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DIRECTORY AND CAPABILITIES

A “Flood” of Uncertainty; Massachusetts SJC Finds Policy Term Ambiguous

August 26, 2024 — Michael S. Levine & Torrye Zullo - Hunton Insurance Recovery Blog
The highest court in Massachusetts recently held that term “Flood” and the associated phrase “surface waters,” as used in two all-risk insurance policies, is ambiguous in the context of water that accumulated on a parapet roof and rooftop courtyard, thereby negating the insurers’ attempt to limit coverage to a sublimited coverage for “Flood.” Background In June 2020, a severe storm caused damage to Norwood Hospital, owned by Medical Properties Trust, Inc. (“MPT”) and leased to Steward Health Care System (“Steward”), the policyholders. The relevant portion of the damage included damage from rain that accumulated on the rooftop courtyard and seeped into the interior of the building causing damage to the building and its contents. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Torrye Zullo, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Ms. Zullo may be contacted at tzullo@HuntonAK.com Read the court decision
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Housing Woes Worse in L.A. Than New York, San Francisco

September 03, 2014 — Nadja Brandt and John Gittelsohn – Bloomberg
Jeanette Cross took out a payday loan to cover her May rent of $1,600 in South Los Angeles. She skipped car and insurance payments to keep a roof over her head. “I’m further and further behind,” Cross, a 34-year-old single mother of four, said in a telephone interview. “I make a payment on one thing and don’t pay others.” She isn’t alone. Angelenos use a bigger slice of their paychecks on shelter than people in New York, San Francisco or Miami, studies show. Surging property prices in the second-largest U.S. city are driving up costs in once-impoverished areas while pushing lower-income households into converted garages or to distant suburbs, where the tradeoff is hours stuck in traffic each day. Reprinted courtesy of Nadja Brandt, Bloomberg and John Gittelsohn, Bloomberg Ms. Brandt may be contacted at nbrandt@bloomberg.net; Mr. Gittelsohn may be contacted at johngitt@bloomberg.net Read the court decision
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Florida Federal Court to Examine Issues of Alleged Arbitrator Conflicts of Interests in Panama Canal Case

May 24, 2021 — Sarah B. Biser & Philip Z. Langer - ConsensusDocs
The parties in a $238-million dispute over the construction of the third set of locks for the Panama Canal are raising issues concerning alleged conflicts of interest on the part of the International Chamber of Commerce (“ICC”) arbitrators in the United States District Court for the Southern District of Florida.[2] The case may address rarely litigated issues concerning whether arbitrators who sit on multiple arbitration panels together or who support appointment of each other to lead arbitration panels have disabling conflicts of interest. The case pits Grupo Unidos por el Canal, S.A. (“Grupo”), a consortium of Spanish, Italian, Belgian, and Panamanian construction firms, against Autoridad del Canal de Panama (“ACP”), the Panamanian entity that operates the Panama Canal and that sponsored the multi-billion-dollar, decade-long project to expand the Canal’s capacity by building a new set of locks (the “Project”). The current dispute (the “Panama 1 Arbitration”), which centers on the suitability of the rock coming from the excavations to be used to produce concrete aggregates for the Project, was arbitrated before a three-member ICC Tribunal and resulted in a $238-million award to ACP and against Grupo. The ICC Tribunal reversed a decision of the dispute review board established in the parties’ contract. Reprinted courtesy of Sarah B. Biser, Fox Rothschild LLP and Philip Z. Langer, Fox Rothschild LLP Ms. Biser may be contacted at sbiser@foxrothschild.com Mr. Langer may be contacted at planger@foxrothschild.com Read the court decision
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Construction Defect Case Not Over, Despite Summary Judgment

November 07, 2012 — CDJ STAFF
The Supreme Court of Oregon has concluded in an en banc decision that a motion to reconsider a summary judgment is not a motion for a new trial. In coming to their conclusion the court overturned an earlier Oregon Supreme Court case, Carter v. U.S. National Bank. Although the decision does not bear on construction defects, the underlying case did. Due to the decision, these claims can now be evaluated in a trial. The case, Association of Unit Owners of Timbercrest Condominiums v. Warren, came about after an apartment complex was converted into condominium units. The developers hired Big Al’s Construction for some of the remodeling work. The condominium association later sued the developer and the contractor over claims of construction defects. The defendants filed a motion for summary judgment, which the court granted. But that wasn’t the end of things. The plaintiff soon filed a “motion to reconsider,” noting that the summary judgment seemed to be in conflict with both law and other recent rulings, and additionally, the grounds for the decision were not in the order. The judge then notified the parties that the court had “pulled the trigger too quickly” and had seven questions for the parties to answer. The court dismissed all claims against the defendants. The defendants filed their responses, objecting that that “‘there is no such thing’ as a motion for reconsideration.” Further, while “the rules do allow for post-judgment review of pre-judgment rulings through a motion for a new trial,” the plaintiffs had not filed for a new trial. But did they need one? They did file an appeal. The judge in the case admitted that there was no such thing as a motion to reconsider, and felt bad about prematurely signing the judgment. The case was sent to the Court of Appeals to determine if the motion to reconsider was a request for a new trial. The Court of Appeals concurred. In reviewing the decision, the Oregon Supreme Court concluded that there were a maximum of three questions to address. Was the motion for reconsideration a motion for a new trial? If so, was the later notice of appeal premature? And if so, was the plaintiff required to file a new appeal? The court determined that the answer to the first question was no. Prior decisions pointed to the conclusion “that a motion for reconsideration of a summary judgment amounts to a motion for a new trial,” but here the court concluded that “our prior cases erred,” and turned to the summary judgment rule for clarification. The court noted that “the rule contemplates that summary judgment and trial are separate and distinct events.” With this conclusion, the Oregon Supreme Court remanded the case to the Court of Appeals for further proceedings. Read the court decision
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Homeowners May Not Need to Pay Lien on Defective Log Cabin

