Include Contract Clauses for Protection Against Ever-Evolving Construction Challenges
May 30, 2022 —
Michael Henry & Kevin J. Riexinger - Construction ExecutiveThe first quarter of 2022 provided a valuable glimpse into some of the major issues the construction industry can expect to continue impacting jobsites for the rest of the year.
Early in the pandemic, construction was not immune from the shut-downs that swept across market sectors. Workers were staying home to shield themselves and their families from the COVID-19 virus (and variants). This caused delays with construction projects and failures to meet negotiated benchmarks or deadlines. Contractors were left to wonder whether they remained obligated to perform under their contracts, or whether COVID-19 allowed them to invoke force majeure clauses. Over the past two years, there has been much debate about whether force majeure clauses encompass COVID-19 risks.
Traditionally, force majeure is only invoked for significant weather events or natural disasters. Unsurprisingly, outcomes of legal actions regarding COVID-19 and force majeure varied by state and by contract. It didn’t take long for contractors to seek a more predictable and certain solution.
Reprinted courtesy of
Michael Henry & Kevin J. Riexinger, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Riexinger may be contacted at kriexinger@gllawgroup.com
Mr. Henry may be contacted at MbHenry@tcco.com
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Montana Federal Court Upholds Application of Anti-Concurrent Causation Clause
November 08, 2021 —
Tred R. Eyerly - Insurance Law HawaiiInterpreting Montana law, the federal district court found that the policy's anti-concurrent causation clause prevented coverage for the insured's damaged home. Ward v. Safeco Ins. Co. of Am., 2021 U.S. Dist. LEXIS 149051 (D. Mont. Aug. 9, 2021).
Plaintiff was advised by her tenants that water was bubbling up from the ground. It was determined that water was leaking from a main pipe serving the property. Subsequently, this old pipe was abandoned, left in the ground, and replaced with a new pipe in a new path with new excavation. Nevertheless, the insured reported the incident to her agent under her Landlord Protection Policy issued by Safeco, but reported there was no damage to the property.
Two months later, it was discovered a pipe burst again. The insured called her agent, who maintained the loss would not be covered, but agreed to submit a claim to Safeco. Safeco hired an inspector. A report stated that a portion of cracks found in the concrete perimeter of the home were not new and that the shape of the structure on which the house sat could explain their presence. The report noted that new cracks in the foundation could have been caused by a lack of care to make sure that the foundation was sufficient supported by consolidated soil during the excavation of the new water line. Based upon this report, Safeco denied coverage based upon the earth movement and water damage exclusions.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Couple Claims ADA Renovation Lead to Construction Defects
December 30, 2013 —
CDJ STAFFA couple in Mercer County, West Virginia have claimed that the renovations done to their home not only failed to meet the requested ADA standards, but lead to construction defects, as reported by The West Virginia Record. Ray and Sherry Price are suing Lamberts Construction Company of Bluefield, West Virginia, claiming breach of contract and infliction of emotional distress. The couple hired to company to construct a bathroom addition, a bedroom addition, and a new driveway. In addition to other damages, they are also seeking the cost to repair the renovations.
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Construction Defects Are Not An Occurrence Under New York, New Jersey Law
June 18, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe New York Supreme Court, Appellate Division, determined there was no coverage for construction defects under New York or New Jersey law. Nat'l Union Fire Ins. Co. of Pittsburgh, PA v. Turner Constr. Co., 2014 N.Y. App. Div. LEXIS 3546 (N.Y. App. Div. May 15, 2014).
The property owner retained Turner Construction to serve as the general contractor. Turner subcontracted with Permasteelisa North America Corporation to design and build the exterior wall, a "curtain wall," which consisted of granite and glass.
A segment of the pipe rail system fell to the street from the eighth floor of the building. An investigation determined that more than 20% of the pipe rail connections surveyed did not conform to the building plans. Additional problems included inconsistencies in the method of rail attachment, bent brackets on the pipe rail system, cracked glass louvers, cracked glass panels, and water infiltration.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Construction Robots 2023
May 08, 2023 —
Aarni Heiskanen - AEC BusinessHere’s AEC Business’s
catalog of construction robotics companies.
