Construction Defect Not an Occurrence in Ohio
November 07, 2012 —
CDJ STAFFThe Ohio Supreme Court has concluded that claims of defective construction or workmanship are not an occurrence under a general liability policy. The court looked at appellate decisions and concluded that CGL policies are not intended to insure against risks under the control and management of the insured. These risks should instead be mitigated with performance bonds.
The question was raised in the case Westfield Ins. Co. v. Custom Agri Systems, Inc. The Sixth District Court of Ohio concluded it was an “open question under Ohio law whether a CGL policy covers defective construction claims.” Westfield filed a motion, granted by the Sixth Circuit, to certify the question to the state Supreme Court. The Sixth Court additionally found that the contractual liability exclusion barred coverage in the case, issues a summary judgment to Westfield.
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What Contractors Can Do to Address Rising Material Costs
August 23, 2021 —
Garret Murai - California Construction Law BlogFrom lumber to used cars to pastrami sandwiches, prices are rising. This past month, at a town hall meeting in Cincinnati, Ohio, President Biden acknowledged that inflation was increasing, responding to a question from a restaurant owner about labor shortages, “I think your business and the tourist business is really going to be in a bind for a little while.”
Although construction companies typically don’t work in the same small margins that restaurants do, labor shortages and material price increases have nevertheless impacted the construction industry. According to a recent report by Cumming, the cost of construction materials from lumber to steel to gypsum have gone up over the last 12 months, in some cases nearly double:
For contractors entering into construction contracts and those performing work under existing contracts, the increasing cost of materials and shortage of labor creates challenges, some of which can be addressed through contractual provisions and the framework of those contracts.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Illinois Federal Court Determines if Damages Are Too Remote
July 13, 2020 —
Lian Skaf - The Subrogation StrategistForeseeability is a tort concept that tends to permeate several aspects of legal analysis, often causing confusion in litigants’ interpretation of, and courts’ application of, foreseeability to their cases. In Cincinnati Ins. Co. v. Progress Rail Services. Corp., 2020 U.S. Dist. LEXIS 73967 (C.D. Ill.), the United States District Court for the Central District of Illinois took on the task of analyzing a case dealing with foreseeability issues to determine if the defendant owed the plaintiff a duty and if the damages were so remote as to violate public policy. The court held that since the defendant’s actions contributed to the risk of harm to the plaintiff and the facts satisfied the four-prong duty test, the defendant owed the plaintiff’s subrogor a duty of reasonable care. It also held that the plaintiff’s damage claim did not open the defendant up to liability that would violate public policy.
In the case, an employee of defendant Progress Rail Services Corporation (Progress Rail) was operating a crane at Progress Rail’s Galesburg location on May 7, 2018. The employee struck an overhead power line while working, causing a power disruption to nearby businesses. The plaintiff’s subrogor, Midstate Manufacturing Company (Midstate), was one of the affected businesses, reporting that its Amada hydraulic punch was damaged. Midstate submitted a property damage claim to its carrier, Cincinnati Insurance Company (Cincinnati), who reimbursed it under its policy. Subsequent to its payment, Cincinnati filed suit against Progress Rail in Illinois state court. Progress Rail then removed the case to federal court and filed a motion to dismiss.
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Lian Skaf, White and Williams LLPMr. Skaf may be contacted at
skafl@whiteandwilliams.com
But Wait There’s More: Preserving Claims on Commonwealth Projects
February 07, 2018 —
Wally Zimolong - Supplemental Conditions BlogOn construction projects owned by the Commonwealth of Pennsylvania, a contractor may make a claim with the Board of Claims. But first, you must be aware of two limitations periods that could cause you to waive your claim if they are not met.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
ASCE's Architectural Engineering Institute Announces Winners of 2021 AEI Professional Project Award
April 19, 2021 —
American Society of Civil EngineersRESTON, Va. – The
American Society of Civil Engineers' (ASCE) Architectural Engineering Institute (AEI) is pleased to announce the 100 Mount Street project by Skidmore, Owings & Merrill and Billie Jean King Main Library, also by Skidmore, Owings & Merrill as Best Overall Projects winners for AEI's Professional Project Awards. The 100 Mount Street project won the award Best Overall Project Over $100 Million, while the Billie Jean King Main Library won the award for Best Overall Project Under $100 Million. Traditionally, AEI announces project winners during its in-person annual Awards Banquet; however, ASCE held the banquet virtually this year to follow CDC guidelines which suggest avoiding large gatherings.
