EEOC Suit Alleges Site Managers Bullied Black Workers on NY Project
June 15, 2020 —
Emell D. Adolphus - Engineering News-RecordBullying, threats and racial slurs detail alleged “hostile” working conditions for black employees at a now complete cement plant modernization project near Albany, N.Y., in a lawsuit filed June 2 by the U.S. Equal Employment Opportunity Commission against CCC Group Inc., a San Antonio, Texas-based general contractor.
Emell D. Adolphus, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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Resulting Loss From Faulty Workmanship Covered
May 20, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Washington Supreme Court found there was coverage for resulting loss despite the original faulty contraction, an exclusion in the policy. Gardens Condominium v. Farmers Ins. Exchange, 544 P.3d 499 (Wash. 2024).
Farmers issued a policy to Gardens Condominium providing coverage for loss or damage caused by a "Covered Cause of Loss." "Covered Cause of Loss" was defined as any risk of direct physical loss. However, a loss was not covered if it was caused by an excluded event. The policy further provided that damage was caused by an excluded event if that event "initiates a sequence of events that results in loss or damage, regardless of the nature of any intermediate or final event in that sequence." The policy excluded coverage for faulty, inadequate, or defective design, specifications, workmanship, repair, construction, or renovation. The faulty workmanship exclusion also contained a resulting loss exception: "[I]f loss or damage caused by a Covered Cause of Loss results, we will pay for that resulting loss or damage."
Gardens found damage to the building that was caused by faulty design and construction of the building's roof. There was insufficient interior vents and the design of the rafters and joists prevented need ventilation Water vapor condensed on the underside of the roof sheathing, causing damage. Gardens redesigned and repaired the roof assembly to increase ventilation and eliminate condensation by installing sleepers on top of the joists.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Colorado Court of Appeals to Rule on Arbitrability of an HOA's Construction Defect Claims
November 20, 2013 —
W. Berkeley Mann, Jr. — Higgins, Hopkins, McLain & Roswell, LLCOn October 24, 2013 the Colorado Court of Appeals granted a rare interlocutory appeal in a multi-family residential construction defect case. The Court of Appeals accepted the case ofTriple Crown at Observatory Village Association, Inc. v. Village Homes of Colorado, Inc.(2013 WL 5761028) as an interlocutory appeal after the parties briefed and obtained rulings from the trial court that compelled the case to binding arbitration in lieu of a jury trial on all issues. The appellate decision of October 24, 2013 did not decide the merits of the case, but discussed the issues to be decided in the eventual merits decision. The significance of the issues presented and the interlocutory nature of this appeal both make this case worth watching for further appellate proceedings.
The core issue in this appeal was the applicability of Colorado’s Uniform Arbitration Act (C.R.S. § 13-22-201, et seq.), based on recorded Declarations filed by the developer. The Declarations mandated that the HOA arbitrate any design/construction disputes with the developer. Immediately prior to suit, the Association sought to amend the Declarations in order to avoid the arbitration process for these claims. The interlocutory appellate issues resulted from the trial court’s order compelling the arbitration over the objections of the Association.
The trial court’s decision was based on a reading of the Colorado Revised Non-Profit Corporation Act (“CRNPC,” at C.R.S. § 7-127-107), which was found applicable to the Association.
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W. Berkeley Mann, Jr.W. Berkeley Mann, Jr. can be contacted at
mann@hhmrlaw.com
Not All Design-Build Projects are Created Equal
June 28, 2021 —
Nicole Markowitz & Richard Robinson - Peckar & Abramson, P.C.As the need for faster and more efficient construction increases, design-build agreements are growing in popularity. Design-build projects may account for 44% of nonresidential building in the United States this year. However, contractors who venture into a “design builder” role may unexpectedly become liable for design errors/omissions that are not covered by their insurance policies. In turn, they may expose themselves to liability and insurance risks that are neither insured nor managed.
In this article, we’ll discuss how the contractor who becomes a design-builder, or performs design-related work through subcontractors, faces potentially unmanaged risk. We will also explore indemnity, warranty, and insurance traps by paying attention to contract language in both traditional design-build and design-assist scenarios.
Reprinted courtesy of
Nicole Markowitz, Peckar & Abramson, P.C. and
Richard Robinson, Peckar & Abramson, P.C.
