Duty to Defend Affirmed in Connecticut Construction Defect Case
August 13, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to an article by Matthew Vocci of Ober | Kaler in JD Supra, the Supreme Court of Conneticut affirmed in Travelers Cas. & Sur. Co. v. Netherlands Ins. “that allegations of years-long, continuing and progressive water intrusion caused by alleged construction defects triggered a duty to defend under CGL coverage language.”
Vocci stated that the result demonstrated “the importance of the wording of the allegations relating to construction defects, resulting damage and when the parties were on notice of the issues. For property owners, contractors/builders/developers and their insurers, the allegations in the complaint guide what can be a difficult and contentious determination regarding whether the insured is provided with a defense from its CGL carrier.”
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California’s Skilled and Trained Workforce Requirements: Public Works and AB 3018, What You Need to Know
December 09, 2019 —
Brenda Radmacher & Nicholas Krebs - Gordon & Rees Construction Law BlogDo you have the proper skilled and trained workforce for your construction projects? If you take on public works projects in California, you may not be in compliance with the new changes in the law. To avoid civil penalties or nonpayment and potentially being precluded from future bids on public works contracts, you must critically review your team and proposal prior to accepting an award. Once awarded a public contact requiring a skilled and trained workforce, diligent reporting practices and oversight are required to maintain compliance.
Compliance with California’s skilled and trained workforce requirements for contractors, engineers, architects, design professionals, and suppliers competing for public works construction projects in California is mandated through enforcement with the enactment of AB 3018. Signed by Governor Brown in his last legislative session, AB 3018 dramatically increased the penalties for non-compliance with the existing skilled and trained workforce requirements in California. The new penalties include civil fines by the Labor Commissioner up to $10,000 per month per non-compliant contractor, disqualification from bidding on future public works contract, and withholding of payment for delinquent contractors. This update provides information on California’s skilled and trained workforce requirements, identifies key issues on compliance to avoid penalties, and discusses the impact of enforcement on construction professionals’ business practices.
Reprinted courtesy of
Brenda Radmacher, Gordon & Rees Scully Mansukhani and
Nicholas Krebs, Gordon & Rees Scully Mansukhani
Ms. Radmacher may be contacted at bradmacher@grsm.com
Mr. Krebs may be contacted at nkrebs@grsm.com
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Examination of the Product Does Not Stop a Pennsylvania Court From Applying the Malfunction Theory
June 28, 2021 —
Gus Sara - The Subrogation StrategistPennsylvania recognizes the malfunction theory in product liability cases. This theory allows a plaintiff to circumstantially prove that a product is defective by showing evidence of a malfunction and eliminating abnormal use or reasonable, secondary causes for the malfunction. The malfunction theory is available to plaintiffs as an alternative to proving a traditional strict product liability case in those circumstances where direct evidence of a product defect is not found. In Pa. Nat’l Mut. Cas. Ins. Co. v. Sam’s East, Inc., 727 MDA 2020, 2021 Pa. Super. Unpub. LEXIS 752, the Superior Court of Pennsylvania (Superior Court) considered whether the plaintiffs could avail themselves to the malfunction theory if the plaintiffs’ expert was able to examine the product.
The Sam’s East, Inc. case arose from a February 2015 fire at the residence of Gerald and Michelle Thompson (the Thompsons). The fire caused injuries to the Thompsons, as well as significant damage to their residence. Pennsylvania National Mutual Casualty Insurance Company (Insurer) provided homeowners insurance coverage for the property and made payments to the Thompsons as a result of the fire. Insurer retained a fire investigator to investigate the origin and cause of the fire. The fire investigator determined that the fire originated at an electric space heater that was purchased from defendant Sam’s East, Inc. (Sam’s East) in December 2011. Insurer and the Thompsons filed a lawsuit against Sam’s East in early 2017 for their respective damages.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
Spencer Mayer Receives Miami-Dade Bar Association's '40 Under 40' Award
March 04, 2024 —
Lewis Brisbois NewsroomMiami, Fla. (February 23, 2024) – Miami Associate Spencer Mayer received the 2024 Miami-Dade Bar Association Young Lawyers Section’s '40 under 40' Award at the association's annual "Miami Nights" event on February 22.
Mr. Mayer serves on the Board of Directors of the Miami Dade Bar Association’s Young Lawyers Section. Lewis Brisbois was a proud sponsor of this event, which raised funds for the organization's community service initiatives and pro bono programming.
