Appeals Court Rules that CGL Policy Doesn’t Cover Subcontractors’ Faulty Work
August 06, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Business Insurance, in J-McDaniel Construction Co. Inc. v. Mid-Continental Casualty Co. et al., an appeals court upheld a lower court ruling that a “construction company's commercial general liability insurance policy does not provide coverage for faulty workmanship or subcontractor negligence.”
“We are not at liberty to disregard the binding law of the state, nor may we substitute our judgment for that of the Arkansas Supreme Court,” said the panel, in affirming the lower court ruling, as quoted in Business Insurance.
Judy Greenwald of Business Insurance pointed out that “[l]ast year, the 6th U.S. Circuit Court of Appeals in Cincinnati held that a subcontractor's allegedly faulty preparation of a building pad, which resulted in subsequent settling and structural damage to the building constructed on top of it, was not an occurrence within the standard coverage language of a CGL policy.”
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Agree to Use your “Professional Best"? You may Lose Insurance Coverage! (Law Note)
March 01, 2017 —
Melissa Dewey Brumback - Construction Law in North CarolinaYesterday, I was part of a panel at the NC Bar Association Construction Law Winter Meeting, discussing insurance issues for design professionals.
One topic we touched on was how to avoid invalidating your insurance. As most of you know, Errors & Omissions insurance (“E&O” coverage) is meant to provide coverage for mistakes you may make in performing your professional architecture or engineering services. E&O coverage is important to protect you in the event of a lawsuit because, as you know, no set of plans is perfect (nor is perfection the standard of care).
Be careful, though. Do not promise to provide a higher standard of care than the “professional standard“.
If you are asked to sign a contract that states you will use your “professional best,” “best efforts”, “highest care” or similar, you are being asked to sign something that could cost you your E&O coverage.
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
The BUILDCHAIN Project Enhances Data Exchange and Transparency in the EU Construction Industry
January 23, 2023 —
Aarni Heiskanen - AEC BusinessTrace Labs, a WEB 3 developer, joins the EU’s efforts to create a smarter and more sustainable built environment with the
BUILDCHAIN project. With its 11 EU partners, Trace Labs aims to improve efficiency, reduce errors, and increase transparency and trust in construction.
Efficient, transparent, and trusted data exchange is a powerful tool for driving sustainability, resilience, and energy efficiency in construction. However, there are several obstacles to trusted data exchange in the industry today:
- Data silos: Construction projects involve multiple parties and stakeholders, each of which may have its systems for storing and sharing information. This can lead to data silos and a lack of coordination, making it difficult to access and trust the data.
- Lack of standardization: Construction projects may use different formats for storing and sharing data, leading to difficulties in comparing and combining information from various projects.
- Data security: Construction projects often involve sensitive information, such as building plans, materials lists, and inspection results. Ensuring this information is secure and protected from unauthorized access can be a significant challenge.
- Lack of incentives: There are often few incentives for construction companies and other stakeholders to share data and collaborate on projects, making establishing trust and transparency challenging.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Construction Employment Rose in 38 States from 2013 to 2014
March 19, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Associated General Contractors of America (AGC) reported that 38 states experienced construction job growth from January 2013 to January 2014, and 27 states showed gains from December 2013 to January 2014. AGC stated that “the fact so many states added construction jobs for the year and month despite harsh winter conditions in many parts of the country is a sign that demand appears to be recovering.”
Kansas ranked first in the “12-month gain or loss” category with a 10.7% gain. Wyoming came in last with a -5.9% over a 12-month period. However, if examining a one-month period (between December 2013 and January 2014), Idaho showed the highest growth with a 5.8% gain, while Vermont was ranked 51 at -5.5%.
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Wood Wizardry in Oregon: Innovation Raises the Roof for PDX Terminal
April 15, 2024 —
Aileen Cho - Engineering News-RecordDrones, self-propelled modular transporters and a curtain wall that really does hang off the roof like a curtain are all notable technologies that made installing an 18-million-lb timber roof possible at Portland International Airport. Of equal weight is the emphasis on full-scale sourcing of the timber and representing the Pacific Northwest’s residents, history and geography.
