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DIRECTORY AND CAPABILITIES

In Florida, Component Parts of an Improvement to Real Property are Subject to the Statute of Repose for Products Liability Claims

December 02, 2015 — Michael L. DeBona – White and Williams LLP
In Dominguez v. Hayward Industries, Inc., Certified Gunite Company d/b/a Custom Pools, and John M. Pieklo, — So.3d —-, 2015 WL 5438782 (3d DCA Sept. 16, 2015), the District Court of Appeal of Florida, Third District, discussed whether products liability claims related to a pool filter, a component part of a pool system, were subject to Florida’s twelve-year products liability statute of repose, section 95.031, Florida Statutes. The court held that a pool filter does not constitute an improvement to real property and, thus, the plaintiffs’ claims were subject to the statute of repose. Background Facts Ryan and Jessica Dominguez had a pool installed at their house; the delivery and installation of the pool and its filter were completed on December 20, 1999. Over twelve years later – on November 17, 2012 – the pool filter exploded, causing Mr. Dominguez a severe head injury. Mr. Dominguez and his wife brought a products liability action against, among others, the pool filter manufacturer and distributor, Hayward Industries, Inc., and the installer of the pool and intermediate distributor of the pool filter, Certified Gunite Company. Read the court decision
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Reprinted courtesy of Michael L. DeBona, White and Williams LLP
Mr. DeBona may be contacted at debonam@whiteandwilliams.com

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Home Building on the Upswing in Bakersfield

May 10, 2013 — CDJ STAFF
Low inventories and low mortgage rates are leading developers to build new homes in Bakersfield, California. According to KGET, home permits are up forty-five percent over last April. In one development, a street of six homes all sold on the same day. Indications are also that people who lost their homes during the bust are entering homeownership again. Prices are also up. A year ago, the average home sale price was $145,000. Now it’s $250,000. Oh, and that development where they sold six homes in a day? The next phase of development goes on sale in May. Read the court decision
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North Carolina Appeals Court Threatens Long-Term Express Warranties

April 09, 2014 — Beverley BevenFlorez-CDJ STAFF
Jonathan Massell of the firm Nexsen Pruet explained how a “recent holding by the North Carolina Court of Appeals is threatening to render many long-term express warranties ineffective,” in the online publication Lexology. In Christie v. Hartley Construction, Inc., “the court held that the six-year North Carolina statute of repose for improvements to real property trumps the bargained-for duration terms of an express warranty.” In the Christie case, this meant that even though the homeowners had a twenty year warranty, because of the statute of repose, the warranty effectively expired after six years. Massell stated to “be mindful of jurisdiction.” If the express warranty is in a state other than North Carolina, it’s possible that the claim could be filed in that state instead of North Carolina. For instance, according to Massell, South Carolina’s “statue of repose does not expire until eight years after the date of substantial completion for an improvement to real property.” Furthermore, “long-term warranties are not trumped by the South Carolina statute of repose.” Read the court decision
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English v. RKK. . . The Rest of the Story

December 04, 2018 — Christopher G. Hill - Construction Law Musings
Back in February, I discussed a case relating to indemnity and ambiguity. The opinion in that case, W.C. English, Inc. v. Rummel, Klepper & Kahl, LLP et al., allowed a breach of contract and indemnity claim to move forward despite the fact that conflicting term sheets between the plaintiff and defendant could have been read to violate Virginia law by requiring indemnity for English’s own negligence. In other words, the ambiguity worked in English’s favor (though that is not something to count on). The Court did not however address whether there was any negligence on English’s part and if there was, what was the contractual effect. I’ll bet you were wondering what happened later in that case. Well, here’s the answer. In a subsequent opinion, the Court looked at the same ambiguous and conflicting term sheets between and among those defendants that were required to provide quality assurance services for the construction of a bridge in western Virginia. For the full procedural and factual analysis, be sure to read the full memorandum opinion linked above. Read the court decision
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Reprinted courtesy of Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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The U.S. Tenth Circuit Court of Appeals Rules on Greystone

November 18, 2011 — Derek J. Lindenschmidt, Higgins, Hopkins, McLain & Roswell, LLC

On November 1, 2011, the Tenth Circuit Court of Appeals ruled on the certified question of whether property damage caused by a subcontractor’s faulty workmanship is an “occurrence” for purposes of a commercial general liability (CGL) insurance policy. In Greystone Const., Inc. v. National Fire & Marine Ins. Co., No. 09-1412 (10th Cir. Nov. 1, 2011), the Tenth Circuit determined that because damage to property caused by poor workmanship is generally neither expected nor intended, it may qualify under Colorado law as an occurrence and liability coverage should apply. Id. at 2.

