Court Affirms Duty to Defend Additional Insured Contractor
December 05, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe appellate court affirmed the lower court's ruling that the insurer must defend. Main St. Am. Assurance Co. v. Merchants Mut. Ins. Co., 2022 N.Y. App. Div. LEXIS 5507 (N.Y. App. Div., Oct. 7, 2022).
XL Construction Services, LLC was the contractor on a construction project. Timothy J. O'Connor was insured when performing drywall finishing as a self-employee subcontractor on the project. As part of a written indemnification and insurance agreement between the parties, O'Connor was obligated to obtain insurance for the benefit of XL Construction. O'Connor was insured by Merchants Mutual Insurance Company under a policy containing an additional insureds endorsement that provided coverage to a party where required by a written agreement, but "only with respect to liability for 'bodily injury' . . . caused in whole or in part, by . . . [O'Connor's] acts or omissions."
The trial court found there was a duty to defend and entered judgment that Merchants Mutual was obligated to provided a defense to XL Construction.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
AI and the Optimization of Construction Projects
February 19, 2024 —
Rahul Shah - Construction ExecutiveSeeking answers on how to construct smarter and greener buildings or improve water efficiency in homes and offices, those who create our buildings and construction projects are entering a new era of learning as they turn their attention to the benefits of artificial intelligence.
While human involvement will continue to be paramount, AI has the potential to assist in creating informed decisions, for example by suggesting sustainable, durable materials or cost-effective, but still safe, practices.
The possible applications of AI for the construction industry could be transformative across design, procurement, construction, operation and decommissioning. In fact,
research suggests designers and contractors are already applying AI and machine learning to manage the volumes of data involved in the design of buildings, the planning of construction projects and the day-to-day operations of sites.
Reprinted courtesy of
Rahul Shah, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Colorado Supreme Court Issues Decisions on Statute of Limitations for Statutory Bad Faith Claims and the Implied Waiver of Attorney-Client Privilege
July 11, 2018 —
Jennifer Arnett-Roehrich - Gordon & Rees Insurance Coverage Law BlogThe Colorado Supreme Court has been busy the past two weeks, issuing a couple rulings that should be of interest to the insurance industry:
Statute of Limitations for Bad Faith Statute: In Rooftop Restoration, Inc. v. American Family Mutual Insurance Co., 2018 CO 44 (May 29, 2018), the Colorado Supreme Court held that the one-year statute of limitations that applies to penalties, does not apply to claims brought under C.R.S. 10-3-1116, Colorado’s statutory cause of action for unreasonable delay or denial of benefits. Section 10-3-1116 provides that a first-party claimant whose claim for payment of benefits has been unreasonably delayed or denied may seek to recover attorney fees, costs, and two times the covered benefit, in addition to the covered benefit. A separate Colorado statute, CRS 13-80-103(1)(d) provides a one-year statute of limitations for “any penalty or forfeiture of any penal statutes.” To arrive at the conclusion that the double damages available under section 10-3-1116 is not a penalty, the Court looked at yet another statutory provision, governing accrual of causes of action for penalties, which provides that a penalty cause of action accrues when “the determination of overpayment or delinquency . . . is no longer subject to appeal.” The Court stated that because a cause of action under 10-3-1116 “never leads to a determination of overpayment or delinquency . . . the claim would never accrue, and the statute of limitations would be rendered meaningless.” Para. 15. Presumably, the default two-year statute of limitations, provided by CRS 13-80-102(1)(i), will now be found to apply to causes of action seeking damages for undue delay or denial of insurance benefits.
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Jennifer Arnett-Roehrich, Gordon & Rees Scully MansukhaniMs. Arnett-Roehrich may be contacted at
jarnett-roehrich@grsm.com
Anthony Luckie Speaks With Columbia University On Receiving Graduate Degree in Construction Administration Alongside His Father
October 02, 2023 —
Lewis BrisboisNew York, N.Y. (September 7, 2023) – New York Partner Anthony P. Luckie recently spoke with the Columbia University School of Professional Studies' Alumni publication regarding earning a Master of Science in Construction Administration alongside his father, as well as how the degree will benefit his law practice and clients.
As the article explains, Mr. Luckie and his father completed Columbia’s Construction Administration Program last year – only one week before the birth of Mr. Luckie’s own son. Mr. Luckie described that being accepted into the program at Columbia – a school from which “some of the most important figures in American history” have graduated – “was a really big thrill . . . .” He further explained that although he felt a sense of pride in earning the degree, the fact that he and his father shared the experience held even greater meaning for him. He noted, “[W]hile it’s an incredible achievement for both of us to graduate from an Ivy League school, for me, that day was a culmination of a father raising his son. Standing there with him onstage . . . I made sure I took time to feel grateful.”
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Lewis Brisbois
How Many New Home Starts are from Teardowns?
