Consequential Damages From Subcontractor's Faulty Work Constitutes "Property Damage" and An "Occurrence"
September 03, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe New Jersey appellate court found that the unintended and unexpected consequential damages caused by the subcontractor's defective work constituted "property damage" and an "occurrence." Cypress Point Condo. Ass'n v. Adria Towers, L.L.C., 2015 WL 4111890 (N.J. Super. Ct. App. Div. July 9, 2015).
The insured developer hired subcontractors to perform all of the construction work at a condominium project. The subcontractors failed to properly install the roof, flashing, gutters and leaders, brick and EIFS facade, windows, doors and sealants. The AOAO sued the developer, who served as the general contractor, its insurers, and various subcontractors.The AOAO conceded that replacement costs did not constitute "property damage" and an "occurrence" under the policy.
The faulty workmanship, however, also caused consequential damages to the common areas and unit owners' property, including damage to steel supports, exterior sheathing and interior sheathing and sheetrock, insulation and other interior areas of the building. Nevertheless, the trial judge determined there was no property damage or "occurrence", and granted summary judgment to the insurers.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Reroof Blamed for $10 Million in Damage
November 06, 2013 —
CDJ STAFFA renovation of the city hall in Bay City, Michigan went wrong when roof repairs lead to fire and flooding of the historic building. Bay City has sued Gregory Construction and Mihm Enterprises, who earlier had been awarded a $1.5 million contract to reroof the building. The cost of repairing the building is expected to exceed the city’s insurance limit of $10 million.
The fire that damaged the building is alleged to have started when a roofer allegedly used a DeWalt grinder in attempt to remove some bolts. Under the contract with the city, the contractor was not going to use grinders, due to the risk of fire. The suit alleges that further water damage was caused, beyond the damage due to the firefighting, due to the contractor failing to “secure a section of the roof which was part of the Roofing Project with a tarp or other water-resistant covering.”
The contractors dispute the claims made by Bay City, with Gregory Construction describing them as “untrue and contrary to the facts.” Gregory Construction also claims that their obligations were delegated to Mihn Enterprises. Mihn Enterprises disputes this and states that they do not “owe a duty to the Plaintiffs; as a result their negligence claim is unenforceable as a matter of law.”
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DC District Court Follows Ninth Circuit’s Lead Dismissing NABA’s Border Wall Case
April 10, 2019 —
Anthony B. Cavender - Gravel2GavelOn February 14, the U.S. District Court for the District of Columbia dismissed the complaint of the National American Butterfly Association (NABA) alleging that the U.S. Government’s border wall preparation and law enforcement activities at NABA’s National Butterfly Center, located in South Texas along the Rio Grande River, violated federal environmental laws (National Environmental Policy Act (NEPA)) and the Endangered Species Act (ESA)) as well as NABA’s constitutional rights. The case is National American Butterfly Association v. Nielsen, et al.
On January 25, 2017, the President issued an Executive Order to the Secretary of the Department of Homeland Security (Secretary) to “take all appropriate steps to immediately plan, design, and construct a physical wall along the southern border” with Mexico. A few weeks later, the Secretary issued a memorandum to the U.S. Customs and Border Enforcement to implement the Executive Order. The land occupied by the NABA has been affected by these actions, as well as other actions taken by the Secretary pursuant to her authority under the Illegal Immigration Reform and Immigrant Responsibility Act (IIRIRA), located at 8 U.S.C. § 1103.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Corrective Action Protest Grounds for GSA Schedule Federal Construction Contractors
September 09, 2024 —
Marissa L. Downs - The Dispute ResolverA contract awarded, protested, terminated, appealed, then reinstated. It’s no secret that federal construction procurements are plagued with uncertainty. From delays, constructive suspensions, compromised supply chains, the litigation-laden critical path method, and the mandate for all construction materials used in federally funded projects for infrastructure to be produced in the United States under the Build America, Buy America Act (BABAA) (to name just a few traditional and emerging favorites), just one of these issues could fill the rest of anyone’s month with substantive research. To add one more, which is entirely unique to bid protests, federal contractors–including construction contractors–listed in a General Service Administration (GSA) Schedule may have new grounds to have a contract award reinstated that was terminated by a federal agency pending a GAO decision.