The AEI Professional Project Award recognizes outstanding achievements in design and construction by honoring the art and science of an integrated approach to architectural engineering. The program focuses on high performance buildings including structural, mechanical, electrical and lighting systems as well as construction management and architectural engineering integration. Projects are evaluated on originality and innovative character, integration and collaboration, sustainability, energy efficiency and economics, effective use of technology and constructability and site logistics.
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 and follow us on Twitter, @ASCETweets and @ASCEGovRel.
About ASCE's Architectural Engineering Institute
Established in 1998, AEI is the premier organization for architectural engineering, promoting an integrated, multi-disciplinary approach to planning, design, construction and operation of buildings, by encouraging innovation, collaboration and excellence in practice, education and research of architectural engineering. For more information, visit www.asce.org/aei.
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American Society of Civil Engineers
Flood Sublimits Do Not Apply to Loss Caused by Named Windstorm
May 07, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe New Jersey Superior Court considered whether recovery for storm surge was limited by the policy's sublimit for loss caused by flood. Public Serv. Enter. Group, Inc. v. Ace Am. Ins. Co., 2015 N. J. Super. Unpub. LEXIS 620 (N.J. Super. Ct. Law Div. March 23, 2015).
Storm surge from Superstorm Sandy inundated and damaged Public Service Enterprise Group, Inc.'s (PSEG) property, including eight large generating stations. PSEG had coverage of $1 billion under policies with defendant carriers. There was no sublimit in the policies for "named windstorms," other than named windstorms in Florida. A $250 million sublimit appeared in the policies for losses caused by "flood."
The carriers paid only a portion of PSEG's claim. The total damages exceeded $500 million.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Green Investigations Are Here: U.S. Department of Justice Turns Towards Environmental Enforcement Actions, Deprioritizes Compliance Assistance
January 10, 2022 —
Karen C. Bennett, R. Morgan Salisbury, Sean P. Shecter & Rose Quam-Wickham - Lewis BrisboisWashington, D.C. (January 4, 2022) - Two high-ranking Department of Justice (DOJ) officials announced that the Biden Administration is prioritizing environmental regulatory enforcement over compliance assistance. Todd Kim, Assistant Attorney General for the DOJ’s Environment and Natural Resources Division (ENRD), and Deborah Harris of the DOJ’s Environmental Crimes Section, indicated in mid-December 2021 that companies and individuals should expect more “vigorous enforcement,” with an emphasis on criminal enforcement. This new policy is in contrast to the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance (OECA)'s previous emphasis on compliance and pollution mitigation instead of enforcement actions under the prior administration.
DOJ’s new policy of promoting enforcement actions is consistent with the Biden Administration’s overall efforts to prioritize environmental justice. In April 2021, as explained in a previous Lewis Brisbois Client Alert, OECA released two memoranda directing enforcement teams to consider a variety of tools to resolve enforcement actions, including increased inspections, restitution, and reparation for victims of environmental crimes and overstepping state regulators where necessary.
Reprinted courtesy of
Karen C. Bennett, Lewis Brisbois,
R. Morgan Salisbury, Lewis Brisbois,
Sean P. Shecter, Lewis Brisbois and
Rose Quam-Wickham, Lewis Brisbois
Ms. Bennett may be contacted at Karen.Bennett@lewisbrisbois.com
Mr. Salisbury may be contacted at Morgan.Salisbury@lewisbrisbois.com
Mr. Shecter may be contacted at Sean.Shecter@lewisbrisbois.com
Ms. Quam-Wickham may be contacted at Rose.QuamWickham@lewisbrisbois.com
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A Duty to Design and Maintain Reasonably Safe Roadways Extends to All Persons. (WA)
February 25, 2014 —
Natasha Khachatourians – Scheer & Zehnder LLP Liability NewsletterCase: Lowman v. Wilbur, et al., 178 Wn.2d 165, 309 P.3d 3.87 (2013).
Issue: If a passenger’s injuries are in fact caused by the placement of a utility pole too close to a roadway, can the injuries be deemed too remote for purposes of legal causation? NO.
Facts: Plaintiff was a passenger in a vehicle that lost control and collided with a utility pole that was 4.47 feet from the edge of the roadway. The vehicle’s driver was under the influence of alcohol. Plaintiff sued the driver as well as the utility company and Skagit County for negligence. The trial court granted the utility company and Skagit County’s summary judgment motion, finding that the negligent placement of the utility pole was not a legal cause of plaintiff’s injuries.
The issue before the Supreme Court was whether a negligently placed utility pole could be the legal cause of a resulting injury.
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Natasha Khachatourians, Scheer & Zehnder LLP Ms. Khachatourians may be contacted at
natashak@scheerlaw.com