July 01, 2011 — CDJ STAFF

The Idaho Supreme Court has ruled in the case of Perception Construction Management v. Bell. The Bells hired PCM to build a log home, agreeing to play monthly invoices in full within ten days. The Bells paid the first four invoices in full, part of the fifth, and ceased payment after that. Beofre seventh invoice, the Bells terminated the contract and hired a new contractor. PCM filed a claim of lien and ceased work.



The Bells responded that PCM was in breach of contract and had failed to fulfill the contract in a workmanlike manner. They claimed construction defects and in the lien suit, sought to include testimony from an architect and a plumber reviewing PCM’s work. The court only allowed the architect to testify as to whether the amount of the lien was reasonable. No testimony was permitted from the plumber.



The Idaho Supreme Court concluded that the claims of construction defects were important to case and remanded it to the lower court for a new trial taking into evidence that Bell’s contention that PCM’s work was defective.

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Skyline Bling: A $430 Million Hairpin Tower and Other Naked Bids for Tourism

January 21, 2015 — Toluse Olorunnipa – Bloomberg
American cities are starting an architectural arms race to the sky with super-sized Ferris wheels, a 100-story observation tower and maybe even a mammoth golf ball atop a 300-foot tee planted in the Arizona desert. From Phoenix to Camden, New Jersey, city officials and developers are seeking to punctuate their skylines with exclamation points, vying for the world’s attention with the next Eiffel Tower or London Eye. Read the court decision
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Reprinted courtesy of Toluse Olorunnipa, Bloomberg
Mr. Olorunnipa may be contacted at tolorunnipa@bloomberg.net

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What I Love and Hate About Updating My Contracts From an Owners’ Perspective

July 25, 2022 — ConsensusDocs
The Construction Owners Association of America (COAA) is the largest association of construction owners in the United States. COAA just held its Spring Connect conference in downtown Baltimore on the University of Maryland, Baltimore (UMB) campus. One session featured “What I Love and Hate About Updating My Contracts from an Owners’ Perspective.” ConsensusDocs’ Executive Director & Senior Counsel Brian Perlberg spoke on a panel with Joe Cleves of Taft Law and Pen Wolf from the Cleveland Clinic. Pen Wolf from Cleveland Clinic outlined the process he used to update his contracts recently. The Cleveland Clinic builds facilities annually and owns different facilities at different locations. The clinic employs over 75,000 employees. For an owner with a broad reach like the Cleveland Clinic, Wolf recommended using outside counsel with construction expertise to update contracts. He concluded that while it was a significant effort, the endeavor to update the Clinic’s contracts was absolutely worth the time commitment and expense. Wolf shared that updating the Clinic’s contracts has generated positive reviews internally and externally. Now their written agreements better reflect their business practices in their construction design and construction program. Read the court decision
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Alaska Civil Engineers Give the State's Infrastructure a "C-" Grade

February 28, 2022 — American Society of Civil Engineers
JUNEAU, Alaska — The Alaska Section of the American Society of Civil Engineers (ASCE) today released preliminary findings from the 2021 Report Card for Alaska's Infrastructure, with the full report slated to be released in coming weeks. Alaska civil engineers gave 12 categories of infrastructure an overall grade of a 'C-' meaning the state's infrastructure is in mediocre condition and requires attention. Alaska has consistently maintained its transportation infrastructure, solid waste and energy sectors despite omnipresent environmental threats, seismic events, permafrost and shore erosion. However, some sectors such as drinking water, wastewater, and Alaska's marine highways have fallen behind due to a lack of funding to keep up with current and future needs. Civil engineers graded aviation (C), bridges (B-), dams (C), drinking water (D), energy (C-), marine highways (D), ports and harbors (D+), rail (C), roads (C), solid waste (C), transit (B-) and wastewater (D). "Our systems and state agencies have demonstrated commendable resilience in the face of seismic events and other natural disasters," said David Gamez, co-chair, 2021 Report Card for Alaska's Infrastructure. "Unfortunately, we face many other threats, ranging from shore erosion to permafrost, major temperature fluctuations and avalanches. We must keep our foot on the gas to address current and future challenges to prevent power outages, road closures, suspended drinking water services, and many more vital services." To view the report card and all 12 categories, visit https://infrastructurereportcard.org/state-item/alaska/. 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. Read the court decision
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