Cambridge Massachusetts Building Expert Directory

Court Holds That Parent Corporation Lacks Standing to Sue Subsidiary’s Insurers for Declaratory Relief

May 12, 2016 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In D. Cummins Corp. v. U.S. Fidelity & Guaranty (no. A142985, filed 3/30/16), a California Court of Appeal upheld the dismissal of a declaratory relief action filed by the parent holding company of an insured corporation seeking coverage for asbestos claims. Cummings Corp. installed asbestos containing products in California. It had been insured by USF&G between 1969 and 1992. Cummings Holding, LLC was the parent and majority shareholder of Cummings Corp., which had no assets. The holding company claimed to be “the sole entity responsible for managing the affairs of Cummins Corp., including making decisions as to litigation strategy, resolution and settlement,” and sued USF&G seeking a declaratory judgment that the insurer was obligated to defend and/or indemnify Cummins Corp., “in full, including, without limitation, payment of the cost of investigation, defense, settlement and judgment . . . , for past, present and future Asbestos Suits.” The insurer demurred on the ground that the holding company had insufficient interest in its insurance policies and, consequently, lacked standing to sue for declaratory relief. Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Read the court decision
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Texas Supreme Court Rules on Contractual Liability Exclusion in Construction Cases

January 22, 2014 — Beverley BevenFlorez-CDJ STAFF
The Texas Supreme Court ruled on Ewing v. Amerisure Ins. Co. on January 17th, a “much-anticipated” decision according to Carl A. Salisbury of Kilpatrick Townsend & Stockton LLP. “Construction projects are always the subject of contracts among owners and contractors” Salisbury stated in his article on Lexology.com. The recent decision demonstrates that “an exclusion in the standard Comprehensive Liability Insurance policy that precludes coverage for ‘liabilities assumed under contract’” does not usually “apply to construction contracts.” In 2008, Ewing Construction Company built a set of tennis courts in Corpus Christi, according to Salisbury. “Shortly after construction was complete, according to the school district, ‘the courts started flaking, crumbling, and cracking, rendering them unusable for their intended purpose of hosting competitive tennis events.’” After the school district sued Ewing in state court, Ewing “turned the suit over to Amerisure, its CGL insurer, seeking a defense and indemnity. Amerisure denied all coverage, citing the contractual liability exclusion in its policy. This inspired Ewing to sue the carrier in federal district court for the Southern District of Texas.” After several rulings and appeals, the case eventually reached the Texas Supreme Court: “According to the Ewing court, the contract claims that Ewing failed to perform in a good and workmanlike manner ‘are substantively the same as its claims that Ewing negligently performed under the contract because they contain the same factual allegations and alleged misconduct.’ Failure to perform in a ‘good and workmanlike manner’ is functionally and substantively the same as performing negligently. ‘Accordingly,’ the Ewing court said, ‘we conclude that a general contractor who agrees to perform its construction work in a good and workmanlike manner, without more, does not enlarge its duty to exercise ordinary care in fulfilling its contract, thus it does not ‘assume liability’ for damages arising out of its defective work so as to trigger the Contractual Liability Exclusion.’” Read the court decision
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Work without Permits may lead to Problems Later

September 10, 2014 — Beverley BevenFlorez-CDJ STAFF
According to the Los Angeles Register, “Southern California homeowners often have repairs or improvements done to their property without getting the required building permits,” which sometimes, may be fine, but other times it leads to disastrous problems. The Register used an example of a San Clemente couple who had issues selling their home when a building inspector found that weep screeds were covered up by a cement deck installed by a contractor. The contractor also failed to get building permits for the work that was done. The buyer stated that repairs needed to be done prior to the sale. According to Mac MacKenzie, an agent at Coldwell Banker in Irvine, the situation is not uncommon: “We’ve had (permit problems) kill deals before, and we’ve had them almost kill deals. If it’s serious enough, it can stop a transaction from closing.” Permits are generally required “for any alteration, major repairs or new construction,” according to the Register, while they are not necessary “for minor repairs, such as fixing leaky pipes, painting, new carpeting or new kitchen countertops.” Read the court decision
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Crumbling Roadways Add Costs to Economy, White House Says

July 16, 2014 — Roger Runningen – Bloomberg
More than two-thirds of U.S. roadways are in need of repair and the poor condition of the nation’s transportation network results in billions in extra costs, according to a White House report. The report was released today in conjunction with President Barack Obama’s campaign to pressure Congress for a deal to replenish the Highway Trust Fund. The fund, supplied by fuel taxes, is heading toward insolvency as early as next month, jeopardizing jobs and projects during the peak construction season. Crumbling roads and bridges cut into economic growth, by increasing transportation costs and delaying shipments, according to the report. “A well-performing transportation network keeps jobs in America, allows businesses to expand, and lowers prices on household goods to American families,” said a 27-page report by the Council of Economic Advisers and National Economic Council. Read the court decision
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Reprinted courtesy of Roger Runningen, Bloomberg
Mr. Runningen may be contacted at rrunningen@bloomberg.net

The Value of Photographic Evidence in Construction Litigation

April 26, 2021 — Marie Mueller - Construction Executive
If 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. Read the court decision
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Ms. Mueller may be contacted at mmueller@verrill-law.com

TxDOT: Flatiron/Dragados Faces Default Over Bridge Design Issues

September 12, 2022 — James Leggate - Engineering News-Record
Texas officials are threatening to replace the contractor building a $930-million bridge crossing the Corpus Christi Ship Channel, alleging the firm has failed to address previously identified safety concerns with the design. In response, the contractor says the state has delayed sharing key engineering information and insists the design is safe. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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Haight Celebrates 2024 New Partner Promotions!

January 22, 2024 — Haight Brown & Bonesteel LLP
Haight is celebrating new partner promotions in 2024. Congratulations to Gary LaHendro, Melvin Marcia and Philip McDermott! Gary LaHendro became a member of the California State Bar in December 1993. He is a member of the Risk Management & Insurance Law Practice Group. He focuses his practice on insurance coverage and bad faith litigation. Gary’s clients include carriers within the United States and London Markets for whom he has provided coverage advice on various lines of coverage, including commercial general liability, excess, errors and omissions, auto, and representations and warranties. Gary also monitors the defense of insureds with respect to third-party lawsuits. In addition to coverage work, Gary has over 20 years of litigation experience as lead defense counsel on cases involving soil and groundwater contamination, professional liability, construction defect and personal injury cases. He is also a skilled appellate attorney and Certified Mediator. Melvin Marcia became a member of the California State Bar on June 1, 2016. Melvin is a member of the firm’s Transportation Law, General Liability, Product Liability and Fire Litigation Practice Groups. His practice focuses on litigation of high value cases, ranging from catastrophic injury, wrongful death, premises liability, business disputes, product liability, uninsured/underinsured arbitrations and subrogation matters. Read the court decision
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Reprinted courtesy of Haight Brown & Bonesteel LLP

Regions Where Residential Construction Should Boom in 2014

January 13, 2014 — CDJ STAFF
Construction Digital reports that five regions should see a boom in residential construction in 2014, based on research from McGraw-Hill Construction. According to the report, the rise in residential construction is likely to be as much as 26% in single-family housing, with an 11% rise expected in multi-family housing. The regions that should benefit the most from these are Houston, Atlanta, Phoenix, Denver, and Los Angeles. Cities that want to be in on the 2014 boom are advised to “lower permit fees,” offer “construction grants and loans,” and to get the word out to contractors that the area is going to provide a favorable environment for contractors. Read the court decision
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CAMBRIDGE MASSACHUSETTS BUILDING EXPERT DIRECTORY AND CAPABILITIES