Cambridge Massachusetts Building Expert Directory

No Escape: California Court of Appeals Gives a Primary CGL Insurer’s “Other Insurance” Clause Two Thumbs Down

December 02, 2015 — Yas Omidi – California Construction Law Blog
“No Escape” is a 2015 action movie starring Pierce Brosnan and Owen Wilson (that’s right, Owen Wilson) and which the folks at rogerebert.com described as “a dreadful…would-be thriller” and “low-grade trash.” It’s also, in short, the California Court of Appeal’s answer to a primary insurer’s recent bid to escape its duty to defend pursuant to an “other insurance” clause in a CGL policy in Underwriters of Interest Subscribing to Policy No. A15274001 v. ProBuilders Specialty Ins. Co., Case No. D066615, California Court of Appeals for the Fourth District (October 23, 2015). Read the court decision
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Reprinted courtesy of Yas Omidi, California Construction Law Blog
Ms. Omidi may be contacted at yomidi@wendel.com

Jury Trials: A COVID Update

July 18, 2022 — Joshua Lane - Ahlers Cressman & Sleight PLLC
JURY TRIALS. Budd v. Kaiser Gypsum Co., Inc., — Wn. App. 2d –, 505 P.3d 120 (Wash. Ct. App. 2022). (1) Courts must ensure that juries are randomly selected to provide a fair and impartial jury. (2) While the Sixth and Fourteenth Amendments prohibit the systematic exclusion of distinctive groups from jury pools, Washington Courts’ COVID-19 policy to excuse people who were ages 60 and older and did not wish to report for duty was not a “systematic” exclusion. Raymond Budd developed mesothelioma after working with a drywall product called “joint compound” from 1962 to 1972. He sued Kaiser Gypsum Company, Inc. and others for damages, contending that the company’s joint compound caused his illness. A jury returned a verdict in Budd’s favor and awarded him nearly $13.5 million. Kaiser appeals, claiming (1) insufficient randomness in the jury-selection process, (2) erroneous transcription of expert testimony, (3) lack of proximate causation, (4) lack of medical causation, (5) an improper jury instruction on defective design, (6) improper exclusion of sexual battery and marital discord evidence, (7) improper admission of post-exposure evidence, (8) improper exclusion of regulatory provisions, and (9) a failure to link its product to Budd’s disease. The Court of Appeals, Division 1, affirmed the verdict in favor of Budd. Read the court decision
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Reprinted courtesy of Joshua Lane, Ahlers Cressman & Sleight PLLC
Mr. Lane may be contacted at joshua.lane@acslawyers.com

The 2019 ISO Forms: Additions, Revisions, and Pitfalls

February 24, 2020 — Richard W. Brown, Michael V. Pepe & Janie Reilly Eddy - Saxe Doernberger & Vita, P.C.
The Insurance Services Office, Inc. (ISO) issued several new and revised endorsements for use with Commercial General Liability (CGL) coverage forms, which became effective December 1, 2019, in most jurisdictions. The new ISO endorsements include several notable changes that Policyholders should be aware of, including revisions to existing Additional Insured (AI), Primary and Noncontributory, and Waiver of Subrogation endorsements, as well as a number of new AI and other endorsement forms. A summary of the more significant elements of new ISO endorsements is provided below. NEW ISO FORMS

New AI Endorsements - Automatic Status for Completed Operations

For Contractors, Owners and other construction industry stakeholders, there are two new AI endorsements of note, CG 20 39 12 19 – Additional Insured – Owners, Lessee or Contractors – Automatic Status when Required in Written Construction Agreement with You (Completed Operations) and CG 20 40 12 19 – Additional Insured – Owners Lessees or Contractors – Automatic Status for Other Parties when Required in Written Construction Agreement (Completed Operations). AI coverage for Completed Operations is generally provided under form CG 20 37, which requires each additional insured to be listed in the endorsement schedule. The new ISO endorsements automatically extend AI status for Completed Operations without having to specifically identify each additional insured, thereby mirroring current AI endorsements that confer automatic AI status for Ongoing Operations (e.g. CG 20 33 and CG 20 38). Thus, the CG 20 39 and CG 20 40, correspond with CG 20 33 (ongoing operations), and CG 20 38 (ongoing operations), respectively, to extend AI coverage for Completed Operations. Reprinted courtesy of Saxe Doernberger & Vita, P.C. attorneys Richard Brown, Michael V. Pepe and Janie Reilly Eddy Mr. Brown may be contacted at rwb@sdvlaw.com Mr. Pepe may be contacted at mvp@sdvlaw.com Ms. Eddy may be contacted at jre@sdvlaw.com Read the court decision
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Hawaii Court Finds No Bad Faith, But Negligent Misrepresentation Claim Survives Summary Judgment in Construction Defect Action

November 06, 2013 — Tred Eyerly — Insurance Law Hawaii
Judge Mollway, U.S. District Court Judge for the District of Hawaii, found the insurer was not in bad faith for allegedly leading its insured to believe that construction defects would be covered under the policy. The court, however, allowed the insured's negligent misrepresentation claim to survive summary judgment. Ill Nat'l Ins. Co v. Nordic PCL Constr., 2013 U.S. Dist. LEXIS 151748 (D. Haw. Oct. 22, 2013). The insurer denied coverage when Nordic was sued for construction defects related to its construction of two Safeway stores in Honolulu. Prior to the issuance of the policies the Ninth Circuit had issued its opinion in Burlington Ins. Co. v .Oceanic Design & Constr., Inc., 398 F.3d 940 (9th Cir. 2004), which predicted that Hawaii appellate courts would rule that construction defects were not "occurrences." Nevertheless, Nordic's witnesses contended when the policies were purchased, they believed construction defects were covered. Specifically, Nordic thought the policies provided completed operations coverage for property damage arising out of Nordic's subcontractors' work. Nordic further contended that only after the Hawaii Intermediate Court of Appeals decided in Group Builders, Inc. v. Admiral Ins .Co., 123 Haw. 142 (Haw. Ct. App. 2010) that construction defect claims did not constitute an "occurrence" did the insurer change its position and decide the policies did not cover construction defects. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

