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Pennsylvania Federal Court Addresses Recurring Asbestos Coverage Issues

March 04, 2019 — Craig O’Neill & Laura Rossi - Complex Insurance Coverage Reporter
In a pair of recent asbestos coverage decisions, a Pennsylvania federal court issued rulings addressing expedited funding orders, number of “occurrences,” and the applicability of aggregate limits under the Fourth Circuit’s Wallace & Gale approach. Zurn Industries, LLC v. Allstate Insurance Company, 2018 U.S. Dist. LEXIS 197481 (W.D. Pa. Nov. 20, 2018) Policyholder Zurn, a manufacturer and distributor of boilers, was named as a defendant in thousands of underlying asbestos-related bodily injury suits. After its primary insurers claimed exhaustion, Zurn moved on an expedited basis to require two of its excess insurers to each assume fifty percent of its defense and indemnity costs until they reached a permanent cost-sharing agreement. In denying Zurn’s expedited request for interim funding, the court held that the record was insufficient “in the opening stages of litigation, before discovery has occurred” to determine whether the underlying coverage had been properly exhausted but left the door open for Zurn to refile its motion on a more developed record. Reprinted courtesy of Craig O’Neill, White and Williams LLP and Laura Rossi, White and Williams LLP Mr. Levine may be contacted at oneillc@whiteandwilliams.com Ms. Rossi may be contacted at rossil@whiteandwilliams.com Read the court decision
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Yellen Has Scant Power to Relieve U.S. Housing Slowdown

June 11, 2014 — Rich Miller and Victoria Stilwell - Bloomberg
The hesitant housing recovery has surprised and concerned Federal Reserve Chair Janet Yellen and her colleagues at the central bank. It’s not clear how much they can do about it. While the industry is rebounding from a weather-ravaged first quarter, the pickup will probably fall short of previous projections, according to economists at Goldman Sachs Group Inc. of New York and Macroeconomic Advisers LLC in St. Louis. As a result, they trimmed their forecasts for economic growth in the second half of 2014 to about 3.25 percent from 3.5 percent. “Housing is a growing worry,” said Macroeconomic Advisers’ senior economist Ben Herzon. Mr. Miller may be contacted at rmiller28@bloomberg.net; Ms. Stilwell may be contacted at vstilwell1@bloomberg.net Read the court decision
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Reprinted courtesy of Rich Miller and Victoria Stilwell, Bloomberg

Team Temporarily Stabilizes Delaware River Bridge Crack

February 02, 2017 — Justin Rice - Engineering News-Record
The team temporarily stabilizing the Delaware River Bridge and planning its permanent repair also are trying to find a precedent for the bridge’s uncommon fracture. Connecting the Pennsylvania and New Jersey turnpikes, the 61-year-old symmetrical truss bridge was shut down indefinitely on Jan. 20, when a complete fracture in a steel truss was discovered below the bridge deck. Read the court decision
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Reprinted courtesy of Justin Rice, ENR
Mr. Rice may be contacted at ricej@enr.com

Construction Termination Issues for the Architect and Engineer: Part 1– Introduction to the Series

July 24, 2023 — Melissa Dewey Brumback - Construction Law in North Carolina
Earlier this year, I was asked to talk to other construction lawyers on the topic of termination. My first question was– whose termination are we talking about here– the architect / engineer? The contractor? Is someone wanting to “fire” the owner? The answer, as it turns out, is — yes. That is, yes, any and all of the above termination topics were on the table. As you may have suspected, even the threat of a termination is bad, bad news. It is the “nuclear option” for a construction project. Everyone risks getting harmed. As the design professional administering a contract, you run a risk of being dragged into litigation no matter what you do. So, how should you proceed? Carefully. Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett
Ms. Brumback may be contacted at mbrumback@rl-law.com

Construction Defect Dispute Governed by Contract Disputes Act not yet Suited to being a "Suit"

