make sure you are properly protecting and perfecting your rights, and transferring risk downstream.
When it comes to construction contracts, there are really three approaches:
1. Riverboat Gambler. This is the “I’ll sign whatever you give me because I don’t want to lose the contract / revenue.” Under this approach, you are not worried about undue risk because you don’t value the investment in the next two approaches. Your thought process is that you’ll care about the risk when an issue pops up, i.e., the riverboat gambler. This is not an approach I’d recommend because it is contrary to the adage, “an ounce of prevention is worth a pound of cure.” This is simply a reactive approach to issues and risks. The other two approaches are more proactive and better suited to understand and manage risk.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Bill Introduced to give Colorado Shortest Statute of Repose in U.S.
January 21, 2015 —
Jesse Howard Witt – Acerbic WittYesterday, State Senator Ray Scott (R-Mesa County) introduced a bill to shorten Colorado’s already short statute of repose. If this bill passes, it will severely undermine the rights of Colorado homeowners.
Colorado already has one of the shortest construction defect statutes of repose in the United States. If a homeowner does not discover a defect within six years of a house’s completion, the homeowner may forfeit all legal rights to seek repairs. Senator Ray’s bill would cut this time in half and could preclude homeowners from obtaining any relief three years after a home is built. No other state in America has such a severe limit on homeowner rights.
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Jesse Howard Witt, The Witt Law FirmMr. Witt welcomes comments at www.wittlawfirm.net
Maybe California Actually Does Have Enough Water
September 06, 2021 —
Francis Wilkinson - BloombergIt’s hard to know how much to panic over California’s dwindling water supplies. The state has never really had enough water, after all, yet lawns in Beverly Hills somehow remain perpetually green. Earlier this month, however, came a sign that life might soon be getting more uncomfortable for more Californians.
On Aug. 3, the State Water Resources Control Board voted 5 to 0 to issue an “emergency curtailment” order for the Sacramento-San Joaquin Delta watershed. Last week the order was submitted to the state’s Office of Administrative Law, which is likely to approve it.
The watershed covers about 40% of the state, stretching roughly from Fresno to Oregon, and is California’s largest source of surface water. About 5,700 holders of water rights, largely in agriculture and business, will be affected by the reduction in water access. Although many farms have already drawn most of the water they need for the season, the board’s move was a sign that ancestral water rights won’t be a guarantee of actual water if drought persists.
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Francis Wilkinson, Bloomberg
Policyholder Fails to Build Adequate Record to Support Bad Faith Claim
May 19, 2011 —
Tred R. EyerlyThe importance of careful preparation and documentation was the take away lesson in a Texas bad faith case, C.K. Lee v. Catlin Specialty Ins. Co., 2011 U.S. Dist. LEXIS 19145 (S.D. Tex. Feb. 28, 2011).
C.K. Lee owned a commercial shopping center in Houston. Catlin issued a commercial property policy to Lee. On September 12, 2008, Hurricane Ike hit and caused substantial property damage throughout the Texas Gulf Coast area. On September 24, 2008, Lee submitted a claim for damage to the roof of his shopping center to Catlin.
Catlin hired Engle Martin to represent its interests in adjusting the claim. Engle Martin eventually adjusted over 200 Ike-related claims for Catlin.
In November 2008, Engle Martin and Emergency Services Inc., retained by Lee, inspected Lee’s property. Engle Martin observed evidence of roof repairs that had apparently been made both before and after Hurricane Ike. Engle Martin decided it was necessary to use an infrared scan of the roof to help identify which damages, if any, were attributable to wind and which, if any, were attributable to sub par, prior repairs or natural deterioration.
Engle Martin retained Project, Time & Cost (PT&C) to conduct the infrared inspection. PT&C’s inspection determined there was no wind-related damage to the roof and no breaches or openings created by wind. Instead, the roof had exceeded its life expectancy and was in need of replacement due to normal wear and weathering. Consequently, Catlin decided that the damage to Lee’s roof was not caused by winds from Hurricane Ike.
Meanwhile, Lee’s contractor, Emergency Services, prepared a report estimating that the total cost of repairing the roof would be $871,187. Engle Martin’s estimate for repair of the roof was $22,864.
Lee filed suit for breach of contract, breach of the duty of good faith and fair dealing, and violations of the Texas Insurance Code. Catlin moved for summary judgment on all claims but breach of contract, arguing that because there was a bona fide dispute concerning the cause of the damages and whether they were covered under the policy, there was no evidence of bad faith or violations of the Texas Insurance Code.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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How Many Homes have Energy-Efficient Appliances?
October 08, 2014 —
Beverley BevenFlorez-CDJ STAFFThe National Association of Home Builders’ Eye on Housing analyzed data from the Census Bureau’s 2011 American Housing Survey to “reveal the share of owner-occupied homes that contain various Energy Star related appliances.”
Eye on Housing reported that in “new homes, the leading shares of Energy Star rated appliances were refrigerators (70%), washing machines (69%), dishwashers (65%), and central air conditioning (52%).” In “owner-occupied homes,” the survey demonstrated that “refrigerators are the most common Energy Star appliance.”
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Take Advantage of AI and Data Intelligence in Construction
May 06, 2019 —
Nick Carter - Construction ExecutiveFor consumers, AI and data intelligence are daily activities. Purchase recommendations from Amazon simplify holiday shopping. Music options from Spotify helps employees focus during the workday and relax at night. Car-sharing apps remove the stress from post-happy hour transport.
It is time for this kind of data-driven ease to hit the construction industry. Building is booming, yet despite the good times, the industry still lags in terms of data intelligence and AI. With them, construction providers can transform document and jobsite information into intelligent insights, reduce errors, keep projects on schedule and predict and prevent costly inefficiencies. Artificial intelligence is the “connective tissue” that construction is missing--if it is used wisely.
Why Construction is Ready for AI
With its endless stream of owners, architects, engineers, contractors, subcontractors and suppliers, the construction industry manages more critical information on a day-to-day basis than nearly any other business. As a result, there are dozens of potential miscommunications just waiting to happen every day.
Reprinted courtesy of
Nick Carter, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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