Window Installer's Alleged Faulty Workmanship On Many Projects Constitutes Multiple Occurrences
May 10, 2017 —
Tred R. Eyerly - Insurance Law HawaiiLawsuits filed for recovery due to the faulty design and installation of doors and windows by homeowners across the country were found to allege multiple occurrences. Pella Corp. v. Liberty Mut. Ins. Co., 2017 U.S. Dist. 53631 (C.D. Iowa March 31, 2017).
The underlying lawsuits alleged that Pella Corporation's windows were defectively designed, manufactured, or installed, and allowed water intrusion to buildings that resulted in third-party property damage or personal injury.
Pella sued Liberty Mutual for declaratory judgment and filed a motion for partial summary judgment to determine how many occurrences the underlying cases presented. Pella sought a determination that each of the 15 underlying cases presented one "occurrence" as the term was defined in the CGL policies issued by Liberty Mutual. Liberty Mutual argued that only three or four occurrences were presented, relying on common fact patterns.
Pella argued that there were separate and distinct causes of different injuries and damage and thus, each underlying case constituted a separate occurrence. Liberty Mutual, on the other hand, highlighted language within the definition of "occurrence," which stated that an "occurrence" included "continuous or repeated exposure to the same general harmful conditions." The "substantially the same general harmful conditions" language dictated that the scope of "occurrence" be understood to be broad, such that various instances of damage-causing water intrusion in different times and places constituted "substantially the same general harmful conditions."
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Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
URGENT: 'Catching Some Hell': Hurricane Michael Slams Into Florida
October 16, 2018 —
Associated Press (Jay Reeves & Brendan Farrington) - BloombergPanama City, Fla. (AP) -- Powerful Hurricane Michael slammed into the Florida Panhandle with terrifying winds of 155 mph Wednesday, splintering homes and submerging neighborhoods before continuing its destructive march inland across the Southeast. It was the most powerful hurricane to hit the continental U.S. in nearly 50 years and at least one death was reported during its passage.
Supercharged by abnormally warm waters of the Gulf of Mexico, the Category 4 storm crashed ashore in the early afternoon near Mexico Beach, a tourist town about midway along the Panhandle, a 200-mile (320-kilometer) stretch of white-sand beach resorts, fishing towns and military bases. After it ravaged the Panhandle, Michael entered south Georgia as a Category 3 hurricane — the most powerful in recorded history for that part of the neighboring state.
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Bloomberg
Language California Construction Direct Contractors Must Add to Subcontracts Beginning on January 1, 2022, Per Senate Bill 727
December 20, 2021 —
William L. Porter - Porter Law GroupSenate Bill No. 727, Imposing Liability on Contractors for Wage Claims of Subcontractor Employees:
California Senate Bill 727 was approved by the Governor on September 27, 2021. The new Act amended Labor Code Section 218.7 and added a new section 218.8 to the Labor Code. Both Labor Code sections impose on “direct contractors” in the construction industry (defined by Civil Code 8018 as “a contractor that has a direct contractual relationship with an owner”) liability for the wage violations of their subcontractors and sub-subcontractors at any tier when working on California private construction projects.
Specifically, new Section 218.8 expands the liability of direct contractors for wage claims of the employees of subordinate subcontractors on projects for contracts executed beginning on January 1, 2022. The liability of the direct contractor under Labor Code 218.8 will include “any debt owed to a wage claimant or third party on the wage claimant’s behalf, incurred by a subcontractor at any tier acting under, by, or for the direct contractor.” Specifically included as listed liabilities of the direct contractor are: “any unpaid wage, fringe or other benefit payment or contribution, penalties or liquidated damages, and interest owed by the subcontractor on account of the performance of the labor.”
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
The Woodland Hills Office Secures a Total Defense Award on Behalf of their High-End Custom Home Builder Client!
June 04, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPPartner Daniel Crespo and Associate Theresa Mallen secured a total defense award in arbitration. Our client is a high-end custom home builder with a decades-long flawless record of museum quality construction. Our client was accused of performing substandard construction and the homeowners asserted a multiple million-dollar cost of repair. We took a zero-liability position and argued that the alleged defects were not defects at all but were rather mere reflections of an incomplete project. In sum, our client was forced to terminate the contract and cease construction due to the homeowners’ failure to make progress payments as they became due. The arbitration endured 16 days of testimony scattered over the course of 7 months.
