Cambridge Massachusetts Building Expert Directory

City of Birmingham Countersues Contractor for Incomplete Work

March 12, 2014 — Beverley BevenFlorez-CDJ STAFF
Back in December of 2013, WVTM News reported that Chris Woods, a contractor, filed a lawsuit against the City of Birmingham, Alabama, demanding $1.5 million for the West Police Precinct and two other projects he had been contracted on. However, “Birmingham claimed Woods was fired for not completing projects on time and other contract breaches.” On March 7th, WVTM News reported that the City of Birmingham has filed a counterclaim against Woods, alleging that he “owes $1.2 million for incomplete work.” The city listed his “inability to meet specific construction deadlines and finish either project on time as factors for his termination.” Woods, however, blamed the city for delays, citing multiple design changes requested by Birmingham. The city’s counterclaim also alleged that “Star Insurance Company, ‘identified major, numerous defects in the work that Woods had performed prior to the termination of the West Precinct Project.’” Read the full story, December 2013 Article... Read the full story, March 2014 Article... Read the court decision
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First Suit Filed for Losses Caused by COVID-19

March 30, 2020 — Tred R. Eyerly - Insurance Law Hawaii
Last week, the first lawsuit was filed seeking insurance coverage for business-interruption due to losses caused by COVID-19. The case, Cajun Conti, LLC, et al. v. Certain Underwriters at Lloyd's of London, ,et al., was filed in Louisiana. A New Orleans restaurant, Oceana Grill," seeks a declaratory judgment that its "all risks" policy issued by Lloyd's covers losses resulting from the closure of its restaurant due to the Governor's order restricting public gatherings and the Mayor of New Orleans' order closing restaurants. The lawsuit contends that "contamination of the insured premises by the coronavirus would be a direct physical loss needing remediation to clean the surfaces of the establishment." The lawsuit further alleges the policy contains no exclusions for a "viral pandemic." The suit seeks a declaration that "the policy provides coverage to plaintiffs for any future civil authority shutdowns of restaurants in the New Orleans area due to physical loss from coronavirus contamination and that the policy provides business income coverage in the event that the coronavirus has contaminated the insured premises." The obvious dispute will be whether the coronavirus constitutes a "direct physical loss or damage" as required by the policy. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Court of Appeals Discusses the Difference Between “Claims-Made” and “Occurrence-Based” Insurance Policies

May 31, 2021 — Garret Murai - California Construction Law Blog
As most contractors know, scope, price and time are the “big” three in any construction contract. Nearly as important, however, are the insurance provisions. Patricularly, when things go bad on a construction project. As the next case, Guastello v. AIG Specialty Insurance Company 61 Cal.App.5th 97 (2021) discusses, the difference between “claims-made” versus “occurrence-based” coverage can be extremely important. The Guastello Case In 2003 and 2004, subcontractor C.W. Poss Inc. built retaining walls in the Pointe Monarch housing development in Dana Point, California. Poss performed all related excavation, ground and grading work. In 2006, Thomas Guastello purchased a home in the development, and in January 2010, a retaining wall close to his lot suffered a massive failure that causing over $700,000 in damages. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Alabama Court Upholds Late Notice Disclaimer

August 20, 2018 — Brian Margolies - TLSS Insurance Law Blog
In its recent decision in Evanston Ins. Co. v. Yeager Painting, LLC, 2018 U.S. Dist. LEXIS 130316 (N.D. Ala. Aug. 3, 2018), the United States District Court for the Northern District of Alabama had occasion to consider an insured’s reporting obligations under a general liability policy. Evanston’s insured, Yeager, was hired to sandblast water tanks, and in turn, subcontracted out the work to a third party. On May 19, 2012, an employee of the subcontractor was severely injured in connection with a work-site accident. It is not entirely clear when Yeager provided notice of occurrence to Evanston, although Evanston advised by letter dated January 30, 2013 that it would be further investigating the matter subject to a reservation of rights. Evanston subsequently denied coverage by letter dated April 10, 2013, the disclaimer based on a subcontractor exclusion on the policy. Notably, Evanston’s letter advised that Yeager should immediately contact Evanston if any facts changed or if it had any additional information concerning the matter. Read the court decision
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Reprinted courtesy of Brian Margolies, Traub Lieberman Straus & Shrewsberry LLP
Mr. Margolies may be contacted at bmargolies@tlsslaw.com

