Alabama Appeals Court Rules Unexpected and Unintended Property Damage is an Occurrence
June 17, 2015 —
Beverley BevenFlorez-CDJ STAFFIn Pennsylvania National Mutual Casualty Insurance Company v St. Catherine of Siena Parish, a U.S. appeals court affirmed "that unexpected and unintended property damage is an ‘occurrence,’” reported Construction Equipment Guide. The underlying case involved roof leaks after the replacement of two Parish roofs, which ultimately led to a trial where Parish was awarded $350,000 in compensatory damages for breach of contract. However, Penn National disputed any obligation to pay, stating that “a breach of contract claim was not an ‘occurrence’ under the policy and even if such claims were an occurrence, the contractual liability and/or ‘your work’ exclusions would bar recovery.”
However, the U.S. District Court for the Southern District of Alabama ruled “that there was coverage for the property damage caused by the leaks because an ‘accident’ meant an unintended and unforeseen injury and the allegedly faulty workmanship led to damage to other areas of the structure and thus damage beyond simply the cost to replace the defective roof.”
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Traub Lieberman Partner Colleen Hastie and Associate Jeffrey George Successfully Oppose Plaintiff’s Motion to Vacate Dismissal
September 11, 2023 —
Colleen E. Hastie & Jeffrey George - Traub LiebermanTraub Lieberman Partner Colleen Hastie and Associate Jeffrey George successfully opposed Plaintiff’s motion to vacate a prior dismissal of plaintiff’s medical malpractice action brought before the Supreme Court of the State of New York, Bronx County.
The lawsuit, commenced by Plaintiff in 2015, alleged medical malpractice stemming from treatment Plaintiff received at a New York medical facility after falling out of a window at a rental property owned by Traub Lieberman’s client (“Property Owner”). Property Owner moved to dismiss Plaintiff’s complaint or preclude Plaintiff from offering evidence in support of its claims, or in the alternative, compel plaintiff to produce all outstanding discovery. The Medical Facility cross-moved for the same relief. Defendants agreed to adjourn the motion until after plaintiff’s deposition, but plaintiff made no effort to secure an adjournment with the court and plaintiff filed no opposition to the motion, allowing the motion to be granted on default. Plaintiff waited nearly a year to file a motion to vacate the default judgment, despite receiving notification of the default from defense counsel. Property Owner, in opposing plaintiff’s motion, pointed to plaintiff’s long history of dilatory conduct and failure to comply with discovery orders in support of its position that plaintiff failed to show any good cause for its default on the motion to dismiss.
Reprinted courtesy of
Colleen E. Hastie, Traub Lieberman and
Jeffrey George, Traub Lieberman
Ms. Hastie may be contacted at chastie@tlsslaw.com
Mr. George may be contacted at jgeorge@tlsslaw.com
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Eight Ways to Protect a Construction Company Before a Claim Is Filed
November 04, 2019 —
Mary Bacon - Construction ExecutiveClaims are inevitable in the construction industry. They can take on a life of their own and come with the burden of legal fees, wasted executive time and a possible judgment. Too often the only winners are the lawyers.
TIPS FOR PROTECTING MANAGEMENT AND THE BUSINESS BEFORE A CLAIM IS FILED
- Respect the business entity’s corporate structure. First and most importantly, respect the business entity’s corporate form. Legal entities have certain formalities like filing an annual list of officers, maintaining separate bank accounts, conducting certain meetings and following bylaws, etc. Respect these formalities. Failure to follow them exposes the owner to personal liability for company debts. And while a business claim has the potential to wipe out a business, owners should not risk having their personal assets on the line as well.
- Get a good contract. In most instances, a contract governs what happens and who is responsible for payment associated when a certain issue or dispute arises. A clear, well-written contract can often avoid a dispute or liability for a dispute. Actively participate in the contract negotiation and drafting process to make sure each party’s role and responsibilities are clearly accounted for.
- Make friends with clients. While it is true that “business is business,” people are often fairer and more willing to work towards a solution for people they are friends with. In most cases, friends will help friends in ways that people would not help mere business associates. When encountering a problem on a job, a friend may be willing to help achieve a more favorable outcome.
Reprinted courtesy of
Mary Bacon, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Ms. Bacon may be contacted at
mbacon@spencerfane.com
Changes to Pennsylvania Mechanic’s Lien Code
November 05, 2014 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday here at Musings, we welcome Jim Fullerton. Jim is the President of the law firm of
Fullerton & Knowles, P.C., which has attorneys licensed in Virginia, Maryland, Pennsylvania, and the District of Columbia, is a Martindale Hubbell Peer Rated Lawyer AV® Preeminent.™ The firm represents owners, lenders, design professionals, suppliers, subcontractors, general contractors and other members of the real estate and construction industries, filing mechanic’s liens, surety bond and other construction claims across all of the states in the Mid Atlantic region. He also represents creditors in bankruptcy issues nationwide, particularly defense of bankruptcy preference claims; advises owners and lenders in real estate lending and acquisition transactions; on all real estate and construction law issues; contract formation and disputes.
