N.J. Appellate Court Applies Continuous Trigger Theory in Property Damage Case and Determines “Last Pull” for Coverage
November 15, 2017 —
K. Alexandra Byrd – Saxe Doernberger & Vita, P.C.The New Jersey Superior Court, Appellate Division, published an important decision addressing several fundamental issues regarding how a commercial general liability (CGL) policy applies to long-term property damage. The court held that: (1) a continuous trigger theory of coverage may be applied to third-party liability claims involving progressive property damage caused by an insured’s allegedly defective work; (2) the “last pull” (i.e., the cutoff point) of the continuous trigger is when the “essential nature and scope” of the property damage first becomes known or could reasonably be known; and (3) the “last pull” is not when the property damage is “attributed” to the insured’s faulty work.
The underlying action in Air Master & Cooling Inc. v. Selective Ins. Co., et al. 1 concerned property damage arising out of the construction of a seven-story, 101-unit condominium building in Montclair, New Jersey. The project’s construction manager hired Air Master & Cooling, Inc. (Air Master) to perform HVAC work on the project, including installing individual HVAC equipment in each resident’s unit from 2005 to 2008. In early 2008, unit owners began complaining about water infiltration and damage to their windows, ceilings, and other portions of their units. The general contractor and developer began assessing the damage and making repairs. Eventually, in April 2010, an expert consultant performed a moisture survey of the roof and discovered 111 areas that were damaged by water infiltration. The expert report indicated that “it [was] impossible to determine when [the] moisture infiltration occurred.”
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K. Alexandra Byrd, Saxe Doernberger & Vita, P.C.Ms. Byrd may be contacted at
kab@sdvlaw.com
Disruption: When Did It Start and Where Will It End?
June 25, 2019 —
Brian Gallagher - Construction ExecutiveIf change is the only constant—as was famously observed by a Greek philosopher circa 500 B.C.—then why single out some changes as “disruption”?
Disruption is about more than just technology; it’s about more, even, than the rapid rollout and development of technology in the past couple of decades. The word disruption refers to processes or products that are fundamentally different from what is currently in use and that render unforeseen, large-scale changes. Early discussions of disruption (the term was coined by Harvard Business School professor Clayton M. Christensen in a 1995 Harvard Business Review article) compared incremental change in existing systems, which are usually supported by established corporations, to innovations that start out as something completely fresh, limited in their appeal and flawed in initial iterations.
The construction industry was—and still is—late to adopt most technologies and late in experiencing overall disruption. It also lags behind other industries when it comes to efficiency and productivity. McKinsey reported that construction is one of the “least digitized industries in the world,” despite employing approximately 7% of the world’s working-age population and representing one of the world economy’s largest sectors. Disruption is likely to be fast approaching now, even for the construction industry. But its delay may confer the benefit of allowing construction companies to learn from other industries’ mistakes.
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Brian Gallagher, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Resolving Subcontractor Disputes with Pass-Through Claims and Liquidation Agreements
May 13, 2024 —
Stephanie Cooksey - Peckar & Abramson, P.C.Imagine a project where you are unable to reach final completion due to an unresolved subcontractor claim. If the project owner is responsible for the claim, and both the owner and subcontractor are entrenched in their positions, how would you resolve this dispute?
The default option is a three-party lawsuit where the subcontractor sues you in your capacity as general contractor. By denying the claim, you bring the owner into the lawsuit as a liable party to the subcontractor’s claim. This option is efficient from the judicial system’s perspective, as it means one lawsuit instead of two. The subcontractor cannot sue the owner since the two have no contract between them. Thus, the subcontractor’s recourse is limited to suing the contractor. In the three-party lawsuit, you argue that if the subcontractor prevails in its claim against you, the owner is liable. If the owner successfully defends against the claim, the subcontractor takes nothing.
Putting judicial economy aside, it may not make economic sense for contractors to have a lawyer involved in litigating a case where they have no skin in the game. Fortunately, there is a better option than the three-party lawsuit on multi-party construction projects.
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Stephanie Cooksey, Peckar & Abramson, P.C.Ms. Cooksey may be contacted at
scooksey@pecklaw.com
California Committee Hosts a Hearing on Deadly Berkeley Balcony Collapse
April 28, 2016 —
Beverley BevenFlorez-CDJ STAFFAccording to Mercury News, state Senators Jerry Hill and Loni Hancock scheduled the hearing in Sacramento with state and local agencies to discuss their response to the Berkeley, California balcony collapse incident that killed three people and severely injured seven others.
The agencies also testified regarding “best practices and disclosure requirements for licenses.” Hill and Hancock are the sponsors of Senate Bill 465 that “would require companies to report certain settlements to the Contractors State License Board, and in some cases to the public.”
