The Evolution of Construction Defect Trends at West Coast Casualty Seminar
May 03, 2018 —
Don MacGregor - Bert L. Howe & Associates, Inc.Twenty-five years ago. 1993. On January 23rd, Bill Clinton was sworn in as the 42nd President of the United States. The average cost of a gallon of gasoline was $1.16, a movie ticket cost $4.00, and the average cost of a new home was $113,200.00.
1993 also marked the first of what would be a quarter century of annual seminars hosted by West Coast Casualty Service, and provided to the combined professionals within the construction defect community. As the seminar has grown both in attendance and prominence within this community under the watchful stewardship of David and Coral Stern, much has changed both with regard to the content of the seminar and the climate within which it was presented. A quick look at the topics addressed over the past 25 years of the Construction Defect Seminar provides one with a veritable history of construction defect litigation and insurance coverage trends across the United States and beyond.
While the first seminar was hosted in 1993, my first attendance didn’t occur until 1999, and the first time I was honored to be a panelist would have to wait until 2007. In the subsequent years, I’ve had the opportunity to sit on panels an additional three times, and each one I gained rare and valuable insights into the construction defect community, its willingness to challenge itself, and the amazing professionals we all have the distinct pleasure of working with every day (and whom we sometimes take too much for granted).
In the mid to late 90’s, topics at the seminar included such subjects as the Montrose Chemical Corp v. Superior Court decision (Montrose) regarding a carrier’s duty to defend and the subsequent Stonewall Insurance case that examined the duty to indemnify in the context of construction defect claims. The California Calderon Act of 1997, laying out the roadmap for HOA’s filing construction defect lawsuits was also a topic of discussion and debate within the West Coast “arena.”
The new millennium saw the landmark Aas v. William Lyon decision, which disallowed negligence claims for construction defects in the absence of actual resultant damage. This was followed by Presley Homes v. American States Insurance wherein the court ruled that a duty to defend applies where there is mere potential for coverage and the duty to defend applies to the entire action. Each of these bellwether decisions was addressed contemporaneously by panels at the West Coast seminar, contemporaneously bringing additional dialog to the CD community, from within the community.
2002 brought what has become the defining legislation in California regarding construction defect litigation and a builder’s right to repair. Senate Bill 800 (SB800), and its subsequent codification as Title 7, Part 2 of Division 2 of the California Civil Code, Sections 895 through 945.5 would become the defining framework for similar legislation across the United States. During the course of its drafting, movement through the legislature, and final adoption in January of 1993, many of the questions raised and debated in committees in Sacramento, had already been and were continuing to be addressed by panelists at the West Coast Seminar. How does SB800 work with Calderon? How does it affect the prior Aas decision? What now constitutes a defect, and what are timeframes established within the complex pre-litigation process? Open the pages of the 2002 – 2004 seminar invitations and you’ll see panels comprised of the finest members of the insurance law and coverage communities addressing those very questions (and more)!
As the first decade of the new century drew to a close, a brief review of the WCC invitations from that period suggests a trend towards programmatic analyses of key themes selected for the seminar. In 2008, my second opportunity as a guest speaker, topics included a review of the state of construction defect litigation in a post-SB 800 environment. Panelists offered retrospective insight into the state of right to repair statutes in multiple states, while others offered a glimpse at where the industry might be headed, as similar legislation was enacted across the country. As always, pertinent court decisions bearing on construction defect, both in California, and elsewhere were given unique perspective and additional clarity by multiple panels of gifted speakers. In 2009, claims and coverage were examined from multiple unique perspectives, including that of plaintiff, the policyholder, and the insurer. Wrap policies and the gaps in due to self-insured retention obligations were examined.
As we rapidly approach the end of the second decade of the 21st Century, West Coast Casualty’s Construction Defect Seminar continues to lead the construction defect community as the premier source for information and peer dialog on all matters relating to construction law, coverage, and emerging trends. In 2017, the Seminar tackled such broad subjects as the role of women in the construction industry, claims management, and risk management, challenges raised by wrap versus non-wrap litigation, and the emergent trend of apartment to condo conversions (and the attendant coverage challenges).
