Colorado Court of Appeals Finds Damages to Non-Defective Property Arising From Defective Construction Covered Under Commercial General Liability Policy
December 20, 2012 —
HEIDI GASSMAN, HIGGINS, HOPKINS, MCLAIN & ROSWELLThe recently decided case of Colorado Pool Systems, Inc. v. Scottsdale Insurance Company (Colo. Ct. App. 10CA2638, October 25, 2012), confirms that absent specific exclusions in the policy, a commercial general liability (“CGL”) policy covers damages to non-defective property arising from a builder’s own defective workmanship.
Colorado Pool Systems, Inc. (“Colorado Pool”) was hired as a subcontractor to install a swimming pool at Founders Village Pool and Community Center (“Founders Village”) in Castle Rock, Colorado. After the concrete shell of the pool was placed, some of the rebar frame was found to be too close to the surface. Founders Village demanded that Colorado Pool remove and replace the pool, and Colorado Pool contacted its insurance carrier, Scottsdale Insurance Company (“Scottsdale”), with which Colorado Pool held a CGL policy. After inspecting the pool, Scottsdale’s claims adjuster stated that the insurance policy would cover losses associated with removing and replacing the pool.
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Heidi Gassman, Higgins, Hopkins, McLain & Roswell, LLC.Ms. Gassman can be contacted at
gassman@hhmrlaw.com
Efficient Proximate Cause Doctrine Bars Coverage for Collapse of Building
July 31, 2013 —
Tred Eyerly, Insurance Law HawaiiThe court rejected the insured's argument that there was coverage for the collapse of a building caused by water leakage (a covered peril) and landslide (an uncovered peril). Stor/Gard, Inc. v. Strathmore Ins. Co., 2013 U.S. LEXIS App. 11015 (1st Cir. May 31, 2013).
A severe rain storm caused soil to slide down a hill and over a retaining wall, thereby damaging a building owned by the insured. Investigators hired by Strathmore Insurance Company determined that rain had soaked into the soil, causing the landslide. Although the investigators found some water leakage, they determined the leakage was not a cause or contributing factor, and was negligible compared to the rain amount.
The insured's policy with Strathmore was an all-risk policy. Loss caused by a landslide was excluded. Further, loss caused by collapse was excluded from coverage except as set forth in the policy's "additional coverage for collapse" section. This section provided coverage for a collapse caused by water damage or a leakage of water. Another exclusion barred coverage for loss caused by weather conditions.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Washington Court of Appeals Divisions Clash Over Interpretations of the Statute of Repose
August 07, 2023 —
Masaki Yamada & Ryanne Mathisen - Ahlers Cressman & Sleight PLLCThe construction statute of repose under RCW 4.16.310 bars any claims arising from construction, design, or engineering of any improvement upon real property that has not accrued within six years after substantial completion or termination of services, whichever is later, even if the injury has not yet occurred.
On June 20, 2023, Division One of the Washington Court of Appeals (Div. I) published its decision in
Welch v. Air & Liquid Systems severely criticizing and rejecting the statute of repose reasoning contained in
Maxwell v. Atlantic Richfield Co., 15 Wn. App. 2d 569, 476 P.3d 645 (2020), a Division Two (Div. II) opinion.
More than a mere difference of opinion, the courts in Welch and Maxwell reached different results as to whether claims asserted against Brand Insulations, Inc. were barred by the statute of repose despite involving (i) the same procedural posture, both appeals from summary judgment decisions; (ii) the same facility, Atlantic Richfield Corporation’s (ARCO) petroleum refinery at Cherry Point in Ferndale; (iii) the same activity of installation of asbestos laden insulation on pipes; (iv) the same type of injury, mesothelioma; and (v) application of the same test set forth in Condit v. Lewis Refrigeration Co., 101 Wn.2d 106, 676 P.2d 466 (1984).
Reprinted courtesy of
Masaki Yamada, Ahlers Cressman & Sleight PLLC and
Ryanne Mathisen, Ahlers Cressman & Sleight PLLC
Mr. Yamada may be contacted at masaki.yamada@acslawyers.com
Ms. Mathisen may be contacted at ryanne.mathisen@acslawyers.com
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The Hidden Dangers of Construction Defect Litigation: A Redux
January 17, 2013 —
David McLain, Higgings, Hopkins, McLain & Roswell, LLCI previously wrote an article entitled “The Hidden Dangers of Construction Defect Litigation” for the Common Interests magazine, the monthly periodical of the Rocky Mountain Chapter of the Community Associations Institute. In that article, I discussed the potential negative effects of homeowners associations bringing construction defect suits as anything other than a last resort. The purpose of this post is to bring to light, by way of a real life example, the problems discussed in my previous article.
