Cambridge Massachusetts Building Expert Directory

Eleventh Circuit Finds Professional Services Exclusion Applies to Construction Management Activities

April 29, 2024 — Ashley Kellgren - Traub Lieberman Insurance Law Blog
In Colony Ins. Co. v. Coastal Constr. Mgmt., LLC, 2024 U.S. App. LEXIS 4809 (11th Cir. Feb. 29, 2024), the Eleventh Circuit found the insurer had no duty to defend or indemnify its insured based on a professional services exclusion. In that case, the underlying claims arose out of the construction of a four-story apartment complex. The owner and project developer contracted with the insured to provide construction management services as a construction manager and construction consultant. Several years after the project was completed, the owner filed suit against the architect, general contractor, and the insured alleging numerous defects and deficiencies with respect to the project. The owner asserted claims against the insured for breach of contract and negligence, alleging various failures by the insured in connection with its supervision of construction and failures to properly and timely complete the project, and correct inadequate, defective, and noncomplying work. Colony issued two commercial general liability policies to the insured, both of which contained a professional services exclusion. Although the policy did not expressly define “professional services,” the professional services exclusion provided a non-exhaustive list of examples, including: (2) preparing, approving, or failing to prepare or approve maps, drawings, opinions, reports, surveys, change orders, designs or specifications; Read the court decision
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Reprinted courtesy of Ashley Kellgren, Traub Lieberman
Ms. Kellgren may be contacted at akellgren@tlsslaw.com

The Unthinkable Has Happened. How Should Contractors Respond?

May 11, 2020 — Bruce Orr - AEC Business
Any construction veteran expects the economy to contract and expand. However, the global pandemic presents contractors with a challenge unlike any in recent memory. How should they respond in an environment of such uncertainty? For some perspective, I chatted with Dr. John Killingsworth, a construction management professor at Colorado State University who has conducted extensive research on how contractors can weather economic downturns. BRUCE ORR: John, let’s say you’re in IT or are a c-suite executive at a contracting firm. This event has occurred. What are some of the questions you should be asking right now? JOHN KILLINGSWORTH: For starters, we have to acknowledge that the uncertainties are so tremendous that many contractors have no choice but to be reactive in the short term. They’re literally not sure whether particular job sites will be open or closed tomorrow or whether they’ll go to work next week. They’re also looking at predictions—from highly qualified statisticians, public health officials and others—that are just all over the map due to the limited nature of the data we have at hand. Read the court decision
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Reprinted courtesy of Bruce Orr, AEC Business
Mr. Orr may be contacted at bruce@pronovos.com

Development in CBF Green Building Case in Maryland

August 19, 2015 — Christopher G. Hill – Construction Law Musings
Remember that case I discussed a while back relating to the Chesapeake Bay Foundation (CBF) building in Annapolis, Maryland? Remember how it was a lawsuit over parallams and failure of those parallams? Do you even remember what a parallam is? Well, that case was initially dismissed upon the Defendant’s Motion for Summary Judgment because the trial court determined that CBF did not file its lawsuit within the proper time frame after notice of the potential failure of the building materials. Of course, CBF appealed to the Fourth Circuit Court of Appeals under the caption The Chesapeake Bay Foundation, Inc., et. al. v. Weyerhaeuser Company (4th Circuit). After a great review of the facts of the case, the engineering inspections and reports at issue and the trial court’s ruling, the Fourth Circuit vacated the dismissal and remanded the case for further proceedings. The Court of Appeals reasoned that the district court jumped the gun in dismissing the lawsuit so early in the process because:

a genuine dispute exists as to whether knowledge of the water infiltration problem would have put a reasonable person on notice that the Parallams were susceptible to premature deterioration and that their PolyClear 2000 treatment would not preserve them.

