Insurer Must Defend Additional Insured Though Its Insured is a Non-Party
November 18, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe plaintiff insurer's motion for partial summary judgment seeking an order that defendant insurer was obligated to defend a non-party as an additional insured was granted. Am Empire Surplus Lines Ins. Co. v. Burlington Ins. Co., 2019 N. Y. Misc. LEXIS 4145 (N. Y. Sup. Ct. July 25, 2019).
Quality Building Construction, LLC was the contractor hired to work on exterior facade of a building owned by Central Park West Corporation. The underlying complaint alleged that Quality caused plastic spacers and pedestals used for the penthouse terrace to fall down the roof drain riser. A clog and rainwater backup resulted in water damage to apartment 8A. The resulting damage was allegedly due to the clogged roof drain riser.
Quality subcontracted the work to Mega State, Inc. The subcontract required Mega to indemnify and hold Quality harmless against claims in connection with Mega's work, as well as name Quality as an additional insured on a primary, non-contributory bases under Mega's CGL policy. Burlington issued a policy to Mega naming Quality as an additional insured. American Empire issued a CGL policy to Quality.
Quality was sued in the underlying action, but Mega was not. American Empire tendered a demand for coverage to Mega and Burlington, relying on the agreement between Quality and Mega. Burlington responded that Mega was not liable for the alleged damages. American Empire sued Burlington. Subsequently, Burlington accepted the tender to defend Quality in the underlying action, and reserved rights as to whether Burlington's policy was primary and on the question of indemnification. American Empire agreed to withdraw its suit if Burlington would modify its reservation of rights. Burlington refused.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Anatomy of an Indemnity Provision
January 28, 2015 —
Garret Murai – California Construction Law BlogIndemnity clauses are one of the most negotiated (and litigated) provisions in a construction contract.
They are also one of the most least understood.
But we’re here to dissect it for you, so to speak.
What is an indemnity clause?
An indemnity clause is simply a risk transfer provision that seeks to transfer risk from one party to another party.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Take Advantage of AI and Data Intelligence in Construction
May 06, 2019 —
Nick Carter - Construction ExecutiveFor consumers, AI and data intelligence are daily activities. Purchase recommendations from Amazon simplify holiday shopping. Music options from Spotify helps employees focus during the workday and relax at night. Car-sharing apps remove the stress from post-happy hour transport.
It is time for this kind of data-driven ease to hit the construction industry. Building is booming, yet despite the good times, the industry still lags in terms of data intelligence and AI. With them, construction providers can transform document and jobsite information into intelligent insights, reduce errors, keep projects on schedule and predict and prevent costly inefficiencies. Artificial intelligence is the “connective tissue” that construction is missing--if it is used wisely.
Why Construction is Ready for AI
With its endless stream of owners, architects, engineers, contractors, subcontractors and suppliers, the construction industry manages more critical information on a day-to-day basis than nearly any other business. As a result, there are dozens of potential miscommunications just waiting to happen every day.
Reprinted courtesy of
Nick Carter, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Georgia Supreme Court Limits Damages Under Georgia Computer Systems Protection Act
March 01, 2017 —
Chadd Reynolds – Autry, Hanrahan, Hall & Cook, LLPOn January 27, 2017, the Supreme Court of Georgia issued a decision determining whether the Georgia Computer Systems Protection Act (“GCSPA”) provides for punitive damages. While not directly related to construction, the GCSPA can be a potential mechanism for asserting claims against former employees that use company information stored in computers.
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Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLPMr. Reynolds may be contacted at
reynolds@ahclaw.com
Big Bertha Lawsuits—Hitachi Zosen Weighs In
January 31, 2018 —
John P. Ahlers – Ahlers Cressman & Sleight PLLCIn a recent article published by
Seattle Business Magazine, the Japanese manufacturer of the much-maligned tunnel machine (nicknamed “Bertha”) provided its version of events and its position to the public. The interview took place after executives from Hitachi Zosen were not invited to the ceremony celebrating Bertha’s breakthrough at the end of its two-mile journey underground Seattle. Ultimately, apparently, Seattle Tunnel Partners (“STP”), the general contractor for the project, and Washington State Department of Transportation (“WSDOT”) agreed that Hitachi Zosen executives could attend the event, but they were not allowed to stand with other dignitaries on a specially-built viewing platform. The $3.2 billion Alaska Way Viaduct replacement project is embroiled in a number of legal controversies. Now that the tunnel is finished, Hitachi Zosen has finally decided to tell its side of the story.