This month, beginning on May 16th at the Disneyland Resort, in Anaheim California, America’s largest Construction Defect event kicks off its 25th Anniversary celebration. As has been every year since 1993, the seminar invitation promises insurance, legal, and industry professionals an exciting and informative array of salient and timely panel topics, as well as a stellar faculty of gifted panelists. If this year’s seminar is anything like the past 25 years, this edition of West Coast Casualty’s Construction Defect Seminar will not only be informative and educational, but also a promise for another 25 years of peerless service to the construction defect community.
Read the court decisionRead the full story...Reprinted courtesy of
Create a Culture of Safety to Improve Labor Recruitment Efforts
September 12, 2022 —
Grant Robbins - Construction ExecutiveThe commercial construction industry must rely on skilled labor to survive. Skilled labor, however, is hard to come by. In fact, many construction firms report projects being delayed because of shortages in the workforce.
Part of the problem is training. Few companies have the time, resources or opportunities to train new construction workers. But the biggest reason for the labor shortage in the construction industry is simply a lack of people joining the trades. Decades ago, construction was a respected career choice. Over the years, however, the pressure to get into a four-year college has created negative perceptions of working in the trades.
Some commercial construction companies choose to work with fewer crews as a result of the lack of skilled labor, therefore limiting the number of jobs they can handle. The labor shortage in the construction industry has simply made it nearly impossible to find subcontractors to adequately staff upcoming projects (one survey found that 35% of contractors had to turn down jobs due to a lack of skilled laborers). This then leads to hikes in construction costs and delays in scheduling, which can take a major toll on business.
Reprinted courtesy of
Grant Robbins, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Vacant Property and the Right of Redemption in Pennsylvania
April 06, 2016 —
Suzanne Prybella – White and Williams LLPIn Pennsylvania, pursuant to the Municipal Claims and Tax Liens Act (53 P.S. §7293(a)) (the Act), the owner of a property sold under a tax or municipal claim may redeem the sold property at any time within nine months after the date of acknowledgment of the sheriff's deed by, in general, paying the amount of the debt. However, there is a caveat contained in the Act with respect to vacant property, which states that “there shall be no redemption of vacant property by any person after the date of the acknowledgment of the sheriff's deed.” (53 P.S. §7293(c)). In Brentwood Borough School District v. HSBC Bank USA, N.A., 111 A.3d 807 (Pa. Commw. Ct. 2015), a case of first impression before the Commonwealth Court of Pennsylvania, the court addressed the definition of “vacant property” under the Act and the timing of a petitioner to invoke the right of redemption with respect to vacant property.
Read the court decisionRead the full story...Reprinted courtesy of
Suzanne Prybella, White and Williams LLPMs. Prybella may be contacted at
prybellas@whiteandwilliams.com
Bertha – The Tunnel is Finished, but Her Legacy Continues
September 28, 2017 —
John P. Ahlers - Ahlers & Cressman PLLCThe Tunnel Boring Machine (“TBM”) known as “Bertha,” built by Hitachi Zosen Corp in Osaka, Japan, was the world’s largest TBM at 57.5 ft. in diameter. The TBM was built to drill the Seattle SR 99 Viaduct replacement tunnel. Seattle Tunnel Partners (“STP”) has a contract with the Washington State Department of Transportation (WSDOT) to dig the two-mile tunnel which is now complete.
In December of 2013, tunneling was stopped ostensibly because a 119 ft.-long, eight-inch diameter steel well casing halted the TBM. See 2/15 Blog “Bertha is Stuck and She Remains Mired in Controversy.” Reports are that WSDOT installed the pipe in 2002 to measure groundwater levels and the pipe was allegedly mentioned in the reference material provided to bidders. STP had assumed that the pipe had been removed until the steel casing got stuck in Bertha’s cutting teeth, halting progress. See 1/30/14 Blog “Big Bertha Stuck: Differing Site Condition Principles Revisited.” STP had a design-build contract with WSDOT. The contract contains a Differing Site Conditions (“DSC”) clause pursuant to which if the contractor can prove that the eight-inch pipe was an unforeseen condition (not disclosed in the contract documents), and that the unforeseen condition caused the TBM’s failure, STP is entitled to an equitable adjustment of its contract.
