CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Insurers Dispute Sharing of Defense in Construction Defect Case

May 13, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The California Court of Appeal affirmed the trial court's decision that the defending insurer was not entitled to reimbursement of defense costs from another insurer based upon a subcontract and additional insured endorsement. Zurich Am. Ins. Co. v. Old Republic Gen. Ins. Corp., 2024 Cal. App. Unpub. LEXIS 1261 (Cal. Ct. App. Feb. 28, 2024). Martin McNerney Development Company (McNerney) entered a construction contract to perform seismic upgrades and tenant improvements for condominiums. McNerney and Broadway Mechanical Contractors, Inc. (Broadway) entered a "Subcontract Agreement" under which Broadway was to perform plumbing work at the project. The agreement required Broadway to maintain general liability insurance naming McNerney as an additional insured for work performed on the project, including completed operations. The subcontract also required Broadway to indemnify and hold McNerney harmless with respect to all claims for damage to property arising out of work performed by Broadway. Broadway completed its work on the project in September 2007. Broadway issued a one-year warranty for its work on the project. 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

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Insurer Has Duty to Defend Despite Construction Defects

January 06, 2012 — CDJ STAFF

In a case the judge attributed to “shoddy masonry work,” the US District Court of Illinois has rendered a decision in AMCO Insurance Company v. Northern Heritage Builders. Northern Heritage built a home in Chicago for Michael McGrath (who joined Northern Heritage as a defendant). According to the decision, “seven months after he moved into the house, McGrath noticed water coming in the house and warped millwork.” This was attributed to porous block, installed by the mason with Northern Heritage’s knowledge.

McGrath sued National Heritage for both the damage to his house and its contents. The court rejected his claim for the contents. For the damages to his house, he was awarded $601,570.50 in damages. He also sued his homeowner’s insurance carrier for damages not covered in his suit against National Heritage. There he was awarded $1,130,680.16.

AMCO informed National Heritage that it had neither duty to defend nor duty to indemnify. The judge considered whether AMCO had a duty to defend. Under Illinois law, “damage to a construction project resulting from construction defects is not an ‘accident’ or ‘occurrence’ because it represents the natural and ordinary consequence of faulty construction.” However, it is noted that while if the defects lead only to damage to the project itself, there is no occurrence, “if the building owner asserts damages to other property besides the construction itself, there is an ‘occurrence’ and ‘property damage.’” The judge further noted that were construction defects an occurrence, “shoddy work” would be rewarded by double pay, once by the homeowner and a second time by the insurer. Judge Kendall concluded that as McGrath had alleged damage to the contents of his house, AMCO had a duty to defend National Heritage.

She then looked at the issue of whether AMCO had a duty to indemnify. Should they pay the $601,570.50? Judge Kendall noted that “the duty to indemnify is narrower than the duty to defend.” The key point here was that once McGrath’s insurance carrier covered him for the damage to the contents of his house, “AMCO’s duty to defend ended.” Once McGrath “only sought damages for the natural consequences of faulty workmanship” there was no occurrence, hence nothing for AMCO to cover.

Judge Kendall granted a summary dismissal of AMCO’s claim that they had no duty to defend while upholding their claim that they had no duty to indemnify.

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Counsel Investigating Coverage Can be Sued for Invasion of Privacy

January 28, 2019 — Christopher Kendrick & Valerie A. Moore - Haight Brown & Bonesteel LLP
In Strawn v. Morris, Polich & Purdy (No. A150562, filed 1/4/19), a California appeals court held that policyholders could state a claim for invasion of privacy against an insurer’s coverage counsel and law firm, where the counsel had disseminated inadvertently produced tax returns to forensic accountants while evaluating coverage. In Strawn, a couple’s home was destroyed by fire and the husband was prosecuted for arson, but the criminal case was dropped. Notwithstanding, their insurance claim was denied on the ground that the husband intentionally set the fire and fraudulently concealed his actions. In addition to the insurance company, the insureds also named the carrier’s coverage counsel and his firm in the ensuing bad faith lawsuit, alleging causes of action for elder financial abuse and invasion of privacy. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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Oregon Codifies Tall Wood Buildings

October 23, 2018 — Joanna Masterson - Construction Executive
Oregon is the first state to allow wood buildings to exceed six stories without special consideration under the Oregon Building Codes Division’s recent statement of alternative method (SAM), which provides prescriptive path elements for mass timber construction. The SAM establishes three new types of construction—Type IV A, B and C—that allow buildings to go as high as nine to 18 stories with varying percentages of exposed timber surfaces and sprinkler system requirements. Reprinted courtesy of Joanna Masterson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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How to Cool Down Parks in Hot Cities