Wisconsin Federal Court Addresses Scope Of Appraisal Provision In Rental Dwelling Policy

September 05, 2022 — James M. Eastham - Traub Lieberman
In Higgins v. State Farm Fire & Cas. Co., No. 22-C-198, 2022 U.S. Dist. LEXIS 117477 (E.D. Wis. July 5, 2022), the Court addressed the often disputed question of whether an appraisal provision in an insurance policy is limited to disputes over valuation or extends beyond valuation to causation and/or coverage. The underlying loss in the Higgins case involved a fire at a rental dwelling owned by the Plaintiff and insured by State Farm under a Rental Dwelling policy for, among other things, fire losses. Subsequent to being notified of the fire, State Farm investigated and provided the Plaintiff with its estimated cost of repair. Plaintiff disputed the estimate, including the repairs necessary, and also sought additional sums for debris removal and lost rent. The insurance policy at issue in Higgins included an appraisal provision which provided: “If you and we fail to agree on the amount of loss, either one can demand that the amount of the loss be set by appraisal.” Pursuant to this provision, Plaintiff demanded that State Farm submit to an appraisal to resolve the parties' disagreements. State Farm responded by indicating that it would enter into appraisal over the areas where there were "pricing differences" but not areas where there were "scope differences." According to State Farm, there were a number of issues regarding the scope of repairs necessary to restore the dwelling to its pre-loss condition. Plaintiff disagreed with State Farm's position and did not seek to move forward with the appraisal process on only the items State Farm identified as appropriate for appraisal. Read the court decision
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Reprinted courtesy of James M. Eastham, Traub Lieberman
Mr. Eastham may be contacted at jeastham@tlsslaw.com

Home Prices in 20 U.S. Cities Kept Climbing in January

April 06, 2016 — Victoria Stilwell – Bloomberg
Home values in 20 U.S. cities kept climbing in January, a sign the limited supply of available properties may push prices out of reach for some buyers. The S&P/Case-Shiller index of property values increased 5.7 percent from January 2015, following a 5.6 percent gain in the year ended in December, the group said Tuesday in New York. That matched the median projection of 26 economists surveyed by Bloomberg. Nationally, prices rose 5.4 percent year-over-year. Home values that are rising more quickly than incomes could pose a problem for the housing recovery, as they put purchases out of reach for first-time and low-income buyers. A wider selection of available homes will be needed to help keep price increases in an accessible range. Read the court decision
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Reprinted courtesy of Victoria Stilwell, Bloomberg

In Hong Kong, You Can Find a Home Where the Buffalo Roam

September 17, 2014 — Shai Oster – Bloomberg
To city dwellers worried about mice and rats, spare a thought for Hong Kongers confronting half-ton feral beasts. A few miles from some of the most densely populated neighborhoods in the world, more than 1,000 cows and buffalo from abandoned farms roam the countryside. Development now is pushing them into harm’s way and onto roads. Hong Kong represents an extreme example of the task many communities face of balancing conservation and growth. Wolves sniff near the suburbs of Paris, bears roam Lake Tahoe and moose stumble across the roads of Halifax. There’s a new word to describe how undomesticated animals adapt to man-made environments: synurbanization. Read the court decision
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Reprinted courtesy of Shai Oster, Bloomberg
Shai Oster may be contacted at soster@bloomberg.net

Caterpillar Forecast Tops Estimates as Construction Recovers

January 28, 2014 — Shruti Date Singh – Bloomberg
Caterpillar Inc. (CAT), the largest maker of mining and construction equipment, forecast earnings and revenue for 2014 that topped analysts’ estimates as the recovery in the U.S. building industry spurs sales of bulldozers and excavators. Sales will be about $56 billion plus or minus 5 percent, the company said in a statement today. The average of 13 estimates compiled by Bloomberg was $55.5 billion. Profit will be $5.85 a share excluding $400 million to $500 million in restructuring costs. That’s more than the $5.77 average estimate. Peoria, Illinois-based Caterpillar also said it approved a $10 billion share buyback plan through 2018 and will repurchase about $1.7 billion in stock in the first quarter that will complete its previous authorization. Read the court decision
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Reprinted courtesy of Shruti Date Singh, Bloomberg
Ms. Singh may be contacted at ssingh28@bloomberg.net

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