Hitachi’s problems started on December 5, 2013, three days after the tunnel-boring machine (“TBM”) hit a 120-foot long, eight-inch diameter steel well casing (the project DRB has determined that the pipe was a differing site condition), the TBM overheated and ground to a halt. The project was shut down almost two years while the TBM was being repaired. According to Hitachi Zosen, it always worked hard to get the job done. “We wanted to finish the tunnel and make Seattle happy with the results,” said Hidetoshi Hirata, the general manager for Hitachi Zosen.
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John P. Ahlers, Ahlers Cressman & Sleight PLLCMr. Ahlers may be contacted at
john.ahlers@acslawyers.com
America’s Infrastructure Gets a D+
March 16, 2017 —
Garret Murai – California Construction Law BlogThe American Society of Civil Engineers (ASCE) has issued their 2017 Infrastructure Report Card, which assigns a letter grade to the nation’s infrastructure.
Our country’s grade in 2017? A disappointing D+.
Although, if you’re a glass half full kind of person (bless your soul) at least our grade didn’t fall since the last report card was issued in 2013, when our grade was a D+ as well.
In short, we suck. Although, apparently, we don’t suck evenly across the board.
ASCE has divided its cumulative GPA into grades for specific courses, if you will. Our transit systems received a grade of D-; our airports, dams, drinking water and waste water plants, inland waterways, levees and roads received a grade of D; our power plants, hazardous waste plants, public parks and schools received a grade of D+; our bridges, ports and solid waste plants a grade of C+, and our rail systems received a grade of B.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
The Economic Loss Rule and the Disclosure of Latent Defects: In re the Estate of Carol S. Gattis
January 15, 2014 —
Brady Iandiorio - Higgins, Hopkins, McLain & Roswell, LLCIn a recent case of first impression, the Colorado Court of Appeals determined that the economic loss rule does not bar a nondisclosure tort claim against a seller of a home, built on expansive soils which caused damage to the house after the sale. The case of In re the Estate of Carol S. Gattis represents a new decision regarding the economic loss rule. Because it is a case of first impression, we must wait to see whether the Colorado Supreme Court grants a petition for certiorari.
Until then, we will analyze the decision handed down on November 7, 2013. The sellers of the home sold it to an entity they controlled for the purpose of repairing and reselling the home. Before that purchase, Sellers obtained engineering reports including discussion of structural problems resulting from expansive soils. A structural repair entity, also controlled by Sellers, oversaw the needed repair work. After the repair work was completed, Sellers obtained title to the residence and listed it for sale.
Sellers had no direct contact with Gattis, who purchased the residence from Sellers. The purchase was executed through a standard-form real estate contract, approved by the Colorado Real Estate Commission: Contract to Buy and Sell Real Estate, to which no changes were made. Several years after taking title to the residence, Gattis commenced action, pleading several tort claims alleging only economic losses based on damage to the residence resulting from expansive soils.
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Brady Iandiorio, Higgins, Hopkins, McLain & Roswell, LLCMr. Iandiorio may be contacted at
iandiorio@hhmrlaw.com
CISA Guidance 3.1: Not Much Change for Construction
June 22, 2020 —
Laura Bourgeois LoBue - Gravel2Gavel Construction & Real Estate Law BlogThis week, the Cybersecurity & Infrastructure Security Agency (CISA) issued Version 3.1 of its Guidance on the Essential Critical Infrastructure Workforce. For the most part, CISA’s Guidance 3.1 did not change from Version 3.0 as it relates to construction. However, CISA added a few construction-related services to “Essential Critical Infrastructure”:
- “Workers who support the construction and maintenance of electric vehicle charging stations.”
- “Engineers performing or supporting safety inspections.”
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Laura Bourgeois LoBue, PillsburyMs. LoBue may be contacted at
laura.lobue@pillsburylaw.com