Summary Judgment for Insurer Reversed Based on Expert Opinion
May 30, 2022 —
Tred R. Eyerly - Insurance Law HawaiiAfter the trial court discounted the insured's expert witness and granted summary judgment to the insurer, the Florida District Court of Appeal reversed. Morales v. Citizens Prop. Ins. Corp., 2022 Fla. App. LEXIS 1831 (Fla. Ct. App. March 15, 2022).
The insureds' property was allegedly damaged by Hurricane Irma in 2017. They filed a claim with Citizens. Citizens sent its adjuster and eventually denied the claim because the policy did not cover damages caused by wear and tear. Further, there was no coverage for loss caused by "rain . . . unless a covered peril first damages the building causing an opening in a roof or wall and the rain . . . enters through this opening."
The insureds sued and Citizens moved for summary judgment. At the hearing, Citizens' expert, a civil engineer, concluded that there were no storm-created openings in the roof. The insureds engaged a licensed contractor, Steven Delgado, who stated that he found significant damage to the roofing system and water intrusion through the roof. He observed loose shingles which were most likely damaged during Hurricane Irma, allowing for high winds and airborne debris to create small openings permitting water intrusion.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
When it Comes to Trials, it’s Like a Box of Chocolates. Sometimes You Get the Icky Cream Filled One
October 14, 2019 —
Garret Murai - California Construction Law BlogAccording to the California Judicial Council you have about a one in three chance your case will go to trial. In 2018, of the 210,028 unlimited civil cases that were filed (i.e., cases with an amount at issue of more than $25,000) only 33 percent made it all the way to trial. The odds are even less if you’re involved in a limited civil case (i.e., cases with an amount at issue of less than $25,000) where only 15 percent make it all the way to trial.
The reason: Lawyers are expensive. The other reason: Trials are risky. As well prepared as your counsel may be for trial, when it comes to trials, like boxes of chocolates, “Ya never know what you’re gonna get.” And sometimes you really, really don’t know what you’re going to get.
I had a client involved in a trial once. The defendant’s representative at trial was a well-to-do young man and heir to a hotel fortune. He was young, athletic and had a confident, carefree way about himself that reminded me of “Dickie” Greenleaf from the Talented Mr. Ripley. And I wasn’t the only one who noticed.
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Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Property Damage to Insured's Own Work is Not Covered
May 27, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe Michigan Court of Appeals found there was no coverage for a lawsuit filed against the insureds for faulty workmanship. Skanska United States Bldg. v M.A.P. Mech. Contrs., 2019 Mich App. LEXIS 529 (Mich. Ct. App. March 19, 2019).
Contractor Skanska United States Building was the construction manager on a renovation project for the medical center. The heating and cooling portion of the project was subcontracted to M.A.P. Mechanical Contractors (MAP). MAP had a CGL policy from Amerisure Insurance Company. Skanska and the medical center were named as additional insureds on the policy.
After installation of the steam boiler and related piping, it was discovered that the heating system did not function property. Skanska discovered that MAP had installed some of the expansion joints backward, causing damage to concrete, steel, and heating system. The medical center sent a demand to MAP. Skanska performed the repairs and replaced the damaged property. Skanska then submitted a claim to Amerisure, which was denied.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Contractors Admit Involvement in Kickbacks
December 09, 2011 —
CDJ STAFFTwo New Jersey contractors have pleaded guilty to charges that they made false representations for a government contract in a case related to kickbacks for construction work done in two school districts. New Jersey is recommending that the two men, Martin Starr and Stephen Gallagher, will each pay $50,000 in penalties, serve up to a year in jail, and be unable to accept public contracts for five years.
Last month, another individual in the case, Kenneth Disko, who had been the engineer for the school district, pleaded guilty on a similar charge. In addition to a $50,000 penalty, he will be serving three to five years in prison. A fourth conspirator, Robert Berman, the former business administrator for one of the school districts, has to pay a $13,000 fine and cooperate with the investigation. He is also barred from public employment in New Jersey and has been terminated from his position.
