A Win for Policyholders: California Court of Appeals Applies Vertical Exhaustion for Continuous Injury Claims
August 24, 2020 —
Celia B. Waters - Saxe Doernberger & VitaFresh off the heels of the California Supreme Court’s landmark decision in Montrose Chemical Corp. v. Super. Ct. of L.A. Cty. (“Montrose III”),1 policyholders scored another victory as another California court rejected horizontal exhaustion in the context of continuous injury cases. The Court of Appeal of the State of California, First Appellate District, Division Four, in SantaFe Braun Inc. v. Ins. Co. of N. Am., adopted a rule of vertical exhaustion, holding that “[absent an explicit policy provision to the contrary] the insured becomes entitled to the coverage it purchased from the excess carriers once the primary policies specified in the excess policy have been exhausted.”2
The dispute in SantaFe Braun began in 1992 when asbestos-related claims were first filed against Braun. In 1998, Braun’s three primary insurers agreed in writing to defend and settle the underlying claims against Braun while resolving allocation among themselves. In 2004, Braun filed the current suit against its excess insurers, seeking a declaration that the excess insurers were obligated to help cover the costs of the underlying asbestos-related lawsuits.
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Celia B. Waters, Saxe Doernberger & VitaMs. Waters may be contacted at
cbw@sdvlaw.com
Revisiting Termination For Convenience Clauses In Uncertain And Ever-Changing Economic Times
February 27, 2023 —
Adam M. Tuckman & Brittney M. Wiesner - ConsensusDocsIn these times of persistent inflationary forces and efforts to tame the consequences through rising interest rates, economic uncertainty abounds in the United States and around the world. As an approximately $1 trillion contributor to the economy in the United States (4.2% of GDP in 2021) alone according to the Associated General Contractors of America, the health and the growth of the construction industry is certainly susceptible to these rapidly changing macroeconomic conditions.
Presently, an unanswered question is how project developers will react to unpredictable fluctuations in project costs and interest rates. Although it seems unlikely to be a prevalent response, it is possible that substantial increases in borrowing, labor, or material costs would cause owners to pull the plug on projects that are in the advanced stages of construction. For projects in the nascent stages of development or construction, however, the calculous for owners becomes more tenuous. Both public and private owners may find it more prudent to indefinitely suspend or cancel pending or ongoing projects due to any, or a combination of, forecasted increases in project costs, shrinking funding, higher borrowing costs, or macro-economic uncertainty. Facing this quandary, how would an owner already under contract with a constructor and design team suspend or cancel its project? One potential approach is to invoke a termination for convenience clause found in the parties’ contract.
Reprinted courtesy of
Adam M. Tuckman, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs) and Brittney M. Wiesner, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs)
Mr. Tuckman may be contacted at atuckman@watttieder.com
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Apartment Boom in Denver a Shortcut Around Condo Construction Defect Suits?
September 24, 2013 —
CDJ STAFFFor every condo currently being built in Denver, there are 40 apartment units. And there are some who think that this is being done to evade construction defect lawsuits. At issue is the statute of limitations for construction defects. Under Colorado law, condominium buyers have six years after the completion of constrution to sue for construction defects, unless the defect isn’t discovered until the fifth or six year, in which case they are given until the eighth year. But what if someone built an apartment building, rented out the units for six years, and then converted the whole thing to condominiums?
Some think that the construction defect clock would be reset. Amie Mayhew, the CEO of the Colorado Association of Home Builders noted that if this is the case, “you’d be back at square one.” But Doug Benson, a construction defect attorney, thinks that if a builder did this, and didn’t make any further construction, no one would be able to sue for construction defects, even if the condo owners found them. Mr. Benson, who represents homeowners, said that “they’re apartment homes and that’s just to avoid liability.”
Mike Gifford, the president of the Associated General Contractors of Colorado, noted that insurance companies were already wary of apartment complexes, fearing that they would be turned into condos. Whatever the cause, Denver seems to have a shortage of condos. But, they’re going to have a lot of apartments available.
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New York Court Enforces Construction Management Exclusion
March 14, 2018 —
Traub Lieberman Straus & Shrewsberry LLPIn its recent decision in
Houston Cas. Co. v. Cavan Corp. of NY, Inc., 2018 N.Y. App. Div. LEXIS 1138 (N.Y. 1st Dep’t Feb. 20, 2018), a New York appellate court had occasion to consider the application of a construction management exclusion in a general liability policy.
