When is Construction Put to Its “Intended Use”?
October 10, 2013 —
Brady Iandiorio — Higgins, Hopkins, McLain & Roswell, LLC.Defining words and phrases in the law can be a tricky proposition. In everyday life one would presume to know what the phrase “intended use” would mean, but when it comes to litigation, oftentimes the definitions become much more nuanced.
On March 12, 2013, in the Bituminous Cas. Corp. v. Hartford Cas. Ins. Co. v. Canal Ins. Co., WL 950800 (D. Colo. 2013) case, Senior District Court Judge Wiley Y. Daniel denied Third-Party Defendant Canal Insurance Company’s (“Canal”) motion to dismiss Third-Party Plaintiff Hartford Casualty Insurance Company’s (“Hartford”) third-party complaint. The case arose out of a liability insurance coverage dispute related to an underlying construction defect lawsuit. In the construction defect suit, a plaintiff homeowner’s association brought a suit against a developer and a general contractor (“GC”) among others. While the underlying action was settled, a dispute remained between Bituminous Casualty Corporation, which insured the GC, and Hartford, which insured the developer.
Hartford asserted third-party claims against Canal seeking a declaration of Canal’s obligations and contribution in the event Hartford owed any defense or indemnity obligations to the GC. Hartford’s claims are based on the premise that Canal owed a duty to defend and/or indemnify the GC in the underlying action.
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Brady IandiorioBrady Iandiorio can be contacted at
Iandiorio@hhmrlaw.com
Eleventh Circuit Rules That Insurer Must Defend Contractor Despite “Your Work” Exclusion, Where Damage Timing Unclear
May 13, 2019 —
Michael S. Levine & David M. Costello - Hunton Andrews KurthThe Eleventh Circuit has reversed an insurer’s award of summary judgment after finding that uncertainty about when the alleged property damage occurred raised questions about whether the damage came within the scope of the “Your Work” exclusion. More specifically, the court found unclear whether the damage occurred before or after the contractor abandoned the job, thereby triggering an exception to the “Your Work” exclusion for damage to work that had “not yet been completed or abandoned.” The decision illustrates how timing can be a critical factor when it comes to triggering coverage for work and completed operations.
In Southern-Owners Insurance Company v. MAC Contractors of Florida, LLC, a pair of trustees hired MAC Contractors (doing business as KJIMS Construction) to serve as the general contractor for a custom residence. After construction began, disputes between the trustees and KJIMS caused the contractor to abandon the job before completing the project. The trustees followed with a lawsuit alleging, among other things, that KJIMS had damaged wood floors and a metal roof, which KJIMS had promised to remediate but never did.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
David Costello, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Costello may be contacted at dcostello@HuntonAK.com
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Mass-Timber Furnished Apartments Fare Well in Fire Tests
August 24, 2017 —
Nadine M. Post - Engineering News-RecordAdvocates for a code change that would allow taller heavy-timber frames are buoyed by the good performance of mass-timber structures in the first U.S. fire tests on full-scale furnished apartments.
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Nadine M. PostMs. Post may be contacted at
postn@enr.com
Reasonableness of Denial of Requests for Admission Based Upon Expert’s Opinions Depends On Factors Within Party’s Understanding
February 27, 2019 —
Stephen M. Tye & Lawrence S. Zucker II - Haight Brown & Bonesteel LLPIn Orange County Water District v. The Arnold Engineering Company (D070763), the Fourth Appellate District examined the criteria for evaluating the reasonableness of a parties’ denial of requests for admission (RFA’s) based upon their expert’s opinions and the proof required to recover costs for unreasonable denials.
In Orange County Water District, the Orange County Water District (the District) sued several current and former owners and operators of industrial sites, including The Arnold Engineering Company (Arnold), to recover expenses associated with groundwater cleanup efforts intended to address groundwater contamination caused by volatile organic compounds (VOC’s) and other chemicals. Over six years, the parties conducted extensive discovery, including document productions, depositions, and soil sampling and monitoring.
Reprinted courtesy of
Stephen M. Tye, Haight Brown & Bonesteel LLP and
Lawrence S. Zucker II, Haight Brown & Bonesteel LLP
Mr. Tye may be contacted at stye@hbblaw.com
Mr. Zucker may be contacted at lzucker@hbblaw.com
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Preparing the Next Generation of Skilled Construction Workers: AGC Workforce Development Plan
November 08, 2017 —
David R. Cook Jr. - Autry, Hanrahan, Hall & Cook, LLPIn August, Associated General Contractors (AGC) and Autodesk released the results of their 2017 Construction Workforce Shortage Survey. Of the more than 1,600 survey respondents, 70 percent said they are having difficulty filling hourly craft positions. Craft worker shortages are the most severe in the West, where 75 percent of contractors are having a hard time filling those positions, followed by the Midwest where 72 percent are having a hard time finding craft workers, 70 percent in the South and 63 percent in the Northeast.