Read the court decisionRead the full story...Reprinted courtesy of
John P. Ahlers, Ahlers & Cressman PLLCMr. Ahlers may be contacted at
jahlers@ac-lawyers.com
Construction and AI: What Contractors Need to Know from ABC’s New Report
November 05, 2024 —
Aarni Heiskanen - AEC BusinessThe Associated Builders and Contractors (ABC) has just released its fourth annual construction
technology report, which dives deep into AI’s evolving role in the construction industry.
“ABC contractor members and the overall contracting community want more information on AI and how it can help them improve safety, quality and profitability—and win more work,” said Matt Abeles, ABC vice president of construction technology and innovation. The newly released ABC AI Tech Report delivers on this need, highlighting AI-driven case studies, resources, and thought leadership from ABC’s Tech Alliance.
Understanding AI’s Role in Construction
The report provides a comprehensive AI Resource Guide, breaking down the basics of artificial intelligence and how it applies to construction. Understanding AI is key for contractors to stay competitive in the rapidly changing industry.
Read the court decisionRead the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Compliance with Building Code Included in Property Damage
February 07, 2018 —
Tred R. Eyerly – Insurance Law HawaiiA Circuit Court in Florida issued a final judgment determining that the insured's obligation to comply with building code provisions was included in the property damage experienced. Pin-Pon Corp. v. Landmark, Am. Ins. Co., No. 312009CA012244 (Fla. Cir. Ct. Dec. 28, 2017). The decision is here.
At trial, the plaintiff's architect testified that the total pricing for the code upgrades was $6.2 million. On appeal, the appellate court ruled that plaintiff's Exhibit 98, an Upgrade Insurance Claim, was improperly admitted as a business record. The appellate court stated that the jury may have considered Exhibit 98 in determining the amount of code upgrade damages. Therefore, the verdict was reversed and remanded for a trial on the code upgrade damages only.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Insurance Law HawariiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Traub Lieberman Attorneys Recognized as 2022 Illinois Super Lawyers® and Rising Stars
February 21, 2022 —
Traub LiebermanTraub Lieberman is pleased to announce that two Partners from the Chicago, IL office have been selected to the 2022 Illinois Super Lawyers list. In addition, three Partners have been named to the 2022 Super Lawyers Rising Stars list.
2022 Illinois Super Lawyers
2022 Super Lawyers Rising Stars
Read the court decisionRead the full story...Reprinted courtesy of
Traub Lieberman
Vacation during a Project? Time for your Construction Documents to Shine!
October 09, 2023 —
Melissa Dewey Brumback - Construction Law in North CarolinaHappy Lazy Day Everyone! What’s that? You didn’t know that August 10th is considered National Lazy Day? Well, it is. And it ties nicely in with today’s theme: how to take a vacation during the thick of the construction project.
Everyone needs a break. You are no different. It can seem, however, that it is impossible to disconnect from the ongoing onslaught of questions, requests for information, change orders, pay applications, and the like. But you can. The key to taking–and enjoying–your vacation is to plan ahead. This is the time for your construction documents to shine. Make sure that your designs are on schedule; make sure that the change orders and RFIs have been processed so there is no backlog. And make sure that your second in command is familiar enough with the day to day details to step into your shoes for the duration.
Then– be sure to give everyone notice. Is it any of their business that you are taking some time off? No. However, everyone procrastinates. So, if you give the entire team advance notice that you will be “off grid” starting on X date, they will be more inclined to get pending issues to you sooner rather than later. They won’t want to be stalled on progress, and with a heads up on when you are out of pocket, they will make it a priority to get requests to you ahead of your departure date.
Read the court decisionRead the full story...Reprinted courtesy of
Melissa Dewey Brumback, Ragsdale LiggettMs. Brumback may be contacted at
mbrumback@rl-law.com
