Coverage Found for Faulty Workmanship Damaging Other Property
January 06, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe district court found that under Illinois law, the damage caused by the insured's faulty workmanship to portions of building beyond the scope of its own work was covered under a CGL policy. Westfield Ins. Co. v. Nat'l Decorating Serv., 2015 U.S. Dist. LEXS 159140 (N.D. Ill. Nov. 25, 2015).
200 North Jefferson, LLC was the owner and developer of a 24- story condominium building. 200 North Jefferson retained as the general contractor McHugh Construction Co. McHugh Construction retained National Decorating Service, Inc. as the subcontractor to perform all painting work on the project.
The Condominium Association sued 200 North Jefferson, McHugh Construction, MCZ/Jameson Development Group, LLC, National Decorating for faulty workmanship. The alleged damages included:(1) cracking of the exterior concrete walls, interior walls and ceilings; (2) significant leakage through the exterior concrete walls, balconies, and windows; (3) defects to the common elements of the building; and (4) damage to the interior ceilings, floors, interior painting, drywall and furniture in the units.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
General Contractors Can Be Sued by a Subcontractor’s Injured Employee
November 05, 2014 —
Craig Martin - Construction Contractor AdvisorGeneral contractors that exercise control over the worksite can be sued by a subcontractor’s injured employee. The Nebraska Supreme Court’s recent opinion, Gaytan v. Wal-Mart, should serve as a reminder that general contractors may be responsible for the safety of all workers on a job site.
In this case, a roofing subcontractor’s employee died after falling through the roof of the under-construction Wal-Mart. The deceased employee’s estate sued Wal-Mart and Gram Construction, the general contractor, alleging that they were negligent in maintaining a safe worksite.
The court initially acknowledged that an owner, the employer of an independent contractor, does not typically owe a subcontractor’s employee a duty because the owner typically has no control over the manner in which the work is to be done by the contractor. This general rule, however, has exceptions, such as where the owner retains control over the contractor’s work. But, for the exception to apply, the owner must have (1) supervised the work that caused the injury, (2) actual or constructive knowledge of the danger that caused the injury, and (3) the opportunity to prevent the injury.
Read the court decisionRead the full story...Reprinted courtesy of
Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Insurance Company’s Reservation of Rights Letter Negates its Interest in the Litigation
November 12, 2019 —
Frank Ingham - Colorado Construction LitigationThe Colorado Court of Appeals held that an insurance company, which issues a reservation of rights letter to its insured, loses its interest in the litigation, pursuant to C.R.C.P. 24(a)(2), when the insured settles the claims and assigns the bad faith action against the insurance company to the plaintiff. Bolt Factory Lofts Owners Association, Inc. v. Auto-Owners Insurance Company, 2019WL 3483901(Colo. App. 2019).
In a 2016 lawsuit in Denver District Court, 2016CV3360, the Bolt Factory Loft Owners Association, Inc. (“Association”) asserted construction defect claims against six contractors. Two of those contractors then asserted claims against other subcontractors, including Sierra Glass Co., Inc. (“Sierra Glass”). After multiple settlements, the only remaining claims were those the Association, as assignee of the two contractors, asserted against Sierra Glass.
Auto-Owners Insurance Company (“AOIC”) issued policies to Sierra Glass and defended it under a reservation of rights. The policy afforded AOIC the right to defend Sierra Glass, and it required Sierra Glass to cooperate in the defense of the legal action. The Association presented a settlement demand of $1.9 million to Sierra Glass, which AOIC refused to pay. To protect itself from an excess judgment that AOIC might not have paid, Sierra Glass entered into an agreement with the Association whereby Sierra Glass would refrain from offering a defense at trial and assign its bad faith claim against AOIC to the Association in exchange for the Association’s promise that it would not pursue recovery against Sierra Glass of any judgment entered against it at trial. Such agreements, known as Bashor or Nunn Agreements, are allowed in Colorado. Nunn v. Mid-Century Insurance Co., 244 P.3d 116 (Colo. 2010). Therefore, Sierra Glass was entitled to protect itself in the face of AOIC’s potential denial of coverage and refusal to settle. Bolt Factory Lofts, at ¶ 15.
Read the court decisionRead the full story...Reprinted courtesy of
Frank Ingham, Higgins, Hopkins, McLain & Roswell, LLCMr. Ingham may be contacted at
ingham@hhmrlaw.com
White and Williams Earns Tier 1 Rankings from U.S. News "Best Law Firms" 2020
December 22, 2019 —
White and Williams LLPWhite and Williams has achieved national recognition from U.S. News and World Report as a "Best Law Firm" in the practice areas of Insurance Law and Media Law. Our Boston, New York and Philadelphia offices have also been recognized in their respective metropolitan regions in several practice areas. Firms included in the “Best Law Firms” list are recognized for professional excellence with persistently impressive ratings from clients and peers. Achieving a tiered ranking signals a unique combination of quality law practice and breadth of legal experience.
