Fifth Circuit Holds Insurer Owes Duty to Defend Latent Condition Claim That Caused Fire Damage to Property Years After Construction Work
September 21, 2020 —
Jeremy S. Macklin - Traub LiebermanMost general liability policies only provide coverage for “property damage” that occurs during the policy period. Thus, when analyzing coverage for a construction defect claim, it is important to ascertain the date on which damage occurred. Of course, the plaintiffs’ bar crafts pleadings to be purposefully vague as to the date (or period) of damage to property. A recent Fifth Circuit decision applying Texas law addresses this coverage issue in the context of allegations of a condition created by an insured during the policy period that caused damage after the policy expired.
In Gonzalez v. Mid-Continent Cas. Co., 969 F.3d 554 (5th Cir. 2020), Gilbert Gonzales (the insured) was a siding contractor. In 2013, the underlying plaintiff hired Gonzales to install new siding on his house. In 2016, the underlying plaintiff’s house was damaged in a fire. The underlying plaintiff sued Gilbert in Texas state court alleging that when Gonzalez installed the siding in 2013, he hammered nails through electrical wiring and created a dangerous condition that caused a fire three years later in 2016.
At the time Gilbert performed construction work, he was insured by Mid-Continent Casualty Company. Mid-Continent disclaimed coverage to Gonzales on the basis that the complaint unequivocally alleged that property was damaged in 2016 and there were no allegations that property damage occurred prior to 2016 or was continuing in nature.
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Jeremy S. Macklin, Traub LiebermanMr. Macklin may be contacted at
jmacklin@tlsslaw.com
Loaded Boom of Burning Tower Crane Collapses in Manhattan, Injuring Six
August 07, 2023 —
James Leggate - Engineering News-RecordThe boom of a tower crane, with its engine on fire, collapsed July 26 at a high-rise construction site in midtown Manhattan—hitting the face of the building across the street as it dropped its 16-ton load. City officials said they would investigate the mishap, which caused minor injuries to two firefighters and four others.
Reprinted courtesy of
James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
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Appellate Court of Maryland Construes Notice Conditions of A312 Performance Bond in Favor of Surety
January 02, 2024 —
Joel P. Williams - White and Williams LLPThe Appellate Court of Maryland issued a reported opinion in a case construing an American Institute of Architects (“AIA”) A312 performance bond. In Wildewood Operating Company, LLC v. WRV Holdings, LLC, et al. 2023 Md. App. LEXIS 720 (Oct. 30, 2023), the Appellate Court of Maryland held that a performance bond surety was discharged from liability where the owner/obligee failed to give the surety notice of the contractor’s default termination until after a third party had completed the work.
The project concerned the construction of an assisted living facility in St. Mary’s County, Maryland. The owner, Wildewood Operating Company, LLC, entered into an A312-2010 performance bond with Clark Turner Construction, LLC, as contractor, and First Indemnity of America Insurance Company, as surety. When Clark Turner failed to complete certain stormwater management work adjacent to the site, Wildewood, Clark Turner, and other parties entered into a Work Agreement to address completion of the work. The surety was not a party to the Work Agreement.
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Joel P. Williams, White and Williams LLPMr. Williams may be contacted at
williamsj@whiteandwilliams.com
A Court-Side Seat: Coal-Fired Limitations, the Search for a Venue Climate Change and New Agency Rules that May or May Not Stick Around
February 15, 2021 —
Anthony B. Cavender - Gravel2GavelThis is a brief review of recent significant environmental and administrative law rulings and developments. With the change in presidential administrations, the fate of at least some of the newly promulgated rules is uncertain.
THE U.S. SUPREME COURT
BP PLC v. City and County of Baltimore
On January 19, 2021, the Court heard oral argument in BP PLC v. City and County of Baltimore. The respondents filed a Greenhous Gas Climate Change lawsuit in state court, alleging that BP, like other energy companies, is liable for significant damage caused by the sale and promotion of petroleum products while knowing that the use of these products and the resulting release of greenhouse gases damages the environment and public property. Several similar lawsuits have been filed in state courts, pleading common law violations as well as trespass and nuisance law violations The energy companies have tried, unsuccessfully to date, to remove these cases to federal court. The petitioners argue that the federal removal statutes allow the federal courts of appeal to review the lower court’s remand, thus opening the possibility that some of the issues presented in these cases can be tried in federal court, presumably a friendlier forum. A decision on this procedural issue should be rendered in a few months. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com
Top 10 Take-Aways from the 2024 Fall Forum Meeting in Pittsburgh
December 03, 2024 — Marissa L. Downs - The Dispute Resolver
Over 500 construction law attorneys and consultants convened last week at the confluence of three rivers in what became the first-ever meeting in Pittsburgh, Pennsylvania of the ABA Forum on Construction Law. The Steel City was a fitting backdrop for a meeting focused on issues of design in construction. Thanks to the hard work of many, most notably the newly minted Forum Chair Keith Bergeron and Meeting Coordinators Kendall Woods and Michael Clark, the meeting's attendees brought home new connections and a host of new lessons learned. Read on for my top 10 take-aways from the 2024 Fall Meeting in Pittsburgh and feel free to share yours in the comments below.