Ultimately, the arbitrator ruled that there were no construction defects at the project and that the homeowners “shall take nothing.” The arbitrator also ruled in favor of our client on its affirmative claim for monies owed by the homeowners’ breach of contract plus interest. A total victory for our client.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Subcontractors Eye 2022 with Guarded Optimism
October 11, 2021 —
Louise Poirier - Engineering News-RecordWhile work continues to be plentiful for specialty contractors across the five-state region of Arkansas, Louisiana, Mississippi, Oklahoma and Texas, concerns remain for how the project landscape will continue to evolve as the impacts of the COVID-19 pandemic continue to weigh on the world.
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Louise Poirier, Engineering News-Record
Ms. Poirier may be contacted at poirierl@enr.com
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More Musings From the Mediation Trenches
July 30, 2015 —
Christopher G. Hill – Construction Law MusingsAs those that read this construction blog on a regular basis know, I became a Virginia Supreme Court certified mediator a few years ago. I did so because I believe that mediation as a form of alternate dispute resolution is in most cases a much better alternative to resolve a construction dispute than litigation.
While I still act as counsel to construction companies participating in mediations (and have posted my thoughts on this topic on numerous occasions), working with the General District Courts of Virginia and acting as a mediator for private disputes has given me an interesting perspective on how the flexibility and process of mediation can resolve disputes in a way that formal court litigation or other forms of ADR may not.
After almost 4 years of working with the general district courts here in Virginia and working with private companies and individuals to resolve their disputes, I have come to the conclusion that often the real issue is not the money (though that is the big one) but some other intangible issue, whether an emotional one or some conflict of personality or even what may seem in hindsight to be a minor miscommunication. Because of this fact of life, and the life of a mediator, the ability to “vent” in the confidential setting of a mediation and in a way that no Court with rules of evidence could allow can go a long way toward a resolution of the dispute.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Water Alone is Not Property Damage under a CGL policy in Connecticut
July 22, 2024 —
Bill Wilson - Construction Law ZoneThe Connecticut Appellate Court recently provided guidance on what does not constitute property damage under a typical contractor’s Commercial General Liability (CGL) insurance policy in Westchester Modular Homes of Fairfield County, Inc. v. Arbella Protection Ins. Co., 224 Conn App. 526 (2024). In this case, the contractor defended construction defect claims brought by an owner and then sued its insurer to recover $500,000 in defense costs for failing to provide a defense under the contractor’s policy. In Connecticut, an insurer is obligated to provide a defense based on what is alleged in a complaint and if it has actual knowledge of any facts establishing a reasonable possibility of coverage. The contractor provided extrinsic evidence for two defects claimed by the owner: (1) windows were installed improperly such that water was collecting and will continue to collect in the window soffit areas and eventually rot the wall, and (2) the vapor barrier was not installed in the second-floor ceiling which will result in water condensation and water damage to the roof structure if not remedied.
The insurer relied on typical provisions included in most CGL policies. The insurer has no duty to defend the insured against any suit seeking damages for property damage to which the insurance does not apply. The term “property damage” is defined as “physical injury to tangible property, including all resulting loss of use of that property.” Under well-established Connecticut law, the phrase “physical injury” unambiguously connotes damage to tangible property, causing an alteration in appearance, shape, color, or some other material dimension. It is also well-established that claims for property damage caused by defective work are covered under a CGL policy but claims for repair of the defective work itself are not. The insurer denied any duty to defend because no coverage was triggered under the liability policy. Both parties moved for summary judgment.
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Bill Wilson, Robinson & Cole LLPMr. Wilson may be contacted at
wwilson@rc.com
New Utah & Colorado Homebuilder Announced: Jack Fisher Homes
July 23, 2014 —
Beverley BevenFlorez-CDJ STAFFHenry Walker Homes announced the creation of Jack Fisher Homes, “a new venture that will continue their tradition of homebuilding excellence in Northern Utah, Southern Utah and Colorado,” according to a press release on PR Web.
“Colin Wright, Owen Fisher, Chad Bessinger and Steve Sandholtz founded Jack Fisher Homes to focus on areas of their proven expertise in real estate, including residential land development and homebuilding, commercial assets in multifamily development and seniors’ housing,” PR Web reported.
Jack Fisher has “1,300 single-family residential units in its pipeline” and “anticipates closing more than 230 homes in the remainder of 2014 with sales expected to exceed $70 million.” The homebuilder expects those numbers to double in 2015.
“All of the original elements that made Henry Walker great are incorporated and improved upon with Jack Fisher Homes,” Wright said, according to the press release. “The influx of new capital, our years of experience, and the improved real estate landscape have us very excited about the future of Jack Fisher Homes.”
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