Colorado Senate Bill 15-177: This Year’s Attempt at Reasonable Construction Defect Reform
February 18, 2015 —
Zach McLeroy – Colorado Construction LitigationOn February 10, 2015, Senators Scheffer and Ulibarri introduced Senate Bill 15-177, which is sponsored in the House by Representatives DelGrosso and Singer. SB 15-177 amends the prerequisites, found in the Colorado Common Interest Ownership Act (“CCIOA”), for an association to file a construction defect action. The bill has been assigned to the Senate Committee on Business, Labor, and Technology but not yet scheduled for hearing.
The major points of the bill include: 1) enforcement of a mediation or arbitration provision contained in the original governing documents of a common interest community, even if subsequently amended or removed; 2) the addition of a requirement that mediation take place before a construction defect action can be filed; 3) heightened requirements that an association board provide advanced notice to all unit owners, together with a disclosure of projected costs, duration, and financial impact of the construction defect claim; 4) the addition of a requirement that the board obtain the written consent of a majority of the owners of units, and; 5) a requirement that prior to the purchase and sale of a property in a common interest community, the purchaser receive notice that binding arbitration may be required for certain disputes.
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Zach McLeroy, Higgins, Hopkins, McLain & Roswell, LLCMr. McLeroy may be contacted at
mcleroy@hhmrlaw.com
Insurance Attorney Gary Barrera Joins Wendel Rosen’s Construction Practice Group
July 26, 2017 —
Garret Murai - California Construction Law BlogWendel Rosen’s Construction Practice Group welcomes a new member to our band of merry men (and women), Gary Barrera.
Gary, an insurance attorney, has extensive experience with construction defect, property damage, professional liability and environmental claims. He has represented real estate developers and contractors in all aspects of construction defect litigation and has resolved insurance coverage disputes arising out of construction claims on behalf of policyholders. Prior to attending law school, Gary worked as a claims representative and examiner for several insurance carriers and third-party administrators.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Identifying and Accessing Coverage in Complex Construction Claims
September 29, 2021 —
Jeffrey J. Vita & Michael V. Pepe - Saxe Doernberger & Vita, P.C.I. Introduction
First-party, third-party, builder’s risk, professional liability, commercial general liability, wrap-ups, and additional insured status are all potential sources of insurance coverage for a large construction loss. Therefore, it is critical for construction industry participants, from owners and developers to general contractors and their subcontractors, to have a functional knowledge of the different types of insurance coverage available to them and how those coverages intersect to respond to a loss. This paper presents a brief overview of the various types of coverage available to contractors, construction managers, and owners in a large construction loss and the risks each coverage is designed to insure.
In general, there are two forms of coverage: (1) First-party liability coverage, which protects an insured’s own losses on a project during construction; and (2) Third-party liability coverage, which insures the project participants for losses that become the subject of claims or suits brought against the project participants by third parties. When a loss occurs, such as property damage, both types of coverage can be implicated. For example, if a fire burns down a building under construction, the contractor likely would incur first-party losses such as cleanup costs. The contractor may also have third-party exposure if the owner alleges that the contractor was responsible for the fire. On the other hand, when a bodily injury occurs, all losses to the contractor will be third-party losses. A broad overview of each of these policies is provided below.
Reprinted courtesy of
Jeffrey J. Vita, Saxe Doernberger & Vita and
Michael V. Pepe, Saxe Doernberger & Vita
Mr. Vita may be contacted at JVita@sdvlaw.com
Mr. Pepe may be contacted at MPepe@sdvlaw.com
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What Types of “Damages Claims” Survive a Trustee’s Sale?
February 28, 2018 —
Ben Reeves – Real Estate Litigation blog / Snell & WilmerIntroduction
Arizona’s trustee’s sale statutory scheme provides for the waiver of all defenses and objections to a trustee’s sale that: (i) are not raised prior to the sale, and (ii) do not result in an injunction against the sale going forward.
See A.R.S. § 33-811(C). In other words, if you have an objection to a trustee’s sale, you must seek and obtain an injunction prior to the sale or your objection will be waived.
Arizona’s Court of Appeals previously held that notwithstanding this statutory waiver, “common law” defenses to repayment of the debt survive a non-judicial foreclosure even in the absence of an injunction prior to the sale.