10. An architect's standard of care does not require perfection. A common refrain across many of the meeting's plenary sessions was that any design that is produced by human hands will never be perfect. In recognition of our own fallibility, the legal standard to which design professionals will be held to account does not require that their designs be error-free. A design professional must generally exercise the degree of care and skill ordinarily exercised by professionals performing similar services under similar circumstances. Establishing what that means in each locality will vary and will most likely need to be supported by the expert opinion of another practicing design professional. Read the court decision
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Reprinted courtesy of Marissa L. Downs, Laurie & Brennan, LLP
Ms. Downs may be contacted at mdowns@lauriebrennan.com
A Tuesday With Lisa Colon
July 02, 2024 — Lisa Colon - The Dispute Resolver
As a seasoned construction lawyer, I've always prided myself on being independent and tough. However, my toughness was tested when my life took an unexpected turn. In 2013, I was diagnosed with a genetic cardiomyopathy, a condition which made it harder for my heart to pump blood. That diagnosis in itself was devasting since I had to change many things about the way I lived, including having to abandon running, my favorite hobby. After living 10 years in this new normal, in May 2023, I was told my right ventricle was no longer working and there were no further therapies available. I needed a heart transplant. The journey was long, arduous, and filled with both physical and emotional challenges. This life-altering experience not only gave me a new lease on life but also profoundly changed my perspective on practicing law. In this post, I will share three key lessons I learned from my heart transplant journey that have significantly impacted how I approach my legal practice.
Lesson 1: The Importance of Patience and Persistence
The journey to receiving a heart transplant is often fraught with uncertainty and long waiting periods. My new heart came quickly. I waited 22 days on the transplant list, but for me, the wait seemed interminable, filled with numerous hospital visits, medical tests, and moments of despair. Then came the recovery. The early days were filled with weekly biopsies, unimaginable nerve pain, and days of wondering if things would ever get better. During this time, I learned the true meaning of patience. Each day was a test of my resolve, and giving up was never an option. I had to persist through the toughest days, believing that a positive outcome was possible. Read the court decision
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Reprinted courtesy of Lisa Colon, Saul Ewing
Ms. Colon may be contacted at lisa.colon@saul.com
London’s Best Districts Draw Buyers on Italian Triple Dip
August 27, 2014 — Neil Callanan – Bloomberg
Italians were the biggest group of foreigners to buy homes in London’s best districts in the seven months through July as weak domestic growth prompted investment abroad.
Italy, which fell into a triple-dip recession in the second quarter, accounted for 6.7 percent of all homes sold in the 13 neighborhoods that Knight Frank LLP defines as prime central London, the broker said in an e-mail today. France was second as euro-area investors accounted for 14.5 percent of purchases, the most in the period since 2011. Russia led the group a year ago, followed by the United Arab Emirates.
The European Central Bank’s monetary-policy easing “is driving more euro-zone residents to search for yield abroad,” Goldman Sachs analysts including New York-based chief currency strategist Robin Brooks wrote in a note last week. Yields for homes in prime central London rose in July for the first time since April 2011 as more people opted to rent on concerns that home taxes may rise if the Conservative Party-led government loses next year’s elections, Knight Frank said on Aug. 11. Read the court decision
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Reprinted courtesy of Neil Callanan, Bloomberg
Mr. Callanan may be contacted at ncallanan@bloomberg.net
Statute of Limitations Bars Lender’s Subsequent Action to Quiet Title Against Junior Lienholder Mistakenly Omitted from Initial Judicial Foreclosure Action
October 19, 2020 — Lyndsey Torp - Snell & Wilmer Real Estate Litigation Blog
A recently issued opinion by the Court of Appeal, Fifth Appellate District tells a cautionary tale regarding a lender’s failure to name a junior lienholder in its initial judicial foreclosure action.
In Cathleen Robin v. Al Crowell, — Cal.Rptr.3d —-, 2020 WL 5951506, plaintiffs sued defendant, a junior lienholder, for quiet title, having failed to name him in the initial judicial foreclosure action. Defendant raised the statute of limitations defense, but the trial court found in favor of plaintiffs. The court of appeal reversed, holding that the 60-year statute of limitations which the trial court applied only applied to a nonjudicial trustee’s sale, and the trial court could not exercise the trustee’s power of sale after the expiration of the statute of limitations on a judicial action to foreclose.
In 2006, plaintiffs loaned Steve and Marta Weinstein (the “Weinsteins”) $450,000, secured by a deed of trust on one parcel of the Weinstein’s property. In 2007, the Weinsteins and defendant Al Crowell (“Crowell”) recorded a second deed of trust on the property, securing a promissory note executed by the Weinsteins in 2004. Read the court decision
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Reprinted courtesy of Lyndsey Torp, Snell & Wilmer
Ms. Torp may be contacted at ltorp@swlaw.com