Defects, Delays and Change Orders
November 01, 2021 —
Jacob A. Epstein - Construction ExecutiveAs every construction professional is aware, unexpected events and problems are guaranteed on every large project. Defects, delays and change orders are sure to arise, and depending on how they are dealt with and addressed at the time, they can either have minimal effects on the overall project or they can have drastic, long-term and often costly effects, including but not limited to thousands of dollars in legal fees, increases in insurance premiums and/or years of litigation down the road.
There are many reasons why so many large construction projects end up in some type of litigation. Delay claims, construction contract disputes and construction defect lawsuits are so prevalent in certain parts of the country that certain judges designate specific time blocks in their courtrooms for construction cases only—just to deal with the large portions of their case dockets dealing with construction issues at the same time.
Reprinted courtesy of
Jacob A. Epstein, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Epstein may be contacted at
jepstein@haber.law
Incorrect Information Provided on Insurance Application Defeats Claim for Coverage
July 31, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Eleventh Circuit affirmed the district court's finding of no duty to defend or indemnify because of an answer on the insured's application for insurance. Snell v. United Specialty Ins. Co., 2024 U.S. App. 12733 (11th Cir. May 28, 2024).
Snell was hired by a family, the Westons, to turn an above ground trampoline into a ground level trampoline. This involved various tasks like tree pruning and removal, installation of shrubs, trees, and sod, and setting up a sprinkler irrigation system. The trampoline aspect of the project involved site work to make a place for the trampoline and assembly and installation of the trampoline. The site work included excavation of a pit, installation of a drain and drainage sand, excavation of a trench to install a drainage pipe, installation of the drainage pipe and of a drain pump, construction of concrete block retainer walls and installation of a wood cap on the retainer walls. Then, Snell unboxed the trampoline, assembled it, and lowered it into the pit.
A few years later, a visitor to the Weston home sued the Westons for injuries to his daughter suffered on the trampoline. The complaint alleged the daughter was injured when she "fell off of the trampoline and struck her face on the wooden board" surrounding the tramline. The complaint was later amended to add Snell as a defendant.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Court Rejects Insurer's Argument That Two Triggers Required
May 12, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe court rejected the insurer's argument that two triggers - one for exposure to asbestos and one for resulting injury - were required under CGL policies. Compass Ins. Co. v. University Mechanical and Engineering Contractors, Inc., 2016 U.S. Dist. LEXIS (N.D. Cal. March 25, 2016).
University Mechanical and Engineering Contractors, Inc. (UMEC) was a California corporation in the business of installing plumbing, piping and HVAC systems. UMEC was defending a number of asbestos cases in California state courts arising from its subcontracting work.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
CA Senate Report States Caltrans ‘Gagged and Banished’ its Critics
August 06, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to the Sacramento Bee, the California Senate’s latest report said that “at least nine top experts for the new $6.5 billion San Francisco-Oakland Bay Bridge” were “’gagged and banished’” after complaining “about substandard work by the Shanghai, China, firm that built much of the span.”
According to the report, reported by the Sacramento Bee, Tony Anziano, Caltrans’ chief executive of the project, “removed or demoted quality-assurance and fabrication engineers who tried to force the contractor to fix cracked roadway welds.”
The report did not evaluate the bridge’s quality or safety, however, it “called for greater openness in large construction projects, a review of the weld problems by independent experts, and an investigation of allegations that engineering decisions were made by non-engineers.”
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ASCE Statement on Hurricane Milton and Environmental Threats
October 15, 2024 —
Feniosky Peña-Mora, P.E., President - American Society of Civil EngineersWASHINGTON, DC. – On the heels of the tragic damage caused by Hurricane Helene throughout the Southeast, Floridians were struck by another major hurricane, Milton, less than two weeks later. Our hearts go out to those impacted again by this storm through property damage, lack of water access, power outages, or worse, loss of life, all before getting a chance to recover from Helene. Civil engineers are dedicated to protecting the public with projects that can lessen the impacts of these storms, and we are eager to help communities rebuild as quickly as possible following events like Milton and Helene.