The firm’s Construction Law Survival Manual is well known and widely used by participants in the construction process. The 550 page manual provides valuable information about construction contract litigation, mechanic’s liens, payment bond claims, bankruptcy and credit management and contains over 30 commonly used contract forms. All of this information and recent construction law issues are constantly updated on the firm’s website.
There are two changes to the Pennsylvania Mechanic’s Lien Code that became effective September 2014. First, residential properties built by an owner for their own residence will now have a defense of payment to subcontractor mechanic’s liens. This protects homeowners from mechanic’s liens if they have paid their general contractors in full. Second, construction loan open end mortgages will have priority over mechanic’s liens, as long as at least sixty per cent (60%) of the loan proceeds are used for construction costs. This change was pushed by Pennsylvania lenders in response to a recent court case.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Construction Law Breaking News: California Supreme Court Rules in Favor of Beacon Residential Community Association
July 09, 2014 —
Steven M. Cvitanovic – Haight Brown & Bonesteel LLPOn July 3, 2014, the California Supreme Court issued its opinion affirming the First District Court of Appeal in the case of Beacon Residential Community Association v. Skidmore, Owings & Merrill (Case No. S208173). The issue in the Beacon case is whether the architects of a residential project owe a duty to future third party homeowners under SB800 and common law. In 2011, Judge Richard Kramer of the San Francisco Superior Court sustained demurrers of Skidmore, Owings & Merrill and HKS Architects to the homeowners association complaint without leave to amend. The homeowners association appealed and the First District Court of Appeal reversed Judge Kramer, ruling that the homeowners could assert SB800 and common law claims against the architects of the project even in the absence of privity of contract.
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Steven M. Cvitanovic, Haight Brown & Bonesteel LLPMr. Cvitanovic may be contacted at
scvitanovic@hbblaw.com
Being deposed—not just for dictators! Depositions in the construction lawsuit (Law & Order: Hard Hat files Part 5)
January 17, 2013 —
Melissa Dewey Brumback, Construction Law in North CarolinaMy husband always finds it amusing when I talk about going “to depose” somebody. He wants to know just exactly what sort of coup d’etat I am planning. Despite the awkward language, the deposition process is not supposed to feel like water boarding, although if you don’t know what to expect it can be more miserable than truly necessary.
Simply put, a deposition is a chance for the other side’s lawyer to make you answer a whole bunch of questions (some relevant, some seemingly irrelevant) under oath. That is, first you put your hand on the Bible and swear (or affirm) to tell the truth, the whole truth, and nothing but the truth. In reality, depositions serve a variety of purposes– they educate the lawyers about the facts of the case, they give a preview of how you would “present” to a jury (i.e., would a jury like and believe you?), and they can be used to position a case for certain later dispositive motions (that is, summary judgment– stay tuned for Part 8 of the series on that issue).
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Melissa Dewey BrumbackMs. Brumback can be contacted at
mbrumback@rl-law.com
The Anatomy of a Construction Dispute Stage 2- Increase the Heat
January 21, 2015 —
Christopher G. Hill – Construction Law MusingsLast week we discussed the groundwork and circumstances of a construction claim. This week’s post will discuss the next steps, hopefully short of full blown arbitration or litigation that you, as a construction company, can pursue presuming your claim has been properly preserved.
If your contract requires certain steps such as informal resolution attempts or other items, these are the first things that must be done while still preserving your rights to pursue all remedies available. Instituting such contractually required resolution steps can and should be the first “notch” on the dial of increased pressure on the Owner, General Contractor or possibly Subcontractor against whom you have a claim.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
EPA Rejects Most of N.Y.’s $511 Million Tappan Zee Loan
September 17, 2014 —
Freeman Klopott – BloombergA $511 million loan approved by a New York environmental agency to help fund the construction of a new $4 billion Tappan Zee Bridge was rejected almost entirely by the U.S. Environmental Protection Agency.
The loan was intended to drive down borrowing costs for the replacement span being built across the Hudson River, with half of it being provided at zero interest. The agency, the Environmental Facilities Corp., approved the borrowing in June, saying it could use the funds from a program that targets clean-water projects.
The EPA said today in a letter to state officials that building a new bridge doesn’t fit the intention of the program, which is backed by federal dollars. The agency, citing the U.S. Clean Water Act, said only $29.1 million could be allowed.
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Freeman Klopott, BloombergMr. Klopott may be contacted at
fklopott@bloomberg.net