July 08, 2024 — Todd Woody - Bloomberg
The drive to be outside, even in hot weather, is hard to overcome. People without air ­conditioning would be more likely to seek relief at their local park, ­according to Elie Bou-Zeid, a professor of civil and environmental ­engineering at Princeton, than at a government building where they can feel like climate refugees. “It’ll certainly be more pleasant to be in a park than in some indoor stadium where nobody wants to go,” he says. The scientists are combining inexpensive technologies, some novel, some already in use, that they plan to test first in New Jersey for deployment in hot spots like Phoenix. Kirigami The art of cutting and folding paper, kirigami is inspiring researchers to design structures that control wind in specific ways. A kirigami structure made from fabric and placed over misters could regulate wind speed to maximize cooling. Or it could form the roof of a pavilion, steering air into the structure. Misters They spray small ­water droplets that quickly evaporate, cooling the air. But the effectiveness of misters, which have long been used in cities such as Las Vegas and Phoenix, depends on wind speed. If there’s too little wind, the droplets won’t all evaporate; too much wind and the cooling effects dissipate. Read the court decision
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Reprinted courtesy of Todd Woody, Bloomberg

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Golden Gate Bridge's $76 Million Suicide Nets Near Approval

June 30, 2014 — Alison Vekshin – Bloomberg
Officials of the agency that runs San Francisco’s Golden Gate Bridge today approved a $76 million funding plan to erect a suicide barrier along the span, where people plunge to their deaths at a rate of about once a week. The Golden Gate Bridge Highway and Transportation District’s 19-member board voted unanimously to approve the funding, which includes $20 million from district reserves. “We must fight mental illness on many fronts and this budget action is a critical component of saving the lives of people who might not see that their brightest days are ahead of them,” Senator Mark Leno, a Democrat from San Francisco, said in a news release yesterday ahead of the meeting. Read the court decision
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Reprinted courtesy of Alison Vekshin, Bloomberg
Ms. Vekshin may be contacted at avekshin@bloomberg.net

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Traub Lieberman Partner Lisa Rolle Wins Summary Judgment on Behalf of Contract Utility Company in Personal Injury Action

April 25, 2023 — Lisa M. Rolle - Traub Lieberman
Traub Lieberman Partner Lisa Rolle obtained summary judgment on behalf of a contract utility company (“Utility Company”) in a matter brought before the New York Supreme Court, Queens County. In the complaint, the Plaintiff alleged that she sustained injuries as a result of a trip and fall accident where the Plaintiff’s foot allegedly went into a hole in the grass strip abutting the sidewalk adjacent to a premises located in Queens, NY. The Plaintiff claimed that the defect in the sidewalk was caused by the removal of a utility pole at the curb strip that was not correctly backfilled. The Defendant Utility Company is in the business of inspecting, treating, and repairing utility and telecommunication structures, including wooden utility poles. TLSS was successfully able to establish that, three years prior to the accident, the Utility Company was retained to conduct a visual inspection of the subject pole. However, the Utility Company does not and has not owned, installed, removed or replaced in-service utility poles in New York or at the location of the alleged accident. Further, TLSS established that the Utility Company did not service or remove the subject pole at the accident site or backfill the curb strip. Read the court decision
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Reprinted courtesy of Lisa M. Rolle, Traub Lieberman
Ms. Rolle may be contacted at lrolle@tlsslaw.com

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Diggin’ Ain’t Easy: Remember to Give Notice Before You Excavate in California

February 15, 2018 — Matthew Peng – Construction Law Blog
If you are reading this blog, my guess is that you know what excavation is and why it is important to the construction process. However, what you may not know is the complicated California law that governs this process. The statute for an excavation contractor to be familiar with is California Government Code section 4216, et seq. However, like most things worth pursuing, that is easier said than done. Section 4216 contains several layers of prerequisites and requirements. This article will explore the notice requirement. Section 4216.1 requires “every operator of a subsurface installation” to share costs of a regional notification center. This is necessary because Section 4216.2(b) requires “an excavator planning to conduct an excavation shall notify the appropriate regional notification center of the excavator’s intent to excavate” before beginning that excavation. The statute lists two regional notification centers: the Underground Service Alert—Northern California and the Under Ground Service Alert—Southern California. Read the court decision
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Reprinted courtesy of Matthew Peng, Gordon & Rees
Mr. Peng may be contacted at mpeng@grsm.com

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