April 15, 2015 —
Beverley BevenFlorez-CDJ STAFFIn a NAHB/Wells Fargo Housing Market Index survey, builders were asked “Of the homes you started in 2014, approximately what share were on a site where a previous structure, or evidence of a previous structure, was present before you started?” According to the NAHB, the surveyors reported that “[o]n average, weighted by starts, […] just under five percent of their starts were teardowns according to the survey’s criterion.” When compared to census data, it equates to 31,800 single-family teardown starts in 2014.
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Construction Defect Suit Can Continue Against Plumber
June 28, 2013 —
CDJ STAFFThe Kansas Court of Appeals has reversed a district court ruling that a homeowner’s suit against a plumber was barred under the economic loss doctrine. However, subsequently the Kansas Supreme Court “refused to extend the economic loss doctrine to homeowner claims against construction contractors.” In light of this, the appeals court sent the case back to the lower court.
The case, Coker v. Siler, was brought by Gregory Coker, who had bought a home from J.M.C. Construction. JMC purchased an unfinished house from Michael D. Siler in August 2006. As part of the completion process, John M. Chaney, the president of JMC, installed the water line into the residence. Mr. Coker bought the home in September 2007.
Starting in April 2008, Mr. Coker noticed that his water bills had increased. Mr. Coker could find “no evidence of a leak above the ground,” so he contacted JMC Construction. Mr. Chaney had R.D. Johnson Excavation dig up the water line, after which a gap was discovered that had been allowing water to flow under the foundation. In addition to the higher water bills, an engineer determined that the water “resulted in cracks in the wall and uneven doors.”
Mr. Coker sued, Siler, J.M.C. and Chaney for negligence, breach of implied warranty, strict liability, and breach of express warranty. J.M.C. and Chaney requested a summary judgment. The court dismissed Mr. Coker’s claims of negligence, strict liability, and breach of implied warranty on the basis of the economic loss doctrine, rejecting a petition from Mr. Coker to reconsider. The court, however, allowed Mr. Cocker to proceed with his claim of express warranty. In December, 2011, Mr. Coker accepted an offer from J.M.C. of $40,000.
Mr. Coker then appealed the summary judgment, making the claim that while the court’s decision was based on Prendiville v. Contemporary Homes, Inc., this has now been overruled by David v. Hett. In this case, “the court ultimately found the rationale supporting the economic loss doctrine failed to justify a departure from a long time of cases in Kansas that establish a homeowner’s right to assert claims against residential contractors.” The appeals court concluded that “although the district court properly relied on the law as it existed at the time of its ruling, the intervening change in the law necessarily renders the conclusion reached by the district court erroneous as a matter of law.”
In sending this case back to the district court, the appeals court noted that the lower court will need to determine if the “defendant accused of negligence did not have a duty to act in a certain manner towards the plaintiff,” in which case “summary judgment is proper. Mr. Coker claims that Mr. Chaney did indeed have this duty.
Further, Mr. Coker claimed that Mr. Chaney had a duty arising out of implied warranty. The appeals court questioned whether the district court properly applied the economic loss doctrine to this claim, because despite being president of the construction company, Mr. Chaney “in his individual capacity as a plumber performing work for Coker, was not a party to the J.M.C. contract.” The court found that “Coker’s claim that Chaney breached an implied duty within such a contract fails as a matter of law.”
However, the court did uphold Cocker’s claim of a contractor liability for injury to a third party, noting that “Chaney owed Coker a legal duty independent of Coker’s contact with J.M.C.” The appeals court left it to the district court to determine if the defect that caused the damage was present when the house left J.M.C.’s possession.
The case was reversed and remanded “with directions to reinstate Coker’s claim of negligence against Chaney in his individual capacity as a plumber.”
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Heavy Rains Cause Flooding, Mudslides in Japan
July 31, 2023 —
Associated Press - BloombergTOKYO (AP) — Torrential rain pounded southwestern Japan, triggering floods and mudslides and leaving two people dead and at least six others missing, officials said Monday.
Rain falling in the regions of Kyushu and Chugoku since the weekend caused flooding along many rivers, triggered mudslides, closed roads, disrupted trains and cut the water supply in some areas.
The Japan Meteorological Agency issued an emergency heavy rain warning for Fukuoka and Oita prefectures on the southern main island of Kyushu, urging residents in riverside and hillside areas to take maximum caution. More than 1.7 million residents in vulnerable areas were urged to take shelter. The emergency warning was downgraded later Monday to a regular warning.
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Bloomberg
Colombia's $15 Billion Road Plan Bounces Back From Bribe Scandal
June 03, 2019 —
Oscar Medina - BloombergColombia’s $15 billion highway program has come roaring back to life as laws to protect investors help confidence recover from a massive kickback scandal that had paralyzed the sector.
Public works expanded 8.5% in the first quarter from a year earlier, a rare bright spot in an economy that has struggled to grow since oil prices crashed nearly five years ago.
Colombia ranks 102 out of 140 nations in road infrastructure quality, behind Bolivia and Sierra Leone, according to World Economic Forum’s Global Competitiveness report. Fixing that problem, which has bedeviled Colombian industry and agriculture for centuries, can boost growth for a generation, the government believes.
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Oscar Medina, Bloomberg