National Tier 1
Insurance Law
National Tier 3
Media Law
Metropolitan Tier 1
Boston
Product Liability Litigation – Defendants
Delaware
Product Liability Litigation – Defendants
New Jersey
Labor Law – Management
Philadelphia
Commercial Litigation
Insurance Law
Medical Malpractice Law – Defendants
Personal Injury Litigation – Defendants
Personal Injury Litigation – Plaintiffs
Metropolitan Tier 2
Boston
Insurance Law
Delaware
Medical Malpractice Law – Defendants
New Jersey
Employment Law - Management
Litigation - Labor & Employment
Philadelphia
Bet-the-Company Litigation
Legal Malpractice Law – Defendants
Media Law
Real Estate Law
Tax Law
Trusts & Estates Law
Metropolitan Tier 3
New York City
Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law
Philadelphia
Appellate Practice
Construction Law
First Amendment Law
Litigation – Construction
Litigation – Labor & Employment
Patent Law
Read the court decisionRead the full story...Reprinted courtesy of
White and Williams LLP
Construction Contract’s Scope of Work Should Be Written With Clarity
March 06, 2023 —
David Adelstein - Florida Construction Legal UpdatesThe scope of work section in your construction contract should never be overlooked. In numerous instances, it is overlooked which leads to a dispute as to the precise nature of the scope of work. This dispute could be the result of an ambiguity in the scope of work section. Or it could be the result of an omission. Or it could be the result of a lack of clarification. Or it could be the result of not properly reviewing and vetting the scope of work section. This is a section—whether included in the body of your contract or attached as an exhibit—you absolutely, positively want clarity. Otherwise, you are potentially setting yourself up for a future dispute that could include (i) an additional work / change order dispute, (ii) an incomplete work dispute, or (iii) a failure to properly perform your work dispute. These are all disputes you want to avoid, and many times can avoid, by going through and negotiating the scope of work section to bring clarity to this section. Remember, clarity is a positive. Ambiguity or uncertainty is a negative.
An example of such an avoidable scope of work dispute can be found in All Year Cooling and Heating, Inc. v. Burkett Properties, Inc., 2023 WL 2000991 (Fla. 4th DCA 2023). Here, an air conditioning contractor was hired to install six new split air conditioning systems. The scope of work provided that there were currently “two split systems that are currently existing, working perfectly and are not to be replaced as part of this contract.” The property manager claimed the air conditioning contractor was required to bring these two existing split air conditioning systems up to code as the contract provided that notwithstanding anything to the contrary, the contractor “will certify and shall ensure that all split systems in the building, upon completion of all the work, will be fully compliant with all codes and regulations and shall be responsible for any costs relates to the implementation and/or remediation of same.”
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Texas School System Goes to Court over Construction Defect
December 30, 2013 —
CDJ STAFFThe Zapata County Independent School District filed a lawsuit against Satterfield and Pontikes, claiming construction defect in two schools and two gyms that the company built for the district, according to the Laredo Morning Times. The company built two elementary schools, Zapata South and Fidel & Andrea Villarreal, and the gyms were built at Zapata North and Arturo L. Benavides. The case is scheduled to reach the courtroom in January, 2014.
Read the court decisionRead the full story...Reprinted courtesy of
Stay of Coverage Case Appropriate While Court Determines Arbitrability of Dispute
April 22, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Fifth Circuit vacated a discovery order issued by the district court and remanded the case for issuance of a stay while the arbitrability of the coverage dispute was reviewed. Cameron Parish Recreation #6 v. Indian Harbor Ins. Co., et al., 2024 U.S. App. LEXIS 3804 (5th Cir. Feb. 19, 2024).
The plaintiffs purchased surplus lines polices from various insurance companies to provide coverage for commercial properties. The policies included an arbitration provision for resolving any disputes. After plaintiffs were denied coverage for damage to their properties from Hurricane Laura, they sued the insurers. The insurers filed motions to compel arbitration and to stay the case. The district court refused the stay and ordered limited discovery into arbitrability. The insurers appealed.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Capitol View-Corridor Restrictions Affect Massing of Austin’s Tallest Tower
October 17, 2023 —
David M. Brown - Engineering News-RecordThe stepped-back profile of a 66-story skyscraper in Austin, which will be the state capital’s tallest building when completed this fall, is a consequence of the city's height and massing limits to keep the view corridor to the capitol's dome unblocked.
Reprinted courtesy of
David M. Brown, Engineering News-Record
ENR may be contacted at enr@enr.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of