Title II under ADA Applicable to Public Rights-of-Way, Parks and Other Recreation Areas

June 29, 2017 — Richard E. Morton - Haight Brown & Bonesteel LLP
Plaintiff Ivana Kirola, who suffers from cerebral palsy, sued the City and County of San Francisco, in a class action contending certain public areas, including rights-of-way, pools, parks and other recreation areas, did not meet the mandate of Title II of the American With Disabilities Act (Kirola v. City and County of San Francisco, 9th Circuit Court of Appeals, No. 14-17521, 2017 DJDAR 5982). Title II provides that no qualified individual with a disability “shall, by reason of such disability, be excluded from participation in or be denied the benefits of the services, programs, or activities of a public entity, or be subjected to discrimination by any such entity.” Title II’s implementing regulations mandate that each facility constructed after January 26, 1992 be “readily accessible to and usable by individuals with disabilities.” And, for each facility “altered after January 26, 1992,” the altered portion must, “to the maximum extent feasible,” be likewise accessible. The Federal Architectural and Transportation Barriers Compliance Board creates nonbinding Americans With Disabilities Act Accessibility Guidelines (ADAAG) to ensure compliance with Title II, and that the Department of Justice (DOJ) adopt its own binding regulations, consistent with the ADAAG standards. Here, the District Court interpreted ADAAG standards as not applying to public rights-of-way, parks, and playground facilities. The District Court concluded that none of Kirola’s experts were reliable in their interpretation of the standards and how the standards applied to the public rights-of-way, etc. Conversely, the District Court concluded that all of the city’s experts were reliable. It thus disregarded and discarded every ADAAG violation identified by Kirola’s experts, accepting only the small number of violations identified by the city’s experts. Read the court decision
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Reprinted courtesy of Richard E. Morton, Haight Brown & Bonesteel LLP
Mr. Morton may be contacted at rmorton@hbblaw.com

Define the Forum and Scope of Recovery in Contract Disputes

March 02, 2020 — Phillip L. Sampson Jr. & Richard F. Whiteley - Construction Executive
Private and public companies spend billions of dollars every year on construction projects. For these projects, time is money, and incorporating the most advantageous legal terms in the construction contract can minimize the number and extent of disputes, and ultimately save money. It is important to remember that the provisions in construction contracts are negotiable. In a common scenario, the contractor and owner informally agree to the scope of a construction project and its cost. When it is time to reduce the deal to writing, the contractor and owner decide to use an AIA contract that appears to be a standard form. The document looks to be on point, and the parties simply need to fill in a few blanks with the cost and scope-specific information. Presuming that the AIA provisions are mutually protective and beneficial, the parties do not think about altering the “standard” terms. They sign the contract, and the project begins. Months later, the owner and contractor end up disputing delays on the project, entitlement to various payments, and whether certain aspects of the work are defective. At this point, the parties realize that some of the contract’s terms could have been drafted a bit more favorably—but by that time it’s too late. So remember, construction contracts are negotiable, even provisions within “standard” AIA contracts. Reprinted courtesy of Phillip L. Sampson Jr. and Richard F. Whiteley, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Mr. Sampson may be contacted at phillip.sampson@bracewell.com. Mr. Whiteley may be contacted at richard.whiteley@bracewell.com. Read the court decision
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Reinsurer's Obligation to Provide Coverage Determined Under English Law

July 24, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The Second Circuit turned to English law to determine the obligations of the reinsurer. Ins. Co. of the State of Pa. v. Equitas Ins. Ltd., 2023 U.S. App. LEXIS 12461 (2nd Cir. May 22, 2023). Insurance Company of the State of Pennsylvania (ICSOP) provided an umbrella policy to a predecessor of Dole Food Company for a policy period from October 1968 to October er 1971. Equitas then reinsured part of ICSOP's exposure for the same three-year period. English law governed the reinsurance policy. In 2009, homeowners in Carson, California sued Dole for polluting their soil and groundwater. Dole and ICSOP settled these claims and allocated $20 million of the settlement liability to the ICSOP-Dole policy, even thought the homeowners' property damage and personal injuries continued to accrue after the ICSOP-Dole policy period ended. In doing so, the settlement followed The California law for allocation, known as the "all sums rule." This rule treated any insurer whose policy was in effect during any portion of the time during which the continuing harm occurred as jointly and severally liability for all property damages or personal injuries caused by a pollutant. 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

Nevada Assembly Sends Construction Defect Bill to Senate

June 06, 2011 — CDJ STAFF

In a 26 to 16 vote, the Nevada Assembly has passed Assembly Bill 401, which extends the time limit for legal action over home construction defects. According to the Las Vegas Sun, Assembly member Marcus Conklin, Democrat of Las Vegas, said the bill was about “keeping the consumer whole.” However, Ira Hansen, Republican of Sparks, told the sun that suits are happening before contractors can make repairs. The bill would allow attorney fees even if repairs are made.

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