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Traub Lieberman Straus & Shrewsberry LLP
Steven Cvitanovic Recognized in JD Supra's 2017 Readers' Choice Awards
April 05, 2017 —
Steven M. Cvitanovic - Haight Brown & Bonesteel LLPJD Supra named Partner Steven Cvitanovic among the Top 10 Authors in the construction industry in its 2017 Readers’ Choice Awards, which recognizes the excellence and achievement of firms and authors who published their substantive work on JD Supra in 2016.
JD Supra editors chose the 25 industries and topics covered in these awards for their timeliness as well as their proven, ongoing importance. In each category, one firm and ten authors were recognized for consistently achieving the highest readership and engagement for all of 2016.
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Steven M. Cvitanovic, Haight Brown & Bonesteel LLPMr. Cvitanovic may be contacted at
scvitanovic@hbblaw.com
The Future Has Arrived: New Technologies in Construction
October 17, 2022 —
Sarah Biser - ConsensusDocsThe construction industry has traditionally been slow to adapt to new technologies, but things are changing.
Construction companies are keen to control costs (including increased costs due to supply chain issues), improve efficiency, maintain productivity while dealing with labor shortages, and enhance safety, and protect data bases from cyberattacks. New technologies, including robotics, 3D printing, cloud and mobile computing, augmented reality, blockchain, and cybersecurity, are helping construction companies achieve those goals.
Here are some key takeaways.
Augmented Reality (AR) vs. Virtual Reality
Augmented Reality is a technology that superimposes a computer generated image upon a user’s view of the real work. Virtual Reality, on the other hand, creates a virtual environment to replace the real one.
AR has uses in many industries. For example, shoppers using AR can see what furniture or appliances will look like in their own homes and offices. Medical professionals can also use the technology to visualize organs and simulate procedures prior to operations.
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Sarah B. Biser, Fox Rothschild LLP (ConsensusDocs)Ms. Biser may be contacted at
sbiser@foxrothschild.com
Insurer Rejecting Construction Defect Claim Must Share in Defense Costs
March 02, 2020 —
Tred R. Eyerly - Insurance Law HawaiiOne insurer, who accepted the tender of defense in a construction defect case, successfully moved for summary judgment against the second insurer, who denied the insured's tender. Interstate Fire & Cas. v. Aspen Ins. UK Ltd., 2019 N.Y. Misc. LEXIS 5800 (N.Y. Sup. Ct. Oct. 25,2019).
Standard Waterproofing Corporation was hired by the construction manager, G Builders, to perform waterproofing work as part of condominium conversion project. After the project was completed,the condominium occupants experienced water damage in their units. The Condominium Board retained an engineer who reported numerous issues of water infiltration relating to Standard's work.
The Condominium Board filed suit against the construction manager, who filed a third party complaint against Standard. Standard tendered to four different insurers, including plaintiff Interstate and defendant Aspen. Interstate agreed to defend, while Aspen and the other two insurers declined. Aspen argued there were no allegations of an occurrence resulting in property damage during its policy periods. Interstate filed for declaratory relief against Aspen and Standard.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Zillow Seen Dominating U.S. Home Searches with Trulia
July 30, 2014 —
Alex Sherman, Jeffrey McCracken and Prashant Gopal – BloombergA Zillow Inc. (Z) purchase of Trulia Inc. (TRLA) would create a dominant search website for U.S. house hunters, reshaping an online industry the companies helped popularize.
Zillow, the largest U.S. real estate website, is seeking to buy No. 2 Trulia for as much as $2 billion in cash and stock, according to people with knowledge of the matter. An agreement may be announced as soon as next week, said one of the people, who asked not to be identified because the information is private. Talks are ongoing and may not lead to a deal.
The companies help buyers and renters find information on homes, generating revenue by selling advertising and charging Realtors to place their listings prominently. Together the Zillow and Trulia networks had more than 68 million unique visitors in June, representing about 71 percent of all visitors to ComScore’s real estate category. That includes desktop and mobile users, ComScore said. A combination would make it hard for rivals to compete, said Steve Murray, president of Real Trends Inc. in Castle Rock, Colorado.
Mr. Sherman may be contacted at asherman6@bloomberg.net; Mr. McCracken may be contacted at jmccracken3@bloomberg.net; Mr. Gopal may be contacted at pgopal2@bloomberg.net
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Alex Sherman, Jeffrey McCracken and Prashant Gopal, Bloomberg