June 25, 2019 — William S. Bennett - Saxe Doernberger & Vita, P.C.
The Southern District of California recently held that a series of demands for a general contractor to investigate and repair several construction defects at a U.S. Army facility did not constitute a “suit” within the meaning of the general contractor’s commercial general liability (“CGL”) policy. In Harper Construction Co., Inc. v. Nat’l Union Fire Ins. Co. of Pittsburgh, Pa., the U.S. Government hired Harper Construction Company (“Harper”) to construct a U.S. Army training facility for the Patriot Missile System in Fort Sill, Oklahoma. No. 18-cv-00471-BAS-NLS (S.D. Cal. Mar. 28, 2019). During the project, Harper hired Harper Mechanical Contractors (“Harper Mechanical”), an independent company, as a subcontractor “to perform demolition, grading, and other work at the Project.” After Harper completed the project, the government informed Harper of property damage at the project, “including, but not limited to, gypsum wallboard cracks and binding doors.” Harper attempted to repair the issues, but the problems continued. The issues were apparently the result of Harper Mechanical’s grading work. Subsequently, the government sent two letters requesting an investigation and asking Harper to “propose a plan to correct the issues.” As Harper undertook an investigation spanning multiple years, the government became increasingly frustrated with the delays. The government threatened to initiate “formal administrative recourse” and to demolish the project, forcing Harper to re-build from the ground up. It also sent Harper another letter requesting Harper submit a formal proposal to correct the issues. Read the court decision
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Reprinted courtesy of William S. Bennett, Saxe Doernberger & Vita, P.C.
Mr. Bennett may be contacted at wsb@sdvlaw.com

Defective Sprinklers Not Cause of Library Flooding

October 30, 2013 — CDJ STAFF
Sprinklers are important in any public building, but libraries with their large collections of nicely flammable paper. Of course, you also want to keep those books dry. The Hilton Head Island library investigated its sprinklers after a malfunctioning sprinkler head flooded the Friends of the Library bookshop, ruining thousands of books. The investigation found that, apart from the malfunction, the sprinklers had a defect that could have lead to their failure to operate in the event of a fire. The sprinklers had been the subject of a voluntary recall in 2001, however the 220 sprinkler heads were not replaced at that time. The county claimed that they were unaware of the recall at the time, and so failed to take advantage of program under which the manufacturer would pay for the recall. That program ended in 2007. Read the court decision
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Alleged Defective Water Pump Leads to 900K in Damages

January 13, 2014 — CDJ STAFF
A lawsuit filed by Liberty Mutual on behalf of their client, Turner Construction, alleges that defects in the installation of a water pump lead to $900,000 in costs for a building in New Jersey. They are seeking compensation from Triangle Plumbing. Law360 quotes the complaint, which states “as a result of Triangle’s failure to provide a complete, functional plumbing system at the property as required by the subcontract agreement, Triangle has breached the specific scope of work provision of the subcontract agreement.” Read the court decision
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Oregon Supreme Court Confirms Broad Duty to Defend

January 13, 2017 — Theresa A. Guertin - Saxe Doernberger & Vita, P.C. Blog
The Supreme Court of Oregon issued a decision at the end of last year which perfectly illustrates the lengths to which a court may go to grant a contractor’s claim for defense from its insurer in a construction defect suit. In West Hills Development Co. v. Chartis Claims, Inc.,1 the Court held that a subcontractor’s insurer had a duty to defend a general contractor as an additional insured because the allegations of a homeowner’s association’s complaint could be interpreted to fall within the ambit of coverage provided under the policy—despite the fact that the policy only provided ongoing operations coverage, and despite the fact that the subcontractor was never mentioned in the complaint. The decision is favorable to policyholders but also provides an important lesson: that contractors may avoid additional insured disputes if those contractors have solid contractual insurance requirements for both ongoing and completed operations risks. Read the court decision
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Reprinted courtesy of Theresa A. Guertin, Saxe Doernberger & Vita, P.C.
Ms. Guertin may be contacted at tag@sdvlaw.com

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