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Aileen Cho, Engineering News-Record
Ms. Cho may be contacted at choa@enr.com
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Georgia Federal Court Holds That Pollution Exclusion Bars Coverage Under Liability Policy for Claims Arising From Discharge of PFAS Into Waterways
December 18, 2022 —
Paul Briganti - White and WilliamsOn December 5, 2022, the U.S. District Court for the District of Georgia held that a total pollution exclusion (TPE) in a CGL policy relieved the insurer of any obligation to defend or indemnify a recycling company in a putative class action alleging PFAS contamination of Georgia waterways. See Grange Ins. Co. v. Cycle-Tex Inc., et al., Order, Civ. A. No. 4:21-cv-00147-AT (N.D. Ga. Dec. 5, 2022). The decision adds to a slowly-developing body of case law addressing coverage issues arising out of PFAS-related claims.
In Grange, the insured, Cycle-Tex, Inc., was the operator of a thermoplastics recycling facility in Dalton, Georgia. Cycle-Tex and other defendants – which included chemical suppliers, carpet manufacturers, intermediaries, the City of Dalton and the Dalton-Whitfield Solid Waste Authority – were named in a putative class action complaint alleging that residents of Dalton had been injured as a result of the defendants’ discharge of PFAS into local waterways. The complaint sought damages for: (1) alleged harm to the residents’ health by virtue of ingesting contaminated water; (2) alleged property damage resulting from the contamination of the public water supply; and (3) the payment of surcharges and heightened water rates as a result of the alleged contamination.
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Paul Briganti, White and WilliamsMr. Briganti may be contacted at
brigantip@whiteandwilliams.com
Fed Inflation Goal Is Elusive as U.S. Rents Stabilize: Economy
March 12, 2014 —
Michelle Jamrisko and Ilan Kolet - BloombergFederal Reserve efforts to nurture a more robust rate of inflation this year are likely to fall short. The reason: the biggest gains in rents are probably over.
The costs to lease residential real estate, the second-biggest component of the price measure tracked by U.S. central bankers, helped put a floor under inflation over the past two years as most other components decelerated. Now, with builders cranking out a record number of multifamily buildings and the job market still far from tight, the outlook for rents is the bleakest it’s been in four years.
“Because the economy is still not in the strongest position and certainly the labor market is not in the strongest position, landlords really can’t extract much more in the way of rent growth,” said Ryan Severino, a senior economist at real-estate data provider Reis Inc. in New York. Also, rents are already high, which makes more increases difficult, he said.
Ms. Jamrisko may be contacted at mjamrisko@bloomberg.net; Mr. Kolet may be contacted at ikolet@bloomberg.net
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Michelle Jamrisko and Ilan Kolet, Bloomberg
Breach of an Oral Contract and Unjust Enrichment and Implied Covenant of Good Faith and Fair Dealing
December 23, 2023 —
David Adelstein - Florida Construction Legal UpdatesIn an ideal world, parties would have written contracts. In reality, parties should endeavor to ensure every transaction they enter into is memorialized in a written contract. This should not be disputed. Of course, written contracts are not always the case. Parties enter transactions too often whereby the transaction is not memorialized in a clean written agreement. Rather, it is piecemealing invoices, or texts, or discussions, or proposals and the course of business. A contract can still exist in this context but it is likely an oral contract. Keep in mind if there is a dispute, what you think the oral contract says will invariably be different than what the other party believes the oral contract says. This “he said she said” scenario gets removed, for the most part, with a written contract that memorializes the written terms, conditions, and scope.
A recent federal district court opinion dealt with the alleged breach of an oral contract. In Movie Prop Rentals LLC vs. The Kingdom of God Global Church, 2023 WL 8275922 (S.D.Fla. 2023), a dispute concerned the fabrication and installation of a complex, modular stage prop to be used for an event. But here lies the problem. The dispute was based on an oral contract and invoices. The plaintiff, the party that was fabricating the modular stage prop, sued the defendant, the party that ordered the stage prop for the event, for non-payment under various claims. The defendant countersued under various claims.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com