California Committee Hosts a Hearing on Deadly Berkeley Balcony Collapse
April 28, 2016 —
Beverley BevenFlorez-CDJ STAFFAccording to Mercury News, state Senators Jerry Hill and Loni Hancock scheduled the hearing in Sacramento with state and local agencies to discuss their response to the Berkeley, California balcony collapse incident that killed three people and severely injured seven others.
The agencies also testified regarding “best practices and disclosure requirements for licenses.” Hill and Hancock are the sponsors of Senate Bill 465 that “would require companies to report certain settlements to the Contractors State License Board, and in some cases to the public.”
Investigators of the Berkeley balcony incident alleged “that crews applied waterproofing to wet wood during construction. Water was trapped inside, which led to severe dry rot and the catastrophic collapse,” reported Mercury News.
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Consulting Firm Indicted and Charged with Falsifying Concrete Reports
August 17, 2011 —
CDJ STAFFThe New York Times reports that a company paid to inspect concrete at major public works projects in New York has been charged with falsifying results. They had been hired by the city three years ago after their predecessor was found to have falsified results.
According to the Times, investigators found nothing legitimate in nearly three thousand reports. The owner and five employees of American Standard Testing and Consulting Laboratories have been indicted on twenty-nine counts, including charges under New York’s racketeering law. Prison terms could be up to twenty-five years.
Prior to the city’s contract with American Standard, the city employed a firm called Testwell. Testwell was found in 2008 to have falsified its test results.
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Deadline Nears for “Green Performance Bond” Implementation
December 03, 2024 —
Christopher G. Hill - Construction Law MusingsFor this weeks Guest Post Friday at Musings, we welcome Surety Bonds.com, a leading online surety provider. SuretyBonds.com specializes in educating current and prospective business owners about local surety requirements. To keep up with surety bond trends, follow and Surety Bonds Insider blog and @suretybond on Twitter.
Professionals who work in the construction industry know the laws that regulate the market change constantly. Unfortunately, even government agencies are flawed, which means they sometimes establish nonsensical, arbitrary regulations that leave construction professionals even more confused as to how they’re expected to do their jobs.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
New Plan Submitted for Explosive Demolition of Old Tappan Zee Bridge
December 19, 2018 —
Eydie Cubarrubia - Engineering News-RecordWorker safety concerns sparked a new plan on how to demolish the remnants of the old Tappan Zee Bridge in New York.
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Eydie Cubarrubia, ENRMs. Cubarrubia may be contacted at
cubarrubiae@enr.com
Massachusetts District Court Holds Contractors Are Not Additional Insureds on Developer’s Builder’s Risk Policy
August 31, 2020 —
Gus Sara - The Subrogation StrategistIn Factory Mut. Ins. Co. v. Skanska United States Bldg., No. 18-cv-11700-DLC, 2020 U.S. Dist. LEXIS 95403 (Skanska), the United States District Court for the District of Massachusetts considered whether contractors on a construction job were additional insureds on the developer’s builder’s risk insurance policy. After a water loss occurred during construction, the builder’s risk insurance carrier paid its named insured for the resultant damage, and subsequently filed a subrogation action against two contractors. The defendants filed a motion for summary judgment, claiming that the anti-subrogation rule barred the carrier from subrogating against them because they were additional insureds on the policy. The court found that based on the particular language of the additional insured provision in the policy, the defendants were not additional insureds for purposes of the subrogation action.
Skanska arose from property damage that occurred during a construction project where Novartis Corporation (Novartis) endeavored to construct a biomedical research building in Cambridge, Massachusetts and retained Skanska USA Building, Inc. (Skanska) as the general contractor. In turn, Skanksa hired J.C. Cannistraro, LLC (JCC) as a subcontractor. Novartis secured a builder’s risk insurance policy from Factory Mutual Insurance Company (Factory Mutual). The policy defined “Insured” as Novartis and its subsidiaries, partnerships and joint ventures that it controlled or owned. The policy included another provision, titled “Property Damage,” which stated that the policy “insures the interest of contractors and subcontractors in insured property… to the extent of the Insured’s legal liability for insured physical loss or damage to such property.”
