Federal Court Again Confirms No Coverage For Construction Defects in Hawaii
July 28, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe Hawaii federal district court confirmed its prior holdings that there is no duty to defend or indemnify for property damage caused by faulty workmanship. State Farm Fire & Cas Co. v. GP West, Inc., 2016 U.S. Dist. LEXIS 74240 (D. Haw. Jun 7, 2016). (Full disclosure - our office represents GP West in this matter).
GP West, the contractor, and Air Conditioning of Maui, Inc. (AC Maui), the subcontractor, were sued by the owner of a veterinary clinic for installation of an alleged defective HVAC system. GP West contracted with the owner to build the clinic. AC Maui was the HVAC subcontractor and designed, sized and priced a HVAC system for the clinic. The underlying complaint alleged that after the building was substantially complete, the HVAC system experienced multiple equipment defects and mechanical breakdowns, and did not properly dehumidify the building.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Michigan Civil Engineers Give the State's Infrastructure a "C-" Grade, Improving from "D+" Grade in 2018
May 08, 2023 —
The American Society of Civil EngineersLANSING, MI. — The Michigan Section of the
American Society of Civil Engineers (ASCE) released the
2023 Report Card for Michigan's Infrastructure today, with 14 categories of infrastructure receiving an overall grade of 'C-', an improvement over the 'D+' grade issued in the state's 2018 report card. That means Michigan's infrastructure systems are improving but are still in average condition and require attention. Michigan's grade is on par with the national average of 'C-' given in the
2021 Report Card for America's Infrastructure. Civil engineers graded Michigan's aviation (C), bridges (D+), dams (C-), drinking water (D+), energy (D), inland waterways (C), public parks (C), rail (C), roads (D), schools (C-), solid waste (C+), stormwater (D), transit (C-), and wastewater (C). The report also included a chapter on the state's broadband infrastructure, which did not receive a grade due to insufficient available data.
Michigan policymakers have driven progress in the last five years to improve infrastructure assets by implementing short-term funding solutions to address decades of deferred maintenance, including surface transportation funding through the Rebuilding Michigan plan and improved water infrastructure systems through the MI Clean Water Plan. The state will also benefit from recent federal infrastructure investments included in the Bipartisan Infrastructure Law (BIL), Coronavirus Aid, Relief, and Economic Security (CARES) Act, and American Rescue Plan Act (ARPA). However, Michigan generally lacks sufficient long-term funding mechanisms to ensure all infrastructure sectors reach and sustain a state of good repair.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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Construction Litigation Roundup: “D’Oh!”
August 12, 2024 —
Daniel Lund III - LexologyThe U.S. DOL found itself on June 24 on the wrong end of a preliminary injunction concerning recent changes to the Davis-Bacon Act.
The lawsuit, initiated in Texas federal court by the Associated General Contractors of America and other concerned citizens, sought a preliminary injunction barring implementation and enforcement of “specified portions of § 5.2 and § 5.5(e) of the DOL’s ‘Updating the Davis-Bacon and Related Acts Regulations’” – the “Final Rule,” published August 23, 2023.
After determining the appropriateness of the “standing” of the plaintiffs based upon the plaintiffs being “adversely affected” by the Final Rule, the federal court preliminarily enjoined enforcement of the Final Rule. In noting its disagreement with the Final Rule, the court stated:
“… the Final Rule amends the DBA [the Davis-Bacon Act] by imposing a stealth selfimplementing DBA requirement in the contract by an operation-of-law provision that contradicts the express statutory language of the Act [the court bristling at the idea that contracts might exclude with impunity the otherwise mandated DBA clauses]. Further, the Final Rule amends the Act to extend the DBA to apply to workers who are not mechanics and laborers, and to extend the scope of the work covered by DBA to include work is not performed ‘directly on the site of the work.’
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Traub Lieberman Attorneys Recognized as 2020 Super Lawyers and Rising Stars
November 16, 2020 —
Traub LiebermanTraub Lieberman is pleased to announce that Super Lawyers has named nineteen of our attorneys as 2020 Super Lawyers and Rising Stars.
Super Lawyers selects attorneys using a multiphase selection process in which nominations and evaluations are combined with independent research. Each candidate is evaluated on 12 indicators of peer recognition and professional achievement. Selections are made on an annual, state-by-state basis. The objective is to create a credible, comprehensive and diverse listing of outstanding attorneys that can be used as a resource for attorneys and consumers searching for legal counsel.
The Super Lawyers designation recognizes the top 5% of attorneys in the U.S. and the Rising Stars designation recognizes the top 2.5% of attorneys in the U.S. under the age of forty, as chosen by their peers and through independent research within their practice area.
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Traub Lieberman
Congratulations to BWB&O Partner John Toohey and His Fellow Panel Members on Their Inclusion in West Coast Casualty’s 2022 Program!
