New York Federal Court Enforces Construction Exclusion, Rejects Reimbursement Claim
August 03, 2020 —
Eric D. Suben - Traub LiebermanIn Crescent Beach Club, LLC v. Indian Harbor Insurance Company, 2020 WL 3414697 (E.D.N.Y. June 22, 2020), the district court considered application of a CGL policy issued to a property owner containing the following exclusion:
"This policy does not apply to any ‘bodily injury’, ‘property damage’, ‘personal and advertising injury’, or any other loss, cost, defense fee, expense, injury, damage, claim, dispute or ‘suit’ either arising out of, or related to, any construction, renovation, rehabilitation, demolition, erection, excavation or remedition [sic] of any building and includes planning, site preparation, surveying or other other [sic] construction or development of real property. This exclusion, however, shall not apply to routine maintenance activities."
Plaintiff in the underlying action alleged injury while engaged in construction work at the insured’s premises. The information the insurer received was conflicting as to whether plaintiff was demolishing a pergola (excluded) or merely removing vines (not excluded). The insurer reserved its rights accordingly.
At his deposition in the underlying action, the plaintiff testified he was in a manlift performing demolition at the time he was injured. The insured’s property manager also testified that the pergola was being demolished. Approximately one month after the depositions, the insurer denied coverage based on the exclusion.
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Eric D. Suben, Traub LiebermanMr. Suben may be contacted at
esuben@tlsslaw.com
Breath of Fresh Air
February 14, 2023 —
Rachel E. Pelovitz - Construction ExecutiveFor the first time since 2012, the Environmental Protection Agency updated and strengthened air quality standards. Construction sites are responsible for 14.5% of particulate matter in the air and 8% of total emissions in the United States.
With that in mind, Construction Executive has spoken with Serene Al-Momen, Ph.D. and chief executive officer of
Attune, in an exclusive interview. Al-Momen is an expert in air quality and offers her opinion on standards, consequences and the impact on the construction industry—which she has specific experience with due to Attune’s relationship with
Clark Construction, a member of
Associated Builders and Contractors.
CONSTRUCTION EXECUTIVE: What is important about air quality standards in general?
Serene Al-Momen: Air quality standards regulate the amount of pollution that's allowed to be emitted into the atmosphere.
Reprinted courtesy of
Rachel E. Pelovitz, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Environmental Justice: A Legislative and Regulatory Update
November 01, 2021 —
Anthony B. Cavender - Gravel2GavelEnvironmental Justice, as an urgent policy priority of the Federal Government, dates back to 1994, and President Clinton’s issuance of Executive Order 12898. This order directed federal agencies to identify and address, as appropriate, “the disproportionately high and adverse human health and environment effects of its many programs, policies, and procedures on minority populations and low-income populations.” Executive Order 12898 supplements Executive Order 12550 (1980), whose primary legal basis was Title VI of the Civil Rights Act of 1964, in particular, Sections 601 and 602, which prohibit discrimination in programs and activities receiving federal financial aid and assistance.
Over the years, the Supreme Court has reviewed the scope and importance of Title VI. For example, in Alexander v. Sandoval, decided in 2001, the Court concluded that while private parties could sue to enforce Section 601 or its implementing regulations, Section 601 only prohibits intentional discrimination; which is very difficult to prove. In addition, the Court ruled in Sandoval, that private parties cannot sue to enforce regulations implementing Section 602. Perhaps as an acknowledgement of these shortcomings, the Environmental Protection Agency (EPA) has for many years operated an administrative system to process environmental justice complaints (see 40 CFR Part 7). The process is complex and the results—usually whether a state agency has failed to uphold Title VI—have generally been unsatisfactory. To be successful, many proponents of environmental justice believe that a statutory foundation must be established, and significant efforts have been made to do so.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Texas Plans a Texas-Sized Response to Rising Seas
June 27, 2022 —
Francis Wilkinson - BloombergIn coastal Texas and many other places, walled cities are making a comeback. It’s quite a turnabout, as the efficacy of defensive walls had declined precipitously since the age of the long bow. Barbarians still menace, of course. But the rekindled enthusiasm for defensive walls is a response to a different kind of threat.
San Francisco is contemplating a huge tidal wall across its bay to fend off sea rise and the attendant dousing of some of the world’s most expensive real estate. Miami is weighing the damage a sea wall would do to tourist vistas against the damage a rising sea might do absent a wall. New Orleans, after $14 billion in levee construction, is an armored metropolis. Norfolk, Virginia, another low-lying city exposed to a surging sea, is spending a few hundred million federal dollars on a downtown sea wall. New York City, which has flooded in two devastating storms so far this century, is building a $1.45 billion series of walls, floodgates and underground drainage, a modest down payment on the city’s defense against rising tides and storm surge.