Investigators of the Berkeley balcony incident alleged “that crews applied waterproofing to wet wood during construction. Water was trapped inside, which led to severe dry rot and the catastrophic collapse,” reported Mercury News.
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The Unthinkable Has Happened. How Should Contractors Respond?
May 11, 2020 —
Bruce Orr - AEC BusinessAny construction veteran expects the economy to contract and expand. However, the global pandemic presents contractors with a challenge unlike any in recent memory.
How should they respond in an environment of such uncertainty? For some perspective, I chatted with Dr. John Killingsworth, a construction management professor at Colorado State University who has conducted extensive research on how contractors can weather economic downturns.
BRUCE ORR: John, let’s say you’re in IT or are a c-suite executive at a contracting firm. This event has occurred. What are some of the questions you should be asking right now?
JOHN KILLINGSWORTH: For starters, we have to acknowledge that the uncertainties are so tremendous that many contractors have no choice but to be reactive in the short term. They’re literally not sure whether particular job sites will be open or closed tomorrow or whether they’ll go to work next week. They’re also looking at predictions—from highly qualified statisticians, public health officials and others—that are just all over the map due to the limited nature of the data we have at hand.
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Bruce Orr, AEC BusinessMr. Orr may be contacted at
bruce@pronovos.com
Muir named Brown and Caldwell Eastern leader
January 09, 2023 —
Brown and CaldwellHARTFORD, Conn., Jan. 04, 2023 — Leading environmental engineering and construction services firm Brown and Caldwell today announces Senior Vice President Eric Muir has been promoted to leader of its growing Eastern business.
The largest of the company's regions with over 40 offices east of the Mississippi River, the Eastern business consists of clients in the water, wastewater, stormwater, environmental services, and water resources sectors.
Muir has a 20-year background in delivering highly technical civil and environmental engineering projects. He has held leadership and technical roles on some of the most complex projects encompassing water and wastewater treatment, distribution and collection, pumping, and conveyance systems. His experience includes master planning, detailed design, permitting, and construction services.
Since joining Brown and Caldwell in 2018, Muir's business development expertise and client-centric focus have played a key role in setting the company's regional strategic direction to achieve strong financial results.
"Eric is a highly strategic and inclusive leader, passionate about mentoring employees to reach their full potential," said Brown and Caldwell Chief Operating Officer Euan Finlay. "His deep knowledge of clients' environmental obstacles will enhance the positive impacts our teams have on the communities we serve."
Based in Connecticut, Muir will manage overall operations and lead the implementation of the firm's strategy in the East. He will continue the region's growth and lead efforts to make Brown and Caldwell the company of choice for clients, employees, and partners. He will work alongside regional leadership to align the firm's talent pool with clients to provide innovative, cost-effective solutions to challenges related to water quality, biosolids management, and aging infrastructure.
About Brown and Caldwell
Headquartered in Walnut Creek, California, Brown and Caldwell is a full-service environmental engineering and construction services firm with 52 offices and 1,800 professionals across North America and the Pacific. For 75 years, our creative solutions have helped municipalities, private industry, and government agencies successfully overcome their most challenging water and environmental obstacles. As an employee-owned company, Brown and Caldwell is passionate about exceeding our clients' expectations and making a difference for our employees, our communities, and our environment. For more information, visit www.brownandcaldwell.com
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Flint Water Crisis and America’s Clean Water Access Failings
June 28, 2021 —
Pam Radtke Russell - Engineering News-RecordGrowing up on a Navajo reservation in Arizona, Jay Yazzie, now a senior environmental engineer at Brown and Caldwell, did not have running water in his home. To get its water supply, the family would take a 55-gallon drum to a livestock well or to a distribution point to obtain potable water for everyday use. He was 10 when his family was finally hooked up to a reliable supply.
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Pam Radtke Russell, Engineering News-Record
Ms. Russell may be contacted at Russellp@bnpmedia.com
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New Defendant Added to Morrison Bridge Decking Lawsuit
March 26, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Morrison Bridge in Multnomah County, Oregon, has added a new company to their lawsuit regarding problems with the slip-resistant FRP decking, according to The Oregonian. The county has already named the installer, the supplier, and the manufacturer. Now, they have added Hardesty & Hanover, LLP, the company “that contracted with the decking manufacturer to provide engineering and design for the project.”
The Oregonian reported that “the county has identified a construction design professional who can testify that Hardesty & Hanover made errors that contributed to the Morrison Bridge's damage,” according to the amended complaint.
First, Conway construction (the deck installer) filed suit against the decking manufacturer and supplier. Then, the “county inserted itself into the suit last fall,” stated The Oregonian, and “is seeking more than $2 million to repair or replace the decking, plus damages.” A trial is scheduled for February 2015.
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