March 14, 2022 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara is pleased to announce that Newport Beach Partner John Toohey was selected to speak during the West Coast Casualty Conference on Friday, May 13th at 12 PM PST., alongside panel members Al Clarke of Clarke Mediation, Inc., Brett Reuter of Arch Insurance Group, Inc., Kevin Stineman of Hannover Re Services, Inc. and Scott Rembold of Rembold Hirschman
To register for the West Coast Casualty Conference, please click
here!
Mr. Toohey and his fellow speakers will be discussing The Alternative-to-Alternative Dispute Resolution-Arbitration in Construction Matters and Beyond! Unfortunately, many construction projects end in dispute and the parties frequently find themselves in the middle of uncharted territory – arbitration! Join us as we explore the pitfalls, debunk the myths, and discuss the benefits of arbitration in construction disputes.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Federal Judge Refuses to Limit Coverage and Moves Forward with Policyholder’s Claims Against Insurer and Broker
December 07, 2020 —
Michael S. Levine & Casey L. Coffey - Hunton Insurance Recovery BlogOn November 10, 2020, a New York federal judge dismissed an insurer’s counterclaims seeking to cap its exposure under a $15 million sublimit and an order estopping the policyholder from pursuing any additional amounts.
In February 2017, Plaintiff Pilkington North America, Inc. (Pilkington), suffered between $60 and $100 million in damage from a tornado that struck its glass manufacturing factory in Illinois. Pilkington sought coverage for its loss under a commercial property and business interruption policy issued by Defendant Mitsui Sumitomo Insurance Company (MSI). Pilkington also claimed its insurance broker, Aon Risk Services Central, Inc. (Aon), is liable for faulty advice provided while brokering the policy. Aon’s negligence allegedly gave way to MSI’s fraudulent revision of the insurance policy, which caused the losses from the tornado to not be fully compensable.
Pilkington’s fraud and faulty brokering claims stem from MSI’s revision of an endorsement contained in the policy. The revision changed the wording of a windstorm sublimit. Allegedly, Aon was informed by MSI of the changes and failed to inform Pilkington that the revision would substantially reduce coverage for windstorms, including tornados.
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Michael S. Levine, Hunton Andrews KurthMr. Levine may be contacted at
mlevine@HuntonAK.com
Are We Having Fun Yet? Construction In a Post-COVID World (Law Note)
June 20, 2022 —
Melissa Dewey Brumback - Construction Law in North CarolinaRemember how I said to never assume? Yeah, about that…… even when you plan for failures, mistakes, and other problems, sometimes things get so outside the realm of what you considered that it can leave your construction project spinning. Take, as a random example, a world-wide pandemic that shuts down supply chains, shuts down job sites, and limits the labor pool. Just as an example.
What does construction law say about pandemics? They fall under an “Act of God” that you may have read about in your contracts, or in the contracts of the contractors working your projects. An “Act of God” is an event that is not foreseeable, and as such not something the parties could have anticipated when they drafted the contract. Acts of God generally excuse a party’s failure– for example, a contractor’s failure to complete the project on time can be excused when an “act of God” has occurred.
By now, you’ve dealt with the practical fall out, one way or another. Many projects no longer made financial sense for your clients. Others may have been modified, reduced in scope, or had substitute materials put in place.
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Melissa Dewey Brumback, Ragsdale LiggettMs. Brumback may be contacted at
mbrumback@rl-law.com
Fifth Circuit: Primary Insurer Relieved of Duty to Defend Without Release of Liability of Insured
March 02, 2020 —
Bethany L. Barrese & Ashley McWilliams - Saxe Doernberger & Vita, P.C.In Aggreko, LLC v. Chartis Specialty Ins. Co.,1 the Fifth Circuit affirmed a decision by the Texas District Court and held that a Covenant Not to Execute constituted a “settlement” sufficient to exhaust policy limits and terminate a primary insurer’s duty to defend.
This case arose out of a wrongful death suit filed by the parents of James Brenek II (“Brenek”). In 2014, Brenek was fatally electrocuted by an electrically energized generator housing cabinet while performing work on a rig in Texas for Guichard Operating Company, LLC (“Guichard”), a Louisiana-based drilling subcontractor. Guichard had leased the generator from Aggreko, LLC (“Aggreko”). A rental agreement between Guichard and Aggreko required Guichard to maintain commercial general liability insurance during the lease period and list Aggreko and the rig owner, Rutherford Oil Corporation (“Rutherford”), as additional insureds under
the policy.
Guichard’s primary insurance carrier, The Gray Insurance Company (“Gray”), agreed to defend and indemnify Aggreko and Rutherford in the wrongful death suit. The Gray policy had a limit of $1,000,000, subject to a $50,000 self-insured retention.
Reprinted courtesy of
Bethany L. Barrese, Saxe Doernberger & Vita, P.C. and
Ashley McWilliams, Saxe Doernberger & Vita, P.C.
Ms. Barrese may be contacted at blb@sdvlaw.com
Ms. McWilliams may be contacted at amw@sdvlaw.com
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