Project-Specific Commercial General Liability Insurance
May 13, 2019 —
Jeremiah M. Welch - Saxe Doernberger & Vita, P.C.Many markets which provide insurance for construction projects include an endorsement providing coverage for “repair work” as part of their standard policy. “Repair work” endorsements are largely misunderstood by policyholders and the insurance broker community. They are typically assumed to be coverage enhancements, but many provide no additional coverage and actually risk reduction of coverage otherwise provided as part of the products-completed operations (“PCO”) extensions also found in these project-specific policies. This article is designed to help the reader understand these endorsements so that better decisions can be made at the point of purchase.
Intent
The common feature of these endorsements is a grant of coverage for bodily injury and property damage resulting from “repair work” for a specified period of time. Most endorsements define “repair work” to mean the repair of completed work performed pursuant to a contract or warranty.
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Jeremiah M. Welch, Saxe Doernberger & Vita, P.C.Mr. Welch may be contacted at
jmw@sdvlaw.com
Construction News Roundup
September 19, 2022 —
Christopher G. Hill - Construction Law MusingsMuch happened in the last week or so in Virginia construction, both legally and otherwise. I thought a quick roundup was in order.
On the green front we has a great article in ENR relating to the liability risk of green building and the great interest in the
AGCVA Green Building Breakfast.
Also, the Virginia courts decided several interesting cases:
The first is Travelers Property Cas. Co. of America a/s/o Covenant Woods v. Premier Project Mgmt. Group LLC v. Haskell Co. a case that reminds everyone that waivers of third party rights under the contract will be enforced in Virginia.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Google’s Biggest Moonshot Is Its Search for a Carbon-Free Future
November 15, 2021 —
Mark Bergen - BloombergGoogle Bay View, the company’s newest campus, consists of three squat buildings nestled near the San Francisco Bay shoreline a few miles east of its headquarters in Mountain View, Calif. The first things visitors notice are the roofs.
They curve down gently from pinched peaks, like circus tents, sloping almost to the ground. Each roof is blanketed with overlapping solar panels that glisten with a brushed metal sheen on the edges. Google calls this design Dragonscale, and indeed it looks as if a mystical beast is curled up by the water in Silicon Valley.
Google envisions its latest campus as the embodiment of a grander ambition to run its operations entirely free of carbon. The company plans to open Bay View in January to “a limited number” of employees, depending on the pandemic. Beneath the buildings, thousands of concrete pillars plunged into the ground will serve as a sort of geothermal battery, storing heat to warm the building and water supply without natural gas. The roof panels were constructed with a unique textured glass to prevent glare and with canopies that emit a soft, glowing light into the spacious atria inside. “We call this the Cathedral of Work,” says Asim Tahir, who oversees energy decisions in Google’s real estate division. He stands by the southern entrance in a hard hat, mask, and safety vest.
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Mark Bergen, Bloomberg
When is Construction Put to Its “Intended Use”?
October 10, 2013 —
Brady Iandiorio — Higgins, Hopkins, McLain & Roswell, LLC.Defining words and phrases in the law can be a tricky proposition. In everyday life one would presume to know what the phrase “intended use” would mean, but when it comes to litigation, oftentimes the definitions become much more nuanced.
On March 12, 2013, in the Bituminous Cas. Corp. v. Hartford Cas. Ins. Co. v. Canal Ins. Co., WL 950800 (D. Colo. 2013) case, Senior District Court Judge Wiley Y. Daniel denied Third-Party Defendant Canal Insurance Company’s (“Canal”) motion to dismiss Third-Party Plaintiff Hartford Casualty Insurance Company’s (“Hartford”) third-party complaint. The case arose out of a liability insurance coverage dispute related to an underlying construction defect lawsuit. In the construction defect suit, a plaintiff homeowner’s association brought a suit against a developer and a general contractor (“GC”) among others. While the underlying action was settled, a dispute remained between Bituminous Casualty Corporation, which insured the GC, and Hartford, which insured the developer.
Hartford asserted third-party claims against Canal seeking a declaration of Canal’s obligations and contribution in the event Hartford owed any defense or indemnity obligations to the GC. Hartford’s claims are based on the premise that Canal owed a duty to defend and/or indemnify the GC in the underlying action.
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Brady IandiorioBrady Iandiorio can be contacted at
Iandiorio@hhmrlaw.com
Three Reasons Late Payments Persist in the Construction Industry
December 22, 2019 —
Patrick Hogan - Construction ExecutiveConstruction professionals are all too familiar with the payment issues that plague the construction industry. Contractors, subcontractors and material suppliers often have to deal with payment delays and even nonpayment—affecting cash flow and their ability to meet expenses.
