Risk Transfer: The Souffle of Construction Litigation
December 13, 2022 —
Alexa Stephenson & Ivette Kincaid - Kahana FeldWho does not love a good souffle?! Enthusiasts will know that a great souffle is not something you can obtain quickly. Rather, it is common in restaurants to order the souffle as dessert at the beginning of the meal because it takes an hour to bake. Risk transfer – like a good souffle – also requires planning, preparation, and the right ingredients.
In construction litigation, attorneys are often not retained until after the project has been completed for several years as the dispute between the homeowner and the general contractor or developer took time to escalate to formal litigation. A significant part of defense counsel’s legal analysis involves assessing and evaluating risk transfer opportunities. For example, in the case of a general contractor or developer who did not self-perform the construction work but instead retained subcontractors to do so, counsel will assess if risk can be transferred from the general contractor or developer to the subcontractors who performed the work which the homeowners allege is defective. In other words, a developer or general contractor can reduce their risk (i.e. liability and money owed) by transferring said risk (i.e. pointing the finger at) to a third party.
Sounds easy, right? Unfortunately, just like the souffle making process, it is easier said than done. This task can be exceedingly difficult in the absence of contracts that contain strong indemnity and insurance provisions – the essential ingredients to effect risk transfer. Worry not! We have provided “baking” instructions for you below to help you get a great risk transfer souffle time and again.
Reprinted courtesy of
Alexa Stephenson, Kahana Feld and
Ivette Kincaid, Kahana Feld
Ms. Stephenson may be contacted at astephenson@kahanafeld.com
Ms. Kincaid may be contacted at ikincaid@kahanafeld.com
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Home Prices in 20 U.S. Cities Rose in June at a Slower Pace
August 27, 2014 —
Lorraine Woellert – BloombergHome prices in 20 U.S. cities rose at a slower pace in the year ended in June as declining affordability and weak wage gains kept appreciation in check.
The S&P/Case-Shiller index of property values increased 8.1 percent from June 2013, the smallest 12-month gain since January 2013, the group reported today in New York.
Price gains are slowing as more houses are coming up for sale and investors retreat to the sidelines. That, combined with an improving job market, could put homeownership within reach of more Americans grappling with disappointing wage growth and strict lending rules.
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Lorraine Woellert, BloombergMs. Woellert may be contacted at
lwoellert@bloomberg.net
Mississippi River Spends 40 Days At Flood Stage, Mayors Push for Infrastructure Funding
June 18, 2019 —
Jeff Yoders - Engineering News-RecordAs record flooding continues across the Midwest, the region’s mayors and the Army Corps of Engineers are looking for solutions to mitigate future floods.
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Jeff Yoders, ENRMr. Yoders may be contacted at
yodersj@enr.com
White and Williams Announces Partner and Counsel Promotions
February 19, 2024 —
White and Williams LLPPHILADELPHIA–White and Williams LLP is pleased to announce the promotion of the following attorneys: Paul A. Briganti, Patrick A. Haggerty, Timothy (T.J.). Keough, Randy J. Maniloff, and Eric A. Sauter. All five attorneys have been promoted to the Firm’s partnership. The Firm has also promoted Michael L. DeBona, Lynndon K. Groff, and Susan J. Zingone from Associate to Counsel.
“All of our new Partners and Counsel enrich the firm both internally and externally. They have demonstrated a deep commitment to providing our clients with best-in-class service and through their dedication and leadership earned elevation to partner and counsel at White and Williams,” said firm Managing Partner Tim Davis. “We look forward to their many continued successes and contributions to the Firm.”
Paul A. Briganti practices out of the Philadelphia office and represents national and international insurance companies in coverage disputes and complex commercial litigation. He has significant experience litigating and advising clients on issues arising under various lines of coverage, including general liability, cyber, D&O, employers liability, commercial auto and homeowners. In addition, Paul is an editor of the firm’s Complex Insurance Coverage Reporter newsletter and a regular pro bono volunteer with the Senior Law Center. He received his J.D. from Villanova University School of Law.