In short, the court ruled that the engineering reports relating to moisture issues would have put CBF on notice of the particular issue of deterioration that was at issue in the litigation. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Traub Lieberman Partner Eric D. Suben and Associate Laura Puhala Win Summary Judgment in Favor of Insurer, Determining it has No Duty to Defend

September 18, 2023 — Traub Lieberman
In a declaratory judgment action brought before the United States District Court, Eastern District of New York, Traub Lieberman Partner Eric D. Suben and Associate Laura Puhala won summary judgment in favor of Plaintiff Foremost Signature Insurance Co. (“Foremost”), obtaining a declaration that it has no obligation to defend or indemnify Defendant 170 Little East Neck Road LLC (“Little East”) in an underlying state court personal injury action. In the underlying action, a self-employed financial advisor leasing a suite for her business on the second floor of the property at 170 Little East Neck Road (the “Property”), sued Little East in New York Supreme Court, Suffolk County, alleging injuries resulting from slipping on ice on a walkway near an exterior door at the Property. Reprinted courtesy of Eric D. Suben, Traub Lieberman and Laura S. Puhala, Traub Lieberman Mr. Suben may be contacted at esuben@tlsslaw.com Ms. Puhala may be contacted at lpuhala@tlsslaw.com Read the court decision
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Reprinted courtesy of Traub Lieberman

Hong Kong Popping Housing Bubbles London Can’t Handle

July 30, 2014 — Frederik Balfour – Bloomberg
Take a look at the world’s dizzying surges in the price of housing for 12 months at the end of June: London, up 20 percent. Manhattan, 18 percent. Sydney, 15.4 percent. Then there are Singapore and Hong Kong: down 3.7 percent and 0.6 percent. Prompted by concerns over potential property bubbles and affordability for the middle class, the governments of the two Asian cities have been reining in home prices by imposing measures including mortgage caps, taxes on property flippers, and levies on foreign buyers as high as 15 percent. Read the court decision
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Reprinted courtesy of Frederik Balfour, Bloomberg
Mr. Balfour may be contacted at fbalfour@bloomberg.net

Altman Contractors, Inc. v. Crum & Forster Specialty Ins. Co.

December 20, 2017 — John Chiocca - Florida Construction Law News
The Florida Supreme Court issued its opinion in Altman Contractors, Inc. v. Crum & Forster Specialty Ins. Co., Case No., SC16-1420, which answered the following certified question from the United States Court of Appeals for the Eleventh Circuit: Is the notice and repair process set forth in Chapter 558 of the Florida Statutes a “suit'” within the meaning of the CGL policies issued by C&F to ACI? Read the court decision
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Reprinted courtesy of John Chiocca, Cole Scott & Kissane P.A.
Mr. Chiocca may be contacted at john.chiocca@csklegal.com

Intentionally Set Atlanta Interstate Fire Closes Artery Until June

April 05, 2017 — Engineering News-Record
Crews from C.W. Matthews Contracting Co., Marietta, Ga., are removing debris from an Interstate 85 bridge in Atlanta that collapsed during a March 30 rush-hour fire. No injuries were reported, but the incident forced an extended closure of the highway section. Investigators say the fire was intentionally set inside a fenced Georgia Dept. of Transportation surplus equipment storage area beneath the structure, and it intensified after spreading to a stockpile of polyethylene and fiberglass conduit. Flames and high temperatures subsequently compromised the bridge’s structural integrity. Authorities have charged one individual with arson and first-degree criminal damage to property, while two others were cited for criminal trespass. Read the court decision
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Reprinted courtesy of Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com

Colorado statutory “property damage” caused by an “occurrence”

August 04, 2011 — CDCoverage.com

Colorado General Assembly House Bill 10-1394 was signed into law by the Governor on May 21, 2010, codified at Colo. Rev. Stat. § 13-20-808 (2010)

13-20-808. Insurance policies issued to construction professionals

(1) (a) The general assembly finds and determines that:

(I) The interpretation of insurance policies issued to construction professionals is of vital importance to the economic and social welfare of the citizens of Colorado and in furthering the purposes of this part 8.

(II) Insurance policies issued to construction professionals have become increasingly complex, often containing multiple, lengthy endorsements and exclusions conflicting with the reasonable expectations of the insured.

(III) The correct interpretation of coverage for damages arising out of construction defects is in the best interest of insurers, construction professionals, and property owners.

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Reprinted courtesy of CDCoverage.com

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CAMBRIDGE MASSACHUSETTS BUILDING EXPERT DIRECTORY AND CAPABILITIES