In Massachusetts, the Statute of Repose Applies to Consumer Protection Claims Against Building Contractors
January 28, 2019 —
Shannon M. Warren - The Subrogation StrategistIn Bridgwood v. A.J. Wood Construction, Inc., 105 N.E.3d 224 (Mass. 2018), the Supreme Court of Massachusetts determined that the statute of repose barred the plaintiff’s consumer protection claims commenced more than six years after the occurrence of the event that gave rise to the claims. In Bridgwood, the homeowner filed suit against the contractors who had performed renovations 15 years earlier. The homeowner asserted that concealed faulty electrical work caused a fire 11 years after the work was completed. The complaint alleged that the contractors, by violating Mass. Gen. Laws. Chapter 142A §17(10), committed an unfair and deceptive act pursuant to Mass. Gen. Laws Chapter 93A.
Section 17(10) prohibits contractors from violating building laws and specifically states that a violation of Section 17(10) constitutes an unfair and deceptive act as defined by Chapter 93A. Chapter 93A is regarded as one of the most stringent consumer protection statutory schemes in the nation, and allows litigants to seek remedies such as treble damages and attorney fees.
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Shannon M. Warren, White and WilliamsMs. Warren may be contacted at
warrens@whiteandwilliams.com
Shoring of Problem Girders at Salesforce Transit Center Taking Longer than Expected
November 14, 2018 —
Nadine M. Post - Engineering News-RecordThe Transbay Joint Powers Authority announced on Oct. 10 that emergency remedial work at the 4.5-block-long Salesforce Transit Center in San Francisco, on the closed Fremont Street between Howard and Mission streets, will continue into early next week. The block, which crosses under the hub, will reopen to traffic and the public on Wednesday, Oct. 17, rather than Oct. 12, as previously announced, says TJPA. The transit center itself, which opened in August, is temporarily closed.
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Nadine M. Post, ENRMs. Post may be contacted at
postn@enr.com
Certified Question Asks Washington Supreme Court Whether Insurer is Bound by Contradictory Certificate of Insurance
January 21, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe Ninth Circuit certified a question to the Washington Supreme Court as follows:
Under Washington law, is an insurer bound by representations made by its authorized agent in a certificate of insurance with respect to a party's status as an additional insured under a policy issued by the insurer, when the certificate includes language disclaiming its authority and ability to expand coverage?
T-Mobile USA Inc. v. Selective Ins. Co lf Am., 2018 U.S. App. LEXIS 31863 (9th Cir. Nov. 9, 2018).
In 2010, T-Mobile entered into a Field Services Agreement (FSA) with Innovative Engineering, Inc. under which Innovative would provide services in connection with the construction of rooftop cellular antennae towers in New York City. The FSA required Innovative to maintain general liability insurance naming T-Mobile as an additional insured, and required that Innovative provide T-Mobile with certificates of insurance documenting the coverage. Innovative obtained coverage from Selective Insurance Company of America.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Colorado’s Federal District Court Finds Carriers Have Joint and Several Defense Duties
October 10, 2013 —
Bret Cogdill — Higgins, Hopkins, McLain & Roswell, LLC.An issue that has plagued builders in Colorado construction defect litigation is the difficulty of getting additional insured carriers to fully participate in the builder’s defense, oftentimes leaving the builder to fund its own defense during the course of the litigation.
Many additional insurers offer a variety of positions regarding why they will not pay for fees and costs during the course of a lawsuit. Some insurers argue that, until after trial, it is impossible to determine its proper share of the defense, and therefore cannot make any payments until the liability is determined as to all of the potentially contributing policies. (This is often referred to as the “defense follows indemnity” approach.) Others may make an opening contribution to defense fees and costs, but fall silent as fees and costs accumulate. In such an event, the builder may be forced to fund all or part of its own defense, while the uncooperative additional insured carrier waits for the end of the lawsuit or is faced with other legal action before it makes other contributions.