See Morgan AZ Financial, L.L.C. v. Gotses, 235 Ariz. 21, 326 P.3d 288 (Ct. App. 2014). Our analysis of the
Morgan decision can be found
here.
In
Zubia v. Shapiro, 243 Ariz. 412, 408 P.3d 1248 (2018), the Arizona Supreme Court revisited the issue of what claims survive a trustee’s sale, and clarified that if a person fails to enjoin a trustee’s sale prior to its occurrence, then that person waives any and all damages claims dependent upon a trustee’s sale. That person does not, however, waive damages claims that are independent of the sale. Thus, determining what types of claims are “dependent” versus “independent” of a trustee’s sale is of critical importance to lenders and borrowers alike.
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Ben Reeves, Snell & WilmerMr. Reeves may be contacted at
breeves@swlaw.com
Oregon Duty to Defend Triggered by Potential Timing of Damage
June 28, 2013 —
CDJ STAFFThe Oregon Supreme Court has concluded that if it is possible that damage could have occurred prior to the completion of the project, then the policies in effect at that time are triggered. John Green of Farella Braun + Martel LLP writes that “we have long argued that, since the duty to defend exists if there is any ‘potential’ of covered liability, there is a potential that damage happened before that project was completed, or at any time after completion, triggering all policies in that time frame.” The Oregon court concluded that if property damage could have happened during construction, the insuerer had a duty to defend and “the insured had no burden to establish any additional facts to support that potential.”
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Noteworthy Construction Defect Cases for 1st Qtr 2014
April 30, 2014 —
Beverley BevenFlorez-CDJ STAFFJohn A. Husmann and Jocelyn F. Cornbleet of BatesCareyLLP analyzed several noteworthy construction defect cases that have already occurred in 2014, as published in Law360. The cases involved “the ‘occurrence’ requirement, contractual liability exclusion and ‘other insurance’ clauses.” Husmann and Cornbleet summarized Owners Insurance Co. v Jim Carr Homebuilder LLC (Alabama), Pennsylvania National Mutual Casualty Insurance Co. v. Snider (also Alabama), Woodward LLC v. Acceptance Indemnification Insurance Co. (Mississippi), and others.
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Alleged Damage to Personal Property Does Not Revive Coverage for Construction Defects
November 23, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe Illinois Appellate Court determined the general contractor was not covered for construction defects despite allegations of damage to personal property. Wesfield Ins. Co. v. West Van Buren, LLC, 59 N.E. 2d 877, (Ill. Ct. App. 2016).
The developer constructed a condominium development in Chicago. The installation of the roof was contracted to Total Roofing. Total Roofing agreed to insure and indemnify the developer against liability for Total Roofing's work. Total Roofing obtained a CGL policy with Westfield Insurance Company listing the developer as an additional insured.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Traub Lieberman Partner Lisa Rolle Obtains Summary Judgment in Favor of Defendant
November 15, 2022 —
Lisa M. Rolle - Traub LiebermanTraub Lieberman Partner Lisa M. Rolle obtained summary judgment in favor of defendant SRI Fire Sprinkler, LLC, a family-owned and operated fire sprinkler company which generally provides fire sprinkler installation, inspection, and maintenance services throughout the Northeast and New England. The judgment was determined pursuant to CPLR 3211(a)(5) on the grounds that Philadelphia Indemnity Insurance Company’s (Plaintiff) negligent construction claim accrued on the date when work was completed at the premises, not on the date of the incident as alleged in the Plaintiff’s complaint. In the underlying subrogation action, the Plaintiff commenced the action in subrogation of its insured, Bet Am Shalom Synagogue (Bet Am), to recover damages in excess of $173,390.86 which it allegedly paid to Bet Am for water damage cleanup and remodeling after certain sprinkler pipes froze and burst in the recently constructed wing of the Westchester synagogue on January 1, 2019 and January 7, 2019. The Plaintiff alleged that its subrogor, Bet Am, sustained interior water damage on the first floor and basement levels of the premises, including the carpets, drywall, insulation, bathroom, kitchen and appliances, dining room, hallways, closets, basement storage rooms and supplies, and basement classrooms.
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Lisa M. Rolle, Traub LiebermanMs. Rolle may be contacted at
lrolle@tlsslaw.com