Although we do not yet know the full scope of destruction caused by Hurricane Milton, severe weather, including compound flooding events, are increasing regularly and pose a great risk to our safety and economic vitality. While so many eyes are fixated on hurricanes impacting the Southeast, wildfires are burning across several western states, including the Elk Fire in Wyoming, the largest wildfire the Bighorn National Forest has experienced in more than a century, now spanning over 75,000 acres as the region is experiencing unusually hot and dry weather and strong winds that are helping this fire to spread rapidly. The climate impacts we are accustomed to – wildfires in the West and hurricanes in the Southeast – are getting stronger, and now environmental challenges are occurring in areas we wouldn't suspect, such as Hurricane Helene striking mountain communities in Western North Carolina that have been labeled as "climate safe-havens," and Texas dealing with annual winter storms.
ASCE is a leader in codes and standards development and has created an
easy-to-understand toolkit for legislators and the public to learn the benefits of these up-to-date standards and determine when and how to adopt them, making our built environment more resilient to natural catastrophes. ASCE's flagship standard,
ASCE/SEI 7-22, recently underwent the most significant update to its
flooding chapter to ensure structures following this standard are prepared for 500-year flood events.
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The Future of Construction Defects in Utah Unclear
December 11, 2013 —
CDJ STAFFIn recent years, more courts have started to view construction defects as accidents, covered under insurance policies. In a post on the Parr Brown Gee & Loveless web site, Jeffrey D. Stevens writes that “the number of courts siding with insurance companies to deny contractors and subcontractors insurance coverage in construction defect lawsuits has been shrinking.” Recently, the Supreme Court of West Virginia “switched sides on this issue completely.”
The Utah Supreme Court has not made a ruling on this, but the Federal District Court for the District of Utah and the Tenth Circuit have looked at Utah law and concluded that “under Utah law damage caused by construction defects is not accidental.” But in another case, “the district court determined that property damage allegedly caused by defective or defectively installed windows was caused by an accident.”
Mr. Stevens thinks that “it is likely” that the Utah Supreme Court “will follow the increasing number of courts that have held that damage caused by construction defects is an accident for insurance purposes.
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Iowa Tornado Flattens Homes, Businesses and Wind Turbines
June 17, 2024 —
Annemarie Mannion - Engineering News-RecordBusiness owners and residents are picking up the pieces after a tornado tore through south-central Iowa May 21, devastating the town of Greenfield, about 60 miles southwest of Des Moines, by destroying homes and businesses, toppling MidAmerican Energy Co. wind turbines and damaging the Adair County Memorial Hospital.
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Annemarie Mannion, Engineering News-Record
Ms. Mannion may be contacted at manniona@enr.com
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Massachusetts High Court: Attorney's Fee Award Under Consumer Protection Act Not Covered by General Liability Insurance Policy
September 19, 2022 —
Jeffrey J. Vita & David G. Jordan - Saxe Doernberger & Vita, P.C.In the case of
Vermont Mutual Insurance Co. v. Poirier, 189 N.E.3d 306 (Mass. 2022), Massachusetts’ Supreme Judicial Court concluded that an award of attorney's fees pursuant to
Chapter 93A (Massachusetts’ Consumer Protection Act) is not covered under an insured’s general liability insurance policy. Applying Massachusetts law, the Court found that a statutory award of attorney’s fees stemming from a bodily injury claim is not reasonably considered “damages because of bodily injury” or “costs taxed against the insured” so as to trigger general liability coverage.
Facts of the Case
A Servpro company (owned by Mr. and Mrs. Poirier) was hired to clean up a basement after a sewage spill. The owners of the home were injured by fumes from chemicals used in the cleanup and accordingly brought suit against the Poiriers and their Servpro business. In the lawsuit, the homeowners alleged negligence, breach of contract, and also a Chapter 93A claim, asserting breach of warranty of merchantability and warranty of fitness for a particular purpose. Prior to trial, the plaintiffs waived the negligence and breach of contract claims and sought a bench trial on the Chapter 93A claims alone.
Reprinted courtesy of
Jeffrey J. Vita, Saxe Doernberger & Vita, P.C. and
David G. Jordan, Saxe Doernberger & Vita, P.C.
Mr. Vita may be contacted at JVita@sdvlaw.com
Mr. Jordan may be contacted at DJordan@sdvlaw.com
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