The short history of the Greystone case is as follows. In Greystone Const., Inc. v. National Fire & Marine Ins. Co., 649 F. Supp. 2d 1213 (D. Colo. 2009), two contractors and one of their insurers brought an action against a second insurer after the second insurer refused to fund the contractors’ defense in construction defect actions brought by separate homeowners. Id. at 1215. The U.S. District Court for the District of Colorado, relying on General Sec. Indem. Co. of Arizona v. Mountain States Mut. Cas. Co., 205 P.3d 529 (Colo. App. 2009), granted summary judgment in favor of the second insurer on the basis that the homeowners’ complaints did not allege accidents that would trigger covered occurrences under the second insurer’s policies. Id. at 1220. Notably, the Greystone, General Security, and other similar decisions prompted the Colorado General Assembly to enact C.R.S. § 13-20-808, which was designed to provide guidance for courts interpreting perceived coverage conflicts between insurance policy provisions and exclusions. The statute requires courts to construe insurance policies to favor coverage if reasonably and objectively possible. C.R.S. § 13-20-808(5).

The Tenth Circuit began its analysis by determining whether C.R.S. § 13-20-808, which defines the term “accident” for purposes of Colorado insurance law, would have a retroactive effect, and thereby settle the question before the court. The Tenth Circuit gave consideration to several Colorado district court orders issued since the enactment of C.R.S. § 13-20-808 which have suggested that the statute does not apply retroactively, including Martinez v. Mike Wells Constr., No. 09cv227 (Colo. Dist. Ct., Mar. 1, 2011), and Colo. Pool. Sys., Inv. V. Scottsdale Ins. Co., No. 09cv836 (Colo. Dist. Ct., Oct. 4, 2010). The Tenth Circuit also attempted to ascertain the General Assembly’s intent behind the term “all insurance policies currently in existence...” Greystone, No. 09-1412, at 12. The Tenth Circuit determined that the General Assembly would have more clearly stated its intentions for the term if it was supposed to apply retroactively to expired policies, rather than those still running. Id. at 12-13. Ultimately, the Tenth Circuit decided that C.R.S. § 13-20-808 did not apply retroactively, but noted that “the retrospective application of the statute is not necessarily unconstitutional.” Id. at 9, 11-14. As such, the Tenth Circuit advised that it was required to decide the question presented in the appeal under the principles of Colorado insurance law. Id. at 15.

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Reprinted courtesy of Higgins, Hopkins, McLain & Roswell, LLC. Mr. Lindenschmidt can be contacted at lindenschmidt@hhmrlaw.com

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Highest Building Levels in Six Years in Southeast Michigan

December 11, 2013 — CDJ STAFF
Macomb Township in southeast Michigan has had $122 million in new development in 2013, all of which helped the region reach its highest building levels since 2007. The wider area saw 398 permits issued for single-family homes in the last twelve months, fifty-two more than in the twelve months prior. “The improvement is economically driven,” said Michael Stoskofa, the CEO of the Home Builders Association of Southeast Michigan. As employment improves in the area, “more people are willing and able to purchase a home,” he said. Home inventory in the area is also at a record low. As a result, projects that were put on hold in 2008 are active again. Read the court decision
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Construction Defects as Occurrences, Better Decided in Law than in Courts

December 09, 2011 — CDJ STAFF

Construction defect claims are now occurrences for insurance purposes in four states, Arkansas, Colorado, Hawaii, and South Carolina, yet there are still frustrations for commercial general liability policyholders. Business Insurance describes court decisions on whether construction defect claims are covered as “incongruous,” and this drives up coverage and litigation costs. Construction firms often find they are defending themselves on two fronts, both the construction defect claim and also whether their insurance covers it.

Frank Armstrong, the Senior Vice President and National Director of Construction Claims for Willis North America says that the problem starts with the word “occurrence,” as various state courts have different interpretations of the word. “Certain pieces of it don’t fit well, at lest according to some courts in the country, with coverage for construction defect risks.”

Another insurance executive, Julian Ehlich, the Senior Vice President of Claims for Aon Risk Solutions’ construction services group notes that “jurisdictions differ, so policyholders don’t know what they’re going to get.”

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Poor Record Keeping = Going to the Poor House (or, why project documentation matters)

June 11, 2014 — Melissa Dewey Brumback – Construction Law in North Carolina
You are an engineer or architect. You understand the importance of thorough designs. What about thorough documentation of the daily happenings on the construction project? That is equally important. As regular readers of this blog know, I have often spoken of the importance of proper record keeping on construction projects. In fact, lack of good project records is one of the 7 mistakes in my white paper 7 Critical Mistakes that Engineers & Architects make During Project Negotiation and Execution that Sabotage their Projects & Invite Litigation. Now, a construction management expert, who, like me, sees the ugly when construction projects turn bad, has weighed in with perhaps the authoritative reasoning and rationale (pdf) for good project records. Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Construction Law in North Carolina
Ms. Brumback may be contacted at mbrumback@rl-law.com

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