South Carolina “Your Work” Exclusion, “Get To” Costs
July 30, 2014 —
Scott Patterson - CD CoverageIn Precision Walls, Inc. v. Liberty Mutual Fire Insurance Co., No. 2013-000787 (S.C. Ct. App. July 23, 2014), SYS was the general contractor for a project. SYS contracted with Precision for the supply and installation of exterior insulation board, to include the taping of all joints. After Precision completed its work, another subcontractor began construction of the brick veneer wall over the insulation board. During construction of the brick wall, some of the joint sealing tape installed by Precision began to come loose. To correct the problem, the existing portion of the brick veneer wall had to be torn down, all of the joint sealing tape removed and replaced, and the brick veneer wall rebuilt. SYS deducted the cost of tearing down and rebuilding the brick veneer wall from Precision’s contract. Precision sought reimbursement for this amount from its CGL policy issued by Liberty Mutual.
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Scott Patterson, CD Coverage
Pipeline Safety Violations Cause of Explosion that Killed 8
April 02, 2014 —
Beverley BevenFlorez-CDJ STAFFBloomberg Business Week reported that “PG&E Corp. (PCG:US), owner of California’s largest utility, was charged with 12 pipeline safety violations by the U.S. government for a 2010 natural gas explosion that killed eight people and left a crater the size of a house.”
PG&E was charged “with knowingly and willfully violating the Natural Gas Pipeline Safety Act by failing to test and assess unstable pipelines to determine whether they could fail.”
Furthermore, “Federal investigators are studying whether a leaking gas main operated by Consolidated Edison Inc. (ED:US) contributed to an explosion in New York City last month that also claimed eight lives.”
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No Concrete Answers on Whether Construction Defects Are Occurrences
February 14, 2013 —
CDJ STAFFAaron Mandel and Stevi Raab of Sedgwick Law write Construction Defect Coverage Quarterly addressing the question of “whether defective construction constitutes an ‘occurrence’ (and therefore may be covered) under liability insurance policies.” They note that some courts have held that construction defects are not an occurrence but instead are the “natural consequence of performing substandard work.” Other courts conclude that while construction defects are not occurrences, “the resulting damage may be covered because it was fortuitous and unintended.” And, finally, other courts have concluded that “defective construction work itself is accidental and the inured rarely expects construction defects.” Mandel and Raab put forth that “these decisions essentially provide insured with huge, unintended and unfair windfalls – performance bonds for basically no premium.”
Legislatures have also looked at this issue, passing laws that mandate that construction defects are occurrences. These are all fairly recent and the courts have yet to address these laws, and Mandel and Raab note that “it is unclear what their ultimate effect on the ‘occurrence’ issue will be.” They do not expect the laws to end litigation over whether construction defects are occurrences.
Finally, they discuss what the ultimate results of these court decisions and laws will be. Insurers might write more policy exclusions, or increase premiums, or even cease insuring construction.
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Court Addresses Damages Under Homeowners Insurance Policy
January 21, 2019 —
David R. Cook, Jr. - Autry, Hall, & Cook, LLPDuring a storm, a tree landed on a homeowners house causing damage to the home’s foundation. Homeowners filed a claim on their homeowners insurance policy to recover the resulting damages. After homeowners and insurance company could not come to an agreement on value of the loss, homeowners filed a lawsuit.
Homeowners presented the testimony of a contractor as an expert witness regarding the damage and the resulting loss of value. Contractor testified that the home value was reduced in half as a direct result of the damage to the home’s foundation. Insurance company sought to exclude the contractor’s testimony, arguing he was not qualified as an expert and did not apply appropriate methodology to reach his opinions.
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David R. Cook, Jr., Autry, Hall, & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
New Highway for Olympics Cuts off Village near Sochi, Russia
February 07, 2014 —
Beverley BevenFlorez-CDJ STAFFA new highway costing $635 million was built in Sochi, Russia to support this month’s Winter Olympic Games—but the “shining” highway has cut off residents of the Village of Akhtyr, according to The Spokesman-Review. The online publication reports that while the Olympics will showcase the “luxury malls, sleek stadiums and high-speed train links, thousands of ordinary people in the Sochi area put up with squalor and environmental waste: villagers living next to an illegal dump filled with Olympic construction waste, families whose homes are sinking into the earth, city dwellers suffering chronic power cuts despite promises to improve electricity.”
One of the Sochi residents told KPAX News that what was once a “15-minute walk to get the bus to work has become a two-hour, cross-country trek. Military guards block their way to the rickety footbridge they used to use.” Furthermore, KPAX News claimed, “Heavy construction and traffic have chewed up the road through town and turned it into a dust bowl.”
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ACEC Statement on Negotiated Bipartisan Debt Limit Compromise
June 05, 2023 —
The American Council of Engineering CompaniesWashington, D.C. – The American Council of Engineering Companies (ACEC) released the following statement applauding the negotiated bipartisan compromise to raise the debt limit ahead of the scheduled House vote tonight:
"The American Council of Engineering Companies (ACEC) applauds President Biden and Speaker McCarthy for negotiating a bipartisan compromise to raise the debt limit and avoid a catastrophic default. We are particularly pleased that the bipartisan deal protects the critical funds provided under the Infrastructure Investment and Jobs Act (IIJA) and does not include any changes to the Inflation Reduction Act's (IRA) climate and clean energy provisions, which the engineering industry is working hard to deliver successfully. ACEC also strongly supports the provisions in the deal to reform the federal permitting process. These commonsense measures to modernize the National Environmental Policy Act (NEPA), particularly through the use of digital technologies, will improve interagency collaboration and allow engineering firms to help their clients deliver project benefits more efficiently while ensuring strong environmental protections and opportunities for community and stakeholder engagement."
The American Council of Engineering Companies (ACEC) is the business association of the nation's engineering industry. Founded in 1909, ACEC is a national federation of 51 state and regional organizations representing more than 5,500 engineering firms and 600,000+ engineers, surveyors, architects, and other specialists nationwide. ACEC member firms drive the design of America's infrastructure and the built environment.
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Structural Defects Lead Schools to Close off Areas
February 12, 2013 —
CDJ STAFFTwo Virginia schools have closed off parts of their buildings after inspections discovered that walls were bowing outward due to structural defects. The inspectors determined that other portions of the Pulaski and Dublin middle schools were safe for occupancy. The school board is currently consulting with engineers to determine how best to stabilize the walls. A press release from the schools notes that the unstable wall at the Dublin Middle School is in the gym area, while at the Pulaski Middle School both the gym and auditorium are affected.
As a precaution, the gyms at both schools, the Pulaski auditorium, and the spaces beneath have been closed off. Officials in the schools state that while they are seeking to repair the situation quickly, “we must operate under the assumption that repairs will not be complete by the end of this school year.”
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Boston-area Asbestos-Abatement Firms Face Wage and Safety Complaints
January 26, 2017 —
Justin Rice - Engineering News-RecordSeveral federal and state complaints against asbestos-abatement and demolition firms operating in Massachusetts have sprouted in the wake of the region’s construction boom. Involving mostly small companies and immigrant workers, the cases allege wage and benefit violations as well as improper exposure to asbestos fibers, which contain cancer-causing carcinogens.
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Justin Rice, ENRMr. Rice may be contacted at
ricej@enr.com