Ms. Markowitz may be contacted at nmarkowitz@pecklaw.com
Mr. Robinson may be contacted at rrobinson@pecklaw.com
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Florida Courts Say that Developers Are Responsible for Flooding
July 31, 2013 —
CDJ STAFFThe Florida Supreme Court recently handed down a decision that developers can be held responsible if problems with infrastructure lead to damage to homes. Aaron Kase, writing on Lawyers.com, reviews the case, noting that the court said that “habitability of a home is impacted by stagnant standing water and the erosion of soil upon which the home is constructed. One need not wait until floodwaters inundate the home or the erosion swallows the residential structure to find protection.”
Kase notes that a trial court “sided with the developers’ argument that because the water infrastructure didn’t immediately support the houses, implied warranties of fitness and habitability shouldn’t apply and they shouldn’t be liable.” This was overturned at the district court, with the Supreme Court upholding the district court decision. Lisa Wilcox of Wilcox Law notes that “the Supreme Court determined that the warranty of habitability should be applied to protect home buyers from defects in the construction of these essential services even though they are not part of a home’s completed structure.”
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London Shard Developer Wins Approval for Tower Nearby
November 05, 2014 —
Neil Callanan - BloombergSellar Property Group, developer of the Shard in London, won local government approval to build a 26-story residential tower close to the skyscraper on the south bank of the River Thames.
The council for the Southwark borough voted in favor of the 148-apartment project, which also includes a 16-story tower, at a meeting yesterday, Sellar spokesman Baron Phillips said by e-mail. The project, like the Shard, will be developed in a partnership with the state of Qatar.
Developers plan to construct more than 25,000 luxury properties in London worth more than 60 billion pounds ($96 billion) over the next decade, EC Harris said in an Oct. 7 report. The homes approved yesterday at the Fielden House site are expected to sell for about 800,000 pounds each, according to a filing by the borough.
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Neil Callanan, BloombergMr. Callanan may be contacted at
ncallanan@bloomberg.net
Appraisers’ Failure to Perform Assessment of Property’s Existence or Damage is Reversible Error
July 30, 2015 —
Christopher Kendrick and Valerie A. Moore – Haight Brown & Bonesteel LLPIn Lee v. California Capital Insurance Co. (No. A136280; filed 6/18/15), a California Court of Appeal held that it was error for an appraisal panel to assign loss values to items simply because they were listed in the insured’s scope of loss, and regardless of whether inspection revealed they were undamaged or never existed.
California Capital insured a twelve unit apartment building owned by Ms. Lee in Oakland, California. When a fire damaged one unit, the insurer prepared an estimate of $69,255 and paid an undisputed amount of $46,755, which was the amount of the estimate less depreciation and the deductible.
But Ms. Lee claimed that six of the units had been damaged, and she retained a public adjuster who submitted a claim exceeding $800,000. This included cleaning, asbestos abatement, reconstruction of the affected apartments, and loss of rent. She claimed burn damage to one unit and smoke damage requiring complete replacement of all the interior rooms of five apartments, along with removal of a portion of the stucco exterior and iron balcony railings and repainting of the entire building.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com; Ms. Moore may be contacted at vmoore@hbblaw.com
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Ohio Supreme Court Case to Decide Whether or Not to Expand Insurance Coverage Under GC’s CGL Insurance Policies
August 14, 2018 —
David Suggs – Bert L. Howe & Associates, Inc.According to W. Matthew Bryant of Saul Ewing Arnstein & Lehr LLP, the Ohio Supreme Court will be deciding whether or not a general contractor's commercial general liability ("CGL") insurance policy may provide coverage for damage caused by a subcontractor's defective construction work.
Bryant explained the status quo in Ohio: “Since 2012, Ohio has followed the rule that a CGL policy would not cover damage caused by a contractor to the contractor's own work.” That could change depending on how the Ohio Supreme Court rules in an upcoming case: “The Ohio Supreme Court will decide whether to affirm or overturn Ohio Northern University v. Charles Construction Services, Inc., 77 N.E.3d 538 (Ohio Ct. App. 2017) ("ONU"), an Ohio Court of Appeals decision holding that CGL coverage may exist for property damage caused by faulty work performed by the subcontractor of an insured general contractor.”
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