According to an Atradius study, a quarter of all B2B invoices issued in North America are overdue. The construction industry accounted for one-third of those past-due invoices, and many contractors and construction business owners do not have a positive outlook on the industry's payment issues. The same survey found 55% of U.S. firms think there will be no change in the industry’s payment practices over the coming months—one-third even expects an increase in late payments.
These findings show that managing cash flow is a significant challenge in the construction industry. Having a negative cash flow will push the company toward financial trouble, which may ultimately lead to its demise. Understanding the reasons why payment issues persist in construction will help contractors protect their business, prevent these issues from happening or at least minimize their effect on the current operations.
Reprinted courtesy of
Patrick Hogan, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Florida Lawmakers Fail to Reach Agreement on Condominium Safety Bill
March 14, 2022 —
Community Associations InstituteFalls Church, March 11, 2022 (GLOBE NEWSWIRE) -- Members of the Florida legislature did not reach an agreement on legislation that would require building inspections and mandatory reserve studies for certain condominium and cooperative communities prior to this session's adjournment, despite the tireless efforts from Sen. Jennifer Bradley (R-Orange Park) and Rep. Daniel Perez (R-Miami) as well as CAI advocates to pass legislation that would contribute to condominium safety after the tragic collapse of Champlain Towers South in Surfside, Fla., last June.
The Virginia General Assembly recently passed legislation introduced by Sen. Scott Surovell (D-Fairfax, VA) that requires the Virginia Housing Commission to study condominium safety issues, specifically building inspections. The Maryland legislature is considering funding for condominium buildings in need of critical repairs, while Hawaii is considering building inspection requirements for condominiums.
Learn more about CAI's efforts to improve condominium safety by visiting www.caionline.org/condosafety.
About Community Associations Institute
Since 1973, Community Associations Institute (CAI) has been the leading provider of resources and information for homeowners, volunteer board leaders, professional managers, and business professionals in the more than 355,000 homeowners associations, condominiums, and housing cooperatives in the United States and millions of communities worldwide. With more than 42,000 members, CAI works in partnership with 36 legislative action committees and 63 affiliated chapters within the U.S., Canada, South Africa, and the United Arab Emirates as well as with housing leaders in several other countries, including Australia, Spain, and the United Kingdom. A global nonprofit 501(c)(6) organization, CAI is the foremost authority in community association management, governance, education, and advocacy. Our mission is to inspire professionalism, effective leadership, and responsible citizenship—ideals reflected in community associations that are preferred places to call home. Visit us at www.caionline.org, and follow us on Twitter and Facebook @CAISocial.
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Sanctions Issued for Frivolous Hurricane Sandy Complaint Filed Against Insurer
February 26, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe federal district court for the district of New Jersey cracked down on a Texas law firm that filed 250 Hurricane Sandy related cases against insurers without adequate investigation. Lighthouse Point Marina & Yacht Club, LLC v. Int'l Marine Underwriters, 2015 U.S. Dist. LEXIS 6430 (D. N.J. Jan. 20, 2015).
The Texas firm filed more that 250 actions in New Jersey courts against insurers to recover for alleged property damage caused by Hurricane Sandy. The original complaints were nearly identical with the same typos. The complaint in this case alleged that the insurer did not pay benefits under the policy for "extreme external and internal damages, as well as other wind-related loss," but did not specify the value or nature of the damage. The insurer answered that it sent an adjuster to the property soon after the storm and found wind damages to two fences, but no damage to any building on the property. The adjuster valued the claim at $1,612.00 and recommended a payment of $612.00, after applying the $1000 deductible.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Good Ole Duty to Defend
August 02, 2017 —
David Adelstein - Florida Construction Legal UpdatesThe good ole duty to defend. Certainly, a duty that should not be overlooked.
A commercial general liability insurer has two duties to its insured when it comes to third-party claims: 1) the duty to defend its insured and 2) the duty to indemnify its insured.
The insurer’s duty to defend its insured will always be broader than its duty to indemnify because this duty is triggered by the allegations in the lawsuit. (For this precise reason, insurers will oftentimes defend their insured under a reservation of rights.) The duty to defend is a very important duty as it is the first duty that typically comes into play when a third-party claim / action is initiated against the insured. Getting the insurer on board to provide a defense is an initial focus. One that cannot be neglected or overlooked.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com