About Construction Robotics
Construction robots have been around since the 1960s. In the 1970s and 1980s, Japanese companies such as the Shimizu Corporation, Obayashi Corporation, and Takenaka Corporation created robots and remote-controlled machines for excavating, material handling, concrete placing, finishing, fireproofing, earthworks, rebar placing, and other construction tasks. However, the overall robotization of the industry has been slow.
The rapid development of artificial intelligence and machine learning has changed the robotic scene. Robotic hardware is also becoming affordable. Coupled with the poor availability of professional construction workers and the urge to industrialize construction, the use of robots will inevitably increase in the coming years.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
There’s the 5 Second Rule, But Have You Heard of the 5 Year Rule?
April 23, 2024 —
Garret Murai - California Construction Law BlogThey’re called deadlines for a reason. Usually, because something really bad could happen if you fail to meet the deadline.
For those in the construction industry, you probably aware of the “deadline” to bring a claim for latent defects (10 years from substantial completion); the deadline to file suit to foreclose on a mechanics lien (90 days from the date of recording the mechanics lien), and the deadline for serving a preliminary notice (generally, 20 days from the date labor and/or materials are first furnished).
Well, here’s another deadline: Under Code of Civil Procedure section 585.310, you have 5 years after a complaint is filed to bring a case to trial, absent the court granting relief. I could leave it at that, but in the next case, Oswald v. Landmark Builders, Inc., 97 Cal.App.5th 240 (2023), was too interesting to pass up.
The Oswald Case
On June 28, 2016, homeowners Jack Oswald and Anne Seley sued their general contractor and its subcontractors alleging construction defects at their home. Answers and cross-complaints were filed and on February 2017 the trial court determined the case to be complex and appointed a discovery master. A discovery master, for those who may be unfamiliar, is usually a retired judge or third-party lawyer appointed by a court to oversee discovery in a case such as written discovery, depositions, site inspections, etc.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
John Paulson’s $1 Billion Caribbean Empire Faces Betrayal
November 27, 2023 —
Jim Wyss & Tom Maloney - BloombergIn the decade since hedge fund billionaire John Paulson took a grand gamble on Puerto Rico, he’s faced the wrath of the markets and mother nature.
He’s navigated hurricanes, earthquakes, the pandemic and the largest municipal bankruptcy in US history to amass a portfolio of luxury hotels and resorts, high-end office blocks, and auto dealerships catering to the island’s rich.
Now, just a few months after breaking ground on one of San Juan’s tallest and most exclusive residential towers, Paulson is facing a new wave of threats: lawsuits that strike at the heart of his Caribbean empire.
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Jim Wyss, Bloomberg and
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Action Needed: HB24-1230 Spells Trouble for Colorado Construction Industry and its Insurers
March 25, 2024 —
David McLain - Higgins, Hopkins, McLain & Roswell, LLCIn an apparent gift to plaintiffs’ construction defect lawyers, Representatives Parenti and Bacon introduced House Bill 24-1230 on February 12, 2024. The bill was assigned to the House Judiciary Committee and is scheduled for hearing on March 6th, during the afternoon session beginning at 1:30 pm. To date, the bill does not have any senate sponsors, perhaps because the senators are more interested in serving their constituents’ needs for attainable housing than in lining the pockets of their plaintiffs’ construction defect attorney friends.
According to the bill’s summary, HB 24-1230 contains the following provisions:
Current law declares void any express waivers of or limitations on the legal rights or remedies provided by the “Construction Defect Action Reform Act” or the “Colorado Consumer Protection Act.” Sections 1 and 4 make it a violation of the “Colorado Consumer Protection Act” to obtain or attempt to obtain a waiver or limitation that violates the aforementioned current law.
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com