I have recently seen a lawsuit filed by an individual homeowner within a common interest community against the homeowners association, its management company, and the attorneys retained by the association to represent it in a construction defect lawsuit against the original developer, general contractor, and one of the design professionals. In his suit, the homeowner complains that the association’s construction defect attorneys “neglected to amend [their] complaint to include only and specifically the claims for damages for those properties, those buildings or condominium units, either by owner or specific locations, which had sustained damages or had faulty construction for which damages were being sought.” As a result of claiming damages throughout the entire community, the homeowner alleged that the entire community was tarred “with the black brush of litigation.”
As the homeowner explained in his complaint, he purchased a condominium for his daughter-in-law when she moved to Colorado to care for him after the death of his wife.
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David McLainMr. McLain can be contacted at
mclain@hhmrlaw.com
Another Reminder that Your Construction Contract is Only as Good as Those Signing It
December 17, 2024 —
Christopher G. Hill - Construction Law MusingsHere at Construction Law Musings, we beat the constant drum that “
the contract is king” and “draft a
good and well-worded construction contract” consistently. As a
Virginia construction attorney, I stand by these statements and fully endorse a well-written construction contract. Such a contract will set expectations and
provide the rules for your deal (particularly in the commercial context). Without this solid foundation (yes, I see the potential construction pun), when
there are issues on the job site, there will be no baseline for how to resolve those issues.
That said, I am also reminded on an almost daily basis that humans interact with these contracts. People negotiate the contracts and are the main forces that drive the success (or failure) of the construction project. Money is involved (often a lot of it) and there can at times be temptations to try and squeeze one last dollar out of the job despite what the contract says. Even the strongest contract cannot act as real-time protection against one party that refuses to comply with the contract and its performance or payment terms.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
KB Homes Sues Condo Buyers over Alleged Cybersquatting and Hacking
October 22, 2013 —
CDJ STAFFWillowbrook, a condominium complex in Lakewood Ranch, Florida has had problems with water intrusion. Now the builder is having problems with some of the residents. National home builder KB Homes is alleging that a pair of Willowbrook home owners who created a web site about their problems have violated federal cybersquatting laws, as the web site names they have registered are close to that KB Homes. The suit alleges that Andrew Smith and Daniel Koehler hope to either get KB Homes to purchase the web site or to buy back their homes.
The lawsuit also alleges that three other individuals, William Crismon, Patrick McGettigan, and Armando Oyola-Delgado, conspired to intercept e-mails between KB Home and Dueall Construction. KB Homes claims that the three gained access to a WiFi hotspot used by Dueall.
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Full Extent of Damage From Turkey Quakes Takes Shape
February 20, 2023 —
Jeff Rubenstone - Engineering News-RecordNearly two weeks after a pair of severe earthquakes rocked central Turkey and northern Syria, the full extent of damage to buildings and other structures is beginning to emerge. With the magnitude 7.8 and 7.5 epicenters located hundreds of kilometers apart, the area affected is vast.
Reprinted courtesy of
Jeff Rubenstone, Engineering News-Record
Mr. Rubenstone may be contacted at rubenstonej@enr.com
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Construction defect firm Angius & Terry moves office to Roseville
January 09, 2013 —
CDJ STAFFThe law firm Angius & Terry LLP has closed its office on River Park Drive in Sacramento and opened a Roseville office that will allow for growth. The new office at 3001 Lava Ridge Court provides more usable space in a nice area for less money, said Brad Epstein, a local partner with the firm.
Five attorneys and three staff moved to the new space in Roseville on Jan. 2. “It can house three additional attorneys — and we plan to grow,” Epstein said. The firm specializes in construction defect litigation and general corporate work for community associations.
There are about 800 community associations in the Sacramento area and a handful of small firms that divvy up the work.
“Condominium developments and homeowners’ associations never die and always have legal issues,” Epstein said.
Angius & Terry has a total of 20 lawyers in six offices, four in California and two in Nevada.
Besides Roseville, the firm has offices in Walnut Creek, Manteca, Newport Beach, Reno and Las Vegas.
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