Tight labor market conditions are prompting firms to change the way they operate, recruit and compensate workers. Most firms report they are making a special effort to recruit and retain veterans (79 percent); women (70 percent), and African Americans (64 percent). Meanwhile, half of construction firms report increasing base pay rates for craft workers because of the difficulty in filling positions. Twenty percent have improved employee benefits for craft workers and 24 percent report they are providing incentives and bonuses to attract workers.
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David R. Cook, Autry, Hanrahan, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
Trump Tower Is Now One of NYC’s Least-Desirable Luxury Buildings
July 08, 2019 —
Shahien Nasiripour - BloombergTrump Tower, once the crown jewel in Donald Trump’s property empire, now ranks as one of the least desirable luxury properties in Manhattan.
The 36-year-old building has been turned into a fortress since Trump won the presidency, ringed with concrete barriers and the two main entrances partially blocked off. It hasn’t been substantially updated in years. And Trump’s name has been a huge turnoff in liberal New York City.
For anyone who owns a unit in the tower, the past two years have been brutal. Most condo sales have led to a loss after adjusting for inflation, property records show. Several sold at more than a 20% loss. By contrast, across Manhattan, just 0.23% of homes over the past two years sold at a loss, according to real-estate data provider PropertyShark, although the firm doesn’t adjust for inflation.
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Shahien Nasiripour, Bloomberg
Rhode Island Closes One Bridge and May Have Burned Others with Ensuing Lawsuit
October 07, 2024 —
Bill Wilson - Construction Law ZoneThe state of Rhode Island recently filed a lawsuit against 13 companies that provided design, construction, and inspection services over the past ten years (the extent allowed by the applicable statute of limitations) to the Washington Bridge, which carries I-195 between East Providence and Providence. The bridge was abruptly closed in December 2023 following the discovery of alleged fractured steel tie-downs critical to the bridge’s stability and additional deterioration in cantilever beams throughout the bridge. Before the closure, approximately 90,000 vehicles per day traveled over the bridge.
The complaint alleges that the defendants, the majority of which are experienced, industry-leading firms in their respective fields, were negligent and breached their respective contracts with the State. The State contends that every company that worked on the bridge over the past ten years missed the serious structural conditions alleged. The lawsuit also claims that the State has suffered millions of dollars of damages since the bridge was closed and seeks indemnity and contribution from all defendants to the extent that the State may be liable to third parties in the future.
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Bill Wilson, Robinson & Cole LLP
Minnesota Addresses How Its Construction Statute of Repose Applies to Condominiums
April 27, 2020 —
William L. Doerler - The Subrogation StrategistCourts often struggle with the question of when the statute of repose starts to run for construction projects that involve multiple buildings or phases. In Village Lofts at St. Anthony Falls Ass’n v. Housing Partners III-Lofts, LLC, 937 N.W.2d 430 (Minn. 2020) (Village Lofts), the Supreme Court of Minnesota addressed how Minnesota’s 10-year statute of repose, Minn. Stat. § 541.051, applies to claims arising from the construction of a condominium complex. The court held that the statute of repose begins to run at different times for: a) statutory residential warranty claims brought pursuant to Minn. Stat. §§ 327A.01 to 327A.08, et. seq.; and b) common law claims arising out of the defective and unsafe condition of the condominium buildings.
As stated in Village Lofts, Housing Partners III-Lofts, LLC (Housing Partners) developed the Village Lofts at St. Anthony Falls, a condominium complex consisting of Building A and Building B. Housing Partners retained Kraus-Anderson Construction Company (Kraus-Anderson) as the general contractor for Building A. Kraus-Anderson retained Elness Sweeney Graham Architects, Inc. (ESG), Doody Mechanical, Inc. (Doody) and Kenneth S. Kendle, P.E. (Kendle) to work on Building A. In September 2002, the City of Minneapolis (City) issued a partial certificate of occupancy (CO) for Building A, including the building’s public spaces. On October 4, 2002, Housing Partners filed the declaration creating the Village Lofts at St. Anthony Falls condominium, to be operated by Village Lofts at St. Anthony Association (Village Lofts Association). On October 10, 2002, Housing Partners sold the first unit in Building A and in November of 2003, the City issued a CO for the entire building, excluding two units.
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William L. Doerler, White and Williams LLPMr. Doerler may be contacted at
doerlerw@whiteandwilliams.com