Starr admitted to preparing fictitious quotes which appeared to be from other contractors in order that his firm would seem to be the lowest bidder. Gallagher helped in preparing the fictitious bids and also provided cash kickbacks to Disko.
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Don’t Sign a Contract that Doesn’t Address Covid-19 (Or Pandemics and Epidemics)
December 14, 2020 —
David Adelstein - Florida Construction Legal UpdatesDo yourself a favor: Don’t sign a construction contract that doesn’t address COVID-19 or any pandemic or epidemic from this point forward!
As the number of COVID-19 numbers rise, it would be reasonable to think this could have an impact on ongoing or future construction projects. For this reason, I want to revisit the subject of addressing COVID-19 (and any pandemic or epidemic) in your construction contract.
The potential impact caused by COVID-19 could result from governmental regulations that impact construction of the project, shutdowns due to affected workers, owners’ decisions to suspend performance or adjust the way the project is being constructed, increased deep cleaning requirements, and increased measures associated with social distancing and re-sequencing of shifts. This all plays into the timeliness of performance and the productivity of manpower and equipment usage. When submitting a price, a lot of these considerations may not be factored in because doing so could lead to a price that will never get accepted.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Mortar Insufficient to Insure Summary Judgment in Construction Defect Case
January 06, 2012 —
CDJ STAFFThe US District Court of Nevada issued a summary judgment in the case of R&O Construction Company V. Rox Pro International Group, Ltd. on December 19, 2011. The case involved the installation of stone veneer at a Home Depot location (Home Depot was not involved in the case). R&O’s subcontractor, New Creation Masonry, purchased the stone veneer from Arizona Stone. Judge Larry Hicks noted that “the stone veneer failed and R&O was forced to make substantial structural repairs to the Home Depot store.”
Rox Pro asked the court for a summary judgment, which the court granted only in part. The court looked at two issues in the case, whether the installation instructions constituted a breach of implied warranty of merchantability, and whether there was a breach of an implied warranty of fitness for a particular purpose.
Judge Hicks found that there was a breach of implied warranty of merchantability. The instructions drafted by Real Stone and distributed by Arizona Stone were not sufficient for affixing the supplied stones, according to R&O’s expert, a claim the plaintiffs dispute. “Because there is an issue of material fact concerning the installation guidelines, the court shall deny Arizona Stone’s motion for a summary judgment on this issue.”
On the other hand, the judge did not find that the instructions had any bearing as to whether R&O bought the stone, since the stone was selected by the shopping center developer. This issue was, in the view of the judge, appropriately dismissed.
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Loan Snarl Punishes Spain Builder Backed by Soros, Gates
July 30, 2014 —
Katie Linsell, Manuel Baigorri and Ruth David – BloombergPressure is mounting on Esther Koplowitz to refinance personal loans before a deadline tomorrow and allow a Spanish builder that counts Bill Gates and George Soros among investors to resolve its own debt tangle.
Koplowitz is renegotiating about 1 billion euros ($1.8 billion) of debt tied to her controlling stake in Fomento de Construcciones & Contratas SA, according to two people familiar with the matter, who asked not to be identified because it’s private. Her determination to retain control means that she is unlikely to approve any plan by FCC to raise equity until she refinances her own debt, the people said.
Ms. Linsell may be contacted at klinsell@bloomberg.net; Mr. Baigorri may be contacted at mbaigorri@bloomberg.net; Ms. David may be contacted at rdavid9@bloomberg.net
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Katie Linsell, Manuel Baigorri and Ruth David, Bloomberg
Best Practices in Construction– What are Yours?
November 26, 2014 —
Craig Martin – Construction Contractor AdvisorThe latest Engineering News Record had an interesting article on
Best Practices in Construction written by Deron Cowan of Zurich Services Corporation. In the articles, Mr. Cowan emphasizes the importance of best practices and the methodology to develop them.
As Mr. Cowan notes, best practices are intended to eliminate, reduce and manage risks and all construction companies should be fully engaged in correctly executing and accomplishing risk analysis to meet the demands of their practices.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com