Mr. Mayer is a member of the General Liability Practice. His practice focuses on all aspects of civil litigation, including complex commercial litigation, products liability, premises liability, wrongful death, catastrophic injury, and insurance coverage.
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Lewis Brisbois
Don’t Assume Your Insurance Covers A Newly Acquired Company
February 19, 2019 —
Patrick M. McDermott & Michael S. Levine - Hunton Insurance Recovery BlogThe Supreme Court of Virginia’s decision yesterday finding no coverage for fire damage to a building is a cautionary tale for companies acquiring other companies. Erie Ins. Exch. v. EPC MD 15, LLC, 2019 WL 238168 (Va. Jan. 17, 2019). In that case, Erie Insurance issued a property insurance policy to EPC. The policy covered EPC only and did not cover any subsidiaries of EPC. EPC then acquired the sole member interest in Cyrus Square, LLC. Following the acquisition, fire damaged a building that Cyrus Square owned.
EPC sought coverage under its property insurance policy. Because the policy did not cover Cyrus Square, EPC argued that a provision extending coverage to “newly acquired buildings” applied, contending that EPC had newly acquired Cyrus Square’s building by virtue of becoming the sole member interest in the LLC. Based on the law relative to LLCs and its interpretation of the policy, the Supreme Court of Virginia ruled against EPC. It found that although EPC had acquired Cyrus Square, it had not “newly acquired” the building and so the “newly acquired buildings” coverage extension did not apply.
Reprinted courtesy of
Patrick M. McDermott, Hunton Andrews Kurth and
Michael S. Levine, Hunton Andrews Kurth
Mr. McDermott may be contacted at pmcdermott@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
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The EEOC Is Actively Targeting the Construction Industry
February 27, 2023 —
Cameron S. Hill Sr. & Maia Fleischman, Construction ExecutiveRisks and potential liabilities in the construction industry are not new. Construction participants know the typical hot spots: Projects are delayed. Supply chain issues raise materials costs. Owners and general contractors dispute the effects of changes in the scope of work. Employees can become injured.
Be aware that workplace conduct and practices are increasingly a priority and focus for governmental intervention, resulting in increased risk management attention on the construction industry. The Equal Employment Opportunity Commission (EEOC) is watching, and if you are not prepared, you could be liable for hundreds of thousands of dollars related to how your employees interact with each other. We recommend you immediately review your employment policies and procedures in addition to considering an update of your training practices.
Reprinted courtesy of
Cameron S. Hill Sr. and Maia Fleischman, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Hill may be contacted at chill@bakerdonelson.com
Ms. Fleischman may be contacted at mfleischman@bakerdonelson.com
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Just a House That Uses 90 Percent Less Energy Than Yours, That's All
August 20, 2014 —
Amelia Hennighausen – BloombergActive City, Passive House
From the tallest skyscraper to the humblest suburban abode, the buildings that we live and work in draw about 70 percent of the nation’s annual electricity. They burn more than a quarter of the natural gas the U.S. consumes every year.
They eat all that energy for a simple reason: They were designed to. But that needn’t be the case in the future.
Enter the “passive house,” a kind of super-efficient building that’s highly insulated, heated mostly by the sun and sealed air-tight. It is, in other words, an energy trap.
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Amelia Hennighausen, Bloomberg
Navigating Construction Contracts in the Energy Sector – Insights from Sheppard Mullin’s Webinar Series
October 01, 2024 —
Cesar Pereira - Sheppard MullinConstruction contracts in the energy sector involve unique challenges and risks, particularly with respect to bonds and mechanic’s liens.
Understanding how to navigate these challenges is key to protecting your projects from disputes with general contractors, subcontractors and suppliers.
In our recent webinar, “
Construction Contracts: Bond and Mechanic’s Lien Primer for Energy Projects,” I was joined by my Sheppard Mullin colleagues Chris Kolosov and Emily Anderson to discuss navigating common contract pitfalls and negotiation strategies to protect your interests.
Here are our key takeaways.
- Know Local Mechanic’s Lien Laws: Mechanic’s liens are statutory and vary significantly from state to state. It is critical to understand the local laws and regulations at play in your project’s jurisdiction.
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Cesar Pereira, Sheppard MullinMr. Pereira may be contacted at
cpereira@sheppardmullin.com