Cambridge Massachusetts Building Expert Directory

Maximizing Contractual Indemnity Rights: Components of an Effective Provision

December 02, 2015 — William Kennedy – White and Williams LLP
Tort law is aimed at providing compensation to the victims of negligence. Tort law encourages plaintiffs to cast a wide net, pursuing claims or suits against not only those whose fault seems manifestly primary, but also against defendants whose causal exposure is minimal, against those whose exposure is purely by operation of law. As discussed in the first installment of this series, "Maximizing Contractual Indemnity: Problems with Common Law," three common law principles – vicarious liability, joint and several liability, and common law indemnity – cause some parties to pay in excess of their actual degree of causal fault. Contractual indemnity can remedy that harsh result. Part Two: Components of an Effective Provision Properly composed, “broad form” contractual indemnity provisions permit an Indemnitee to shift the full range of financial consequences from tort exposure, including civil damages, defense fees, expert fees, and litigation expenses. Such contracts permit indemnity even where the underlying damage was incurred due to a degree of negligence or fault on the part of the Indemnitee. Such contracts can also allow an Indemnitee to shift to the Indemnitor the risk of loss for someone from whom the Indemnitor would otherwise be immune from suit (e.g., the Indemnitor’s employees). A well-written contract can even convert an entity which is an Indemnitor as to one party (e.g., a general contractor which has to indemnify a property owner) into an Indemnitee as to another party (e.g., a subcontractor) for the very same risk. Read the court decision
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Reprinted courtesy of William Kennedy, White and Williams LLP
Mr. Kennedy may be contacted at kennedyw@whiteandwilliams.com

Construction Defect Litigation in Nevada Called "Out of Control"

February 04, 2013 — CDJ STAFF
KXNT Las Vegas's Trevor Smith reports that Las Vegas alone has more than 500 pending construction defect cases. The issue of construction defects in Nevada will be taken up by the Nevada Legislature. Smith spoke with Mike Dillon, the executive director of the Builders Association of Northern Nevada. BANN is supporting legislation that Dillon says will "protect homeowners and secondly it's going to put people back to work." Dillon noted that "construction is the second largest industry in the state." Dillon attributed some of the construction defect litigation to the state's building codes. Read the court decision
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New York Appellate Court Holds Insurers May Suffer Consequences of Delayed Payment of Energy Company Property and Business Interruption Claims

March 16, 2020 — Syed S. Ahmad & Geoffrey B. Fehling - Hunton Andrews Kurth
A New York appellate court recently held that renewable bio-diesel fuel manufacturer BioEnergy Development Group LLC may pursue tens of millions of dollars in damages from its insurers under two all-risk insurance policies, including amounts in excess of the policy limits, where the insurers refused to pay claims in a timely manner. BioEnergy purchased two all-risk property policies from Lloyd’s to provide coverage for its manufacturing plant in Memphis, Tennessee. A fire destroyed the Memphis plant in March 2016, eliminating BioEnergy’s production capacity and sole source of revenue. BioEnergy made claims under the policies and sought to rebuild its plant. The insurers acknowledged coverage and eventually made approximately $8 million in interim payments, but the parties disagreed over the value of the total property damage claim, which BioEnergy contended was in excess of $24 million. The disputed claim was submitted to appraisal, which resulted in the insurers agreeing to pay the full business interruption limit of $15.1 million. The insurers filed a declaratory judgment lawsuit, however, seeking to limit BioEnergy’s recovery to the policy limits of $15.1 million. BioEnergy alleged that the insurers failed to make interim payments in a timely manner after the fire and, as a result, the company suffered increased losses because it could not rebuild without the insurance proceeds. BioEnergy sought actual and consequential damages, plus attorneys’ fees, arising from the delayed payments, including payment of its business interruption losses in excess of the policy limits. Reprinted courtesy of Syed S. Ahmad, Hunton Andrews Kurth and Geoffrey B. Fehling, Hunton Andrews Kurth Mr. Ahmad may be contacted at sahmad@HuntonAK.com Mr. Fehling may be contacted at gfehling@HuntonAK.com Read the court decision
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The Status of OSHA’s Impending Heat Stress Standard

May 30, 2022 — Stephen E. Irving - ConsensusDocs
There has been much talk in the last several months about OSHA’s intent to establish a national standard to prevent heat-related injury and illness. OSHA’s Region VI, covering the states of Texas, Louisiana, Arkansas, Oklahoma, and New Mexico[1], has had a regional emphasis program dealing with the hazards of heat stress for more than two decades, and much of the talk about a new national standard suggests modeling some aspects of the standard after the Region VI program. Region VI’s long-standing program emphasizes water, rest, and shade; acclimatization; and responding to medical emergencies. In October 2021, OSHA issued its advance notice of proposed rulemaking (ANPRM) for Heat Injury and Prevention. The ANPRM rulemaking established a new Heat Injury and Illness Prevention Work Group within the National Advisory Committee on Occupational Safety and Health (NACOSH.) Read the court decision
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Reprinted courtesy of Stephen E. Irving, Peckar & Abramson
Mr. Irving may be contacted at sirving@pecklaw.com

