No Duty to Defend Construction Defect Claims under Kentucky Law
March 25, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court determined that the insurer was not obligated to defend construction defect claims under Kentucky law. Westfield Ins. Co. v. Kentuckiana Commercial Concrete, LLC, 2023 U.S. Dist. LEXIS 222674 (W.D. Ky. Dec. 14, 2023).
HRB, the owner of an apartment complex, filed an arbitration demand against the general contractor, Doster Commercial Construction, for allegedly doing faulty concrete work in the construction of the apartments. Doster added its concrete subcontrator Kentuckiana Commercial Concrete - and 16 other subcontractors - to the arbitration. Kentuckiana tendered the claim to its insurer, Westfield. Wesfield defended. Doster claimed it was an additional insured under the Westfield policy and also sought coverage. Westfield refused the defend Doster. Westfield argued there was no "occurrence."
Westfield then sued both Doster and Kentuckiana in federal court, seeking a declaration that it had no duty to defend either. Westfield moved for a judgment on the pleadings.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Broken Buildings: Legal Rights and Remedies in the Wake of a Collapse
October 11, 2021 —
David J. Pfeffer - Construction ExecutiveA tragedy transpired on June 24 in Surfside, Florida, when the Champlain Towers South suddenly fell, becoming one of the country’s most deadly unintentional building collapses. It is imperative that construction industry professionals be aware of the legal issues that are raised by such ill-fated events.
Who Is Held Responsible?
Who can be held responsible for such disasters lies among several possible parties:
- The building’s design professionals, particularly its architects and structural engineers. They are charged with ensuring that the building’s design is safe. They must take many factors into account, including, but not limited to, the materials that are used, the foundation, the weight and the height.
- General contractors and the subcontractors. General contractors implement the design created by the architects and engineers and are responsible for appropriate materials. The general contractor also supervises the subcontractors aiding with multiple areas of the building’s construction and which also share the responsibility of executing the design and maintaining the building’s structural integrity.
Reprinted courtesy of
David J. Pfeffer, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Pfeffer may be contacted at
dpfeffer@tarterkrinsky.com
Congratulations 2024 DE, MA, MD, NJ, NY, and PA Super Lawyers and Rising Stars
June 17, 2024 —
White and Williams LLPWhite and Williams congratulates the fifteen attorneys nominated as Super Lawyers and ten attorneys named Rising Stars across our Delaware, Massachusetts, Maryland, New Jersey, New York and Philadelphia offices. Lawyers are selected through a process that takes into consideration peer recognition and professional achievement. The lawyers named to this year’s list represent a multitude of practices throughout the firm.
Super Lawyers 2024
Attorney |
Super Lawyers Denoted Practice Area (s)
| |
David B. Chaffin |
Business Litigation |
Robert G. Devine |
Personal Injury, Employment Litigation, Products Liability |
David D. Gilliss |
Surety, Construction Litigation, Administrative Law |
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White and Williams LLP
Pennsylvania Superior Court Fires up a Case-By-Case Analysis for Landlord-Tenant, Implied Co-Insured Questions
February 03, 2020 —
Gus Sara - The Subrogation StrategistIn Joella v. Cole, 2019 PA Super. 313, the Superior Court of Pennsylvania recently considered whether a tenant, alleged by the landlord’s property insurance carrier to have carelessly caused a fire, was an implied co-insured on the landlord’s policy. The court found that the tenant was an implied co-insured because the lease stated that the landlord would procure insurance for the building, which created a reasonable expectation that the tenant would be a co-insured under the policy. Since the tenant was an implied co-insured on the policy, the insurance carrier could not maintain a subrogation action against the tenant. This case confirms that Pennsylvania follows a case-by-case approach when determining whether a tenant was an implied co-insured on a landlord’s insurance policy.
The Joella case stems from a fire at an apartment building in Northampton County, Pennsylvania. The landlord’s property insurance carrier paid the landlord $180,000 to repair the damages resulting from the fire. In March 2018, the insurer brought a subrogation action against Annie Cole, a tenant in the building, alleging that Ms. Cole’s negligent use of an extension cord caused the fire. Ms. Cole raised the affirmative defense that she was an implied co-insured on the landlord’s insurance policy. The subrogating insurer filed a partial motion for summary judgment seeking to dismiss Ms. Cole’s defense. In response, Ms. Cole filed a cross motion for partial judgment, arguing that because the lease specified that the landlord would maintain fire insurance for the building, there was a reasonable expectation that she would be a co-insured on that policy. The trial court found in favor of Ms. Cole, holding that the landlord’s insurer could not maintain a subrogation action against her because she was an implied co-insured of the landlord’s insurance policy under the terms of the lease. The landlord’s insurer filed an appeal with the Superior Court of Pennsylvania.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
The Prompt Payment Rollercoaster
February 23, 2016 —
Garret Murai – California Construction Law BlogThis past year we
wrote about a case involving California’s prompt payment laws and the current state of confusion with the prompt payment statutes which are
scattered throughout the state Code and which are inconsistent in the use of their terminology and, thus importantly, application.