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White and Williams LLP
Chattanooga Bridge Collapse Likely Resulted From Impact
April 17, 2019 —
Jim Parsons - Engineering News-RecordTennessee highway officials believe an impact from a vehicle’s oversized load is likely to blame for the April 1 partial collapse of a ramp structure at the I-75/I-24 interchange in Chattanooga. The impact caused the outer box beam and railing of the 148-ft-long bridge’s nearly 51-ft main span to fall onto an access ramp, injuring a motorist whose vehicle collided with the debris.
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Jim Parsons, ENRENR may be contacted at
ENR.com@bnpmedia.com
Bats, Water, Soil, and Bridges- an Engineer’s dream
December 31, 2014 —
Melissa Dewey Brumback – Construction Law in North CarolinaWant to know how bats may affect your engineering plans? Want to hear about cool new bridges? Read on.
Over the past month, I’ve had the pleasure of attending two events hosted by the North Carolina Chapter of the ACEC (American Council of Engineering Companies). The first of these was the Joint Transportation Conference, held in conjunction with the NC DOT. The second was the annual ACEC Engineering Excellence Awards. At both events, I learned interesting information that engineers should know. Today, I will discuss the Transportation Conference, including some new regulations and unusual design methods. I will save the highlights from the Excellence Awards for later this week.
1. It’s a cave, it’s a bat, it’s bats, man!
Did you know that your future bridge project may be affected by the Northern Long-Eared Bat? It’s true. Right now, the federal government is considering listing the bat on the Endangered Species List, due to the 98-99% mortality rate the bats are experiencing due to “white nose syndrome”. Over 1,700 projects in North Carolina could be impacted, including work on bridges, culverts, abandoned buildings, and guardrails–essentially, any activity involving tree clearing, structure demolition/removal, or structure maintenance. On November 26th, 2014, the US Fish and Wildlife Service extended the comment period to discuss the implications of listing the bat on the endangered species list. If the bat is listed, there is no grandfathering of projects. All projects will immediately be required to engage in protective activities. Stay tuned, but be aware that your transportation projects could be affected starting sometime next year.
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Melissa Dewey Brumback, Construction Law in North CarolinaMs. Brumback may be contacted at
mbrumback@rl-law.com
New York Appellate Court Expands Policyholders’ Ability to Plead and Seek Consequential Damages
February 27, 2019 —
Michael S. Levine & Joshua S. Paster - Hunton Andrews KurthIn a huge win for policyholders, a New York appellate court, in D.K. Property, Inc. v National Union Fire Insurance Company of Pittsburgh, Pa., held that an insured need not provide a detailed factual description or explanation for why consequential damages are recoverable at the pleading stage. Rather, an insured’s complaint must only (i) specify the types of consequential damages claimed; and (ii) allege that those damages reasonably were contemplated by the parties prior to contracting.
Here, D.K. Property’s building was damaged as a result of construction on an adjoining building, and it timely filed a claim with National Union under a policy that covers “direct physical loss or damage to” the building. National Union neither paid the claim nor disclaimed coverage. Instead, according to D.K. Property, National Union made unreasonable and increasingly burdensome information demands over a three-year period, which it alleges was a “tactic” to make pursuing the claim so expensive that D.K. Property would abandon the claim. As a result of the delay, D.K. Property alleges the structural damage to its building has worsened.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Joshua S. Paster, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Paster may be contacted at jpaster@HuntonAK.com
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UCP Buys Citizen Homes
March 31, 2014 —
Beverley BevenFlorez-CDJ STAFFUCP, a home builder and land developer based in San Jose, California, has purchased “Charlotte-based Southeast regional home building venture Citizens Homes, whose chairman is well-known home building industry veteran Tony Mon, and whose president and chief operating officer is third-generation home builder Scott Thorson,” according to Big Builder.
According to a UCP press statement, as quoted by Big Builder, “[t]he purchase price, estimated to be approximately $15 million, is based on the total assets of Citizens at the closing of the acquisition, less cash and cash equivalents, and less certain assumed trade payables. In addition, Citizens is eligible to receive earnout payments from UCP of up to $6 million in the aggregate based on performance over the next five years.”
The acquisition is expected to close during the second quarter of 2014.
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