Dreyer v. Am. Natl. Prop. & Cas. Co. Or: Do Not Enter into Nunn-Agreements for Injuries that Occurred After Expiration of the Subject Insurance Policy

January 20, 2020 — Jean Meyer - Colorado Construction Litigation
While Nunn-Agreements[1] may be appealing for both plaintiffs and defendants where an insurer unreasonably fails to defend a lawsuit, a recent opinion from The Honorable Marcia Krieger in the United States District Court of Colorado[2] (“Opinion”) demonstrates the importance of first confirming that there exists a viable insurance claim before proceeding with such a Nunn- Agreement. The facts giving rise to the Opinion were as follows. In March 2015, a Homeowner couple (the “Homeowners”) suffered damages to their home resulting from a brushfire. Fortunately, the Homeowners were insured, they submitted their claim to their homeowners’ insurance carrier which was in effect at the time of the brushfire (the “Insurance Carrier”), and the Insurance Carrier paid the claim. Ostensibly as part of the Homeowners’ remediation efforts to their home they removed a large bush which left a hole in the ground. After paying the claim, in August 2015 the Insurance Carrier cancelled or elected not to renew the Homeowners’ policy. In October 2015, a repairman working on the Home (the “Repairman”) was injured after his ladder fell over allegedly because of the hole in the ground caused by the bush that had been removed. As a result of injuries caused by the fall from the ladder, the Repairman brought suit against the Homeowners. In response to the Repairman’s claim, the Homeowners again tendered to their Insurance Carrier. This time, however, the Insurance Carrier denied coverage on the basis that the Repairman’s injuries occurred after the expiration of the relevant policy. Without insurance coverage, the Homeowner’s entered into a Nunn-Agreement with the Repairman, conceding liability, and assigning any claims they might have had against the Insurance Carrier in lieu of execution of any judgment against the Homeowners. Read the court decision
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Reprinted courtesy of Jean Meyer, Higgins, Hopkins, McLain & Roswell, LLC
Mr. Meyer may be contacted at meyer@hhmrlaw.com

Trumark Homes Hired James Furey as VP of Land Acquisition

April 08, 2014 — Beverley BevenFlorez-CDJ STAFF
According to GlobeSt.com, “Homebuilder Trumark Homes has hired James Furey as VP of land acquisition.” The “veteran developer” has held positions at Meritage Homes, Richmond American Homes, and Beazer Homes USA. “James is a versatile manager who brings a wealth of experience in many elements of the homebuilding process,” Jason Kliewer, partner and general counsel for Trumark, told GlobeSt.com. “He will be an invaluable asset as Trumark moves aggressively in the California market.” Read the court decision
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Your Contract is a Hodgepodge of Conflicting Proposals

January 06, 2016 — Craig Martin – Construction Contractor Advisor
Ouch. That’s what a court called a contract to remediate petroleum contamination at a number of gas stations in New York. Sometimes, it’s hard to believe the contracts that get signed. Environmental Risk hired Science Applications to remediate petroleum contamination at 47 gas stations. Environmental Risk had previously entered into a Professional Services Master Agreement with Science Applications, but also required Science Applications to sign three separate, but basically identical, subcontracts called the Project Specific Scopes of Work. So, right from the start, there were four contracts that could apply to Science Applications’ work. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

Construction Law Alert: Appellate Court Rules General Contractors Can Contractually Subordinate Mechanics Lien Rights

November 26, 2014 — Steven M. Cvitanovic, Jessica M. Lassere Ryland, & Colin T. Murphy - Haight Brown & Bonesteel LLP
In Moorefield Construction, Inc. v. Intervest-Mortgage Investment Co., 230 Cal. App. 4th 146 (4th Dist. 2014), a California appellate court upheld an agreement executed by a general contractor which subordinated its mechanic’s lien to a construction lender’s deed of trust. In 2006, developer DBN Parkside LLC ("DBN") purchased land in San Jacinto, California (the "property") to build a medical complex (the "project"). DBN hired Moorefield Construction, Inc. (“Moorefield”) to act as general contractor and sought funding for the project from Intervest-Mortgage Investment Company (“Intervest”). Prior to the recordation of the construction loan, and unbeknownst to Intervest, Moorefield cleared and grubbed the project site. Pursuant to the construction loan agreement, Intervest required DBN to assign its rights and remedies under the construction contract to Intervest. Under its construction contract, Moorefield agreed to subordinate its lien rights to the construction loan. Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys Steven M. Cvitanovic, Jessica M. Lassere Ryland and Colin T. Murphy Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Ms. Lassere Ryland may be contacted at jlassere@hbblaw.com; and Mr. Murphy may be contacted at cmurphy@hbblaw.com Read the court decision
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