Recent orders in two, currently ongoing, U.S. District Court cases provide clarity on the duty to defend in Colorado, holding that multiple insurers’ duty to defend is joint and several. The insured does not have to go without a defense while the various insurers argue amongst themselves as to which insurer pays what share.
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Bret CogdillBret Cogdill can be contacted at
cogdill@hhmrlaw.com
Real Estate Developer Convicted in $1.3 Billion Tax Case After Juror Removed
October 17, 2023 —
David Voreacos - BloombergA real estate developer was convicted for promoting $1.3 billion in fraudulent tax deductions after a judge removed a deliberating juror who told the judge she was “standing up for White people.”
Jack Fisher was found guilty Friday in Atlanta federal court of selling tax deductions to wealthy individuals using so-called syndicated conservation easements, which offer tax breaks for the promise to avoid developing land. Prosecutors said Fisher relied on exaggerated appraisals and backdated documents in the scheme, which earned him tens of millions of dollars.
Jurors also convicted a lawyer who worked with Fisher, James Sinnott. Attorneys for Fisher and Sinnott didn’t immediately respond to a request for comment.
The nine-week trial nearly came undone by conflicts over race and class within the jury, which began deliberating on Sept. 14. Last week, jurors told US District Judge Timothy Batten they were “hopelessly hung.” Jurors also complained that Juror 26, a White woman, refused to deliberate.
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David Voreacos, Bloomberg
No Coverage For Construction Defects When Complaint Alleges Contractual Damages
September 01, 2011 —
Tred R. Eyerly - Insurance Law HawaiiThe underlying plaintiff’s allegations contended the contractor was in breach of contract for construction defects caused in building her home. Accordingly, the court found no coverage.See Nat’l Builders and Contractors Ins. Co. v. Slocum, 2011 U.S. Dist. LEXIS 81694 (S.D. Miss. July 26, 2011).
Slocum Construction LLC sold a home it built to Laura Peterson. Subsequently, Peterson filed suit, alleging a breach of the contract and seeking rescission and cancellation of the contract. Peterson further alleged at least thirty-three specific defects in the construction of the house.
Slocum tendered to its insurer, National Builders and Contractors Insurance Company (NBCI). NBCI filed suit for a declaratory judgment.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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U.S. State Adoption of the National Electrical Code
August 24, 2017 —
David R. Cook Jr. - Autry, Hanrahan, Hall & Cook, LLPWhat is the National Electrical Code?
Did you know that as of 2017, there have been 15 revisions of The National Electrical Code since 1975, the year the average American home was built?
The National Electrical Code codifies the minimum requirements for the safe electrical installations in a single, standardized source. While the NEC is not itself a law, the NEC is commonly mandated by state or local law. Where the NEC is adopted, anything less than the standards set by the NEC are illegal. The NEC revision is an open process that produces a new code every three years. The process includes:
- Public Input
- Public Commentary
- NFPA Technical Session
- Standards Council Action – Appeals and Issuance of the NEC
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David R. Cook, Autry, Hanrahan, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
Battle of Experts Cannot Be Decided on Summary Judgment
June 13, 2018 —
Tred R. Eyerly - Insurance Law HawaiiWhen two competing experts disagreed on the cause of the loss, the trial court erred in granting summary judgment to the insurer. Garcia v. Firs Community Ins. Co., Fla. App. LEXIS 4237 (Fla. Ct. App. March 28, 2018).
Garcia, the homeowner, discovered water damage in his home, allegedly due to a roof leak. Garcia notified his insurer, First Community Insurance Company. A forensic engineer, Ivette Acosta, was retained by First Community to inspect the property. After the inspection, coverage was denied.
The homeowner's policy covered direct loss to property only if the loss was a physical loss. Loss caused by ""rain snow, sleet, sand or dust to the interior of a building was excluded unless a covered peril first damaged the building causing an opening in a roof or wall and the rain, snow, sleet, sand or dust enters through this opening." Loss caused by wear and tear, marring, or deterioration was also excluded.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com