SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Policy Reformed to Add New Building Owner as Additional Insured

July 10, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The lower court correctly reformed the policy to replace the prior owner with the new owner as an additional insured under the policy. Wesco Ins. Co. v. Fulmont Mut. Ins. Co., 2023 N.Y. App. Div. LEXIS 2650 (N. Y. App. Div. May 11, 2023). Beyond was sued as owner of the building in a personal injury lawsuit. The former owners leased the building to the tenant who included the then-owners as additional insureds under the tenant's policy. When the deed to the building was transferred to Beyond, the additional insured endorsement in the tenant's policy was not updated to reflect the change in ownership. Beyond's insurer, Wesco, tendered the lawsuit to the tenant's insurer, Fulmont. Coverage was denied because Beyond was not an additional insured under the tenant's 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

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Time is of the Essence, Even When the Contract Doesn’t Say So

January 11, 2021 — Christopher G. Hill - Construction Law Musings
Welcome to 2021! As often happens here at Construction Law Musings, the year starts with a few posts on notable construction law cases that dropped in the past year or so. Not only does this review hopefully help you keep up, but helps me keep up with the latest developments (one of the reasons why I keep blogging). The first of these cases is Appalachian Power Co. v. Wagman Heavy Civil, Inc. out of the Western District of Virginia federal court. In this case, Wagman Heavy Civil, Inc. (“Wagman”) and the Virginia Department of Transportation (“VDOT”) contracted for the design and construction of a highway interchange project (the “Project”). Wagman and the Appalachian Power Company (“APCO”) entered into a written contract (the “Written Contract”) for APCO to remove and relocate its utility structures (the “Work”) in order to facilitate construction for the Project. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Affirmed: Insureds Bear the Burden of Allocating Covered Versus Uncovered Losses

September 28, 2017 — C. Lily Schurra & K. Alexandra Byrd – Saxe Doernberger & Vita, P.C.
The Second Circuit recently affirmed a district court decision that an insured bears the burden of establishing what portion of a jury verdict constitutes covered damages1. The case arose out of claims for property damage resulting from construction defects in a homebuilding project. The homeowners fired the construction manager, J. Barrows, Inc. (“JBI”), who then sued the homeowners in state court for unpaid fees (the “Underlying Action”). The homeowners counterclaimed, alleging breach of contract and negligence. JBI’s commercial general liability insurer, Harleysville Worcester Insurance Company (“Harleysville”), agreed to defend JBI under a reservation of rights. Reprinted courtesy of C. Lily Schurra, Saxe Doernberger & Vita, P.C. and K. Alexandra Byrd, Saxe Doernberger & Vita, P.C. Ms. Schurra may be contacted at cls@sdvlaw.com Ms. Byrd may be contacted at kab@sdvlaw.com Read the court decision
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When Is Mandatory Arbitration Not Mandatory?

August 19, 2015 — Christopher G. Hill – Construction Law Musings
I have discussed my views on mandatory mediation in construction contracts at other places here at Musings and also discussed how the contract is king here in Virginia. A recent Charlottesville, Virginia Circuit Court case combined these two concepts to allow a subcontractor to proceed straight to litigation despite various ADR provisions in the contract between it and the general contractor. In ProBuild v. DPR & Continental Casualty, the Court looked at a series of ADR steps that were to be followed in the contract between the parties in order to allow DPR, the general contractor to require arbitration as opposed to litigation. The Court considered the surety’s motion to stay the litigation against it pending arbitration between ProBuild and DPR. In ProBuild, the Court looked at a contractual provision that provided certain steps to be followed in the event of a dispute, starting with a notice of dispute, followed by negotiation, followed by mediation should the disputing party request it, and in the event that mediation was tried and failed, the disputing party or general contractor could require arbitration. The Court determined that ProBuild, the subcontractor, was the disputing party under the contract, had pursued unsuccessful formal negotiations and that neither ProBuild nor DPR requested mediation. The Court then held that because unsuccessful mediation was a prerequisite to required arbitration and because mediation was never pursued, the mandatory arbitration clause did not apply. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Damage Caused Not by Superstorm Sandy, But by Faulty Workmanship, Not Covered