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
Toxic Drywall Not Covered Under Homeowner’s Policy
March 28, 2012 —
CDJ STAFFThe Duphuys of Baton Rouge Louisiana found themselves needing to argue both sides of an issue, according to the judge in Duphuy v. USAA Casualty Insurance Company. The Duphuys alleged that the drywall in their home “emits odorous gases that cause damage to air-condition and refrigerator coils, copper tubing, electrical wiring, computer wiring, and other household items.” Additionally, they reported damage to “their home’s insulation, trimwork, floors, cabinets, carpets, and other items” which they maintained were “covered under the ‘ensuing loss’ portion of their policy.”
Their insurer declined coverage, stating that the damages were not a “direct, physical loss,” and even if they were “four different exclusions independently exclude coverage, even if such loss occurred.” The policy excludes defective building materials, latent defects, pollutants, and corrosion damage. The court noted that “ambiguities in policy exclusions are construed to afford coverage to the insured.”
The court did determine that the Duphuys were not in “a situation where the plaintiffs caused the risk for which they now seek coverage.” The judge cited an earlier case, In re Chinese Drywall, “a case with substantially similar facts and construing the same policy” and in that case, “property damage” was determined to “include the loss of use of tangible property.” The court’s conclusion was that the Duphuys “suffered a direct, physical loss triggering coverage under their policy.”
Unfortunately for the Duphuys, at this point the judge noted that while they had a “direct, physical loss,” the exclusions put them “in the tough predicament of claiming the drywall is neither defective nor its off-gassing corrosive or a pollutant, but nonetheless damage-causing.”
In the earlier Chinese Drywall case, the judge found that “faulty and defective materials” “constitutes a physical thing tainted by imperfection or impairment.” The case “found the drywall served its intended purpose as a room divider and insulator but nonetheless qualified under the exclusion, analogizing the drywall to building components containing asbestos that courts have previously determined fit under the same exclusion.” In the current case, the judge concluded that the drywall was “outside the realm of coverage under the policy.”
The court also found that it had to apply the corrosion exclusion, noting that the plaintiffs tried to evade this by stating, “simplistically and somewhat disingenuously, that the damage is not caused by corrosion but by the drywall itself.” The plaintiffs are, however, parties to another Chinese drywall case, Payton v. Knauf Gips KG, in which “they directly alleged that ‘sulfides and other noxious gases, such as those emitted from [Chinese] drywall, cause corrosion and damage to personal property.’” As the court pointed out, the Duphuys could not claim in one case that the corrosion was caused by gases emitted by the drywall and in another claim it was the drywall itself. “They hope their more ambiguous allegations will be resolved in their favor and unlock the doors to discovery.”
The court quickly noted that “the remaining damage allegations are too vague and conclusory to construe” and permitted “exploration of the latent defect and pollution exclusions.”
The judge concluded that the plaintiffs did not provide sufficient facts to establish coverage under the ensuing loss provision, stating that the “plaintiffs must allege, at the very least, how the drywall causes damage to the trimwork, carpet, etc., not simply that it does so.” Given the court’s determinations in the case, the plaintiffs’ motion was dismissed.
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Congratulations to Las Vegas Partner Jeffrey W. Saab and Associate Shanna B. Carter on Obtaining Another Defense Award at Arbitration!
January 14, 2025 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPThe case arose from an incident at Plaintiff’s residence where she alleged that a failure to properly diagnose an issue with her HVAC unit led to its destruction, displacement from her home, and damage to her roof and kitchen, resulting in a diminution of value to her house. Jeff and Shanna represented the HVAC contractor, who denied any wrongdoing during the two-day arbitration at which a total of six witnesses were examined. Jeff and Shanna utilized Plaintiff’s own experts’ testimony to successfully challenge liability and bring forth a motion for spoliation, resulting in a complete defense award for Jeff and Shanna’s client, which included an award of costs.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Congratulations to Haight Attorneys Selected to the 2023 Southern California Super Lawyers List
January 17, 2023 —
Haight Brown & Bonesteel LLPHaight attorneys have been selected to the 2023 Southern California Super Lawyers list.
Congratulations to:
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Haight Brown & Bonesteel LLP