GAO Protest
An initial GAO protest filed by Deloitte & Touche LLP (Deloitte) argued that the National Geo-Spatial Intelligence Agency (Agency) wrongfully made an award to Kearney & Company, P.C. (Kearney) when the Agency: (1) improperly evaluated quotes; and (2) failed to conduct a proper best-value tradeoff analysis. At issue was a competed task order with Kearney under a GSA FSS multiple-award contract. Before the GAO issued an opinion, however, it held an unrecorded predictive-outcome conference with Deloitte and Kearney where the only mutual consensus was the likely ineligibility of all offerors for the relevant award. The Agency subsequently elected to take corrective action, terminating Kearney’s contract award for convenience, amending the solicitation to avoid issues (including undisputed issues) addressed in the GAO protest. After the Agency adopted their corrective action, the GAO protest was dismissed as academic and moot.
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Marissa L. Downs, Laurie & Brennan, LLPMs. Downs may be contacted at
mdowns@lauriebrennan.com
What Do I Do With This Stuff? Dealing With Abandoned Property After Foreclosure
October 20, 2016 —
Lyndsey Torp – Snell & Wilmer Real Estate Litigation BlogYou’ve successfully foreclosed on a commercial building in California, and, thankfully, the borrower moved out after foreclosure or after a period of tenancy. But the borrower left behind all sorts of property – furniture, filing cabinets, records, and other assorted property. While you may be tempted to just toss it all in the dumpster, doing so may subject you to liability. There are several statutes that you should consider when determining how to handle the abandoned property.
Statutory Options for a Landlord
A landlord-tenant relationship may arise following foreclosure if, for example, the owner of the property accepts rent from the former owner. If the tenant subsequently turns over possession of the commercial property but leaves personal property at the premises,[1] California Civil Code provides a landlord with statutory options to deal with “lost” (Cal. Civ. Code § 2080) or “abandoned” property (Cal. Civ. Code §1993).
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Lyndsey Torp, Snell & WilmerMs. Torp may be contacted at
ltorp@swlaw.com
Condo Board Goes after Insurer for Construction Defect Settlement
February 07, 2013 —
CDJ STAFFThe City Bella on Lyndale homeowners association settled with the high rise's developer and builder for $1.9 million over construction defects. The defects included structural deterioration in the project's pool area, extensive air and water leaks in the windows, and structural problems in the project's underground parking garage. City Bella consists of a 15-story tower and a four-story building on Lyndale Avenue in Minneapolis.
They settled the lawsuit in 2011, but the homeowners association is still looking to the insurers to pay up. With legal fees and interest, the total rises to $2.82 million that Travelers could be paying the association.
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Oregon to Add 258,000 Jobs by 2022, State Data Shows
March 26, 2014 —
Alison Vekshin – BloombergOregon expects to add 258,000 jobs by 2022, a 15 percent increase driven by the economic recovery in the construction industry and growth in health care, according to the Oregon Employment Department.
Construction industry employment is projected to rise 29 percent, the fastest of any industry, though short of pre-recessionary growth, the agency said March 12 in a statement.
The predictions “reflect several ongoing trends: continuing recovery from the Great Recession, particularly for the construction industry; a growing health-care sector, due in part to an aging population; continuing population growth; and the need for replacement workers due to baby-boomer retirements,” the agency said.
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Alison Vekshin, BloombergMs. Vekshin may be contacted at
avekshin@bloomberg.net
Milwaukee's 25-Story Ascent Stacks Up as Tall Timber Role Model
January 25, 2021 —
Nadine M. Post - Engineering News-RecordIn January 2019, Preston Cole left his post as Commissioner of the Milwaukee Dept. of Neighborhood Services and became Secretary of Wisconsin’s Dept. of Natural Resources. It was a step up for the 25-year veteran of public service—a forester by profession—who as the city’s top building official had reformed DNS by fostering a developer-friendly environment.
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Nadine M. Post, Engineering News-Record
Ms. Post may be contacted at postn@enr.com
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