December 10, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court adopted the Report and Recommendations (R&R) of the magistrate judge, finding there was no coverage for faulty workmanship in replacing a roof for an apartment complex. Burlington Ins. Co. v. PCGNY Corp., 2024 U.S. Dist. LEXIS 167814 (S.D. N. Y. Sept. 16, 2024). Skyline Restoration was hired by the apartment complex to replace the apartments' roofs. Skyline subcontracted with PCGNY Corporation. The roofs were later damaged during Superstorm Sandy. Defendant Affiliated FM Insurance Company ("Affilliated"), a subrogee of the owner of the apartment complex, sued Skyline for defective, faulty and unworkmanlike removal and replacement of the roofs. Skyline filed a Third-Party Complaint against PCGNY. Plaintiff Burlington Insurance Company filed this coverage action against Skyline, Affiliated, PCGNY and others seeking a declaration that it had no duty to defend and/or indemnify PCGNY and/or Skyline, and that it was permitted to withdraw from the defense of PCGNY. Burlington filed a motion for summary judgment. The motion was referred to the magistrate judge who recommended that Burlington be granted a declaration that it had no duty to defend or indemnify PCGNY or Skyline and that it be allowed to withdraw from the defense of PCGNY in the underlying case. 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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Pine Island Bridge in Place as Florida Pushes Barrier Island Access in Ian's Wake

October 10, 2022 — Derek Lacey - Engineering News-Record
A temporary bridge is in place for Pine Island, Fla., after state officials mobilized crews to restore mainland access to barrier islands cut off when Hurricane Ian washed away roads and bridges last month. President Joe Biden (D) joined Florida Gov. Ron DeSantis (R) on Oct. 5 in touring the hardest-hit parts of the state, with the governor announcing the five-day emergency Pine Island project and plans to finish repair of the causeway to Sanibel Island by the end of October. Reprinted courtesy of Derek Lacey, Engineering News-Record Mr. Lacey may be contacted at laceyd@enr.com Read the full story... Read the court decision
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Insurance Company Prevails in “Chinese Drywall” Case

June 17, 2011 — CDJ STAFF

The Louisiana Court of Appeals rejected an appeal to reverse a summary judgment granted to Louisiana Citizens Property Insurance Company. Terrence and Rhonda Ross contracted for a remodel of their home in which Chinese-made drywall was used. When the drywall emitted harmful gasses, the Rosses filed a claim under their insurance policy. This claim was rejected under four exclusions: for faulty materials, latent defect, loss by corrosion, and loss by pollution. After the claim was denied, the Rosses sued Louisiana Citizens.

In April 2010, the lower court granted a summary judgment, followed by a May, 2010 order dismissing the Rosses’ claims against Louisiana Citizens. The Rosses appealed this decision. In the court’s review, they agreed with Louisiana Citizens and the lower court on all counts. Although the Rosses maintained that the drywall was not defective (as it still functioned as drywall), the court ruled that its emission of sulfuric gases was a defect. Further, as it was in place for two years before this became evident, it was also a latent defect. Damage to the Rosses’ home consisted of corrosion damage caused by the pollutants in the drywall.

The Rosses made an additional claim that since their policy covered smoke damage, this should be covered, as the harm was done by sulfuric gases. The court noted that the contract specifies “fumes or vapors from a boiler, furnace, or related equipment,” none of which apply in this case.

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Appeals Court Overruled Insured as Additional Insured on Subcontractor’s Commercial General Liability Policy

April 02, 2014 — Beverley BevenFlorez-CDJ STAFF
Scott R. Murphy and Clifford J. Shapiro of Barnes & Thornburg LLP in the publication National Law Review analyzed the findings of the Mississippi case Carl E. Woodward, LLC v. Acceptance Indemnity Insurance: “the U.S. Court of Appeals for the Fifth Circuit overruled the district court’s determination that a general contractor was insured as an additional insured on its subcontractor’s commercial general liability (CGL) policy for claims arising out of the allegedly defective work performed by the subcontractor.” “This case underscores the fact that many standard policy forms do not include completed operations coverage for additional insureds,” Murphy and Shapiro declared. “Owners and contractors that desire to have such coverage therefore need to check their contracts to be make sure the contract language requires completed operations coverage for additional insureds, and they also need to obtain and review the actual additional insured endorsement contained in their subcontractors’ insurance policies before work commences to make sure that the required completed operations insurance coverage is provided.” Read the court decision
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