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Francis Wilkinson, Bloomberg
The Value of Photographic Evidence in Construction Litigation
April 26, 2021 —
Marie Mueller - Construction ExecutiveIf a picture is worth a thousand words, can it be worth a thousand dollars? Ten thousand? Maybe, if it provides key evidence in a construction dispute. Litigating a construction case involves each side telling their story. Details and visual context make a story compelling. Evidence and corroboration make a story persuasive. Photographs can help on both of these fronts.
The Value of Photographic Evidence in Construction Litigation
Consider the following examples:
- A dispute relates to the timeliness of particular work. An employee has a memory of a load of materials arriving to the site later than it should have, but the records are incomplete or ambiguous about when it actually occurred. If the employee also took a photo of the materials, on the day they arrived, they could match up the date of the photo to their memory and build a clear timeline.
- A dispute relates to the presence or absence of obstructions in drilled shafts. There are no available photographs or videos of the work due to site restrictions. Presentation of this type of case may be severely limited by not being able to show photos depicting the size, shape and type of material removed from the shafts, and by the lack of video depicting the work.
Reprinted courtesy of
Marie Mueller, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Ms. Mueller may be contacted at
mmueller@verrill-law.com
Construction is the Fastest Growing Industry in California
May 20, 2015 —
Garret Murai – California Construction Law BlogWe wrote earlier about why construction workers are the happiest employees on Earth, and pointed to one possible factor: That construction, which was one of the hardest hit industries during the 2008 real estate collapse, has since bounced back.
This past month, the California Employment Development Department (“EDD”) released data putting some numbers to that hypothesis. And the result: According to the EDD, over the past 12 months, construction was the fastest growing industry in California, adding more than 46,000 jobs within the last year, an increase of 6.9% from 667,000 workers in March 2014 to 713,000 workers in March 2015.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Eliminating Waste in Construction – An Interview with Turner Burton
June 29, 2020 —
Aarni Heiskanen - AEC BusinessI had the pleasure of interviewing Turner Burton, President of Hoar Construction. We discussed waste in construction and how his company is on a mission to eliminate it.
Can you say a few words about yourself and your company?
I grew up around construction and this company, hearing about the business from both my grandfather and my father. I started working on job sites in high school forming concrete, continued working on projects throughout college, and since graduating from college, I’ve taken on different roles in the company to ensure I understand all aspects of the business.
Hoar Construction was founded 80 years ago, and throughout our history, we’ve been committed to learning from every project to improve our processes and deliver the best building experience possible for our clients and partners. But it’s the relentless pursuit of improvement that really sets us apart as builders – to always strive to be the best and do the right thing for our customers and partners. There’s something to be said for setting a goal that you’ll always be working toward. It fosters hard work, collaboration, and productive effort. If we’re always working to find a better way, then we will always be improving. That effort drives better results for our owners and everyone we work with. Essentially, we’re always working toward something. Always improving. Always in process.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Blurred Lines: New York Supreme Court Clarifies Scope of Privileged Documents in Connection with Pre-Denial Communications Prepared by Insurer's Coverage Counsel
September 17, 2015 —
Greg Steinberg – White and Williams LLPIn a recent decision, the New York Supreme Court clarified the scope of privileged documents with respect to communications prepared by an insurer’s counsel prior to issuing a denial of coverage letter. The coverage litigation at issue arose out of MF Global Inc.’s claims under fidelity bonds for losses incurred as a result of large trades made by former MF Global employee, Evan Dooley. The trades cost MF Global, Dooley’s former clearing firm, $141 million after it had to reimburse the CME Group, Inc. futures clearinghouse that handled the trade. The insurers that issued the fidelity bonds contested coverage and sued MF Global in 2009.
The opinion underscores the fact that there is no “bright line” rule in New York with respect to disclosure of communications in the insurance context prior to the issuance of a coverage determination – the disclosure requirement will instead turn on what’s actually privileged. In addition, while retention of counsel may not serve as an automatic shield for all documents prepared prior to the coverage decision, insurers will not be required to disclose, among other things, communications which include an “indicia of the provision of legal services.”
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Greg Steinberg, White and Williams LLPMr. Steinberg may be contacted at
steinbergg@whiteandwilliams.com