In
United Riggers & Erectors, Inc. v. Coast Iron & Steel Co., California Court of Appeals for the Second District, Case No. B258860 (December 18, 2015), the Court of Appeals for the Second District addressed whether under one of the prompt payment statutes, Civil Code section 8814, a general contractor may withhold retention without being subject to prompt payment penalties if there is a dispute of any kind between the general contractor and the subcontractor, or only when the dispute relates to the retention itself.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
In Pennsylvania, Contractors Can Be Liable to Third Parties for Obvious Defects in Completed Work
July 10, 2023 —
Michael L. DeBona - The Subrogation StrategistIn Brown v. City of Oil City, No. 6 WAP 2022, 2023 Pa. LEXIS 681 (2023), the Supreme Court of Pennsylvania (Supreme Court) recently held that a contractor can be liable for dangerous conditions it creates even if the hazard is obvious or known by the property owner. In City of Oil City, the City of Oil City (Oil City) contracted with Harold Best and Struxures, LLC and Fred Burns, Inc. (collectively Contractors) to reconstruct the concrete stairs to the city library. Contractors completed their work at the end of 2011. In early 2012, Oil City received reports of issues with the stairs. Oil City notified Contractors that it considered the stairs dangerous and that Contractors’ defective workmanship created the condition. Neither Oil City or Contractors took any action to fix the stairs or warn of the danger and the stairs’ condition worsened with time.
On November 23, 2015, David and Kathryn Brown exited the library. Kathryn Brown tripped on one of the deteriorated steps, falling and striking her head. Kathryn suffered a traumatic head injury and passed away six days later. The Estate of Kathryn Brown and David Brown, individually (collectively, the Browns), sued Oil City as the owner of the library and Contractors. With respect to Contractors, the Browns asserted that Contractors’ work on the stairs created a dangerous condition that presented an unreasonable risk of harm to those using the steps.
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Michael L. DeBona, White and WilliamsMr. DeBona may be contacted at
debonam@whiteandwilliams.com
Texas Federal Court Finds Total Pollution Exclusion Does Not Foreclose a Duty to Defend Waterway Degradation Lawsuit
October 24, 2022 —
Jeremy S. Macklin - Traub Lieberman Insurance Law BlogEvanston Ins Co. v. Tex. Concrete and Sand Gravel, Inc., No. 4:20-cv-00103 (S.D. Tex. Aug. 30, 2022) is a coverage dispute over Evanston Insurance Co.’s (“Evanston”) duty to defend and indemnify Texas Concrete Sand and Gravel, Inc. (“Texas Concrete”) and Apcon Services, LLC (“Apcon”) (collectively, the “Insureds”) for their contributions to the degradation of the waterways and retention lakes built to control flooding in the Houston area. On August 3, 2022, Magistrate Judge Yvonne Y. Ho recommended that Evanston’s motion for summary judgment be denied. On August 30, 2022, District Court Judge Alfred H. Bennett adopted Judge Ho’s Memorandum and Recommendations.
In 2017, Hurricane Harvey caused significant flooding of the Houston area, which resulted in large-scale property damage. The underlying lawsuits alleged that, since 1954, Lake Houston’s waterways sustained a steady decline in capacity because of the release of materials into the waterway system. The Insureds allegedly contributed to the decline by allowing “materials and substances” (such as processed water, silt, sand, sediment, dirt, rock, and aggregate) to run off their privately controlled properties and into the Houston waterways. The reduced capacity, allegedly caused in part by the Insureds, exacerbated the flooding after Hurricane Harvey hit, increasing the damage from the hurricane.
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Jeremy S. Macklin, Traub LiebermanMr. Macklin may be contacted at
jmacklin@tlsslaw.com
Condo Association Settles with Pulte Homes over Construction Defect Claims
November 06, 2013 —
CDJ STAFFThe Springton Point Condominium Association has settled its construction defect claims against Pulte Homes for $5.6 million. The residents of the 152-unit condominium community alleged a variety of defects which led to water intrusion, as well as a variety of other problems, including defective fire sprinkler systems and missing insulation.
Pulte filed lawsuits against its subcontractors on the project, however all but one of these were settled before the case went to trial. The lawsuit started in 2007, with Pulte adding the subcontractors in 2009. On October 25, a jury had been selected, but the case settled before opening statements.
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